New Jersey Department of Labor Unemployment Insurance Modernization Program July 2003 Strategic...

New Jersey Department of Labor

Unemployment Insurance Modernization Program

July 2003

Strategic Plan

2

Contents

Executive summary

3

How have we reached this point?

22

The purpose of UI Modernization

29

The program of work

37

Organizing the program

75

Challenges to delivering UI Modernization

106

Under separate cover…

Appendix A: Project outlines

Appendix B: Timeline options for NJ SUCCESS build

Appendix C: Use cases

Appendix D: RFP crosswalk

Appendix E: Program risks

3

EXECUTIVE SUMMARY

NJDOL’s vision for UI Modernization is to deliver revolutionized UI services while maintaining the

integrity of the Trust Fund

To deliver this vision, NJDOL needs a clear plan and disciplined delivery mechanisms

Challenges to delivering UI

Modernization

How have we reached this

point?

The purpose of UI

Modernization


The program of work

4

The strategic plan - backgroundThis document, the strategic plan, is the last in a series of planning deliverables for modernizing unemployment insurance (UI). As part of this effort, we have previously delivered:

Baseline description

– A review of current UI processes and technology

Business process conceptual design

– The UI business processes needed for the future state

Technical architecture and interfaces

– The technical architecture (and interfaces) needed to support the future business processes

This last piece, the Strategic Plan, describes a proposed plan, timeline, resources, organization and associated challenges for the UI Modernization program.

Crucially, this strategic plan also defines objectives and measures for program success. In the last chapter, we add critical success factors for UI Modernization which define the conditions we must create to give the program the best chance of successful delivery.

This executive summary sets the stage for the plan, the activities, and approaches needed for UI Modernization to become a resounding success.

Executive Summary…

5

Measuring success

This strategic plan differs from many others because it emphasizes

Development of objectives and measures

Monitoring the delivery of value (business benefit), using the measures

Objectives and measures provide a more focused and targeted communication of our business needs than a traditional scope description and requirements. This will be of benefit to internal stakeholders as well as to vendors.


Strategic Plan

Technical

Architecture

Business Processes

Vision

Ideas Key points from

the Vision

PrinciplesKey points affirmed by the Project Team

ObjectivesFocused principles

MeasurementsDetermining

objective fulfillment

The view of the future

Vision


the Vision






RequirementsSystem and Process

details needed for achievingthe Objectives

Strategic Plan

Technical

Architecture

Business Processes

Vision


the Vision






Vision


the Vision








6

Strategic plan requirementsEarly on, we articulated a number of conditions, or requirements, for UI Modernization that impact the strategic plan, the recommended timeline and estimated costs:

The program should follow best practices. The best practices agreed are:

– Using a rapid application development (RAD) methodology

– Implementing a Program Management Office to manage the delivery of the whole portfolio of UI Modernization projects

The plan should include projects to deliver early value and thereby maintain program momentum.

– This condition is met by the foundational projects (see ‘the program of work’ chapter)

The program should follow a graduated rollout, running in parallel the current UI systems and the new system, the New Jersey State Unemployment Compensation Claimant and Employer Service System (NJ SUCCESS)

– The proposed ‘geographic’ rollout approach supports this condition (see the interfaces report for more information)

We should use State resources as much as possible

– All the priority foundational projects will be developed by State staff

– Knowledge transfer and role shadowing will be part of the required approach to NJ SUCCESS build, to be delineated in the RFP

The design, development, testing and implementation of NJ SUCCESS will require the services of a vendor – with an anticipated start date of 10/1/04


7

Strategic plan assumptions

The strategic plan approach, recommended timescales and indicative resource requirements rely on the following key assumptions being met:

Our team has the knowledge and experience to participate in appropriate management and technical positions

All vendors will provide knowledge transfer and hand over development responsibilities to State employees over the balance of their assignments

– Approach to hand over to be defined as part of procurement strategy

– Approach will take into account impact on any system warranty and overall risk

We will access funding (through Reed Act monies) to accomplish the modernization effort

We will utilize contractors to supplement State staff - ongoing

We will successfully accomplish change management in parallel with developing the new IT software

We will use OIT as an internal IT vendor (particularly for the foundational projects)


8

Scope of the UI Modernization program

UI Modernization is one of the largest initiatives ever undertaken by the Department of Labor.

The scope of UI Modernization is broad. It includes:

A complete, detailed design and implementation of improved unemployment insurance business processes

Creation of a new benefits IT system (NJ SUCCESS)

Change management for the new processes

Organizational and cultural changes

Changes to interfaces with many related program areas

– Workforce New Jersey programs, State Plan Disability, Employer Accounts, etc


9

UI Modernization recommended timelineExecutive Summary…

HR PROJECTS

CULTURE CHANGE PROJECTS(E.G., LABOR-MANAGEMENT WORKSHOPS, CAREER PATH DEFINITION…)

DEVELOPMENT & TESTING* (RAD – ITERATIVE)

VENDOR BID EVALUATION

RFP & PROC’MT STRATEGY

IVR, Phase 2

ODSFOUNDATIONAL PROJECTS(see slides 49 to 55)

NJ SUCCESS PROCURE, BUILD & ROLL-OUT(see slides 56 to 65)

UI BUSINESS CHANGE PROJECTS(see slides 66 to 68)

STATE IT BUSINESS PREPARATION(see slides 67 to 71)

IVR

DIGITAL RECORDING

EPAYMENTS

PREP & DESIGN*

TRAINING & ROLL-OUT*

HR REVIEW

ORG & SKILLS REVIEW

ORG CHANGE PROJECTS

CUSTOMER SERVICE IMPROVEMENT PROJECTS(E.G., EMPLOYER TRIAGE, TRAINING, ECORRESPONDENCE…)

IT SKILLS DEVELOPMENT(FOR DESIGN, DEVELOPMENT & MAINTENANCE OF NJ SUCCESS)

Q1Q3 Q4Q1Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3

2003 2004 2005 2006

Phase 3?

* Indicative only; to be confirmed with implementation vendor

PROGRAM MANAGEMENT(see slides 72, 86 to 103)

AGREE SUPPORT ORG’N

IT KNOWLEDGE TRANSFER(VENDOR TO STATE)

PROGRAM MGT & ASSURANCE VENDOR CONTRACT MGT, RESOURCING, CHANGE MGT, LEAD DELIVERY ASSURANCE

BUSINESS DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, BUSINESS ARCH DESIGN & ASSURANCE

IT DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, IT ARCHITECTURE DESIGN & ASSURANCE, HARDWARE AND SOFTWARE PROCUREMENT

EXTERNAL INTERFACES CHANGE MGT

Q1 Q2

2007

Phase 1 Phase 2

USE CASES

ONGOING OPERATIONS, SYSTEM MAINTENANCE AND PARALLEL INITIATIVES

10

The program of work (page 1 of 2)UI Modernization consists of five workstreams:

Foundational projects

NJ SUCCESS procure, build and roll out

UI business change projects

State IT business preparation projects

Program management

The first four workstreams are logical groupings of projects. These projects cover the major activities required for the subsequent phases of UI Modernization.

Underpinning these four workstreams is the overall program management workstream. This comprises the key set activities required to ensure that all the components of the UI Modernization program are working in sync – i.e., that requirements are met, to deliver our objectives and ultimately to deliver our vision.

Program management tasks will include program control, leadership and providing support and quality assurance to every project. The PMO will also ensure that change is pro-actively planned, so that transitions are smooth for all stakeholders involved.

Establishing an effective program managementworkstream is crucial to maintaining control of our own destiny.


11

The program of work (page 2 of 2)

Foundational projects are IT development projects, separate from the core NJ SUCCESS system, which are planned to be delivered by State teams. These projects include digital recording (which is intended to provide improved supervisory review and staff training and therefore better customer service); direct deposit option for UI benefit payments; creation of an operational data store, data dictionary, data warehouse and IVR consolidation. As currently planned, State staff will develop and implement key priority foundational projects before the construction of the NJ SUCCESS system.

NJ SUCCESS procure and build includes the development of the RFP, issuing the RFP, procurement, and award. A key assumption is that we will partner with a vendor that will adopt a Rapid Application Development (RAD) approach to building NJ SUCCESS. We will retain control of delivery and provide resources to enable truly successful knowledge transfer.

UI business change projects will implement culture, organization and customer service improvements. Some projects will be independent of the IT development workstreams; others focus on capitalizing on IT improvements. These projects will run over the lifetime of the UI Modernization program.

State IT business preparation projects will ensure that we, the State, have the skills, organization and capacity to partner with the vendor and to take over the system when it is in production. These projects will run over the lifetime of the UI Modernization program.


12

Recommended timeline highlights Program Management Office set up and implemented by 9/1/03 NJ SUCCESS RFP ready for issue by 02/28/04 NJ SUCCESS vendor starts by 9/30/04 NJ SUCCESS designed, developed and ready for a phased

implementation by 9/30/2006 Priority foundational projects: most completed by 9/30/04

– 4 operational data store (ODS) projects

– 2 of the 5 IVR projects

– epayments (probably direct deposit of benefit payments)

– implementation of digital recording UI business change projects

– ongoing through the implementation of NJ SUCCESS State IT business preparation projects

– ongoing through the implementation of NJ SUCCESS

We can achieve this timetable only if the assumptions previously listed are followed


13

Program governance

The UI Modernization program will require strong, pro-active program governance to ensure that all the projects together continue to deliver to our vision and objectives. UI Modernization will require three levels of governance:


Pro

gra

m

lev

el

Str

ate

gic

le

ve

lP

roje

ct

lev

el

Program management office (PMO)

• Business architect• Resource management• Communications & change management• PMO support• Vendor management (to be decided)

Program Manager

Program Steering

CommitteeProgram Sponsor

Director of UI


workstream

Procure & build NJ SUCCESS workstream

UI business change

workstream

State IT business

preparation

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

14



Program Manager

Program Steering


Director of UI


workstream


UI business change

workstream

NJ IT workstream

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

Strategic level program governance roles


Program Sponsor role:

- Has overall responsibility for realizing the

benefits of the program within the specified

budget

- Demonstrates a strong commitment to

making the change happen

- Identifies the implications of business

strategy changes on the program

- Resolves problems and takes decisions

- Authorizes minor scope changes

- Integrates with other programs and key

stakeholders

- Approves the project plans

Program Steering Committee role:

