Strategic and Operating Review (SOR)Departmental Guidance

CIO Council July 20, 2011

Canada Aviation and Space Museum

Presenter: Benoit Long, CTO Government of Canada

Agenda

• What does SOR mean?

• What does SOR mean to CIOs?

• CIOB Approach

• SOR Timelines

• Contact Summary

• Exploring the IT Guidance

• Open microphone for questions

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What does SOR mean?

• In order to meet SOR targets, departments will be motivated to achieve efficiencies by:– Considering the rationalization of programs and services, including

internal IT services which are departmental and program specific.

– Better leveraging IT or re-directing IT investments in support of potential cost savings opportunities.

• Scope includes: – Sixty-seven federally-appropriated organizations. This includes

federal departments, agencies, and Crown corporations representing 99% of the government’s 2011-12 direct program spending base, as set out in 2011-12 Main Estimates.

– Some organizations, such as Agents of Parliament and non-appropriated Crown Corporations, will not be required to undertake a Strategic and Operating Review. However, they will be encouraged to adhere to the spirit and intent of the Strategic and Operating Review.

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What does SOR mean to CIOs?IT Guidance has been released to assist departments inpreparing their cost savings proposals. Three key messages from that guidance are:

1. Information Technology services to be considered for targeted cost savings include:

• Desktops• Printers• Applications (back office and mission specific)

Information Technology services that are NOT to beconsidered for targeted savings, because they arepotentially subject to a whole of government (enterprise)approach are:

• Data centres• Networks• Email

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What does SOR mean to CIOs?

2. Cost saving proposals should focus on approaches to standardize, consolidate and re-engineer. Consult with TBS, CIOB BEFORE:

• Planning, initiating, undertaking or finalizing ANY initiatives that: • Do not align with GC standards and architectural

directions, • Are under development and not yet formally published, or

• Provide an opportunity to partner with other organizations

to reduce the overall investment.

• Procuring IT services.

• Outsourcing or signing long term agreements for IT services.

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What does SOR mean to CIOs?

3. Explore cost saving opportunities through self-organizing groups:

• “Finding a friend” facing common business challenges.

• Leveraging existing solutions or joining an initiative already underway.

• Forming clusters to address shared or common business challenges.

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CIOB Approach

CIOB has developed a central point of contact for:

• Inquiries, emails, correspondence.

• Information sessions, coaching, ad-hoc department discussions.

• Information and FAQs (via GCPEDIA search for SOR).

All inquiries should be made in writing and sent to the CIOB mailbox to ensure a timely response:

• Please do not phone – send an email to CIOB mailboxcio-dpi@tbs-sct.gc.ca

• Inquiries receive an acknowledgment immediately upon receipt.

• Responses or follow-up contact can now be expected in 48 hours of the acknowledgment.

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CIOB Approach – cont’d

CIOB is developing a core team in ITD, augmented with departmental resources (Tiger Teams) to provide:

• Enhanced IT guidance on cost saving opportunities.

• Vetting and publishing effective cost saving approaches from the community.

• Consulting and review services to support development of departmental cost saving proposals.

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SOR Timelines

Activity Completion Date

Comments

IT Guidance was released in the SOR package which also included:• Terms of Reference• Reporting template• Reporting guidance• Excel spreadsheet for financials

June 30 Deputy Heads and copied to Chief Financial Officers

Enhanced guidance released

August 2 Prepared by CIOB and IT community where appropriate

IT cost saving opportunities submitted and reviewed

July - September

Conducted by CIOB Opportunities Office

Cost saving proposals due October 3 Submission to the TBS SOR office

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Contact Summary

• Formal responses will be provided to all inquires sent in writing to CIOB mailbox:

cio-dpi@tbs-sct.gc.ca

• All current information and FAQs are available via:

– GCPEDIA

• Search under SOR.

• Avoid direct contact with the leads - please use the mailbox stated above.

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Exploring the IT Guidance

• Clarification on TB subs• Clarification on IT expenditure information• Clarification on Procurement• Data Centers, Networks, Email• Desktops • ERP – Finance – HR• Other Administrative Systems• ATIP • Case Management Systems• Health Information Systems• Gs & Cs• Interoperability• Printers• Security • Federal CS Population - Realigning the Future

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Exploring the IT GuidanceClarification on TB subs

• TB subs and investment plans will be reviewed to ensure alignment with ASR/SOR intent and to identify potential GC wide (enterprise) approaches.

