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mwd
advisors




Delivering stakeholder-centric
services: from strategy to
execution
Neil Ward-Dutton
February 2011
In today‟s world, stakeholders‟ expectations of openness, responsiveness and personalisation are far
more informed and more stringent than they were even just a few years ago. At the same time
governments‟ interest in public-private sector collaborations has become more pronounced, and so
the networks of players required to work together in order to deliver services are more complex. To
cap it all, business and technology are also becoming ever more tightly intertwined.
To be efficient and effective in this environment – to meet stakeholders‟ expectations while at the
same time working with the constraints of tough financial environments – public agencies have to
focus on how they can deliver services from a stakeholder-centric point of view (in some territories
this is known as „citizen-centric‟ service delivery). Agencies have to use this perspective to drive the
end-to-end integration of operations and the sharing of underpinning capabilities across teams,
departments, and sometimes agencies.
This report lays out the challenges that arise during a transformation to stakeholder-centric or
citizen-centric service delivery, and highlights the crucial roles that key business and IT capabilities will
play for any public sector organisation navigating those challenges.




MWD Advisors is a specialist IT advisory firm which focuses exclusively on issues concerning IT-
business alignment. We use our significant industry experience, acknowledged expertise, and a
flexible approach to advise businesses on IT architecture, integration, management, organisation and
culture.

www.mwdadvisors.com

© MWD Advisors 2011                                                   This paper has been sponsored by IBM
Delivering stakeholder-centric services: from strategy to execution                                  2




Summary
Initial moves to deliver ‘e-         As agencies began to embark on the first „e-Government‟
government’ have had mixed           initiatives in the early 2000s, it soon became apparent that
success, and citizens have not       although taking existing service offerings and creating web
benefited overall                    front-ends for those services might in some cases lower
                                     delivery costs, the transparency of the web meant that it also
                                     had the unfortunate side-effect of shining a very strong
                                     torchlight onto the ways in which services were just not
                                     „joined up‟.

A move to stakeholder-centric        The simple transformations that took place in early e-
service delivery represents a new    government implementations were driven by individual
phase of e-government which is       teams, departments and agencies with the very best of
truly transformational, and as a     intentions. The poor outcomes that frequently resulted were
result it requires deep              a consequence of entirely natural, but “inside-out” thinking.
commitment
                                     The delivery of true stakeholder-centric services (in some
                                     territories, these are known as citizen-centric services) can
                                     only come about with a high degree of co-ordination
                                     between agencies to ensure that relevant information is
                                     shared in an effective and timely manner. This level of
                                     entanglement between shared capabilities and front-line
                                     service delivery is a significant step beyond the kinds of back-
                                     office service (such as HR) sharing that we see across many
                                     government agencies.
                                     What‟s happening here is a second, deeper wave of e-
                                     government transformation – service transformation – which
                                     shifts the focus beyond cost avoidance “at the edge” of
                                     government, to fundamental cost restructuring “at the core”
                                     of government by changing the mechanics of how capabilities
                                     are developed and delivered as front-line services.

Some key capabilities are required   In making the shift to stakeholder-centric service delivery,
to support stakeholder-centric       four challenges – legacy systems, existing incentives and
service transformation: Business     targets, lack of governance over investment in new systems
Process Management (BPM),            and processes, and lack of clarity in responsibility for ultimate
supported by business analytics;     delivery of change – can only be overcome with the smart,
and Enterprise Architecture and      connected development and application of two key IT and
Business Planning. All need to be    business capabilities. The first is the ability to analyse the
open and collaborative               performance of work that currently gets done in the delivery
                                     of services to stakeholders; and then analyse how this work
                                     should best be executed and managed. This capability is often
                                     referred to as Business Process Management (BPM), and
                                     relies on effective use of business analytics.
                                     The second is the ability to build a „big picture‟ view of how a
                                     stakeholder-centric service delivery strategy needs to be
                                     supported by particular business and technology capabilities,
                                     how key business processes align with those capabilities, and
                                     how IT should be marshalled to support the capabilities in
                                     different ways. This capability is often referred to Enterprise
                                     Architecture (EA) and Business Planning. It will also help you
                                     set and enforce policies that drive IT project investment to
                                     meet the needs of your transformation strategy.



© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                        3




The changing environment for public sector
agencies
In today‟s world, stakeholders‟ expectations of openness, responsiveness and personalisation are far
more informed and more stringent than they were even just a few years ago. At the same time
governments‟ interest in public-private sector collaborations has become more pronounced, and so
the networks of players required to work together in order to deliver services are more complex. To
cap it all, business and technology are also becoming ever more tightly intertwined.
To be efficient and effective in this environment – to meet stakeholders‟ expectations while at the
same time working with the constraints of tough financial environments – public agencies have to
focus on how they can deliver services from a stakeholder-centric (sometimes called „citizen-centric‟)
point of view, and use this perspective to drive the end-to-end integration of operations and the
sharing of underpinning capabilities across teams, departments, and sometimes agencies. We see
recognition of this time and again in studies of IT trends and investment plans which consistently place
the transition to stakeholder-centric services, enabled by business process transformation and
performance management specifically, as one of the highest priorities of senior public sector
executives in technical and non-technical roles alike.
What‟s really going on – what is it that‟s driving the pressures that we see affecting business and IT
leaders across organisations of all shapes and sizes and differing geographies? There are three large-
scale socio-economic forces in play:

   Globalisation. Increasingly global customer bases, partner networks, supplier networks, and
    competition, are forcing companies to become leaner and more flexible, focus on what makes
    them different, and find new ways to deliver sustainable competitive advantage. Public sector
    organisations feel the benefits of globalisation through increased outsourcing options.

   The drive for transparency. Regulation is sometimes forced on private sector organisations by
    governments, but increasingly industry bodies and individual organisations are voluntarily moving
    to provide more information about their processes, the resources they use and the ways in
    which they interact with their ecosystems and environments. Public sector organisations feel the
    pressure of transparency as stakeholders are starting to demand more openness regarding
    governance, the mechanics of democracy, service performance indicators, and so on; and as
    regulations (such as those imposed by freedom-of-information legislation) make themselves felt.

   Increasingly smart, connected populations. The rapidly evolving and maturing Worldwide
    Web is just one outcome of the explosion in always-on, global mass communication connections.
    Individuals and organisations are increasingly looking to the online world for solutions to
    problems and opportunities before looking to the offline world. In this environment resources
    can feasibly be located anywhere: it is possible to consider that “the world is flat” (as New York
    Times columnist Thomas Friedman says). Public sector organisations are increasingly finding that
    „digital natives‟ have demanding expectations regarding the availability of services, as well as the
    ability of service providers to personalise service delivery.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                            4




Service-orienting the public sector agency
Reacting to a changing environment
Management teams and consultants to government agencies and other public sector organisations
have been pursuing ways of reacting to this changing operating environment for many years – the
main change under consideration being the rise of the Internet. In particular, initially at least, the focus
has been on looking for ways to lower costs by delivering services to stakeholders over the web. A
number of studies have shown that if a transaction can be carried out via a website rather than face-
to-face with a customer services representative, the cost can be just 2% of the face-to-face cost
(telephone-based transactions are estimated to cost 50% of face-to-face transactions). Clearly this
represents a compelling opportunity to investigate.
However as agencies began to embark on „e-Government‟ initiatives in the early 2000s, it soon
became apparent that although taking existing service offerings and creating web front-ends for those
services might in some cases lower delivery costs, the transparency of the web meant that it also had
the unfortunate side-effect of shining a very strong torchlight onto the ways in which services and
information were just not „joined up‟. When service interactions with stakeholders are enabled by
phone and mail, the complete structure of an overall service portfolio is obscured from the
stakeholder; it‟s either hidden behind the knowledge of stakeholder-facing customer service personnel
or it‟s hidden completely – with knowledge of available services being passed around communities by
word-of-mouth. When the same services are made transparently available via the Web, the issues are
there for all to see. This disconnect is often all the more obvious where existing face-to-face and
phone-based alternatives remain.
The deeper opportunity and challenge facing public agencies following initial forays into the use of the
web – using the transparency of the web as a catalyst for transforming public sector services
fundamentally – has been part of government agendas for some years now. One example of a catalyst
for change was the UK‟s Varney Report1; and in the US, of course, the E-Government Act of 20022
drove a mandate for the creation of offices and programmes to drive stakeholder-centric service
delivery within and across federal, state and local agencies.
Across all these mandates for transformation, there is one common high-level element of change
discussed: the shaping of service definition and delivery so that it is truly stakeholder-centric – we
explore this idea below. Additionally, there are two important implications for stakeholder-centric
service delivery, which we also explore below: firstly, the integration of front-line service delivery
capabilities so they can be shared across agencies and departments; and secondly, increased
collaboration between public agencies and departments and external organisations.

The move to stakeholder-centric services and outside-in
thinking
The simple “web transformations” that took place in early e-goverment implementations were driven
by individual teams, departments and agencies with the very best of intentions. However the outcome
of a lot of this early work wasn‟t just the duplication of services to stakeholders, which could be
confusing for them; it was also the duplication of requests for information from stakeholders – which
typically leads not only to confusion but frustration. This outcome was a consequence of entirely
natural, but “inside-out” thinking: each agency and department, acting on its own initiative, considered
its own needs and capabilities as the foundation scope when analysing how it could present its
services and capabilities to the outside world.



1
  Service Transformation: A Better Service for Citizens and Businesses, a Better Deal for Taxpayers – Varney
Report to UK Government, 2007
2
  http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_bills&docid=f:h2458enr.txt.pdf


© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                             5


The move to re-imagine service delivery, taking the stakeholder‟s perspective and needs as the
starting point for service analysis and design, is the converse of the approach that‟s so often been
taken in the past. Increasingly this approach is referred to as the design and delivery of “stakeholder-
centric services”. Its importance is not tied 100% to the drive to deepen e-government commitments;
making services stakeholder-centric is a way of optimising cost and effort, regardless of the service
delivery channels used.

Co-ordinated service delivery in support of life events
The most commonly-explored aspect of stakeholder-centric service design efforts is perhaps the
definition of groups of services that need to be delivered in a highly co-ordinated way to support “life
events” shared by all citizens (such as birth, death) or most citizens (marriage, relocation). These life
events may lead to requirements for multiple services from government agencies, particularly if the
citizens in question are in receipt of benefit of some kind (unemployment, disability), which may in
many cases need to be delivered by separate agencies or departments. Figure 1 calls out a couple of
examples.

Figure 1: Example life events and their associated services and service owners


             Example life event           Service                      Department
             Relocation                   Local taxes                  Tax
                                          registration
                                          Change of address            Electoral
                                                                       administration
                                          Benefits                     Benefits (housing,
                                          registration                 child, etc)
                                          School enrolment             Education
             Death                        Notice                       Tax
                                          Notice                       Benefits
                                                                       (incapacity,
                                                                       housing, etc)
                                          Notice                       Electoral
                                                                       administration

An approach to service delivery which is co-ordinated around the needs of stakeholders quickly highlights how
deep integration between agencies – some central, some local – becomes paramount.

Beyond co-ordinated delivery: service personalisation and improvement
Other important tenets of stakeholder-centric service design include:

   Service personalisation – presenting services to stakeholders in ways and through channels that
    match their communication, accessibility and cultural preferences and needs.

   Open service improvement – displaying feedback from stakeholders openly, and aggregating
    feedback information to improve services; then openly communicating with stakeholders about
    changes and improvements made.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                                   6


Deeper use of shared services as a natural consequence
Stakeholder-centric service delivery sounds like a very attractive proposition, but as we‟ve already
seen yesterday‟s “inside-out” thinking – with each agency and department pursuing its own agenda
based purely on its own scope of operation – will not get us to a stakeholder-centric future. The
delivery of true stakeholder-centric services can only come about with, at the very least, a high
degree of co-ordination between agencies to ensure that relevant information – relating to
stakeholders‟ identities, addresses, entitlements and so on – is shared in an effective and timely
manner.
However where activities and capabilities need to be tightly co-ordinated across agencies and
departments, there are likely to be opportunities to go further than co-ordination – why not examine
these scenarios as opportunities to integrate and consolidate capabilities, creating “shared services”
units that can deliver one set of capabilities to multiple internal customers?
Of course, examples of the shift to back-office shared services delivery abound. However, most
examples so far are focused on sharing of finance, human resources and Information and
Communications Technology (ICT) infrastructure services – generic business support functions, in
other words. What we‟re talking about here is different: it‟s about the sharing of information and
application services that are core to how front-line services are delivered to stakeholders. This level
of intimacy and entanglement between shared capability and front-line service delivery is a significant
step beyond the kinds of back-office service sharing that we see across many governments, where
those services that are shared can be easily considered logically separate, at least, from front-line
service delivery. In the UK at the time of writing, open debate about a proposed “G-Cloud3”
infrastructure and a parallel “app store”, providing shared access to common IT capabilities, is placing
this topic under active consideration – but there is a long way to go.
What‟s happening here is a second, deeper wave of e-government transformation – moving from cost
avoidance “at the edge” of government by changing the basic mechanics of stakeholder interactions,
to fundamental cost restructuring “at the core” of government by changing the much deeper
mechanics of how capabilities are developed and delivered as front-line services.

