Managing in a Multi-Sourced Environment

Jo HeinNational Manager, IT Shared Services, Custom IT Division Australian Customs Service

2

CIO Summit19 August 2008

Managing in a Multi-Sourced Environment By Jo Hein, National Manager, ICT Shared Services

Australian Customs Service

3

Introduction

• The Vision

• The Sourcing Strategy

• The “CITMA”

Principles, protocols

Performance

• Questions

4

Customs IT

• purpose is one vision and one goal.

• members’ priority – to serve our customers.

• will be one coherent, seamless, supportive and transparent Team.

• know Customs business.

• adhere to Customs IT Multi-party Arrangements (CITMA).

• first point of contact will be a Customs representative.

• responsibility for all IT services will rest with Customs IT.

Customs IT =

5

Customs Sourcing StrategyService Provider Scope Contract type Term (yrs) Value (cash)

Main Processing

IBM (was EDS) Mainframe, mid-range, storage, DR

Full service 5yrs + 3 + 3 $160m for 5ys

Apps Maintenance & Support

IBM, CSC, EDS, Fujitsu, KAZ

(was EDS/others)

Apps maint & support

Bodyshop & services

3yrs + 2 + 2 NA

Voice Infrastructure

Telstra & TBS

(was EDS & TBS)

Phones, PABXs Service – we own assets

1.5yrs + 1 + 1 $3.5m for 1.5yrs

Internet & Secure Gateway

Verizon

(was Verizon = Cybertrust)

OGA, internet, CCF gateway

Full service 3yrs + 2 + 2 $7.5m for 3 yrs

Desktop Customs Service Desk, Desktop, LAN

NA NA NA

Telco Telstra National Tele- Communications

Full service End Dec 08 NA

In-house IT Planning, Governance, architecture, integration, contract management, 2nd level apps helpdesks, small sys devl, project management (case by case), Apps Devl (case by case).

6

CITMACustoms IT Multi-Party

Arrangements

7

CITMA

• Customs IT Multi-Party Arrangement (CITMA) applies to all service providers (internal and external). It is a schedule in the ITMT contract.

• The CITMA addresses:

• 16 Management Principles;

• Behaviour Protocols and Principles;

• IT Service Management Framework (ITSM);

• IT Governance (relationships and forums);

• An Introduction to Customs IT (ITIntro);

• Policies, Standards, Plans and documentation;

• Performance Management (ITPerform); and

• Joint innovation and technology planning (ITInnotec).

8

Customs ITManagement Principles

Agility to meet Customs rapidly changing business requirements

Information management and control

Mobility to deliver business services at any location

Government accountability and transparency

Stable and reliable delivery of business processes

Effective and efficient relationships

Delivery of seamless, end-to-end business processes

Thought leadership

Efficient access to skills in the marketplace Efficient and effective procurement

Alignment with Customs culture and mission

Clarity of responsibility for delivery of outcomes

Commitment to productivity improvements Maximise value for money

Access to Global Best Practice Measurement, management and reporting of performance to deliver business outcomes

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Customs IT

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

Behaviour Protocols

10

Customs Framework

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and

Availability

Management

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting for IT servic

es

Release

Process

Relea

se Manageme

nt

Problem

Resolution

Incident Manage

ment

Problem Manage

ment

Relationsh

ip Proce

ss Busine

ss Relationship

Management

Suppli

er Management

Customs IT

Technical

Infrastructure

Layer

Applications

Layer

ITSM Governance forums, policies and procedures

External Providers

(case by case) Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting for IT servic

es

Release

Process

Relea

se Manageme

nt

Problem

Resolution

Incident Manage

ment

Problem Manage

ment

Relationsh

ip Proce

ss Busine

ss Relationship

Management

Suppli

er Management

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and

Availability

Management

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting for IT servic

es

Release

Process

Relea

se Manageme

nt

Problem

Resolution

Incident Manage

ment

Problem Manage

ment

Relationsh

ip Proce

ss Busine

ss Relationship

Management

Suppli

er Management

IM Br Apps Br IT Br

Apps Developers

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

Business Areas

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and

Availability

Management

Service Level

Management

Service Reportin

g

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

Business Areas (by many)