• This applies to:

• TB submissions that are currently in the review process;

• TB Submissions that have been approved within the prior six (6) months; and

• Departmental, Agency and Crown Corporation Investment Plans submitted to TBS.

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Exploring the IT GuidanceClarification on IT expenditure information

• 2009-10 departmental expenditure was one of the data sources used to inform SOR decisions.

• 2009-10 departmental data was NOT the only source of data to inform the SOR targets.

• ASR developed the methodology to calculate the SOR departmental targets.

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Exploring the IT GuidanceClarification on Procurement

• Require a strategic approach to procurement that allows the GC to operate as an enterprise.

• Need to align the intention of standardization and SOR guidance.

• Approach will be to form a Tiger Team to provide enhanced procurement guidance in the next few weeks.

• Solicitation for membership will begin shortly and will include central agencies and a representative from a large, medium and small department.

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Exploring the IT GuidanceData Centers, Networks, Email

These IT services are being pursued for delivery at theEnterprise level. Departments are not to consider these services when developing their proposals or when identifying and assessing potential savings opportunities.

1.Data Centers

Includes significant investment in acquisition, replacement of or upgrade to buildings/facilities, storage, and computing systems physically located in data centers or server rooms i.e. (servers, platforms, etc.), hosting environments (mainframe, midrange, web, etc.).

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Exploring the IT GuidanceData Centers, Networks, Email

2. Networks *Includes significant investment in acquisition, replacement of or upgrade to:• Data infrastructure (WANs, LANs, WiFi, cabling, etc.). • Voice infrastructure (VoIP, PBXs, etc.).Note *

i. Secret Networks are in scope. Top Secret Networks are excluded.

ii. All procurement of network devices must be done through Networking Equipment Services (NES).

iii. Departments to transition and use the PWGSC Internet Service offering.

3. Email

Includes significant investment in acquisition, replacement of or upgrade to email computing systems i.e. transmission, instant messaging, scheduling and enabling directory services, etc.

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Exploring the IT GuidanceData Centers, Networks, Email …..Cont’d

Procurement and related projects should not proceed

independently without further guidance

a) Procurement and related projects currently underway and already approved by TBS:

• May proceed as approved.

• Projects not funded though TB submissions must be identified and CIOB guidance sought.

• Must not have committed contract periods longer than 24 months from contract award (if on the verge of signing a contract).

• Must ensure no additional funding allocation for project over-runs, timelines or scope changes.

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Exploring the IT GuidanceData Centers, Networks, Email …..Cont’d

b) Procurement and projects being planned or proposed or not funded through TB submissions:• If short-term - must be identified and CIOB guidance sought.

• Must engage PWGSC first to consider service delivery or partnering opportunities. This option to be pursued immediately.

• May consider service delivery or partnering opportunities with other GC partners if PWGSC is unable to accommodate. CIOB to be advised on alternatives being sought or if necessary to fulfil urgent mission-critical needs within the next 3 months.

• Must not have proposed contract periods longer than 24 months from contract award.

• If long-term - either should not be pursued or alternatively, put on hold for 6 months in anticipation of an Enterprise strategy and solution being available.

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Exploring the IT GuidanceDesktops - Taking Stock

• Over 390,000 User Computing Devices (desktops and mobile devices) in the GC today.

• Decentralization of support and acquisition requires approximately 5000 FTEs:• Over 100 service support desks.• Inconsistent service level agreements.• Little to no cross-departmental resource or knowledge sharing.

• Lifecycle management not applied consistently across the GC enterprise (variations from 3 to 5 year renewal cycles).

• Today’s baseline costs are estimated at $3,000 per desktop (approx $1.2 billion per year) - significantly above industry benchmarks.

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Exploring the IT GuidanceDesktops - Estimated Savings

• Deloitte conservatively estimates aggregated GC cost savings of at least $123 million.

• How?• Standardize hardware and software (devices, images,

etc.).

• Reduce the number of “devices to users” ratio.

• Centralize asset management and procurement.

• Consolidate services within a portfolio or cluster (helpdesk, desk side support, imaging, distribution, etc.).

• Tier and rationalize IT support levels.

• Extend the asset lifecycle (from 3-4 to 5).

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Exploring the IT GuidanceDesktops - The “Tiger Team”

• Membership:• TBS, PWGSC, HRSDC, DND, CRA, AAFC, HC, DFAIT,

TC, RCMP, CSC.

