Building IT Shared Services
by Paul Hession
Just what is IQTT, how did we get here and what lessons have we learned along the way?
Building a shared service organization is a challenge. IQTT is a tool, a concept that has been used as a staged approach when dealing with corporate mergers and acquisitions. But this is one of its first applications to government. It is a way to transform – to understand what you need to do and the steps to get there. We adapted the model to our environment, aligning our organizations while ensuring business continuity and that business practices would be in synch – there would be no disruption to client services.
We recognized that moving multi-departments to an IT shared services environment required teamwork – all parties had to feel comfortable with the long-term vision, and how they were going to get there. Above all, they needed to believe that the IT shared services concept created value through efficiencies, improved services, and enhanced online access for Canadians that was consistent with privacy and security requirements. We stressed that IT shared services would allow organizations to focus on their core service delivery programs rather than IT infrastructure.
The process has four phases – Identification, Qualification, Transition and Transformation. IQTT carefully migrates appropriate departmental IT services to the shared services organization (IT-SSO).
Identification
In late 2005, ITSB, working with Treasury Board Secretariat, identified potential departments and organizations for participation in the pilot project, ‘Wave 1’ – PWGSC, Canada School of Public Service, Health Canada, Parks Canada, Privy Council Office, Transport Canada, and Veterans' Affairs.
Qualification
During Qualification, we learned together, documented the steps and refined the processes as we moved through uncharted territory. We wanted to develop a process we could test and then reconfirm as viable and transferable to subsequent ‘waves’.
We created an office to lead the initiative. We recruited talented leaders, with strong analytical skills, who were committed and passionate about working with partner organizations. It was a strong team, experienced in organizational development, with proven expertise in IT management and IQTT in the high tech industry. We blended government leaders, IT industry professionals and strategic advisors. They knew how government worked, as well as the people, business management, service delivery and service support side of IT.
We had a process-oriented champion, experienced in identifying and transitioning different entities and bringing them together to a common platform in a positive manner, while gaining consensus and agreement. We also had people with superior facilitation skills, capable of listening and responding to issues and concerns, helping diverse organizations identify their common goals.
Belief in the common goal
As we worked with our partners, especially the CIO community, we recognized that we were asking a lot. To succeed, we had to build trust, a belief in a common goal, and agreement on the process. They needed assurances that their staff would be treated equitably and provided opportunities within the new Shared Services Organization. To mange the process, we developed a governance structure, the Engagement Steering Committee, which included the IT leads in PWGSC and the partner CIOs. Our participating CIOs have demonstrated a ‘holistic’ approach and a community spirit – focusing on the greater IT community and the government as a whole. IT cannot be delivered in a silo.
Our mandate was clear: whatever happened, the ongoing business needs of the individual organization must be satisfied; there would be no compromise on daily operations while undergoing change.
Four streams were identified: People, Business Management, Service Delivery and Service Support. Leaders in these areas worked closely with all partners, as well as the subject matter experts and appropriate Client Relationship Managers within PWGSC. Workshops and regular one-on-one meetings were held. We consulted with the unions. We developed structures and processes, then evaluated and refined them. At each step, we learned from our experiences.
Creating opportunity
During the Qualification phase, ITSB needed to build the internal capacity to deliver on the shared services agenda. My team worked closely with all facets of ITSB management to help move the ITSB transformation agenda forward. With an open dialogue, the team shared our progress and ensured that the interests and issues held by the partners and the IT-SSO were addressed.
While we did not know what services would be transitioned or who would be moving and when, we knew that the IT Shared Service Organization would create new opportunities for employees and increase the potential for career advancement. With shared services, there would be a bigger pool of resources and we could create centres of expertise, providing employees with opportunities for career advancement and to learn new skills.
As we embrace new partners into the IT-SSO, this will create opportunities to realize efficiencies and create value. There will be greater vendor leverage through increased buying power and a larger pool of skilled resources able to focus on developing new capabilities. As an IT-SSO, we will have a greater influence on technology strategies and direction and there will be significant savings in capital investment with the consolidated acquisition of equipment, floor space and bandwidth, as well as significant savings in acquisition, deployment and support costs by having standard desktops and builds.
