NSW Government ICT Governance Framework for Whole of Government Investments November 2014
CONTENTS 1. Introduction 1 2. Scope and application 2 3. Purpose 2 4. Outcomes 2 5. Governance framework 3 6. Governance structure for whole of government ICT investments 4 7. Roles and responsibilities 6 8. Document control 7
1. INTRODUCTION The NSW Government ICT Strategy sets out a clear focus on using ICT for better service delivery, and achieving better value for public sector ICT investment. The NSW Government ICT Investment Policy and Guidelines outlines a whole of government approach to support coordinated and collaborative investments in order to fully capitalise on opportunities arising from a changing ICT environment. The NSW Government s approach to ICT investment benefits from governance arrangements that ensure senior government decision makers share responsibility for major ICT decisions and whole of government strategic direction. Figure 1 shows the NSW Government ICT governance structure: Figure 1. NSW Government ICT governance structure The ICT Board comprises all nine cluster Secretaries, and the ICT Leadership Group comprises Chief Information Officers and business leaders from across government. Portfolio governance of the ICT Board The ICT Board has six key ICT portfolio governance responsibilities: 1. Guide ICT investment proposals (or ICT aspects of business cases) to support the better value and better services transformation outlined in the NSW Government ICT Strategy 2. Maintain a set of ICT investment principles that will ensure all ICT investment proposals are aligned to the Government s priorities for ICT investment, to apply from the 2015-16 budget 3. Identify and establish the merits of potential whole of government platforms, systems or enablers that are required to support the transformation in ICT, including dealing with any policy or other barriers to better value or services 4. Advise the Cabinet Standing Committee on Expenditure Review (ERC) on priorities for better value investment in ICT and alignment of ICT investment proposals to the Government s ICT Strategy 5. Monitor progress and benefits realisation of significant, critical or strategic projects 6. Ensure that approaches to project management and benefits realisation support cost effective investment in ICT. 1
2. SCOPE AND APPLICATION This governance framework applies to NSW whole of government ICT investments. A whole of government investment is an investment in a solution used by multiple agencies across multiple clusters. It is managed and delivered by a lead agency as directed by the ICT Board. Whole of government ICT investments are different from agency-specific investments in that they depend on multiple agencies to deliver the benefits, and require these agencies input to ensure the investments meet business needs and are achievable. This framework covers the end-to-end project lifecycle of whole of government ICT investments. 3. PURPOSE The purpose of this framework is to ensure that the benefits of whole of government ICT investments are realised, that they contribute positively to the overall performance of the NSW Government, and that the ICT Board is informed about associated risks throughout the project life cycle. 4. OUTCOMES The expected outcomes of this governance framework are: demonstrated sound stewardship of project funds transparency and accountability for project outcomes delivering value for money for whole of government ICT investments whole of government ICT investments deliver the intended service delivery and business benefits. 2
5. GOVERNANCE FRAMEWORK Figure 2, adapted from AS/NZS 8016:2013, illustrates the NSW Government ICT governance framework for the management and monitoring of whole of government projects. Figure 2. Governance framework for whole of government ICT investments Governance principles for whole of government ICT investments NSW Government ICT governance arrangements for whole of government ICT investments will demonstrate the application of the following principles for good governance drawn from AS/NZS 8016:2013: 1. Responsibility: appropriate governance structure is in place that provides clear roles and responsibilities, including ownership and accountability for important decisions and tasks. 2. Strategy: whole of government ICT investments deliver value in support of the NSW Government s strategic objectives, to satisfy current and future needs of the government. 3. Acquisition: whole of government investment decisions are made as part of a wider business change program and involve all elements of change to ensure a successful outcome, including technology, organisational change, business processes and training. 4. Performance: performance goals are clearly defined and effective performance metrics are established to monitor achievement of goals. 5. Conformance: obligations are identified, planned for and addressed during changes to business processes, structure and responsibilities, as well as during changes to the supporting whole of government ICT systems and infrastructure. 6. Human Behaviour: whole of government projects demonstrate respect for human behaviour in the planning and management of activities, including the changes in business processes. Under the NSW Government ICT Investment Policy and Guidelines ICT investments are aligned to the objectives of the NSW Government ICT Strategy. Risks are managed pro-actively throughout the project lifecycle. Project leads are accountable through clearly defined roles and responsibilities, performance measurements and escalation mechanisms to resolve issues. 3
6. GOVERNANCE STRUCTURE FOR WHOLE OF GOVERNMENT ICT INVESTMENTS Figure 4 shows the governance structure for whole of government ICT investments. Figure 4. Governance structure for whole of government ICT investments The two primary reporting requirements are: Project status updates. Project status reports are to be submitted every two months and at the end of each stage. The steering committee is expected to be actively involved in monitoring the project and required to sign off on project status reports before submission to the ISSI Working Group. Post-implementation review report. A post-implementation review report is required to be submitted within three months of the completion of the project. Post-implementation reviews foster a culture of continuous improvement and best practices across government by capturing project knowledge in a central repository and making it available for future projects and decisionmaking. ICT Governance The ICT Board will provide strategic ICT investment advice to ERC, alongside The Treasury s financial and related assessment of proposals, to transform government s ICT portfolio by: ensuring the application of the ICT investment principles within business cases progressing opportunities for consolidation, collaboration and reuse that provide whole of government or multi cluster benefits informing future priorities and ICT strategic direction ensuring better value for money. The ICT Leadership Group is responsible for managing the ICT Governance Framework for whole of government projects, including advising the ICT Board on opportunities for collaboration across government. The ICT Infrastructure, Services and Strategic Investment (ISSI) Working Group reviews the status of whole of government projects and provides recommendations for consideration by the ICT Leadership Group. 4
Project steering committee The lead agency for a whole of government project will establish a project steering committee to govern the project, and provide bi-monthly reports to the ISSI Working Group. The project steering committee will: be chaired by a senior representative of the lead agency include: - representatives from OFS and The Treasury - an additional representative from the lead agency - representatives from across government, from at least two other user agencies. 5
7. ROLES AND RESPONSIBILITIES The following table sets out roles and responsibilities in the governance of whole of government ICT investments. ICT Board Make recommendations to the ERC on whole of government projects Provide strategic ICT direction Portfolio governance of major ICT projects ICT Leadership Group Provide a whole of government view of ICT and facilitate collaboration across government Make recommendations to the ICT Board on: - the readiness of strategic and critical projects for funding consideration - risk mitigation plans for projects ISSI Working Group Provide advice to the Project Steering Committee on funding considerations, risk management, and project governance Provide advice to the ICT Board and ICT Leadership Group on alignment with ICT investment principles OFS Support the decision-making function of the ICT Board and ICT Leadership Group Project Steering Committee Ensure that the solution is aligned with strategic objectives and delivered within the agreed budget and timeframe Ensure that all elements of change required to obtain value from the whole of government investment are planned for and delivered Report to the ISSI working group bi-monthly on the implementation of projects, with particular emphasis on quality, risk management, benefits realisation and change management Lead agency Responsible for end-to-end delivery and management of the project, including transition into the business and embedding the change Drive the process for post-implementation review and benefits realisation, and tracking and recording benefits as they are realised Establish and chair a project Steering Committee 6
8. DOCUMENT CONTROL Document history Date Version Description Author November 2014 1.0 Approved Office of Finance and Services Contact: Ray Evans, Director, Strategic Policy, Office of Finance and Services Email: ray.evans@finance.nsw.gov.au Telephone: (02) 9372 8760 7