Professional Documents
Culture Documents
The CJS IT Approach to Investment Appraisal, Portfolio Prioritisation & Value Management Stephen Jenner
Contents
Foreword & Introduction Context Investment Appraisal Portfolio Prioritisation Value Management 1 Ensuring benefits are robust and reliable Value Management 2 Capturing all aspects of value Conclusions References Contact Details
Managing the Portfolio, Realising the Benefits
Pages
34 5 13 14 45 46 68 69 86 87 130 131 137 138 139 140
2
The processes developed in CJIT to manage the CJS IT portfolio are an example of these principles being applied in practice in a highly complex cross-departmental setting. They have been recognised by a number of independent bodies and reflect best practice derived from experience both in the UK and in other jurisdictions. I commend them to you.
The context...
The fundamental reason for beginning a programme is to realise the benefits through change. Context
Source: Office for Government Commerce (OGC), Managing Successful Programmes (MSP)
It is only possible to be sure that change has worked if we can measure the delivery of the benefits it is supposed to bring.
Source: UK Cabinet Office, Successful IT: Modernising Government in Action
But
for more than two decades, implementing IT systems successfully has proved difficult implementation of IT systems has resulted in delay, confusion and inconvenience to the citizen and, in many cases, poor value for money to the taxpayer.
Source: Public Accounts Committee of the House of Commons, Improving the Delivery of Government IT Projects
Context
A recent assessment in the Presidents Management Agenda contends that the $45 billion federal investment in IT during FY01 has not produced measurable gains.
Source: Booz Allen Hamilton, Building a Methodology for Measuring the Value of E-Services
Context
Context
Nor is it just a public sector issue You can see computers everywhere but in the productivity statistics.
Source: Robert Solow (Nobel prize winning economist)
Context
78% of Information Systems projects failed to realise even 50% of the originally identified benefits
Source: Management Today
project success appears to equate to achieving an acceptable level of failure or minimizing lost benefits
Source: KPMG Global IT Project Management Survey
If you ask senior executives and managers as I do in my executive programs at IMD whether their companies are extracting the expected business value of their investments in IT, the overwhelming answer by a large margin is no!
Source: Donald A Marchand, Extracting the business value of IT: It is usage, not just deployment that counts!
Context
Business cases are also generally viewed only as documents for gaining funding. Once approved they are put away.few track the business benefits the projects actually achieve
Source: Gartner, Building Brilliant Business Cases
10
Context
Doing Things Right Ensuring Investment Success Through: Validating the scale and quality of benefits Benefits realisation management at project and recipient agency level Capturing cross-system benefits and wider social value
11
Investment Appraisal
Context
Strategic Alignment
Portfolio Prioritisation
Value Management
12
Context
13
Investment Appraisal
Investment Appraisal
Deciding Whether to Invest
Booz Allen Hamilton International e-Gov Benchmarking Study 2005 sound investment practices...CJIT has adopted many best-practice investment toolsrecognised by the EC as a leader in this field in Europe
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Contents Gates Investment Criteria Financial Analysis Benefits Validation Proving Model Investment Appraisal Report
Managing the Portfolio, Realising the Benefits
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Investment Appraisal
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
l ova
Project joins Portfolio Funding confirmed for current year Indicative allocations for remaining years of planning period
e2 Gat
ppr ull A F
Exchange Programme
IT Support for Statutory Charging Full Business Case
Doc Ref No : ITS4SC Gar y R - 007 Jenkins Au thor: Owner:
l ova
Robert Stevenson
Version:
1.00
Final
e Gat
Fri day
30
Sept
2006
Restricted
Management
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
So funding allocations are Incremental Guaranteed only to the next Gate Review Increased as confidence in outcome grows Linked to performance Enforced by Gates with Teeth
Investment Appraisal
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Gates
Investment Criteria
Financial analysis
Benefits validation
Proving
Investment Report
Investment Appraisal
Updates
Updates
Updates
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA
IA IA
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IA IA
IA
IA
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
The best project selection system in the world is worthless unless the data is sound.
Source: Bob Cooper and Scott Edgett, Ten ways to make better project portfolio and project selection decisions
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Unfortunately
Investment Appraisal
Source: Bob Mornan, Benefits Realisation: Government of Canada Experience. Presentation to the OECD
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
In a survey of 60 companies conducted by Cranfield School of Management, 47% of respondents openly admitted to overstating the benefits in order to gain project approval. In other words, they claimed benefits that could never be realised in practice because no one expected to be held accountable for those benefits.
Source: Wentworth Research, Benefits RealisationMany Happy Returns
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
And
Investment Appraisal
83% of IT directors admit that the cost/ benefit analysis supporting proposals to invest in IT are a fiction. A conspiracy of lies
Source: Kit Grindley, Managing IT at Board Level
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
is a demonstrated, systemic, tendency for project appraisers to be overly optimistic. This is a worldwide phenomenon that affects both the private and public sectorsappraisers tend to overstate benefits, and underestimate timings and costs
Source: HM Treasury, The Green Book
There
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
But
all methods are somewhat unreliable; so consider using multiple selection methods in combination
Source: Bob Cooper and Scott Edgett, Ten ways to make better project portfolio and project selection decisions
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
2. Validation of: Benefits claims with recipients Efficiency benefits with efficiency planners Strategic alignment with strategic planners
Investment Appraisal
3. Assessment of Attractiveness and Achievability against research benchmarks using the Proving Model
28
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Projects are justified on three grounds: 1. Mandated (regulatory or legislative) - to satisfy a requirement that is not currently being satisfied 2. Financial - cost savings, productivity improvements or new revenues 3. Organisational - enabling a strategic objective
Managing the Portfolio, Realising the Benefits
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Cost-benefit appraisal using the direct benefits of the application under consideration. Investments are required to meet a minimum return on investment Cost-benefit appraisal taking into consideration the enabled benefits from applications that will run on that infrastructure. Investments are required to meet a minimum return on investment Cost-effectiveness appraisal i.e. on a like-for-like basis (and subject to confirmation that the infrastructure meets a continuing business need) does the replacement infrastructure release funds for use in front-line services? Such investments are not discretionary and hence are not required to demonstrate a positive return on investment although their costs and benefits are managed using the normal CJS IT practices. To the extent that costs exceed the quantified benefits there is an implicit assumption that the deficit represents the value of legal / regulatory compliance or reduced risk of policy failure. This gap is usually implicit the CJS IT approach is to make the gap explicit i.e. to make the governance bodies aware that in approving the project they are accepting that the cost represents the price (political value) they are willing to pay to receive the benefits.
Benefits validated with the recipients & Project meets minimum standards of Attractiveness and Achievability
30
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Exchange Program e m
Green Book
A uthor: O ner: w Status:
Version:
Issue D ate:
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
A completed project represents potential business benefits, not bankable benefitsBut identifying and quantifying benefits are not enough. Unless business unit executives commit to achieving them and have the tools to measure them realizing the benefits is unlikely.
Source: Gartner, Building Brilliant Business Cases
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Benefits Contributor
If funding approved Benefits Eligibility Framework Check alignment with BEF e.g. double counting, cost avoidance
Investment Appraisal
CJIT VMO
Project Benefits Lead and Benefits Realisation Lead agree Efficiency & Effectiveness benefits
Benefit Realisation Plan: Police Benefit Realisation Plan: CPS Benefit Realisation Plan: Courts Benefit Realisation Plan: Corrections
Benefits Recipients
Benefits Validation with Recipients Benefits Validation with Efficiency Planners Benefits Validation with Strategic Planners
Efficiency Planners
Strategic Planners
Strategic Planners agree Efficiency & Effectiveness Benefits that contribute to Strategic Targets & priorities
Victims & Witnesses Offences Brought To Justice (OBTJ) Enforcement Reduced Re-offending
Benefit Realisation Leads and Efficiency Planners agree Efficiency Benefits that contribute to Departmental Efficiency Plans
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
i.e. failing projects and programmes dont have brilliant business cases and strong stakeholder commitment.
Key: Independent, research-based and OGC accredited Managing the Portfolio, Realising the Benefits
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Attractiveness Summary
Weighting Strategic Alignment & Contribution 100.0 Benefits Analysis 100.0 100.0 Objectives Definition Analysis 80.0 Stakeholders Analysis Attractiveness Total Score 58.2 69.0 65.0 63.2 61.3
Achievability Summary
Weighting 80.0 Complexity Analysis 100.0 Processes & Capability Ownership & Accountability 100.0 Clarity & Perception 80.0 100.0 Benefits Realisation Management 60.0 Stakeholders Analysis Achievability Total Score 75.0 69.0 51.0 61.7 63.8 54.5 64.6
Project Achievability factor analysis Complexity analysis Processes & Capability Ownership & Accountability Clarity & Perception Planning for Benefits Realisation Commitment of stakeholders
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Benefits Analysis
Confidence in benefits - targets and measures Verification with benefit recipients and benefit owners Confirmation of realistic timescales for benefits realisation Organisations track record in realisation of benefits
Attractiveness
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Achievability
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Applied to new projects (Gates 1 & 2) and those in flight (Gate X) The only OGC Gold accredited Investment Appraisal tool Removes many of the arguments research-based Augments financial/economic analyses it provides a different mirror
Managing the Portfolio, Realising the Benefits
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Bringing it all together The output a summary Investment Appraisal report for the Governance Bodies with the salient facts covering:
Attractiveness 1. Financial & Economic Analysis 2. Benefits Validation with the recipients and assessment of Strategic Alignment 3. Proving Model Score Achievability Affordability
Investment Appraisal
1. Proving Model Score 1. Resource & Capital Requirements 2. SRO Assessment based on the PMDU* PSA 2. Resource & Capital appraisal framework Gaps 3. Cost / Benefit 3. Any Funding Issues Reliability and and recycling of Cost Completeness Savings
* Prime Ministers Delivery Unit
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
IRR (%)
SROS ASSESSMENT
DESIRABLE HIGHLY DESIRABLE
Investment Appraisal
MISSION CRITICAL
INCLUDING OPTIMISM BIAS CONFIRMATION THAT THE ABOVE FIGURES ARE COMPLIANT WITH BENEFITS ELIGIBILITY FRAMEWORK (BEF) CONFIRMED BY: COMMENTS:
STRAND 1: CONFIDENCE
Yes No
MISSION CRITICAL
MINIMAL
MINIMAL
N/A
Economic Analysis
RECIPIENT
EFFICIENCY CASHABLE
EFFECTIVENESS CASHABLE
STRAND 4: ENFORCEMENT
Strategic Alignment
PUBLIC PROTECTION
CJO: Police CJO: CPS CJO: DCA CJO: NOMS CJO: YJB CROSS CJS: BEYOND THE CJS(SPECIFY): TOTALS:
REDUCING RE-OFFENDING
SOURCE OF CONFIRMATION OR PROPOSED ACTIONS & TIMESCALES TO ENSURE BENEFITS ARE INCLUDED IN BENEFITS REALISATION PLAN
INCLUDED IN BRP
AGREED IN PRINCIPLE
Benefits Validation
Score Stakeholder Analysis (Attractiveness) Objectives Analysis Benefits Analysis Strategic Alignment & Contribution Attractiveness Total
BUSINESS CASE (COMPLETE AS APPROPRIATE)
Research Based
Score
Strategic Alignment & Contribution Benefits Analysis Objectives Definition Analysis Stakeholders Analysis Attractiveness Total
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
Yes No
PROVIDE EXPLANATORY COMMENTS IF MITIGATION COSTS NOT INCLUDED:
Score
Comments
Research Based
No n/a
Score Complexity Analysis Processes & Capability Ownership & Accountability Clarity & Perception Benefits Realisation Management Stakeholders Analysis Achievability Total
CONFIDENCE OF DELIVERY
LOW RED HIGHLY PROBLEMATIC
REQUIRES URGENT AND DECISIVE ACTION
MEDIUM AMBER MIXED SOME ASPECT(S) REQUIRE SUBSTANTIAL ATTENTION, OTHERS GOOD
ASSESSMENT OF DEGREE OF BUSINESS CHANGE REQUIRED TO REALISE BENEFITS RECIPIENT BRL ASSESSMENT COMMENTS
MEDIUM
HIGH
STAGE OF DELIVERY:
PROJECT SCOPING DESIGN & DEVELOPMENT IMPLEMENTATION & DEPLOYMENT BENEFITS REALISATION
42
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
RED/AMBER PROBLEMATIC REQUIRES SUBSTANTIAL ATTENTION, SOME ASPECTS NEED URGENT ACTION
AMBER
MIXED SOME ASPECT(S) REQUIRE SUBSTANTIAL ATTENTION, OTHERS GOOD
AMBER
MIXED SOME ASPECT (S) REQUIRE SUBSTANTIAL ATTENTION, OTHERS GOOD
AMBER
MIXED SOME ASPECT(S) REQUIRE SUBSTANTIAL ATTENTION, OTHERS GOOD
Investment Appraisal
ASSESSMENT: QUALITY OF PLANNING, PERFORMANCE & BENEFITS MANAGEMENT AREAS TO ASSESS EXAMPLE QUESTIONS BEST CASE
WORST CASE
Business objectives, business benefits and project success criteria are not clearly specified. Contribution of the project and benefits to strategic priorities is not clearly articulated. Project plans are incomplete or are not well understood by key stakeholders. Significant shortfalls or uncertainties around required funding remain. Staff in key project positions either lack relevant experience or have insufficient time or resources to devote to the project. Definition of risk too narrowly focused, key risks to implementation/realisation overlooked. SROs/Boards are not clearly accountable for outcomes; Boards act as discussion fora, with little decision-making. A BRP has not been agreed and benefits have not been agreed with the recipients. No measures or indicators identified or those that have been will be difficult to collect. No measures or indicators identified or those that have been will be difficult to collect. Performance reporting is infrequent, incomplete or the information is not reliable.
