IS STRATEGY & ICT GOVERNANCE PLAN FOR VICROADS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
IS STRATEGY & ICT
GOVERNANCE
PLAN FOR
VICROADS
A Proposal Report
Assignment: A02 - IS Strategy & ICT Governance Report
Subject: IS Strategy & Governance (ISYS900038 Sem 1 2014)
Group X: Ahmed Dédeche Prashanth Purushothaman
Marco Reyes Reshma Muralidharan
Philip Kibaki Rui Ji
The University of Melbourne
Master of Information Systems
ISYS90038-IS Strategy & Governance
VicRoads Governance Plan Proposal
Table of Contents
Executive Summary .............................................................................................................................. 3
1 Introduction .................................................................................................................................. 4
1.1 Background ............................................................................................................................ 4
1.2 Choice of Evaluative ICT Governance Framework ................................................................ 5
1.2.1 About COBIT 5 ................................................................................................................ 5
1.2.2 Why COBIT 5 .................................................................................................................. 5
2 Current ICT Strategy ..................................................................................................................... 2
2.1 Current Business Goals and Directions ................................................................................. 2
2.2 Current ICT Strategic Plan ..................................................................................................... 2
2.3 Current Strategic Planning Framework ................................................................................. 3
2.4 Stakeholder Analysis ............................................................................................................. 3
2.5 Analysis and Evaluation of Current ICT Strategy ................................................................... 4
2.5.1 Six critical success factors .............................................................................................. 4
2.5.2 Key Findings: .................................................................................................................. 5
3 Current ICT Governance ............................................................................................................... 7
3.1 Current ICT Governance ........................................................................................................ 7
3.1.1 Analysis and Evaluation of Current ICT Governance ..................................................... 7
3.2 Current ICT Governance Decision Making – Analysis & Evaluation .................................... 11
3.2.1 Operating Model .......................................................................................................... 11
3.2.2 Governance Arrangement Matrix ................................................................................ 13
3.2.3 ICT Governance Design Framework ............................................................................. 16
3.2.4 ICT Governance Policy Framework .............................................................................. 17
3.2.5 ICT Governance Performance Measurement .............................................................. 17
3.2.6 Conclusion current IT Decision Making ....................................................................... 19
4 Proposed ICT Governance Plan .................................................................................................. 20
4.1 Operational Strategy ........................................................................................................... 20
4.1.1 Operating Model Enhancement................................................................................... 20
4.1.2 An Enabling Enterprise Architecture ............................................................................ 21
4.2 Proposed Governance Arrangement .................................................................................. 22
4.2.1 Optimising Decision Making Arrangements ................................................................ 22
1 of 68VicRoads Governance Plan Proposal
4.2.2 Forming an IM&T Independent Department ............................................................... 23
4.3 Proposed ICT Governance Processes .................................................................................. 24
4.3.1 Align, Plan & Organise.................................................................................................. 24
4.3.2 Build, Acquire & Implement ......................................................................................... 33
4.3.3 Deliver, Service & Support ........................................................................................... 37
4.3.4 Monitor, Evaluate & Assess (runs across APO, BAI & DSS) .......................................... 38
4.3.5 Evaluate, Direct & Monitor (runs across APO, BAI & DSS) .......................................... 41
4.4 Proposed ICT Governance Performance Measurement ..................................................... 45
4.5 Identified Enterprise Enablers ............................................................................................. 50
4.5.1 Processes ...................................................................................................................... 50
4.5.2 Organisational Structure .............................................................................................. 51
4.5.3 Culture, Ethics & Behaviour ......................................................................................... 52
4.5.4 Information Resources ................................................................................................. 53
4.5.5 ICT Services, Infrastructure & Applications ................................................................. 54
4.5.6 People, Skills & Competencies ..................................................................................... 55
4.6 Proposed ICT Governance Design Framework .................................................................... 57
4.6.1 Alignment of ICT Infrastructure and Behaviours with Organisational ICT Strategy .... 58
4.6.2 Alignment of ICT Governance Mechanisms with ICT Governance Arrangements ...... 61
4.6.3 Alignment of ICT Performance Metrics and Accountability with Business Performance
Goals 62
4.7 Proposed Implementation and Change Management........................................................ 63
4.7.1 Introduction ................................................................................................................. 63
4.7.2 Themes for Increasing Agreed Acceptance of Change ................................................ 63
4.7.3 Change Plans and Implementation .............................................................................. 65
5 References .................................................................................................................................. 66
6 Appendix ........................................................................................................................................ I
6.1 Acronyms ................................................................................................................................ I
6.2 Table of Figures & Tables ...................................................................................................... II
6.2.1 Figures ............................................................................................................................ II
6.2.2 Tables ............................................................................................................................. II
6.3 COBIT 5 process reference model used in VicRoads ............................................................ III
2 of 68VicRoads Governance Plan Proposal
Executive Summary
This report aims to provide VicRoads with guidance in terms of IS strategy and ICT governance. It
seeks to conduct an assessment of VicRoads’ current ICT governance policies and practice, its
alignment with ICT strategy and finally seek to provide, in form of a proposal, future directions for
these areas.
The focus of this report will be on the proposed plan, which in turn, will provide guidance in
development of VicRoads’ overall enterprise architecture.
This report is divided into three main sections:
1. Current ICT Strategy (Section 2)
In this section the current ICT strategy in VicRoads is introduced, by identifying: business
goals, business directions, strategic plan, stakeholders and strategic planning framework.
