Master Service Agreement (MSA) Development

1. Master Service Agreement (MSA) Development

2. Index • Background • Key definitions • Objectives • Scope • Methodology • Timelines • Benefits of developing MSAs • FAQ

3. Background • As part of the implementation of a new entrepreneurial management service model at DAS, four service Enterprises have been created. • Each service enterprise is governed by a Customer Utility Board, which acts as a governing board for those services provided by each Service Enterprise that has been designated as utility services. • One of the key responsibilities assigned to CUBs is the approval of SLA (Service Level Agreement) documents. These are referred to in this presentation as MSA (Master Service Agreement) documents (see definitions), while the term SLA (see definitions) is used to designate a section of the MSA documents. • This document presents an approach to the development of MSA documents within DAS.

4. Key definitions • Service: A bundle of activities and resources (IT, people and processes) combined to provide a business outcome or output/ deliverable received by the customer. • MSA (Master Service Agreement): A document, specific per program, which includes a service catalog, agreed SLA’s (performance targets) and responsibilities of the service provider and customers, all of which helps improve service delivery, manage expectations, clarify responsibilities and facilitate communication between the parties. • Service Catalog: A description of the services and service offerings provided by a program. This can be a multi-level set of information with linked and discrete hierarchies of services, child services and specific ‘offerings’ (specific tasks) available for these services, and will typically include service terms, standards, packages, exclusions, etc. • SLA (Service Level Agreement): A written, measureable target for service or process performance agreed between service provider and customers. • Service Agreements: Individual documents signed between a service provider and each customer reflecting customer-specific information (choice of services from service catalog, contact information for escalation procedures, etc). • Service rate: A price that incorporates the costs of delivering the service at the service levels agreed to by both parties.

5. Objectives • The objectives for the project are: • Develop & provide support for the implementation of Master Service Agreements with common structure and content across the 4 Service Enterprises of DAS. • Develop/ obtain CUB agreement on MSA common structure. • Coordinate / facilitate program specific MSA document development. • Provide implementation support.

6. Scope Common activities for areas that have existing documents • The scope for the project is: • DAS EAM • Develop 6 new MSA documents ( 6 programs) • DAS EGS • Revise and update existing P&D MSA / SLA document • Develop 4 new MSA documents for remaining programs • DAS EHRS: • Develop 1 MSA • DAS ETS • Revise, update and combine existing documents: • 3 MSA/ SLA documents (ETS, TSC, E-Gov) • ETS Service catalog document • Develop / update service catalog • Develop additional SLA’s • Adapt / convert document to DAS common MSA structure, developing additional MSA content as identified in common MSA index / structure approved by CUBs for all DAS programs

7. Methodology IMPLEMENT FOCUS (common activities for all MSA’s in DAS) DEVELOP (specific activities per program/ MSA) STEP 1: Establish MSA Development Workgroup STEP 2: Develop Service Catalog STEP 3: Develop perf. metrics and targets STEP 4 Develop rest of MSA document Project management and communication / reporting to CUBs

8. Methodology IMPLEMENT FOCUS (common activities for all MSA’s in DAS) DEVELOP (specific activities per program/ MSA) STEP 1: Establish MSA Development Workgroup STEP 2: Develop Service Catalog STEP 3: Develop perf. metrics and targets STEP 4 Develop rest of MSA document Project management and communication / reporting to CUBs DAS support team Analysis and documentation of progress FOCUS Workgroup sessions SLA DEVELOPMENT TEAM Workgroup sessions SLA development team presentation to CUB after steps 2, 3, 4 FOCUS team presentation to CUB

9. Methodology: FOCUS • Set up FOCUS task group (common to all 4 Service Enterprises). • KEY TASK: Define / agree on structure of information. • Key decisions: • Define elements and structure of information in MSA document and in service catalog section of MSA. • Agree on level of detail. • Define common templates for MSA and service catalog. • Define / agree on MSA common content (across all programs/ Service Enterprises) (e.g.: basic reporting, SLA amendment process, etc.). • Define common MSA approval and governance processes.

10. Methodology: FOCUSKey task: Define MSA structure Service rates Service specific Service level Agreements Service management processes (reporting, MSA amendment, remedies, etc) Service catalog Glossary/ Definitions Process specific Service level Agreements Operational procedures (forms, templates) Customer commitments

11. Methodology: FOCUSKey task: Define MSA structure • Proposed draft high level structure for MSA documents: • Service catalog (service terms, standards, packages, exclusions, etc.) • Service terms, packages, standards, exclusions, schedules, etc. • DAS & Customer (operational) commitments • Service Level Agreements: metrics and targets for service performance and delivery agreed with customers • Financial processes information (billing, payments, etc.) • Service management processes: • Reporting • Periodic review • SLA amendment procedure • Remedies (e.g, incompliance with agreed service levels, dispute resolution, etc.) • Definitions • Contact data • Appendixes: • Hyperlinks to forms & templates to be used (if available) (e.g., to request a new service, etc.). • Hyperlinks to written operational procedures (if available )(e.g., ordering, change requests, incident management). • Program-specific service rates.