BEST CASE
Off the shelf solution using proven technology. No or low level of integration required. Data standards and security issues addressed. Project close to completion; Continuation of trend will deliver the project on time with relatively few changes required. No constraints, or only a few constraints, that can be managed. No major organisational change required and business change restricted to the home organisation. Relatively uncomplicated / manageable delivery chain involving relatively few suppliers and end users. Interdependencies well understood and manageable.
WORST CASE
Bespoke solution using innovative technology requiring integration with multiple systems. Agreement on security and data standards required. Long time span (>3 years) to project completion; A major reversal in performance trend is required. Major constraints exist that will be difficult to manage and which will significantly impact on ability to deliver. Major organisational change required across organisational boundaries to realise the planned benefits. Wide ranging and multi-organisational delivery chain that is very difficult to manage with multiple suppliers and a diverse universe of end users. Several major and critical interdependencies. A number of organisations must work together to achieve planned benefits realisation. Many high-impact and high-probability risks that are difficult to manage.
CLARITY OF OBJECTIVES
AND BENEFITS
Are desired business objectives, business benefits and project success criteria clearly specified and understood? Are the business benefits clearly aligned with strategic priorities? Is there a clear agreed project plan? Is funding in place for all key project stages? Are key positions (e.g. Project Manager and SRO) filled by qualified staff with sufficient time to ensure successful project delivery? Are the major risks to project delivery and benefits realisation understood? Is there an SRO/board managing risks, resolving issues, tracking milestones, costs benefits & monitoring delivery? Has a Benefits Realisation Plan (BRP) been completed and agreed? Have effective measures to assess take up been identified? Have effective measures to assess impact been identified? Are project highlight reports prepared frequently covering progress against key milestones, costs, risks and identify material variances? Is effective action taken to address material variances?
Business objectives, business benefits and project success criteria are clearly specified, understood and are SMART. Business benefits are clearly defined and are mapped to strategic priorities. Project plan has been compiled, is well understood and is achievable. Funding sources identified and agreed. Key positions are filled by individuals with a track record of successful delivery and they have sufficient time and resources to ensure successful delivery. Key risks are identified and have responsible owners. SRO and/or Board members are clearly accountable for outcomes and actively tackle variances as they arise. A BRP has been documented and agreed with benefits recipients. Measures of take up identified and are easily collected. Measures of impact identified and are easily collected. Good quality performance reports are produced on a regular basis.
BEST CASE
Key stakeholders have been identified. Key stakeholders are fully aware of the project/programmes priorities. Effective mechanisms for the transfer of best practice and learnings are in place. Key stakeholders demonstrate strong commitment to the project or programme. Stakeholder Communications Strategy is in place and is operating effectively. End users are enthusiastic supporters of the project and the new ways of working. The SRO exhjbits visible support for the project that is clear to key stakeholders throughout the delivery chain. All key aspects of the project plan have clearly defined owners. Strong accountability (and support) regime conducive to project success. The project team exhibit the full range of core PPM skills.
WORST CASE
Key aspects of the delivery chain are not clearly understood. People are working on numerous and conflicting priorities with no agreed ranking. No or ineffective mechanisms for sharing learnings and best practice. At least one group of key stakeholders appear unaware of, or hostile to, the project or programme. Absence of effective communications with key stakeholders. End users are hostile to the project or new ways of working. The SROs support is not clearly evident to all key stakeholders. Key aspects of the project or programme have no named individual with clear responsibility for delivery. Blame culture where failure is only identified in retrospect. Project team lack core PPM skills.
Generally low impact and probability with any higher severity risks easily manageable.
Are named individuals held accountable for performance? Does the project team have access to all required project and programme management (PPM) skills and competencies?
PROGRAMME/PROJECT NAME
CJO Select
CATEGORY Select
SROS NAME:
ASSESSMENT
DEGREE OF COMPLEXITY QUALITY OF PLANNING, PERFORMANCE & BENEFITS MANAGEMENT CAPACITY TO DRIVE PROGRESS
RED HIGHLY PROBLEMATIC REQUIRES
URGENT AND DECISIVE ACTION
RED/AMBER PROBLEMATIC REQUIRES SUBSTANTIAL ATTENTION, SOME ASPECTS NEED URGENT ACTION
Select
STAGE OF DELIVERY:
Select
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Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
Investment Appraisal
TOTAL
(2) RESOURCE/CAPITAL CURRENTLY ALLOCATED FROM THE RING FENCE YEAR RESOURCE CAPITAL TOTAL (M) (M) (M)
(3) OTHER FUNDING SOURCES RESOURCE (M) CAPITAL (M) TOTAL (M)
TOTAL RESOURCE/CAPITAL GAP (1-(2+3)) YEAR RESOURCE (M) CAPITAL (M) TOTAL (M) RESOURCE/CAPITAL REQUIRED FROM
THE RING FENCE
RESOURCE (M)
CAPITAL (M)
TOTAL (M)
SAVINGS RECYCLED?
TOTAL
44
Gates
Investment Criteria
Financial Analysis
Benefits Validation
Proving Model
Investment Report
The Result
An assessment of a project or programmes: Economic case Strategic contribution Attractiveness and Achievability against research-based criteria and industry benchmarks An Action Plan to be addressed by the time of the next Gate review A Recommendation to governance bodies regarding funding If approved: Initial appraisal funding is provided to complete the business case Full appraisal the project is formally brought within scope of the Portfolio and funding for the current year is agreed with indicative allocations for future years (confirmation subject to project performance and periodic Portfolio Reviews)
Investment Appraisal
45
Portfolio Prioritisation
Portfolio Prioritisation
Periodic re-evaluation of Delivery, Benefits Realisation and ensuring the Portfolio remains aligned to Strategic Priorities
Gartner 2005 the facilitating role of the IT portfolio unit represent good practices. Government organizations that are seeking successful approaches to program and project portfolio management should study CJIT's actions.
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Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Contents
Portfolio Prioritisation
Objectives and Requirements Portfolio Segmentation Portfolio Reviews Portfolio Analysis Performance Reporting Lessons Learnt
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Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
A definition
Portfolio Prioritisation
Portfolio Management is a corporate, strategic level process for co-ordinating successful delivery across an organisations entire set of programmes and projects.
Source: OGC, Portfolio Management
48
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
49
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Requirements
1. A cost/benefit framework to enable comparisons between projects and tracking of performance over time (the Benefits Eligibility Framework) 2. A method for assessing Strategic Alignment to enable comparisons between projects 3. Standardised reporting to provide a clear line of sight and transparent reporting 4. A consistent framework for categorising projects and programmes - all IT investments are not the same, and the investment justification criteria and the overall allocation of Portfolio funds needs to reflect this
Managing the Portfolio, Realising the Benefits
Portfolio Prioritisation
50
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
51
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
High Potential
Investments in IS/IT applications which may be important in achieving future success
Portfolio Prioritisation
Key Operational
Investments in IS/IT applications on which the organisation currently depends for success
Support
Investments in IS/IT applications which are valuable but not critical to success
52
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
Replacement Infrastructure
Justified on Cost-Effectiveness terms i.e. does the replacement enable resources to be re-directed to other value-adding activities
New Infrastructure
Justified on Cost-Benefit terms by taking into consideration both the infrastructure and the applications (both planned and potential) that will run on that infrastructure (see pages 116-130)
53
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
2004/05 2004/05
2006/07 2006/07
2007/08 2007/08
Portfolio Prioritisation
SR07
Annual & Mid Year Portfolio Reviews Annual & Mid Year Portfolio Reviews Delivery Plan approved by Ministers Delivery Plan approved by Ministers Benefit claims validated by BRLs, Benefit claims validated by BRLs, Strategic Planners & Efficiency Planners Strategic Planners & Efficiency Planners
New Project Appraisals New Project Appraisals Undertaken as required Undertaken as required Individual project appraisals approved by Individual project appraisals approved by OCJR Ops Board OCJR Ops Board Benefits claims validated by BRLs, Benefits claims validated by BRLs, Strategic Planners & Efficiency Planners Strategic Planners & Efficiency Planners
Monthly Performance Report Monthly Performance Report Clear line of sight performance against Clear line of sight - -performance against Delivery Plan Delivery Plan
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Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
55
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
58
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Other considerations
Besides absolute and relative Attractiveness and Achievability scores, we also need to consider: 1. Whether each project individually, or as part of a wider programme, meets the required rates of return 2. Politically mandated or legal/regulatory required projects 3. Dependencies infrastructure projects in particular may struggle to demonstrate a positive direct return on investment. The returns of other projects that are dependent on such infrastructure therefore also need to be taken into account 4. Balance between investment types (using both the CJS IT and Cranfield segmentations) and strategic contribution Portfolio Prioritisation
59
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
Project B
Project E is in the Drop category but enables Projects B, C and D that are positive
Project A
Fil ter Th re s ld ho
Project C Project D
Achievability
Project E Project F
Drop Prove
Attractiveness
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Strategic Drivers
Projects
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Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
30 25 20 15 10 5
Support
Key Operational
Strategic
Managing the Portfolio, Realising the Benefits
62
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Analysis - making the hard decisions cancelling a project unlikely to deliver expected benefits should not be seen as a failure - failing to cancel such a project should be.
Source: KPMG Global IT Project Management Survey
Portfolio Prioritisation
But kill early - dont shoot the dogs, neuter the bitches! - cut off the supply line of poor projects at source.
63
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Categorisation of projects into the following groupings: Commit/Invest Hold/Re-sequence - invest when funds become available Cull or Reject- projects not meeting minimum standards for Attractiveness & Achievability including the minimum hurdle rates of return
Managing the Portfolio, Realising the Benefits
64
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
The CJS IT Delivery Plan for the forthcoming SR period including: Portfolio scope Milestones Costs Benefits
In accordance with Investment Principle 6, the OMNI, OASys, eQuip, Shared Access, Libra and LINK projects have been allocated their baseline funding amounts as detailed in the SR2004 CJS IT Delivery Plan. ViSOR and SOCA costs were re-profiled in 05-06; the subsequent increase in 06-07 has not led to an increase in overall project costs across SR2004. The PROGRESS project has been allocated an additional amount in 06-07 (equal to that returned to the ring fence in 05-06). The NSPIS Custody and Case Preparation project has been allocated 39.08m in 06-07 in accordance with the 190m funding cap agreed by Ministers in July 2005. The amount agreed by the TDB in December 2005 was 32.58m, however the programme has since returned 6.50m of their 05-06 Capital allocation to the ring-fence; subsequently their 06-07 Capital allocation has increased by this amount. CJIT has been allocated SR2004 Delivery Plan baseline funding to develop and deploy approved releases of the CJS Exchange and Bichard 7. PROPOSED ALLOCATION Resource Capital Total 33.30 0.00 33.30 0.59 0.00 0.59 0.94 0.00 0.94 69.85 25.91 0.13 5.50 14.07 0.00 46.00 36.00 4.00 6.31 54.95 6.81 306.00 1.64 -20.00 -18.36 1.00 36.48 0.00 0.00 25.01 2.11 0.00 0.00 0.00 0.00 17.50 7.29 106.00 16.61 -30.00 -13.39 70.85 62.39 0.13 5.50 39.08 2.11 46.00 36.00 4.00 6.31 72.45 14.10 412.00 18.25 -50.00 -31.75 VARIANCE Resource Capital 0.00 0.00 0.00 0.00 0.00 0.00 -6.80 0.00 -0.41 0.00 -16.26 0.00 -10.10 -0.24 0.00 -0.35 0.00 0.00 -0.45 0.00 0.00 0.00 -14.89 0.00 0.00 -0.20 0.00 -3.20 0.00 0.00
Portfolio Prioritisation
FUNDING REQUEST PROJECT (All figures m) Resource Capital COMPASS Case Management System (CMS) 33.30 0.00 Witness Management System (WMS) 0.59 0.00 Serious Organised Crime Agency (SOCA) 0.94 0.00 Offender Assessment System (OASys) 5.50 0.00 HMPS infrastructure (eQuip) 41.28 0.00 NPS infrastructure (OMNI) 29.87 1.45 National Offender Management Information System (NOMIS) 25.91 36.48 NOMS Shared Access 0.54 0.00 Violent & Sex Offender Register (ViSOR) 5.50 0.00 NSPIS Custody & Case Preparation 30.33 39.90 Penalty Notice Processing Project (PentiP) 0.00 2.11 Magistrates Courts Libra programme 56.10 0.00 Crown Court Infrastructure (LINK) 36.24 0.20 eXchanging Hearing Information By Internet Technology (XHIBIT) 4.00 0.00 PROGRESS (formerly ETMP Case Progression Tool) 6.66 3.20 CJIT (Secure eMail & CJS Exchange) 54.95 17.50 CJIT (Bichard 7) 6.81 7.29 CJS IT PROGRAMME TOTAL 331.71 100.84 CJS IT Programme under-allocation / over-allocation (-) -25.71 5.16 HM Treasury baseline reduction (2nd February 2006) CJS IT Programme over-allocation as at 2nd February 2006 -
65
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Programme Highlight Report Milestones (From Detailed Milestones section below) Area 2 North Yorkshire Initial Live Operations (Police to Libra)
Narrative
The Case Prep link is now live Yorkshire (Our 1st Niche force) this link is now on hold because Cancellation of Libra go October means that de proceed until new Libra The Libra deployment s the next update to be p result there is a risk in when the deployment s But most critically, the totally dependent on su resolution of Warwicks issue is still unresolved the required funding. T issues are being worke CJIT. With respect to the Consortium to agree how CJIT and PITO w link.