• Mandate (to be reviewed with the Tiger Team members):• Define an end-user computing costing template to help

guide departmental SOR targets.

• Help define, communicate and implement guidance on user computing and mobile devices for the GC.

• Help define, communicate and implement an action plan for departmental implementation.

• Review the H/W and S/W procurement.

• Facilitate helpdesk and desk side support discussions.

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Exploring the IT GuidanceDesktops - Next Steps

• Harvest departmental desktop and service cost benchmarking material (strategy, spreadsheet, metrics, key findings).

• Tiger Team to assess findings, scale the material and provide costing guidance (templates, process) to the CIO community.

• Initiate discussions with portfolio departments and clusters:• The TBS SOR Opportunities Office will facilitate match-making

efforts.• Facilitate discussions on desktop and desk side support

services.

• Provide Enterprise Direction:• Define a standardization blueprint (H/W and S/W).

• Define a sourcing strategy.

Timelines will be vetted with the Tiger Team22

Exploring the IT GuidanceERP Systems - Finance

IT systems are being pursued for GC wide implementations. Investments in ERP systems should be halted unless supported by CIOB. Departments are to consider their ERP systems whendeveloping their proposals or when identifying and assessing potential savings opportunities.

Finance systems:• Departments must move to SAP with GC-Wide standard configuration.• Opportunities for SAP consolidation (systems and infrastructure) must be

considered.• Departments must follow OCG standard processes and data emerging from the

Common Enterprise Data (CEDI) and Financial Management – Business Processes (FM-BP*) initiatives.

• Financial Management Business Solution Project initiated (FM-BSP, transformation project) and will determine the GC-Wide standard configuration.

• PWGSC is currently gathering SDA community requirements and all SDAs must participate.

• Ancillary Financial systems should also be standardized and consolidated.

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Exploring the IT GuidanceERP - HR Systems and Processes

• Departments must implement the GC Standard Configuration of PeopleSoft and standardized satellite systems based on the delivered Human Resource Business Solution (HR BSP):• Supporting standard data, systems, processes (CHRBP).

• Moving to interoperable systems.

• Membership includes: AAFC, DFO, HC, PHAC, CFIA, TBS.

• Departments must seek opportunities to cluster with other departments: • Based on common requirements.

• Based on legislative mandate.

• SDA community partnership evolving (32 HRIS departments transforming to single instance of Peoplesoft).

• Departments must assess all current HR systems for future consolidation to the GC standard configuration:• Migrate existing solutions towards the GC standard.

• No procurement of HR IT solutions and IT enabling services without first consulting CIOB. 2424

Exploring the IT GuidanceOther Administrative Systems - General

• Departments should use enterprise licences for the following corporate administrative systems: • Electronic Document & Records Management Systems.

• Enterprise Search of Web Content.

• Enterprise Search of Internal Repositories.

• In cases where enterprise licences are not currently available, work will be initiated (via Tiger Teams) to develop requirements to establish enterprise licences: • Web Content Publishing/Management Systems.

• Correspondence Management Systems.

• Departments should not pursue independent initiatives or outsource these administrative systems independently.

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Exploring the IT GuidanceATIP - Taking Stock

• A sample of 105 institutions shows that 59 (56%) use software provided by Privasoft:• 45 of these using the new web based applications.• 14 still using the previous version no longer supported by

Privasoft.• The 2nd largest category shows that 28 institutions still

process ATIP requests manually (paper based), and use standard applications to record case management actions (Word, Excel, etc.)

• The remaining 18 institutions surveyed used 10 different applications, including AINS (5), Ricoh (3), Epixus (3).

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Exploring the IT GuidanceATIP - Opportunities

• Expect significant savings through retirement of various applications (maintenance and upgrade costs, training, licensing).

• Low upstart costs if vendor builds to offer the “service”.

• Unified, consistent government-wide approach and reporting.

• Reduction of delays (more and faster electronic processing methods), users fully trained for the same system across government.

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Exploring the IT GuidanceATIP - Vision

• An enterprise-wide case tracking management system with:

• Consistent content standards and functionality.

• Consistent reporting capabilities, including posting summaries of completed requests.

• Maximized processing methods to accept and respond to requests electronically; process records; and consult internally and externally through electronic means as much as possible while ensuring the confidentiality and security of the information.

• A Tiger Team will be formed to identify common business, data and configuration requirements based on work already underway in business process / workflow development.

