Tài liệu new legacy system using technology to drive performance doc

Executive Summary alfornin's budget crisis has made plain that sazee revenues will put a premiam on managing pulic resources better an ever if far serving its peaple ‘The best management

A New Lecacy System:

Using TecHnoLocy

To Drive PERFORMANCE

Littte Hoover ComMIssION

November 2008

Navesnber 20, 2008 The Honorable Ameld Sehwareenegee

Governor ef California

fad atembers of the Sense °

‘The Honorable Karen Base The Honorable Michael Villines

Speaker of the Amsembiy Assembly Minority Lender

‘The specter of that lobbying scandal and the fear of repeating it have hurt the state's ability to

‘Sate programs and to improve them,

‘Worse it hae reinforced the view - even within the state's leadership - that Califomin “can’t get

IT right” This perception persists despite a string of succesafal projects and recognition by national experts that California is growing asa technology leader

In the past, the state has focused on technotogy projects in isolation The goal must be to use Information to gauge progress, change the course of action when appropriate and improve rogram resulta, Ie must propel Califemia forward as a tational leader in using technology to Improve government

‘The state's on-going fiscal crisis only underscores the urgeney with which Cabfornia must move inthis direction More budget cuts aze likely and absent a clear Was to determine what

fs working Wom what is not, the state is lefe with the blunt tool of across the board cuts shrinking programs that ate producing outeames the state wants a8 Well as programs that fail

fo deliver pertormance

California can teaen from other states, such ae Virginia and Washington, which are using performance dela to drive improved resulta And i can eapltalize on allertaalrendy Underway pockets of many government depariments here in Cablornie, where slate emplovees hese teen the value of sch an approach, Many of them are ready fr the cultural change that wil

be required for deta-dewen performance inprovement They are ready to be led bY policy

Potiey-makers must support and encourage these burgeoning ellorts while al the same time, build the capacity lo make this cllural change possible nol just i= pockets, but Usreuphout

‘The governor and Legisiature hive taken an smportant fire atep in creating cabinet level Office of the Chief Information Officer, Other steps ihust follow California must seize the

‘The Department of Technology Services, now under the State and Consumer Services Agency, shoul be relocated tinder the state CIO, Another group nov located in the agency the Office

of Information Secarity and Privacy Protection, Hkewise should shift some functions to the Ottice ofthe State Chict Information Officer The Ofice of Systems Integration, now located in the Health and Haman Services Agency, should be moved under the state C10 co form the core ofa statewide project management team

‘The state CIO must be given the authority to set statewide funding priorities for technology projects, including oversight of the $6.8 bilion investment the state has underway Arbitious enterprise projects like FiSCal, which will liga the states accourting, financial and procurement systems, must become part ofthe state CIO's portfolio

‘This consolidation of resoucces and authority under the state CIO woul give the Legislatuse a single point of accountability that das not exist cutently it also would improve Consolidating resources aed authority under the state CIO wil enltance eicieney and bolster performance as the state stars its ranslormation lo a performance based culture Greater Sccountebiliy and better commuicication can bulld tenat and confidence the Legislature vl pei in order to bee fll partner in the ellore

‘The Comaission's eeport, A New Legacy System: Using Technology to Drive Performance, makes

he ease that the challenges in slate government require spore than simply upgrading old Negaey" computer systems, The times demand sew appeonches and traditions te delivering publ services and programs by leveraging lechnology to improve outcomes The

Kanab,

Chairman

Leveraging Technology for the

The Commission's Study Process

Table of Sidebars & Charts Oracle ~ What Happened?,

Defining “Enterprise”

California's IT Strategic Plan

Top IT Projects by Cost

Charter Agencies: “Bureaucracy-busting” in towa

Who Are They?

Measurement, Metrics and Leadership

2 4

Executive Summary

alfornin's budget crisis has made plain that sazee revenues will

put a premiam on managing pulic resources better an ever if

far serving its peaple

‘The best management practices rely on sound information technology

systems that can deliver streams of up-to-date data about operations to

ecision-makers, who can set upon them to tap ve programs and

Inthe eight yenrs since the Little Haover Commission fist looked at how

the state hamesses new information technology (17), California hxs made

reat strides in delivering some of these critical information technology

(oola tite managers

California's progress haa been noted, but it is il far behind other states

has been slowed in its attempts to catch up by a cature of feat as well as

a decentralized approach te technology planning that has defied attempts

to capture the full potential of the state's investment information

technology

Ft is time to push past those fears so that state leaders can begio

changing the eultare of government by building the state's technology

‘Today, the sate continues to rely on ite legacy systems ~ expensive,

aging information systems but on fst generation database technologies

ttound “green screen” user interfaces ~to apport many of le programs

land services, In a 2007 report, the stale chiel ‘alormation leer

sunderwry

Due in large part to the efforts of the state's previous chief information officer, who created strategie plan for California information technology, the state's reputation for technological sophistication has impeoved la a few years, California hus gone from the bách ofthe pack:

lo near te font The Center for Digital Government placed California in state's Web site lea has improved dramatically, earning recognition and wards for its exstomer-service features,

But there is world of difference between plans and the states Web presence — the fare it shows to the Interset ~ and the state's eurzent IT Projects that are showing promise and seeess sich a the long twoubled $1.8 bilion child support collection and disbursement system that rolled out in 2008, When finished, these projects will improve overnment operations, from modernizing the payroll and personnel System for California (FSCall, which wil integrate the state business, Another eeucial step forward has heen the elevation of the state chiết information offer (CIO) to eabinettevel status, followed by the recruitment of a nationally recognized leader in 2008 9 aversee the ehuilling efforts Teresa “Ter” Tales, a lorsier ord technology’ executive technology resources into one centralized department with more than

“700 employees, There, it was not a matter of choosing to change! Michigan's shrinking economy forced its state government to reengineey thew it delivered services

reputation as the birthplace t the technolog’ that can harness informasion and process and analyze X with lightning speed Stave government has been slow to integrate the modern information technology syeteme that other states ~ and the federal government — have ved to atrenailie administration, eliminate waste and serve the public more elicently and quickly