Apps M&S

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

Main Processing

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

D’top/LAN

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release

Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

External Comms

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release

Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

Voice

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

Secure Gateway Services

Central Process

es Configura

tion Managem

ent Change

Management

Service Delivery Processes

Capacity

Management

Service Continuity and Availab

ility Manage

ment

Service Level

Management

Service

Reporting

Informatio

n Securi

ty Manageme

nt

Budgeting

& Acco

unting

Release

Process

Relea

se Mana

Problem

Resolution

Relationsh

ip Proce

ss Busine

ss

Service Continuity Principles • resolve issues as a priority• then sort out financial & contractual responsibilities• participate, even if not at fault• proactively share information• work efficiently at interfaces• take instructions from other providers, if requested• don’t pass blame or fault

11 IT Service Management Processes

Central Processes Configuration Management

Change Management

Service Delivery Processes Capacity Management

Service Continuity and

Availability Management

Service Level Management

Service Reporting

Information Security Management

Budgeting &

Accounting for IT services

Release Process

Release Management Problem Resolution

Incident Management

Problem Management

Relationship Process

Business Relationship

Management

Supplier Management

12 Overall Governance Structure and Forum Inter-relationships

FOUNDATION: Cutstoms 16 IT Mgmt Principles

CITMACutstoms IT Operational Policies, Standards & Procedures

Stra

tegi

c L

evel

Man

ager

ial L

evel

Ope

ratio

nal

Lev

el

Internal Bundle ITSM ForumsInternal Bundle

ITSM ForumsInternal Bundle ITSM ForumsInternal Bundle

ITSM Forums

Regional ForumsRegional Forums

Regional ForumsRegional Forums

Contract Mgmt MeetingsContract Mgmt

MeetingsContract Mgmt MeetingsContract Mgmt

Meetings

Business Owners Forum

Technology Committee

Account Mgmt MeetingsAccount Mgmt

MeetingsAccount Mgmt MeetingsAccount Mgmt

MeetingsAccount Mgmt Meetings

Joint Strategy Committee

Executive Acct ForumExecutive

Acct ForumExecutive Acct ForumExecutive

Acct ForumExecutive Acct ForumExecutive

Acct Forum

Executive Meetings

CEO ForumCEO Forum

CEO ForumCEO Forum

CEO Forum

IT Project Managers Forum Change

Control Board

Architecture Committee

Problem & Incident

Mgmt Forum

Joint Performance Forum

Introduction to Customs IT

Customs IT Strategy Committee

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Introduction ProgrammeThe overall objective of the Introduction is to instil

the culture you are trying to achieve…..

• One common vision (tell them what it is) and one culture (tell them what you expect)

• All Staff attend – existing and new

• Include Site Visits (see, touch and feel your business front line)

• On-going support via Intranet

New

Sta

rter

s to

Cus

tom

s IT

Exi

stin

g C

usto

ms

IT m

embe

rs

Introduction to Customs IT

New Starter’s Package

‘Welcome to CustomsIT’, Overview of ITIntro Process, Mentor Program Details

Mentor Program

Assist the new starter to become familiar with Customs IT and be available on an ongoing basis to answer questions and provide advice

ITIntro CourseAttend ITIntro Course sessions to gain an understanding of Customs and Customs IT and comprehension of the Customs IT “one team” approach

ITIntro Site Visits – Canberra and

Sydney

To view Customs operations, which may include:* Detector Dog Unit* Passenger Processing* Mail Handling* Coastwatch

Annual Refresher Training

Attendance at a refresher session once per year to reiterate the ITIntro message

Documentation Repository(ie, Intranet)

An ongoing repository of information for CustomsIT staff, to ensure currency of information provided by ITIntro is maintained

Containing information from ITIntro Course and other reference material

ITIntro Manual

The Components of the ITIntro Program

FOCUS = Cultural Change!!