Figure 2: A second wave of deeper e-goverment transformation




                           Service                                                Service
                        presentation                                           presentation

                                                                                Front-line
                          Front-line                                             service
                           service                                               delivery
                           delivery




                         Corporate                                              Corporate
                          services                                               services



               First-generation e-government                        Second-generation e-government
                  transformation: focus on                          transformation: focus on front-line
               service presentation, corporate                       service delivery sharing, external
                       service sharing                                         collaboration

A second wave of e-government transformation is now needed, to shift beyond transformation at the edge and
shared services in the back office (i.e. corporate functions) towards transformation / sharing in the front office.

3
    http://groups.google.com/group/cloudforum/msg/dc1b72e787ebeae3?pli=1


© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                          7


Another outcome: readiness for external collaboration
There‟s one other important implication of a shift to stakeholder-centric service-orientation of a
public agency, and that‟s a need to embrace closer and more timely, interactive collaboration with
external organisations, be they from the private sector or the third (voluntary/charity) sector.
Requirements that spring from service personalisation commitments as outlined above mean that it‟s
increasingly likely, particularly in countries where cross-sector partnerships and outsourcing
arrangements are aggressively pursued, that agencies and departments will have to be able to
collaborate with third parties in order to deliver services effectively.
Public sector agencies and departments have to find secure and structured, yet also flexible and
timely, ways to share information and collaborate on service case work and processes across
organisational boundaries.

Outside-in service design should drive vertical organisations to
manage horizontal operation end-to-end
So what does all this – stakeholder-centric service delivery, creation of front-office shared services,
external collaboration with third parties – mean in practical terms? What do public agencies and
departments have to do in order to move from the current state to a future state where these goals
are attained?
There are many changes to be made of course, but at the highest level the key characterisation of the
transformation that must take place is that it involves the creation of a set of practices and policies to
ensure that work is “joined up” horizontally across the organisation – so that end-to-end work is
optimised from the perspective of the stakeholder and the service that is delivered to them, rather
than being optimised from a functional, team or department perspective.
This shift isn‟t about replacing functional (vertical) organisation with horizontal organisation that‟s
100% focused on service-driven, end-to-end process. Rather, it‟s about overlaying a structure that
aims to drive end-to-end thinking on the existing functional organisation, and putting capabilities in
place to enable the two structures to work together in harmony.
Of course, such a fundamental change in the way an agency is directed and managed can‟t simply be a
case of designing the change, and then assuming the organisation will make the necessary adjustments.
The difficulty of transitioning to a „horizontal‟ process-oriented management model is well-
documented. At this point, however, agencies can no longer avoid the decision. This is a
transformation that has to be made.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                           8




Taking transformation from strategy to
execution: why is the path so complicated?
It‟s not only public-sector organisations which are embarking on this kind of transformation; as we
outlined in the introduction to this paper, organisations across public and private sectors are
wrestling with the forces of globalisation, the pressure of transparency and the opportunities
associated with smart, connected individuals and markets. Large private sector organisations have for
a few years now been heavily engaged in business transformations that seek to refocus customer
services efforts as well as consolidating capabilities and services at their core – and using this
consolidation to power more business process consistency and effectiveness, and improve customer
service as a result.
No organisation – whether public or private sector – ever finds this kind of transformation easy; it
involves big changes to systems, information and processes, and has big impacts on people. At the
moment, of course, there is a very significantly complicating factor – and that‟s the fact that shrinking
government budgets mean that prioritising transformation efforts can become complicated. Beyond
this, though, there are typically four reasons that organisations struggle to take transformational
programmes and strategies defined at executive level, and make them operational:

   Legacy systems.

   Existing incentives and targets.

   Lack of governance over investment in new systems, processes.

   Lack of clarity in responsibility for ultimate delivery of change.
We explain each of these in a little more detail below.

Legacy systems: the weight of history
The most obvious impediment to transforming a public agency to enable stakeholder-centric services
and all the things that go along with it is the inertia created by legacy systems and ways of working. Of
course there‟s the „drag‟ created by long-lived systems that are difficult to change to fit new
requirements – either because the technology isn‟t adaptable enough, or because the skills no longer
exist in the organisation. However, simply „ripping and replacing‟ such systems is likely to be
impractical – you have to find ways to extend and improve them without incurring major costs or
risks.
But there‟s also a challenge that comes from the dependencies that can exist between operational
systems; particularly where those dependencies reflect a functional, inside-out approach. As IT has
become more a “part of the furniture” within organisations, and as IT systems have become
increasingly interconnected and interdependent, making a change to one system can have unintended
consequences for other systems which depend on it in some way. For many organisations the links
between older systems can be as poorly documented as the systems themselves; this is a particular
risk in some parts of the public sector, which has a higher level of reliance on legacy systems than
many industries in the private sector.

Existing incentives: pulling the wrong way
Individual departments in organisations are specialised things. They‟ve got that way because in many
cases, specialisation is vital to success. Business teams have specialised skills in finance, purchasing or
marketing for example, whereas technology teams have specialised skills in systems administration or
software development. But when specialised teams become firm organisational units, they also
become budget holders with their own specialised incentives and targets. Managers become focused
on driving for optimum performance in their own area, often to the exclusion of larger concerns. As
management guru Peter Drucker famously said: what gets measured gets managed.


© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                            9


Of course this isn‟t a problem in itself, but if your organisation is trying to transform itself to consider
end-to-end, horizontal efficiency and effectiveness, individual focuses on area-specific performances
may actually work against the transformation.

Lack of governance over investment in new systems, processes
The problem with a laser focus on operational performance within departments is that one person‟s
„laser focus‟ is another person‟s „tunnel vision‟. Left to their own devices individual departments within
agencies are likely to carry on using their own budgets to achieve their own „local‟ goals rather than
considering any bigger-picture implications of a large-scale transformation.
A stakeholder-centric services transformation and the associated moves towards shared front-office
services and open collaboration require a number of systems and process investments, most of which
are going to need contributions – in terms of money and resources – from multiple teams and
departments. Quite apart from helping to resource collaborative endeavours across an agency, there‟s
also the issue that a stakeholder-centric services transformation will probably also need to spawn a
number of local projects with departmental scope which will need to be prioritised appropriately.
Without a governance framework in place that‟s designed to help realise the goals of such a
horizontally-focused transformation that cuts across departmental boundaries, together with senior
executive sponsorship of that framework, organisations find it very difficult to sustain any kind of
transformation momentum.
In the public sector, the creation of a robust governance framework is particularly important because
the level for ongoing change in requirements (particularly, but not exclusively, concerned with
implementing changing legislation) can be so great. Without governance frameworks that can impose
certain approaches on the procurement and implementation of systems, opportunities for sustainable,
flexible solutions are often missed.

Confusion over responsibility for ultimate delivery of change
Public sector agencies are typically highly dependent on external resources for development and
delivery of IT systems. Outsourcing activities are notoriously complicated to manage even when those
services being outsourced are focused on ongoing operations (such as IT administration, customer
services, payroll, and so on) but in the context of outsourced supply of services to assist with
transformations, the complications are compounded.
For example: although an external provider may be able to develop and deploy new IT systems or
changes to existing systems to meet a set of predefined requirements, it‟s very unlikely they‟ll also
have responsibility for making sure that people in your organisation have the skills and inclination to
work within the changed environment in the right way. Change management associated with IT
investment is something the customer has to be very focused on. Cases abound where public agencies
have employed contractors to implement new systems as foundations for business process
improvements, but where responsibility for managing the organisational change around those
improvements has not been clearly assigned or communicated. These situations always end badly.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                           10




Making the shift: key capabilities you must pull
together
In making the transformation to stakeholder-centric service delivery, the four challenges highlighted
above – legacy systems, existing incentives and targets, lack of governance over investment in new
systems and processes, and lack of clarity in responsibility for ultimate delivery of change – can only
be overcome with the smart, connected development and application of some key IT and business
capabilities. They are:

   Business process management (BPM), supported by business analytics. These
    capabilities will help you analyse the work that currently gets done in the delivery of services to
    stakeholders; and then analyse opportunities for improvement – drawing out how this work
    should best be executed and managed as part of end-to-end processes. A pair of BPM and
    business analytics capabilities will help you plan calculated improvements – to eliminate risk and
    cost, speed service delivery and improve stakeholder satisfaction with personalised services.
    They‟ll also help you prioritise changes in a world where overall resources are increasingly
    constrained – helping you understand where the greatest opportunities for improvement, at the
    lowest cost, are located.

   Agile, actionable enterprise architecture (EA) and business planning. This capability will
    help you build a „big picture‟ view of how a stakeholder-centric service delivery strategy needs to
    be supported by particular business and technology capabilities, how key business processes align
    with those capabilities, and how IT should be marshalled to support the capabilities in different
    ways, within the current operating and financial constraints that exist. This capability will also help
    you take the „big picture‟ created by EA work and make it real, by setting and enforcing policies
    that drive IT project investment to meet the needs of your transformation strategy – and helping
    you clarify responsibilities for managing the delivery and acceptance of transformation projects.
These capabilities are intertwined and interdependent so it‟s a little difficult to discuss them in any
particular order, but below we dig into each of them in turn.

A common theme: building bridges across the IT-business
divide
It‟s perhaps too easy to place the blame for today‟s challenges in translating strategy into execution at
the door of business executives – and sympathising exclusively with the poor, put-upon IT teams
which have to cope with increasingly unreasonable demands from business departments.
But this isn‟t the case. The truth is that both business and IT departments have historically been
complicit in creating the headaches that many organisations are saddled with today. Much of the time,
strategic IT investment mistakes turn out to be masked by what seem at the time to be tactical
successes. And these mistakes are made not as the result of real negligence, but as the result of IT
and business people failing to work together to drive consensus that consideration of a bigger picture
is necessary.
As the IT industry has matured over time, and as IT practice has matured within organisations, we‟ve
seen attitudes and approaches change – slowly. At first, IT organisations were managing IT
investments for their own sake. There was little in the way of a real relationship between those
responsible for managing IT investments, and those making the investments (and receiving the
benefits). Then, eventually, IT organisations began working to manage IT investments for business. The
relationship between investment makers and investment managers was one of customer-supplier.
Truth be told, most organisations are still in this mode of working. But this will not do. Now, the
baseline that we all have to aspire to is managing IT investments within business.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                           11


Business Process Management (BPM) and business analytics
An effective Business Process Management (BPM) capability will deliver you the analysis and design
underpinning for your transformation to stakeholder-centric service delivery; it should also help set
the strategic context and mandate for you to re-factor front-office services and drive towards
integration and sharing of capabilities to drive down costs and maximise citizen satisfaction. BPM,
combined with business analytics tools, can also create an IT-based platform for automating and then
monitoring and optimising the integrated business processes that will power your stakeholder-centric
services.
By itself, a BPM initiative supported by business analytics will not deliver you the transformation you
need; but it forms the design core around which Enterprise Architecture, Portfolio Management and
stakeholder engagement need to fit.

BPM: improving the process of process improvement
The practice of business process improvement has been part of the business and IT management
landscape in one form or another since the Industrial Revolution; and BPM specifically as an approach
to process improvement has been with us for over a decade. Against this backdrop, it‟s sensible to
ask how BPM specifically differs from earlier process improvement methods and tools.
One answer is to say that a key differentiator is BPM‟s central focus on enabling continuous change
and improvement. Another and more enlightening answer, though, is that BPM is fundamentally about
“improving the process of process improvement”. For a BPM initiative to really deliver value, it
has to pull together a number of process improvement capabilities and skills that
probably already exist in your organisation in new, more effective ways.