- Advises on departmental policy/issues

and fit of solution (liasing with IT

Governance Board as appropriate)

- Approves deliverables and vendor

payments

- Resolves issues that cannot be resolved

through prior escalation processes

- Authorizes major scope changes that

impact on realization of benefits

- Provides a Quality Assurance function

- Provides guidance to the program

15

Steering Committee members have specific oversight roles




Program Manager

Program Steering


Director of UI


workstream


UI business change

workstream

NJ IT workstream

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

Steering Committee oversight roles:

Overall Deputy Commissioner,

Asst. Commissioner, Income Security

Budget & contract Director and Chief Financial Officer, Accounting

Technical design Department CIO

UI business design Assistant Director of UI Operations

Assistant Director of Programs, Appeals and Quality

DDU design Asst. Commissioner, Disability Services

Security design Director, Office of Internal Audit

Key partners:

Asst. Commissioner, Workforce NJ

Director, Employer Accounts

Asst. Commissioner, Labor Planning & Analysis

OIT Chief of Staff

Director of Human Resources

16

Program level program governance…




Program

Manager

Program Steering


Director of UI


workstream


UI business change

workstream

State IT business

preparation workstream

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

Program Manager role

- Responsible for ensuring the program is

delivered

- Liases with key stakeholders

- Ensures that all projects within the

program remain integrated and aligned

- Ensures that appropriate resources are

made available to the program

- Reviews progress, risks & issues with

Project Managers

- Reports progress & escalates issues as

defined, to Sponsor & Steering

Committee

- Facilitates all essential events

- Intervenes where necessary

17

… supported by a delivery assurance group (the PMO)




Program Manager

Program Steering


Director of UI


workstream


UI business change

workstream

Projects

Projects

Projects

DOL CIO

Technical Architect

NJ IT workstream

Projects


Technical & Business Architects

Program Management

Executive reporting

Schedule management

Issue reporting

Change control

Risk reports

Team management & support

Vendor performance analysis

Project control processes

Vendor, contract & work pkg management processes

Communication strategy

Develop win/winsEngage key stakeholdersBuild trust and commitment

Guardians of Modernization vision

Identification & management of project dependencies

Project delivery checkpoints

Standards management

Technical assurance

Quality Assurance

Test planning & oversight

Successful vendor management requires active ‘relationship management’ that spans all stages in the program lifecycle

18

UI Modernization challenges

Risk of failure is inherent in a project of this magnitude. Changing priorities, fluid funding, and personnel changes at the executive level always put a program at risk, but the major challenges we believe we face in UI Modernization include:

• Locating experienced and skilled staff to manage an effort of this size

• Ensuring that resources with the right knowledge and skills are participating with and building the IT projects

• Overcoming organizational resistance to change

• resistance to how we deliver the program as well as to implementing NJ SUCCESS

• Ensuring that vendor(s) understand and are aligned to program objectives

• Maintaining commitment to change throughout the organization over the next 3 years

• Delivering rapidly and effectively within sometimes bureaucratic decision making processes

Success of UI Modernization will be most likely when theright people with the right skills are in the right role.

19

Get the resourcing right

At this stage of UI Modernization, we have the opportunity to make preparations that many programs fail to invest in: getting the resources right, up front.

NJDOL staff are experienced individuals at UI operational management activities. However the skills required for a complex IT enabled business change program are different.

Staffing the program too highly with people who have not delivered a complex IT enabled business change program is likely to cause:

less effective delivery, due to staff requiring learning curve activities

an increased error rate

increased likelihood of unrecognized errors

– impacting the quality of deliverables / functionality

– leading to undiscovered rework and program slippage

a content and decision vacuum during critical early stages

– i.e., weak leadership on the technical and business architectures

– increased risk of the NJ SUCCESS vendor effectively driving the program rather than State

20

Now let’s make it happen!

Over the past 7 months - developing new UI processes, defining a new technical architecture and now, building this plan – we have built great positive momentum.

As the name of the new benefits system – NJ SUCCESS - conveys, we have committed to build a modernized unemployment insurance business that meets the needs of both customers and employees.

We would be suggesting another name for the system if this commitment were not absolute.

We hope that you enjoy reading the rest of this plan to deliver

our vision for UI Modernization.


21

Contents

Executive summary

3


22


29

The program of work

37


75

Challenges to delivering UI Modernization

106

Under separate cover…

Appendix A: Project outlines

Appendix B: Timeline options for NJ SUCCESS build

Appendix C: Use cases

Appendix D: RFP crosswalk

Appendix E: Program risks

22

HOW HAVE WE REACHED THIS POINT?





Modernization


point?

The purpose of UI

Modernization


The program of work

Background to UI Modernization

Approach to developing the strategic plan

23

Background to UI Modernization

Simply put, our mission in the Division of UI is to provide temporary wage replacement to support workers who lose their job through no fault of their own.

To accomplish this mission, we use processes, technologies, cultural tenets and organizational structures that in many cases are nearly 30 years old.

In 2002, the Division decided it was time to make some significant changes. There were a number of drivers:

The existing benefits system (LOOPS) was built in 1975 and has gone well beyond the typical life of a system of this type

The existing business processes were gated by the capabilities of the IT systems

Responding to legislative mandates was becoming more difficult

Customer expectations of customer service were (and are) ever increasing

– e.g. reducing the wait time on phone calls

Federal (Reed Act) monies became available – and could be used to revamp administrative capabilities


24

Starting the UI Modernization Program

With this mission in mind, the UI Division decided to launch the UI Modernization Program.

The first phase of this program (the planning phase) has allowed us to step back, rethink, develop a blueprint and outline a plan for modernization.

This planning phase has addressed both the business processand the technical perspectives of modernization and now concludes with a strategic plan for moving confidently and efficiently toward those goals.

Steps in the planning phase have included:

Developing an understanding of the current processes and systems

– identifying areas where we could improve processes or technology in the short run and implement these “quick wins”

Reengineering the UI business processes for the future

– through a consensus process that involved participants from across the entire UI organization

Developing a technical architecture that would support these future UI business processes

Producing a strategic plan for the remaining steps needed to achieve UI Modernization

– e.g. system development RFPs, cultural changes, etc.


25

Approach to developing the strategic plan (page 1 of 3)

The Strategic Plan is the last of the planning phase steps for UI Modernization.

It is built on key information developed in the first three steps - and a planning approach that defines a clear path to success and has six linked components:

Vision

Ideas

Principles

Objectives

Measurements

Requirements


26


By building from vision to measurements (and ultimately through to requirements in the RFP stage), we have been able to define the business processes, the technical architecture and the remaining steps (the Strategic Plan) needed for UI Modernization.

Strategic Plan

Technical

Architecture

Business Processes

Vision

Ideas Key points from the Vision



MeasurementsDetermining objective fulfillment


Vision








Strategic Plan

Technical

Architecture

Business Processes

Vision






Vision









27

Vision – the vision defines the future UI by describing, in broad terms, the key attributes and stakeholder characteristics for our claimants, employers, and employees.

Key Ideas - using the vision and the external and internal interviews, we identified key ideas. Some of these include:

– Revolutionary customer service

– Partnership with the workforce community

– A stable work environment

– Professionalism and respect to our customers and fellow employees

Principles - an affirmation of a key idea at a greater level of detail. An example:

– Make the customer experience easy, efficient and informed – so that each customer can make the right choices for themselves (e.g., access, payment and correspondence methods)

These principles helped to direct and define both the business processes, technical architecture and the program objectives

Objectives and measurements - through follow-up sessions, the vision and principles were used to identify the key objectives and their corresponding measurements. The objectives (based on the principles) provide the actions needed to achieve the vision. An example of one of our objectives and its corresponding measurement is:

– Objective: Get accurate data from the start and reuse it to avoid re-keying informationMeasurement: 100% of all data must be validated before it is entered into the system

Requirements - these are the details needed to fulfill the objectives. For example:

– Requirement: the system must capture all claimant information in a case folder

– Requirement: the case folder is available to all UI employees having appropriate security



28

Benefits of this approach

Some key benefits arise from the ‘vision to objectives’ approach:

All objectives have discernable and quantifiable measurements

All objectives support fulfillment of the vision

All requirements will be linked to specific objectives

– We will continue this approach when writing the RFP

This approach has also allowed us to define the projects/activities needed for the remainder of the UI Modernization Program. There are five integrated work streams:


NJ SUCCESS procure and build

UI business change

State IT business preparation

Program management


29

THE PURPOSE OF UI MODERNIZATION





Modernization


point?

The purpose of UI

Modernization


The program of work

Vision for UI Modernization

Program objectives and

measures

Summary business and

technical designs

30

Vision for UI Modernization

We will deliver revolutionized unemployment insurance services, while maintaining the integrity of the Trust Fund

At each point of customer contact, we will provide a fair, friendly and high quality service to every member of the workforce community

For claimants, we will help them to focus on reemployment by making the claims process timely, efficient, and informative. We will also help them to access related government services by improving referrals from UI, in partnership with the workforce community

For employers, we will simplify correspondence and improve our responsiveness. We will treat employers as partners in the provision of unemployment insurance

For staff, we will empower them to deliver superior service by ensuring a stable work environment, creating equal opportunities for career growth and providing appropriate tools and training to do the job. We will treat our employees with the same professionalism and respect they are expected to share with every UI customer.


31

UI Modernization objectives and measurements

In order to communicate, manage and monitor achievement of our UI Modernization vision, we have developed a comprehensive set of objectives and measurements.

These – still evolving - objectives and measures are contained in full in a MS Excel spreadsheet at Appendix F.

