ibm global services: a clear view using component business modelling: customer case study qldc

Business Unit Designation or other informationBusiness Unit Designation or other information

A Clear View Using Component Business Modelling: Case Study - Queenstown Lakes District CouncilCase Study Queenstown Lakes District CouncilRoland BellManaging Consultant, IBM Global Business Services

Make change work for youIBM Insight Forum 09®

Global Business Services

A dAgenda

1. Background and Context

2. Challenges and Expectations

3. Project Approach

4 Component Business Model4. Component Business Model

5 Results5. Results

6. Lessons Learned and Summary

2


B k d d C t tBackground and Context

3

Source: QLDC Annual Report 07-08www.qldc.govt.nz


B k d d C t tBackground and Context

100% ownershipJan 09 announced intention to

amalgamate with internalamalgamate with internal engineering services team

100% ownership

Note: this is not anNote: this is not an exhaustive list of QLDC subcontractors…

4 Public Records ActResource Management Act Local Government Official Information and Meetings Act

… and many other Acts…


Ch ll d E t tiChallenges and Expectations

CEO Duncan Field expectations:CEO Duncan Field - expectations:Increase efficiency of processes through easy to access, consistent and complete informationB tt lit f t d i i kiBetter quality, faster decision-makingBenefits to community and ratepayersA programme of projectsp g p jEach initiative must stand on its own merits

One View initiative (Kirsty Martin CIO):One View initiative (Kirsty Martin, CIO):“One of the biggest challenges a fast growing organisation faces is data sharing. The goal is to provide a single, unified view of business critical data across all co operative agencies ”business critical data across all co-operative agencies.

“By creating a more unified view we want to achieve improved ffi i th ti d d d i k I d t

5

efficiency, smoother operations, and reduced risk. In order to achieve this we need to ensure we have the data required, and trust its integrity, authority and accuracy.”


P j t A hProject Approach

2. Analyse Requirements / Priorities & Identify

Opportunities

3. Build the Action Plan for Requirements and Design

1. Assess Current State / Gather Data

ies

s)

Best practices (IT)

Initiative prioritisation

ActionCandidate es

“Top 10” issues

proc

esse

s &

si

ble

part

ies

anis

atio

ns in

fo

cus)

Current IT

situation

te o

ppor

tuni

ting

e (in

itiat

ives prioritisation

and action planning

Investment

n Plan for Re

and Design

opportunities for change

rent

sta

te

ents

& p

riorit

ie

y n

Current state assessment

Cor

e p

resp

ons

(for o

rga f

Can

dida

tfo

r cha

n Investment Analysis for

Requirements and Design

phase

equirements

phase

Impacts on people, processes, technology

Cur

rre

quire

me

ectiv

es, p

lans

, ra

ting

stra

tegy

orga

nisa

tions

info

cus)

Input fromenvironment & stakeholders

C t i t

s

Obj

eop

er(fo

r o

User groups / locations

6

•Constraints

•Future directions


P j t A hProject Approach

1. Assess Current State / Gather Data

2. Analyse Requirements / Priorities & Identify

Opportunities

3. Build the Action Plan for Requirements and Design

es

“Top 10” issues

Initiative prioritisation

ActionCandidate

proc

esse

s &

si

ble

part

ies

anis

atio

ns in

fo

cus)

rent

sta

te

ents

& p

riorit

ie prioritisation and action planning

n Plan for Re

and Design

opportunities for changeC

ore

pre

spon

s

(for o

rga f

Cur

rre

quire

me equirem

entsphase

s

InterviewsWorkshops

Executive Team workshop Working with

b i

7

(engineering, regulatory / environmental)

business sponsors


C t B i M d lComponent Business Model

City Planning Public Safety Transportation & Infrastructure

Recreation Services

Public Works Services

Municipal Management

Services

Direct Strategic Planning

Performance Regulatory Disaster

Preparedness Planning Admin PlanningInfrastructure

Strategy Event Planning Services Strategy

ControlAnalytics Recreational

Facilities Oversight

Engineering Reporting

Monitoring

Contracts

ReportingManagement

Public Safety Reporting

Program Management

Housing Administration

Sports Facilities & Events

Emergency Response

LegalDevelopment Control

Execute

Property & Land Prevention & Awareness

Service Delivery

HRDocument M t

Libraries

Control

8

Property & Land Management

Awareness ManagementHeritage

Preservation IT



Component Business Model

Strategic

City Planning Public SafetyTransportation

& Infrastructure

Recreation Services



Services

Preparedness Admin Infrastructure Event Services

Columns are Business Competencies, defined as large business areas with characteristic skills and capabilities for example

Component Business Model

Control


Analytics Recreational Facilities Oversight

Engineering Reporting

Performance Monitoring

Contracts

Regulatory Reporting

Disaster Management


Preparedness Planning

Admin Planning

Infrastructure Strategy

Event Planning

Services Strategy

Program Management

skills and capabilities, for example, product development or supply chain.

Execute

Contracts Reporting

Housing Adminis-

tration

Sports Facilities &

Events

P ti &

Emergency Response

Service Delivery

Legal

Libraries

Development ControlAn Accountability Level characterises

the scope and intent of activity and decision making The three levels

Property & Land

Management

Prevention & Awareness HRDocument

ManagementHeritage

Preservation IT

decision-making. The three levels used in CBM are Directing, Controlling and Executing.

Directing is about strategy, overall direction and policy Business

A Business Component is a part of an enterprise that has the potential to operate independently, in the extreme

direction and policy.Controlling is about monitoring, managing exceptions and tactical decision makingExecuting is about doing the work

Business Purpose

Activities

Governa

Business S

9

yas a separate company, or as part of another company.