BPM is about more than agile, iterative system development
To really deliver value, BPM requires you to develop and marshal a group of practitioners from
multiple IT and business disciplines, and give them access to some specialised tools and practices.
Because BPM initiatives often involve the development and delivery of specialised „process
applications‟ that coordinate and track work across teams, departments and existing applications and
systems, it can be tempting to think of BPM as simply a flavour of software development or
application integration that encourages agile, iterative delivery of application capabilities; however this
is not the case. There are two main reasons.
The first reason is that in order to improve the process of process improvement, effective BPM
practice embraces the whole lifecycle of process management: from initial discovery and analysis of
business process improvement opportunities, leveraging business analytics insights, through detailed
process design, development of process applications, deployment of those applications, process
monitoring, and optimisation. BPM works at a higher level than simple application development, and
links intimately into issues of business change management. Management of performance and
optimisation – not of a process application, but of the business process that the application helps to
improve – are absolutely central to the practice of BPM, and this has not traditionally been a concern
for those focused on business software development.
The second reason is that looking specifically at the software that‟s developed and deployed as part of
BPM projects, it‟s actually quite different from „traditional‟ application software. Today‟s process
applications aren‟t like the workflow applications of old which were monolithic, hard-coded
interpretations of strict rules; instead, they provide collections of software tools to help process
practitioners (customer service personnel, HR personnel, benefits case workers, service delivery
managers, and so on) with assistance and guidance to complete case and process work. These
applications can be highly flexible and dynamic, and in many implementations their structure and
behaviour can be extensively reconfigured by business analysts or process administrators.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                        12


Driving efficiency, supporting service promises and personalisation
Much of the available BPM research literature – driven perhaps by the high visibility of the process
improvement approaches of Six Sigma4 and Lean5 – focuses primarily on process efficiency and quality
as being the sources of BPM‟s value. However there‟s more to BPM‟s value than that.
Of course, effective application of BPM, supported by effective business analytics, does drive
operational efficiency and quality – and thus enables public sector organisations to pull people and
systems together across traditional boundaries to efficiently and effectively deliver services to
stakeholders. By providing tools and techniques to help organisations discover current processes,
measure their performance, analyse opportunities for improvement, prioritise opportunities bearing
in mind cost and resource constraints, and then standardise or even automate processes, BPM
initiatives can reduce waste and improve work efficiency – either increasing the amount of work that
a team can do, or enabling the same amount of work to be done with a smaller team.
BPM can also help public agencies take a step further, though, and enable organisations to make clear
service commitments to stakeholders; and also deliver services with unprecedented levels of
personalisation – „taking the service to the stakeholder‟.
By integrating disparate business systems, improving the way that teams work, reducing latency, and
making it easier to change the way that processes are carried out, BPM initiatives provide great
foundations for agencies looking to improve the speed with which services are created and deployed.
By introducing performance measurement frameworks, BPM initiatives can also create supporting
environments for organisations wanting to drive satisfaction and transparency by offering services that
have guaranteed quality levels – for example, offering (in the case of a hypothetical benefits office) a
guarantee that all enquiries will receive an initial response within one day.
A BPM technology platform will also capture the identity of every stakeholder interacting with a
service and make that an integral part of the context of a business process instance or case. Through
this feature, agencies receive the ability to mix-and-match stakeholder service interactions across
channels (web, call centre, physical branch offices), case work teams, team locations and worker
shifts. This means that individual stakeholders can make much more flexible choices about when,
where and how they interact with public agencies; they experience true customer service.

Critical success factors
Many organisations pursue business process improvement exercises with the tools and approaches
that they‟ve used for years: indeed our own research shows that the majority of organisations are still
in this mode of working. In a recent major market survey carried out by MWD Advisors, for example,
the vast majority of respondents (over 90%) cited tools like Microsoft PowerPoint and Visio as their
primary process modelling tools; and cite „traditional‟ approaches to application development and
delivery as being the principal ways that process improvements are implemented. There‟s no doubt
that you can still get process improvements using these tools and approaches: but you won‟t get the
full value that BPM can offer.
Technology alone won‟t deliver you an effective BPM implementation. However there are things that
the right technology can do which will make delivering business value from your BPM work much
easier:

      A collaborative discovery and design space. A shared, easy-to-access and easy-to-use
       graphical environment that BPM stakeholders of all skill levels can use to explore process
       problems and opportunities, and link them to the organisation‟s strategic context is a valuable
       tool for boosting stakeholder engagement and helping to ensure and maintain buy-in. The best
       tools place graphical models at the heart of specification work, and as well as providing
       requirements documentation, these models also form the foundation for the logic within the
       running system that‟s eventually created to manage work.

4
    http://asq.org/learn-about-quality/six-sigma/overview/overview.html
5
    http://asq.org/learn-about-quality/lean/overview/overview.html


© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                          13


   Role-based, flexible interfaces for participants, administrators and stakeholders. Once
    models are taken through design and development and translated into a running software system,
    the runtime environment should be flexible enough to deliver any mixture of work management,
    administration, monitoring and configuration features to any stakeholder – within a role-based
    framework. Flexibility in delivering “content” and functionality to particular people and groups is
    vital, because every organisation has unique requirements.

   Rapid transferability of models through the process lifecycle. It‟s not enough to have
    design tools that allow process analysts to map out business processes in detail if creating a
    running process then requires multiple further complicated steps. It‟s also crucial to be able to
    take those same design models and use them as the context for operational monitoring tools:
    only by showing operational health and performance in the context of business-meaningful
    processes is it possible to deliver metrics that can quickly deliver feedback and enable further
    improvement.

   Well-bounded integration and other technical activities. BPM tools can be great at
    translating graphical process models into running process logic, but „finished process applications‟
    need more than just process logic – and it‟s unreasonable to expect that any tool will enable
    complete software applications to be delivered without someone having to do some technical
    work. BPM technology offerings should help you draw clear boundaries around technical work
    (such as integrating processes with back-end resources and systems) – clearly separating
    configuration work that can be done by non-technical people (possibly business stakeholders, in
    the case of business rules and policies) from work that has to be done by technical specialists.
    BPM technology that can work seamlessly with integration platforms like Enterprise Service Buses
    (ESBs) have a great advantage here.

   A foundation for governance and change management. Many BPM tools can enable
    customers to build new process applications quickly; but in order to support the value
    proposition of BPM over the long term, tools that can manage development assets centrally, with
    easy-to-use change management facilities that help co-ordinate the work of teams and highlight
    dependencies between components are essential.

Agile, actionable Enterprise Architecture and Business
Planning
An effective Enterprise Architecture (EA) and Business Planning capability is a way to bring IT and
business strategy together, and will help you build a „big picture‟ view of how stakeholder-centric
service delivery needs to be supported by particular business and technology capabilities, how key
business processes align with those capabilities, and how IT should be marshalled to support the
capabilities in different ways. Crucially, an EA and Business Planning capability should provide
important context for the core „engine‟ of your transformation – your BPM initiative – by linking your
BPM work to both business and IT strategy.
These linkages provided by EA and Business Planning are vital because without them, BPM initiatives
that start off with clear objectives and strong executive support can quickly lose momentum. Business
and IT strategies change, and the role of EA and Business Planning in the transformation to
stakeholder-centric service delivery is to make sure that those changes don‟t make transformation
projects that are in-flight irrelevant. It‟s important, though, that the EA and Business Planning practice
you create and leverage has the right kinds of priorities.

A brief overview of Enterprise Architecture
Enterprise Architecture (EA) is a business-IT capability that large organisations have used for decades
to bridge their business and IT strategies, and many large public- and private-sector organisations have
an EA programme in place, staffed by dedicated roles and personnel. Despite that, there‟s still
considerable industry debate about the EA term and what it refers to, its scope, its value and the best
approach to take.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                                  14


The US National Institutes of Health (NIH) makes one of the clearest attempts at a definition of EA to
be found in the public sector: “Enterprise architecture is a comprehensive framework used to manage and
align an organization's Information Technology (IT) assets, people, operations, and projects with its operational
characteristics. In other words, the enterprise architecture defines how information and technology will support
the business operations and provide benefit for the business. It illustrates the organization’s core mission, each
component critical to performing that mission, and how each of these components is interrelated.”
Most practitioners today agree that EA isn‟t purely an architecture activity focused on the planning of
IT systems, but an activity that seeks to map and connect models of business activities and capabilities
with definitions of essential enterprise information and IT systems and capabilities. Generally speaking,
today‟s EA frameworks (specifications for carrying out modelling work and for classifying and relating
models) have also coalesced around four different types or levels of modelling: business architecture,
information architecture, application architecture and technology architecture. Although different
organisations use different frameworks, and a sizeable portion use some kind of „home-baked‟
framework; however in the public sector we see more and more firm guidance on the use of
particular frameworks (the use of the Federal Enterprise Architecture Framework, FEAF 6, is a good
example).
There is one major area of practical uncertainty that‟s separate from a choice of framework, though,
and simply put it boils down to a short question: with EA, what‟s more important – the deliverable
artefacts (the models) or the process by which you arrive at those deliverables? This is where the idea
of „Agile EA‟ comes in.

The value of an agile approach
At the dawn of EA as a recognised discipline, the vast majority of research and practical activity in the
area was focused on the act of documentation – the creation of static and stand-alone models that
described „as-is‟ states of collections of IT systems, and perhaps models that described „to-be‟ states
based on EA practitioners‟ understanding of transformation programmes. This kind of activity
represents a sizeable portion of the EA work still that‟s done in the public sector today.
This is perhaps not entirely surprising, given that EA as a discipline originally grew from large-scale
software engineering methodologies that were popular in the 1970s and 1980s – when business and
technology change happened at a pace that was glacial compared to that of today. In the last few years
it‟s become clear that the pace of business and IT change means that a documentation-focused EA
effort – where what‟s measured and appreciated is the completeness of the models as descriptions of
enterprise IT estates – is unlikely to add very much value at all. The danger of EA irrelevance is
compounded by the fact that when EA teams focus exclusively on the quality and completeness of
documentation, they can end up working in insular teams, isolated from other groups.
An agile approach to EA turns this documentation-focused approach on its head, and sees the process
of discovering and analysing an organisation‟s structure, strategy, dynamics, priorities and capabilities –
when it‟s done through discussion with internal and external stakeholders, rather than in isolation –
as more important than the completeness of the ultimate record of that understanding. In agile
approaches to EA it‟s conversations with stakeholders that are the focus; Agile EA is first and
foremost a process of learning from and influencing stakeholders to make better decisions about their
planned investments and projects. It‟s particularly critical in the public sector because of the wide
variety and diversity of stakeholders that exist.
Of course models and presentations of those models are a key tool in having those all-important
conversations with stakeholders (every conversation needs a common language, after all), and the
models help provide that important context for BPM and other transformation work; but the models
are a means to an end rather than the end itself.




6
    www.cio.gov/documents/fedarch1.pdf


© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                               15


The integration of Portfolio Management with EA practice
One of the primary ways that EA work needs to have an impact, as mentioned above, is in highlighting
how “strategy needs to be supported by particular business and technology capabilities ... and how IT should
be marshalled to support the capabilities in different ways”. It‟s all very well to highlight these things, but
how can you take action based on high-level guidance? The answer is to extend EA practice with
aspects of portfolio management, and use the result to guide individual project and operations
investments.
Portfolio management is an approach to investment management that‟s very well established in
general business circles; but its application to IT investment is still comparatively new – particularly in
the public sector.
In general, portfolio management practice seeks to analyse a set of investments and optimise them (by
buying, selling) according to stated goals. In the context of IT projects and services, goals are typically
stated in terms of costs, business value, and risk; optimisations are expressed in terms of accelerating,
refocusing, decelerating, or killing projects. Portfolio management is absolutely crucial here because
the resources available to any organisation are finite (and of course, becoming more constrained);
portfolio management practice helps senior IT decision-makers understand how they can balance and
prioritise business demand to achieve the „best outcome‟.
In the context of a transformation to stakeholder-centric service delivery the combination of EA with
portfolio management practice – to create EA practice which is able to inform and drive business
planning as well as tune the details of IT investments – is crucial. Without links to the processes and
organisational bodies that are tasked with green-lighting projects and maintaining project oversight,
EA may be agile; but it will not be truly actionable.

Critical success factors
There are five factors to consider if you want to build an EA and Business Planning practice that is
agile and actionable, and that will help you create and maintain links between your BPM work and
business and IT strategy efforts:

   Make EA a formal practice. It‟s not good enough to have EA as part of your organisation‟s
    agenda that you „get around to when you have time‟; you need to have a formal EA practice in
    place with established roles and a named leader. It‟s not essential that all or indeed any members
    of your EA practice are working on EA full-time; but EA work needs to be a formalised part of
    their responsibilities. What‟s more, you can‟t outsource EA work: in fact, when you outsource a
    significant proportion of your IT delivery work, having an EA capability becomes even more
    important because it helps maintain the business context for that IT outsourcing work and keep
    outsourcing providers‟ services aligned with your organisation‟s overall needs.

   Use EA to reinforce the value of BPM to business and IT stakeholders. Don‟t set up EA
    practice so that it can exist as an isolated, inward-facing activity: specify its mission in the context
    of linking your transformation projects to business and IT strategies – and providing the context
    for your core BPM initiative.

   Measure the performance of your EA practice by asking its customers. You have to
    track progress of your EA initiative so you can assess its value and appraise and reward those
    people working on EA – but be sure to use externally-facing measures to track progress. Centre
    your measurement of the value of EA practice not on documentation created, but on the
    opinions of project teams and stakeholders with which the EA team has worked. Do they feel
    that the EA team has understood their perspectives, and that it has in turn influenced them to
    consider the big-picture implications of certain project approaches and technology choices?