We will monitor the true business value derived from UI Modernization using these objectives and measures:

The business architect in the program management office (see slide 86) will be responsible for monitoring delivery against objectives and measures

For NJ SUCCESS, we will link every use case (requirements scenario) to delivery of one or more objectives

– Our vendor will therefore be held accountable to deliver technology that enables us to achieve our business vision, not just a technology solution

All UI Modernization projects will need to be justified in terms of how they help to deliver our objectives

– If a proposed project does not deliver sufficient UI Modernization value, we will not do it


32

Our objectives for UI Modernization (page 1 of 2)

Optimize staff resources by balancing workload across the state

Communicate clearly, in a way the customer will understand – including the language they understand wherever possible

Streamline communications using modern tools and encourage customers to use the same tools, particularly employers

Where needed, redirect inquiries to the right person to resolve a problem, first time

Improve responsiveness to customer (whether claimant, employer, or internal agency) needs

Treat our customers with respect and not as numbers

Get accurate data from the start – and reuse it to avoid rekeying

Employees will have access to all of a customer's non-confidential data (via their case file)

Apply rules fairly and consistently and maintain regard for due process

All new processes and systems must be flexible and easy to change

Access to UI is available 24/7

Ensure that staff have the tools and training they need to succeed

Make the Division of UI a fulfilling place to work


33

Provide a career path to employees

Use tools effectively to enable performance management, development and policy improvement

Ensure that our staff have the knowledge, tools and support necessary to deliver the best service they can

Maintain equally the integrity of systems, processes and finances

Maintain the integrity of the trust fund

Support initiatives led by our workforce partners through close co-operation and data-sharing

Ensure that claimants are aware of reemployment and other related services as early as possible

Prevent incorrect payments, before they happen

Allow our UI employees to create their own management reports

Promote customer self-service (via phone, web or email), while preserving in-person service for those who need it

Deliver timely, seamless service without sacrificing quality

Provide superior customer service


Our objectives for UI Modernization (page 2 of 2)

34

Business process conceptual design

The business process conceptual design defines the high level framework and blueprint for UI Modernization. See our earlier report for details.

Selected Interfac ing Agencies

Financial management

Performance management

Operations / process management

System managementIn

vestigatio

n

Inq

uiry / T

riage

Triage

Entry

Continued certification

Intake Determination

Determination

Re-determination

Lower-Authority Appeal (AT)

Higher-Authority Appeal (BoR)

Adjudication

Prevent overpayment

Triage

Entry

Continued certification

Intake Determination

Determination

Re-determination

Lower-Authority Appeal (AT)

Higher-Authority Appeal (BoR)

Adjudication

Prevent overpayment

Core Process

Organization and Culture

Business and Technical Enablers

Employer AccountsEmployer Accounts

TreasuryTreasury

BankBank

TDITDI

Workforce New JerseyWorkforce New Jersey

Attorney GeneralAttorney General

Dept of Human ServicesDept of Human Services

One Stop partnersOne Stop partners


35

Technical architecture and interfaces design

The technical architecture and interfaces reports define the recommended IT approach for delivering the NJ SUCCESS system to support UI Modernization. See the report for details.

Manage customer channels

Certify Appeal Control BenefitPayments

Support appeal

decision-making

Man

age

inve

stig

atio

ns &

deb

t co

llect

ion

Make payment

Man

age

appe

als

Man

age

cert

ifica

tion

Pre

sen

tati

on

Bu

sin

ess

Ap

plic

atio

nD

ata

Inquiry and Triage Intake Adjudicate

Capture inquiry

Capture inquiry

Decide automated eligibility

(claims w-o agents subset)

Support adjudication

decision making

Man

age

tria

ge

Man

age

inta

ke

Man

age

adju

dica

tion

Manage UI information

Web IVR In person

Provide UI performance information Provide electronic case file information Provide financial reporting information

Capture claim information

Capture claim information

Capture certification information

Capture certification information

Capture appeal information

Capture appeal information

Verify claimant validity


Capture adjudication information

Capture adjudication information

Identify potential fraud and overpayment

cases

Identify potential fraud and overpayment

cases




36

The name of the future UI system is NJ SUCCESS

NewJersey’s

State

Unemployment

Compensation

Claimant (and)

Employer

Service

System

37

THE PROGRAM OF WORK





Modernization

Scope and timeline


workstream

NJ SUCCESS procure and

build workstream

UI business change

workstream

State IT business



point?

The purpose of UI

Modernization


The program of work

38

Scope of UI ModernizationUI Modernization is one of the largest initiatives to be undertaken by the Department of Labor. To deliver the objectives, the scope is:

Activity summary: Detailed design and implementation of improved processes throughout the

organization Detailed design and implementation of NJ SUCCESS (single, replacement IT

system) Organization analysis and potential change to support the new processes

– towards reasonable consolidation An organization and culture change workstream focused on making UI a fulfilling

place to work Improvements to UI systems oversight, to increase assurance

Program scope: Unemployment insurance (standard, in-state benefits; interstate unemployment

insurance; combined wage claims; UCX and UCFE; and all extensions) Disability During Unemployment NJ-specific programs: Additional Benefits during Training, Self-Employment

Assistance Disaster Unemployment Assistance Trade Adjustment Assistance

The program of work

39

Scope of UI ModernizationOrganization scope: Entire Division of Unemployment Insurance

– Covering c. 1000 staff

– State-wide offices Board of Review Disability During Unemployment (DDU) unit Interfaces

– Where processes within UI Modernization scope interface with our partners, we will ensure the interface continues to operate as currently, or better

Technology scope: Modernization of all systems currently supporting the Division of Unemployment

Insurance, Appeals Tribunal and Board of Review– Key components include an operational data store (ODS) and data warehouse;

workflow and case management; business rules engine; virtual contact center

– See UI Modernization Technical Architecture for full scope Oversight of and support to infrastructure changes required to support the new

systems (for example, the Garden State Network) Implementation of system monitoring and support tools, making best use of

solutions already available in NJDOL and/or OIT

The program of work

40

UI Modernization recommended timelineThe program of work

HR PROJECTS

CULTURE CHANGE PROJECTS(E.G., LABOR-MANAGEMENT WORKSHOPS, CAREER PATH DEFINITION…)

DEVELOPMENT & TESTING* (RAD – ITERATIVE)

VENDOR BID EVALUATION

RFP & PROC’MT STRATEGY

IVR, Phase 2

ODSFOUNDATIONAL PROJECTS(see slides 49 to 55)

NJ SUCCESS PROCURE, BUILD & ROLL-OUT(see slides 56 to 65)

UI BUSINESS CHANGE PROJECTS(see slides 66 to 68)

STATE IT BUSINESS PREPARATION(see slides 67 to 71)

IVR

DIGITAL RECORDING

EPAYMENTS

PREP & DESIGN*

TRAINING & ROLL-OUT*

HR REVIEW

ORG & SKILLS REVIEW

ORG CHANGE PROJECTS

CUSTOMER SERVICE IMPROVEMENT PROJECTS(E.G., EMPLOYER TRIAGE, TRAINING, ECORRESPONDENCE…)

IT SKILLS DEVELOPMENT(FOR DESIGN, DEVELOPMENT & MAINTENANCE OF NJ SUCCESS)

Q1Q3 Q4Q1Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3

2003 2004 2005 2006

Phase 3?

* Indicative only; to be confirmed with implementation vendor

PROGRAM MANAGEMENT(see slides 72, 86 to 103)

AGREE SUPPORT ORG’N

IT KNOWLEDGE TRANSFER(VENDOR TO STATE)

PROGRAM MGT & ASSURANCE VENDOR CONTRACT MGT, RESOURCING, CHANGE MGT, LEAD DELIVERY ASSURANCE

BUSINESS DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, BUSINESS ARCH DESIGN & ASSURANCE

IT DESIGN & ASSURANCE VENDOR CONTENT MGT, DELIVERY ASSURANCE, IT ARCHITECTURE DESIGN & ASSURANCE, HARDWARE AND SOFTWARE PROCUREMENT

EXTERNAL INTERFACES CHANGE MGT

Q1 Q2

2007

Phase 1 Phase 2

USE CASES

ONGOING OPERATIONS, SYSTEM MAINTENANCE AND PARALLEL INITIATIVES

41

Timeline assumptions (page 1 of 3)

The timescales in the recommended timeline for UI Modernization are based on a set of working assumptions.

Should these assumptions not be met, then we will need to impact assess and adjust the timeline.

Key assumptions

The design, development, testing, and implementation of NJ SUCCESS require the services of a vendor – starting 10/1/04

The developed RFP attracts bids that meet our needs and a reliable vendor is selected

Required technical, business and program management resources are available

The ODS foundational projects and the first two IVR foundational projects are complete or near completion by the vendor start date

– These projects are on the technical development critical path

NJDOL and OIT staff receive training and development opportunities on the new technologies, tools and approaches so that they are experienced prior to vendor start

Where needed, we bring in external resources to augment in-house capabilities

The program of work

42


A program management structure to coordinate resources, relationships with the vendor(s), establish standards, policies and procedures is in place

– Both in terms of business controls and technical controls

The foundational projects’ resulting systems and the vendor’s architecture can be merged smoothly

– Both conform to the technical architecture

Resources with sufficient UI, DDU and interfacing agencies’ business knowledge are available

Business logic currently existing in all current UI systems is available

– Either documented or via a short reengineering exercise

Use cases developed for the NJ SUCCESS RFP, combined with policy and procedure documentation, cover the end-to-end logic required

The State improves the existing infrastructure appropriately (available network architecture, control and monitoring tools) in advance of NJ SUCCESS deployment

External systems/departments are cooperative and have enough resources to work on design and implementation of the new interfaces

The program of work

43


Scope is clearly managed and any changes occur smoothly

Training needs are analyzed early and just-in-time training provided

A transition plan for support and maintenance of NJ SUCCESS is created in advance, resourced, managed and followed

Few legislative changes requiring system development are passed, to distract resources away from UI Modernization

The program of work

44

Internal dependencies

The program timeline contains a number of internal dependencies for the program:

The design and build of the core NJ SUCCESS system will only be possible after the award of a contract – and therefore following a complete procurement process

An acceptable timeline, approach, cost and resource profile for NJ SUCCESS will be dependent on a well-crafted and timely RFP and vendor selection process

As scoped, the NJ SUCCESS design and build will work from an already-developed data architecture.