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Scorecard Overview

Corporate IT Scorecard

Bundle 3 Scorecard

Bundle 1 Scorecard

Bundle 2Scorecard

Bundle 4 Scorecard

Bundle nScorecard

Corporate IT Performance

Measures

Bundle Performance

Measures

Major Business Impact MeasuresScorecard Performance Measures

Other Scorecard Reporting

Operational Performance Measures

Schedule 3 Performance

Agreement

Strategic

Financial Management

Business Outcome

ServiceQuality

Scorecard Dimensions

Performance Credit Cap 15-20%

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ITStrategic

Plan

S P 1StrategicInitiative

S P 2StrategicInitiative

S P 3StrategicInitiative

S P 4StrategicInitiative

S P nStrategicInitiative

CIO JSC

$ Innovation Fund

NRA

Innovation Idea: Provider: SPnCost / Savings:Benefits:Platform / Apps:Timing:Deliverables:

Innovation Idea: Provider: SPnCost / Savings:Benefits:Platform / Apps:Timing:Deliverables:

Innovation Idea: Provider: SPnCost / Savings:Benefits:Platform / Apps:Timing:Deliverables:

Innovation Idea: Provider: SPnCost / Savings:Benefits:Platform / Apps:Timing:Deliverables:

Innovation Idea: Provider: SPnCost / Savings:Benefits:Platform / Apps:Timing:Deliverables:

ITStrategic

Plan

ITStrategic

Plan

ITStrategic

Plan

ITStrategic

Plan

Innovation Process

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StrategicPlan

(Jan – Feb)

TechnologyPlan

2007- 2008 (March)

Internal Bundle

Technology Plan

Branch Plans

(May)

SP Bundle Technology

PlanSP Bundle Technology

PlanSP Bundle Technology

PlanSP Bundle Technology

Plan

Capacity Planning

Corporate Plan

Statistical Forecasts

Transition / Transform Plans in RFT

$ NRA(Apr/May)

Project Business Cases(March)

Environmental Scan

Architectural Changes

JMCSP Bundle Innovation

Program

SP Bundle Innovation

Program

Innovation Briefs

Architecture Committee

Innovation Plan(Feb)

Inputs and Timings of Joint Technology Planning Process

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The Customs IT

Performance Measurement Framework (ITPerform)

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Scorecard Overview

Corporate IT Scorecard

Bundle 3 Scorecard

Bundle 1 Scorecard

Bundle 2Scorecard

Bundle 4 Scorecard

Bundle nScorecard

Corporate IT Performance

Measures

Bundle Performance

Measures

Major Business Impact MeasuresScorecard Performance Measures

Other Scorecard Reporting

Operational Performance Measures

Schedule 3 Performance

Agreement

Strategic

Financial Management

Business Outcome

ServiceQuality

Scorecard Dimensions

Performance Credit Cap 15-20%

19

Performance Model

• All providers committed to the same model, including:– Scorecard model– Performance Mechanics & Joint Review– Performance At Risk Amount = % of Total Charges– Approach for adding/varying PM’s– Approach for continuous improvement

The model represents a shift away from traditional ‘service level’ and penalty models.

Senior Business reps have been involved in the IT Scorecard development.

The model represents a shift away from traditional ‘service level’ and penalty models.

Senior Business reps have been involved in the IT Scorecard development.

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Scorecard Scoring Scale

= 8 Expected Performance Measure

0

10

Good

Performance 6

7

5.5

6.5

7.5

Outstanding

Performance

Poor

Performance

= 5 Minimum Performance Measure

0

10

PerformanceRequiring Improvement

6

7

5.5

6.5

7.5

Expected

Performance

Unacceptable

Performance

Two levels of performance are

measured: • Expected level of performance (score >= 8)• Unacceptable Level of Performance (score < 5)

Example - For a measure based on %:• A score of 8 = 99.75% (expected level)• A score of 5 = 99.50% (unacceptable level)

Each Performance Measure in the Corporate IT scorecard and the Bundle scorecard is calibrated to the 0-10 scale

Each Performance Measure in the Corporate IT scorecard and the Bundle scorecard is calibrated to the 0-10 scale

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Types of PM

Description: A limited number of Performance Measures that are nominated by Customs as having critical business impact for Customs.