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                         16


   Put governance in place to encourage action from findings. If you‟re going to make an
    investment in EA and Business Planning practice then it makes sense to put a structure in place to
    ensure that the output of the EA and Business Planning capability will actually be used in practice.
    This might not require a significant capital or personnel investment; it‟s more a matter of ensuring
    that the effort is visible and has support from senior executives involved in your transformation
    programme, and then that there‟s a forum where the outputs of EA and Business Planning work
    are used to inform programme investment controls. In practice this might be simply a matter of
    ensuring that your EA capability has a „seat‟ on your Programme or Project Review Board.

   Enable EA practice with smart tools. Last but not least, in order to practice EA in a way that
    fosters shared vision amongst stakeholders and ensures that your process transformation work
    remains clearly grounded to your business and IT strategies, it‟s really important to select the
    right tools for the job. There are many EA tools available, and most of them provide rich
    modelling capabilities and sophisticated repositories to allow you to link and visualise architecture
    models across different views and perspectives. What‟s important above this, though, is the ability
    for EA tools to enable your EA practice to open up, and become directly actionable. Specifically,
    look for tools that can provide links into your portfolio management work (see below), as well as
    exchange process models with tools you use for business process analysis and management (see
    above). Look for lightweight publishing and collaboration capabilities that make it easy for EA
    specialists to share models and analyses with non-specialists, and explain the implications of them.
    And look for tools that don‟t just enable EA practitioners to create static models, but models
    that have real-world attributes associated with them that can be aggregated and analysed using
    business analytics tools – enabling, for example, financial analyses of the impact of a proposed
    project to consolidate a set of systems.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                           17




Case study: City of Corpus Christi, Texas
Over the past few years, the City of Corpus Christi has used IBM‟s Maximo technology as part of a
foundation for transforming asset and service management processes across a number of its
operations, particularly those associated with water and wastewater provision, utility provision and
public works.
Prior to 2000, the City‟s work orders were all manually processed and there was no IT system to
track work progress, service levels or costs. Then, however, a structural shakeup placed the threat of
potential water utility privatisation at the door of the City‟s administration. To prepare itself to be
able to counter this threat, the City embarked on a programme of work to modernise its utility asset
and work management processes. Over the next three years the City rolled out updated systems
across its water treatment and wastewater plants, and updated the management of other crucial
utility services in 2004. Once the internal management practices were systematised, the City of
Corpus Christi then set about creating a unified „One Call‟ access point for citizens that would allow
it to respond quickly and effectively to any service request. The resulting system assists with the
creation and distribution of work orders to the relevant field staff in response to citizen alerts and
requests, and also tracks the progress of work.
For the first two years of the implementation, the City outsourced the development and operation of
the system – only bringing it in-house once the implementation settled down and internal staff were
sufficiently familiar with the system‟s workings. Crucial to the success of the programme was the
creation of project champions in each department; these champions helped to drive up-front
workshops with the departments to help refine system, process and business information
requirements and gain a degree of up-front buy-in from users. Now, the City‟s administrators can
track work performance against pre-defined SLAs – and this performance information helps to set the
context for ongoing improvements. To date, the City has focused most of its efforts on measuring
and managing responsiveness; now it‟s starting to spend more effort on providing more detailed cost
analyses.
When asked to share insights that would be useful to other organisations undergoing similar
transformations, Steve Klepper, administrative superintendent for the City, highlighted two key items:
Firstly, you must realise that technology can only ever be a tool; you mustn‟t view it as an end in itself.
A corollary of this observation is that it doesn‟t make sense to expect your IT department to be
responsible for the success of an initiative like this – it‟s the business‟ responsibility to ensure
acceptance and embrace of a new system or process.
Secondly, convincing people to embrace a new system or process can take concerted effort over a
long period. Within the City of Corpus Christi, although the City leaders understood the rationale for
change, senior staff were less convinced – and this became more obvious once the initial threat of
privatization receded. Working to ensure that staff avoid falling back into old, comfortable (but
inefficient) ways has been something that‟s required continuous attention.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                          18




Case study: Municipal Information Systems
Association, Ontario, Canada
Ontario‟s Municipal Information Systems Association (MISA) is part of a national Canadian not-for-
profit association which brings together regional associations of municipal government representatives
and others engaged in, or interested in, the development and operation of municipal information
systems. MISA has been incorporated in Ontario since the 1970s. MISA runs industry conferences and
negotiates preferential supplier discounts on behalf of its members, as well as facilitating more specific
knowledge sharing.
In the 1990s, MISA members started a collaborative programme of work to develop best practices in
information and business modelling for municipal government agencies, specifically relating to
improving public asset and infrastructure management. After some years of work, the outcome of this
effort evolved into the Municipal Reference Model (MRM) – a comprehensive and sophisticated
catalogue of around 150 services commonly provided by municipalities that models mandates,
programs, outcomes, outputs and their inter-relationships from the perspective of citizens, which
helps municipalities more clearly understand the value that their own services provide.
In the past few years, following its extension to both the provincial and federal levels in Canada, this
work has been given a further boost because of increased pressure on government budgets. Now,
budget pressures are leading agencies to have to think about tradeoffs between services and
associated service levels. Understanding how services contribute to government mandates and
outcomes for citizens makes it much easier to make informed decisions about investment priorities –
or at least to ask informed questions about costs and benefits from the citizen‟s perspective. As a
result, many municipalities are now using the MRM as a foundation model for more rigorous service
planning and service-based budgeting; as well as continuing to use MRM to help provide investment
context for ongoing development and management of IT applications.
With the increased development and use of the MRM by MISA members, so the need for more
sophisticated tool support for MRM use has grown. As well as using MRM as a reference for their
own internal use, municipalities have become very interested in benchmarking their own services and
capabilities against those of other municipalities – from both cost and performance/results
perspectives. MISA members are now piloting the use of IBM Rational‟s System Architect, combined
with Lotus Quickr, as a platform for sharing models, metrics, contextual reports, best practices and
background documents, as well as carrying out and sharing benchmarking analyses. MRM‟s service
catalogue provides a common reference model for all this work. Now the ability to share strategic
and financial insights, based on a common business reference model and benchmarking database,
provides a foundation for advanced planning and evidence-based budgeting options that municipalities
can readily take advantage of.
When asked to share insights that would be useful to other organisations undergoing similar
transformations, Roy Wiseman, CIO for the Region of Peel in Ontario and a champion of MRM for
many years, highlighted two key items:
Firstly, be prepared for a long haul. Developing comprehensive business architecture models that are
going to be shared and used by groups of independent authorities can take a lot of effort over a
considerable timescale. You have to be prepared to „plant the seed‟ of the idea, and take time to
develop good levels of awareness within all stakeholder groups.
Secondly, getting the right people to commit to such a project – and stay committed – means you
have to develop a compelling answer to the question “what‟s in it for me?” When initiatives like this
start they‟re carried by enthusiastic individuals for whom the benefits are self-evident; but for them to
build over the long term and become embedded into an organisation, you need to hone your pitch so
that it‟s attractive to new audiences.




© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                           19




Case study: New York City Health and Human
Services
The Health and Human Services (HHS) Domain of New York City is a group of 8 government
agencies that work together to improve agency co-ordination, maximise service levels and minimise
costs. When Michael Bloomberg first took office as New York City mayor in 2002, reducing service
and organisational overlaps in the HHS area was one of his key priorities. Although many of the HHS
agencies were serving the same clients, agency reorganisations over time had compounded
fragmentation of service delivery, and duplication of effort and information. At the start of his second
term in 2005, Bloomberg appointed a Deputy Mayor, Linda Gibbs, who developed a strategic plan for
the HHS domain and created a programme of change initiatives called the HHS-Connect programme.
The programme has three related missions: first, to improve clients‟ interactions with HHS agencies
through a client-centric approach; second, to improve workers‟ experiences in dealing with clients, by
increasing access to data across agencies; and third, to improve agencies‟ effectiveness and efficiency.
The first part of the programme – the creation of a citizen-facing portal called ACCESS NYC – got
underway in 2006, and is still ongoing. ACCESS NYC brings together client eligibility screening for a
wide variety of benefits and services across multiple agencies, and enrolment for select services, in
one place. The second part of the programme – the creation of the Worker Connect portal – was
built around the creation of a „common client index‟ (CCI) using Master Data Management (MDM)
and Enterprise Service Bus (ESB) technology. The result is a system that provides one shared source
of client data that all relevant agencies can access according to law and regulation. Going forward, the
HHS-Connect programme is now exploring how it can deliver additional value to HHS agencies. One
particular priority is in the area of case management: as individual agencies start to end-of-life their
existing legacy case management systems, the HHS-Connect programme is looking to offer agencies
assistance with deploying a standard platform. The programme is also exploring the idea of
standardised financial processing and claims payment processing platforms.
The City knew that solid evidence would be vital to justify the effort of the initiative, and to assess the
validity of the chosen priorities. It carried out an internal market research project, which clearly
showed that data sharing was a crucial issue for workers „on the ground‟ in individual HHS agencies.
The next challenge was to convince individual agencies that security risks associated with sharing data
could be managed effectively. To this end, the programme dedicated a specific team of people to
working one-to-one with key representatives of the agencies, as well as legal experts, to agree and
implement policies and technology frameworks to ensure that the agencies‟ concerns were adequately
met while at the same time working within the constraints of regulations such as HIPAA.
The HHS-Connect programme has established an Enterprise Architecture and Governance capability
to help it build and maintain „big picture‟ context for operational decision-making. However, this
capability is very lightweight: it‟s not about creating models for the sake of modelling. Instead, the
programme team has created an Executive Steering Committee, chaired by Deputy Mayor Gibbs and
other City of New York executives, to shape demand from individual agencies. It‟s paired this with a
Solution Architecture Review Board, which works with the various agencies‟ systems integration
partners to ensure that all parties involved in creating new technology capabilities for agencies have a
consistent view of key requirements and preferred architecture and technology approaches.
When asked to share insights that would be useful to other organisations undergoing similar
transformations, representatives of HHS-Connect highlighted three items. Firstly, make sure that you
have a strong risk management methodology. You must identify and document risks and identify
remediation plans, assign risks to people so they‟re accountable for their own risks, and track risks.
Risk management has to be proactive, and has to be something everyone takes responsibility for.
Secondly, make sure that you have carried out a proper business justification and that as your
programme unfolds you‟re measuring the benefits that you identified in that business justification.
Thirdly, make sure that you have a strong and engaged senior Executive Steering Committee that has
overall responsibility for the success of the programme, and work hard to make sure they stay
engaged. Without this level of sponsorship, it proves difficult to show success over the long term.



© MWD Advisors 2011
Delivering stakeholder-centric services: from strategy to execution                                           20




IBM Capabilities for all stages of your transformation
Government Industry Framework
IBM Industry Frameworks combine the power of award-winning IBM software with industry specific
assets and best practices specifically configured to meet our clients’ unique challenges and needs. The
IBM Government Industry Framework is a strategic software platform for implementing smarter
government solutions focused on improving citizen services, increasing transparency, enhancing civilian
safety and security, and helping achieve a green and sustainable environment.
The framework approach offers solution implementations the opportunity to accelerate time-to-value
and payback while lowering a project's cost and risk. This is because the implementations leverage
tested architectures and patterns, software components are reused across projects, and industry
specific software extensions and accelerators in the framework can be leveraged.

Business Planning and Alignment
IBM offers a comprehensive portfolio of business planning and analysis solutions designed to enable
better enterprise planning and ensure execution against specific business requirements. IBM solutions
help organizations make faster, better-informed strategic and tactical decisions, prioritize IT investments
to support business goals, improve risk management of organizational transformation, and turn strategy
into execution with measurable results.
Our planning solutions are founded on actionable enterprise architecture management to connect
business and technology capabilities through cohesive and dynamic blueprints and Portfolio
management capabilities help you collaboratively define software and product investment roadmaps to
enhance business objectives and processes while measure and manage the financial and strategic risks.

Business Process Management
A dynamic business network requires business process management (BPM) with process modelling and
monitoring, service-oriented architecture (SOA) and dynamic application infrastructure. IBM’s BPM
powered by SMART SOA™ includes all three and also these extended value capabilities for intelligence
and agility: complex events processing; analytics; collaboration; and rules, content/document and Web
services registry/repository management. IBM’s “foundational offerings” include IBM WebSphere®
Dynamic Process Edition for large scale, high-integrity dynamic process integration and automation
across the enterprise; IBM WebSphere Lombardi Edition for rapid process implementation with project
team collaboration; and IBM FileNet® Business Process Manager for content management, workflow
and collaboration.

Business Analytics
Whether town council or national agency, government organizations all face similar challenges. Guided
by their mission, they need to optimize services and programs for citizens while demonstrating good
governance. And they need to do this within budget in a climate of shrinking resources.
Thousands of public sector organizations worldwide rely on IBM Business Analytics software and
services to deliver smarter government. Business intelligence software lets you consolidate, track,
analyze and report on all relevant data. Financial performance and strategy management software
provides planning, budgeting and consolidation for linking strategy to dynamic plans and targets.
Advanced analytics software gives you the insight you need to predict trends and respond at the point
of impact. And analytic applications give you a quick start with a particular issue or domain.