– If we do not develop the data architecture in advance, the design and build phases will be longer

Deployment of NJ SUCCESS will be dependent on timely delivery of in-house foundational projects (IVR and ODS related) as well as on vendor projects

The full set of culture and human resource change projects will be clear following:

– The labor-management workshops

– The organization and skills forecasting project

All of the dependencies above are contingent upon close management so that key quality and schedule milestones are achieved

The program of work

45

External dependencies

UI Modernization is also dependent on external agencies and events:

When needed, funding is requested and available to support internal and external UI Modernization spend

– In addition contingency funding is made available quickly, for risk mitigation/avoidance

The new approach of Rapid Application Development (RAD) and vendor performance control by acceptance measure are approved by all stakeholders

– Especially State procurement stakeholders

• See ‘Procure and build NJ SUCCESS workstream’ for more details

Sufficient good quality bids are submitted by the vendor community

Resource commitments from all agencies involved are both sufficient and honored

External interfaces are developed and modified in sufficiently timely manner to support development of NJ SUCCESS

The program of work

46

Phase 1 - Program preparation (Aug 2003 – Sept 2004)

The purpose of this phase is to gear-up in advance of the start of the NJ SUCCESS implementation vendor.

Proper advance preparation and creation of program management functions will help ensure that NJDOL keeps ‘control of its own destiny’ – a lesson learned from many recent projects.

Major milestones for phase 1 are:

Development and publication of the NJ SUCCESS RFP; then evaluation, selection and vendor start by September 2004

– A program QA review (see slide 96) should be planned just prior to vendor selection

Delivery of foundational projects key to NJ SUCCESS – e.g., operational data store (ODS) projects

Delivery of epayments and digital recording: two modernizations that can be delivered quickly and deliver immediate benefits

Launch and preparation of the program management office (PMO), in particular the technical architect and vendor management functions in advance of vendor start

UI business change projects: completion of the organization and skills review

– This will provide a clear picture of the ‘modernized UI organization’ in time for the detailed design of NJ SUCCESS (when estimates of geography, size, # seats, etc will be required)

The program of work

47

Phase 2 - Core delivery (Oct 2004 – Sept 2006)

The core delivery phase will begin when the vendor team starts work with the State and run through to state-wide implementation of the core NJ SUCCESS system.

Based on programs of similar scale, NJDOL has estimated a timeline of 2½ years for the core implementation. Milestones and activities within these parameters will be dependent on the approach proposed by the winning vendor.

In parallel to the NJ SUCCESS build, the following State milestones should be delivered in phase 2:

UI business changes (success measures to be defined) through

– Labor-management workshops (through to 2005/6)

– BPC unit change of focus towards prevention of overpayments (2004)

– Launching a UI specific skills training function (additional and complimentary to State training) (2004)

– Launching employer triage (2004)

IT skills improvement and knowledge transfer

– In conjunction with OIT, NJDOL will pro-actively plan and manage the training and on-the-job development of IT staff across NJDOL and OIT, so that the State is ready to take ownership of NJ SUCCESS in September 2006 (exact milestones to be determined)

The program of work

48

Phase 3 – Roll-out and supplemental delivery (October 2006 to ?)

We anticipate that there will be a phase 3 for UI Modernization, following the core delivery phase.

The roll-out of NJ SUCCESS is expected to take 6-9 months to fully complete.

The scope of phase 3 will become more apparent as the RFP is developed and through the detailed design work for NJ SUCCESS.

Preparation milestones for a possible phase 3:

Completion of NJ SUCCESS RFP development, February 2004

– What has been left outside core scope?

Completion of NJ SUCCESS detailed design, tba by vendor (est. late 2004)

– Have any extra requirements / ‘nice-to-haves’ been identified?

Q1 2006, as phase 2 closedown is on the horizon

– Scope and plan for phase 3? Budget? Resourcing?

The program of work

49

UI Modernization is organized into five workstreams

FOUNDATIONAL PROJECTS

PROCURE & BUILD NJ SUCCESS

UI BUSINESS CHANGE

STATE IT BUSINESS

PREPARATION

Projects Projects Projects Projects


Program Manager

The following pages describe the purpose and approach for each workstream.

Outlines have also been developed for each project (see Appendix A)

1 2 3 4

5

The program of work

50

Breakdown of the projects under each workstream

UI MODERNIZATION PROGRAM

The program of work

FOUNDATIONAL PROJECTS

PROCURE &BUILD NJ SUCCESS

UI BUSINESS CHANGE STATE IT BUSINESS PREPARATION

Operational Data Store

(4 linked projects)

IVR enhancement

(6 linked projects)

Digital Recording

epayments

Procure NJ SUCCESS

Build NJ SUCCESS

NJ SUCCESS interfaces change management

Roll-out NJ SUCCESS

Organizat’n & skills reviewIT skills development

Knowledge transfer

Agree the support organization

Establish UI specific training function

Creating overpayment prevent’n workflow in BPCJoint labor-management

workshops

Career paths in UI

Establish customer feedback

Customer service coaching

Claimant triage

Employer triage

Employer correspondence

51

Foundational projects workstreamFoundational Projects are fundamental precursors for NJ SUCCESS. They are IT development projects that we can develop separately from the core of NJ SUCCESS, using in-house resources. They provide three key benefits for NJ SUCCESS:

Visible early delivery of benefits and customer service improvements

– Digital recording project: will enable managers to review telephone conversations across intake, adjudication and appeal much more efficiently, thereby enhance on-the-job development.- digital recording will also improve the quality of customer service by providing better storage and retrieval of agency-claimant interactions for appeals

– Epayments project: direct deposit of UI checks will improve customer service and reduce the number of points of potential failure

Delivery of building blocks for NJ SUCCESS

– Operational data store, data dictionary, data warehouse and conversion of current UI & DDU data for the ODS: will create the data architecture in advance of vendor start, with some key benefits:- significantly reducing the overall program duration- putting our IT resources at the center of designing a key information asset (and part of the NJ SUCCESS system) that will provide value to the whole State- enabling interface migration to start much earlier

– IVR consolidation: by retaining ownership of IVR developments we ensure greater knowledge, skills and control within the State IT resources

Providing us with early experience (dry run) to inform planning for larger process of building NJ SUCCESS

– this early experience will be especially valuable for using RAD development processes

The Operational Data Store (ODS) Foundational Projectsare the highest priority for NJ SUCCESS.

The program of work

52

OTHER IVR UPGRADES

INTEGRATE TO NJ SUCCESS

RCC IVR CONSOLD’N

Foundational projects: timeline

Over the next few pages, we set out the proposed approach for the foundational ‘building block’ projects that will be delivered in-house…

Q1Q3 Q4Q1Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3

2003 2004 2005 2006

VENDOR START

UI, DDU DATA>ODS

DATA DICTIONARY

CREATE ODS

DATA WAREHOUSE

EPAYMTS

DIGITAL RECORDING

RCC DB CONSOLD’N

VXML

INTEGRATE IVRsIVR projects

ODS projects

The program of work

53

Key foundational projects: IVR consolidation

NJDOL has in-house capability to develop the IVR components of NJ SUCCESS. The IVR consolidation will consist of six project phases, starting in advance of the NJ SUCCESS vendor and continuing alongside core NJ SUCCESS development.

Both the current RCC Initial Claims IVRs and the Central Conversant Continued Claims IVRs will be consolidated by these foundation projects.

Purpose of IVR consolidation: the overall purpose is to create an overall virtual call center (a single entry point for all incoming calls to NJDOL, covering multiple local phone numbers), enabling correct routing and management of customer contacts by phone.

Phases:

Consolidate RCC databases to provide a basis for future virtual handling of initial claims

Prototype use of Voice XML (VXML) technology alongside existing continued claims certification IVR / Web solution

– to prove VXML technology approach and provide initial definition of VXML interface for NJ SUCCESS

– This project is not on critical path for IVR consolidation and so schedule may change

Evaluate and upgrade existing IVR equipment to enable production deployment of VXML

Consolidate three current RCC IVRs to a single location

Develop an consolidated IVR system with VXML for the virtual RCC

– Covering claims, inquiries, continued claims and interstate claims

– Note: this project is relatively standalone and could be delivered earlier than scheduled

Use VXML to integrate consolidated IVR system with NJ SUCCESS

For further details, see the diagram overleaf and Appendix A.

The program of work

54

Key foundational project: IVR consolidation

Steps (some may be parallel):

1 – Consolidate RCC databases into a single database

2 - Build prototype VXML bridge between Conversants and LOOPS (web continued claims)

3a - Move RCC to the same switch (1st step to virtual call center)

3b - Upgrade RCC and Conversant together on 1 platform(2nd step to virtual call center)

4 - Modify VXML bridge between Conversants and NJ SUCCESS’ web interface

5 - Merge RCC and Conversants into virtual call center

RCC RCC RCC

1

3a

InitialClaims

Conversants

ContinuousClaims

I BM

LOOPSMQWeb

VXML

2

VXML

VXML

Web

ODS

NJ

SUCCESSVXML

4

5

3b

CISCOSYSTEMS Switch

The program of work

55

Key foundational project: operational data store

NJDOL Operational Data

store (ODS)

Data Warehouse

(DW)

Data Mart 1

Data Mart 2

Common State metadata and Logical Data Model

NJDOL operational data store (ODS)

Data warehouse

(DW)

Data mart 1

Data mart 2

Common State metadata and logical data model

NJ SUCCESS

NJ SUCCESS will store its operational data within the NJDOL Operational Data Store (ODS).

Users will access historical information via the data marts.e.g. federal reporting; financial analysis

The program of work

56

Key foundational projects: operational data store

The Operational Data Store (ODS) is a rationalized, integrated view of data from LOOPS and other supporting systems providing a facilitative and transitional component for NJ SUCCESS.

This set of projects constitute the key foundational projects for NJ SUCCESS. They will provide a data environment for new system, as well as transitional data analysis capabilities from current UI data sources.

Key phases:• Extend State Logical Data Model to cover UI requirements

• Map source data to Logical Data Model

• Build Extract Transform and Load Routines for other data sources

• Load and evaluate Operational Data Store

Assumptions:• Resources with requisite skills and experience are available to start the project

• State data dictionary is completed or on its way

• Technical and functional experts with specific domain knowledge are available

• Required hardware,software, tools are either in place or can be brought in without impacting the project’s schedule

• External business, functional and technical experts are available to validateand test the model

• NJ SUCCESS vendor will validate fit of ODS with their planned solution and complete as needed (e.g., adding further data elements / mapping between data elements)

The program of work

57

Risks for the operational data store foundational projects

We will need to take care with the design and approach for the ODS, as there are some significant risks for this set of foundational projects:

Are there sufficient resources in the state with requisite skills and experience in the development of data models for enterprise scale information architectures

Implemented data model will not be accurate and could require both additions and more serious changes

– In format of the fields, relationships, etc.