05-May-06
31-May-06
Completed
100 90 80 70 60 50 40 30 20 10 0
A pr0 M 6 ay -0 6 Ju n-0 6 Ju l-0 A 6 ug -0 S 6 ep -0 6 O ct0 N 6 ov -0 D 6 ec -0 6 Ja n-0 7 Fe b-0 7 M ar07 A pr07 M ay -0 7 Ju n-0 7 Ju l-0 A 7 ug -0 S 7 ep -0 7 O ct0 N 7 ov -0 D 7 ec -0 7 Ja n-0 8 Fe b-0 8 M ar08 A pr0 M 8 ay -0 8 Ju n-0 8
Delivery Plan Targets
% B'Line Actual F'cast
10 30 50 70 90 100
Joining Up progress
Baseline Forecast / Date Actual May-06 May-06 Jul-06 Jul-06 Sep-06 Sep-06 Nov-06 Nov-06 Jun-07 Jun-07 Nov-07 Nov-07 Sep-05 n/a Mar-06 n/a Oct-06 n/a Sep-06 Oct-06 Jun-06 Apr-06 Jun-06 Jun-06 Sep-06 Sep-06 Oct-06 Dec-06 Dec-06 Mar-07 Mar-07 Oct-07 Mar-08 Oct-05 Oct-06 Sep-07 Oct-07 Oct-08 Nov-08 Jun-09 Mar-06 TBA Mar-06 Jul-06 Mar-07 Nov-05 Jul-06 Jun-06 Jul-06 Jul-06 Jul-06 Jul-06 Aug-06 Sep-06 Sep-06 TBA Oct-06 Aug-07 Oct-07 May-06 Jun-06 Jul-06 Oct-06 Nov-07 Nov-07 Dec-05 Jan-06 Dec-05 Jan-06 Jun-06 May-07 Oct-07 Jun-06 Aug-06 Sep-06 Jun-06 Sep-06 Dec-06 Apr-06 Jul-06 Oct-07 Mar-08 May-06 Oct-06 Sep-07 Oct-07 Oct-08 Nov-08 Jun-09 Mar-06 n/a Mar-06 Jul-06 Mar-07 Apr-06 Jul-06 TBA TBA TBA n/a Aug-06 Sep-06 Sep-06 TBA TBA TBA TBA TBA May-06 Jun-06 Jul-06 Oct-06 Jan-08 Nov-07 Jul-06 Oct-06 Sep-06 Sep-06 Sep-06 Dec-07 Dec-07 Sep-06 Nov-06 Dec-06 Jun-06 Sep-06 Dec-06 Jun-06 Aug-06 Oct-06 n/a n/a TBA May-06 n/a n/a
Initiative
Milestone
Area 2 - Avon & Somerset Initial Live Operations (Police to CPS) Area 3 - North Wales Initial Live Operations (Police to CPS) CJS Exchange service deployed to 10% of police forces CJS Exchange service deployed to 30% of police forces CJS Exchange service deployed to 50% of police forces CJS Exchange service deployed to 70% of police forces CJS Exchange service deployed to 90% of police forces CJS Exchange service deployed to 50% of London Boroughs CJS Exchange service deployed to MPS CJS Exchange service deployed to all forces (except MPS) Application Development completed ready for deployment Warwickshire early adopter using live systems Area 2 - North Yorkshire Initial Live Operations (Police to Libra) Area 3 - Suffolk Initial Live Operations (Police to Libra) CJS Exchange service deployed to 10% of CJS areas CJS Exchange service deployed to 30% of CJS areas CJS Exchange service deployed to 50% of CJS areas CJS Exchange service deployed to 70% of CJS areas CJS Exchange service deployed to 90% of CJS areas CJS Exchange service deployed to all 42 CJS areas Work package order issued to application developer
Baseline Forecast / Date Actual Apr-06 Mar-06 May-06 May-06 Aug-06 Aug-06 Dec-06 Apr-07 Apr-07 Jul-07 Jul-07 Nov-07 Dec-07 Dec-07 Jul-07 Jul-07 Jun-08 Jun-08 Mar-08 Mar-06 Apr-06 May-06 Jun-06 Oct-06 Mar-07 May-07 Aug-07 Jan-08 Apr-08 Jul-05 Sep-06 Dec-06 Jun-07 Oct-07 Dec-07 Mar-08 Mar-06 Apr-06 TBA Nov-06 Mar-07 Apr-07 Jul-07 Sep-07 Oct-07 Sep-06 Sep-06 Sep-06 Oct-06 Nov-06 Dec-06 Jun-06 Sep-06 Nov-06 Nov-06 Nov-06 Jan-07 Mar-07 May-07 Jun-07 Apr-06 Oct-06 Feb-07 Mar-07 Jun-07 Aug-07 Sep-07 Jun-06 Sep-06 Oct-06 Nov-06 Jan-07 Feb-07 Jun-06 Dec-06 Mar-07 Aug-06 Dec-06 Mar-07 Jun-07 Dec-07 Mar-08 Apr-06 Jun-06 Apr-06 Jul-06 Mar-08 Mar-06 Apr-06 May-06 TBA Feb-07 Mar-07 May-07 Aug-07 Jan-08 Apr-08 TBA TBA TBA TBA TBA TBA TBA Mar-06 Apr-06 TBA Feb-07 Mar-07 Apr-07 Jul-07 Sep-07 Oct-07 Nov-06 Dec-06 Dec-06 Dec-06 Feb-07 Mar-07 Jun-06 Sep-06 Nov-06 Nov-06 Nov-06 Jan-07 Mar-07 May-07 Jun-07 Apr-06 n/a n/a n/a n/a n/a n/a
Portfolio Prioritisation
(CR Submitted)
(CR Submitted)
System testing commences CJSE XHIBIT Portal development complete CJSE XHIBIT Portal deployed to 10% of CJS areas CJSE XHIBIT Portal deployed to 50% of CJS areas CJSE XHIBIT Portal deployed to 70% of CJS areas CJSE XHIBIT Portal deployed to all 42 CJS areas Application Development completed ready for deployment Deployment to Kingston & Warwickshire pilot sites Deployment to Suffolk & South Wales complete CJS Exchange service deployed to 10% of CJS areas CJS Exchange service deployed to 30% of CJS areas CJS Exchange service deployed to 50% of CJS areas CJS Exchange service deployed to 70% of CJS areas CJS Exchange service deployed to 90% of CJS areas CJS Exchange service deployed to all 42 CJS areas Testing complete Start of deployment (early adopters) Application Development completed ready for deployment Start of national deployment Deployment complete in 50% of areas National deployment complete CJSE Portal/PROGRESS design & prototyping phase complete CJSE Portal/PROGRESS construction phase complete CJSE Portal/PROGRESS end-to-end & NFR testing complete
Recommendations
To ensure NSPIS Case Pre must be completed and the environment must be resolv
eXchanging Hearing Information
XHIBIT
Delivery Plan %
Actual %
Forecast %
Projected %
Narrative
Programme Highlight Report Milestones (From Detailed Milestones section below) DVLA Links r3a - Development Complete DVLA Links r3a - Deployment to Kingston and Warwickshire
Baseline F'cast/Actual Var' (Days)
01-May-05 01-Oct-05
04-Aug-05 10-Apr-06
Completed Completed
10 30 50 70 90 100
Due to cancellation of Libra go VP/FPO-Libra link go live did n go live has been delayed until A and in North Yorkshire resolutio stopping the area from setting a The deployment plan for this lin deployment schedule which is c therefore no further area deploy until Libra have confirmed their
CR Submitted
LINK
(CR Submitted)
PROGRESS/Portal Framework
CJSE Portal/PROGRESS user acceptance testing complete PROGRESS ready for deployment with CMS interface PROGRESS go-live in test areas PROGRESS ready for deployment with XHIBIT interface PROGRESS ready for deployment with all interfaces (incl SPI) PROGRESS ready for national rollout Go Live of redeveloped service CJS Exchange service deployed to 10% of CJS areas - drop CJS Exchange service deployed to 30% of CJS areas - drop CJS Exchange service deployed to 50% of CJS areas - drop CJS Exchange service deployed to 70% of CJS areas - drop CJS Exchange service deployed to 90% of CJS areas - drop CJS Exchange service deployed to all 42 CJS areas - drop Early Adopter Sites CJIT Connectivity Testing - new Oct 06 Deployments CJIT Connectivity Testing - new Nov 06 Deployments CJIT Connectivity Testing - new Dec 06 Deployments CJIT Connectivity Testing - new Feb 07 Deployments CJIT Connectivity Testing - new Mar 07 Deployments CJIT Connectivity Testing - new Finalised and baselined requirements - drop Solution development complete - drop End to End testing complete - drop Magistrates Court Finalised and baselined requirements - new Magistrates Court Solution development complete - new Magistrates Court End to End testing complete - new Crown Court Finalised and baselined requirements - new Crown Court Solution development complete - new Crown Court End to End testing complete - new Overall Programme Outline Business Case (Business Justification) Full Business Case Evaluation Procurement Strategy Overall Programme Final Business Case (Investment Decision)
Recommendations
There are no specific recom consideration at this point.
OASys
eQuip
Delivery Plan %
Actual %
Forecast %
Projected %
Actual vs Forecast Spend (To Date 06/07) / Forecast Spend vs Budget (Full Year)
Initiative Profiled Budget YTD May
Resource Capital
Variance
Resource
Variance
Capital
Variance
Resource
Variance
Capital
Source
Comment
There is a risk that the delay in the deployment of the Libra application, caused by the requirement for Magistrates' Areas to further develop business process changes before they migrate to Libra, will reduce the scope for interfacing with the police and other systems using the CJS Exchange during 2006/7.
8.81
8.81
Witness Management System WMS Police Custody & Case Preparation Penalty Notices Project PentiP eXchanging Hearing Information XHIBIT Crown Court Infrastructure LINK Magistrates' Court Case Management System
LIBRA
CPS return shows forecast for planned work. CPS advises not all planned projects have secured funding and within this forecast, some indicative costings Debbie have been used to inform the forecast & Flunder/ Kirsty Tovey is subject to change. RF budget is supplemented with CPS baseline funding. April figures shown. PITO have not had their 06/07 budget delegated and are unable to provide Nick Pittman profiles until such time. Nil return. Assume same reason as Andy NSPIS Chaytor Unable to provide figures for May due to the timing of internal DCA processes. Future returns will be one month in arrears. April figures presented here.
Ongoing
Financial Performance
Completed Completed The ToR is now being drafted and will be ready for TDB approval in September Ongoing Terms of Reference for the Board have been distributed to the TDB. The Board is in the process of being established July Carl Bate July
Failure to agree & operate comprehensive data ownership & security model for the CJSE.
- CJOs develop & agree individual workarounds on a project by project basis. - Risk to named individuals - Damage to public confidence in CJS.
Medium
Medium
Carl Bate
0.06 0.15 -
Vijay Patel
Implementation failure of Cross-CJS Release Management planning may result in mis-aligned delivery schedules.
There will be a cost impact of mis-aligned delivery schedules due to, for example, additional regression testing being required.