AAs the Commission noted in its 2000 study, Botlen Gov: Engineering

‘Technology-Gnhanced Goverment, and repeated in 2008 when it

endorsed the merger of state data centers into the Department of

‘Technology Services, sore consolidation of resources is needed Real

hoi ust be vested in the slate chief information officer to Gish

the job of aligning computer systems across agencies to provide more

senmless exchanges of information, To this end, ‘he Commission

focsised on the governance structare of the state's techiology activites in

this report

Orice the state C1O is empawered to implement policy and cuerdinate

‘The Oracle scandal, centered on a single-source software contrac, cost

California the ability to create the technological environment to make

this possible, Poliey-makers must Know the relationship between co

andl performance, and the only way Uey can have that understanding ie

fe have the righl data in hand to make tuidget decisions and act state

prores, Agni: manege’s oni here: the epprepriate inforntion

Fequited to make program management decisions, The publ ust have

fceess to information about the performance of state programs and

services so it can properly exercise oversight of ts elected

country, but Californin is behind other states ax policy-makers wrestle

‘with decades-old issues of procurement husdles and governance overlap

‘That ia why the Pew Center on the States gave California a C- for its use

of performance data to meke declalona and drive improvement

“This is am aren in whick Calfornin should be the lender instead, states

like Virginia ane Washington are demonstrating the power and simplicity

of reporting performanee dava to the public Silos fall Priorities are

recast Decision-making improves,

California's failure Co embrace Uns approach is not for a lack of data

‘Hrrough this and ther studies, the Commission heard repeatedly from

Aepartment leaders that they are data rie, but information poor They

Inek the abilty to organize and analyze data in away that ean help ther

make better decisions, anticipate tends and react more quickly to

problems Data collected by the state, whether patient claims oF a

inmate's history, often are organized in a Way that makes them easy to

store, though dilfieult to exteact and analyze

“Simply put, we must

‘move from risk that

paralyzes to risk that

motivates.”

Tent “Te Tak

‘What is nected is the leadership and vision to cut across agencies’ vast collections of data, forge connections that span programs, then lik data

to performance goals, question sesults and use the answers to correct

‘The state has tried this appronch in the past, most recent with the performance based budgeting exercices of the 1990s and the California Performance Review of 2008, Those projects may hme been too ambitious, t00 early, Dut they planted roots that are showing azeas of promise today

epartments ani agencies that have developed of are planning internat performance tacking systems to drive improvement, The Business, Transportation and Housing Agency spearheaded a performance fniiative in 2003 that tied together department steategic plans, performance measures and action plans Through the process of tracking andl regularly reviewing performance abjectives, the Department

of Motor Vehicles was able to reduce wait tine in fell offices, reduce renewals,

The Department of Comections ond Rehabilitation launched a performance measurement program in 2008, moueled on the auccessful Equipped with performance data from cach pin, depariment oficils travel to fnciltes «© meet with wardens and discwse how well prison management is meeting the elosey-watehed agency's goals Correesions oficial ered the process with helping guide day-to-day opevations and high-level management decisions

Despite their vast slifering missions, departments such as Soci Services and Toxics Shstances Control are embarking on self generated performance projects ~ encouraging signs that the people within these entities see the value ef such an approach, especially in a cough budget Empowering these enterprising employees to truly ansform government Othersice, these efforts wil languish in isolated! pockets

Repeatedly, the Commission heard the need for a unifying approach to developing high-level goals leking data to periormance, aad tracking the state's progress toward meeting those objectives,

“The arrival of Ms Takai as the state's first cabinet-level chief information

fice offers Califia the opportunity to discuss performance

measurement again and in the contest of real technology reform The

Office of the State Chief Information Officer must steer the acate’s

technology investmente to callect data and provide information that has

can no longer ean en to themselves

“To ensure the state CIO lias the authority and tools to complete this

ambitious task, first step must be providing the state chiet information

otieee with not only the authority, bur the sight Louis co get the job done

The sate must expand the resources available (0 the slate ClO,

including transferring tothe Offic of the State Chief Information Officer

the Department of Technology Services, now located in the State and

Consumer Services Agency, as well as the Office of Systems Integration,

row located in the Health and Human Services Agency These unite

represent project and services expertise that ean be best deployed by the

“The FiSCat project, now the responsibilty af four separate departments

needs a single point of accountability, The project to integrate the state's

business, accounting and procurement systems is important to

Improving operations throughout state government It properly Belongs

tinder the responsibilty of the state ClO, Thi ahi should improve

ccitcal to continue! support for SCs

‘These changes will positon the state to embark on the next step, which

equites nurturing the existing efforts to measure and tack performance

Using data fom operations and expanding such elfors to all parts of

state government ‘The state henefited tremendously from the work ofits

previous slate chie! information olficer Cahfemis% new state CIO has

sion, energy and a proven tack record, To ensure continued

‘momentum across administrations, the state CIO should be given a fe

year tem

‘The Commission's research has shown that sate workers an thet ew

Esue started on the path te pétformance driven government The

Commission was excited by their enterprize and encouraged by their

progress The wale of this new culture is lear to them, bút they need

leadership The governor and Leqislarure can lead by giving the CIO the

appropriate tools and authority and championing the need for

performance-diven government

This cultural change, already underway in other states, is overdue in California, Now, given the budget crisis and dificult outook, these reforms are ensential

Recommendations Recommendation 1: The Legislature must empower the state chief information officer with tools and resources to oversee a generational transformation of information technology in state government

4 Create « Geospatial information Ollie within the OCIO

Take ownership of projets and strengthen the IF workforce

Consolidate the state technology workforce snder the OCIO Fiscal and the 21* Century Project

the Office of Systems Iniegration under the state C10

Appoint the state C10 for atve-year tera

¥ Restructure the state CIO position co serve under a five-vear contract that overlaps gubernstorial administrations The Recommendation 2: State agencies must use public money for technology’ projects responsibly and with transparency in order to rebuild the confidence of the Legislature and the public