Resulting ODS environment will not be scalable

– Will not be able to handle load of parallel transactions and/or keep the increased volume of data

It will be complex to integrate ODS security seamlessly with the rest of the UI systems environment security

– May need to administer several security domains

Implemented data model will not enable generation of all State requested reports

The program of work

58

Procure and build NJ SUCCESS workstream

The heart of UI Modernization is the implementation of modern technology throughout UI.

NJDOL has aggressive – but achievable – milestones for the procurement and build of NJ SUCCESS:

Procurement milestones:

RFP to be published by February, 2004

Award to be made and vendor to start by September, 2004

Build milestones:

NJ SUCCESS field implementation to start c. September, 2006

– An expectation will be outlined in the RFP and the date confirmed by the winning vendor’s proposal

Development will be timeboxed into short phases (e.g. 1-3 months), with review points before and after each

– Again, to be outlined in the RFP and confirmed in the winning vendor proposal

The program of work

59

EVALU-

ATIONRESPONSE

TIME

Procure and build NJ SUCCESS: timeline

Q1Q3 Q4Q1Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3

2003 2004 2005 2006

VENDOR STARTDEVELOP RFP

The timeline below is indicative only; it is based on an assumption that the successful vendor will propose a UI package-based implementation approach and also adopt RAD methodology.

Indicative timelines for different assumptions are provided in Appendix B.

SET UP

INITIAL DESIGN

DEV & TEST

DEV & TEST

DEV & TEST

DEV & TEST

DETAILED DESIGN

The program of work

DEVELOP USE CASES

INTERFACES CHANGE MANAGEMENT

TRAINING

ROLL OUT

TRAINING

ROLL OUT

DEV & TEST

NJ SUCCESS vendor

60

Procuring NJ SUCCESS: key messages

Building NJ SUCCESS is the heart of UI Modernization: it is a significant undertaking that will impact the whole of our UI organization for next 3+ years.

RFP development and vendor selection will fundamentally shape the chances of NJ SUCCESS being successfully delivered.

We will describe our requirements in use case form

– Use cases express the behavior of a system (functional requirements) in a manner that both technical and non-technical people can understand

– Give the vendor community (a) a much better understanding of the business benefits we are seeking and (b) provide us with a better mechanism to hold them to delivering those business benefits

We will need to define strong but flexible control mechanisms to manage changes during the NJ SUCCESS build

We will assess vendor bids financially in terms of total cost of ownership

– i.e., bid cost + likely maintenance costs + license costs + hardware/software costs + state team costs, etc

The program of work

61

Building NJ SUCCESS: key messagesWe are proposing Rapid Application Development (RAD) and an iterative delivery approach for NJ SUCCESS. This represents a new way of working for our staff and organizations; however it also provides us with some significant benefits: RAD will deliver timeliness and quality benefits to NJ SUCCESS

However we will need to be prepared to change established ways of working- preferably as early as possible

We will significantly reduce risk through up-front investment in an environment to control the vendor; such an environment will include: Developing strong program and vendor management capability

– Establishing common program standards, policies, procedures and tools

– Enabling a proactive approach from our program office and business/technical architect staff in addition to any agreed contractual terms

We also need to take care in the design for the implementation of NJ SUCCESS- to ensure that this does not disrupt customer service levels and can be rolled back if required

Finally, we will need to communicate and work closely with partner agencies, to ensure that their systems and processes transition effectively to the new ways of interfacing with UI.

The next 6 slides discuss our approach to procuring and building NJ SUCCESS in further detail

The program of work

62

The RFP will describe requirements in use case form

Describing the UI Modernization requirements in use cases increases the chances that bidding vendors will respond accurately to our needs. This is because use cases enable us to:

Express the behavior of a system (functional requirements) in a manner that both technical and non-technical people can understand the desired behavior

Provide a single common format to document both user requirements and system requirements

– This minimizes errors that can occur in translating user requirements (for non-technical audiences) into system requirements (for technical audiences)

– This enables a higher probability that misunderstandings between the business and the software team are resolved earlier (before the development is well under way) and so avoiding costly re-work late in the development lifecycle

In addition, creating the use cases early (during the RFP phase) will also provide us with dividends later:

They provide the basis for the whole software lifecycle including architecture, design and development

They help testing efforts by facilitating the creation of test cases

– Use cases already provide requirements in a sequence, so testers do not have to guess at the order and content of user actions

For further information on use cases, please see Appendix C.

The program of work

63

Partnering with the winning vendorWe are committed to procuring external vendor support to design, develop and implement NJ SUCCESS.

We wish to ensure that we conduct the program as a partnership; therefore we have planned the following mechanisms to help enable this to occur:

UI Modernization PMO. We will establish a strong program management office team, including a technical architect and business architect, to work with the vendor on all design decisions

Providing skilled state resources for RAD teams. Business analysts and IT staff will be freed up to work with the vendor teams

– We are already compiling a resource plan to enable this

– We will appoint a resource manager to manage the plan and to arrange training where needed to enhance the skills of state staff specifically for UI Modernization

Knowledge transfer. We will make knowledge transfer a success measure for the vendor, linked directly to payments

Use cases as a basis for relationship. Use cases will help us to ensure a clear, informed contractual basis for the relationship

– Use cases will be used to spell out the relationship between UI Modernization objectives, success measures and requirements in the RFP

Reuse UI Modernization planning phase deliverables. The deliverables so far (business process conceptual design, technical architecture and this strategic plan) will inform RFP development and be available for vendors.

The program of work

64

Rapid application development (RAD)

We intend to follow a rapid application development (RAD) methodology for UI Modernization.

Rapid application development is an industry best practice for developing modern IT systems.

We anticipate that RAD will provide us with two major benefits for UI Modernization:

We will be able to build NJ SUCCESS and the foundational projects within far shorter timescales (and more cost effectively) than is possible under a traditional ‘waterfall’ development model

We will be able to undertake co-operative, iterative development of functionality (with joint state and vendor teams), thus enabling the final system to be as close as possible to our requirement

The program of work

65

RAD is a fundamentally different model for IT development

Analysis

Specification

Unit Test

Integration Test

System test

Acceptance

Development

Design & Build

Unit Test

Integration Test

RAD model

Business Study

Feasibility Study

Definition

System Design

Detailed Design

Coding

Traditional ‘waterfall’ model

System Test

Acceptance Test

Delivery

Roll-out

The program of work

RAD uses iterative cycles to develop the system

66

RAD implies tightly controlled, time-boxed, iterative development

Planning a RAD development requires a different mindset from traditional project management. Development is allowed to advance in functional areas that are known, without waiting for all of the final requirements in the project to be identified.

To manage risk in a RAD development, iterations are tightly controlled through the use of fixed ‘time-boxes’ to ensure that the project provides usable functionality early – even if the initial drops of software do not contain the all the desired final features.

Techniques

Time-boxing Joint App. Developmentworkshops

Deliveryfocused

meetings

Proactive project

management

Inherentquality

Iterativedevelopment

Principles

Early discoveryof rework

3Dlifecycle

Active userinvolvement

Effectiveteam

Focuseddocumentation

End-to-endtesting

Rewo rk

RAD projects are controlled through the use of fixed timescales rather than tightly fixed requirements.

The program of work

67

Implementing NJ SUCCESS by zip code

We will take a ‘gradual cut-over’ approach to migration from existing UI systems to NJ SUCCESS, using geographical regions:

NJ SUCCESS will be built separately from the existing UI environment

– i.e. LOOPS and other UI systems will continue to run in parallel and will only be enhanced when Federal or State mandated changes are required

The initial NJ SUCCESS go-live will be a small ‘pilot phase’ for a limited sub-set of customers and staff only

– Initially probably supporting just a single zip-code

– All other customers and staff will continue to use the existing UI environment

Once this ‘pilot’ phase is confirmed as successful, the ramp-up can then be continued by zip-code

– further zip-codes can be cut over to NJ SUCCESS in a controlled manner

We benefit in two main ways from adopting this cut over approach:

It minimizes the investment of time and effort in integrating the new system with the existing UI systems

– NJ SUCCESS and the existing UI systems will provide updates to a common ODS during the parallel running phase

Limiting initial implementation to a small geography also allows tight control over early roll-outs of NJ SUCCESS.

The program of work

68

UI business change workstream

Much UI Modernization attention has focused on the IT workstreams and projects.

However, the UI business change projects are equally important for delivering the full ambition and benefits of UI Modernization.

This workstream is dedicated to organization, culture change and customer service improvements that can be delivered in parallel to the technology development work.

The UI business change projects demonstrate our commitment to modernizing not just the tools we use but also the way that we work.

Key UI business change milestones:

UI-specific skills training function launched, 2004

BPC transformation to an overpayment prevention workflow that takes advantage of near real-time information, 2005

Employer triage function launched, 2004

Organization and skills review complete, 2004

Full triage services launched (with system in place), date dependent on NJ SUCCESS workstream

The UI business change projects will be entirely delivered by Division of UI and DDU staff

The program of work

69

ONGOING?

UI business change: timeline

The program of work

Q1Q3 Q4Q1Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3

2003 2004 2005 2006

ORG & SKILLS REVIEW

CWC INTEGR’N

EST. UI SPECIFIC SKILLS TRAINING FUNCTION

JOINT LABOR-MANAGEMENT WORKSHOPS

CREATING OVERPAYMT PREVENTION WORKFLOW IN BPC

CAREER PATHS IN UI

HR REVIEW (TENTATIVE ONLY)

CUSTOMER SERVICE COACHING

EST. CUSTOMER FB

EMPLOYER TRIAGE

EMPLOYER E-CORRESPDNCE

PHASE 2

CLAIMANT TRIAGE

PHASE 2

The projects below represent the full set of business change projects currently identified, with a focus on 2003-2004. We anticipate that further business change projects will be identified, going forward.

70

UI business change will be collaborative

A fundamental tenet of our approach to UI Modernization is the full involvement of staff from across the whole organization. This will continue for all projects.

Further, a series of labor-management workshops, co-sponsored by the CWA locals 1034 and 1037, will be a central project to the UI business change workstream.

These workshops will be an open forum for staff and management in which to identify opportunities to improve procedures, communications and ways of working together.

