IT Project Management in Texas State Government

1. IT Project Managementin Texas State Government July 30, 2018

2. AGENDA • Introduction • Get To Know Your QAT • Project Delivery Requirements • Yes You Can! Have an Agile Procurement • Agile Experience: One city’s cautionary tale

3. Get to Know Your QAT

4. The Quality Assurance Team (QAT) • We’re made up of a team of experts from: • Legislative Budget Board • Department of Information Resources • Comptroller of Public Accounts • State Auditor’s Office • Our combined IQ is just under a thousand! Tex Gov’t Code 2054.158

5. IQ Distribution All Attendees of this Forum All Attendees of this Forum

6. QAT Background • Review status of Major Information Resources Projects (MIRPs) • Make recommendations to the legislature to reduce risk of project overruns and failures • QAT defined risk “likelihood that a project will not deliver a quality solution based on the timeline, budget, and scope commitments made to legislature

7. QAT Background Part Deux • Review status of Major Information Resources Projects (MIRPs) • Make recommendations to the legislature to reduce risk of project overruns and failures • QAT defined risk “likelihood that a project will not deliver a quality solution based on the timeline, budget, and scope commitments made to legislature

8. QAT Consult • Project Planning and Execution • Best practices in QAT Annual Report* • Offer consult while developing business case • Provide lessons learned from other agency projects • Consult during major issue resolution • Using Project Delivery Framework Deliverables • Provide assistance and training • Provide completed Framework template examples *Requirement of TX Gov’t Code 2054.304(d)

9. QAT Oversight • Review & Approve • MIRP business case before expenditure of appropriated funds • $10M or greater contracts associated with your MIRP. Includes any contract that touches the SDLC from analysis and planning to independent monitoring, design, development, implementation, and anything in between! • Contract Amendments that change the total contract amount by 10% or more • 50% or over schedule or budget cost-benefit analysis

10. QAT Oversight Part Deux • Monitor • Determine which projects need to be monitored and the frequency of monitoring • Obtain status of projects through agency monitoring reports • Use of new online submission tool • Report • Prepare QAT Annual Report • Report to state leadership the status of MIRPs as needed or as requested • Beginning FY19 Reporting status of projects on a public dashboard

11. QAT Tool Belt • Request SAO to conduct project reviews • Request agency project and executive team to provide analysis and plans for resolving major issues • May require IV&V services for >$10M projects • May require independent monitoring or oversight of projects • For poorly managed projects or excessive cost overruns, may establish a Corrective Action Plan or recommend that a project be discontinued

12. 2017 Projects Snapshot • 68% of projects had an initial duration of 27 months or less • Only 1% of those exceeded their initial cost and duration estimates by more than 10%. • 32% of projects had an initial duration of 28 months or more • 40% of those exceeded their initial cost and duration estimates by more than 10%. • #ProTips • Scope those projects small! • Show your bosses how you can break up large projects into chunks

13. 2017 Projects Snapshot – Part Deux • Procurement timelines are one of the most underestimated durations in project planning, setting your project schedule off to a bad start! • #ProTips • Talk to your procurement team, other PMs at your agency • Factor in the i n t e r n a l a p p r o v a l p r o c e s s • Factor in any federal or state requirements for additional reviews • DIR SOW review • CAT Team solicitation review • QAT contract review for >$10M contracts

14. MIRPs • Any IT project identified in a state agency’s biennial operating plan whose development costs exceed $1 million and that: • requires one year or longer to reach operations status; • Involves more than one state agency; or • Substantially alters work methods of state agency personnel or the delivery of services to clients; and • Any IT project designated by the legislature in the General Appropriations Act

15. So is this a MIRP?

16. MIRP Quiz • This IT Modernization project is estimated at $2 million. • However, the application development piece will only be $500,000. • The project is estimated to take two years to complete

17. MIRP Quiz 2 Show of Hands • Is this a Major Information Resources Project?

18. MIRP Quiz 3 • Modernizing IT Infrastructure estimated at $1.1 million, which includes FTE hours. • Project will contract for new hardware and installation services • Software and systems development are not included in this scope.

