Leveraging the Texas Project Delivery Framework and Quality

Leveraging the Texas Project Delivery Framework and Quality Assurance Team as Resources For Project Success Version 1. 0– June 18, 2013 http: //www. dir. texas. gov/management/projectdelivery/pages/overview. aspx

Topics Covered 4 Model for Project Delivery and Oversight 4 Components of the Model: Tools and Processes 4 Project Delivery Framework 4 Timeline for Framework Deliverable Submissions 4 Major Information Resource Project 4 Agency Project Management Practices 4 Quality Assurance Team (QAT) 4 Analysis of Project Overruns 4 Leveraging the Framework Tools and the QAT to Reduce Project Risks 2 State of Texas Department of Information Resources Leadership for Texas Government Technology

Model for Project Delivery and Oversight LEVELS QAT Project Portfolio QAT Framework Project Approval Project Review and Monitoring Business Justification Project Planning , Solicitation and Contracting, Project Implementation STANDARD PMI Model Initiation Plan Execute PROCESSES 3 State of Texas Department of Information Resources Leadership for Texas Government Technology Control Closeout Benefits Realization

What is the Project Delivery Framework? 4 Establishes a consistent, statewide method for project selection, control and evaluation aligned with business goals and objectives 4 Shifts focus from technology details to prioritized business goals and outcomes 4 Requires involvement of agency heads and other executive leaders 4 Ensures a process to 4 Justify a project, including alternative solutions 4 Plan a project 4 Outsource a project 4 Implement a project 4 Assess a project In a nutshell, the Framework is a…. -Guidance and a -Toolset For IR Projects and Contracts 4 State of Texas Department of Information Resources Leadership for Texas Government Technology

Use Framework Lifecycle with Various SDLC Methodologies 5 State of Texas Department of Information Resources Leadership for Texas Government Technology

Top Project Delivery Framework Misconceptions Based on statewide perspective and observation Misconception 6 Reality Framework is set in stone Statewide change management mechanisms exist Framework is the project management methodology Framework is a toolset Project deliverables are documents only Project deliverables represent activities and outcomes Framework or Quality Assurance Team dictates project management practices or outcomes Agency defines project management practices and outcomes Programs and projects are managed the same Whether to manage effort as program or project is a critical decision Agency involvement with procurement projects is minimal Agency drives business outcomes that involve procurement State of Texas Department of Information Resources Leadership for Texas Government Technology

TAC Chapter 216: Project Management (PM) Practices Agencies should: 4 Have project management practices that are documented, repeatable, and include a single reference source…to effectively apply use of the project management practices and components 4 Include a method for delivery of projects that solves business problems 4 Include a method for governing application of project management practices 4 Include a project classification method developed by DIR, the agency, or another source 4 Include a method to periodically review, assess, monitor, and measure the impact of the project management practices 4 Align PM practices with use of the Framework (agency can accommodate use of other frameworks) 7 State of Texas Department of Information Resources Leadership for Texas Government Technology

Quality Assurance Team (QAT) 4 QAT is comprised of three representatives-one from each of the following agencies: LBB, SAO, and DIR 4 QAT Functions: 4 Monitors risks and performs oversight activities associated with the development of major information resource projects (MIRPs) Risk: Likelihood that a project will not deliver a quality solution based on the timeline, budget, and scope commitments made to legislature when submitting the Legislative Appropriations Request (LAR) 4 Approves projects before expenditure of appropriated funds based on analysis of project risks 4 Reports the status of MIRPs to state leadership 4 Determining the frequency of monitoring (monthly or quarterly) 4 Performs approval of contract amendments if project costs exceed 10% or original total budget 4 QAT can request detailed project information, Framework deliverable updates, audits, or assistance as necessary 8 State of Texas Department of Information Resources Leadership for Texas Government Technology

Review Definition of a Major Project Major information resources project (MIRP) means (per TEX GOV’T CODE § 2054. 003 (10)): (A) any information resources technology project identified in a state agency's biennial operating plan whose development costs exceed $1 million and that: (i) requires one year or longer to reach operations status; (ii) involves more than one state agency; OR (iii) substantially alters work methods of state agency personnel or the delivery of services to clients; OR (B) any information resources technology project designated by the legislature in the General Appropriations Act as a major information resources project Note: 4 The $1 million threshold includes agency FTE costs. 4 Use of the Framework is encouraged for non-major IR projects 9 State of Texas Department of Information Resources Leadership for Texas Government Technology

Functions Outside of QAT 4 Contract review and solicitation review: Major contract reviews are performed by the Contract Advisory Team (CAT) 4 Project management: All agencies are responsible and accountable for project management practices and outcomes 4 Technical assistance 4 Note: The Department of Information Resources (DIR) provides consultation services to agencies, while recognizing that agencies are ultimately accountable for project outcomes 10 State of Texas Department of Information Resources Leadership for Texas Government Technology