At the time of submitting this strategic plan, the UI business change projects are still undergoing planning reviews.

Draft project outlines are available at Appendix A.

The program of work

71

State IT business preparation workstream

NJ SUCCESS will be built using modern technologies, many of which are new to NJDOL and OIT staff. However, we have a goal for the State to stay in ‘control of its own destiny’ by

Having full oversight of the design of NJ SUCCESS

Preparing to take on support of NJ SUCCESS as soon as the system is in production

The State IT business preparation workstream is dedicated to ensuring the State has the skills, organization and capacity both to work with the NJ SUCCESS vendor and to take over the system once in production.

Key milestones:

Foundational project teams identified and training / development activities planned, September 2003

A team of at least 15 IT staff is ready and capable to assist the vendor team by the vendor start date, September 2004

System handover – planning, preparation and deadline dates to be arranged with the vendor

Detailed support, maintenance and enhancement responsibilities agreed within State, June 2006 (at least 1 year before hand over)

The program of work

72

State IT business preparation: timeline

IT SKILLS DEVELOPMENT(PREPARING FOR NJ SUCCESS HANDOVER)

Q1Q3 Q4Q1Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3

2003 2004 2005 2006

VENDOR START

IT SKILLS DEVL’T(PREPARING FOR VENDOR START)

KNOWLEDGE TRANSFER

KNOWLEDGE TRANSFER(ALL TECHNOLOGIES, METHODOLOGIES)

The high-level timeline below summarizes the State IT business preparation projects.

As detailed resource plans are drawn up over the next two months, the IT skills development project in particular should contain many key milestones, so that progress can be accurately gauged.

The program of work

AGREE SUPPORT ORGANIZATION

73

State IT business preparation: key activities

IT skills development

Enhancing State IT capability will involve a focused plan to invest in training and development of IT staff across NJDOL and OIT.

Knowledge transfer

To ensure that the State is capable of maintaining NJ SUCCESS, we will launch a dedicated project to monitor and enforce knowledge transfer requirements on the vendor.

Agreeing the IT support organization

This project will focus on how the State will organize to provide support and maintenance when NJ SUCCESS is live.

The desired final IT support requirements (skills, size, capabilities) will need to be agreed reasonably soon to inform the overall resource and development plan

The split of responsibilities across NJDOL and OIT will be decided sufficiently in advance to allow both organizations to prepare

The program of work

74

Program management workstream

The functions of the program management workstream are described in detail in the next chapter, ‘organizing the program’. Program management activities are significant enough however to be considered an extra workstream in planning terms (otherwise referred to as the ‘program management office’ or PMO).

The PMO will deliver a rolling set of oversight and management activities. As an example, the activities planned for the next month will include:

Overseeing of development of ‘super service requests’ for the foundational projects

Detailed resource planning

Readying locations and equipment for project teams (before project start)

Launching the NJ SUCCESS RFP development project – including assistance with detailed planning, team briefing, acquiring software licenses

Launching the PMO formally – creating the PMO team, project lifecycle and reporting requirements

Reporting progress to the Program Sponsor and Steering Committee

Managing risks, budget, progress day-to-day

The program of work

75

ORGANIZING THE PROGRAM




Program governance

Resources and budget


point?

The purpose of UI

Modernization


The program of work

Delivery assurance &

vendor management

Change management

and communications


Modernization

76

Strategic LevelProgram Sponsor, supported by Steering Committee. Specific reviews:

• Program phase end / start or funding demands

• Major scope changes• Changes in business strategy

impacting UI Modernization objectives / principles

• Cycle of 3-6 months

Program Level• Managed by the Program Manager,

support by the PMO• Regular review cycles (2 weeks

initially)• Program Sponsor to authorize minor

scope change / budget decisions

Project Level• Individual projects managed by

Project Managers• Review within project disciplines • Interfacing with program governance

Alignment of program to strategic

vision

Change program to deliver the vision

• scoped to deliver business and IT change

• driven through strong stakeholder and program management

Enhanced controls through project disciplines

• projects should be tasked to deliver business benefits

• driven through rigorous project management


Three levels of governance ensure that benefits are delivered and alignment is sustained over time

Three levels of program governance

77

UI Modernization program structureP

rog

ram

le

ve

lS

tra

teg

ic

lev

el

Pro

jec

t le

ve

l



Program Manager

Program Steering


Director of UI


workstream

Procure & build NJ SUCCESS

workstream

UI business change workstream

State IT business preparation workstream

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect


78



Program Manager

Program Steering


Director of UI


workstream


UI business change

workstream

NJ IT workstream

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

Strategic level program governance roles

Program Sponsor role:

- Has overall responsibility for realizing the

benefits of the program within the specified

budget

- Demonstrates a strong commitment to

making the change happen

- Identifies the implications of business

strategy changes on the program

- Resolves problems and takes decisions

- Authorizes minor scope changes

- Integrates with other programs and key

stakeholders

- Approves the project plans

Program Steering Committee role:

- Advises on departmental policy/issues

and fit of solution (liasing with IT

Governance Board as appropriate)

- Approves deliverables and vendor

payments

- Resolves issues that cannot be resolved

through prior escalation processes

- Authorizes major scope changes that

impact on realization of benefits

- Provides a Quality Assurance function

- Provides guidance to the program


79

Steering Committee members have specific oversight roles



Program Manager

Program Steering


Director of UI


workstream


UI business change

workstream

NJ IT workstream

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

Steering Committee oversight roles:

Overall Deputy Commissioner,

Asst. Commissioner, Income Security

Budget & contract Director and Chief Financial Officer, Accounting

Technical design Department CIO

UI business design Assistant Director of UI Operations

Assistant Director of Programs, Appeals and Quality

DDU design Asst. Commissioner, Disability Services

Security design Director, Office of Internal Audit

Key partners:

Asst. Commissioner, Workforce NJ

Director, Employer Accounts

Asst. Commissioner, Labor Planning & Analysis

OIT Chief of Staff

Director of Human Resources


80

The program also fits within departmental IT controls

Systems development projects for UI Modernization will follow the route already established for NJDOL projects.

An additional step - analysis and advice from the PMO - will serve to:

Ensure fit with the UI Modernization technical architecture

Assess and prioritize resources across the whole portfolio of development projects

All IT initiatives within UI will follow this process.

SYSTEM CHANGE IDEA DEVELOPED

PMO ANALYSIS OF STRATEGIC FIT & RESOURCE NEED

DIRECTOR’S APPROVAL TO

DEVELOP CHANGE REQUEST

JOINT DEVELOPMENT OF

SUPER SERVICE REQUEST (INCL. $)

SMALL PROJECT

BOARD APPROVAL

IT GOVERNANCE

BOARD APPROVAL

All IT projects <$250,000

All IT projects >$250,000


81

Resource management: UI Modernization principles

We will follow some key overall principles in our approach to resources:

Every business area shall commit full-time resources to the UI Modernization program, as reasonably requested

NJDOL Division of UI will retain business control of the program and of each project

– Program Manager and PMO staffed mainly by Division of UI and DDU

– UI and DDU staff to provide business input to all projects

– Technical support will be drawn from DIT and OIT

Business analysts, user testers etc will be drawn from UI and DDU business staff across the State, so that field expertise is drawn into the program

For each project, a single project manager will be responsible for delivery, drawing upon technical and/or business support as needed

– We will only use full-time project managers, who will be given clear responsibility and accountability for the successful delivery of their projects


82

Resources made available to UI Modernization

We have worked through June and July to identify resource requirements for the foundational projects.

At the time of writing, the resource plan is semi-developed:

– A first cut list of business analyst resources has been provided

– A first cut allocation of technical resources to foundational projects - as well as other IT activities - has been provided

The analysis to date suggests an initial State team of c. 25 people for the foundational projects and PMO

– however, this number may increase because the initial version of the resource plan does not include all people as full-time resources.

The PMO will continue to detail out the resource plan, fleshing out exact teams, start and end dates, training needs etc

– through discussion and through the development of the super service requests for the foundational projects.

We will also be seeking clarity regarding who will be dedicated to UI Modernization and who will also remain dedicated to the important task of maintaining the current UI systems environment.


83

Resource management: ongoing activities

The Program Manager will oversee the best use of all resources dedicated to UI Modernization throughout the life of the program.

Two measures are proposed:

A dedicated PMO resource manager, who will

– Identify skills required for each project and the PMO

– Map available people against skills and experience needed

– Plan development activities and monitor individual development of UI Modernization team members

– Facilitate recruitment and/or introduction of contractors, where needed

A dedicated IT skills improvement project, focusing specifically on DIT and OIT technical training

– see State IT capability improvement workstream (in the ‘program of work’ chapter) for more details


84

Funding UI Modernization

Key points:

The department has secured dedicated and accurate funding for UI Modernization

Annual costs projections for UI Modernization Project will be provided for input into development of NJDOL annual 'SFY budget plan

The Program Sponsor will monitor and manage cost estimates on a month by month basis and account for total ongoing costs

The Program Sponsor in accordance with current NJDOL policy/procedure will provide cost estimates for quarterly projections and assessments

We will maintain full and proper accounting ofall costs attributable to UI Modernization


85

Delivery assurance

Delivery assurance means providing senior management and key stakeholders with the confidence that their objectives are being met and that controlled processes are shaping achievement of UI Modernization objectives.