Executing is about doing the workResources

ApplicationsInfrastructure

ance

Services


Component Business Model – example showing p p gimportance vs. resource use

High cost but


& Infrastructure

Recreation Services



Services

High cost but differentiating (adds

significant value)


Analytics Recreational Performance Monitoring


Disaster Management


Admin Planning


Event Planning

Services Strategy

StrategicPlanning

Analytics

(We need to be known for engineering)


Facilities OversightEngineering Reporting

Monitoring

Contracts

ReportingManagement


Housing Sports E

Program Management

Analytics

E

Engineering

Housing

Execute

Housing Adminis-

tration

Sports Facilities &

Events

Prevention &

Emergency Response

Service Delivery

Legal

HRD t Libraries

Development Control

EmergencyResponse

HousingAdminis-

tration

High cost but non-differentiating: costProperty &

Land Management


ManagementHeritage Preservation IT

differentiating: cost control opportunity

(We don’t need to be known

10

Key: Differentiated component

High resource use

( e do t eed to be ofor doing contracts)


Component Business Model – example showing p p gapplications and data


& Infrastructure

Recreation Services



Services

Duplication:

two systems

Replication:

information held in


Analytics Recreational Performance Monitoring


Disaster Management


Admin Planning


Event Planning

Services Strategy

yproviding same

function within one component

multiple places


Facilities OversightEngineering Reporting

Monitoring

Contracts

ReportingManagement


Housing Sports E

Program Management

p

S t

Execute

Housing Adminis-

tration

Sports Facilities &

Events

Prevention &

Emergency Response

Service Delivery

Legal

HRD t Libraries

Development Control

System a

System b

Property & Land

Management


ManagementHeritage Preservation IT

11

Key: Application systems

Name and Address data



"We drew together a one-page map of what the council looked like and from there, for each of the components of the council, asked what were the inputs and outputs and where did they need to getwhat were the inputs and outputs and where did they need to get information from."

"It was quite an interesting process because people started offIt was quite an interesting process because people started off thinking it was an IT project but once they got talking about the difficulties they face day-to-day just finding information, and we'd moved it to a business process discussion, it became quite fruitful."moved it to a business process discussion, it became quite fruitful.

"It's been really good to provide a framework to move forwardwithout diving straight into a technical solution which is always awithout diving straight into a technical solution, which is always a mistake”.

Q t L k Di t i t C il CIO Ki t M ti

12

Queenstown Lakes District Council, CIO, Kirsty Martin


R lt i ll tiResults – issue collection

Issues for “Resource Planning” business component

Financialperspective

High proportion of unplanned / reactive work; resource conflicts

Less predictable project expenditure & time estimating

Increased costs Missed revenue opportunities

Less predictable estimates of project length & project costs

Potentially more disruption for community (esp. when infrastructure is being built / repaired)

Underlying issues get missed and take too long to deal with, leading to frustration

Reduced community trust in Council; loss of trust leads to decreased community confidence

Community

Don’t know what resource allocation is at start of year

Internal ProcessBusiness processes

No resource planning for infrastructure

allocation is at start of year (not known if too much or not enough); uncertainty as to what we can deliver

Key finding(s):Resource planning not occurring

consistently. Likely to be resulting in increased costs through unplanned work,

delayed work, resource conflicts, in addition to negative community impacts.

Business processesApplicationsInformation, Data, Technology

projects

People work longer than

Improve resource

l i

People not getting adequate training;

Increased stress leads to greater staff turnover; turnover

13Learning

and Growth

gthey need to planningdevelopment plans

not targeted, not effective

g ;leads to increased costs, delays in projects, and sometimes no handover when staff leave


R lt li ki b fit t biliti d blResults – linking benefits to capabilities and enablers

BenefitsKey: Resource PlanningA hi

Value providedAchieve better predictability of project duration and expenditure

Reduce costs through reducing

resource conflicts

Capability

Enabler

Reduce reactive and unplanned

work

Develop capabilities of people resources

in line with better understood future

requirements (more targeted

Achieve greater revenue

opportunities

Anticipate and

targeted development plans)

Things QLDC

Estimate

Share resource requirements and

commitments j t

Schedule resources

required for projects

Anticipate and manage resource conflicts

needs to do

Estimate resources

required for projects

Capture actual resource requirements from past projects to inform estimating in

future projects

across projectsMaintain visibility of planning done by

external parties (e.g. consultants)

future projects

ProjectProject planning and scheduling

Processes and facilities to share information with

external parties

Things QLDC needs to have

14

Project requirements

Project planning and scheduling process

and scheduling tools

Project knowledge repository

Project Managers / Project Planners trained in new

processes & tools


R lt i iti ti i iti tiResults – initiative prioritisation

2

5

Hi

34

5

69

1011

13

1

14

s 6

8

121

ct o

n C

SFs

Hard-fought major projects Quick Wins

Low urgency8

Impa

c Low urgency

Medium urgency

High urgency

7

The size of the bubble represents the ‘cost’ score. The larger the bubble, the higher the cost.

15 Ease of implementationWaitDon't Do

Harder EasierLo


L L dLessons Learned

An organising framework (CBM) – worked very well in terms of engagingAn organising framework (CBM) worked very well in terms of engaging both staff and the executive team

It allowed anchoring of the issues as well as the initiatives arising from the Scoping PhaseScoping Phase"You've got to make sure you've got the business sorted first so it drives your technical response." – Kirsty Martin, CIO

Early involvement was key to buy-in“Involving staff in the process ensures their "pain-points" are understood and g p p pgets project buy-in.” – Kirsty Martin, CIO

We built re usable frameworks that QLDC could continue to use followingWe built re-usable frameworks that QLDC could continue to use following the engagement:

CBM; prioritisation model

16The process “worked”; implementation is now underway


Thank oThank you

Questions?

17IBM Insight Forum 09®

Make change work for you