Subsequently, the ICT strategy is evaluated and assessed against industry standards. Finally
a list of key findings is concluded.
2. Current ICT Governance (Section 3)
Likewise, VicRoads’ current ICT governance is evaluated in this section. First a detailed
evaluation against COBIT 5 Enabling Processes criteria is conducted. Next, an assessment of
current organisational operations is done utilising “Operating Model” analysis.
Furthermore, the current ICT governance decision making is assessed mainly by identifying
the “Decision Arrangements” and the “Governance Design Framework”. Finally, an
assessment of governance performance measurements is also carried out.
3. Proposed ICT Governance Plan (Section 4)
In this section a holistic ICT Governance Plan is proposed; a plan that addresses all the
identified issues in the previous two sections. Namely, enhancing: the operating model, the
decision making arrangements, the design framework and the governance performance
measurements. A governance plan is proposed based on COBIT 5 with identified enablers
for quick wins. Finally, an implementation and change management plan is suggested to
successfully implement the ICT governance plan.
3 of 68VicRoads Governance Plan Proposal
1 Introduction
1.1 Background
VicRoads is a Victorian statutory authority – a state government agency that assists the Victorian
government in Australia achieve its integrated transport policy objectives. It supports Victoria’s
liveability and economic prosperity by planning, developing and managing the major road network
and delivering registration and licensing services (VicRoads, 2014).
The Chief Executive is appointed by the governor in the council and is constantly reporting to the
larger - department of transportation. Being a government agency, VicRoads is bound to the state
government objectives and seek to follow its strategies. This largely shapes VicRoads strategic
directions and objectives.
Consequently, VicRoads sets out a strategic direction for its ICT to enable it achieve its
organisational goals outlined. The strategy provides a clear link between the VicRoads
organizational strategic direction and challenges the IM&T principles and key business outcomes.
Therefore, Information management and technology (IM&T) is a key business enabler in delivering
VicRoads Strategic Directions. This Strategy defines the strategic direction for IM&T investment
and establishes the framework to identify and prioritise IM&T investments across VicRoads. The
Strategy applies to all holders of information assets and associated technology across VicRoads. It
is governed by the Information Access and Technology (IA&T) committee (VicRoads, 2014).
In addition, VicRoads prepares on an annual basis, a Corporate Plan which is a companion
document to the Strategic Directions. It outlines key initiatives for the forthcoming year that are
aligned with the objectives, strategic priorities and internal capabilities.
Information Management and Technology (IM&T) Services
IM&T is mandated by VicRoads to provide the following services: information communications
technology (ICT) infrastructure provision, service support, business application development,
project delivery, strategic planning, policy development, spatial and information services, client
relationship management. The strategy encompasses all these services (VicRoads, 2014).
In summary VicRoads IM&T Strategy:
Defines the strategic direction for information management and information technology
within VicRoads.
Establishes the framework to identify and prioritise IM&T investments.
Sets out the priority activities to delivery and support the strategy.
4 of 68VicRoads Governance Plan Proposal
1.2 Choice of Evaluative ICT Governance Framework
The COBIT 5 framework has been selected for the evaluation of IM&T strategic and governance
plan. It will also form the basis from which the proposal is made. This framework extends upon
and incorporates several other major frameworks, standards and community resources. Thus gives
a complete view of the governance and management of IT and especially enterprise IT.
1.2.1 About COBIT 5
COBIT 5 amasses a number of models, practices, principles and tools that enable IT governance
and optimal value for the enterprise. It does this by addressing the relationship between IT and
business as well as guiding the management of internal and external stakeholders.
In a nutshell, COBIT 5 is based on 5 Principles:
1. Meeting stakeholder needs; 4. enabling a holistic approach;
2. Covering the enterprise end-to-end; 5. Separating governance from
3. Applying a single integrated framework; management.
It also addresses what it defines as Enablers. These are:
a) Principles, policies and frameworks; e) Information;
b) Processes; f) Services, infrastructure and applications;
c) Organizational structures; g) People, skills and competencies;
d) Culture, ethics and behaviour;
In essence, COBIT 5 brings together the five principles that allow the enterprise to build an
effective governance and management framework based on a holistic set of seven enablers that
optimises information and technology investment and use for the benefit of stakeholders.
1.2.2 Why COBIT 5
IM&T in charge of VicRoads ICT needs is part of the larger Victoria Government (VoG). As a
government agency in Victoria, this means that policy direction is guided through to IM&T by
Victoria Government. In turn, the Victorian Government uses the ISO Standard: ISO 38500 as the
basis for building ICT strategy and governance. COBIT 5 complies and fits right in with various ISO
standards including ISO 38500, making it a most suitable choice of framework.
In addition, through what COBIT 5 defines as Enabling Processes, a comprehensive set of
processes and practices can be defined in direct reference with VicRoads goals and directions. This
is complemented with a set of metrics for the enterprise and IT-related goals.
5 of 68VicRoads Governance Plan Proposal
Current ICT Strategy
2 Current ICT Strategy
2.1 Current Business Goals and Directions
The focus of Strategic Directions for VicRoads is on “road systems” as it is the foremost part of the
transport system for which they are responsible. The goals can precisely be stated as:
Operate and maintain road systems for easy and reliable transport.
Improve road connections between important places and people.
Improve road safety.
To make Road System more environmentally sustainable.