Key Principles

Assurance will be based on the appropriate intervention necessary to fulfill the assurance needs of the program

Assurance will be a continuous, involving and evolving process

We will determine the level of assurance required for different activities on the basis of the associated business risk should issues arise

All requirements that require assurance will be clearly and unambiguously defined

Where possible, we will defined evidence based measures for determining assurance

Acceptance/approval processes will not absolve the provider of assurance from the responsibility to provide such assurance

Processes for managing non-compliance to requirements will be established


86

UI Modernization delivery assurance roles



Program

Manager

Program Steering


Director of UI


workstream


UI business change

workstream

State IT business

preparation

Projects

Projects

Projects

Projects

DOL CIO

Technical Architect

Program Manager role

- Responsible for ensuring the program is

delivered

- Liases with key stakeholders

- Ensures that all projects within the

program remain integrated and aligned

- Ensures that appropriate resources are

made available to the program

- Reviews progress, risks & issues with

Project Managers

- Reports progress & escalates issues as

defined, to Sponsor & Steering

Committee

- Facilitates all essential events

- Intervenes where necessary


87

UI Modernization delivery assurance roles

Program management office

(PMO)

• Technical architect• Business architect• Resource management• Communications & change management• PMO support• Vendor management (to be decided)

Program Manager

Program Steering



workstream


UI business change

workstream

State IT business


Projects Projects Projects Projects

OIT Liaison role:

For every project staffed or part-staffed by an OIT team, there will be an OIT liaison:

- Responsible for ensuring the availability of OIT team members

- Coordinates all OIT resources to support the project

- Manages delivery to the OIT-NJDOL contract

OIT technical lead (OIT project mgr)

For every project staffed or part-staffed by an OIT team, there will be an OIT technical lead, who is responsible for:

- Ensuring the availability of OIT team members

- Coordinating all OIT resources to support the project

- Managing delivery to the OIT-NJDOL super service request

Project Manager role

- Has overall accountability for delivering his/her project and realizing the benefits

- Manages and controls the project work on a day to day basis

- Gives direction to the team, takes/facilitates necessary decisions

- Reports progress & escalates problems to Program Manager

The PM will be assisted by a business/technical expert, depending on his/her skill set.


88

UI Modernization delivery assurance roles (cont.)



Program Manager

Program Steering


Director of UI


workstream


UI business change

workstream

Projects

Projects

Projects

DOL CIO

Technical Architect

NJ IT workstream

Projects


Technical & Business Architects

Program Management

Executive reporting

Schedule management

Issue reporting

Change control

Risk reports

Team management & support

Vendor performance analysis

Project control processes

Vendor, contract & work pkg management processes

Communication strategy

Develop win/winsEngage key stakeholdersBuild trust and commitment

Guardians of Modernization vision

Identification & management of project dependencies

Project delivery checkpoints

Standards management

Technical assurance

Quality Assurance

Test planning & oversight

Successful vendor management requires active ‘relationship management’ that spans all stages in the program lifecycle


89

The PMO is key to assuring successful delivery

UI Modernization is a large, complex program that, if delivered correctly, will create huge customer and efficiency benefits.

We will use the PMO team as the key mechanism to control delivery and assure the Steering Committee that delivery is progressing appropriately:

Program Sponsor and Steering Committee will be provided with a holistic view of projects being undertaken

All projects within the Program will be delivered and controlled in a consistent and structured, gated manner with clear sign off at each stage

Best use of limited resources

Oversight of and assurance that each project is contributing the needed benefits, to add up to delivering modernization

Visibility of progress, issues, and wins

Early warning of impacts and risks

Effective communication leading to:

– Clarity of scope, deliverables and status to all team members and stakeholders

– Improved staff morale


90

Program management office roles (page 1 of 2)

The following PMO roles will start in Phase 1:

Program manager

– The program manager will provide overall leadership to the UI Modernization delivery team (i.e., the PMO, project managers and their teams). S/he will also be the main point of contact between the steering committee and the program. With assistance from the PMO support and vendor manager the program manager will lead delivery assurance activities.

Business architect

– The business architect will be the guardian of the UI Modernization business vision and benefits. As such, s/he will (a) provide business design guidance and oversight to all projects and (b) monitor, assess and advise on achieving the anticipated benefits.

Technical architect

– The technical architect will oversee the technical design and delivery of all components of NJ SUCCESS. S/he will define, apply and monitor standards and approaches to assure technical delivery and ensure that the system meets the needs of the future UI. S/he will have significant and proactive involvement with all technical teams.

Resourcing manager

– The resourcing manager will coordinate across all agencies participating in UI Modernization to get the right teams in the right place, at the right time, with the right skills and experience. The role therefore includes skills requirements analysis, development planning & management, negotiation and coordination across agencies.


91

Program management office roles (page 2 of 2)

PMO support (logistics)

– The PMO support will assist across all PMO functions. Particular responsibilities usually include: preparation of program status updates, maintenance of the program plan and risk register, maintaining version controls and the project library.

Change & communications manager

– The change manager will advise and run change management activities across the program. S/he will ensure that each project addresses change issues in the way the project is run as well as in its outputs; in addition, s/he will be responsible for stakeholder management for the life of the program.

Vendor (contract) manager

– An additional role of vendor manager is foreseen to support the program manager in overseeing the management of all vendors and contractors. The vendor manager will ensure delivery to contract, manage the change order process and run deliverable QA processes.

– This role is anticipated to be established c. 3 months prior to vendor start. The program sponsor and program manager should decide at that point whether to constitute the vendor manager as a full-time responsibility.


92

The PMO will manage every aspect of UI Modernization

Delivering UI Modernization

Lead the program team

Manage the technical content

Enable governance

Manage the project portfolio

Manage the control cycle

Manage the integration of the program

Managestakeholders

Managecommunication

Plan &

manage

transition to

business

operations

Manage delivery of benefits

Manage the program resources

Business as usual


93

Key delivery assurance activities for the PMO (page 1 of 2)

Lead the program team: Lead the management team (including Project Managers) in executing the program plan, ensuring delivery is driven in a controlled and consistent manner and that major issues, changes and disruption are handled in a coherent manner aligned to the business objectives.

Manage the technical content: Ensure that the business and technical solution is feasible and consistent with the business objectives, and remains so during the transition between phases of the program (e.g. design, develop, test) and implementation. (PMO business and technical architect roles).

Manage the control cycle: Ensure projects follow the established lifecycle and reporting/management requirements. Ensure that exceptions (variances, risks, issues, changes), which may affect more than one project, are considered in the wider context and managed appropriately.

Manage program integration: Ensure consistency of approach across the program, including application of common processes & standards; establish common milestones and key integration “events” (e.g. pilots, roll-outs etc).

Manage program resources: Ensure resource requirements are met and key skills are optimally and effectively deployed.

Enable governance: Facilitate reviews at every level of the program, so that informed decisions can be taken – both timely and appropriate.


94

Key delivery assurance activities for the PMO (page 2 of 2)

Manage the project portfolio: Ensure that individual project objectives remain valid and aligned with the changing business environment. (Terminate or re-shape existing projects if required; scope and launch new projects as the situation dictates).

Manage delivery of benefits: Ensure that expected benefits are explicitly identified and realization of the benefits is tracked and reported.

Manage stakeholders: Ensure that stakeholders act in support of the program and commitments are delivered including provision of resources, actions to drive out benefits, issue resolution, etc.

Manage communications: Ensure timely, appropriate, consistent and effective communications, including progress and change implications (see change management, slides 102 - 105)

Plan and manage the transition to business operations: Ensure the impact of each project on individual business units/departments is planned and clearly understood such that implementation may be managed efficiently and excessive demands are avoided.


95

The PMO will enforce a structured lifecycle for projects…

A standard, structured lifecycle and approvals process will increaseclarity and improve our program-project communications

• Project business outline

• Project plan• Project organization•• Detailed schedules• Risk assessment

• Status updates••

Change RequestsRisk reports

• Hand-over• Post-

implementation review

PROGRAM BUDGETING/FORECASTING

ManagementPlanning

Execution & Delivery

Review & Closure

Start-Up

CONTINUOUS PROGRAM OVERSIGHT

RESOURCE PLANNING, SCHEDULING AND ALLOCATION

* Technical deliverables excluded from diagram for clarity

Initial approval

Project start approval

Initial completion approval

Final completion approval

• Project delivery outline

Project resources• Interim reviews

with PMO and/or QC team

Project-led

Program-led

Program assurance checkpoint


96

… and a structured QA lifecycle for the program itselfAs for all large programs, we face the risk with UI Modernization of failing to deliver to original objectives owing to a loss of focus, resource issues, constant ‘fire-fighting’ and many other potential causes.

In order to maintain focus on the objectives and benefits stated in chapter one of this strategic plan, the UI Modernization PMO and the Steering Committee will conduct program quality assurance reviews at key times.

Procurement & set-up

Program execution

Review & Closure

Strategy & high-level design(complete)

QA review

Procurement strategy;

program set-up

QA review

Vendor selection; accurate delivery

(foundational projects)

QA reviews*

Accurate delivery; program set up

* # dependent on detailed plan

QA review

Service readiness

QA review

Benefits evaluation


97

Program QA reviews keep the focus on delivering benefits

Program QA reviews are a disciplined means of ensuring the program is still on track.

At key points in the program (as shown on the previous page), the PMO and Steering Committee should take a step back to assess if:

All activities currently undertaken and planned clearly contribute to achieving the original vision and objectives of the program

Appropriate skills and resources are available to the program

The timeline and budget are still realistic

The needs of stakeholders are being met

All significant risks are being addressed

The program is ready to move to the next phase

… and propose remedial actions if any of the above conditions are not met.


98

Managing the use of vendors and contractors effectively

We intend to procure a single vendor to build the core NJ SUCCESS system.

Using outside vendors at the heart of UI Modernization will affect our program in a number of ways, each of which must be closely managed:

Procurement timelines. Time and effort is needed to create an effective RFP document and procurement process

– For NJ SUCCESS, we have developed an aggressive but achievable set of targets:

• Publish RFP by February, 2004

• Select winning proposal and vendor start by September 2004

Frameworks and tools. Many vendors bring with them useful tools and techniques, built upon previous experience. UI Modernization will only accept use of tools and techniques that fit with the existing management approach: they must (a) not clash with existing tools in use by UI Modernization (e.g., MS Project) and (b) be easily adopted by State staff, at no extra cost.

Knowledge and skills transfer. UI Modernization intends to build knowledge transfer requirements into the NJ SUCCESS RFP, as one condition of payment. See the knowledge transfer project outline in Appendix A for further details.


99

Managing vendor and contractor delivery

Contractual relationships will underpin the delivery of NJ SUCCESS.

In UI Modernization we will seek to develop a mature relationship with vendors and contractors, enabled by clear contractual and management arrangements:

– Clear success measures for each deliverable / phase- these will be developed in the RFP and may be expanded by the bid response

– Simple, structured processes for approvals, payments and change orders

– Clear responsibilities for risk mitigation- i.e., for activities that cannot be scoped as part of the RFP

We will also adopt this more formal approach for OIT and NJDOL super service requests, to clarify and strengthen the relationships between all agencies involved.