High
Low
Ian Young
National Offender Management Information System NOMIS Violent & Sex Offender Register ViSOR HMPS Extranet Shared Access Offender Assessment System Prisons Infrastructure eQuip Offender Management National Infrastructure
OMNI
Current Infrastructure within the CJS The performance impact on networks from may not be able to support Joined-Up- Cross-CJS working degrades the performance Working as envisaged within the CJS from current systems to the extent that they Delivery Plan. become 'unusable'.
High
High
David George
NOMS unable to run reports on Adelphi until 13 June, but expect to provide some actuals later that day. To include as an update when received
Proposed Programme Risks for TDB to Consider There is a risk that some Forces do not complete their rollouts by March 2007. This is primarily due to some Forces having to reschedule their Go Live dates because of the delay to the implementation of V5.1, which was caused by the issues over funding. 1) Ensure that only hard constraints are accepted as valid reasons for delaying rollout into 07/08 Medium High 2) Communicate exception handling process to Forces July Derek Cake On Going John Neil
0.097
0.01 6.81 -
7.29 -
YJB / YJS ICT Programme Bichard Recommendation 7 CJIT (CJS Exchange & Secure eMail) Under / Over (-) allocation
Figures are for April. Capital spends but Steve there is no RF Capital budget. Query Hatherall/ sent to PROGRESS - no response Trevor Read received Robert Figures are for May Burnand David Gosling Figures are for May
Risk Assessment
1.04 1.14
0.85 1.09
Total Programme
Un-coordinated updates to CJO systems could lead to excessive downtimes, regression testing could have a potential impact on costs and benefits. In the long term the ideal position would be for all CJOs to agree to a scheduled timetable of Uncontrolled change to NSPIS updates. The first step taken to address this Custody & Case Preparation, has been the establishment of a Change OMEGA, Compass, Libra and the Advisory Board. However, it is recognised that CJS Exchange will have an impact on it will be some time before this Board will be other parties. effective. In the meantime the responsibility is with individual CJOs to raise awareness of changes via the ExISS Board. Configuration management of interfaces.
1) Ensure that any changes to the product set are considered by the CJS community before being implemented
PITO
High
Low
September
CJIT
Resource
Capital
Resource
Capital
Resource
Capital
Resource
Capital
33.7%
Total
17.6%
Very High
2006-07 Full Year Budget (source: 200608 DP) 34.83 14.07 86.00 101.39 6.31 0.27 6.81 54.95 306.00 1.37 27.12 37.48 7.29 17.50 106.00 16.61
Revised Annual Budget (as at April 2006) 34.83 14.07 86.00 101.39 6.31 0.27 6.81 54.95 306.00 1.37 27.12 37.48 7.29 17.50 106.00 16.61
0.1%
3.4%
CPS YJB
CPS Police DCA NOMS PROGRESS YJB BR 7 CJIT 20.9% PoliceUnallocated DCA BR 7 Total CJIT
8.5% 34.8 10.0% 41.2 20.9% 86.0 33.7% 138.9 1.5% 6.3 0.1% 0.3 3.4% 14.1 17.6% 72.5 10.0% NOMS PROGRESS 4.4% 18.0 Unallocated 100.0% 412.0
High
PROBABILITY (DESCRIPTION) Less than 5% chance. Extremely unlikely, or virtually impossible. 6-20%. Low, but not impossible. 21-50%. Fairly likely to occur. 51-80%. More likely to occur than not. Greater than 81%. Will almost certainly occur.
IMPACT (DESCRIPTION) Minimal impact on the achievement of CJS IT Delivery Plan Milestones. Can be easily and quickly remedied. No measurable impact on the reputation of the CJS IT Programme.
IMPACT
18
20
21
24
25
12
16
19
22
23
Medium
Minor impact on the achievement of CJS IT Delivery Plan Milestones. Can be recovered but with some cost or delay. Little or no impact on the reputation of the CJS IT Programme. Significant impact on the achievement of CJS IT Delivery Plan Milestones. Can be recovered but at significant cost or delay. Some impact on the reputation of the CJS IT Programme. Major impact on the achievement of CJS IT Delivery Plan Milestones. Cannot be recovered in the short term. Major impact on the reputation of the CJS IT Programme. Huge impact on the achievement of CJS IT Delivery Plan Milestones. Cannot be recovered in the short term. Huge impact on the reputation of the CJS IT Programme.
10
11
14
15
17
Low
13
Very Low
1
Very Low
2
Low
4
Medium
6
High
7
Very High
PROBABILITY
66
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
2. In Prioritisation exercises - everything is out until its in! 3. Investment Principles do not remove the need for informed judgement 4. Triangulate appraisals - consider the appraisal from more than one perspective 5. Agreed processes do not remove the need for hard decision making 6. Take charge - if you dont someone else will! 7. Play by the rules - individual agendas must be left behind 8. One-off Portfolio Reviews and Investment Appraisals need to be backed up by repeatable processes of on-going review and appraisal 9. Establish an independent Portfolio Unit to act as an Intelligent Customer
Managing the Portfolio, Realising the Benefits
67
Objectives / Requirements
Portfolio Segmentation
Portfolio Reviews
Portfolio Analysis
Performance Reporting
Lessons Learnt
Portfolio Prioritisation
Value Management 1
Ensuring benefits are robust and realisable
Cabinet Office Report to the OECD on the UK Approach to Benefits Realisation 2006 - CJS ITconsidered a best practice case in the UK
69
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Overview Benefits Eligibility Framework (BEF) Benefits Integrity Check Strategic Alignment Quarterly Benefits Reporting Benefits Risk Management
70
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
In accounting for costs we are guided by: Financial Reporting Standards International Accounting Standards Generally Accepted Accounting Practice Government Accounting Internal Costing Manuals
71
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
72
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
73
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
11. Legacy costs are those associated with systems being replaced by applications and infrastructure developed from investment in the CJS IT Portfolio. These costs can be treated as a cost reduction (reduced funding requirement) or a benefit depending on whether they are:
1 1 . a r e c o n s id e r e d i. e . a n y in v e s t m e n t p r i o r t o t h e b e g i n n in g o f t h e S R 2 0 0 2 p e r io d i s ig n o r e d f o r t h e p u r p o s e s f dused to inreduce the I T c o s of e n e f it c a s e . by the current o e t e r m in g t h e C J S cost t / b the project
F a c to r s Im p a c t in g C o s t & B e n e f it F o r e c a s t s P r o je c t L if e S p a n
cost of running, maintaining and refreshing legacy systems by recycling these costs and hence reducing the funding required from the ring fence; or redirected to alternative value adding services or activities.
1 2 . T h e c o s t s a n d b e n e f it s c o n s id e r e d s h o u ld c o v e r t h e p e r i o d o f t h e u s e f u l l if e t i m e o f t h e a s s e t s / c o n t r a c tScenarioB o o k p a g e 1 9 ) 1 . T h e m a x im u m p e r i o d u s e d s h o u ld (G re e n 1 b e t e n y e a r s f r o m c o m m e n c e m e n t o f in v e s t m e n t f r o m t h e r i n g f e n c e t o d e m o n s t r a t e t h a t t h e Ongoing psupport kand rmaintenance tcosts0of e a r snewesystem are less than those of p r o je c t a y b a c p e i o d i s w it h i n h e 1 y the s p c if i e d b y t h e S R 2 0 0 4 C J S S e tthem legacy system. e No je c t ( a n d has been crequestedt sfrom the ring fence after t le e n t. W h e re th p r o funding t h e a s s o ia t e d c o s and b e n e f it s ) is n o t e x p e c t e d t o la s t f o r 1 0 y e a r s , t h e r e le v a n t s h o r t e r p e r io d s h o u ld deployment b e u s e d . T h e B e n e f it s I n t e g r i t y C h e c k w i ll s e e k t o v e r if y t h a t t h e re i s e v id e n c e t o s u g g e s t t h a t b e n e f i t s i n t h e la t t e r y e a r s o f t h e 1 0 y e a r p e r io d a r e g e n u i n e ly r e a l is a b le o n t h e b a s is o f t h e c o s t s c la im e d . O p t im i s m B ia s 1 3 . T h e G r e e n B o o k s t a t e s t h a t , T h e r e is a d e m o n s t r a t e d , s y s t e m ic , t e n d e n c y f o r p r o j e c t a p p r a is e r s t o b e o v e r l y o p t im is t ic . T h i s is a w o r l d w id e p h e n o m e n o n t h a t a f f e c t s b o t h t h e p r iv a t e a n d p u b l ic s e c t o r s a p p r a i s e r s t e n d t o o v e r s t a t e b e n e f it s , a n d u n d e r e s t i m a t e t i m i n g s a n d c o s t s , b o t h c a p it a l a n d o p e r a t i o n a l T o r e d r e s s t h is t e n d e n c y , a p p r a is e r s s h o u l d m a k e e x p l ic i t a d ju s t m e n t s f o r t h i s b ia s . T h e s e o f t h e c o s t s a n d d e c r e a s in g , a n d
Scenario p 1 5 . A d ju s t m e n t s a r e m a d e t o : C a 2 it a l c o s t s ; W o r k s d u r a t io n ; O p e r a t in g C o s t s ; a n d B e n e f it s . T h e s e a d ju s t m e n t s w il l r e d u c e a s m o r e r e lia b le e s t im a t e s o f r e le v a n t c o s t s a r e b u il t u p , a nOngoing n e r ic r is k s a n d p r o je c t s p e c if ic of k s anew system l are d a s g e support and maintenance costs r is the r e e f f e c t iv e y m it i g a t e d . the legacy system. Funding has been requested from the
less than those of ring fence after Benefits W orking Group deployment i.e. the legacy costs are re-directed to other activities. CJIT Portfolio Unit - Benefits Management Team
Benefits W orking Group
8 th September 2006
75
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Effectiveness
Sponsoring CJO Other CJOs Other Parts of the CJS Cross CJS Beyond the CJS
76
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Validating Benefits
Project View of Benefits
Benefits Contributor
If funding approved Benefits Eligibility Framework Check alignment with BEF e.g. double counting, cost avoidance
CJIT VMO
Project Benefits Lead and Benefits Realisation Lead agree Efficiency & Effectiveness benefits
Benefit Realisation Plan: Police Benefit Realisation Plan: CPS Benefit Realisation Plan: Courts Benefit Realisation Plan: Corrections
Benefits Recipients
Benefits Validation with Recipients Benefits Validation with Efficiency Planners Benefits Validation with Strategic Planners
Efficiency Planners
Strategic Planners
Strategic Planners agree Efficiency & Effectiveness Benefits that contribute to Strategic Targets & priorities
Victims & Witnesses Offences Brought To Justice (OBTJ) Enforcement Reduced Re-offending
Benefit Realisation Leads and Efficiency Planners agree Efficiency Benefits that contribute to Departmental Efficiency Plans
78
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Strategic Alignment
Value Management Role 1
Number 1 in the National Audit Office/Office of Government Commerces list of Common Causes of Project Failure is: Lack of a clear link between the project and the organisations key strategic priorities So its fundamental - but whilst many Business Cases make claims about strategic alignment few actually demonstrate it.
79
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Strategy / Priority
Contribution
Q1 06/07 SR04- SR07 CJS IT CONTRIBUTION TO CJS 2008 VISION - CJS PSA Standard Settlement Condition - Reduce Re-offending
Benefit Description (1) Source (1) (4) Benefit Category
(1)
(1)
Hypotheses (2) (3) OASys: provides data to be used by researchers to produce statistical reports, highlight trends in offending and offending related needs, and to evaluate the effectiveness of interventions, regimes, and work programmes. OASys: improves value for money from interventions through more informed definition and targeting to offender needs OASys: improves assessments meaning NPS and HMPS can target offenders more appropriately to interventions (for drugs and sexual offences programmes, for instance) thereby improving completion rates
Improved understanding of offenders risks and needs that OASEFEo001 OASys delivers increases NOMS impact on offending behaviour through better targeted interventions.
Effectiveness Opportunity
2005/6 indicators: 100% NPS Areas & Prisons, OASys John Powls (on behalf of Christine installed; At least 430,000 completed NPS OASys assessments; At least 48,000 completed HMPS OASys Knott) assessments; At least 90% of OASys ROH assessments undertaken on High/Very High Risk offenders; At least 90% of OASys assessments undertaken on Prolific/Other Priority Offenders. At least 15,000 programme completions per year. At least 68.57% of offenders completing programmes commenced.
OASys
Creation of the central O-D+C5EAT database enables the OASEFIO005 provision of aggregate offender data across NOMS.