In order to achieve these objectives, it is necessary for VicRoads to adopt measures to confront all
the challenges efficiently. These challenges involve demographic influence which would result into
increased freight carried in roads, increasing resource efficiency in order to increase
environmental sustainability, increasing resistance against extreme weather events, efficiency in
exchange of information between customers and stakeholders and over and above all,
maintaining a cost effective asset maintenance. It is necessary for VicRoads to astutely use the
capabilities it possesses, to overcome its challenges competently (VicRoads, 2012-2014).
The current business goals require improved integration of the major information sources,
engagement by collaboration, information sharing with regulatory obligations, build efficient
online services for users like Real Time Service interactions through Intelligent Transport,
arrangement of authoritative access to metadata for community consultation and a backing of
new technologies to support staff operations (VicRoads, 2012-2014).
2.2 Current ICT Strategic Plan
The current ICT strategy plan (2012-2014) is directed by VicRoads Information and Management
(IM&T) environment. To meet the objectives, IM&T principles are designed aligning it to corporate
goals by providing best possible value for VicRoads with reduced complexity.
VicRoads IM&T recognizes its key business outcomes as an inference from the strategic directions
and implements actions to confer:
1 Enhanced customer service delivery, community and stakeholder engagement
2 Sustained shift online by standardising business processes for vehicle registration and
driving licensing.
3 Reduced long-term assets cost by improved management of road-related assets.
4 Improvement in road use management, ensuring efficient road safety operations with
minimal environmental impacts.
5 Increased VicRoads staff productivity by implementing appropriate business enabling
technologies and processes.
2 of 68VicRoads Governance Plan Proposal
Current ICT Strategy
6 Optimum business outcomes by efficient usage of corporate resources, capabilities and
assets.
2.3 Current Strategic Planning Framework
VicRoads over the course of years has followed a set of guiding principles that embrace upon
strategic alignment of business with Information technology, value for money and reduced
complexity. One of the important components that VicRoads followed is framework that set
standards for strong accountability and appropriate governance. The framework reiterates models
that produce long term business plan. The plans are generally focussed not only on the business
goals but also the IM&T capabilities to achieve those goals. The framework also includes
procedures that would help VicRoads attain sustainable and sizeable growth for longer terms. In
relations to the framework, the VicRoads does not follow a specific framework that abides within
the rules whereas; it has developed and follows its own principles. It changes and updates its
strategy based on the new opportunities and present changes in the business on a regular basis.
According to VicRoads, good governance includes attributes that help them run business in an
efficient and accountable manner. With respect to that, VicRoads firstly intends to develop
frameworks that focus on delivering commitments on time and within the budget. Secondly, it
intends to focus upon improving the performance of the staff by producing sufficient information
about the responsibilities. Furthermore, since Victorian Roads is an evolving business, the
VicRoads framework envisions that the decisions across the stakeholders must be made
transparent.
2.4 Stakeholder Analysis
VicRoads strategy is focussed on addressing the current challenges along with the operational
issues taking in consideration the key stakeholders demands with respect to the information
management and technology. The analysis is aligned with the demands or the expectations from
not only the internal and external changes in the business environment but also fast growing
stakeholder expectation. Since VicRoads is a governmental organization, it needs to collaborate
with various other government agencies across Victoria to produce management outcomes. The
stakeholders include government organizations and other industry stakeholders that come
together to produce an excellent transport system across Victoria.
The business outcomes at VicRoads are analysed by producing excellent customer service delivery
and stakeholder engagement. The stakeholder engagement in every aspect of business
development and change related elements are communicated to the stakeholders by engaging
them in the process of optimizing and consolidating systems. The strategic direction at VicRoads
focuses on improving the information management system by integrating services by collaborating
with government and industry related stakeholders. VicRoads in its strategic plan focuses on
improving information sharing among the stakeholders by enhancing its existing processes and
operation functions. The internal stakeholders VicRoads needs to be efficient and effective in
3 of 68VicRoads Governance Plan Proposal
Current ICT Strategy
enabling technologies and processes by delivering improved access to information, developing the
right tool to perform the right job and also striving to provide a work-life balance for VicRoads
staff.
2.5 Analysis and Evaluation of Current ICT Strategy
This section would illustrate the understandings gained by analysing the findings from the
VicRoads strategic plan. The detailed analysis of the findings are in separate reports which are
available upon request. Based on the detailed analysis of the VicRoads evaluation and current ICT
strategy, there are some key findings which needs to be addressed in alignment with the critical
success factors. There are six critical factors that need to be captured when describing the
findings. Based on the key findings and the six success criteria factors, we can evaluate the
strategy of the VicRoads. Initially, it would be essential to discuss the six success criteria factors,
then analyse the key findings based on the detailed analysis and finally observe the alignment of
VicRoads strategy with the success factors discussed by (Kaufman, 2003).
2.5.1 Six critical success factors
Factor 1: Analyse things from a broader perspective for planning, doing, evaluating and
continuous improvement. This factor generally demands organization to come out of
the comfort zone when doing the above mentioned things.
Factor 2: This is an important factor, as tries to artefact the target/goals and the means through
which the organization is going to reach that goal.
Factor 3: This factor takes into consideration the three important factors and analyses success at
three different factors.
a. Mega/Outcomes
b. Macro/Outputs
c. Micro/Products
Factor 4: This factor, tries to define goals and have checkpoints to observe if the progress is
aligned with the goals. In general terms, it defines the vision and mission and the
examination to achieve the same.
Factor 5: This factor portrays the importance of ideal vision as the underlying basis for planning
and continuous improvement.
Factor 6: This factor, defines the term “need” with respect to the gap that the organization faces
rather than the insufficient levels of resources, means or methods.