Integrated Service Management
Integrated Service Management enables service innovation by providing Visibility Control Automation
across business infrastructure and the end-to-end service chain. Only Integrated Service Management
provides the software, systems, best practices and expertise needed to manage infrastructure, people
and processes—across the entire service chain—in the data center, across design and delivery, and
tailored for specific industry requirements. With Integrated Service Management you gain the Visibility
Control Automation needed to deliver quality services, manage risk and compliance, and accelerate
business growth.




© MWD Advisors 2011                                                                                    RAL14032-USEN-00

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Delivering stakeholder centric services: from strategy to execution

  • 1. mwd advisors Delivering stakeholder-centric services: from strategy to execution Neil Ward-Dutton February 2011 In today‟s world, stakeholders‟ expectations of openness, responsiveness and personalisation are far more informed and more stringent than they were even just a few years ago. At the same time governments‟ interest in public-private sector collaborations has become more pronounced, and so the networks of players required to work together in order to deliver services are more complex. To cap it all, business and technology are also becoming ever more tightly intertwined. To be efficient and effective in this environment – to meet stakeholders‟ expectations while at the same time working with the constraints of tough financial environments – public agencies have to focus on how they can deliver services from a stakeholder-centric point of view (in some territories this is known as „citizen-centric‟ service delivery). Agencies have to use this perspective to drive the end-to-end integration of operations and the sharing of underpinning capabilities across teams, departments, and sometimes agencies. This report lays out the challenges that arise during a transformation to stakeholder-centric or citizen-centric service delivery, and highlights the crucial roles that key business and IT capabilities will play for any public sector organisation navigating those challenges. MWD Advisors is a specialist IT advisory firm which focuses exclusively on issues concerning IT- business alignment. We use our significant industry experience, acknowledged expertise, and a flexible approach to advise businesses on IT architecture, integration, management, organisation and culture. www.mwdadvisors.com © MWD Advisors 2011 This paper has been sponsored by IBM
  • 2. Delivering stakeholder-centric services: from strategy to execution 2 Summary Initial moves to deliver ‘e- As agencies began to embark on the first „e-Government‟ government’ have had mixed initiatives in the early 2000s, it soon became apparent that success, and citizens have not although taking existing service offerings and creating web benefited overall front-ends for those services might in some cases lower delivery costs, the transparency of the web meant that it also had the unfortunate side-effect of shining a very strong torchlight onto the ways in which services were just not „joined up‟. A move to stakeholder-centric The simple transformations that took place in early e- service delivery represents a new government implementations were driven by individual phase of e-government which is teams, departments and agencies with the very best of truly transformational, and as a intentions. The poor outcomes that frequently resulted were result it requires deep a consequence of entirely natural, but “inside-out” thinking. commitment The delivery of true stakeholder-centric services (in some territories, these are known as citizen-centric services) can only come about with a high degree of co-ordination between agencies to ensure that relevant information is shared in an effective and timely manner. This level of entanglement between shared capabilities and front-line service delivery is a significant step beyond the kinds of back- office service (such as HR) sharing that we see across many government agencies. What‟s happening here is a second, deeper wave of e- government transformation – service transformation – which shifts the focus beyond cost avoidance “at the edge” of government, to fundamental cost restructuring “at the core” of government by changing the mechanics of how capabilities are developed and delivered as front-line services. Some key capabilities are required In making the shift to stakeholder-centric service delivery, to support stakeholder-centric four challenges – legacy systems, existing incentives and service transformation: Business targets, lack of governance over investment in new systems Process Management (BPM), and processes, and lack of clarity in responsibility for ultimate supported by business analytics; delivery of change – can only be overcome with the smart, and Enterprise Architecture and connected development and application of two key IT and Business Planning. All need to be business capabilities. The first is the ability to analyse the open and collaborative performance of work that currently gets done in the delivery of services to stakeholders; and then analyse how this work should best be executed and managed. This capability is often referred to as Business Process Management (BPM), and relies on effective use of business analytics. The second is the ability to build a „big picture‟ view of how a stakeholder-centric service delivery strategy needs to be supported by particular business and technology capabilities, how key business processes align with those capabilities, and how IT should be marshalled to support the capabilities in different ways. This capability is often referred to Enterprise Architecture (EA) and Business Planning. It will also help you set and enforce policies that drive IT project investment to meet the needs of your transformation strategy. © MWD Advisors 2011
  • 3. Delivering stakeholder-centric services: from strategy to execution 3 The changing environment for public sector agencies In today‟s world, stakeholders‟ expectations of openness, responsiveness and personalisation are far more informed and more stringent than they were even just a few years ago. At the same time governments‟ interest in public-private sector collaborations has become more pronounced, and so the networks of players required to work together in order to deliver services are more complex. To cap it all, business and technology are also becoming ever more tightly intertwined. To be efficient and effective in this environment – to meet stakeholders‟ expectations while at the same time working with the constraints of tough financial environments – public agencies have to focus on how they can deliver services from a stakeholder-centric (sometimes called „citizen-centric‟) point of view, and use this perspective to drive the end-to-end integration of operations and the sharing of underpinning capabilities across teams, departments, and sometimes agencies. We see recognition of this time and again in studies of IT trends and investment plans which consistently place the transition to stakeholder-centric services, enabled by business process transformation and performance management specifically, as one of the highest priorities of senior public sector executives in technical and non-technical roles alike. What‟s really going on – what is it that‟s driving the pressures that we see affecting business and IT leaders across organisations of all shapes and sizes and differing geographies? There are three large- scale socio-economic forces in play:  Globalisation. Increasingly global customer bases, partner networks, supplier networks, and competition, are forcing companies to become leaner and more flexible, focus on what makes them different, and find new ways to deliver sustainable competitive advantage. Public sector organisations feel the benefits of globalisation through increased outsourcing options.  The drive for transparency. Regulation is sometimes forced on private sector organisations by governments, but increasingly industry bodies and individual organisations are voluntarily moving to provide more information about their processes, the resources they use and the ways in which they interact with their ecosystems and environments. Public sector organisations feel the pressure of transparency as stakeholders are starting to demand more openness regarding governance, the mechanics of democracy, service performance indicators, and so on; and as regulations (such as those imposed by freedom-of-information legislation) make themselves felt.  Increasingly smart, connected populations. The rapidly evolving and maturing Worldwide Web is just one outcome of the explosion in always-on, global mass communication connections. Individuals and organisations are increasingly looking to the online world for solutions to problems and opportunities before looking to the offline world. In this environment resources can feasibly be located anywhere: it is possible to consider that “the world is flat” (as New York Times columnist Thomas Friedman says). Public sector organisations are increasingly finding that „digital natives‟ have demanding expectations regarding the availability of services, as well as the ability of service providers to personalise service delivery. © MWD Advisors 2011
  • 4. Delivering stakeholder-centric services: from strategy to execution 4 Service-orienting the public sector agency Reacting to a changing environment Management teams and consultants to government agencies and other public sector organisations have been pursuing ways of reacting to this changing operating environment for many years – the main change under consideration being the rise of the Internet. In particular, initially at least, the focus has been on looking for ways to lower costs by delivering services to stakeholders over the web. A number of studies have shown that if a transaction can be carried out via a website rather than face- to-face with a customer services representative, the cost can be just 2% of the face-to-face cost (telephone-based transactions are estimated to cost 50% of face-to-face transactions). Clearly this represents a compelling opportunity to investigate. However as agencies began to embark on „e-Government‟ initiatives in the early 2000s, it soon became apparent that although taking existing service offerings and creating web front-ends for those services might in some cases lower delivery costs, the transparency of the web meant that it also had the unfortunate side-effect of shining a very strong torchlight onto the ways in which services and information were just not „joined up‟. When service interactions with stakeholders are enabled by phone and mail, the complete structure of an overall service portfolio is obscured from the stakeholder; it‟s either hidden behind the knowledge of stakeholder-facing customer service personnel or it‟s hidden completely – with knowledge of available services being passed around communities by word-of-mouth. When the same services are made transparently available via the Web, the issues are there for all to see. This disconnect is often all the more obvious where existing face-to-face and phone-based alternatives remain. The deeper opportunity and challenge facing public agencies following initial forays into the use of the web – using the transparency of the web as a catalyst for transforming public sector services fundamentally – has been part of government agendas for some years now. One example of a catalyst for change was the UK‟s Varney Report1; and in the US, of course, the E-Government Act of 20022 drove a mandate for the creation of offices and programmes to drive stakeholder-centric service delivery within and across federal, state and local agencies. Across all these mandates for transformation, there is one common high-level element of change discussed: the shaping of service definition and delivery so that it is truly stakeholder-centric – we explore this idea below. Additionally, there are two important implications for stakeholder-centric service delivery, which we also explore below: firstly, the integration of front-line service delivery capabilities so they can be shared across agencies and departments; and secondly, increased collaboration between public agencies and departments and external organisations. The move to stakeholder-centric services and outside-in thinking The simple “web transformations” that took place in early e-goverment implementations were driven by individual teams, departments and agencies with the very best of intentions. However the outcome of a lot of this early work wasn‟t just the duplication of services to stakeholders, which could be confusing for them; it was also the duplication of requests for information from stakeholders – which typically leads not only to confusion but frustration. This outcome was a consequence of entirely natural, but “inside-out” thinking: each agency and department, acting on its own initiative, considered its own needs and capabilities as the foundation scope when analysing how it could present its services and capabilities to the outside world. 1 Service Transformation: A Better Service for Citizens and Businesses, a Better Deal for Taxpayers – Varney Report to UK Government, 2007 2 http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_bills&docid=f:h2458enr.txt.pdf © MWD Advisors 2011
  • 5. Delivering stakeholder-centric services: from strategy to execution 5 The move to re-imagine service delivery, taking the stakeholder‟s perspective and needs as the starting point for service analysis and design, is the converse of the approach that‟s so often been taken in the past. Increasingly this approach is referred to as the design and delivery of “stakeholder- centric services”. Its importance is not tied 100% to the drive to deepen e-government commitments; making services stakeholder-centric is a way of optimising cost and effort, regardless of the service delivery channels used. Co-ordinated service delivery in support of life events The most commonly-explored aspect of stakeholder-centric service design efforts is perhaps the definition of groups of services that need to be delivered in a highly co-ordinated way to support “life events” shared by all citizens (such as birth, death) or most citizens (marriage, relocation). These life events may lead to requirements for multiple services from government agencies, particularly if the citizens in question are in receipt of benefit of some kind (unemployment, disability), which may in many cases need to be delivered by separate agencies or departments. Figure 1 calls out a couple of examples. Figure 1: Example life events and their associated services and service owners Example life event Service Department Relocation Local taxes Tax registration Change of address Electoral administration Benefits Benefits (housing, registration child, etc) School enrolment Education Death Notice Tax Notice Benefits (incapacity, housing, etc) Notice Electoral administration An approach to service delivery which is co-ordinated around the needs of stakeholders quickly highlights how deep integration between agencies – some central, some local – becomes paramount. Beyond co-ordinated delivery: service personalisation and improvement Other important tenets of stakeholder-centric service design include:  Service personalisation – presenting services to stakeholders in ways and through channels that match their communication, accessibility and cultural preferences and needs.  Open service improvement – displaying feedback from stakeholders openly, and aggregating feedback information to improve services; then openly communicating with stakeholders about changes and improvements made. © MWD Advisors 2011
  • 6. Delivering stakeholder-centric services: from strategy to execution 6 Deeper use of shared services as a natural consequence Stakeholder-centric service delivery sounds like a very attractive proposition, but as we‟ve already seen yesterday‟s “inside-out” thinking – with each agency and department pursuing its own agenda based purely on its own scope of operation – will not get us to a stakeholder-centric future. The delivery of true stakeholder-centric services can only come about with, at the very least, a high degree of co-ordination between agencies to ensure that relevant information – relating to stakeholders‟ identities, addresses, entitlements and so on – is shared in an effective and timely manner. However where activities and capabilities need to be tightly co-ordinated across agencies and departments, there are likely to be opportunities to go further than co-ordination – why not examine these scenarios as opportunities to integrate and consolidate capabilities, creating “shared services” units that can deliver one set of capabilities to multiple internal customers? Of course, examples of the shift to back-office shared services delivery abound. However, most examples so far are focused on sharing of finance, human resources and Information and Communications Technology (ICT) infrastructure services – generic business support functions, in other words. What we‟re talking about here is different: it‟s about the sharing of information and application services that are core to how front-line services are delivered to stakeholders. This level of intimacy and entanglement between shared capability and front-line service delivery is a significant step beyond the kinds of back-office service sharing that we see across many governments, where those services that are shared can be easily considered logically separate, at least, from front-line service delivery. In the UK at the time of writing, open debate about a proposed “G-Cloud3” infrastructure and a parallel “app store”, providing shared access to common IT capabilities, is placing this topic under active consideration – but there is a long way to go. What‟s happening here is a second, deeper wave of e-government transformation – moving from cost avoidance “at the edge” of government by changing the basic mechanics of stakeholder interactions, to fundamental cost restructuring “at the core” of government by changing the much deeper mechanics of how capabilities are developed and delivered as front-line services. Figure 2: A second wave of deeper e-goverment transformation Service Service presentation presentation Front-line Front-line service service delivery delivery Corporate Corporate services services First-generation e-government Second-generation e-government transformation: focus on transformation: focus on front-line service presentation, corporate service delivery sharing, external service sharing collaboration A second wave of e-government transformation is now needed, to shift beyond transformation at the edge and shared services in the back office (i.e. corporate functions) towards transformation / sharing in the front office. 3 http://groups.google.com/group/cloudforum/msg/dc1b72e787ebeae3?pli=1 © MWD Advisors 2011