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Exploring the IT GuidanceCase Management – Taking stock

GC has a very large applications base: • IT spend is $5.2 billion per year; 6-7% of the government’s

gross operating expenditure. • 40,000 FTE’s identified in Internal Services, i.e. HR,

Finance, Materiel Management, Information Management and IT.

• Over 12,000 applications are for internal services and over 4,000 serve Canadians (Aging IT).

• Examples of synergy areas:• Human Migration area: Global Case Management Systems

currently in production at CIC; also of use to CBSA, IRB and PPC.

• Health Care Provision: suite of Health Information Systems currently in production at DND; also of use to CSC, RCMP, HC, CIC and VAC.

• Small Departments and Agencies looking to drive synergies at business requirements and systems level.

Exploring the IT GuidanceCase Management - Guidance

• Drive integration, standardization of business processes and data models within a business objective portfolio.*

• Explore leveraging common Case Management Solutions (CMS) within a business objective portfolio to support common business processes.

• Leverage COTS solutions where possible and minimize customization. Adapt business processes where possible.

• Any new investment in case management systems should factor ability to support broader requirements of the whole business portfolio.

• TBS CIOB Opportunity Office should be consulted before any new investment in CMS is made to determine if partnership opportunities can be leveraged.

* Business objectives as defined in the Aging IT systems analysis 30

Exploring the IT GuidanceHealth Information Systems – Taking Stock

• Federal government directly provides or purchases health services. There is a need to collect, use, store and share health information with other health jurisdictions in a secure manner.

• Various departments have made investments in health information systems.

• The Federal Healthcare Partnership (FHP) has identified that there is a potential for significant savings if organizations work together.

• A high level conceptual Enterprise Architecture Plan (EAP) identifies scope and services required to realize vision.

• All health jurisdictions are adopting pan-Canadian standards that will allow for the secure sharing of health information.

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Exploring the IT GuidanceHealth Information Systems - Approach

• Take into consideration: • FHP EAP, Canada Health Infoway Electronic Health Record

Blueprint and associated standards; • The suite of DND health information applications and related

technology solutions currently in development and use; and• The telehealth capabilities and arrangements that have been put

into place by Health Canada.

• Assess other department-specific health information systems such as health claims processing, medical assessments, health surveillance and case management as candidates for further consolidation.

• In every instance, departments and agencies should not undertake any procurement for health information system software, solutions, outsourcing or IT enabling services, without first consulting CIOB.

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Exploring the IT GuidanceHealth Information Systems – Approach (cont’d)

• ADM Steering Committee on EHR Solutions (established):

• Sets priorities and identifies areas for collaboration.

• Tiger Team (established):

• TBS CIOB, DND and HC. Assist with SOR guidance.

• Health Information Management Working Group:

• Representatives from TBS CIOB, DND/CF, VAC, CIC, CSC, RCMP, PHAC, HC (FNIHB), HRSDC, TC, Coast Guard (limited personal health information collected). Others?

• Forum for sharing knowledge and experience.

• Architecture (scope), high level business case to be made available.

• Links with Canada Health Infoway established.3333

Exploring the IT Guidance Gs and Cs Systems

• Grants and Contribution System now being implemented at AAFC is currently being assessed and may provide an opportunity for broader use among departments.

• Objectives are to maximize commonalities in process, data and system configurations requiring an enterprise governance structure for decision-making.

• Vision (where possible) is to rationalize and consolidate departmental applications to reduce the system footprint around a limited number of clusters of operations (i.e., group of departments ). These enterprise applications will interface with the GC Financial System(s).  

• The Centre of Expertise on Transfer Payments (CoE on TPs) supported by CIOB will be leading a project to identify common business, data and configuration requirements for Gs and Cs program delivery.

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Exploring the IT GuidanceInteroperability

• Interoperability: a standardized environment where people, processes and systems work in such a way that the right information is available to the right people at the right time to meet their business objectives.

• A Project Based Approach: Interoperability Centre Of Excellence (iCOE) underway within the CIOB/TBS will deliver a strategy, blueprint and roadmap for whole of government interoperability.

• Work underway includes functional prototypes focused on back-office interoperability, an assessment of the National Information Exchange Model (NIEM), and the development of RFP for an Enterprise Service Bus.

• Tiger Team membership includes AAFC, CSPS, HRSDC, PWGSC, Public Safety, RCMP and TBS.

• Departments should not pursue interoperability solutions, including service buses, without consulting CIOB.

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Exploring the IT GuidancePrinters

• Consolidation and optimization of printers can reduce costs by 10 to 30%.