4 of 68VicRoads Governance Plan Proposal
Current ICT Strategy
2.5.2 Key Findings:
The key findings are based on the analysis of the strategy of VicRoads. A summary of these
findings is listed below.
1 In the VicRoads current strategic plan it fails depict its current state and this would have a
direct impact while trying to come up with strategies that could fit the gap between the
current state and the required future state.
2 In the VicRoads current strategic plan, it fails to align the business demands with the
Information and Management Technology. VicRoads, in their strategic plan shows where it
wants to reach but fails to address each one of them separately. The overall strategies at
VicRoads do not match with the current IM&T.
3 In VicRoads current strategic plan, they portray that they have monitoring process and they
are analysed and put forth during their annual reports. But, it is necessary to have regular
check points to see if there the strategy matches with the objectives. Therefore, VicRoads
lacks a measurement analysis method that indicates the events occurring during the
internal and external change.
4 In the VicRoads current strategic plan, it fails to establish a communication plan between
the internal and external stakeholders. There is no evidence that VicRoads is
communicating their progress. This shows that, even though their organization had a
decent organizational structure, it did not mention how it is going to co-ordinate,
communicate or define rules for communication.
5 In the current VicRoads strategic plan, it mentions about their vision and mission. Though,
it fails to mention about the resources required ti achieve them. It is vital that VicRoads has
a plan in place to depict about the current resources and how they are going to assess
when dealing with demanding situations. VicRoads might end up incurring loses when they
fail to have the resources when they are in demand. The other aspects of change and
resource management also affect the requirements.
6 In the current VicRoads strategic plan, they have massively failed to analyse the risk and
impacts that the risk would have on the organization as a whole. With respect to the risk
management the VicRoads does not have a plan in place for assessment management,
data management, security, employee work threats and budget threats.
7 In the current VicRoads strategic plan, it does not show how it is going to manage change
or its readiness to change which the ICT plan inevitably causes.
Mentioned above are some of the key findings with respect to the VicRoads strategic plan. In the
below section we will weigh the key findings with respect to the critical factors for success
discussed by Kaufman (2003).
In all the seven key findings mentioned above, it clearly shows that in the current strategic plan,
VicRoads did not analyse components from a broad perspective. For instance, they did not have a
5 of 68VicRoads Governance Plan Proposal
Current ICT Strategy
plan for change management and risk management. In key finding (5) it shows that it did not have
a plan to evaluate components and measure them at regular basis to reach the target.
VicRoads had plans and equivalent number of strategies through which they are going to attain
their goals. But, throughout the strategic plan there is lack of enough evidence that explicitly
states the means through the organization is going to reach the goals.
Factor 3 suggests about the importance of knowing the outcomes, outputs and products of the
VicRoads. Nowhere, in the strategic plan, there is any clear evidence that states the outcomes,
outputs and products required for the organization to clearly strategize their plan accordingly.
Kaufman, suggests that these are some of the important classifications when deciding upon a
strategy and critically stressing upon the success factors.
The VicRoads has an annual plan report that states about its progress. But, it does not mention
about the checkpoints at different stages to manage change or any critical issues that occurs
within the organization or from the external aspects. This might sometimes possess as a factor by
which organization might fall apart from reaching their vision and mission.
The VicRoads has a strategic plan and the strategic plan is acceptable in terms of the success
factors, but it does not show a plan for the continuous improvement as mentioned by Kaufman in
one of his critical success factors. This could have a major impact with VicRoads as they are
following a more of a traditional approach rather than an agile approach where it helps to manage
change and continuously seek to improve.
The final success factor defines “needs” that VicRoads has to put in place to cover the gap with
respect to the to-be state from the as-is states. It basically suggests what it needs to reach the
target state apart from the key factors of resource, means and process methods.
6 of 68VicRoads Governance Plan Proposal
Current ICT Governance
3 Current ICT Governance
3.1 Current ICT Governance
The analysis of the IM&T current governance is accomplished by evaluating the appropriate
practices and activities outlined in COBIT 5 relevant to this plan. The IM&T strategic plan is
analysed for evidence that supports best practises. Thus seeks to derive a gap analysis using the
same based on the accomplishments of each criterion. This section seeks to create a baseline from
which the proposal will be grounded on.
3.1.1 Analysis and Evaluation of Current ICT Governance
The following are conclusions made from the detailed assessment. The table below illustrates a
detailed breakdown of the strategic plan against the criteria set out in the COBIT 5 framework.
Processes mentioned here are those most relevant to VicRoads and those that have supportive
evidence for inclusion. This paves the way for the ICT Governance proposal section of this report.
*Page numbers mentioned in the table below correspond to pages in the VicRoads ICT strategy
(2012-2014) document.
(Next Page)
7 of 68VicRoads Governance Plan Proposal - Current ICT Governance
COBIT 5 COBIT 5
Evidence Assessment Maturity Rating
Ref Criteria
APO01 Manage the IT 1. A description of how to apply the IM&T principles is described. This also Activities not sufficiently discussed in the plan are
Management helps drive key business outcomes p.10 risk analysis or description of risk assessment. This
Framework 2. IM&T have developed within a set of principles by which to follow. forms a key understanding to business risks and
These are match in line with key business outcomes and objectives. p. 5 complete viability of the strategy (ISACA 2014).