© Expand the scope of the Information Technology Council, The state

‘needs @ powerful, but lean, technology board to create accountability for perlormazce

4 Fold the Enterprise Leadership Council and the Technology Services Board into the IT Council, reduce membership for ficiency

¥ Add lgistasive members tothe IF Council Hold regular, open meetings te review the status of large technology projects

|G Post more information online The state CIO must make budgets and

progress reports for technology profects available on a Web site

Recommendation 3: The state must use technology to track, measure and improve performance

Foster and encourage growth of existing performance management

forts Nomerous agencies and departments have implemented ae

tre in the process af developing performance measurement #/atems,

cresting m groundawell of interest and support for this data-driven

Y Reesishlish the technology innovation fund Lawmakers

rgercented IT budget to be used aa seed money to support this

it,

hold regular public meetings with agency heads to evaluate data

on state goals, devise action plans and follow up on previous

improvement efforts

Establish a Performance Measurement Forum, To build on

existing efforts, an outside party from the academic or ao-prott

sector should coordinate regular meetings with practitioners of

Background

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‘eu a neon campos sono els

There was no question sbout the nee for the ne system:

+ California's child support enforcement ellort was considered ene

of the poorest programas in the country, ranking 49! amiong the

50 states in 2005 in terms of cost eflectivenens for the state's

child support collections, The state collected $2.15 for every

dolla spent, les than hal he national average of $4.58."

+ California was the next-to-Inst state to obtain feral cetfention

Tor the state's child support automated system: only South

Carolina remains ot of compliance?

+ The state had accrued almost $1.2 billion in federal penalties

because of delays, including two Failed attempts in eight years."

Despite these setbacks, some now say the development of the states

fs 9 breakthrouph, not only for itm succes, but beeaune it bucked the

Perception of a state government riddled with abandoned and filed

technology projects, Given the high profile of the child support project

land its uncertain saccess dusing various turns ofits development, many

overlooked California's other technology improvements Over the past

four years, California state government fas implemented more than 90

success! technology projects.” Now, more than one million low-income

households can sccess government (oad and cash benelitn through

‘automatic teller machines Teachers can apply for and renew credentials

‘online, eliminating a backlog that had persisted for years Electronic

improvemeats for fingeeprating have apecied the hiring of prison health

See Appendix E,

Oracle ~ What Happened?

2001, the state Deportent of nfrmation

Technolog became brad ir canter over

Siero contac that woul have locked ate

‘agencies ito purchasing software fom Oracle

Crm, the Redwood Shores, Calo, database

ebolcgy giaL TheSule Auiior cencuded thơ

-3wamdng nÍa $85 mon, seleaowcs contactø

‘race was overpced and the sate of checks

and balances wed to prove age technology

projets bad nck been followed clove, became

2 ollblown mdia sandal that elo nto

‘race's campaign contbutons, egative

Iti a Attomey Gener’ proband op

It im the technology failures, however, that have taleen oot in the folklore of California's IT caltare, For moss, the exact details are long forgotten about the Department of Motor Veices’ failed database upgrade from the 19808 or Oracle's no-bid software conteact in

2001 Bue the stigma remains ~ Une loss of texpayer services from abandoned technology projects and

ft jn too hard of [Chat large-scale echilogy projects) cant be done, It tend te be an albatreaa ale and

transformation in recent years at the DMV, which has used online strategies to reihice wait times at eld offices It overlooks as wel the fact that Oracle still supplies the state with $20 million worth of software

‘each your thal agencies Sind valuable to meet their needs Because of the perciption, the accnsional failures stil gain outsized

Consider this March 2008 headline from the Sacramento See editorial pages: Another software Resco costs us millions.” The coluran deserved

‘ Califoraia Departatent of Transportation plan Uo automate the way it rants permits fo truckers carrying oversized loads on sinte roads and highways ARer spending, more shan seven years ane SIO milion — a midsized projec for state government — the state cut its losses and

‘canceled the project in December 2007.)

‘The Bee wrote: “The Caltrans debacle thus became the latest in ä long snd puzling line of computer contract failures in California government Although the state is home to Silican Valley, the center of innevRden im

dollars on projects that were i-designed or mismanaged oF simply

collapsed under the weight of their ewn complexity.”

This iste, toa point The handful of cosy IT falluves are memorable,

‘The Caltrans track permit system represents only the second sechnnlogy

project the sate has abandoned in more than five years, of more thaa

100 under construction," The other failure aceuered in Noventber 2006,

when the tate canceled the California Developmental Disabilities

Information System (CADDIS) project, intended to inprove the tacking

af Developmental Services had invested more than $10 milion in the

systent over six years, but an auldiional $90-850 million would have

been needed to rusn the peajet around

White the loon of trapaycr dalazs and dclaÿ in nendng program needa is

management decision to avoid eacalating costs of projects likely neaded

tosvard failure, according 0 the state C10," The state, however, does not

et credit for wisely abandoning flawed techoology projects

‘The state's failure rates for techolegy projects are lower than the

percent of projects challenged and 18 percent filed.”