12. Methodology: FOCUSKey task: Define Service Catalog structure • Each service described in the catalog can have a number of elements/ service attributes. • A key decision is agreeing on what elements each service description must contain and their level of detail. • Different Service Enterprises in DAS may have different service elements, as elements relevant in an IT service catalog (e.g. availability or outage response commitments), may not be pertinent in service catalog for EHRS or Surplus).

13. Methodology: FOCUSKey task: Define Service Catalog structure EXAMPLE : INFORMATION IN CURRENT SDC SERVICE CATALOG • What is the service? • What’s included? • What’s not included? • How is this service requested? • What forms are used to request this service? • What to ask for? • When can you expect to have your service fulfilled? • What are the availability and outage response commitments for this service? • Is there anything else you need to know about this service?

14. Methodology: DEVELOPSet up MSA Development workteam • Identify MSA development workgroup members. • Identify workgroup members from DAS and customers. • A team of 6-8 members is recommended for each MSA, with equal numbers of program delivery unit staff and customers represented. • Aim is having a balanced mix of customers representing different agency sizes and services contracted in workgroup. Participation from CUB will be preferred, but participated from non CUB represented customers will be tapped as needed. At least one CUB member will be a member of the work \group. • Support staff from DAS/DBS will also participate in order to assist and to facilitate the MSA development process / meetings. • Hold preliminary workshop/ meeting with following objectives: • Discuss / align definitions. • Review project timelines. • Review available methods to capture program specific customer input. • Review tasks and criteria to prioritize services- processes.

15. Methodology: DEVELOPDevelop service catalog • Workshop to identify structure/ list of current services. • Identify high level service structure/ framework (with service groupings / functions). • Identify service components: individual service offerings within each function /grouping. • Identify linked and/or discrete service hierarchies of services, child services and specific ‘offerings’ (specific tasks) available for these services. • Describe current services / service offerings. • Describe service items, packages, bundled and unbundled offerings. • Describe service terms, standards, and exclusions. • Describe service hours/ schedules, contact channels. • Additional content: • Forms? Templates? Operational procedures? • See SDC service catalog EXAMPLE : INFORMATION FROM SDC SERVICE CATALOG • What is the service? • What’s included? • What’s not included? • How is this service requested? • What forms are used to request this service? • What to ask for? • When can you expect to have your service fulfilled? • What are the availability and outage response commitments for this service? • Is there anything else you need to know about this service?

16. Methodology: DEVELOPDevelop service catalog • Ideally, the output of the initial workshop between provide and customers would be: • A simple high-level definition of the service structure or framework. • Identification of service components – each service would be defined in terms of its position in the overall service structure/ framework – i.e. is it part of a larger service, or does it also have some ‘child’ services or ‘offerings’ which are simply low level service features….? EXAMPLE OF IT SERVICE STRUCTURE/ FRAMEWORK • It is important to keep service catalog workshops / meetings to the point on service definitions, not SLAs or service issues (although these sometimes creep in).

17. METHODOLOGYDevelop SLA’s • Service Level Agreements: • Written measureable targets for service performance agreed between provider and customers • Identify key quality attributes for each service (key customer input). • Define SLA’s (service specific / Process specific). • Develop good SLA documentation.

18. METHODOLOGY Develop SLA’s SLA DEVELOPMENT PROCESS: SIMULATED EXAMPLE FOR EHRS EXAMPLE OF KEY QUALITY ATTRIBUTES/ DIMENSIONS IDENTIFIED FOR A SERVICE

19. Timelines • How Long Does It Take to Establish an MSA? • It depends. Many factors can influence the duration of the effort, such as: • The number and complexity of the services covered: The more services covered by a MSA, and the more complex these services, the longer it takes the two parties to discuss, negotiate and document the conditions of service delivery. • The availability / commitment of the working team members: Joint service provider & customer work and face-to-face negotiations are crucial in establishing a MSA. Insufficient commitment or availability of key SLA development team members can add significantly to the elapsed time. • The choice of performance metrics and the availability of past performance data. In the absence of past performance information, the team will need to baseline current performance levels before negotiating the final service level agreements. • The approval/ governance model for the agreement. A complex multi-party approval process, either for the final document or for any of its key elements, can certainly add to the elapsed development time. • The availability of a base model & template: The first MSA in an organization usually takes the longest. Once it is completed and in operation, however, both the document and the process can serve as a model for subsequent MSA’s. If the first MSA is successful, later ones usually proceed much more rapidly. • Prior SLA experience: The most expeditious MSA efforts are ones led or facilitated by SLA developers who have had prior successful experience establishing MSA / SLA documents.