Efficiency Opportunity
John Powls (on 2005/6 indicators: O-DEAT database to have at least 800,000 OASys: enables HMPS and NPS to adopt common techniques and exchange offender behalf of Christine completed offender assessment records; 624 O-DEAT reports. assessment information efficiently and effectively so that offenders are better managed Knott) across service boundaries, i.e. when they move within and between communities and prisons
GREEN
Mission Critical
C-NOMIS
C-NOEFIo010
Efficiency Opportunity
John Powls (on Not included in the baseline and tracking sample. behalf of Christine Possible use of structured questionnaire Knott)
C-NOMIS: enables HMPS and NPS to exchange information efficiently, thus releasing opportunity efficiency savings due to less time and frustration in sourcing files/information/chasing up queries and more time spent in processing the core business of managing offenders C-NOMIS: reduces multiple rekeying of data and organisational process improvement
WHITE
Mission Critical
C-NOMIS
Additional NPS benefit: Reduction in mulitple re-keying of C-NOEFIo011 data & organisational process improvement
Efficiency Opportunity
John Powls (on Not included in the baseline and tracking sample. behalf of Christine Possible use of structured questionnaire Knott) John Powls (on The number of Quantum PCs that do not need to be installed behalf of Christine Knott)
WHITE
Highly Desirable
SHARED ACCESS
SHARED ACCESS
SHAEFEo005 Extranet will allow NOMS to better manage entry and release of prisoners from public to private prisons and visa versa (COP users will be able to access OASys and this will allow immediate updating of prisoner records) Extranet will allow COPs and other external organisations SHAEFEo006 like charities to integrate into the NOMS community (COP and other external users will be able to update prisoner records on-line) CEI CONSEQUENCE 2 Reduce offences committed on bail CJIT CEIc2
Effectiveness Opportunity
SHARED ACCESS: Allows NOMS to better manage entry and release of prisoners from public to private prisons and visa versa
WHITE
Desirable
Effectiveness Opportunity
John Powls (on Less time spent by staff in tracing prisoner records following behalf of Christine transfers between HMPS and private prisons Knott)
SHARED ACCESS: Allows COPs and other external organisations like charities to integrate into the NOMS community
WHITE
Desirable
C-NOMIS ExISSr1b LIBRA NSPIS SeM VISOR XHIBIT portal C-NOMIS LIBRA NSPIS OASys SeM
Effectiveness Opportunity
LIBRA/ ExISSr1b/ NSPIS, XHIBIT portal and SeM: provides earlier access to electronic court results (including bail decision and conditions), enabling faster more accurate PNC updates NSPIS, VISOR, LIBRA, C-NOMIS, and SeM: provides access to bail information therefore facilitates more informed bail decisions
AMBER
Minimal
CJIT CEIc12
Effectiveness Opportunity
OASys: prevents multiple assessments therefore assisting end to end offender management C-NOMIS and SeM: enables connectivity to external agencies - authorised agencies (e.g. drug treatment providers) facilitating better information sharing OASys and C-NOMIS: provides information about interventions/ measures and monitors outcomes so facilitating more effective use of interventions C-NOMIS: provides access to full offender history facilitating more informed sentence planning and improved interventions targeting NSPIS, C-NOMIS, OASys: identifies priority and other prolific offenders and tailors evaluation appropriately LIBRA: provides 3rd party access to court information
AMBER
Desirable
Benefit realisation behind plan Difficulties with benefits measurement/evidence means realisation is uncertain Benefit realised ahead or in line with plan Benefits not included in BRP total as not confident in forecast. realisation to be confirmed Benefits not yet due for realisation
Value to Strand Board targets In the context of all Strand Board iniiatives set to achieve SR04 targtes, how valuable is this benefit considered to be? 1. Mission Critical, 2. Highly Desirable, 3. Desirable, 4. Minimal, 5. Not Known
(1) Source: CJO Benefits Realisation Plans Q1 06/07 (BRP) (2) Source: CJIT Combined Effectiveness Impact (CEI) Model vA1.0 July 05 (3) Source: Appropriate programme/ project business case (4) Note: Number refers to the benefits unique reference number allocated to programme benefits (and assigned in the 1 pagers and BRPs) (5) Subject to change request - see change control worksheet
Benefit
KPIs
Managing the Portfolio, Realising the Benefits
Status
81
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Benefits Realised this financial year Monetary Value of Benefits Realised YTD Forecast in latest published Delivery Plan YTD Variance
3 -1 12 20
Year
Project Life Cycle Benefits Profile (Top 5-10 benefits over 10 years) Impact Benefit Description
Performance M
Benefit Category
Main Recipient
Realisation Ramp Up
173.71 Effectiveness opportunity PSA Targets 1 and 3 694.86 Effectiveness opportunity PSA Targets 2, 3 and 5 4.06 Effectiveness opportunity PSA Targets 1, 2, 3 and 5 31.78 Effectiveness opportunity PSA Targets 2, 3 and 5
CJS
To start 6 months after completion in a CJ Area Time from CC result to PNC update
UK economy
Benefit not yet due for realisation Benefit ahead of or in line with plan
Percentage of ineffective hearings
Crown Court
From 6 months after Go-live at each court centre Number of disposals From 3 months after Go-live at each court centre Backlog count Number of disposals
Benefit not yet due for realisation Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan
Crown Court
Crown Court
From 1 month after Go-live at each court centre Number of enquiries made to CC No of daily lists faxed/time taken.
7 CPS Benefits
CPS
3 months after go live in a CJ Area No of enquiries made to CC No of daily/warned lists sent and time taken No of bail forms sent and time taken
8 Police Benefits
Police
10 PSA Target 5 9 NOMS Benefits 36.9 Effectiveness opportunity PSA Targets 2, 3 and 5 10 Reduction in solicitor waiting 12.7 Efficiency cashable Crown Court From 1 month after Go-live at each court centre NOMS Following rollout to all prisons in a CJA Reduced waiting time claim values
Benefit not yet due for realisation Benefit not yet due for realisation
Approved by SRO:
82
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Strategic Alignment
Benefits Maturity Self Assessment
Quality of Benefit Forecast
AMBER RED GREEN GREEN GREEN
Recipient Benefits
2006/07 2007/08 Forecast
OBTJ
D HD HD D M D
Enforcement
M HD M
Public protection
TBC TBC TBC TBC TBC TBC TBC TBC TBC TBC TBC TBC TBC TBC Efficiency Cashable Efficiency Opportunity Effectiveness Total Efficiency Cashable Efficiency Opportunity Effectiveness Total
Applications
NSPIS Custody & Case Prep PentiP COMPASS CMS (50%) NWNJ IT tool (WMS) SOCA Libra application (incl Exchange 3a) OASys NOMIS (70%) ViSOR CJSE Release 1a (NSPIS-CMS) CJSE Release 1b (NSPIS - Libra) XHIBIT/CJSE Release 2a&b (Portal) PROGRESS Secure Email/Emailing Securely CJSE Release 3a (Libra/DVLA) CJSE Release 3b (NSPIS/DVLA) COMPASS infrastructure (50%) Libra enabled (Enforcement Initiatives) NOMIS infrastructure (30%) OMNI infrastructure OMNI cost effectiveness LINK enabled (ETMP xCJS model) Shared Access Equip direct Equip enabled (Phoenix) Combined Effectiveness Impact Social Value Benefits
TOTAL BENEFITS
79.08 0.00 10.95 5.70 0.61 19.55 79.52 3.70 0.39 1.63 0.39 13.44 1.38 1.49 0.00 1.10 85.95 13.44 1.58 1.03 0.00 8.68 5.20 16.50 41.41 10.17 15.78
M M D D M M D M D
14.06 0
9.32
GREEN GREEN
6.57 2.69 1.62 0.26 0.24 6.83 2.93 1.62 CPS Benefits Realisation Plan
Q1 03/04 - Q1 06/07 Realised 2006/07 Q1 Plan Actual
2006/07
2007/08
Forecast
38.78 0.25
8.88 0.39
7.38 0.12
2006/07
2007/08
Infrastructure
Project Benefits
Forecast
0.01 see COMPASS CMS 59.8 see LIBRA application 1.11 see NOMIS application 0.00 0.00
4.08 4.08
1.15 1.15
418.66
2,212.87
121.49
NOTE: Benefits shown only include quantified, validated benefits but other enabled benefits have been identified and will be included as further work is undertaken. This includes 1. Projects provisionally included in the portfolio that are still being scoped i.e. YJB ICT and BR7 7.95 2. Projects in the process of bidding for funding i.e. NES 3. Applications within the exchange or CJO pipeline which run off CJS IT funded 41.35 infrastructure
0.65
Realised Efficiency Cashable Efficiency Opportunity D D HD M HD=Highly Desirable MC=Mission Critical Effectiveness Total
Forecast
Prog
KEY
M= Minimal
D=Desirable
Total 10 year CJS IT Application benefits Ring Fence only CJS IT Application NPV Ring Fence only ('m)
Based on Proving Model assessments completed March 2005. These will be refreshed to reflect latest business cases in due course. CEI line is signed off by Strand Board leads.
Cumulative Cost Benefit Analysis Benefits as % of Cost Efficiency Cashable Efficiency Opportunity Effectiveness
11.4%
Cost Benefit Analysis3 Total Police RF Cost/Budget Direct Benefits Enabled Benefits Total Police Benefits Total Corrections RF Cost/Budget Direct Benefits Enabled Benefits Total Corrections Benefits Total CPS RF Cost/Budget Direct & Enabled Benefits Total CPS Benefits Total HMCS RF Cost/Budget Direct Benefits Enabled Benefits Total HMCS Benefits
2003-04 57.09 0.53 0.53 111.21 5.50 5.50 25.05 154.55 3.10 3.10
2003-05 90.37 1.63 1.63 194.71 15.38 8.55 23.93 58.82 2.05 2.05 283.61 0.30 6.36 6.66
2003-06 143.99 5.21 5.21 270.55 38.64 10.12 48.75 97.87 31.53 31.53 426.40 2.93 15.04 17.97
2003-07 184.62 32.71 32.71 409.69 79.35 19.22 98.57 132.70 68.59 68.59 512.40 12.10 21.50 33.60
2003-08 202.72 84.74 84.74 521.21 126.34 49.96 176.30 170.63 110.45 110.45 585.28 37.12 28.48 65.60
Realised
Plan
Actual
Forecast
42%
Total
0.16 0.16
0.05 0.050
0.046 0.046
0.210 0.21
0.373 0.37
34%
65%
Benefits Rating Benefit behind schedule Difficulty with tracking/measure. Benefit on track/ahead of schedule Benefit not yet due for realisation
RAG of Benefits in SR2004 Benefits Realisation Plans Q4 05/06 Q1 06/07 No. % No. 2 2% 9 35 36% 23 19 20% 19 41 42% 44
11%
Benefits By Type
Home CJO
x-CJS
Social Value
Ring Fence actuals from 2003-06 and Delivery Plan RF budget from 2006-08. Full benefits by recipient used. Corrections includes YJB.
Severity
Risk Assessment
Cost/Benefit Analysis
Managing the Portfolio, Realising the Benefits
84
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
Mitigation Strategies
Root Cause Modelling to capture cross system benefits Portfolio-level research into social value benefits Potential Opportunity Value benefits managed on an active basis Process modelling and computer simulation to identify scope for increased benefits particularly at the points of intersection between agencies Benefits Eligibility Framework Independent review of Business Cases against the Benefits Eligibility Framework Benefits agreed with recipients Efficiency Benefits validated with departmental efficiency plans Effectiveness/Performance benefits validated with strategic planners Project Benefits Realisation Plans agreed by Benefits Working Group Organisation/Agency Benefits Realisation Plans prepared for the year ahead for all benefits to be realised Quarterly benefits reporting against plan
85
Overview
Strategic Alignment
Quarterly Reporting
Risk Management
86
Value Management 2
Capturing all aspects of value
CISCO Report on behalf of the New York Housing Authority to the US NECCC 2005 - your CJIT Portfolio Management initiative is considered a strong and proven approach to measuring the benefits of IT investments.
87
Overview
Social Value
Political Value
Overview Cross System Benefits Social Value Political Value Potential Opportunity/Foundation Value
Managing the Portfolio, Realising the Benefits
88
Overview
Social Value
Political Value
Business cases were found to be particularly strong on the assessment of costs and benefits related to the lead department itselfHowever, the identification and quantification of external benefits, for example to users or other departments, were less well handled resulting in business cases that often understated the benefits, and provided an incomplete base for tracking future 3rd party benefits through to realisation.