‘When it comes to the perception of Califernis state government, the high

profile of individual project failures have drowned out the state's overall

experience in implementing saccessul technology project”

Sach is the vieiows circle, whieh has given rise to an onerous review

process that, combined with fear of another scandal, stunts innovation,

according t0 Ms, Takai, “People are petiied of doing (T projects,” Ns

Takai told the Commission, “ies become a self-fulllling prophecy thar

large projects wil fa

State managers and legsiators sre suck, Though they eare ite for the

statue qua, they ace wary of embarking on needed technology projects to

improve government performance

Repercussions from the Oracle contract continue to haunt Sacramento

In conversations with Comiiasion stall, ataleholders inside und outside

Ín his research, Richard Callahan, of the University of Southern California School of Potiey, Planning and Development, studied the management of tchadlogy in state governatent and found that Oracle Huế a chiling effect on the state's ability and willingness to purchase new technology systems In interviews with department technology Moreover, hi said, the review and oversight system putin place afer

2002 wold not have prevented the Oraele del rom happening, even as

se blocks good projects fom moving forward today “It's the worst of bot worlds," Professor Callahan said

the cost of installing a near system, ax ih the case of the Defining “Enterprise” Department of Health Cate Services’ efforts to replace ite

ra 1678 medical management information system At the

TH hài Department of Social Services, despite federal mandates — -ynemym or eganlzaion, bạ i ao 8

‘compete burewonl used to describe land more than 1 bilion dollars in penalties che sate tole bonis crs, process and yenrn to develop cm chi support collecions and profesions Inthist anions lsused | Gibursement system Ie ix no surprise then, that the

Ina broad verso mfer to isues that eat Legislature Tacks eontidence ro invest in FI8Cal, a promising across tiple onpanizations statewide accounting system chat will ake $1.6 billion and Assuch,entepre architecture fer to | more that decade to implement

Somathingbrnder than jus

Tnwelge adicuslon an claffedim of

bềineoe poeecee sadpacese sao, TÉ@ Pendulum Swings

rogues nef bah and bases

epee Eup architect a ‘The Commission has long called on state policy-makers to lunntoratrwrlilnkvnd lffnEtl° | create strong statewide leadership to effectively develop and soe cra alos proces vied deploy technology projects and make California a leader in

The tí e elng Jn: te nfomdlon | using technology to improve government, In ts 2000 repor

Stes, toh FSC, the Sate Botendov: Engineering Technelogy-Srhanced Government, Centar, Taso, parent the Commission noted that it has been dificult to hold the Finance and Deparment of GaneralSenices | tate chief information officer necountaile given that the

wl ite the tte’ buds Postion lacked the authority ar politcal support to forge Thợ ng vn n7: 1 sludong, The Commission made several recommendations

TH na, | jn 2000, 2004 and again in 2005, to empower the state CIO Anh FC, spun acres depanmentsand | (0 lead the charge! Proposals to formally consolidate xi2 conrnin Tanctons and dia needs | authority i the state C10 languished

inbomatorOtes Emsam” | of Information Technology, leaving the state without a ‘eteesiessnebeiestarms Asian’ | contal technlogy planing age

Oracle scandal, the Legislature shut down the Department

The state C10 position

remained ~ as a figurehead

What happened nest was something like @ system reboot In May 2002,

Governor Davis appointed J Clark Kelso, a professor at the University of

the Pociie’s MeCeorge Schoot of Law, as the state's chit information

otieer Me Kelso had bude @ reputation as a government cit expert

sles stepping in to oversee troubled stale agencies forthe last 16 yeara

together"

Operating with a shoestring budget, small stalf and ite formal

authority, Me Kelso adopted a collaborative approach to working with

rechnology leaders in state government to develop a new IP strategie plas

“To ink common functions and data needs across agencies, the Otfce of

the ‘State Chief Information Officer also unveiled an Enterprise

Architecture frameworle ia January 2008 to provide “a coherent

California's 17 Strategic Plan Goal 1: Make government services more accessible

Objectives: Develop a foundation fr transforming goverment, Leverage services between sate federal and local

.gaMentment and promate interagency aed fnlerginemmental dita shang, Leverage and secure the ses GS suet

Supper Saleide efor to develop brah I soktions and promote health information exchange Suppor atewsde

‘lo to expand broadband acess and wegen alto,

Goal 2: Implement common business applications and systems to improve efficiency and costeffectivenes, Objectives: Develop an integrated administrative and financial managrmen syste forall agencies nd the Legislature Establish execute govemuance for projects ih signiicant statewide implications Create coherent sale process for

secs, management and prmervation of dita mater

Goal 3: Easure state information assets are secured and privacy protected

Objectives: Adopt autewide secusy and privacy protection tandands, Aves and nite secu Hibs Develop a

spvernance structure for secant,

Goal 4 Lower costs and improve the security reliability and performance of the state's IT infrastructure

Objectives: Adopt satewide enterprise architects, Consolidate technology infin wervces, Medemize legacy syaterm Pusu ener procurement Ensure IT disaster recovery plan, processes and conti

stppon continu of govenmental veces Sandarize ate document management ster

Strengthen our technology workforce

Objectives: Loud succession and workforce planning Expand recrting fot for tecinologyprotesions Medemize the casifcation structure and election tols and mthnds Provide proessonal development fortatnolay

Goal 5:

Goal 6: Better align enterprise business planning with techaology governance

Objectives Establish layered tochoogy govemance srtur, Improve alignment of echnology Rovemance with

busines planning Implement pevormance measures,

ey See Pan — a 205 an

structure, disciplined approach and attitude to technology development

‘and deployment."* (One irony of the Oracle episode is thatthe software

in question was designed to coordinate cad Kak infermation across state agencies

‘oversight agency with a cabinet level chief information officer, an iden schoed by the Commission in several reports That enabled the state to atract & nationally recognized expert as his replacement, former Michigan C10 Teresa “Tee? Tea 3

Through these eifarts, Mr Kelso exrned! witesprend praise for patting the state ona path ¢0 rebuild its technology environment In its biennist ssirsey of wate level technology performance and structure, the Center for Digital Government ranked California ae the filth most tech-savvy state in 2008, a considerable jump from the state's 2004 ranking neat the bottom.” A Brookings Institution tecknology study of government from 47° in 2008.7

‘The state has clearly improved its front door on the Internet, making state operations more welcoming for Web users and garnering attention fiom outsiders, but when it comes to using technology to impeove the sctunl act of runing and improving governaent programs, the state has far to no

In another 2008 survey, for example, the Pew Center on the States gave California nn embarrassing C+ for ite Ingging tse of data nnd information

to drive management and budget decisions.»