  • 7. Delivering stakeholder-centric services: from strategy to execution 7 Another outcome: readiness for external collaboration There‟s one other important implication of a shift to stakeholder-centric service-orientation of a public agency, and that‟s a need to embrace closer and more timely, interactive collaboration with external organisations, be they from the private sector or the third (voluntary/charity) sector. Requirements that spring from service personalisation commitments as outlined above mean that it‟s increasingly likely, particularly in countries where cross-sector partnerships and outsourcing arrangements are aggressively pursued, that agencies and departments will have to be able to collaborate with third parties in order to deliver services effectively. Public sector agencies and departments have to find secure and structured, yet also flexible and timely, ways to share information and collaborate on service case work and processes across organisational boundaries. Outside-in service design should drive vertical organisations to manage horizontal operation end-to-end So what does all this – stakeholder-centric service delivery, creation of front-office shared services, external collaboration with third parties – mean in practical terms? What do public agencies and departments have to do in order to move from the current state to a future state where these goals are attained? There are many changes to be made of course, but at the highest level the key characterisation of the transformation that must take place is that it involves the creation of a set of practices and policies to ensure that work is “joined up” horizontally across the organisation – so that end-to-end work is optimised from the perspective of the stakeholder and the service that is delivered to them, rather than being optimised from a functional, team or department perspective. This shift isn‟t about replacing functional (vertical) organisation with horizontal organisation that‟s 100% focused on service-driven, end-to-end process. Rather, it‟s about overlaying a structure that aims to drive end-to-end thinking on the existing functional organisation, and putting capabilities in place to enable the two structures to work together in harmony. Of course, such a fundamental change in the way an agency is directed and managed can‟t simply be a case of designing the change, and then assuming the organisation will make the necessary adjustments. The difficulty of transitioning to a „horizontal‟ process-oriented management model is well- documented. At this point, however, agencies can no longer avoid the decision. This is a transformation that has to be made. © MWD Advisors 2011
  • 8. Delivering stakeholder-centric services: from strategy to execution 8 Taking transformation from strategy to execution: why is the path so complicated? It‟s not only public-sector organisations which are embarking on this kind of transformation; as we outlined in the introduction to this paper, organisations across public and private sectors are wrestling with the forces of globalisation, the pressure of transparency and the opportunities associated with smart, connected individuals and markets. Large private sector organisations have for a few years now been heavily engaged in business transformations that seek to refocus customer services efforts as well as consolidating capabilities and services at their core – and using this consolidation to power more business process consistency and effectiveness, and improve customer service as a result. No organisation – whether public or private sector – ever finds this kind of transformation easy; it involves big changes to systems, information and processes, and has big impacts on people. At the moment, of course, there is a very significantly complicating factor – and that‟s the fact that shrinking government budgets mean that prioritising transformation efforts can become complicated. Beyond this, though, there are typically four reasons that organisations struggle to take transformational programmes and strategies defined at executive level, and make them operational:  Legacy systems.  Existing incentives and targets.  Lack of governance over investment in new systems, processes.  Lack of clarity in responsibility for ultimate delivery of change. We explain each of these in a little more detail below. Legacy systems: the weight of history The most obvious impediment to transforming a public agency to enable stakeholder-centric services and all the things that go along with it is the inertia created by legacy systems and ways of working. Of course there‟s the „drag‟ created by long-lived systems that are difficult to change to fit new requirements – either because the technology isn‟t adaptable enough, or because the skills no longer exist in the organisation. However, simply „ripping and replacing‟ such systems is likely to be impractical – you have to find ways to extend and improve them without incurring major costs or risks. But there‟s also a challenge that comes from the dependencies that can exist between operational systems; particularly where those dependencies reflect a functional, inside-out approach. As IT has become more a “part of the furniture” within organisations, and as IT systems have become increasingly interconnected and interdependent, making a change to one system can have unintended consequences for other systems which depend on it in some way. For many organisations the links between older systems can be as poorly documented as the systems themselves; this is a particular risk in some parts of the public sector, which has a higher level of reliance on legacy systems than many industries in the private sector. Existing incentives: pulling the wrong way Individual departments in organisations are specialised things. They‟ve got that way because in many cases, specialisation is vital to success. Business teams have specialised skills in finance, purchasing or marketing for example, whereas technology teams have specialised skills in systems administration or software development. But when specialised teams become firm organisational units, they also become budget holders with their own specialised incentives and targets. Managers become focused on driving for optimum performance in their own area, often to the exclusion of larger concerns. As management guru Peter Drucker famously said: what gets measured gets managed. © MWD Advisors 2011
  • 9. Delivering stakeholder-centric services: from strategy to execution 9 Of course this isn‟t a problem in itself, but if your organisation is trying to transform itself to consider end-to-end, horizontal efficiency and effectiveness, individual focuses on area-specific performances may actually work against the transformation. Lack of governance over investment in new systems, processes The problem with a laser focus on operational performance within departments is that one person‟s „laser focus‟ is another person‟s „tunnel vision‟. Left to their own devices individual departments within agencies are likely to carry on using their own budgets to achieve their own „local‟ goals rather than considering any bigger-picture implications of a large-scale transformation. A stakeholder-centric services transformation and the associated moves towards shared front-office services and open collaboration require a number of systems and process investments, most of which are going to need contributions – in terms of money and resources – from multiple teams and departments. Quite apart from helping to resource collaborative endeavours across an agency, there‟s also the issue that a stakeholder-centric services transformation will probably also need to spawn a number of local projects with departmental scope which will need to be prioritised appropriately. Without a governance framework in place that‟s designed to help realise the goals of such a horizontally-focused transformation that cuts across departmental boundaries, together with senior executive sponsorship of that framework, organisations find it very difficult to sustain any kind of transformation momentum. In the public sector, the creation of a robust governance framework is particularly important because the level for ongoing change in requirements (particularly, but not exclusively, concerned with implementing changing legislation) can be so great. Without governance frameworks that can impose certain approaches on the procurement and implementation of systems, opportunities for sustainable, flexible solutions are often missed. Confusion over responsibility for ultimate delivery of change Public sector agencies are typically highly dependent on external resources for development and delivery of IT systems. Outsourcing activities are notoriously complicated to manage even when those services being outsourced are focused on ongoing operations (such as IT administration, customer services, payroll, and so on) but in the context of outsourced supply of services to assist with transformations, the complications are compounded. For example: although an external provider may be able to develop and deploy new IT systems or changes to existing systems to meet a set of predefined requirements, it‟s very unlikely they‟ll also have responsibility for making sure that people in your organisation have the skills and inclination to work within the changed environment in the right way. Change management associated with IT investment is something the customer has to be very focused on. Cases abound where public agencies have employed contractors to implement new systems as foundations for business process improvements, but where responsibility for managing the organisational change around those improvements has not been clearly assigned or communicated. These situations always end badly. © MWD Advisors 2011
  • 10. Delivering stakeholder-centric services: from strategy to execution 10 Making the shift: key capabilities you must pull together In making the transformation to stakeholder-centric service delivery, the four challenges highlighted above – legacy systems, existing incentives and targets, lack of governance over investment in new systems and processes, and lack of clarity in responsibility for ultimate delivery of change – can only be overcome with the smart, connected development and application of some key IT and business capabilities. They are:  Business process management (BPM), supported by business analytics. These capabilities will help you analyse the work that currently gets done in the delivery of services to stakeholders; and then analyse opportunities for improvement – drawing out how this work should best be executed and managed as part of end-to-end processes. A pair of BPM and business analytics capabilities will help you plan calculated improvements – to eliminate risk and cost, speed service delivery and improve stakeholder satisfaction with personalised services. They‟ll also help you prioritise changes in a world where overall resources are increasingly constrained – helping you understand where the greatest opportunities for improvement, at the lowest cost, are located.  Agile, actionable enterprise architecture (EA) and business planning. This capability will help you build a „big picture‟ view of how a stakeholder-centric service delivery strategy needs to be supported by particular business and technology capabilities, how key business processes align with those capabilities, and how IT should be marshalled to support the capabilities in different ways, within the current operating and financial constraints that exist. This capability will also help you take the „big picture‟ created by EA work and make it real, by setting and enforcing policies that drive IT project investment to meet the needs of your transformation strategy – and helping you clarify responsibilities for managing the delivery and acceptance of transformation projects. These capabilities are intertwined and interdependent so it‟s a little difficult to discuss them in any particular order, but below we dig into each of them in turn. A common theme: building bridges across the IT-business divide It‟s perhaps too easy to place the blame for today‟s challenges in translating strategy into execution at the door of business executives – and sympathising exclusively with the poor, put-upon IT teams which have to cope with increasingly unreasonable demands from business departments. But this isn‟t the case. The truth is that both business and IT departments have historically been complicit in creating the headaches that many organisations are saddled with today. Much of the time, strategic IT investment mistakes turn out to be masked by what seem at the time to be tactical successes. And these mistakes are made not as the result of real negligence, but as the result of IT and business people failing to work together to drive consensus that consideration of a bigger picture is necessary. As the IT industry has matured over time, and as IT practice has matured within organisations, we‟ve seen attitudes and approaches change – slowly. At first, IT organisations were managing IT investments for their own sake. There was little in the way of a real relationship between those responsible for managing IT investments, and those making the investments (and receiving the benefits). Then, eventually, IT organisations began working to manage IT investments for business. The relationship between investment makers and investment managers was one of customer-supplier. Truth be told, most organisations are still in this mode of working. But this will not do. Now, the baseline that we all have to aspire to is managing IT investments within business. © MWD Advisors 2011
  • 11. Delivering stakeholder-centric services: from strategy to execution 11 Business Process Management (BPM) and business analytics An effective Business Process Management (BPM) capability will deliver you the analysis and design underpinning for your transformation to stakeholder-centric service delivery; it should also help set the strategic context and mandate for you to re-factor front-office services and drive towards integration and sharing of capabilities to drive down costs and maximise citizen satisfaction. BPM, combined with business analytics tools, can also create an IT-based platform for automating and then monitoring and optimising the integrated business processes that will power your stakeholder-centric services. By itself, a BPM initiative supported by business analytics will not deliver you the transformation you need; but it forms the design core around which Enterprise Architecture, Portfolio Management and stakeholder engagement need to fit. BPM: improving the process of process improvement The practice of business process improvement has been part of the business and IT management landscape in one form or another since the Industrial Revolution; and BPM specifically as an approach to process improvement has been with us for over a decade. Against this backdrop, it‟s sensible to ask how BPM specifically differs from earlier process improvement methods and tools. One answer is to say that a key differentiator is BPM‟s central focus on enabling continuous change and improvement. Another and more enlightening answer, though, is that BPM is fundamentally about “improving the process of process improvement”. For a BPM initiative to really deliver value, it has to pull together a number of process improvement capabilities and skills that probably already exist in your organisation in new, more effective ways. BPM is about more than agile, iterative system development To really deliver value, BPM requires you to develop and marshal a group of practitioners from multiple IT and business disciplines, and give them access to some specialised tools and practices. Because BPM initiatives often involve the development and delivery of specialised „process applications‟ that coordinate and track work across teams, departments and existing applications and systems, it can be tempting to think of BPM as simply a flavour of software development or application integration that encourages agile, iterative delivery of application capabilities; however this is not the case. There are two main reasons. The first reason is that in order to improve the process of process improvement, effective BPM practice embraces the whole lifecycle of process management: from initial discovery and analysis of business process improvement opportunities, leveraging business analytics insights, through detailed process design, development of process applications, deployment of those applications, process monitoring, and optimisation. BPM works at a higher level than simple application development, and links intimately into issues of business change management. Management of performance and optimisation – not of a process application, but of the business process that the application helps to improve – are absolutely central to the practice of BPM, and this has not traditionally been a concern for those focused on business software development. The second reason is that looking specifically at the software that‟s developed and deployed as part of BPM projects, it‟s actually quite different from „traditional‟ application software. Today‟s process applications aren‟t like the workflow applications of old which were monolithic, hard-coded interpretations of strict rules; instead, they provide collections of software tools to help process practitioners (customer service personnel, HR personnel, benefits case workers, service delivery managers, and so on) with assistance and guidance to complete case and process work. These applications can be highly flexible and dynamic, and in many implementations their structure and behaviour can be extensively reconfigured by business analysts or process administrators. © MWD Advisors 2011