Source: Cabinet Office, UK Country Report on Benefits Realisation
89
Overview
Social Value
Political Value
The solution
Value Management Role 2
Cause and Effect analysis similar solutions include: Fujitsus Results Chain Cranfields Benefits Dependency Network Root Cause Modelling
90
Overview
Social Value
Political Value
8 9
6 8 2
11 More 11 More effective effective leadership leadership 10 Better 10 Better skilled skilled & equipped & equipped people people 5 Human 5 Human Resources Resources organisation organisation development development
3 Transportation 3 Transportation balanced with balanced with other liveability other liveability factors factors
1 8 Higher 8 Higher quality quality solutions solutions 2 4 3 Enhanced 3 Enhanced economic economic opportunity opportunity 1 Balanced with 1 Balanced with growth, revenue growth, revenue base & needs base & needs
91
Overview
Social Value
Political Value
D R I V E R S
IS/IT Enablers
JW113
Enabling Changes
Business Changes
Business Benefits
Investment Objectives
92
Overview
Social Value
Political Value
Overview
Social Value
Political Value
Performance Target 1 Performance Target 2 Performance Target 3 Performance Target 4 Efficiency Target
Address Problems
(root causes)
Probation 0.00% Cost of inappropriate time 5,523,963 HMPS in custody pa 100.00% YOT 0.00% Police % by recipient CJO x Other: Legal Aid 0.00% agency (Note a): Courts (MC) 0.00% Other: W itness Payments 0.00% Inappropriate tim e in Cost Courts (CC) of remand place per 0.00% Other: Defence Sols, day 0.00% custody CPS 0.00% Other: Prosecution counsel 0.00% ProbationNo. in of inappropriate 0.00% HMPS custody events pa 100.00%
YOT
62,067
89 Assumptions and sources: i) Period of inappropriate custody assumed 1 day/night (Estimate CJPD Paul Henderson) ii) Assume no. of inappropriate custody events = no. of detainees subsequently bailed next day Source: Flows and Cost model CJPD 2001/02. iii)
Cost of inappropriate time0.00%5,523,963 in custody pa Other: Legal Aid 0.00% Other: W itness Payments Police % by recipient CJO Other: Defence Sols, agency (Note a): Courts (MC) Other: Prosecution counsel Courts (CC) CPS Probation HMPS YOT Other: Legal Aid Other: W itness Payments Other: Defence Sols, Other: Prosecution counsel 0.00% 0.00% 0.00% x 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
94
Overview
Social Value
Political Value
95
Overview
Social Value
Political Value
C ost of re m and p la ce per day N o. in of in approp riate cu stody eve nts pa C ost of ina ppropriate tim e in custo dy pa
62 ,0 67 5,523 ,9 63
89 Ass um p tio ns a nd s ou rces: i) Period of in app ro priate cu stody a ssum ed 1 da y/nig ht (E stim ate C JP D P aul He nderso n) ii) A ssu m e no . o f inapp ro priate c ustod y e vents = no. of detaine es su bseq uently baile d next d ay S ou rc e: Flows a nd C ost m od el C JP D 2 001/02 . iii)
% b y recip ie nt CJ O P olice In ap prop riate tim e in age ncy (N ote a ): cus to dy C ourts (M C ) C ourts (C C ) C PS P ro batio n H MP S
x C ost of re m and p la ce per 0.00 % day 0.00 % N o. in of in approp riate 0.00 cu stody eve nts pa % 0.00 % C ost of ina ppropriate tim e in custo dy pa 100.0 0%
62 ,0 67 5,523 ,9 63
89 Ass um p tio ns a nd s ou rces: i) Period of in app ro priate cu stody a ssum ed 1 da y/nig ht (E stim ate C JP D P aul He nderso n) ii) A ssu m e no . o f inapp ro priate c ustod y e vents = no. of detaine es su bseq uently baile d next d ay S ou rc e: Flows a nd C ost m od el C JP D 2 001/02 . iii)
Y OT 0.00 % x P olice % b y recip ie nt CJ O O ther: L egal Aid 0.00 % age ncy (N ote a ): C en ts 0.00 % O ther: W itnes s Pa ymourts (M C ) 0.00 % In ap prop riate tim e in ost of re m an d place pe r 0.00 % C O ther: D efen ce S ols , ourts (C C ) 0.00 % da y cus to dy 0.00 % O ther: P rose cution C PS co unse l 0.00 % P ro batio n N o. in of inapp ro priate 0.00 % cu stody ev ents pa 100.0 0% H MP S
6 2,067
89 Assu m ption s an d so urce s: i) P eriod o f inap propriate cus to dy ass um e d 1 day/n igh t (E stim ate CJ P D P aul Hen derso n) ii) A s sum e no. of ina ppropriate cu stody eve nts = no. of detainee s sub sequ ently bailed next d ay S ource: F low s and C os t m odel CJ P D 200 1/02. iii)
C ost of in approp riate tim e0.00 % 5,52 3,963 in cus to dy pa O ther: L egal Aid 0.00 % Y OT % b y recip ie nt CJ O ther: W itnes sePa ym en ts P olic age ncy (N ote a ): O ther: D efen ce S(MC ) C ourts ols , O ther: P rose cution co unse l C ourts (CC ) C PS P ro bation H MP S YOT O ther: L ega l A id O ther: W itne ss P aym e nts O ther: D efen ce S ols, O ther: P ros ecution co uns el 0.00 % 0.00 % 0.00 % x 0 .00% 0 .00% 0 .00% 0 .00% 10 0.00% 0 .00% 0 .00% 0 .00% 0 .00% 0 .00%
96
Overview
Social Value
Political Value
ssum ptions and sources: 89 A i) Period of inappropriate custody assumed 1 day/night (Estimate CJPD Paul Henderson) ii) Assume no. of inappropriate custody events = no. of detainees subsequently bailed next day Source: Flows and Cost model CJPD 2001/02. iii) 5,523,963 62,067 x 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Police Courts (MC) Courts (CC) CPS Probation HMPS YOT Other: Legal Aid Other: Witness Payments Other: Defence Sols, Other: Prosecution counsel
Efficiency Plans
Q1 06/07 SR04- SR07 CJS IT CONTRIBUTION TO CJS 2008 VISION - CJS PSA Standard Settlement Condition - Reduce Re-offending
No. Source Project 1 OASys
(1)
Benefit Category
(1)
(1)
Improved understanding of offenders risks and needs that OASEFEo001 OASys delivers increases NOMS impact on offending behaviour through better targeted interventions.
Effectiveness Opportunity
Management Summary
Benefit ID No Benefit Owner: Benefit Category: Detailed Description: Monetary Value Impact % Realisation Ramp Up % Benefit ID No Strategic Alignment Benefit Owner: Benefit Category: Environmental: Detailed Description: Management Summary Monetary Value Benefit Dependencies: Impact % Other Projects: Technology: 2005-06 Planned Actual 2005-06 Planned Actual
John Powls (on OASys: provides data to be used by researchers to produce statistical reports, highlight 2005/6 indicators: 100% NPS Areas & Prisons, OASys behalf of Christine installed; At least 430,000 completed NPS OASys trends in offending and offending related needs, and to evaluate the effectiveness of Knott) assessments; At least 48,000 completed HMPS OASys interventions, regimes, and work programmes. OASys: improves value for money from interventions through more informed definition and assessments; At least 90% of OASys ROH assessments undertaken on High/Very High Risk offenders; At least 90% of targeting to offender needs OASys assessments undertaken on Prolific/Other Priority OASys: improves assessments meaning NPS and HMPS can target offenders more Offenders. At least 15,000 programme completions per year. At appropriately to interventions (for drugs and sexual offences programmes, for instance) least 68.57% of offenders completing programmes thereby improving completion rates commenced. John Powls (on 2005/6 indicators: O-DEAT database to have at least 800,000 OASys: enables HMPS and NPS to adopt common techniques and exchange offender behalf of Christine completed offender assessment records; 624 O-DEAT reports. assessment information efficiently and effectively so that offenders are better managed Knott) across service boundaries, i.e. when they move within and between communities and prisons
OASys
Creation of the central O-D+C5EAT database enables the OASEFIO005 provision of aggregate offender data across NOMS.
Efficiency Opportunity
GREEN
Mission Critical
C-NOMIS
C-NOEFIo010
Efficiency Opportunity
RAG Status
4 C-NOMIS Additional NPS benefit: Reduction in mulitple re-keying of C-NOEFIo011 data & organisational process improvement Efficiency Opportunity
John Powls (on Not included in the baseline and tracking sample. behalf of Christine Possible use of structured questionnaire Knott)
C-NOMIS: enables HMPS and NPS to exchange information efficiently, thus releasing opportunity efficiency savings due to less time and frustration in sourcing files/information/chasing up queries and more time spent in processing the core business of managing offenders C-NOMIS: reduces multiple rekeying of data and organisational process improvement
WHITE
Mission Critical
John Powls (on Not included in the baseline and tracking sample. behalf of Christine Possible use of structured questionnaire Knott) John Powls (on The number of Quantum PCs that do not need to be installed behalf of Christine Knott)
WHITE
Highly Desirable
SHARED ACCESS
SHARED ACCESS
SHAEFEo005 Extranet will allow NOMS to better manage entry and release of prisoners from public to private prisons and visa versa (COP users will be able to access OASys and this will allow immediate updating of prisoner records) Extranet will allow COPs and other external organisations SHAEFEo006 like charities to integrate into the NOMS community (COP and other external users will be able to update prisoner records on-line) CEI CONSEQUENCE 2 Reduce offences committed on bail CJIT CEIc2
Effectiveness Opportunity
SHARED ACCESS: Allows NOMS to better manage entry and release of prisoners from public to private prisons and visa versa
WHITE
Desirable
Effectiveness Opportunity
John Powls (on Less time spent by staff in tracing prisoner records following behalf of Christine transfers between HMPS and private prisons Knott)
SHARED ACCESS: Allows COPs and other external organisations like charities to integrate into the NOMS community
WHITE
Desirable
Enablers
RAG Status
8
C-NOMIS ExISSr1b LIBRA NSPIS SeM VISOR XHIBIT portal C-NOMIS LIBRA NSPIS OASys SeM
Effectiveness Opportunity
LIBRA/ ExISSr1b/ NSPIS, XHIBIT portal and SeM: provides earlier access to electronic court results (including bail decision and conditions), enabling faster more accurate PNC updates NSPIS, VISOR, LIBRA, C-NOMIS, and SeM: provides access to bail information therefore facilitates more informed bail decisions
AMBER
Minimal
CJIT CEIc12
Effectiveness Opportunity
Realisation RampOther: Up %
Strategic Alignment Benefit Assumptions: Business Action Environmental: Description: Source: Benefit ID No Benefit Owner: Other Projects: Benefit Measures/ Indicators: Benefit Category: Benefit Dependencies: Detailed Description: Technology: Business process: Training: Benefit Assumptions: 2005-06 Planned Monetary Value Other: Key business change required: Management Summary Enablers Impact % Benefit Assumptions: Business Action Key Actions: Realisation Ramp Up % Mitigating actions to ensure Description: Strategic Alignment benefits realisation (to be Benefit completed if RAG status isMeasures/ Indicators: Environmental: red): Business process: Benefit Assumptions: Other Projects: Key business change required: Benefit Dependencies: Enablers Technology: Due Date: Owner: Key Actions: Other: Mitigating actions to ensure benefits realisation (to be Benefit Assumptions: completed if RAG status is red): Description: Business Action Benefit Measures/ Indicators: Business process: Training: Resourcing:
7 SeM OASys NSPIS NOMIS
OASys: prevents multiple assessments therefore assisting end to end offender management C-NOMIS and SeM: enables connectivity to external agencies - authorised agencies (e.g. drug treatment providers) facilitating better information sharing OASys and C-NOMIS: provides information about interventions/ measures and monitors outcomes so facilitating more effective use of interventions C-NOMIS: provides access to full offender history facilitating more informed sentence planning and improved interventions targeting NSPIS, C-NOMIS, OASys: identifies priority and other prolific offenders and tailors evaluation appropriately LIBRA: provides 3rd party access to court information
AMBER
Desirable
Frequency: Source Project: Date Profile Agreed: Resourcing: 2006-07 Planned Actual
Benefit realisation behind plan Difficulties with benefits measurement/evidence means realisation is uncertain Benefit realised ahead or in line with plan Benefits not included in BRP total as not confident in forecast. realisation to be confirmed Benefits not yet due for realisation
Value to Strand Board targets In the context of all Strand Board iniiatives set to achieve SR04 targtes, how valuable is this benefit considered to be? 1. Mission Critical, 2. Highly Desirable, 3. Desirable, 4. Minimal, 5. Not Known
(1) Source: CJO Benefits Realisation Plans Q1 06/07 (BRP) (2) Source: CJIT Combined Effectiveness Impact (CEI) Model vA1.0 July 05 (3) Source: Appropriate programme/ project business case (4) Note: Number refers to the benefits unique reference number allocated to programme benefits (and assigned in the 1 pagers and BRPs) (5) Subject to change request - see change control worksheet
Actual
RAG Status
Owner: Frequency:
Action
Training:
Resourcing:
Action
(1) (2) (1) (1) Benefit Benefit Benefit Description Source Key Measures/Indicators of Benefit (1) (2) (4) (2) Owner Category (1) Casework Enabled by ETMP/CPT BRP: CPS - Efficiency Steve IT will support will reduce manual resulting in time savings in CPS for 13 opportunity Przybylski/ process times for some case case progression processes progression activities. Chris YULE
Source:
Frequency:
3 OASys
Efficiency Creation of the central O-D+C5EAT BRP: database enables the provision of NOMS - 5 Opportunit y aggregate offender data across NOMS. CEI CONSEQUENCE 10 BRP: Effectivene Reduce incidents of offender self NOMS - 19 ss harm and harm to others Opportunit y
John Powls (on behalf of Christine Knott) John Powls (on behalf of Christine Knott)
Key Actions: Mitigating actions to ensure benefits realisation (to be completed if RAG status is red): Action
Due Date:
Owner:
8 SeM OASys NSPIS LIBRA NOMIS
CJIT CEI
Effectivene ss Opportunit y
(2) (3) Current RAG Status (1) Benefit realisation(2) ETMP/CPT: reduces the time taken by CPS for the following case progression processes in the crown court behind plan 1) Pre-PDH 2) Post-PDH 3) Check compliance with directions 4) Check readiness for Trial and 5) Applications together with some fax, phone, post savings. ETMP/CPT: reduces the time taken by CPS for the i th i t Benefit realised OASys: 2005/6 indicators: O-DEAT database to f ll i enables HMPS iand NPS to adopt common t ahead or in line with techniques and exchange offender assessment have at least 800,000 completed offender assessment records; 624 O- information efficiently and effectively so that offenders are plan better managed across service boundaries, i.e. when they DEAT reports. SIDs and self harm volumes Safe OASys: ensures that offenders are assessed consistently NOMS - GREEN Benefit realised Custody Group and thoroughly and that risk assessments are regularly ahead or in line with reviewed plan OASys and SeM: facilitates the exchange of assessment CJIT Difficulties with information benefits OASys: provides prompts for risk of harm screening measurement/evide NOMIS: facilitates improved offender information nce means idi i l d th NPS d HMPS Reconviction rates OASys: prevents multiple assessments therefore assisting CJIT Difficulties with
Hypotheses
end to end offender management NOMIS and SeM: enables connectivity to external agencies - authorised agencies (e.g. drug treatment providers) facilitating better information sharing OASys and NOMIS: provides information about i t ti / d it t
Benefits Profiles
Benefit realisation behind plan Difficulties with benefits measurement/evidence means realisation is uncertain Benefit realised ahead or in line with plan Benefits not yet due for realisation
(1) Source: CJA Benefits Realisation Plans Q1 05/06 (BRP) (2) Source: CJIT Combined Effectiveness Impact (CEI) Model vA1.0 July 05 (3) Source: Appropriate business case (4) Note: Number refers to the row in the named BRP
97
Overview
Social Value
Political Value
98
Overview
Social Value
Political Value
99
Overview
Social Value
Political Value
RISK
Overview
Social Value
Political Value
VALUE FACTOR
PRIORITY 24 10 15 21 30 100
Direct User (Customer) Value Government Operational Value Government Financial Value Social Value Strategic / Political Value Total
101
Overview
Social Value
Political Value
Australias Demand & Value Assessment Methodology (DVAM) Traditional ROI investment measures do not fully account for the value from e-Government. Many benefits are nonfinancial and intangible.