True lechaology success i greater thas! an easy-to-navigate state Wels tinder development ~ an amount equal t0 the biidget of a large state department or as much as the state spends annually onthe University of California and California State University systema combined

Top 17 Projects by Cost

California Child Support Automated System — Child Support Enforcement | Franchise Tax

This project will develop asinglesaene system orchid support Length | Bear, Child | $1,503,53,875

nancial information Stem for Calforia 8a This pujectwilreplaw® | Fiance,

the Ma uging and non inte fanca systeme wih a single comtelle, | gy sso sas4 Comprehensive fea apotcion supporting the state's cal ne potey | Genera Services, | $1-620052.518 ecition processes Leth of projet 11.8 ye, Truy

Strategic Otfender Management System This rjc will ple or terate

almost exiting manual or automated offender management »)ters snd

pride one sourre for eile and instant data to COCR salt, Length of

Ppjeet 57 vo

Coneetons and Rehabilitation saie27¢s18

le-Home Supportive Services Case Nanagerent Information and Payroling Stem Thi project wl handle cave management and payrlln sence or

‘aregier proving nchome supportive services for quali aged, bind and

CConsfdated tnormation Technology Infrastructure Program This pect

will expand the CDCR data communeations network, increave network

bandh ad replace ld computer edna, Leng of project 19 ys,

Interim Statewide Automated Wellare Sytem (SAWS) Migration Proje sll

caweolidit the automated walle stems of 25 cates aa the SAWS,

Lena of prot: 3.5 yrs,

Contions and ehabition Soci Sevces

Child Weltae Services / Case Management System Nev Sytem Project ill

replace the old CWSIEMS system, with a nee system to meatal deal

Fetements Leth of projet 73 yer

Human Resources Management System (21! Century Projet This prot

will replace the state's employes strane pyr syste, contmiler | $179,671,658 ent of project: 5.2 yas

Mannging the state's growing technology portfolio - and positioning the technology to improve government performance ~ continues to pose challenges, all che more so given the sising aumber of projects underway The atate hea experimented with a number of governance siedels aver

te past three decades, but none has proves to be ax ellective, long term solution, according to the Legislative Analyst's Office and other experts The failure to estabih a coherent an effective IT governance structire continues to place the state at rink of not completing technology projects

‘time and on budget, the Legislative Analyst's Office said.»

The atete is continuing ta recover Grom ite post-Oracte stusables, but in

2000, when the Commission first studied the subject, While policy standing still when ít could have been re-engineering goveroment

‘operations Other states have surpassed California ia thei use of data

Wd technology to drive improvement in public services and internal

all bat 14 states in using technology to track and measure performance

to inprove budgeting and management decisions Michigan, Missouri, Utah, Virginia and Washington have taken the lead in using data and fnformation to drive budget decisions ~ with the technologies developed herein California, Teva, Georgia, lown and Louisiana all da better.” California's lack of progress is not from lack of review, During the study process, the Commission heard feom experts with deep expesience in California state government who described the increasing layers of

‘oversight and approval required to implement technology projects — ceretions that developed over the years in response to decades af crises

How Many Layers Are There?

The latest configuration uses multiple organizations, at times overlapping, to oversee the state's technology portolio,

With the state CIO olice now in place, information technology decisions Officer and a nsmber of key agencies and oversight boards

The Offce of the State Chief Information Officer sets policies and the strategie vision for state technology elfots The ollie shares statutory

authority for project approval and oversight with the Department of

Finance

Under the State and Consumer Services Ageney

+ The Department of General Scivices is responsible for al

techuslogy procurement activities conducted by state agencies."

+ The Department of Technology Services operates the State Data

Center anid manages technology operations for departmental

technology and networking systems

+ The Office of Information Security and Privacy Protection sets

Information security standards for state technology projets and

Separately, each cabinetevel agency also provides leadership,

‘coordination and oversight of technology activities and procurements

Within its jurisdition Each department manages its own technology

development and gperadons.””

Because ofthe state’ sizeable investment in technology, the Department

projects The Department of Finance approves project funding and is

Fesponsible for project approval and oversight with the state chief

information office." The Information Technology Consulting Unit

TCU), « tve-person teaen which operntes within tke Department of

Finance, ie responsible for analyzing use fiscal elles of proposed

“The department's historic involvement with technology oversight began

oficial in 1983 with the eration of the Office of Information Technology

(om

The OIF was given the responsibilty to develop statewide technology

Immense task, considering the complexity of the issses and the size of

‘tate operations The OIT came wnder shasp criticism for failing to

adequately perform these responsibilities after 2 pumber of costly project,

failures, most notably a computer modernization project for the

Departament of Motor Vehicles that tegen in 1988.*' By 1094, ater the

DMV’ had spent $85 million, hađ ne major components in place and

Following the DMV failure, investigations by the Bureau of State Audits,

the LegidladVe Analyst's Office and the Task Force on Government

‘Technology, Poliey and Procurement, prompted legislative hearings and

fan elfor to create @ new technology department thet could provide more

‘ellectve leadership and oversight fr the state's technology program." lnwoduced in 1904, Senate Bll 1 (Alguist) proposed to consolidate the management of all information echrology projects into a single state

‘oversight and the administration of state data centers and networks

‘The bill called for a cabinet-level secretary of information services to oversee a new Information Services Agency Sta Would be pooled from the technology oversight unit in the Department of Finance and the personnel involved with IT aquisition ia the Department of General

‘would unnecessarily add to the sice of sinie government and would interfere with the ability of the executive branch to manage state government programs."

The legslaion was scaled buck to include œ new, but limited, Department of Information Technology (DOM) that would develop financial authority 9 approve technology projects in a new Technology Investment and Review Unit (TIRU), DOIT's responsibilities were to be managing the acquisition and appropriate use of technology in state fegencies, coordinating between various federal, tute and local government slakeholders as well as private industry, and ensuring that Vision and goals DOFT also had direst oversight authority t9 review,

‘change or veto agencies technology projects as it eemed necessary, The Legislature approved the bill in October 1998,"

A RAND report for the Buseaut of State Audits later found his

‘rangement to be poorly dened: “DOIP became primarily » subber samp’ department, while the Department of Finance made the Sinal cisions about IT project approval.” Agencies that sosght approval from the two entities save the roles as overlapping, which fede ambiguity and can imbalance of power that eroded trust and confidence in both DOIT

và the Department of Finance.”