APO02 Manage 1. Input from the existing VicRoads strategy the IM&T strategy is However, within the ICT strategic plan, no evidence
Strategy formulated. shows due attention to identify and analyse
2. The plan also picks up from existing WoVG strategies, policies and other sources of change in the enterprise and external
external drivers. The approval p.4 environments. This is crucial for incremental review
3. There is an identification of key stakeholders with the use of a of the plan (Luftman 2000). Though, a frequent
review to the ICT plan is in place.
stakeholder analysis, ensuring relevant stakeholder engagement. pp.15
Though this is a high level ICT strategic plan, there
& 20
is no sufficient identification of threats from
4. Through the governance and assurance framework we see the network
declining, current and newly acquired technologies.
for endorsing and driving ICT Strategy. p. 20 This is key to formulating forward paths in the
strategy (Elmorshidy, 2013).
APO03 Manage 1. Through the governance and assurance framework we see that the plan Not much has been explored on VicRoads’
Enterprise incorporates an enterprise architecture vision. p. 20 readiness to change i.e. – ‘Assess the enterprise’s
Architecture 2. Comprehensive business outcomes and critical enabling strategies used readiness for change.’
to define the ICT strategy. pp. 19-29
APO12 Manage Risk 1. Evidence from the plan suggests extensive investigations over the Though inferred through VicRoads’ continual
capabilities of IT as a service and describes high level objectives through assessment of the ICT Strategic Plan there is no
its key strategies. pp.6 & 23-29. formalised mention of continual risk analysis.
A comprehensive risk analysis is essential for input
8 of 68VicRoads Governance Plan Proposal - Current ICT Governance
COBIT 5 COBIT 5
Evidence Assessment Maturity Rating
Ref Criteria
*No formal referral to risk though, but is essential. to create an effective strategic plan (Elmorshidy,
2013; Luftman, 2004). (Luftman 2000, Elmorshidy
2013, ISACA 2014).
BAI02 Manage 1. Involving relevant stakeholders, IM&T develop a road map of priority A lack of clear strategic alignment – VicRoads goals
Requirements actions and key strategies. These are divided into critical enabling with IM&T principles this is carried through from
Definition strategies for business outcomes pp.18-29 the strategy and principles.
BAI05 Manage 1. The plan describes a governance model for the development and A lack of established and maintained optimal co-
Organisational implementation of the IM&T strategy. p.19 ordination, communication and liaison structure -
Change 2. A governance and assurance framework is described that aims to align define ground rules for communication
Enablement business outcomes. p.20
This is important to have to ensure proper
3. It is also important to note that VicRoads have developed and use their
coordination of strategy to action plan workflow
own communication plan, however, no reference has been made here. (ISACA, 2014).
(VicRoads, 2014).
BAI08 Manage 1. The current ICT plan is based off previous revisions and is developed Though inferred through VicRoads’ continual
Knowledge upon cyclically with the next review performed within a year of the last assessment of the ICT Strategic Plan there is no
indicating knowledge management during strategy p.3 formalised mention of continual knowledge
management activities.
DSS03 Manage Through the governance and assurance framework we infer that the plan No clear cut evidence suggest not a compressive
Problems incorporates an enterprise architecture vision for managing ICT challenges. problem management structure.
p. 20
MEA01 Monitor, 1. It is described that the IM&T plan undergoes a regular review within the No clear cut evidence suggest not compressively in
9 of 68VicRoads Governance Plan Proposal - Current ICT Governance
COBIT 5 COBIT 5
Evidence Assessment Maturity Rating
Ref Criteria
Evaluate and specified time line. p.3 effect.
Assess
Performance
and
Conformance
MEA03 Monitor, 1. IM&T establish first an understanding of enterprise vision. This is Inferred by virtue of being a Victorian government
Evaluate and especially evident with the emphasis on compliance to the overall agency however no clear cut evidence suggest this
Assess organizational strategies. The preparation of this strategy complies and is not compressively achieved.
Compliance is driven from the business and the Whole of Victorian Government
with External (WoVG) pp.5,6 &11
Requirements
EDM02 Ensure 1. Through the governance and assurance framework we see the network No adequate cost, risk and implications as well as
Benefits for endorsing and driving ICT Strategy, This network however, does not indicative resource requirements have been
Delivery show adequately an assessment of stakeholder requirements fulfilment addressed against stakeholder requirements in the
vs benefits delivery. p. 20 plan. This is crucial to developing a comprehensive
strategic plan that encompasses broad stakeholder
concerns (Rahman, 2008).
EDM05 Ensure 1. There is an identification of key stakeholders with the use of a No clear cut evidence suggest not enough may be
Stakeholder stakeholder analysis, ensuring these stakeholders have engagement in done to accomplish sufficient transparency
Transparency the projects thus offering transparency. pp.15 & 20
Table 1 Analysis and Evaluation of Current ICT Governance
10 of 68VicRoads Governance Plan Proposal
Current ICT Governance
3.2 Current ICT Governance Decision Making – Analysis & Evaluation
3.2.1 Operating Model
As a government agency, VicRoads strives to achieve operational excellence. This is clear in the
description of its function in the Transportation Integration Act 2010 as well as in VicRoads
strategic objectives. This adds a greater emphasis on the importance of understanding the
operations of the company.
Ross, Weill & Robertson’s (2006) operating model is used here to analyse the current operation
situation of VicRoads. The model evaluates an organisation’s operations in two dimensions:
Integration and Standardisation of business operations.
Operating model analysis is not included in the current strategy, nor is it present in any of our
resource documents. It is hard to determine accurately the operation model without investigating
daily operations. However, the operating model can be inferred from the documents, as described
in the following sections, as well as in analysis table (Table 2).
