Managing in a Multi-Sourced Environment

1. Managing in a Multi-Sourced Environment Jo HeinNational Manager, IT Shared Services, Custom IT Division Australian Customs Service

2. CIO Summit19 August 2008 Managing in a Multi-Sourced Environment By Jo Hein, National Manager, ICT Shared Services Australian Customs Service

3. Introduction • The Vision • The Sourcing Strategy • The “CITMA” • Principles, protocols • Performance • Questions

4. Customs IT Customs IT = • purpose is one vision and one goal. • members’ priority – to serve our customers. • will be one coherent, seamless, supportive and transparent Team. • know Customs business. • adhere to Customs IT Multi-party Arrangements (CITMA). • first point of contact will be a Customs representative. • responsibility for all IT services will rest with Customs IT.

5. Customs Sourcing Strategy

6. CITMACustoms IT Multi-Party Arrangements

7. CITMA • Customs IT Multi-Party Arrangement (CITMA) applies to all service • providers (internal and external). It is a schedule in the ITMT contract. • The CITMA addresses: • 16 Management Principles; • Behaviour Protocols and Principles; • IT Service Management Framework (ITSM); • IT Governance (relationships and forums); • An Introduction to Customs IT (ITIntro); • Policies, Standards, Plans and documentation; • Performance Management (ITPerform); and • Joint innovation and technology planning (ITInnotec).

8. Customs ITManagement Principles

9. Customs IT Behaviour Protocols • be polite & respectful • open & transparent dealings • efficient communications • work collaboratively • clarify responsibilities • effective relationships • look for opportunities • flexibility • understand priorities • fix problems don’t ignore them

10. Business Areas Customs IT (by many) External IT Br Apps Br IM Br Providers (case by case) Service Service Service Business Capacit Service Infor Capacit Service Infor Capacit Service Infor Delivery Delivery Delivery y Level matio y Level matio y Level matio Processes Processes Processes Manage Manage n Manage Manage n Manage Manage n ment ment Securi ment ment Securi ment ment Securi Central Central Central t y ty ty Areas Process Process Process Service Service Mana Service Service Mana Service Service Mana Rele Relat Rele Relat Rele Relat Continu Reportin geme Continu Repor tin geme Continu Reportin geme es es es ase ionsh ase ionsh ase ionsh ity and g nt ity and g nt ity and g nt Configura Configura Configura Proc ip Proc ip Proc ip Availab Availab Availab Proble Proble Proble tion tion tion ility ess Proce Budg ility ess Proce Budg ility ess Proce Budg m m m Managem Managem Managem Service Manage eting Manage eting Manage eting ss ss ss ent ent ent Resol Resol Resol ment & ment & ment & Capacit Service Infor Delivery Change Change Change Relea Relea Relea ution ution ution Apps Acco Acco Acco y Level matio Processes se Managem se Managem se Managem Busine Busine Busine unting unting unti ng Manage Manage n ent ent ent Mana Mana Mana ss ss ss for IT for IT for IT ment ment Securi Incident Incident Incident geme geme geme Relatio R elatio Relatio Central servic servic servic ty Manage Manage Manage nt nt nt nship nship nship Developers es es es Process Service Service Mana ment ment ment Rele Relat Manag Manag Manag Continu Reportin geme es ement ement ement ase ionsh ity and g nt Problem Problem Problem Co nfigura Proc ip Availab Manage Manage Manage Proble tion Suppli Suppli Suppli ess Proce ility Budg ment ment ment m Managem er er er Service Manage eting ss ent Resol Manag Manag Manag Capacit Service Infor ment & Delivery Change Relea ement ement ement ution y Level matio Acco Processes Managem se Busine Manage Manage n unting Mana ent ss ment ment Securi Central ty Service Process Service Mana Rele Relat ITSM Governance forums, Continu Reportin geme es ase ionsh ity and g nt Co nfigura Proc ip Availab Proble tion ess Proce ility Budg m Managem policies and procedures Manage eting ss ent Resol ment & Change Relea ution Acco se Managem Busine unting Mana ent ss Applic ations Apps M&S Layer Service Capacit Service Infor Delivery y Level matio Processes Manage Manage n ment ment Securi Central ty Process Service Service Mana Rele Relat Continu Reportin geme es ase ionsh ity and g nt Secure Co nfigura Proc ip Availab Proble tion ess Proce ility Budg m Managem Manage eting ss ent Resol ment & Change Relea ution Acco Gateway Managem se Busine unting Mana ent ss Services Technical Main Processing D’top/LAN External Voice Comms Infrastructure Service Service Service Service Service Capacit Service Infor Capacit Service Infor Capacit Service Infor Capacit Service Infor Delivery Delivery Delivery Delivery Capacit Service Infor Delivery y Level matio y Level matio y Level matio y Level matio Processes Processes Processes Processes Layer y Level matio Processes Manage Manage n Manage Manage n Manage Manage n Manage Manage n Manage Manage n ment ment Securi ment ment Securi ment ment Securi ment ment Securi ment ment Securi Central Central Central Central ty ty ty ty Central ty Process Process Process Process Service Service Mana Service Service Mana Service Service Mana Service Service Mana Rele Relat Rele Relat Rele Relat Rele Relat Service Process Service Mana Rele Relat Continu Reportin geme Continu Reportin geme Continu Reportin geme Continu Reportin geme es es es es Continu Reportin geme ase ionsh ase ionsh ase ionsh ase ionsh es ity and g nt ity and g nt ity and g nt ity and g nt ase ionsh Co nfigura Co nfigura Co nfigura Co nfigura ity and g nt Proc ip Proc ip Proc ip Proc ip Co nfigura Availab Availab Availab Availab Proble Proble Proble Proble Proc ip tion tion tion tion Availab Proble tion ess Proce ess Proce ess Proce ess Proce ility Budg ility Budg ility Budg ility Budg m m m m Managem Managem Managem Managem ess Proce ility Budg m Managem Manage eting Manage eting Manage eting Manage eting ss ss ss ss ent ent ent ent Resol Resol Resol Resol Manage eting ss ent Resol ment & ment & ment & ment & Relea Change Relea Change Relea Change Relea Change ment & ution ution ution ution Change Relea Acco Acco Acco Acco ution Managem Managem Managem Managem se se se se Acco Busine Busine Busine Busine se Managem unting unting unting unting Busine Mana ent Mana ent Mana ent Mana ent unting ss ss ss ss Mana ent ss Customs Framework • Service Continuity • Principles • resolve issues as a priority • then sort out financial • & contractual responsibilities • participate, even if not at fault • proactively share information • work efficiently at interfaces • take instructions from other • providers, if requested • don’t pass blame or fault