DOIT would be short lived Just as it took an IT disaster to create the

Department of information Technology, it took another ~ abet a lobbying

fone, not a technology one ~to shut it down,

In this post Oracle atmosphere the Legislature allowed che atatute

July 1, 2002 Dissolving the agency left the seate without an

organization te coordinaue technology initiatives, The department's

responsibilities fell to other departments The Department of Finance

became the sole gatekeeper for new techsology funding through its

OHHee of Technology Review, Oversight and Security (OTROS,

wwoali continue to appoint a stale chief information officer, whe

essentially became an advocate responsible for strategic planning and

leadership over the state's technology policy, though the positon lacked

any formal auchority.*

fn the absence of DOT, the Department of Finance ereated a more

‘on cost, length of implementation and experience of project managers,

Individual departments were allowed to develop their own, potentially

surcter, guidelines for smaller purchases." Project lability began

sting toward private vendors through rigid “terms and conditions” for

Mlepactments that, together, often reduced competition and edt large

projects recchững only one bid.” Missing was an overall stragy for

technology and a way to link technology projects to a streamlined action

plan

The new process left vendors and tate IT managers Srustated

Lawmakers, t00, grew frasteated, and the pendulim began swinging

toward a less restrictive approach In 2005, SB 954 (Figueroa)

established a ‘solitions based” methodology for the Department of

General Services to use on its technology projects Valued at more thes

85 milion (about 20 projeets a year) to promote greater coaipetition and

innovation among vendors The methodology enteila working with the

‘th along list f technical requirements Te allows interactive exchanges

Dpermeen the state and bidders to negotiate the contract, Ia 2007, AB 017

(Torrico) replaced the rigid requitements in the Public Contract Code

including the eequirement of at least a 0 percent performance bond in

certain technology contenets, with a more exible program of rile

Cartes Anesies! This is an area that will bear further monitoring to

“Bureaucracy-busting” in lowa censure current progress maintains its momensum For

this study, the Consavission focused its attention on the Based on the assumption hat agencicn willbe | ay cahinet-lavel Office ofthe State Chief Information ale to produce ete tonnes frei :

uot nd operating lexi, one in 2008 | governance structure of state information technology inilted on experiment in govemanee, Invetum | activities

fora reprieve frm buewucatic requires

the laws experiment encourted goverment

gencle lo ft hơn locke m mm and

procndurclo sec on

Opportunities to Leverage Technology

‘ie agociesvolatoune to proce mesunle | THE organizational steucture has created a dizzying web ` the milicn somaly In savings oe addon ‘aste's overall technology program and kept Caifornia revere o esate ta hep ove lawa's budget | from moving forward

fap Inexchang the agencies guinea number

of Bec leu With a new, cabinettevel state C10, California has ai + Authority to waiveadminirative rules | opening to make a fresh start, But the window of lnpenomel,genenl sevctsandT | Gpportunity i limited, Unless reappointed by a new + Authoctyto tain picts fom asset governor, Ma ‘Takata national Tender ith the les, 80 percent of row revenues lemonstrated ability '9 use technology £0 re-enzincer

‘tte an half fr Yearend the business of state government, aw the remaining

salle tee two years of Goveiner Schwarzenegger's term và 1+ Exemption ftom il ti equivalent smployes cape and fom Satter, continue building on the work of Me Kelso

serosa are bln om Ma Tokai rings wih her the experience of functioning + Access to technical astance at 90 within an IT governance structure thạt cent cdane Tom experts on incnation and | nghedệy

umber of eligible lowans venting ocd ad coordinated effort in California to effectively manage the state's technology portfolio and restore the

hun bene by 44 percent The confidence ofthe Legislature and public

Deparment of Corectonsncrased thợ nanber

of probatoners who suecsstllycompletthelr | AL present, state poliey-makers lack the tools weed in probation pei by 17 percent The Bepartimt of Natural Resoutes reduce ther slates that measure program performance and turmacund tine for ir quailty cơnar<inn

ets frm 62 to 6 days and eliminated

Fottlog of 00 in siete Aaditensy the policy-makers can add transparency and meaning to

"hrter agence acd §22 iin in Aiicute budger choices

"Svingvievenun contibuaons —excaing thie

tang by cone 80 penxat

tpside decisions about balancing the state budget By leveraging tectmology to track program performance,

fiche ona greta, pcs be 2,

“This is an area where Califrnin can benefit from others having gone

fest

State agencies ia lowa; for exemple, eepert performance information ‘end

post thee reports alongside sates plans on the Web, Agencies provide

Performance measures in their budget justifications, which compare

Past, present and future performance, The performance levels illustrate

how diferent levels of funding would inerease or decrease related

performance measuses: moreover, agencies are sequited to commit to

Achieving furase expected pesformance levels

Aetermine appropristion leveis, ‘The Legislative Dudyrt Hoan imatrucie

‘agencies to include “clear targets for specific action and the quantified

‘results or impacts ofthat action” in their budget requests, As part ofthe

performance culture in Texas, state managers use performance reports

Virginia offers one of the mow instructive examples of how technology

‘ies into performance management

Virginia launched a reform effor in 2009 called the Council on Virginia's

Future, chaired by the governor and comprised of the govern

secreiary of technology and ether cabinet members, representatives from

Js charged with long-term planning, establishing policy procties and

Aeveloping a performance leadership and accountability system,

Information technology forms the foundation of this ongoing effort The

commonwealth formed a 10-year, $2 billon partnership wit Northrop

computer systems to operate on common platforms The move enabled

Virginia to wer 21° century buisness intelligence software, conaect more

than 200 disparate reporting systems and exchange data ~ all with the

broader goal of wacking the performance of agencies against the

priorities established by the Couneil on Viegnia’s Future

A -Wieginin Performa” Web site provides the public with access to the

performance information foreach state agency Data is available for the

Ihnseine performance level, targeted performance level and historical

performance treads, The information is incorporated into the budget

process to drive funding decisions, with the governor meeting cegulerly

lth agency heads to disease the performance measures and Use best

“We facilitated the technical environment to make that happen,” Aneesh Chopra, Virginia's secretary of technology, told the Commission, He said