Coordinated Unified
High
Degree of Integration
Strategy
Current
2011
Diversified Replicated
Low
Low Degree of Standardisation High
Figure 1: Current Operating Model
11 of 68VicRoads Governance Plan Proposal
Current ICT Governance
Degree of Standardization
There is no much replication of operation among VicRoads different departments, as each
department is specialised in a unique area which makes its process also unique to it. This shows
less standardisation of operations.
On the other hand, VicRoads adheres to a set of very strict standards to comply with
governmental requirements. Most of the current ICT operations are aligned with these standards.
This suggests some standardisations of processes among various departments.
Degree of Integration
The fact that VicRoads is operating in only one market area makes it more integrated, as all of its
processes and operations are related. Moreover, VicRoads different departments work with the
same higher goals, they work to serve the same customers to eventually deliver the same services.
Looking from a decision making aspect, VicRoads establishes a number of decision making
committees that involve different departments in the decision making process, thus, making it
more integrated (Refer to Decision Making section form more details).
On the other hand, there are no evidence of good information and data sharing between VicRoads
departments, which indicate less integration.
Overall Operating Model
The overall operating model of VicRoads demonstrates some diversification, with a moderately
high coordination and a relatively low standardisation. The Coordination is basically due to the
unity of the organisation in terms of location and target business goals, customers and services.
The lack of standardisation is due to the diversity of functions of various organisational
departments.
VicRoads previous annual reports reveal an increased standardisation. When compared with
previous reports, current reports indicate much more compliance and enforcement of standards in
VicRoads’s operations as well as improve of internal integration utilising ICT.
12 of 68VicRoads Governance Plan Proposal
Current ICT Governance
Detailed Analysis
Operating
Aspect Evidence & Findings
Model
- The business goals are mostly based on government
C U
regulations and standards
Business goals - VicRoads departments work for the same higher business
D R
goals
- IT strategy is defined with business standards and is
C U integrated with the Strategic Directions
ICT Strategy, Planning &
- IM&T Strategy is developed and maintained by
Management D R representative from different departments (Refer to
decision making section)
Application Development - Applications are developed with integration between
C U
IM&T managers and business departments
& Maintenance
Infrastructure D R
- VicRoads maintain a research and innovation unit which
C U
Research and Innovation operates autonomously far from the organisation strict
D R standards
(e.g. VicRoads Annual Report 2013 – Page: 14)
Systems VicRoads maintains a “standardised IM&T technology
C U
platform and services”
(IM&T Strategy 2012-2014 – Page: 7)
D R Indicates a unified system, which results in coordination
Operating Offices VicRoads have many operating offices in different location
C U
in Victoria
D R These offices are expected to be working with the same
processes and procedures
Table 2: Operating Model Detailed Analysis
3.2.2 Governance Arrangement Matrix
To assess decision making, (Weill & Ross, 2004)’s Arrangement Matrix method is used. VicRoads
ICT decision making is greatly driven by committees in a form mostly similar to federal decision
archetype. Decision is made in three different levels:
2. Strategic Level
At this level most of decisions are made by senior management in the SLT (Strategic Leadership
Team) committee. Decisions related to major ICT investment is also determined in this committee.
Another committee IA&T (Information Access and Technology) Committee comprises with lower
level is also involved to a certain limit.
3. Business Needs Level
At this level most of decision is made by the IA&T committee which basically comprises of
Executive General Manager IM&T and the other executive directors. Most of ICT business needs
are determined here. Minor investment decisions are also made at this level.
13 of 68VicRoads Governance Plan Proposal
Current ICT Governance
4. Projects Priorities and Actions Level
Technical project actions decisions are made at this level by IM&T Managers along with respective
business representatives.
Governance Arrangements Matrix
Business
ICT
ICT Principles ICT Architecture Application ICT Investment
Infrastructure
Archetype Needs
Input Decision Input Decision Input Decision Input Decision Input Decision
Business
Monarchy
IT
EGM EGM
Monarchy
Feudal
Federal IA&T IA&T
IA&T IA&T CSG IA&T
SLT SLT
Duopoly ED
EGM
Anarchy
ED: Executive Director(s) EGM: Executive General Manager IM&T SLT: Strategic Leader Ship Team
CSG: Committee Steering Group IA&T: Information Management & Technology
Table 3: Current Arrangements Matrix
As present in the arrangement matrix above (Table 33), VicRoads relies m on federal committees for
both decision input and decision making. This has pros and cons, it is considered a good practice to
utilize federal committees for decision input, however, it is not a good practice to delegate
decision to these committees (Weill & Ross, 2004).
Decision Making Bodies:
SLT (Strategic Leadership Team)
“It supports the Chief Executive to deliver the Roads Corporation’s functions, as defined under the
Transport Integration Act. Specifically, it sets and adapts VicRoads’ vision, strategic objectives and
priorities, while ensuring that the organisation complies with robust governance processes in
providing effective leadership.”
Comprises of:
Chief Executive ED of Policy and Programs
Chief Financial Officer ED of Corporate Services
Executive Director (ED) of Strategy ED of Commercial Enterprises
and Planning ED of Business Development
14 of 68VicRoads Governance Plan Proposal
Current ICT Governance
IA&T Committee (Information Access and Technology Committee)
It “provides strategic leadership to the organisation in its use and management of information and
investment and management of information technology.”