  • 12. Delivering stakeholder-centric services: from strategy to execution 12 Driving efficiency, supporting service promises and personalisation Much of the available BPM research literature – driven perhaps by the high visibility of the process improvement approaches of Six Sigma4 and Lean5 – focuses primarily on process efficiency and quality as being the sources of BPM‟s value. However there‟s more to BPM‟s value than that. Of course, effective application of BPM, supported by effective business analytics, does drive operational efficiency and quality – and thus enables public sector organisations to pull people and systems together across traditional boundaries to efficiently and effectively deliver services to stakeholders. By providing tools and techniques to help organisations discover current processes, measure their performance, analyse opportunities for improvement, prioritise opportunities bearing in mind cost and resource constraints, and then standardise or even automate processes, BPM initiatives can reduce waste and improve work efficiency – either increasing the amount of work that a team can do, or enabling the same amount of work to be done with a smaller team. BPM can also help public agencies take a step further, though, and enable organisations to make clear service commitments to stakeholders; and also deliver services with unprecedented levels of personalisation – „taking the service to the stakeholder‟. By integrating disparate business systems, improving the way that teams work, reducing latency, and making it easier to change the way that processes are carried out, BPM initiatives provide great foundations for agencies looking to improve the speed with which services are created and deployed. By introducing performance measurement frameworks, BPM initiatives can also create supporting environments for organisations wanting to drive satisfaction and transparency by offering services that have guaranteed quality levels – for example, offering (in the case of a hypothetical benefits office) a guarantee that all enquiries will receive an initial response within one day. A BPM technology platform will also capture the identity of every stakeholder interacting with a service and make that an integral part of the context of a business process instance or case. Through this feature, agencies receive the ability to mix-and-match stakeholder service interactions across channels (web, call centre, physical branch offices), case work teams, team locations and worker shifts. This means that individual stakeholders can make much more flexible choices about when, where and how they interact with public agencies; they experience true customer service. Critical success factors Many organisations pursue business process improvement exercises with the tools and approaches that they‟ve used for years: indeed our own research shows that the majority of organisations are still in this mode of working. In a recent major market survey carried out by MWD Advisors, for example, the vast majority of respondents (over 90%) cited tools like Microsoft PowerPoint and Visio as their primary process modelling tools; and cite „traditional‟ approaches to application development and delivery as being the principal ways that process improvements are implemented. There‟s no doubt that you can still get process improvements using these tools and approaches: but you won‟t get the full value that BPM can offer. Technology alone won‟t deliver you an effective BPM implementation. However there are things that the right technology can do which will make delivering business value from your BPM work much easier:  A collaborative discovery and design space. A shared, easy-to-access and easy-to-use graphical environment that BPM stakeholders of all skill levels can use to explore process problems and opportunities, and link them to the organisation‟s strategic context is a valuable tool for boosting stakeholder engagement and helping to ensure and maintain buy-in. The best tools place graphical models at the heart of specification work, and as well as providing requirements documentation, these models also form the foundation for the logic within the running system that‟s eventually created to manage work. 4 http://asq.org/learn-about-quality/six-sigma/overview/overview.html 5 http://asq.org/learn-about-quality/lean/overview/overview.html © MWD Advisors 2011
  • 13. Delivering stakeholder-centric services: from strategy to execution 13  Role-based, flexible interfaces for participants, administrators and stakeholders. Once models are taken through design and development and translated into a running software system, the runtime environment should be flexible enough to deliver any mixture of work management, administration, monitoring and configuration features to any stakeholder – within a role-based framework. Flexibility in delivering “content” and functionality to particular people and groups is vital, because every organisation has unique requirements.  Rapid transferability of models through the process lifecycle. It‟s not enough to have design tools that allow process analysts to map out business processes in detail if creating a running process then requires multiple further complicated steps. It‟s also crucial to be able to take those same design models and use them as the context for operational monitoring tools: only by showing operational health and performance in the context of business-meaningful processes is it possible to deliver metrics that can quickly deliver feedback and enable further improvement.  Well-bounded integration and other technical activities. BPM tools can be great at translating graphical process models into running process logic, but „finished process applications‟ need more than just process logic – and it‟s unreasonable to expect that any tool will enable complete software applications to be delivered without someone having to do some technical work. BPM technology offerings should help you draw clear boundaries around technical work (such as integrating processes with back-end resources and systems) – clearly separating configuration work that can be done by non-technical people (possibly business stakeholders, in the case of business rules and policies) from work that has to be done by technical specialists. BPM technology that can work seamlessly with integration platforms like Enterprise Service Buses (ESBs) have a great advantage here.  A foundation for governance and change management. Many BPM tools can enable customers to build new process applications quickly; but in order to support the value proposition of BPM over the long term, tools that can manage development assets centrally, with easy-to-use change management facilities that help co-ordinate the work of teams and highlight dependencies between components are essential. Agile, actionable Enterprise Architecture and Business Planning An effective Enterprise Architecture (EA) and Business Planning capability is a way to bring IT and business strategy together, and will help you build a „big picture‟ view of how stakeholder-centric service delivery needs to be supported by particular business and technology capabilities, how key business processes align with those capabilities, and how IT should be marshalled to support the capabilities in different ways. Crucially, an EA and Business Planning capability should provide important context for the core „engine‟ of your transformation – your BPM initiative – by linking your BPM work to both business and IT strategy. These linkages provided by EA and Business Planning are vital because without them, BPM initiatives that start off with clear objectives and strong executive support can quickly lose momentum. Business and IT strategies change, and the role of EA and Business Planning in the transformation to stakeholder-centric service delivery is to make sure that those changes don‟t make transformation projects that are in-flight irrelevant. It‟s important, though, that the EA and Business Planning practice you create and leverage has the right kinds of priorities. A brief overview of Enterprise Architecture Enterprise Architecture (EA) is a business-IT capability that large organisations have used for decades to bridge their business and IT strategies, and many large public- and private-sector organisations have an EA programme in place, staffed by dedicated roles and personnel. Despite that, there‟s still considerable industry debate about the EA term and what it refers to, its scope, its value and the best approach to take. © MWD Advisors 2011
  • 14. Delivering stakeholder-centric services: from strategy to execution 14 The US National Institutes of Health (NIH) makes one of the clearest attempts at a definition of EA to be found in the public sector: “Enterprise architecture is a comprehensive framework used to manage and align an organization's Information Technology (IT) assets, people, operations, and projects with its operational characteristics. In other words, the enterprise architecture defines how information and technology will support the business operations and provide benefit for the business. It illustrates the organization’s core mission, each component critical to performing that mission, and how each of these components is interrelated.” Most practitioners today agree that EA isn‟t purely an architecture activity focused on the planning of IT systems, but an activity that seeks to map and connect models of business activities and capabilities with definitions of essential enterprise information and IT systems and capabilities. Generally speaking, today‟s EA frameworks (specifications for carrying out modelling work and for classifying and relating models) have also coalesced around four different types or levels of modelling: business architecture, information architecture, application architecture and technology architecture. Although different organisations use different frameworks, and a sizeable portion use some kind of „home-baked‟ framework; however in the public sector we see more and more firm guidance on the use of particular frameworks (the use of the Federal Enterprise Architecture Framework, FEAF 6, is a good example). There is one major area of practical uncertainty that‟s separate from a choice of framework, though, and simply put it boils down to a short question: with EA, what‟s more important – the deliverable artefacts (the models) or the process by which you arrive at those deliverables? This is where the idea of „Agile EA‟ comes in. The value of an agile approach At the dawn of EA as a recognised discipline, the vast majority of research and practical activity in the area was focused on the act of documentation – the creation of static and stand-alone models that described „as-is‟ states of collections of IT systems, and perhaps models that described „to-be‟ states based on EA practitioners‟ understanding of transformation programmes. This kind of activity represents a sizeable portion of the EA work still that‟s done in the public sector today. This is perhaps not entirely surprising, given that EA as a discipline originally grew from large-scale software engineering methodologies that were popular in the 1970s and 1980s – when business and technology change happened at a pace that was glacial compared to that of today. In the last few years it‟s become clear that the pace of business and IT change means that a documentation-focused EA effort – where what‟s measured and appreciated is the completeness of the models as descriptions of enterprise IT estates – is unlikely to add very much value at all. The danger of EA irrelevance is compounded by the fact that when EA teams focus exclusively on the quality and completeness of documentation, they can end up working in insular teams, isolated from other groups. An agile approach to EA turns this documentation-focused approach on its head, and sees the process of discovering and analysing an organisation‟s structure, strategy, dynamics, priorities and capabilities – when it‟s done through discussion with internal and external stakeholders, rather than in isolation – as more important than the completeness of the ultimate record of that understanding. In agile approaches to EA it‟s conversations with stakeholders that are the focus; Agile EA is first and foremost a process of learning from and influencing stakeholders to make better decisions about their planned investments and projects. It‟s particularly critical in the public sector because of the wide variety and diversity of stakeholders that exist. Of course models and presentations of those models are a key tool in having those all-important conversations with stakeholders (every conversation needs a common language, after all), and the models help provide that important context for BPM and other transformation work; but the models are a means to an end rather than the end itself. 6 www.cio.gov/documents/fedarch1.pdf © MWD Advisors 2011
  • 15. Delivering stakeholder-centric services: from strategy to execution 15 The integration of Portfolio Management with EA practice One of the primary ways that EA work needs to have an impact, as mentioned above, is in highlighting how “strategy needs to be supported by particular business and technology capabilities ... and how IT should be marshalled to support the capabilities in different ways”. It‟s all very well to highlight these things, but how can you take action based on high-level guidance? The answer is to extend EA practice with aspects of portfolio management, and use the result to guide individual project and operations investments. Portfolio management is an approach to investment management that‟s very well established in general business circles; but its application to IT investment is still comparatively new – particularly in the public sector. In general, portfolio management practice seeks to analyse a set of investments and optimise them (by buying, selling) according to stated goals. In the context of IT projects and services, goals are typically stated in terms of costs, business value, and risk; optimisations are expressed in terms of accelerating, refocusing, decelerating, or killing projects. Portfolio management is absolutely crucial here because the resources available to any organisation are finite (and of course, becoming more constrained); portfolio management practice helps senior IT decision-makers understand how they can balance and prioritise business demand to achieve the „best outcome‟. In the context of a transformation to stakeholder-centric service delivery the combination of EA with portfolio management practice – to create EA practice which is able to inform and drive business planning as well as tune the details of IT investments – is crucial. Without links to the processes and organisational bodies that are tasked with green-lighting projects and maintaining project oversight, EA may be agile; but it will not be truly actionable. Critical success factors There are five factors to consider if you want to build an EA and Business Planning practice that is agile and actionable, and that will help you create and maintain links between your BPM work and business and IT strategy efforts:  Make EA a formal practice. It‟s not good enough to have EA as part of your organisation‟s agenda that you „get around to when you have time‟; you need to have a formal EA practice in place with established roles and a named leader. It‟s not essential that all or indeed any members of your EA practice are working on EA full-time; but EA work needs to be a formalised part of their responsibilities. What‟s more, you can‟t outsource EA work: in fact, when you outsource a significant proportion of your IT delivery work, having an EA capability becomes even more important because it helps maintain the business context for that IT outsourcing work and keep outsourcing providers‟ services aligned with your organisation‟s overall needs.  Use EA to reinforce the value of BPM to business and IT stakeholders. Don‟t set up EA practice so that it can exist as an isolated, inward-facing activity: specify its mission in the context of linking your transformation projects to business and IT strategies – and providing the context for your core BPM initiative.  Measure the performance of your EA practice by asking its customers. You have to track progress of your EA initiative so you can assess its value and appraise and reward those people working on EA – but be sure to use externally-facing measures to track progress. Centre your measurement of the value of EA practice not on documentation created, but on the opinions of project teams and stakeholders with which the EA team has worked. Do they feel that the EA team has understood their perspectives, and that it has in turn influenced them to consider the big-picture implications of certain project approaches and technology choices? © MWD Advisors 2011