‘the approach toward performance measurement would not have been possible without dhe commonwealth taking on the sizeable and costly challenge of replacing is outdated computer infrastructure wit 4 more cohesive aster able 0 operate madern applications

Major projects ace underway in Califia to modernize the state's aging computer systeins and standardize the state's business management sjstems The money and complexity involved inthe project, as well as 3 snow governance structure putin place to oversee ths flort, will est dhe

le testimony, Mo Takai told the Commission that California has reacted

to the multbiliondollar challenge of upgrading its technology infrastructure aevoss the state by adding lavers of everlapping oversight, Overnight ix necestary, she said, but the tate needa to aclenowledge that

‘This approach has left California staging, while other states, having developed ways to better manage risk, move forward

‘Simply put, we must move from risk that paralyses to risk that

Pieces Not Integrated

While much progress has been made to rebuild the technology

environment ia stale government, the Commission found that chalengee

remain ia coordinating and mobilizing Colilornia’s technology proprazt

budget and management decisions

Since the promotion of the state chief information officer to cabinet tevel

stamus, Ube olice has grown to a small staf of about 30 people, most of

whom review requests (rom depariments for technology funding While

the olfice has the power to green-light good projects ~ and to ap bad

Information office to coreet or guide troubled projects, or evento get in

early and help at the planning stage 9 thae mistakes ean be avided

Resources of infrastruccure and experienced stall are sealtered over state

government, limiting ellective oversight and reducing the chance for

creating elicencies through better coordination Three separate butt

overlapping statewide technology commissions offer limited guidance,

but this situation is exacerbated by the lack of a centralized authority

with real lout ~ to manage the state's technology efforts The state CIO

cannot fuly work with departments to re-engineer operations, share

techdologies and trulỹ transform the way government serves people

feliance on more costly outside conteactors The difused authority and

esponsibility can semult in poor public outcomes and missed

opportunities to shose applications, shave data and consolidate smiles

busines lunetions”” Unaligned technology projects and fragmented

In 2007, the California State Auditor identiied the management of the

state's information technology systems as a high-risk issue because of

the alate’s large investibent and weed to keep pace with technological

changes “Without alzong statewide oversight and a clear vision of ita IT

needa the atnte ix of rik for ineffective nơ ieapraper FT investment nnd

fuse the State Auditor concluded

Successful technology projects can breake theough on a case-by-case basis, The potential fora statewide technology solition, however, cannot

be achieved heeause the organizational problems have nat been sesolved, Por exaniple

+ The state lacks a single point of authority to manage long ter anu costly enterprise-wide inttives that encompass all executive branch and constitutional offices, sanh aa the Financial Information Systems for Clifernin (FSCal] project

+ The Department of Technology Services, formed by the merger af Anomaly placed tinder the State and Consumer Services Agency because the formal CIO offce had yet to be teestablished

+ The state chief information officer docs net supervise the 130 Aeparumenclevel C108 © help guide and coordinate projects across department boundaries

analyzes safeguards needed for technology projects, among other

‘duties, also is positioned within the State and Consumer Services Agency It was established in January 2008 end falls outside of the state C1O% purview — a division of Iabor that eam add

‘The FiSCal project offers a good example of the type of costly technolony

ME thất is chected for its potential t reshape government but Durdened by the fear that ie could fai,

To its backers implementing the FiSCal project is a ertical step coward understanding and analyzing how the state spends sts money ~ "the lst best hope to ever come to grips with this bookkeeping aightmare.”"

‘The project combines dozens of disparate and unconnected financiat systems that were developed in isolation decades ago by state agencies

1 is designed to serve aa a central nervets system thet will store financial and operational statistics allowing state managers to make real informed, fact-based! financial management decisions about biadgeting, [accotnting, procurement and asset management

‘The project also will take 12 years to complete under ts 2020 timetable

‘which haa raised concern among lawmakers

‘This tension was evident during @ June 2008 exchange at the State

Capitol Ata budget committee hearing, lawmakers were reviewing the

annual spending request for Fi$Cal and were caught off guard by a

change ia the projeet of which they had not bees ielormed The lack of

clarity sparked! concerns about the project itself snd the way iC was being

“This project has such a ong life that i absolutely dees accotintabiity”

fone legislator said Another legislator, recalling other longtema

technology projects that faltered in the past decede, remarked, “I think

you have to get to a poine where you have one person in charge whose

leginators are wary shen i comes to supporting costly technology

projects Though they established the state chiet information officer as a

fabinet-level posiion, recognizing the importence of a single point of

contact to oversee the state's technology program, they have not to date

fiven the slate chief information efficer the authority and resnureea to

coordinate and mange technology projects

In the case of FI8Cal, Inwmakers demanded something that shoud be

relatively easy to provide: beter communication, The projec, however, i=

governed equally by four agencies - the Departinent af Einanee,the state

controller, the slate tzeasurer and the Department of General Services

program

“The lack of focused, high-Level leadership with experience in such

projects contributes fo the Legislature's concern There is mo single

hepato throttle

Criteria for Good Governance

Studies by outside IF governance experts have spelled out the required

components for success

The Deloitte Touche Tohmatan consulting firm baerved that public

agencies rely on technology more than ever to masimize te value of

fovernment ~ to make government more ecient, tsefal, responsive and

Accessible According #9 Deloitte, a government CIO plays an

Increasingly important role as a business leader, much more than the old

role of a technology steward who operated data centers To that end

Deloite asserted that state ClOs need full and unwavering support to

execute technology decisions across agencies

“Asking a C10 to transiorm an organization and drive innovation without the necessary authority oF resources is a recipe for disaster.”