Examples of initial Major Business Impact Measures are: • Passenger System Uptime during Critical Business Hours• Cargo System Uptime during Critical Business Hours

Major Business Impact Measures

Description: A limited number of Performance Measures that are nominated by Customs as having critical business impact for Customs.

Examples of initial Major Business Impact Measures are: • Passenger System Uptime during Critical Business Hours• Cargo System Uptime during Critical Business Hours

Major Business Impact Measures

Description: All Performance Measures Included in the Corporate IT Scorecard and Bundle Scorecards, other than the Major Business Impact Measures.

Scorecard Performance Measures

Description: All Performance Measures Included in the Corporate IT Scorecard and Bundle Scorecards, other than the Major Business Impact Measures.

Scorecard Performance Measures

Description: Reporting information required by Customs for the Corporate IT Scorecard or Bundle Scorecard. OSRs are not subject to Performance At Risk Amounts.

Other Scorecard Reporting

Description: Reporting information required by Customs for the Corporate IT Scorecard or Bundle Scorecard. OSRs are not subject to Performance At Risk Amounts.

Other Scorecard Reporting

Description: Performance measures required by Customs for day to day management of the Services. These are not included in the Scorecard and are not subject to the Performance At Risk Model.

Operational Performance Measures

Description: Performance measures required by Customs for day to day management of the Services. These are not included in the Scorecard and are not subject to the Performance At Risk Model.

Operational Performance Measures

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Performance At Risk Amount

Customs may apply a Performance At Risk Amount where performance is Unacceptable (score is < 5)

Customs may apply a Performance At Risk Amount where performance is Unacceptable (score is < 5)

Major Business Impact Measure

A Performance at Risk Amount will apply. However, Customs may exercise its discretion

to waive the Performance At Risk Amount

Bundle Scorecard Performance

Measure

Corporate IT Scorecard

Performance Measure

Customs may also exercise its discretion to apply a Performance At Risk Amount

the second and each subsequent time that a Corporate IT Scorecard Performance

Measure is < 5

Performance At Risk Amount

Performance At Risk Amount

Performance At Risk Amount

Customs may exercise its discretion to apply a Performance At Risk Amount the second

and each subsequent time that a Bundle Component Performance Measure is < 5

On

ce I

mp

lem

en

ted

23

Bundle nScorecard

Bundle 4 Scorecard

Corporate IT Scorecard

Bundle 3 Scorecard

Bundle 1 Scorecard

Bundle nScorecard

Performance Measures

Bundle ComponentMeasures

In exercising its discretion to apply an At Risk Amount, Customs will take account of certain Guidelines.

Drill Down Review

Performance Measure score < 8:• A Drill Down Review is conducted at the joint Forum and

Corrective Actions assigned (Improvement Plan).

Performance Measure score <5:• An At Risk Amount may apply.

Performance Measure score < 8:• A Drill Down Review is conducted at the joint Forum and

Corrective Actions assigned (Improvement Plan).

Performance Measure score <5:• An At Risk Amount may apply.

24

Scorecard Layout

25

Automated Reporting

Intranet Page

Reporting drilldown

(Dai

ly /

Wee

kly

/ Mon

thly

) Dat

a Fe

eds

Performance Measure Business Rules

Surveys

Asset/Config Tools

Service Desk Tool

Project Tools

System Monitoring Tools

HR / Finance Systems

Data Sources

Scorecard Tool /

Data Warehouse

So

urc

e o

f T

ruth

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Any Questions…..?