11. Service Delivery Processes Capacity Management Service Level Management Information Security Management Service Continuity and Service Reporting Budgeting & Availability Management Accounting for IT Central Processes services Configuration Management Change Management Release Process Relationship Process Release Management Business Relationship Problem Resolution Management Incident Management Supplier Management Problem Management IT Service Management Processes

12. Executive Meetings Customs IT Strategy Committee Strategic Level Joint Strategy Committee Joint Performance Forum Managerial Level Business Owners Forum Problem & Incident Mgmt Forum Technology Committee CEO Forum Executive Acct Forum CEO Forum Executive Acct Forum IT Project Managers Forum Architecture Committee Change Control Board CEO Forum Executive Acct Forum Operational Level Internal Bundle ITSM Forums CEO Forum Executive Acct Forum Internal Bundle ITSM Forums Internal Bundle ITSM Forums Internal Bundle ITSM Forums CEO Forum Executive Acct Forum Executive Acct Forum FOUNDATION: Cutstoms 16 IT Mgmt Principles Introduction to Customs IT CITMA Cutstoms IT Operational Policies, Standards & Procedures Account Mgmt Meetings Overall Governance Structure and Forum Inter-relationships Account Mgmt Meetings Account Mgmt Meetings Account Mgmt Meetings Account Mgmt Meetings Regional Forums Contract Mgmt Meetings Regional Forums Contract Mgmt Meetings Regional Forums Contract Mgmt Meetings Regional Forums Contract Mgmt Meetings

13. The overall objective of the Introduction is to instil the culture you are trying to achieve….. Introduction Programme • One common vision (tell them what it is) and one culture (tell them what you expect) • All Staff attend – existing and new • Include Site Visits (see, touch and feel your business front line) • On-going support via Intranet FOCUS = Cultural Change!!

