Summary

Summary of the 2002 IPMA Executive Summit

Campbell’s Resort, Lake Chelan, Washington
October 2-4, 2002

(NOTE: In April 2002 the IPMA Board decided to cancel the 2002 Executive Seminar due to the State's financial situation and to replace it with a smaller event focused on the current state government challenges (budget conditions, collective bargaining, etc.) The Board also decided that IPMA would pay the expenses of the attendees including transportation via chartered bus. The reduced size of the planned event (one representative per agency) dictated an invitation process with invitations extended to agencies that most consistently had been represented at previous IPMA executive seminars and/or DIS Customer Advisory Board meetings.)

The following is a summary of the Executive Summit with links to slide presentations. More detailed notes also are available (Microsoft Word format).

Wednesday October 2

1:30 – 3:00 p.m.

Stuart McKee, Director, Department of Information Services

"The Enterprise View of IT in Washington" (Microsoft PowerPoint)

Stuart McKee provided the kickoff for the 2002 IPMA Summit. He began by reflecting on his first five months as DIS Director. Stuart noted that there are few differences between State Government and any other large organization. The most significant differences he has observed are that people's lives depend on the systems that we run, and our "shareholders" are everywhere and they care.

He emphasized the importance of State IT managers focusing on common customers (citizens of the state of Washington) and on an "enterprise architecture" or "universal architecture" (something to tie together our "stovepipes").

He described the three hats that he wears: ISB Chair (oversight function -- 106 decision packages for 03-05 totaling over $250 million); DIS Director (service provider; approximately $2 billion in payments per month); and State CIO (strategic leader).

Stuart talked briefly about the new State CIO Roundtable that he has created to discuss the future of technology in the State and to provide leadership. He expressed his desire for the State’s IT leaders to "think about the things that everyone else will be thinking about in five years". Our challenge is how to manage the evolution of technology and redo the way that we are doing business at the same time. Business should drive technology but technology leadership should help drive business.

He noted that "stovepipes" are appropriate because of the different sets of needs among organizations. He further noted that the real challenge is identifying the common things among the enterprises that overlap one another and bringing them together -- this is the concept of "universal architecture".

Our financial situation provides fiscal motivation to collaborate on developing a framework so that in ten years, we will be where we are by purpose rather than happenstance. It is not an option to participate; it's a responsibility for us to collaborate across agencies to deliver better services to the citizens.

In a brief Q&A session, Stuart made a number of additional points including:

• This is about a cultural shift. Challenge will be less about the technology and more about cultural change. There will be a new strategic plan for the State within next 12 months and it will include "enterprise architecture". What do we call it?
• A strong CIO role is needed in State agencies. Some agencies are doing very well; some are not. Stuart wants to create a group that will help elevate those that are not represented.
• He will try to motivate organizations to take risk by leading by example. At the end of the day what is going to motivate people is success. We need to attract and create successes.
• There is not much risk in not changing, except that you will have more control over your destiny if you participate in making a change.

3:30 – 4:30 p.m.

Marty Brown, Director, Office of Financial Management

"The State Budget Outlook / Workload Drivers" (Microsoft PowerPoint)

Marty Brown, OFM Director, provided a review of the budget outlook for 2003–2005 biennium. He began by describing the projected $2 billion budget deficit and the major budget drivers. He noted that in difficult economic periods, caseloads (costs) increase and revenues decrease. He also talked about the effect of policy changes. Another revenue forecast will be released in November along with a new caseload forecast and the Governor’s proposed budget will be released in December. He noted that 01-03 State revenue will be less than 99-01 revenue, marking first decline in state history.

Marty then described what is being done to address this budget situation. He noted that agencies have been requested to provided updated activity inventory reports with highest, medium, lowest priorities (each category constitutes one-third of agency budget). This information is needed to be able to explain to people what we do. He noted that 85% of the budget goes to "educate, medicate, and incarcerate", i.e. (K-12 and higher education, health care, and prisons.

A process is underway with a guidance team (senior cabinet members, key staff, and private citizens) and a consultant to "knock down the silos". Ten "results teams" have been formed:

• Increase student achievement in K-12
• Improve quality and productivity in the workforce - community colleges, higher ed, retraining programs
• Deliver increased value from post secondary learning
• Improve the health of Washington citizens
• Improve the condition of vulnerable children and adults
• Improve economic vitality of businesses and citizens across the state
• Improve the mobility of people, goods, and information (Tansportation, pipelines, etc.)
• Improve the safety of people and property (Corrections, State Patrol)
• Improvethe quality of state's natural resources (DNR, Ecology, F&W)
• Improve cultural and recreational opportunities - (Parks, F&W, arts, etc.)

Each team is developing indicators and ideas on how to prioritize and spend money in these their area. The challenge to IT managers is to figure out ways to show folks that we can save money with technology and improve enterprise systems. Agencies may need to eat savings to pay for technology upgrades since the Legislature does not see how IT is helping their constituents.