Submission Requirements Timeline 11 State of Texas Department of Information Resources Leadership for Texas Government Technology

Portfolio of QAT Projects: Number of Projects Total Number of Projects (approximations) 100 89 90 80 74 70 60 60 55 50 52 46 48 40 2006 12 2007 2008 2009 State of Texas Department of Information Resources Leadership for Texas Government Technology 2010 2011 2012 2013 2014

Portfolio of QAT Projects: Project Costs (approximations) $ 3. 50 $ 3. 00 Project Costs in Billions of Dollars $ 2. 90 $ 2. 50 $ 2. 40 $ 2. 00 $ 1. 50 $ 1. 31 $ 1. 00 $ 0. 77 $ 0. 79 2006 2007 $ 1. 04 $ 1. 05 2008 2009 2010 $ 0. 50 $- 13 State of Texas Department of Information Resources Leadership for Texas Government Technology 2011 2012 2013 2014

Portfolio of QAT Projects: Trends Project Costs and Number (approximations) Project Cost # of Projects $ 3. 50 100 90 $ 2. 50 80 $ 2. 00 70 $ 1. 50 60 $ 1. 00 50 $ 0. 50 $- 40 2006 14 2007 2008 2009 State of Texas Department of Information Resources Leadership for Texas Government Technology 2010 2011 2012 2013 2014 Number of Projects Project Costs in Billions of Dollars (Red) $ 3. 00

SAO Report 13 -028: Analysis of QAT Projects 15 State of Texas Department of Information Resources Leadership for Texas Government Technology

Reasons for Project Overruns As Cited By Agencies SAO Report 13 -028: Analysis of QAT Projects 4 Vendor negotiations and bidding process delays 4 Legislative requirements change and/or requirements not well defined/scope changes 4 Turnover in project management and other key staff 4 Cost and timelines were underestimated 4 Lack of management support/stakeholder expectations not managed/priorities within agency changed 4 Project objectives and roles and responsibilities not clearly defined or understood 16 State of Texas Department of Information Resources Leadership for Texas Government Technology

Other Factors 4 Failing to break large projects into smaller/manageable pieces 4 Relying on the Framework as a replacement for project management practices per TAC § 216 4 Posting solicitations without effective project planningdivergence of contract management and project management 4 Initiating a major information resource project in a nonprescribed manner 4 Confusing QAT responsibilities with agency responsibilities for project activities or outcomes and decisions 4 Attempting to exceed project scope and quality expectations 4 Failing to communicate vendor performance issues that affect project outcomes 17 State of Texas Department of Information Resources Leadership for Texas Government Technology

Leverage Framework Tools and QAT to Reduce Risks Reason for Project Overruns Tools Which Can Help Reduce Reasons/Risks Associated With Project Overruns Vendor Negotiations and Bidding Process Delays Project Plan (incl. Supplemental Tools), Acquisition Plan, Co-Operative Contracts, Review Gate Approvals, Monitoring Reports Legislative Requirements Change and/or Requirements Are Not Well Defined/Scope Changes Iterative Development of Project Plan (incl. Supplemental Tools-Change Control, Risk Register, Quality Register), Software/System Requirements Templates Turnover in Project Management and Other Key Staff Prevention of turnover not directly applicable to Framework tools, however, Risk Register can help plan for these events Cost and Timelines Were Underestimated Business Case/Workbook and Checklists, Monitoring Reports. Work Breakdown Structure, Scheduling Tool Lack of Management Support/Stakeholder Expectations Not Managed/Priorities Within Agency Changed Project Plan (incl. Supplemental Tools-RACI, Communications Register, Risk Register), Monitoring Reports Project Objectives and Roles and Responsibilities Project Plan (incl. Supplemental Tools-RACI, Not Clearly Defined or Understood Risk Register), Project Charter, Business Case/Workbook, Checklists, Review Gate Approvals 18 State of Texas Department of Information Resources Leadership for Texas Government Technology

Framework Website: Gateway For Information Framework Main Page 19 State of Texas Department of Information Resources Leadership for Texas Government Technology

Resources CONTACT INFORMATION FOR GENERAL QUESTIONS 4 projectdelivery@dir. texas. gov QUICK REFERENCE (WHAT’S REQUIRED TO BE SUBMITTED TO QAT? ) 4 Framework Quick Reference Link WHAT IS THE STATEWIDE PROJECT DELIVERY PROGRAM? 4 Statewide Project Delivery Program Link WHERE CAN I FIND MORE INFORMATION ABOUT QAT? 4 Link to QAT Publications Website 20 State of Texas Department of Information Resources Leadership for Texas Government Technology