• Areas of reduced departmental costs:

• Lease costs for equipment.

• Procurement costs for equipment.

• Consumables (paper, ink, toner etc.).

• Repair and support costs.

• Target end state: departments aim to achieve as high an “employee to print unit” ratio as possible:

• FSDS requires 8:1.

• PWGSC recommends 10-15:1 when establishing new or renovating office space.

• Ratios of 25-30:1 are not uncommon in the private sector and in other governments.

• The greatest savings are achieved when the printing unit definition is expanded to include: faxes, scanners and photocopiers as well as MFDs, desktop and network printers.

• The recommended process for reducing print units is detailed in the OGGO guideline for FSDS Target 8.7: Achieving the printing unit reduction target. 3636

Exploring the IT GuidanceSecurity

• Security is an integral component of internal and shared services and program activities and encompasses more than IT.

• It is essential that in examining direct program spending, we ensure that potential reductions in expenditures do not compromise the GC’s security posture:

• The Security Tiger Team will be evaluating security-related proposals (e.g., migration to SCNet-E) for cost savings as well as non-security-related proposals to ensure that they do not unduly compromise the department’s or the GC’s security posture.

• Bottom line: We need to strike the right balance between reducing costs and providing the appropriate level of security.

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Exploring the IT GuidanceSecurity

The enhanced Security guidance is supported by the following target vision statement:

Move to GC-wide shared security services, consolidate, cluster, and reengineer how departments approach risk identification and associated mitigation measures (DSP) so that efficiencies and cost savings can be realised while improving the overall security posture of the GC.

Federal CS Population Realigning for the Future

CIO Council July 20, 2011

Canada Aviation and Space Museum

Presenter: Robert Graham, CIOB, Community and Collaboration Division (CCD)

CS Population by Age & Years of Service

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35+ 211 54 78 59 20

30-34 656 32 390 189 40 5

25-29 1261 19 436 535 205 55 11

20-24 1297 9 273 579 281 107 40 8

15-19 1501 4 131 542 419 255 114 33 3

10-14 2502 3 333 705 547 447 280 144 40 3

5-9 3613 1 271 909 817 665 533 266 122 25 4

0-4 2796 2 213 654 491 455 412 308 153 82 22 4

Totals 13837 2 214 928 1737 2117 2458 2754 2214 1041 314 58

Totals LT 20 20-2425-29

30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+

Employee Age

Ye

ars

of S

ervi

ce

Average Age at Retirement

Average Years of Service at Retirement

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Realigning CS Roles

InfrastructureOperations54% Aps Dev

31%

Other 15%Project Portfolio Mgmt, Planning, IM, Enterprise Architecture, Data Admin, Client Portfolio Mgmt, Security

Client Portfolio ManagementProject Management Database AdministrationEnterprise ArchitecturePlanning Security

Applications DevelopmentInfrastructure Operations

Increasing

Decreasing

* based on Corporate Executive Board predictions

Current CS Allocation Anticipated Future Direction*

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Some Take Aways

• Roughly 400-550 CSs are expected to leave the public service each year during the next decade.

• Realignment of roles will be driven by the speed of standardization-consolidation-re-engineering at the working level as well as financial pressures.

• Realignment represents the largest change initiative exercise for the federal CS community as a whole in its history.

• We need to conceptualize “the IT organizations of the future” to refine planning and ensure that we can meet evolving needs.

• We have some tools that can facilitate change (collective staffing, generic organizational products, competency profiles).

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CIO Executive Summit FeedbackWorkforce Evolution:

• Focus training and development on core (behavioural) competencies & business skills in view of changing skill needs.

• Expand our community approach to recruitment/resourcing – use enterprise approach and leverage collectives.

• Target recruitment based on new skill requirements.

• Use generic work descriptions and competency profiles to standardize/facilitate movement across organizations.

Our Role & Leadership:

• Clear articulation of vision from Federal CIO (intent, mission, effort, road map, end state, etc.).

• Regular communications – engage staff at all levels through process.

• Engage clients and partner with other organizations including union, OCHRO.

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Early Priorities Defined by IT Community Development Steering Committee

• Rotational Pools.

• Training on Change Management.

• Clear Messaging for Staff.

• Clear Vision of the Future.

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Open Microphone for Questions

Questions and Answers are being

captured and will be posted on GCPEDIA

SOR under the FAQ.

Please identify yourself and the

department you represent when posing

questions at the microphone.

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