4:30 – 5:00 p.m.

Doug Tanabe, IPMA Chair

"IPMA Business"

Doug Tanabe, current IPMA Chair, led a discussion of IPMA program issues. He noted that IPMA has existed since the mid 60's to provide networking and educational opportunities for the IT community.

Dennis Laine reported on Forum and requested feedback on planning of 2003 Forum; see "Planning Committee Reality Check".

Sheryl Hall briefly described the IPMA professional development program. She asked for input on topics for future sessions and help managing the problem with "no shows" -- encourage staff to cancel if they cannot attend.

8:00 – 9:00 p.m.

Charles Mason, Teacher and Field Guide

"Glacial Lake Missoula and the Ice Age Floods"

Charles Mason presented the after-dinner program, a captivating story of the Ice Age floods in Eastern Washington. Fifteen thousand years ago, the Pacific Northwest experienced a series of geological events, unequaled anywhere else in the world. A lake as large as Lake Erie and Lake Ontario combined, broke out of its confinement behind an ice dam, draining in as little as forty-eight hours and covering a land mass of 16,000 square miles.

Until the middle of the 20th century, very little was known about the facts of these momentous events. Now, thanks to J Harlan Bretts and others, we have most of the answers. Charles presented this story in a very entertaining manner and was the highest rated speaker of the Summit.

Thursday October 3

8:30 – 9:45 a.m.

Chang Mook Sohn, Executive Director, Office of The Forecast Council

"Washington's Current Economic and Revenue Conditions" (Microsoft PowerPoint)

Dr. Sohn provided presentation on the state’s revenue outlook and compared the recent revenue conditions with previous economic downturns, notably 81-83 and 69-71. The new 03-05 forecast announced two weeks ago by the Forecast Council was about $265 million less than the previous forecast. He characterized the situation as "very grave".

Among Dr. Sohn's observations was that the 01-05 period is expected to be the lowest growth 4-year period ever. This contrasts with 81-83 and 69-71 which were followed by high growth periods.

He also noted that the forecasts have more downside risk than upside risk. He also addressed the question of a state income tax as a state revenue source and noted that western states that have a state income tax have experienced even worse revenue declines.

Washington's unemployment rate of 7.2 % is the highest in the nation. In only two years the state's economy has gone from being one of the best in the nation to one of the worst today. The state's two key industries -- aerospace and technology -- have been major casualties in the current biennium and aerospace in particular is expected to take longer to recover than following previous recessions.

On the question of a possible housing "bubble", he cited trends suggesting to him that we would not a bubble effect.

10:15 a.m. – 12:00 p.m.

Gene Matt, Director, Department of Personnel
Sharon Whitehead, Deputy Director, Department of Personnel
Joyce Turner, Executive Policy Analyst, Office of Financial Management
Bill Joplin, Assistant Director State Procurement, General Administration

"Civil Service Reform, Collective Bargaining, and Contracting Out" (Microsoft PowerPoint)

Gene Matt, DOP Director, introduced the panel's subject area and the challenges in front of the Department.

Sharon Whitehead, DOP Deputy Director, discussed civil service reform. She described the process underway to develop the new civil service system including research of other public employment systems.

Joyce Turner, OFM, reviewed the collective bargaining law and plans for negotiating agreements to be effective July 1, 2005. She noted that the new law applies to 55% of all state employees; some employees are excluded (e.g. WMS). Bargaining will begin no later than July 2004; more realistically bargaining must begin by January 2004 in order to complete the tasks.

Bill Joplin, GA, discussed the current effort to prepare for implementing "Contracting Out" by July 1, 2005. This involves contracting out services traditionally done by State employees. Bill noted that Washington has the benefit of a number of other states going before us (Colorado, Virginia, Illinois, etc.). An activity or function is identified for possible contracting out and employees get an opportunity to provide alternatives. If a decision is made to contract out, then employees may form a business unit and respond similar to a private sector firm.

1:30 – 3:00 p.m.

Allen Schmidt, Chief Technical Architect and Development Manager, Office of Financial Management
Kathy Rosmond, Senior Project Manager, Office of Financial Management
Doug Tanabe, Assistant Director, Department of Personnel

"The Enterprise Architecture View of HR/Payroll" (Microsoft PowerPoint)

A review of the governance structure, goals, strategies, principles and architectural plans for the State’s Financial and Administrative Systems.

Using HR / Payroll as the backdrop, we will discuss why Enterprise Architecture is important, why this affects all state agencies and how an architectural approach can help us deal with and leverage this implementation.

Allen Schmidt began by reviewing the IT challenge.

• A recent survey of agency HR offices revealed 82 systems in operation (including 13 in the training area) that are redundant to DOP's HR/Payroll system and plans to develop an additional 34 systems (including 6 in the leave/attendance area). Agencies see a gap between what was available from the central systems and what they needed. Since state business rules are changing, all of these systems will be impacted. Is this redundancy a wise investment from an architectural point-of-view. What does it say about our values?