Source: Presentation by John Rimmer, CEO to CISCO Public Services Summit, Measuring the Impact and Benefits of E-government, Stockholm
Determining the benefit/cost ratio for e-Government is not straightforward, as the outcomes and benefits are not just financial. A particular problem for agencies is in identifying and measuring social value.
Source: NOIE E-Government Benefits Study
102
Overview
Social Value
Political Value
Overview
Social Value
Political Value
it is broad in coverage and simple enough to be viable for both business case development and project portfolio management [and] the monitoring of benefit realization over time.
Source: Gartner, Australian Measure of the Public Value of IT is a Good Start
104
Overview
Social Value
Political Value
traditional ROI investment measures do not fully account for the value from e Government, since many of its benefits are nonfinancial and qualitative/intangible and contribute to a greater social value than can be measured using only financial and quantifiable indicators.
Source: Measurement Framework for third workshop of the e GEP
Programme Value is therefore seen as encompassing financial, organisational, social and political value..
Managing the Portfolio, Realising the Benefits
105
Overview
Social Value
Political Value
106
Overview
Social Value
Political Value
So
Value Management Role 2
All these methodologies reach similar conclusions to the research by Mark Moore in the US that identifies 3 sources of Public Value: Outcomes (Effectiveness) Services (Efficiency) and Public trust/legitimacy (Political & Social Value) Assessing public value will help organizations understand how IT initiatives contribute to improved business process performance and organizational efficiency, and still assess the equally important, if less direct, effects of new processes on society and the economy.
Source: Gartner, Value for Money is not enough in Public Sector IT Projects
107
Overview
Social Value
Political Value
Wider social and environmental costs and benefits for which there is no market price also need to be brought into any assessment. They will often be more difficult to assess but are often important and should not be ignored simply because they cannot easily be costed and, In principle, appraisals should take account of all benefits to the UKthe wider effects on other areas of the economy should also be considered.
Source: HM Treasury, The Green Book
108
Overview
Social Value
Political Value
But
Value Management Role 2 We are faced with 3 immediate issues: 1. How to measure such wider Social and Political Value? 2. How to assess this value in economic terms as required by the Green Book? 3. How to ensure any measurement is robust?
109
Overview
Social Value
Political Value
110
Overview
Social Value
Political Value
Overview
Social Value
Political Value
Combining the EUs e-GEP model & RCM to assess Social Value
Tangible financial gains EFFICIENCY: Better functioning PA Program Financial Value
More efficient operations Better empowered PS employees Reduced adm. burden costs
Increased user value & satisfaction Increased access to opportunities Transparency and accountability
Social Value Pyramid Time Savings/ Performance Impact Prevented Victimisation Degree of Confidence in Benefits Realisation
Public Protection
112
Overview
Social Value
Political Value
113
Overview
Social Value
Political Value
114
Overview
Social Value
Political Value
115
Overview
Social Value
Political Value
116
Overview
Social Value
Political Value
This leads to a first past the winning post bears all the costs syndrome.
117
Overview
Social Value
Political Value
Infrastructure investments can be treated as a tax on the business Infrastructure investments can be treated as exempt from the normal investment appraisal criteria but is this enough?
118
Overview
Social Value
Political Value
Organizations taking an enterprise-wide approach to e-Government will be able to demonstrate the foundation value of an investment by calculating how the infrastructure, skills and processes being put in place will be leveraged by other services and by increasing levels of demand.
Source: Booz Allen Hamilton, Building a Methodology for Measuring the Value of E-Services
119
Overview
Social Value
Political Value
is e it inc pect s ns tic, ex alis le to licatio re ab not son e app d rea of th rocee e op t som
l rea the n the ce ee sin w ic, e bet es t alis ill li trem re w x ue wo e t val
No. of opportunities
We can develop a methodology that takes into consideration some of this potential opportunity value and provides a mechanism for managing the realisation of this value on an active basis.
120
Overview
Social Value
Political Value
The approach developed by CJIT combines elements of options 1 and 3. It balances the need for simplicity with the need for rigour, to provide a practical approach for capturing and managing value.
121
Overview
Social Value
Political Value
Overview
Social Value
Political Value
1
Identify opportunities for the infrastructure to support Value the opportunities
3
Value the pipeline as a whole Constraints/ Synergies Adjustment Approval by Project Leads
5
Manage the Pipeline Value Opportunity Conversion Benefit Conversion Business as usual
123
Overview
Social Value
Political Value
Step 1: Identify opportunities for the infrastructure to support - the Pipeline of Opportunities
IIden dentt iiffy y
Project X Project K Project O Project Z Project Y Project L
Qua lify
Project H Project M
Inve
An opportunity will come from business and IT programmes that have IT requirements that could be supported by the infrastructure programme
stig ate Com m it
Project F Project A
Live Projects
Project D Project C Project E
Project N
Project Q
Opportunity domain
Cross department Cross CJS Intra CJO
124
Overview
Social Value
Political Value
Probability Probability of the Opportunity happening Probability of the Opportunity happening in the next 3 Probability years Adjusted
125
Overview
Social Value
Political Value
x
0% 100% 0% 1 Weight 10% 10% 15%
or if less
=
0% 100% Comments 0% ####
Key Factors
Strategic Contribution Legislative Requirement Funding Status Stakeholder Commitment Relative Attractiveness Relative Achievability
Factors derived from: - The OGCs top 10 causes of project failure - Cranfield University research
1 2 3
Is the project a legislative requirement or ministerial imperative? W hat is the scale of strategic contribution to the 7 Strategic Drivers? Is the project likely to receive funding? W hat proportion of the benefits have been agreed in principle with efficiency planners as viable for inclusion in departmental efficiency plans (or at least have benefit recipients identified)? Are the benefits from the project dependent on other projects? Is the project sponsor (SRO) perceived within the organisation as fully effective and committed to the project? Is there evidence of stakeholder commitment? Has the project undergone governance reviews and been approved? Does the project have a fixed start date?
4%
5 6 7 8 9
0 0 0 0 0 0 0 0 0 0 0 0
10 W hen is the project implementation due to complete? 11 Is the project resourced correctly to deliver the benefits? 12 Does the project have a business case? 13 W hat is the degree of technical innovation? 14 How risky (business, technical, ) is the project perceived? Are the boundaries between the project and Exchange 15 defined and agreed? Is the supplier (or the market if no supplier chosen) capable 16 of delivering the project? Total Likelihood of Exchange supporting the project Questions Should the project use Exchange? W hat is the level of Exchange fit to business and technical requirements? 18 Does the project accept the Exchange solution? Have all reasonable alternatives to the Exchange solution 19 been considered? 17 20 How significant is the competition? 21 Does the Exchange solution look cost effective? Total Should Exchange support the project? How much is the project aligned with the Exchange 22 Strategic Architecture? Does this project enable services which can be re-used later 23 by other projects? 24 Can we manage the business and technical risks? Total Potential Answers
Value
Show stopper
Weight
Comments
0 0 0 0 0
0 0 0
126
Overview
Social Value
Political Value
Overview
Social Value
Political Value
Once the opportunity valuation has been completed, the outcome will need to be validated and agreed with project leads When projects are approved the benefits are agreed with the Benefit Realisation Leads and departmental efficiency planners
128
Overview
Social Value
Political Value
Overview
Social Value
Political Value
Conclusions
Conclusions
131
value management office/outcome management office makes business cases more robust by challenging benefits claims and helps to avoid double claiming of benefits
Conclusions
Source: Summary from OECD Expert Seminar on Cost and Benefit Analysis of E-Government
132
1. Significant increases in Benefits Forecasts and Realisation 2. Focus on value throughout the project life-cycle 3. Improved alignment between IT and business priorities 4. More cost-effective allocation of funds 5. Improved accountability for performance 6. Increased stakeholder confidence 7. Transparent reporting provides a Clear line of sight and one version of the truth from strategic intent through to benefits realisation.