  • 16. Delivering stakeholder-centric services: from strategy to execution 16  Put governance in place to encourage action from findings. If you‟re going to make an investment in EA and Business Planning practice then it makes sense to put a structure in place to ensure that the output of the EA and Business Planning capability will actually be used in practice. This might not require a significant capital or personnel investment; it‟s more a matter of ensuring that the effort is visible and has support from senior executives involved in your transformation programme, and then that there‟s a forum where the outputs of EA and Business Planning work are used to inform programme investment controls. In practice this might be simply a matter of ensuring that your EA capability has a „seat‟ on your Programme or Project Review Board.  Enable EA practice with smart tools. Last but not least, in order to practice EA in a way that fosters shared vision amongst stakeholders and ensures that your process transformation work remains clearly grounded to your business and IT strategies, it‟s really important to select the right tools for the job. There are many EA tools available, and most of them provide rich modelling capabilities and sophisticated repositories to allow you to link and visualise architecture models across different views and perspectives. What‟s important above this, though, is the ability for EA tools to enable your EA practice to open up, and become directly actionable. Specifically, look for tools that can provide links into your portfolio management work (see below), as well as exchange process models with tools you use for business process analysis and management (see above). Look for lightweight publishing and collaboration capabilities that make it easy for EA specialists to share models and analyses with non-specialists, and explain the implications of them. And look for tools that don‟t just enable EA practitioners to create static models, but models that have real-world attributes associated with them that can be aggregated and analysed using business analytics tools – enabling, for example, financial analyses of the impact of a proposed project to consolidate a set of systems. © MWD Advisors 2011
  • 17. Delivering stakeholder-centric services: from strategy to execution 17 Case study: City of Corpus Christi, Texas Over the past few years, the City of Corpus Christi has used IBM‟s Maximo technology as part of a foundation for transforming asset and service management processes across a number of its operations, particularly those associated with water and wastewater provision, utility provision and public works. Prior to 2000, the City‟s work orders were all manually processed and there was no IT system to track work progress, service levels or costs. Then, however, a structural shakeup placed the threat of potential water utility privatisation at the door of the City‟s administration. To prepare itself to be able to counter this threat, the City embarked on a programme of work to modernise its utility asset and work management processes. Over the next three years the City rolled out updated systems across its water treatment and wastewater plants, and updated the management of other crucial utility services in 2004. Once the internal management practices were systematised, the City of Corpus Christi then set about creating a unified „One Call‟ access point for citizens that would allow it to respond quickly and effectively to any service request. The resulting system assists with the creation and distribution of work orders to the relevant field staff in response to citizen alerts and requests, and also tracks the progress of work. For the first two years of the implementation, the City outsourced the development and operation of the system – only bringing it in-house once the implementation settled down and internal staff were sufficiently familiar with the system‟s workings. Crucial to the success of the programme was the creation of project champions in each department; these champions helped to drive up-front workshops with the departments to help refine system, process and business information requirements and gain a degree of up-front buy-in from users. Now, the City‟s administrators can track work performance against pre-defined SLAs – and this performance information helps to set the context for ongoing improvements. To date, the City has focused most of its efforts on measuring and managing responsiveness; now it‟s starting to spend more effort on providing more detailed cost analyses. When asked to share insights that would be useful to other organisations undergoing similar transformations, Steve Klepper, administrative superintendent for the City, highlighted two key items: Firstly, you must realise that technology can only ever be a tool; you mustn‟t view it as an end in itself. A corollary of this observation is that it doesn‟t make sense to expect your IT department to be responsible for the success of an initiative like this – it‟s the business‟ responsibility to ensure acceptance and embrace of a new system or process. Secondly, convincing people to embrace a new system or process can take concerted effort over a long period. Within the City of Corpus Christi, although the City leaders understood the rationale for change, senior staff were less convinced – and this became more obvious once the initial threat of privatization receded. Working to ensure that staff avoid falling back into old, comfortable (but inefficient) ways has been something that‟s required continuous attention. © MWD Advisors 2011
  • 18. Delivering stakeholder-centric services: from strategy to execution 18 Case study: Municipal Information Systems Association, Ontario, Canada Ontario‟s Municipal Information Systems Association (MISA) is part of a national Canadian not-for- profit association which brings together regional associations of municipal government representatives and others engaged in, or interested in, the development and operation of municipal information systems. MISA has been incorporated in Ontario since the 1970s. MISA runs industry conferences and negotiates preferential supplier discounts on behalf of its members, as well as facilitating more specific knowledge sharing. In the 1990s, MISA members started a collaborative programme of work to develop best practices in information and business modelling for municipal government agencies, specifically relating to improving public asset and infrastructure management. After some years of work, the outcome of this effort evolved into the Municipal Reference Model (MRM) – a comprehensive and sophisticated catalogue of around 150 services commonly provided by municipalities that models mandates, programs, outcomes, outputs and their inter-relationships from the perspective of citizens, which helps municipalities more clearly understand the value that their own services provide. In the past few years, following its extension to both the provincial and federal levels in Canada, this work has been given a further boost because of increased pressure on government budgets. Now, budget pressures are leading agencies to have to think about tradeoffs between services and associated service levels. Understanding how services contribute to government mandates and outcomes for citizens makes it much easier to make informed decisions about investment priorities – or at least to ask informed questions about costs and benefits from the citizen‟s perspective. As a result, many municipalities are now using the MRM as a foundation model for more rigorous service planning and service-based budgeting; as well as continuing to use MRM to help provide investment context for ongoing development and management of IT applications. With the increased development and use of the MRM by MISA members, so the need for more sophisticated tool support for MRM use has grown. As well as using MRM as a reference for their own internal use, municipalities have become very interested in benchmarking their own services and capabilities against those of other municipalities – from both cost and performance/results perspectives. MISA members are now piloting the use of IBM Rational‟s System Architect, combined with Lotus Quickr, as a platform for sharing models, metrics, contextual reports, best practices and background documents, as well as carrying out and sharing benchmarking analyses. MRM‟s service catalogue provides a common reference model for all this work. Now the ability to share strategic and financial insights, based on a common business reference model and benchmarking database, provides a foundation for advanced planning and evidence-based budgeting options that municipalities can readily take advantage of. When asked to share insights that would be useful to other organisations undergoing similar transformations, Roy Wiseman, CIO for the Region of Peel in Ontario and a champion of MRM for many years, highlighted two key items: Firstly, be prepared for a long haul. Developing comprehensive business architecture models that are going to be shared and used by groups of independent authorities can take a lot of effort over a considerable timescale. You have to be prepared to „plant the seed‟ of the idea, and take time to develop good levels of awareness within all stakeholder groups. Secondly, getting the right people to commit to such a project – and stay committed – means you have to develop a compelling answer to the question “what‟s in it for me?” When initiatives like this start they‟re carried by enthusiastic individuals for whom the benefits are self-evident; but for them to build over the long term and become embedded into an organisation, you need to hone your pitch so that it‟s attractive to new audiences. © MWD Advisors 2011
  • 19. Delivering stakeholder-centric services: from strategy to execution 19 Case study: New York City Health and Human Services The Health and Human Services (HHS) Domain of New York City is a group of 8 government agencies that work together to improve agency co-ordination, maximise service levels and minimise costs. When Michael Bloomberg first took office as New York City mayor in 2002, reducing service and organisational overlaps in the HHS area was one of his key priorities. Although many of the HHS agencies were serving the same clients, agency reorganisations over time had compounded fragmentation of service delivery, and duplication of effort and information. At the start of his second term in 2005, Bloomberg appointed a Deputy Mayor, Linda Gibbs, who developed a strategic plan for the HHS domain and created a programme of change initiatives called the HHS-Connect programme. The programme has three related missions: first, to improve clients‟ interactions with HHS agencies through a client-centric approach; second, to improve workers‟ experiences in dealing with clients, by increasing access to data across agencies; and third, to improve agencies‟ effectiveness and efficiency. The first part of the programme – the creation of a citizen-facing portal called ACCESS NYC – got underway in 2006, and is still ongoing. ACCESS NYC brings together client eligibility screening for a wide variety of benefits and services across multiple agencies, and enrolment for select services, in one place. The second part of the programme – the creation of the Worker Connect portal – was built around the creation of a „common client index‟ (CCI) using Master Data Management (MDM) and Enterprise Service Bus (ESB) technology. The result is a system that provides one shared source of client data that all relevant agencies can access according to law and regulation. Going forward, the HHS-Connect programme is now exploring how it can deliver additional value to HHS agencies. One particular priority is in the area of case management: as individual agencies start to end-of-life their existing legacy case management systems, the HHS-Connect programme is looking to offer agencies assistance with deploying a standard platform. The programme is also exploring the idea of standardised financial processing and claims payment processing platforms. The City knew that solid evidence would be vital to justify the effort of the initiative, and to assess the validity of the chosen priorities. It carried out an internal market research project, which clearly showed that data sharing was a crucial issue for workers „on the ground‟ in individual HHS agencies. The next challenge was to convince individual agencies that security risks associated with sharing data could be managed effectively. To this end, the programme dedicated a specific team of people to working one-to-one with key representatives of the agencies, as well as legal experts, to agree and implement policies and technology frameworks to ensure that the agencies‟ concerns were adequately met while at the same time working within the constraints of regulations such as HIPAA. The HHS-Connect programme has established an Enterprise Architecture and Governance capability to help it build and maintain „big picture‟ context for operational decision-making. However, this capability is very lightweight: it‟s not about creating models for the sake of modelling. Instead, the programme team has created an Executive Steering Committee, chaired by Deputy Mayor Gibbs and other City of New York executives, to shape demand from individual agencies. It‟s paired this with a Solution Architecture Review Board, which works with the various agencies‟ systems integration partners to ensure that all parties involved in creating new technology capabilities for agencies have a consistent view of key requirements and preferred architecture and technology approaches. When asked to share insights that would be useful to other organisations undergoing similar transformations, representatives of HHS-Connect highlighted three items. Firstly, make sure that you have a strong risk management methodology. You must identify and document risks and identify remediation plans, assign risks to people so they‟re accountable for their own risks, and track risks. Risk management has to be proactive, and has to be something everyone takes responsibility for. Secondly, make sure that you have carried out a proper business justification and that as your programme unfolds you‟re measuring the benefits that you identified in that business justification. Thirdly, make sure that you have a strong and engaged senior Executive Steering Committee that has overall responsibility for the success of the programme, and work hard to make sure they stay engaged. Without this level of sponsorship, it proves difficult to show success over the long term. © MWD Advisors 2011
  • 20. Delivering stakeholder-centric services: from strategy to execution 20 IBM Capabilities for all stages of your transformation Government Industry Framework IBM Industry Frameworks combine the power of award-winning IBM software with industry specific assets and best practices specifically configured to meet our clients’ unique challenges and needs. The IBM Government Industry Framework is a strategic software platform for implementing smarter government solutions focused on improving citizen services, increasing transparency, enhancing civilian safety and security, and helping achieve a green and sustainable environment. The framework approach offers solution implementations the opportunity to accelerate time-to-value and payback while lowering a project's cost and risk. This is because the implementations leverage tested architectures and patterns, software components are reused across projects, and industry specific software extensions and accelerators in the framework can be leveraged. Business Planning and Alignment IBM offers a comprehensive portfolio of business planning and analysis solutions designed to enable better enterprise planning and ensure execution against specific business requirements. IBM solutions help organizations make faster, better-informed strategic and tactical decisions, prioritize IT investments to support business goals, improve risk management of organizational transformation, and turn strategy into execution with measurable results. Our planning solutions are founded on actionable enterprise architecture management to connect business and technology capabilities through cohesive and dynamic blueprints and Portfolio management capabilities help you collaboratively define software and product investment roadmaps to enhance business objectives and processes while measure and manage the financial and strategic risks. Business Process Management A dynamic business network requires business process management (BPM) with process modelling and monitoring, service-oriented architecture (SOA) and dynamic application infrastructure. IBM’s BPM powered by SMART SOA™ includes all three and also these extended value capabilities for intelligence and agility: complex events processing; analytics; collaboration; and rules, content/document and Web services registry/repository management. IBM’s “foundational offerings” include IBM WebSphere® Dynamic Process Edition for large scale, high-integrity dynamic process integration and automation across the enterprise; IBM WebSphere Lombardi Edition for rapid process implementation with project team collaboration; and IBM FileNet® Business Process Manager for content management, workflow and collaboration. Business Analytics Whether town council or national agency, government organizations all face similar challenges. Guided by their mission, they need to optimize services and programs for citizens while demonstrating good governance. And they need to do this within budget in a climate of shrinking resources. Thousands of public sector organizations worldwide rely on IBM Business Analytics software and services to deliver smarter government. Business intelligence software lets you consolidate, track, analyze and report on all relevant data. Financial performance and strategy management software provides planning, budgeting and consolidation for linking strategy to dynamic plans and targets. Advanced analytics software gives you the insight you need to predict trends and respond at the point of impact. And analytic applications give you a quick start with a particular issue or domain. Integrated Service Management Integrated Service Management enables service innovation by providing Visibility Control Automation across business infrastructure and the end-to-end service chain. Only Integrated Service Management provides the software, systems, best practices and expertise needed to manage infrastructure, people and processes—across the entire service chain—in the data center, across design and delivery, and tailored for specific industry requirements. With Integrated Service Management you gain the Visibility Control Automation needed to deliver quality services, manage risk and compliance, and accelerate business growth. © MWD Advisors 2011 RAL14032-USEN-00