14.  Performance Credit Cap 15-20% Scorecard Overview Scorecard Dimensions Corporate IT Scorecard Corporate IT Performance Measures Business Outcome Strategic Financial Management Service Quality Bundle Performance Measures Bundle 1 Scorecard Bundle 2 Scorecard Bundle 3 Scorecard Bundle 4 Scorecard Bundle n Scorecard Major Business Impact Measures Scorecard Performance Measures Other Scorecard Reporting Schedule 3 Performance Agreement Operational Performance Measures

15. $ Innovation Fund  CIO JSC NRA IT Strategic Plan IT Strategic Plan IT Strategic Plan IT Strategic Plan IT Strategic Plan S P 1 Strategic Initiative S P 2 Strategic Initiative S P 3 Strategic Initiative S P 4 Strategic Initiative S P n Strategic Initiative Innovation Idea: Provider: SPn Cost / Savings: Benefits: Platform / Apps: Timing: Deliverables: Innovation Idea: Provider: SPn Cost / Savings: Benefits: Platform / Apps: Timing: Deliverables: Innovation Idea: Provider: SPn Cost / Savings: Benefits: Platform / Apps: Timing: Deliverables: Innovation Idea: Provider: SPn Cost / Savings: Benefits: Platform / Apps: Timing: Deliverables: Innovation Idea: Provider: SPn Cost / Savings: Benefits: Platform / Apps: Timing: Deliverables: Innovation Process

16. Corporate Plan Environmental Scan Statistical Forecasts JMC SP Bundle Innovation Program SP Bundle Innovation Program Architecture Committee Capacity Planning Strategic Plan (Jan – Feb) Innovation Briefs Architectural Changes Technology Plan 2007- 2008 (March) Innovation Plan (Feb) SP Bundle Technology Plan Internal Bundle Technology Plan Branch Plans (May) SP Bundle Technology Plan SP Bundle Technology Plan SP Bundle Technology Plan $ NRA (Apr/May) Project Business Cases (March) Transition / Transform Plans in RFT Inputs and Timings of Joint Technology Planning Process

17. The Customs ITPerformance Measurement Framework (ITPerform)

18.  Performance Credit Cap 15-20% Scorecard Overview Scorecard Dimensions Corporate IT Scorecard Corporate IT Performance Measures Business Outcome Strategic Financial Management Service Quality Bundle Performance Measures Bundle 1 Scorecard Bundle 2 Scorecard Bundle 3 Scorecard Bundle 4 Scorecard Bundle n Scorecard Major Business Impact Measures Scorecard Performance Measures Other Scorecard Reporting Schedule 3 Performance Agreement Operational Performance Measures

19. Performance Model • All providers committed to the same model, including: • Scorecard model • Performance Mechanics & Joint Review • Performance At Risk Amount = % of Total Charges • Approach for adding/varying PM’s • Approach for continuous improvement The model represents a shift away from traditional ‘service level’ and penalty models. Senior Business reps have been involved in the IT Scorecard development.

20. 10 Expected Performance 7.5 7 Performance Requiring Improvement 6.5 6 5.5 Unacceptable Performance 10 0 Outstanding Performance = 8 Expected Performance Measure 7.5 7 Good 6.5 Performance 6 5.5 = 5 Minimum Performance Measure Poor Performance 0 • Two levels of performance are measured: • Expected level of performance (score >= 8) • Unacceptable Level of Performance (score < 5) • Example - For a measure based on %: • A score of 8 = 99.75% (expected level) • A score of 5 = 99.50% (unacceptable level) Scorecard Scoring Scale Each Performance Measure in the Corporate IT scorecard and the Bundle scorecard is calibrated to the 0-10 scale

21. Types of PM

22. Performance At Risk Amount Customs may apply a Performance At Risk Amount where performance is Unacceptable (score is < 5) Major Business Impact Measure Performance At Risk Amount A Performance at Risk Amount will apply. However, Customs may exercise its discretion to waive the Performance At Risk Amount Customs may exercise its discretion to apply a Performance At Risk Amount the second and each subsequent time that a Bundle Component Performance Measure is < 5 Bundle Scorecard Performance Measure Performance At Risk Amount Customs may also exercise its discretion to apply a Performance At Risk Amount the second and each subsequent time that a Corporate IT Scorecard Performance Measure is < 5 Performance At Risk Amount Corporate IT Scorecard Performance Measure Once Implemented

23. Drill Down Review • Performance Measure score < 8: • A Drill Down Review is conducted at the joint Forum and Corrective Actions assigned (Improvement Plan). • Performance Measure score <5: • An At Risk Amount may apply. Corporate IT Scorecard Performance Measures • In exercising its discretion to apply an At Risk Amount, Customs will take account of certain Guidelines. Bundle Component Measures Bundle n Scorecard Bundle 1 Scorecard Bundle 3 Scorecard Bundle 4 Scorecard Bundle n Scorecard

24. Scorecard Layout

25. Automated Reporting System Monitoring Tools Intranet Page Service Desk Tool Scorecard Tool / Data Warehouse (Daily / Weekly / Monthly) Data Feeds Asset/Config Tools Source of Truth Project Tools HR / Finance Systems Surveys Performance Measure Business Rules Reporting drilldown Data Sources

26. Any Questions…..?