We know this will take time – we are doing something unique and we must ensure that we in PWGSC are prepared and have the infrastructure to make it happen.
Transition
As of September 2006, the first wave is in phase 3, Transition, engaging in project activities and implementing plans to transition the people, business process, and technology to the shared services model. These projects will help prepare the partner to move their IT services, assets and accountabilities to the IT-SSO. During Transition there will be no change in the existing processes or service delivery to the partner organization.
Transformation
Once the Transition Phase has been implemented and the services transitioned to the IT Shared Services Organization are complete, Transformation begins and true savings and service efficiencies can be realized.
Many of these transformational changes will be invisible to the client, such as reducing duplication, more efficient use of data centres and services, consolidating licensing agreements or more efficient use of server space. Our
partners will see improved efficiencies, better unit costs, improved quality in service and use standardized process.
Lessons Learned
IQTT is a work in progress. The long-term structure of the IT-SSO is still being developed. In our experiences through Qualification, the pilot project gave us a better understanding of client priorities and which services could be developed and presented across government as a shared service.
The process worked because of:
· Flexibility: making changes and adapting as we moved through the process
· Strong leadership: people were committed to the process and took ownership
· Building a level of trust, synergy, and cooperation
· Recognition that this was a step in a process, and that we still have work to do
· Clear goals with clearly defined roles, responsibilities and accountabilities
· Ongoing evaluation, and adapting the process to meet the client needs
· The IQTT governance structure and the use of extensive workshops provided leadership and a collaborative working environment.
We know that there are challenges ahead and the move to an IT-SSO will take time, but the level of trust and the spirit of cooperation developed during Wave 1 Qualification will help move us forward. We can now move forward with a solid base of experience and expertise.
BACKGROUND
Treasury Board Secretariat is responsible for the overall shared services approach, using common approaches and shared internal services wherever possible, so government acts as a single enterprise, rather than 116 separate departments, agencies, boards and Crown Corporations.
IT is a crucial enabler of the government’s commitment to deliver integrated, easily accessible services to Canadians, and efficient, effective internal administrative operations. Public Works and Government Services Canada (PWGSC) has the lead on the IT Shared Services Initiative and is mandated to provide or broker common services and systems. The Information Technology Services Branch (ITSB) led by Acting CEO, Steven Poole, has partnered with TBS and the government IT community to establish the IT Shared Services Organization (IT-SSO). Shared services will allow the ITSB to meet departments' business and program needs so departments can focus on their core business.
The ITSB's transformation agenda includes:
§ Growing IT shared services – building an IT shared services organization
§ Strengthening internal IM/IT – building PWGSC's CIO capacity
§ Supporting The Way Forward – PWGSC's departmental initiative to support modernizing government, finding innovative ways to deliver services smarter, faster and more efficiently.
The ITSB's multi-channel growth strategy includes:
§ Organic growth, improving the operational excellence of ITSB and maturing the organization as the department continues to meet the IT business needs of its clients
§ Growth of IT shared services where partner organizations go through an accelerated Identification, Qualification, Transition and Transformation process and move to the shared services model
§ Adoption when new IT products and services are identified and developed to meet clients' business needs, including license and software renewal, portfolio management and data centre consolidation.
§ Partnering and leveraging to develop and implement selected IT shared services through a joint project team or structure that can benefit government.
Alignment activities are built into the process.
Paul Hession, Director General, Service Qualification and Transition, leads Growth Channel #2, of the department’s IT Shared Services initiative. He works with client departments as they move to the IT shared services model and is responsible for due diligence, assessment, selection and readiness analysis, as well as the negotiation of service level agreements between the IT-SSO and client departments. For further information on the PWGSC's IT Shared Services initiative, contact IT.Services.TI@pwgsc.gc.ca.
Paul Hession is the Director General of Service Qualification and Transition, where he works with client departments as they move to the IT Shared Services model. A former engineer and commissioned officer with National Defence, he has served as CIO for both National Archives of Canada and Fisheries and Oceans Canada, as well as national executive of partnerships and alliances with Canada Health Infoway (Paul.Hession@pwgsc.gc.ca).