At all times, vendor relationships will be underpinned by a ‘last resort’ ability to seek alternative assistance

– these ‘divorce criteria’ will be clearly communicated and understood by all parties


100

Achieving a mature, balanced vendor relationship

Our goal is a strong, balanced relationshipthat promotes the right conditions for delivery

Making the relationship work

Expect & budget forsome change orders

Establish communication channels early on

Define clear processes for

variations & payments

Check for understanding and agreement between parties

Identify objectives & benefits for both parties

Define other ‘rules of the game’

Involve the NJDOL UImanagement team

Both sides must fulfillcommitment to contractual terms

Regular progress reporting

Use formal, simple communications

Active risk identification, assessment and mitigation

Agree a dispute mechanism& ‘divorce’ criteria

Minimizing the risks


101

Example IT vendor content management activities

Above and beyond pure contract and relationship management the PMO will manage technical delivery for UI Modernization. This will include:

Defining technical standards, policies and procedures

– aligned to State and Departmental IT preferences

Planning guidelines

Managing requirements

Controlling design documents

Tracking and assessing system development progress

Overseeing test cases and the quality assurance process

Defining and enforcing version control

Issue and defect submission, control and tracking system

Technical change management

Managing deployment and release control

The business and technical architects will provide this capability and will operate under guidance from the Steering Committee (for both business and IT

decisions oversight).


102

Effective change management is crucial to success

In UI Modernization we will be managing numerous internal and external drivers of change, in a complex environment:

UI Mod’n

Customer expectations

Employermethods

Union requests

Nationalbest practices

Staffexpectations

State standards

Environmentissues

Labormarketforces

Partner demands

Demand for flexibility

Federal reqts

Political timescales

Innovation

Technology convergence

IT best practices

Success will be dependent on our getting the ‘people’ aspects right

The scope and scale of change in each workstream is larger than all recent NJDOL UI projects

The changes are complex, with significant risks

The pace of UI Modernization is a step up from normal operations

The sheer volume of concurrent changes will put demands on people and not just the PMO team

The methodologies proposed are also new to many UI Modernization team members

There is pressure on the management team to deliver ‘real’ value, in tight timescales


103

Major change management principles (page 1 of 2)

Involving representatives from across the UI world. We will continually draw in experts from across the UI Division and from partners agencies to input into the design, development and testing of NJ SUCCESS. This will help to ensure that the resulting solution meets the needs of the ‘people really doing the work’.

– UI management accept this impact on operations; partner divisions and agencies are currently being asked to nominate staff they will dedicate to the program

Making culture change a high priority. UI Modernization is not just about delivering NJ SUCCESS into production. Our commitment to culture and organization change is demonstrated by:

– Our vision, objectives and measures, that mean that we will only have achieved our aim when we meet key performance criteria

– A dedicated UI business and culture change workstream. Significant improvements to the way we work can be achieved even without a new system. The projects in this workstream are charged to deliver these changes

• For example, a joint labor-management workshop series to have open discussions about work relationships and culture


104

Major change management principles (page 2 of 2)

Investing in communications. We will pro-actively communicate with all stakeholders to make sure they remain up-to-date with UI Modernization and its impact upon them

– Planning communications and ensuring all stakeholders remain up-to-date: knowledge is half the battle!

• In particular, communicating achievements that will benefit stakeholders directly (such as the quick wins work already under way)

– Ensuring leadership is demonstrated to all stakeholders by arranging communications / meetings directly involving the Program Sponsor, and/or other senior managers

– Asking for and reacting to feedback from stakeholders

– Building a network of change agents, who can both spread the message about UI Modernization as well as gather feedback and input

Considering ‘people’ issues for every project. Each project manager, with PMO assistance, will need to include change management activities in their project plans

– For example, what people / process / organizational changes will be needed to get maximum value from the interim operational data store (ODS)?

– The PMO will be responsible for coordinating change activities (as well as all dependencies) across projects


105

The PMO change manager will focus on winning, and keeping, the hearts and minds of stakeholders

By building commitment step by

step

By identifying key stakeholder groups and

rigorously managing expectations

Stakeholders will be actively managed to ensure they act in support of UI Modernization

Different communities and individuals will have differing influence over and attitudes to change – this needs to be understood to inform our plans

We will plan engagement at different levels for different stakeholder groups – focusing on adjusting attitudes

We recognize that change is a process that must be managed step-by-step

We will gauge how key stakeholder groups progress from communications to commitment

We will target interventions, tactics and resources to the progress of key stakeholder groups

Sh

are

of

Vo

ice

(deg

ree

of

infl

uen

ce)

1

2

3

4

5

6

7

8

9

10

1 2 3 4 5 6 7 8 9 10

Current Position (attitude to project)

12, 21, 24

4

15

23

10

8

7

16

5

1014

18 6, 20

1

3

19

22 2

13

10, 1711

Our focus will be to communicate fully, otherwise gossip and hearsay will fill the void left behind

We will create open two-way communication processes

We will seek and act on feedback about the change, back ‘up the line’

By building and delivering robust

communications plans

Strategy & Change Vision

Initiate Implementation

Elicit bottom-up feedback

Refine Change

ApproachCreate

Engagement

AwarenessUnderstanding

Contributing

EngagementSupport

Obligation

Dedication

Ignorance

106

CHALLENGES FOR ACHIEVING THE PROGRAM





point?

The purpose of UI

Modernization


The program of work

Many challenges face the UI

Modernization program

Program planning variables


Modernization

Critical success factors and

associated risks

107

Many challenges face us with the overall program…

Finding personnel with proven track record of successfully managing and delivering a program of this size and complexity

– Program timelines do not allow for learning curves or rework of invalid decisions

Ensuring the program isn’t delayed due to lack of timely decision-making by involved stakeholders

– Program decisions often need to include NJDOL, DIT, OIT, Procurement, Finance etc

Internal unwillingness to question the status quo and resistance to change

– “That’s the way we’ve always done things”

– “That won’t work in New Jersey”

Winning and keeping the hearts and minds of all staff during modernization journey

Capturing and maintaining senior sponsorship during the lifetime of the UI Modernization program

Challenges to delivering the program

108

… of these, ‘getting the resourcing right’ is most immediate

At this stage of UI Modernization, we have the opportunity to make preparations that many programs fail to invest in: to get the right resources, up front, for the program.

Many of our staff are experienced individuals at UI operational management activities; however the skills needed for a complex IT enabled business change program are different.

Staffing the program too highly with people who have not delivered a complex IT enabled business change program may cause us problems due to:

less effective and rapid delivery

– due to staff requiring learning curve activities and time

a potentially increased error rate

– and corresponding additional rectification activity

increased likelihood of unrecognized errors

– impacting the quality of deliverables / functionality, leading to undiscovered rework and program slippage

a possible content and decision vacuum during critical early stages

– i.e., weak leadership on the technical and business architectures

– increased risk of NJ SUCCESS vendor effectively driving the program rather than State


109

UI Modernization program delivery variables

For UI Modernization, we are freezing the deliverables variable

– i.e. UI Modernization must include: triage, workflow, business rules, preventative cross-checks for overpayments etc.

Therefore the only way of changing the UI Modernization program is by varying the resources and/or timescales:

Shorter timescales will require us to deploy a higher level of resources

– a ‘higher level of resources’ here will involve increasing the ‘quality’ of resources as well as the ‘quantity’

Therefore, the lower the achievable level of resources, the longer timescales we need

– As well as monitoring for any unintended quality reductions

Deliverables

Resources Timescales

All programs and projects have three fundamental variables (constraints):

• Deliverables

• Resources

• Timescales


110

Indicative resourcing profile for our proposed timescales

To meet our proposed UI Modernization timescales, high peak levels of resourcing must be applied.

i.e. if deliverables are fixed and timescales are relatively short, then

– We must provide higher peak levels of resourcing (both head count and skills) from the State

– We also need to manage higher peak levels of vendor/contractor resourcing

Time

Re

so

urc

es

Deliverables



Total resource levels

State resource levels(increasing over time to ensurehandover of NJ SUCCESS)

111

What if our proposed resourcing profile cannot be met?

If the resourcing levels associated with our proposed approach cannot be met, then we will have to lengthen timescales.

Lengthening the timescales would spread and lower the peak resourcing level required for both state resources and vendor resources

However, even if we did lengthen the timescales, we would need to retain a focus on keeping a high quality and and highly capable program and project teams

Time

Re

so

urc

es


Deliverables


Total resource levels

State resource levels(increasing over time to ensurehandover of NJ SUCCESS)

112

Critical Success Factors

Critical Success Factors (CSFs) are conditions that must be met in order for the program objectives to be achieved.

In the course our analysis we have identified the following major CSFs for UI Modernization:

Adequate funding and resourcing are achieved and maintained

Culture change of applying program management disciplines is achieved

The interim business projects are successfully delivered

UI and associated parties work as teams to deliver UI Modernization

Participation and involvement from a cross section of UI personnel

UI Modernization is delivered on time and on budget

The delivered functionality (process and technology) provides the capabilities needed for the future of UI

State personnel participate in the development of NJ SUCCESS and the State is able to maintain NJ SUCCESS once implemented

An effective project management office and vendor management capability are established early and maintain control of the program


113

UI Modernization risks

There are many risks that may prevent us from achieving the critical success factors for UI Modernization and therefore our objectives: Lack of control of detailed technical and business designs in phase 1 - foundational projects and preparation Losing control of vendor design and development Failure to address serious issues because of organizational confusion between NJDOL (UI and DIT) and OIT Stakeholders fail to see the benefits of UI Modernization Key foundational projects cannot be delivered to time, budget or specification Staff working on the foundational projects are diverted back to LOOPS maintenance NJ SUCCESS RFP is not developed to sufficient quality within target timeline Department decides that a Rapid Applications Development (RAD) approach is not compatible with State

procurement regulations We do not assess the costs of NJ SUCCESS vendor bids effectively, leading to a selection of the lowest

priced bid• Insufficiently skilled vendor team• Knowledge transfer is only given lip service by vendor • UI business change workstream is neglected State IT staff do not have sufficient skills and experience to deliver – e.g., ODS projects

One of the first tasks of the program management office (PMO) will be pro-actively to mitigate these risks as soon as possible.

See Appendix E for a detailed discussion of each risk listed above


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