• Inconsistency in data definitions creates challenges when the data needs to be brought together. Active directory, single forest, etc. are all activities trying to establish consistency.

• Access Washington is an excellent example of setting an architectural direction for user access to the State's web-based information and services. With enterprise wide single sign-on we have the opportunity to better serve the citizens by avoiding the need for multiple ids to access multiple systems.

Allen then used the analogy of building a house to explain the need for Enterprise Architecture. He went on to define architecture from several perspectives, reviewed the benefits of using an architecture, and discussed the processes and elements of an architecture.

Kathy Rosmond then reviewed the implementation of Enterprise Architecture as it applies to State financial and administrative systems. She noted the interrelationships among agency, community of interest, and state architectures. In 1999, the central service agencies (OFM, DOP, GA, etc.) recognized a need to develop an architecture plan. In August 2000 the initial version of the information architecture blueprint plan was completed. Five major functional areas - financial management, procurement, enterprise reporting, budget management, and HR/payroll -- are identified. A list of 28 proposed projects was developed which the deputy directors prioritized; 9 projects were recommended. The Enterprise Strategies Committee was created and it has agreed to focus on the HR/Payroll system.

Doug Tanabe then discussed the proposed redevelopment of the HR/Payroll System and referenced . He characterized civil service reform and collective bargaining as the ultimate business process re-engineering challenge. Project objectives include:

• Streamline; improve data integrity by developing standards and common practices; share data with state agencies.
• Reduce the need for "shadow" systems, i.e. do a good enough job so that some agency systems can be retired because the agencies get what they need from the core system.
• Support single sign-on, employee identification, common employee database, self service by employees, managers, etc.
• Look forward to the day where we have an employee portal - salary, retirement, deferred comp, health benefits, etc.

A feasibility study is scheduled for completion by the end of December; the scope study includes payroll, personnel, and leave systems. A $10.5 million decision package has been proposed by DOP budget for 03/05. It is known that this is not enough money to meet all needs but this amount was based on how much time is available to implement something (15 to 18 months).

Currently 43 systems rely on information from DOP with 353 interfaces each month. Doug encouraged agency IT staff to meet with their HR managers early to review how civil service reform/collective bargaining rules will impact their agency systems and determine what they know about what changes are coming. Interfaces will need to be prioritized and DOP will need support from the other agencies to be successful.

3:30 – 5:00 p.m.

Josetta Bull, Engagement Manager for IT Strategic Plan in Sacramento, CA, Gartner Inc.
Phoebe Cameron, Project Manager of IT Strategic Plan in Sacramento, CA, Gartner Inc.

"Building an Enterprise Operating Framework" (Microsoft PowerPoint)

Josetta Bull facilitated a discussion regarding the creation of an Enterprise Operating Framework. The Enterprise Operating Framework includes Business Operating Principles, Governance, and an Enterprise Architecture approach to State issues. Civil Service Reform was used as a real case study to the Operating Framework.

(See notes in slides; did not cover Implementation Strategies)

Friday October 4

8:30 – 11:00 a.m.

Josetta Bull, Engagement Manager for IT Strategic Plan in

Sacramento

"Transitioning to an Enterprise Approach" (Microsoft PowerPoint)

(See notes in slides; did not complete.)

11:00 a.m. – 12:00 p.m.

Stuart McKee, Director, Department of Information Services
Thomas Bynum, Chair -- Customer Advisory Board and Assistant Commissioner of the Information Technology Services Division -- Department of Employment Security
Doug Tanabe, IPMA Chair and Assistant Director, Department of Personnel

"Where do we go from here?"

Thomas Bynum noted that CAB leadership role is going to be very instrumental in moving forward. He reviewed the results of a recent survey of CAB members; see survey results. Survey questions addressed the value of CAB, how to improve the value of CAB, top management issues and how CAB can help to address them, etc. Evaluated key issues for the state - Enterprise Strategy Committee, Gartner, etc.

Thomas also reviewed the major points of a Gartner presentation to CAB last April.

In his closing comments, Stuart McKee noted the challenge to the attendees to not let the conversations begun here stop here; the challenge is to collaborate. Leadership will be important. DIS will commit its resources to this collaborative effort to see that this gets done. Participation isn't optional; it's mandatory - we need to come together and collaborate to improve services to the citizens of Washington state.

Questions and comments that followed focused on the process for continuing collaboration. The need for discussions within and between numerous groups was noted including CAB, ISB, EMG, FMAC, HR Managers, Administrative Services Managers, etc. Doug Tanabe, speaking for the IPMA Board, offered to sponsor a follow-up session to continue work on principles, strategies and change management. The latter was noted as an action item.

, CA, Gartner Inc.
Phoebe Cameron, Project Manager of IT Strategic Plan in Sacramento, CA, Gartner Inc.