Conclusions
133
Conclusions
3. Optimism bias is a reality benefits tend to be OVERSTATED and are often little more than unsubstantiated assumptions masquerading as facts. ALL claims must be robustly scrutinised 4. Benefits need to be validated by agreeing them with the recipients and those who will be responsible for realising them 5. Book the benefits early by adjusting budgets, reducing target unit costs, including them in headcount reductions, or by reflecting them in the organisations and individuals performance targets
134
Conclusions
135
Summary documentation providing a clear line of sight from strategic intent through to benefits realisation
Contributor Project Benefits Report
CJS IT BENEFITS PROGRESS REPORT - QUARTER 4 2004-05 FOR CJS EXCHANGE XHIBIT PORTAL 10 Year Analysis Recipient Self Assessment Q3 Assessment Quality of Benefits Forecast Scale of Benefits Forecast Quality of Realisation Planning Likelihood of Realisation Q3 Forecast for Q4 Q4 Assessment Q4 forecast for Q1 Crown Courts Other CJOs Cross CJS Outside CJS Total Efficiency Cashable 12.700 0.000 0.000 0.000 12.700 M Effectiveness Cashable 0.000 0.000 0.000 0.000 0.000 m 0.01 NPV m* 4.1 IRR % -4.09 94.2 *NPV discounted at 3.5% 0.0% Opportunity 25.920 52.760 173.710 694.860 947.250 0.000 0.000 0.000 0.000 0.000 Last report 154.301 Cost Avoidance 74.240 170.580 173.710 694.860 1113.390 Now 3-04 200 4-05 200 5-06 200 6-07 200 7-08 200 8-09 200 9-10 200 0-11 201 1-12 201 2-13 201
Benefits Scorecard
CJS IT BENEFITS SCORECARD June 2006
Cumulative Cost and Benefit Forecast 2003-2013 Total % 6.7% 15.3% 15.6% 62.4% 100.0%
'm 1,200 1,000 800 600 400 200 Cumulative B enefits
This table shows the full CJS IT Programme benefits picture, including ring fence benefits and benefits enabled by the ring fence infrastructure (m)
Forecast Benefit Values CJS IT Projects SR2004 CSR07 10 Year Total
Quality of Benefit Forecast
AMBER GREEN GREEN GREEN GREEN GREEN GREEN GREEN GREEN GREEN AMBER AMBER GREEN
Strand Board Alignment1 Confidence Victims and Witnesses OBTJ Enforcement Re-offending
Likelihood of Realisation
AMBER AMBER AMBER AMBER GREEN AMBER GREEN GREEN GREEN AMBER AMBER AMBER GREEN
2006/07
2007/08
Benefits Realised this financial year Monetary Value of Benefits Realised YTD Forecast in latest published Delivery Plan YTD Variance
Application s
NSPIS Custody & Case Prep PentiP COMPASS CMS (50%) NWNJ IT tool (WMS) SOCA Libra application (includes benefits jointly delivered with 3a) OASys NOMIS (70%) ViSOR CJSE Release 1a (NSPIS-CMS) CJSE Release 1b (NSPIS - Libra) XHIBIT/CJSE Release 2a&b (XHIBIT Portal) PROGRESS Secure Email/Emailing Securely CJSE Release 3a CJSE Release 3b COMPASS infrastructure (50%) Libra enabled NOMIS infrastructure (30%) OMNI infrastructure OMNI cost effectiveness LINK enabled Shared Access Equip direct Equip enabled CEI Economic/Social Value Benefits
TOTAL BENEFITS
79.08 10.95 5.70 0.61 18.15 79.52 5.06 0.93 1.63 0.87 9.29 1.88 1.49 0.00 1.10 85.95 30.17 2.17 1.03 8.68 5.85 16.50 41.41 9.78 15.61 433.41
199.82 5.08 20.79 9.66 1.21 81.70 93.18 50.00 2.21 9.76 19.08 7.11 12.02 1.90 0.01 2.13 95.79 34.26 21.43 3.11 9.36 11.79 7.80 16.50 149.10 21.43 113.53 999.74 1274.65 250.18 12.90%
348.06 14.06 52.74 25.02 3.43 154.31 239.12 162.33 6.08 17.88 37.29 21.15 26.04
Forecast
D=2 M=1
HD=1 NK=1
4.95 2.69 0.26 0.24 5.21 2.93 CPS Benefits Realisation Plan
Q1 03/04 - Q4 05/06 Realised 2006/07 Q1 Plan Actual
Year
2006/07
2007/08
Forecast
Efficiency Cashable Efficiency Opportunity Effectiveness M=1 M=4 D=1 HD=1 D=2 D=2 Efficiency Cashable Efficiency Opportunity Effectiveness Total M=1 Total
Project Life Cycle Benefits Profile (Top 5-10 benefits over 10 years) Impact Benefit Description
Performance M
31.40 0.13
8.88 0.39
Benefit Category
Main Recipient
Realisation Ramp Up
173.71 Effectiveness opportunity PSA Targets 1 and 3 694.86 Effectiveness opportunity PSA Targets 2, 3 and 5 4.06 Effectiveness opportunity PSA Targets 1, 2, 3 and 5 31.78 Effectiveness opportunity PSA Targets 2, 3 and 5
CJS
To start 6 months after completion in a CJ Area Time from CC result to PNC update
UK economy
Infrastructure
Benefit not yet due for realisation Benefit ahead of or in line with plan
Percentage of ineffective hearings
4.78 AMBER RED 0.02 AMBER 6.07 GREEN 252.74 see COMPASS CMS 95.54 see LIBRA application 69.57 see NOMIS application 6.48 36.37 28.49 24.05 55.00 311.00 45.54 291.21 2,334.36
2006/07
2007/08
Forecast
2.59 2.59
Crown Court
Forecast
Prog
From 6 months after Go-live at each court centre Number of disposals From 3 months after Go-live at each court centre Backlog count Number of disposals
Benefit not yet due for realisation Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan Benefit ahead of or in line with plan
Conclusions
Crown Court
NOTE: Benefits shown only include quantified, validated 1. Based on BRP submissions & agreed with Strand Board leads, this shows the number of benefits to the benefits but other enabled benefits have been identified Strands in terms of value (ie. mission critical, highly desirable etc) and will be included as further work is undertaken
KEY MC = Mission Critical, HD = Highly Desirable, D = Desirable, M = Minimal, NK = Not Known
Total 10 year CJS IT Application benefits Ring Fence only CJS IT Application NPV Ring Fence only CJS IT Application IRR Ring Fence only
Benefits to the CJS and Society
x-CJS, 9%
Crown Court
From 1 month after Go-live at each court centre Number of enquiries made to CC No of daily lists faxed/time taken.
2003/04
2003-05
2003-06
2003-07
2003-08
Benefits as % of Cost
Efficiency Cashable Efficiency Opportunity Effectiveness Total
Realised
Forecast
7 CPS Benefits
CPS
3 months after go live in a CJ Area No of enquiries made to CC No of daily/warned lists sent and time taken No of bail forms sent and time taken
8 Police Benefits
Police
10 PSA Target 5 9 NOMS Benefits 36.9 Effectiveness opportunity PSA Targets 2, 3 and 5 10 Reduction in solicitor waiting 12.7 Efficiency cashable Crown Court From 1 month after Go-live at each court centre NOMS Following rollout to all prisons in a CJA Reduced waiting time claim values
Benefit not yet due for realisation Benefit not yet due for realisation
1
57.09 90.37 142.59 183.78 202.01 Total Police RF Cost/Budget Direct Benefits 0.53 1.63 5.21 32.69 85.10 Enabled Benefits Total Police Benefits 0.53 1.63 5.21 32.69 85.10 42% 111.21 194.71 269.22 408.09 519.61 Total Corrections RF Cost/Budget 5.50 15.38 39.29 83.26 129.20 Direct Benefits 8.55 10.12 19.22 49.96 Enabled Benefits 5.50 23.93 49.40 102.47 179.16 34% Total Corrections Benefits Total CPS RF Cost/Budget 25.05 58.82 97.87 132.70 170.63 2.05 31.53 68.59 110.46 Direct & Enabled Benefits 2.05 31.53 68.59 110.46 65% Total CPS Benefits Total HMCS RF Cost/Budget 154.55 283.61 426.40 512.40 585.28 0.30 2.59 8.50 32.07 Direct Benefits Enabled Benefits 3.23 8.43 18.80 32.10 47.28 Total HMCS Benefits 3.23 8.73 21.39 40.60 79.35 14% 3 Ring Fence costs from 2003-06 and Delivery Plan RF budget from 2006-08. Full benefits by recipient used. Corrections includes YJB.
0.11 0.11
0.05 0.05
0.21 0.21
0.37 0.37
RAG of Benefits in SR2004 Benefits Realisation Plans Q3 05/06 Q4 05/06 No. % No. Benefits Rating 6 6% 2 Benefit behind schedule 26 27% 35 Difficulty with tracking/measure. 13 13% 19 Benefit on track/ahead of schedule 52 54% 41 Benefit not yet due for realisation Benefits By Type
Efficiency Cashable 9%
Effectiveness 30%
Home CJO
x-CJS
Social Value
RAG
1. Settlement Letter Conditions/Hurdle rates infrastructure
Approved by SRO:
2 3 1. Quarterly Benefits Integrity Check 2. Benefits Eligibility Framework 1. Process Modelling 2. CJO Benefit Realisation Plans approved by OB and BWG 3. Project Benefit Realisation Plans approved by BWG
Portfolio Analysis
Yes No
RECIPIENT
EFFICIENCY CASHABLE
EFFICIENCY EFFECTIVENESS EFFECTIVENESS OPPORTUNITY CASHABLE OPPORTUNITY VALUE VALUE PROVING SERVICES ACHIEVABILITY SCORE BREAKDOWN
CONCEPT CASE (COMPLETE AS APPROPRIATE)
CJO: Police CJO: CPS CJO: DCA CJO: NOMS CJO: YJB CROSS CJS: BEYOND THE CJS(SPECIFY): TOTALS:
Score (1) TOTAL PROJECT COSTS StakeholderEAR Y Analysis (Achievability) CAPITAL RESOURCE TOTAL (M) (M) (M) Indication Achievability Complexity Analysis Achievability Total
TOTAL
INCLUDED IN BRP
POLICE BENEFITS REALISATION LEAD(BRL) BENEFITS INCLUDED IN THE CPS BRP OR AGREED IN PRINCIPLE BY THE CPS BRL BENEFITS INCLUDED IN THE DCA BRP OR AGREED IN PRINCIPLE BY THE DCA BRL BENEFITS INCLUDED IN THE NOMS BRP OR AGREED IN PRINCIPLE BY THE NOMS BRL BENEFITS INCLUDED IN THE YJB BRP OR AGREED IN PRINCIPLE BY THE YJB BRL
Score ACTIONS & TIMESCALES TO ESOURCE/CAPITAL CURRENTLY ALLOCATED FROM (2) R ENSURE BENEFITS ARE INCLUDED IN RComplexity Analysis ENEFITS THE BING FENCE REALISATION PLAN YEAR R Capability CAPITAL TOTAL Processes & ESOURCE (M) (M) (M) Ownership & Accountability Clarity & Perception Benefits Realisation Management TOTAL Stakeholders Analysis Achievability Total
RESOURCE/CAPITAL GAP (1-(2+3))
(3) OTHER FUNDING SOURCES RESOURCE (M) CAPITAL (M) TOTAL (M)
YEAR RESOURCE CAPITAL ASSESSMENT OF DEGREE OF BUSINESS CHANGE REQUIRED TO REALISE BENEFITS M) (M) ( RECIPIENT BRL ASSESSMENT COMMENTS
MEDIUM HIGH LOW N/A
TOTAL (M)
TOTAL
SAVINGS RECYCLED?
TOTAL
136
Conclusions
the entire process from business case to portfolio management to the appraisal of benefit realization has been defined and is actively being pursued.
Source: Gartner, Governments Make Progress in Demonstrating Public Value of IT
137
References
Booz Allen Hamilton, Building a Methodology for Measuring the Value of E-Services Booz Allen Hamilton, International e-Gov Benchmarking Study, 2005 Cabinet Office, Report to the OECD on the UK Approach to Benefits Realisation, 2006 Cabinet Office, Successful IT: Modernising Government in Action CISCO Report on behalf of the New York Housing Authority to the US NECCC, 2005 Cooper B & Edgett S, Ten ways to make better project portfolio and project selection decisions E GEP, Measurement Framework for third workshop, 30.1.06 Gartner, Australian Measure of the Public Value of IT is a Good Start, 24.3.2005 Gartner, Building Brilliant Business Cases, January 2004 Gartner, Get Real: The Future of IT infrastructure, December 2004 Gartner, Governments Make Progress in Demonstrating Public Value of IT, 15.11.2005 Gartner, How to Demonstrate the Elusive Value of IT Infrastructure in Government, 2 May 2006 Gartner, How to Optimize IT Investment Decisions, 21st July 2006 Gartner, Setting Accurate IT Investment Levels Demands an Appropriate Framework, 12th July 2006 Gartner, Show Me the Money: Advanced Practices in Benefits Realisation, December 2005 Gartner, U.K. Criminal Justice System Makes Portfolio Management Key to IT Success, 2005 Gartner, Value for Money is not enough in Public Sector IT Projects, 25 June 2003 Grindley K, Managing IT at Board Level HM Treasury, The Green Book Appraisal and Evaluation in Central Government
References
138
References
KPMG, Global IT Project Management Survey, 2005 Management Today, 2001 Marchand D.A., Extracting the business value of IT: It is usage, not just deployment that counts! Mornan B, Benefits Realisation: Government of Canada Experience. Presentation to the OECD, Paris 6th February 2006 NOIE E-Government Benefits Study, 2003 OECD Expert Seminar on Cost and Benefit Analysis of E-Government, Paris, 6th February 2006 Office for Government Commerce, Gateway News, December 2003 Office for Government Commerce, Managing Successful Programmes (MSP) Office for Government Commerce, Portfolio Management, May 2004 Office for Government Commerce, Successful Delivery Toolkit, 2005 Public Accounts Committee of the House of Commons, Improving the Delivery of Government IT Projects, 1999 Rimmer J, presentation to CISCO Public Services Summit, Measuring the Impact and Benefits of Egovernment, Stockholm, 9th December 2003 Solow R quoted in The Information Paradox, J Thorp, 2003 Thorp J, The Information Paradox, 2003 Wentworth Research, Benefits RealisationMany Happy Returns, 1998
References
139
Contact Details
Contact: Stephen Jenner Director, Criminal Justice Information Technology Stephen.Jenner@cjit.gsi.gov.uk (+44) 20 7035 8123
140