19. MIRP Quiz - 4 Show of Hands • Is this a Major Information Resources Project?

20. Framework • Helps agencies deliver MIRPs on-time and within scope/budget • Provides a consistent way for agencies to report project status and other project information to the QAT • Ensures that business needs and outcomes are placed ahead of technology • Required for MIRPs • Only effective when combined with PM and SDLC methods Framework is a Toolset & Guide for MIRPs

21. Legislative RequirementsSB533, HB3275, SB1910 • Incorporate QAT Best Practices into Project Plans (can be found in QAT Annual Report – http://qat.state.tx.us) • Technical Architecture Assessment • Execution Capability Assessment • New QAT Project Tracking System • Public Dashboard of Performance Indicators (rolling out with new system in August) • Cost (CPI) • Schedule (SPI) • Quality • Scope • Intense Monitoring for off track projects

22. Legislative RequirementsGAA Article IX • Agency must submit for QAT Approval prior to agency signing: • Any $10M or more contract associated with MIRP • MIRP Amendments of 10% or more • Agency must notify QAT of solicitations • Agency must notify QAT of $10M+ executed contracts within 10 days • 50% Over budget or schedule must submit a cost-benefit analysis to QAT for Approval • Agency must submit IV&V reports

23. Texas Project Delivery Framework Five Step Framework Process Step 1: Initiate Step 2: Plan Step 3: Execute Step 4: Monitor & ControlStep 5: Closing

24. Framework Requirements Handout

25. Quiz! • Agency ABC is running a MIRP. • They have a contract change order for 5% increase executed on January 1. • They have a second contract change order of an additional 6% planned for December 1. • Do they need to fill out a CACOA and submit to QAT for approval?

26. Quiz! 2 • Agency ABC is running a MIRP. • They have a change order for 5% increase executed on January 1. • They have a second change order of 6% planned for December 1. • Do they need to fill out a CACOA and submit to QAT for approval? • YES!! • Since the combined change orders 5%+6% are greater than the 10% threshold, they must submit and include details about both.

27. Performance Indicators

28. Cost

29. Dashboard Alert

30. Schedule

31. SPI Dashboard Alert

32. Scope Performance Indicator

33. Scope Dashboard Alert

34. Quality

35. Quality Dashboard Alert - Green

36. Quality Dashboard Alert - Yellow

37. Quality Dashboard Alert - Red

38. Quality Dashboard Alert

39. Dashboard – Agency Projects

40. Dashboard – Project Detail Click on project, see project details (3rd click)

41. Statewide Project Reporting System • Planview PPM Pro licenses purchased for agencies to use the system to submit deliverables and record project data • Rolling out the system TODAY! • Performance Indicators and dashboard will begin with roll-out of new system after first month of collecting data

42. Next Steps! • Goal: Next monitoring report to be entered into the QAT online submission tool • Publish first set of dashboard measures in September • Work with agencies to ensure we can get to compliance by December, i.e. Quality Register or Quality Management Plan.

43. Final Quiz! • Which agency is NOT part of the QAT? • Department of Information Resources • Funeral Commission • Legislative Budget Board • State Auditor’s Office • Comptroller’s Office

44. DIR EVENTS & COLLABORATION • www.dir.texas.gov • Click on CALENDAR (top of any page) • See upcoming events • STAY CONNECTED (bottom left) • DIR discussion lists, newsletters TX-PM– discussion list for State of Texas government IT project management community.

45. Questions? Tom NilandProgram Director tom.niland@dir.texas.gov Patrice WilsonProject Manager patrice.wilson@dir.texas.gov ?

46. YES YOU CAN! Use Agile for Your IT Procurement

47. Presenters Elizabeth Lopez Mary Vickery Contact Manager Contract Manager Cooperative Contracts Cooperative Contracts

48. Agile Agenda • Introduction • Choosing the Project Methodology • Waterfall and Agile • Planning the Agile Statement of Work • Standard elements of an SOW • Template Overview • Agency SOW Review Requirements • SB 533 Threshold Requirements  • Common Findings • Questions

49. Video

50. Yesterday’s Thinking • We can’t contract for Agile. • We need to write detailed specifications for our contracts. • Sometimes even coming up with 1,000s of requirements. • Scope of work needs to be set in stone – not allowing for user feedback along the way. • It’s just the way we’ve done things forever!