Comprises of:
ED of Corporate Services
ED of Strategy and Planning
ED of Policy and Programs
Executive General Manager Information Management and Technology
(Next Page)
15 of 68VicRoads Governance Plan Proposal
Current ICT Governance
3.2.3 ICT Governance Design Framework
Enterprise Strategy & Organization ICT Governance Arrangements Business performance Goals
Deliver better service Use Federal to decide on: Engaged communities and
Enhance service delivery and Capability steering group, stakeholders.
stakeholder engagement Enterprise architecture and Robust, reliable and
through optimization and IM&T portfolio management licensing registration and
integration. Strategic leadership Team; licensing services.
Enhance effectiveness and Management Committee; Minimized whole-of-life
efficiency by standardizing Project Revive Committee assets cost.
business processes and Information Management Delivering safer, sustainable,
integrating systems. and Technology Board reliable and efficient road
Improve the management of Information Access and network
road-related assets. Technology Committee Improved access,
Improved governance and Risk Committee & Audit collaboration and
management of corporate Committee information sharing
process Delivering more flexible, fit
for purpose, cost effective
corporate services.
ICT Infrastructure & Desirable ICT Governance Mechanisms ICT Metrics & Accountability
Behaviour Information Management The current strategic plan
Integrated and unified and Technology Board: doesn’t use any metrics to
customer service delivery Comprises most Executive assess the accountability
channel Directors and ensures the
Reduce security risks and governance and strategic
improve authority, accuracy alignment of investment
and availability. decisions.
Develop appropriate IM&T Information Access and
capabilities and Technology Committee: It
technologies. provides strategic leadership
Consolidate and integrate to the organisation in its use
business system, and management of
applications and information and investment
information. and management of
Intergrade Corporate information technology.
Business System platform
Figure 2: Current Governance Design Framework
16 of 68VicRoads Governance Plan Proposal
Current ICT Governance
3.2.4 ICT Governance Policy Framework
The Policy Framework for Information and Technology provides the strategic context for the Policy
on Information Management and the Policy on the Management of Information Technology. It
also takes into consideration the Privacy and Data Protection policy, the Access to Information
policy, and the Policy on Government Security. The ICT Policy Framework provides a strategic
context and guiding principles to sound ICT management practices across government (Treasury
Board of Canada Secretariat 2012). For the current IT strategic plan, there are no clearly
documents showing the information about current ICT Governance Policy Framework. As it
defined above, it is important for the strategic governance to have a framework to guide direction.
Even though the current plan doesn’t have one, but there are still some contents still helpful for
guiding the plan.
Policy and Programs are responsible for:
The translation of the broad strategic directions into priority based investment programs
and projects.
Developing and implementing effective policies to improve the operation of the road
network and delivery of services.
Facilitating consistency, capability development and knowledge sharing in the design,
construction and maintenance of road infrastructure.
Encouraging the use of sustainable transport modes in assisting customers to take
responsibility for making choices in all aspects of using the road network.
3.2.5 ICT Governance Performance Measurement
VicRoads has made a commitment to achieve a Good Governance. This commitment is established
in the document VicRoads Strategic Directions 2012-2014 that provides guidance to the
Information Management and Technology Strategy 2012-2014 (IM&T Strategy 2012-2014). The
VicRoads vision regarding Good Governance is about operates its responsibility in an efficient and
accountable way giving emphasis in delivering its commitments on time and on budget. The
commitments that VicRoads has set have been mentioned above as part of the Business
Performance Goals and are clearly expressed as Key Business Priorities and Outcomes in the IM&T
2012-2014.
These Key Business Priorities and Outcomes are:
1 Customer Service Delivery, Community and Stakeholder Engagement
2 Vehicle Registration and Driver Licensing
3 Road Asset Management
4 Road use Management
5 Personal Productivity and Communication
6 Corporate
17 of 68VicRoads Governance Plan Proposal
Current ICT Governance
Following with the VicRoads´ idea of Good Governance it is mandatory to measure the
performance of the ICT Governance in achieving the proposed key business priorities or business
goals. With this measurement it is possible to verify the degree of accomplishment or deviation
regarding the baseline. Next, there is the result of an analysis performed to the ICT Governance
measures´ proposed against the COBIT´s 5.0 best practices.
Key Business Priority Outcome Result
Customer Service Enhance customer service delivery and Even it is mentioned in their annual
Delivery, stakeholder engagement through report, there is no evidence about the
Community and optimisation and convergence of service integration and consolidation of the
Stakeholder delivery channels and integration and processes and systems on VicRoads
Engagement consolidation of processes and systems. ICT environment.
VicRoads annual report 2011 and 2013
Enhance integration and licensing
were reviewed looking for data to
effectiveness and efficiency by
demonstrate the measurement but
Vehicle Registration standardising business processes,
there was not information regarding
and Driver Licensing integrating systems on modern platform
the Vehicle Registration and Driver
and achieving a sustained shift to online
Licensing project, neither its goals nor
channels.
its objectives.
No information was found regarding
Improve management of road-related
baseline cost, neither the reduction
assets so as to minimise log-term assets
cost objective in terms of quantity or
Road Asset cost, to enable transport and road safety
percentage. There is no data about
Management benefits, to comply with legislative
community expectation such as
obligations and to meet community
surveys satisfaction or indicators giving
expectations.
a mark.
Although it is well know that ICT
infrastructure can provides support for
Ensure efficient, reliable and safe road
efficient and reliable operations to the
system operation with minimal
business, there is no mention which
Road use environmental impacts through the
project or which system or systems
Management applications of technologies and
should be integrated. In addition,
information services which are
there is no measure proposed,
integrated across the transport system.
baseline or target in terms of time,
accessibility or availability.