20. Timelines Given these factors, how long should it take to establish MSA/ SLAs in DAS? • Too short • A misconception about MSA’s is that they can be created quickly. Developing a MSA in a week or even a month is both difficult and inadvisable. It is difficult because of the workload involved in such tasks as negotiating service standards, establishing tracking mechanisms, preparing supporting procedures, gaining approvals and generating buy-in. And it is inadvisable because the process is designed to help the two parties build the foundation for a strong, successful, long-term relationship. • Too long • "Too long" refers not to a specific time period, but to an effort that has stalled and is making no progress. A major contributor to a stalled effort is that one or both parties fail to bring a serious commitment to the effort. When management allocation of staff to establish the MSA is insufficient, or the effort is given a low priority, making progress can be a cumbersome task. • Just right • Establishing a MSA is typically a many-month process of information-gathering, analyzing, documenting, educating, negotiating, and consensus-building. • Given the complexity of services provided by DAS, a tentative period of 3-6 months can be a good rule of thumb. When circumstances are optimal, 3 months is realistic, and sometimes even less. At the other extreme, if the situation is a complex one, 6 months may not be enough. However, if significant progress has not been made within 6 months, it's time to stop the effort and examine why.

21. Timelines Q4 2012 Q1 2013 Q2 2013 Q3 2013 Tentative proposed project plan for the development of EHRS MSA document OCT JAN APRIL JULY NOV DEC FEB MAR MAY JUNE AUG SEPT FOCUS (COMMON WORK FOR ALL DAS MSA’s) DEVELOP EHRS MSA IMPLEMENT SET UP FOCUS TEAM SET UP WORK TEAM COMMU- NICATE MSA DEVELOP SERVICE CATALOG DEFINE MSA INDEX/ STRUCTURE DEVELOP SLA’ s (PERF. METRICS AND TARGETS) BEGIN MEASURING & REPORTING DEFINE REST OF COMMON ELEMENTS DEFINE REST OF MSA APPROVE MSA

22. Benefits of MSA’s • MSA’s help to improve utility service delivery by • Providing an objective basis for assessing service quality. • Facilitating the setting of performance thresholds/ targets. • Providing a context for service changes. • Providing a basis for continuous improvement. • MSA’s help to create a business orientation by • Creating awareness of cost/ performance tradeoffs. • Creating cost/ performance accountabilities. • Providing a link between services and business objectives. • Facilitating the identification and integration of new service offerings. • MSA’s help to improve communication & strenghten relationships by • Creating an improved understanding between provider and customer. • Facilitating increased sharing of important information. • Providing timely feedback about problems and needs between the parties. • Reducing the number and intensity of complaints. • MSA’s help to manage expectations & clarify responsibilities by • Clarifying the scope of services and boundaries of responsibilities. • Providing a context for reasonable expectations. • Creating a shared language. • Establishing priorities and service levels jointly between provider and customers. The process of reaching the agreement is as important as the agreement itself!

23. FAQ • MSA development needs to inform 2015-2017 rate development activities – therefore it needs to be finalized before kicking off the rate review process in July 2013. • Developing the service catalog is only a part of the MSA development. • The services identified in the service catalog need to be described with enough detail so as to enable the identification of performance metrics and targets. • The proposed scope for the service catalog within the MSA development process is limited to services already established at the time MSA development begins. • However, developing the service catalog section of the MSA document can offer an excellent opportunity for DAS & CUBs to discuss & challenge the existing offering of utility services and identify: • New potential utility service offerings for 2015-2017. • Additional utility service levels packages (e.g, gold packages) • Service offerings that could be discontinued for 2015-2017.

24. FAQ • The MSA development team (with DAS & CUB members) will define new services for 2013-2015 as part of the MSA development efforts • If a need for a new service for 2013-2015 is identified as part of the development of the MSA document, a separate, dedicated service design & development team would have to be formed. • This team would be led by representatives from the appropriate DAS Program or Service Enterprise and would have participation by CUB members (and possibly by other DAS customers). • This team would work independently from the MSA development work-stream in order to conduct the necessary service design and development activities (market research, detailed identification of customer expectations, defining growth projections, cost analysis, technical scoping, development of business case, development & testing of pilot/ prototype, preliminary rate analysis and agency impact modeling, definition of billing processes, development of POPs, etc). • The service development team would report its final recommendations/ output to the CUB in order to inform the 2015-2017 rate development process.