There is a lack of target of
Enable VicRoads to be effective, efficient
Personal measurement for this Key Business
and satisfied in their work by
Productivity and Priority. However, in an update of the
implementing appropriate business
Communication IT&M 2012-2014 document, it was
enabling technologies and processes.
reported that the Business Intelligence
18 of 68VicRoads Governance Plan Proposal
Current ICT Governance
project is already in production, the
specialized users were trained and
general users are scheduled for
training.
Although the VicRoads´ annual reports
2011 and 2013 mention that the
corporate resources (such as financial
Ensure the effective and efficient
resources) are being effectively and
utilisation and management of
Corporate efficiently utilised, there is no clearly
corporate resources, capabilities and
defined goals or objectives. In
assets.
addition, the baseline is not defined
but it can be inferred from previous
annual reports.
Table 4: Current ICT Governance Performance Measurement
3.2.6 Conclusion current IT Decision Making
According to the analysis performed to the current ICT Governance Decision Making, the highlights
that explain its current situation are outlined:
VicRoads as a whole organization strives to achieve operational excellence.
VicRoads’ Governance Decision Making model has experimented transformation since
2011 (year taken as baseline for analysis purposes) to wards coordination.
The operating model overall is considered to be coordinated-diversified.
VicRoads relies mostly on federal committees for decision making
VicRoads’ Governance Decision Making analysis shows that despite the business units are
integrated through a decision making committees, the information and data sharing needs
to be enhanced.
It is necessary to implement mechanisms, such as SLA´s to enforce VicRoads to get the best
performance of all the projects or initiatives.
19 of 68VicRoads Governance Plan Proposal
Proposed ICT Governance Plan
4 Proposed ICT Governance Plan
4.1 Operational Strategy
4.1.1 Operating Model Enhancement
As seen in the current operating model analysis previously (Refer to Section 3.2.1), VicRoads
currently operates on a Diversified-Coordinated model. To achieve its strategic objective and to
attain operational excellence, an operational strategy is suggested to be adapted; a strategy that
emphasises on operational coordination.
In contrast, VicRoads is not advised to emphasise on standardising its operations. That is because
of the organisational nature of VicRoads of being with few similarly functioning departments, but
with rather diversified functions. Each department should be optimised with the ideal process that
matches its function. However, minor standardisation can be helpful to comply with standards like
risk and safety.
Coordinated Unified
High
Suggested
Degree of Integration
Current
2011
Low
Diversified Replicated
Low Degree of Standardisation High
Figure 3: Proposed Operating Model
20 of 68VicRoads Governance Plan Proposal
Proposed ICT Governance Plan
The current strategy aims more towards a unified model, however, we suggest keeping with the
same improvements rate since 2011 walking with the same direction towards a coordinated-
unified model.
4.1.2 An Enabling Enterprise Architecture
To enable the proposed operating model, an enterprise architecture model based on (Ross, Weill,
& Robertson., 2006) is proposed (Figure 4). The main required processes to enable coordination
are also showed:
Shared Shared Integrating Linked
Customers Data Technology Processes
Business
Processes
Data
Technology
Common
Interface
Common Central
Database Customer
types
Interface
with
customers
Figure 4: Proposed Operating Model Enabling Architecture
The proposed model above (Figure 4) outlines an architecture which emphasises on integration of:
Customers, Data, Technology and Processes, prioritized respectively. Specifically, Customer and
Data integration would be essential for enabling coordinated operations (Ross, Weill, &
Robertson., 2006).
21 of 68VicRoads Governance Plan Proposal
Proposed ICT Governance Plan
4.2 Proposed Governance Arrangement
The current management structure at VicRoads, as described earlier, appears to be appropriate
for the proposed operating model and for the proposed processes. However, some enhancements
still can be applied.
We are proposing two main improvements to the governance structure and decision making
arraignments in VicRoads, to overcome the issues identified earlier in the evaluation and
assessment section.
Two main enhancements proposed: optimising decision making arrangements and forming an
IM&T independent department.
4.2.1 Optimising Decision Making Arrangements
As demonstrated in the assessment and evaluation section, VicRoads greatly relies on committees
for different decision making regarding IT. As there are advantages for that, there are
disadvantages too.
Best practices suggest that decision making should be delegated to Business Monarchy, IT
Monarchy or Duopoly level (Weill & Ross, 2004). To reduce change impact, only required changes
were made on the current arrangements.
Although no much emphasis is put on business monarchy, it is very important to involve senior
management in decision making process. Studies show that the higher the awareness of IT
governance among senior management the better the performance of IT governance (Weill &
Ross, 2004). Therefore, we have considered increasing the involvement of top managers in
decision making committees.
Table 5: Proposed Arrangements
Business
ICT
ICT Principles ICT Architecture Application ICT Investment
Infrastructure
Archetype Needs
Input Decision Input Decision Input Decision Input Decision Input Decision
Business
Monarchy
IT
ED.IM&T ED.IM&T
Monarchy
Feudal
Federal IA&T IA&T
IA&T IA&T CSG
SLT SLT
Duopoly ED ED CE
ED.IM&T ED.IM&T ED.IM&T
Anarchy
ED: Executive Director(s) ED.IM&T: Executive Director IM&T SLT: Strategic Leader Ship Team
CSG: Committee Steering Group IA&T: Information Management & Technology
22 of 68You can also read