Delete Tous Teh lting tre

A key component involves the financial authority af the C10 %0 refocus IF ollars, according to Deloitte A sarge of technology spending in the 1000s when the economy was booming led ro uncoordinated and bloated Technology iafrastructuces, superfluous systems and applications misaligned resources and huge [T support stalls, Deloitte said The C10 technology projects achieve the organization's gon

‘The Center for Digital Government, an independent group that studies state technology performance, alse found that slate ClOs need budget suthority, among other tools, lo remain successful”

‘The Pew Center on the States defined success ns deploying technology to measure the effectiveness of state programs, make budget and other

management decisions ond communicate with one Key Characteristics of a CIO santher and the public

The Center for Digtal Goverment cits the

olosing ay characteristics of song

>temirastroih Pew used the following standards to grade state I programs: strategie direction, budgeting for performance, managing for performance, performance suditing and

2 pe mieten ee: commision, board or count evaluation, and online services and information,

proides comprehensive policy

nen l0 sĩ bạo hả! | The A-rated states (Michigen, Missouri, Utah, Viewinia

fk pinch onanenleriebaae, | and Washington) use technology to engage the public,

J thectasClohesttenriopatey | veamtine business processes and improve the quali No) Sun or And BdBy øF the fermaadion spon which state leaders conjunction ith the boar rely to make policy and proyram decisions, Tracking and Giese Ab banner feporting performance data to inform budget decisions

na stood out as a univing strsteny across the successful

4 Thestate ‘expenses or computing Se C10 has operational 006 564000108 Pe

nhu tiene | California received a C+ from Rew because of the Ine of technology agency A statewide system for reporting or tracing performance

9 isa Go bas CGS dara The state's budget, for example is based on a

Cự mo nu terheclogy | line-byline review ofthe previous years operating costa project manager sad does not address peslormance or productivity Once

2 Wie usc nani program isin the baseline budget, ix seMom revisited Inlcration technology get tones ifs in meeting expectations orf til eli

entayze i

“The state CIO still lacks organizational contol oxer the mates technology

assets, including personnel, the states data and networking

infrastructure, or enough budgetary authority to execute projects John

Thomas Fiyan, who served as California's state CIO ia the 1990s, told

the Commission that the arrangement “sets the stage for confusion

confrontation, « continued lack of strategic coordination and makes real

feform that mich more ott of reach."

Fragmented Systems

The state's fragmented governance arrangement is manifested in its

fragmented technology program Calflora stale government consats of,

affce Despite the overlain oversight groups comdinating IT acti

cross agency lies ~ permitting information tobe shared by ianages,

Pollyakers, dhe Legislature and the public is Wotan easy tsk and

Happens only rarely given the ceent obstacles

split among eight large data systems, and that oplyineldes text scores

and atcendance records Understanding the success of educational

programs would require reviewing data from employment juvenile

[stice, corrections, health and socal services agencies No one entity is

‘thorized to extricate that brendkh of information

Signed hy the governor in September 2008, SH 1298 |Simitian) begins to

address the issue by requiting the state CIO to design procedures for

sharing education data across agencis.”*

While ic took an act af che Legislature co break down organizational silos

around education data, the state lacks the abil) to quickly mateh and

fnnlyee performance information across departments tram ilfrent

programs that serve the same populations, whether mental health

services and substance abuse treatment, or the relationship between

where women offenders serve their sentences and their demand for foster

The abiley ta conduct higher level analyses of state functions sing data

Assessment ofthe state's I capabilites in » 2007 anil report

0

+ Departments have substantia} inconsistencies among databases that ack procurement activity

+The state controler has difficulty closing the state's books in a timely manner at year's end

+ The Department of Finance has an opagiie budget aystem that ix fan aenalgam of digital and paper systems held together only by Vite af dedicated process experts

+ Departments that manage bilians of donee in payments to local foverninent have dificalty tracking and accounting for those payments

+ The state maintains multiple accounting systems that frustrate accountability and transparency.”

‘The state's challenge is compounded by the fact that many of ks computer systems are 30 years old, do not have te flexibility or power af moder systems and are dificult r9 maintain.” "Many of these systems

‘wire ncchibeted hrewdl green‘Sereen? usr iterates ad wet i

‘computer langueges that are viewed by today’s technologists as archaic,” then state C10 Kelso noted,”

The issue of the state's aging IP infrastructure ww further highlighted

‘minimum wage to help the state's cash flow State Controller John Chiang, who oversees the state's payroll system, said a pay cut would take mouths te implement and even longer to correct because of the reliance on antiquated software based on a 1970¢era COBOL payroll mysters hasten of thousands of tines of code that would need to bbe changed manually for each employee Efforts to upgrade the state's payroll and personne! system have mushroomed into what bas become the S180 milion “219 Century Project"

Technology Operations Not Aligned

te priori project sen stewie lel Individual egenies compete for ncvidual technology prefect through «piecemeal approach tht hea

produced overlap and duplication."

The heat place to address these antes is ut che planning and budgeting stages But it ie not happening in California

20

Under the Tatest governance configuration, the process required to

Initiate or make substantive changes to individual technology projects

primarily involves the Department of Faiance aad the Otfice of the Chie!

Information Officer Essentially, tke state ClO shares the authority

With Department of Finance to approve solid projects and co stop

handles procurement acti

Witnesses told the Commission that the state toak « step backward when

it created the cabinet level CIO but allowed the Depareatent of Finance to

Felni oversight for ineividual IP projects chrough ste Information

‘Technology Consulting Unit (TCU Me Flynn, the state CIO in the

1990s, told the Commission that the same dynamic existed i earlier

versions of Department of Finance technology oversight sits, the

‘Technology Investment Review Unit (TIRU] and the Oice of Technology

Review, Oversight and Security (OTROS!

‘The Legislative Anaiys's Oi also questioned the arrangement and lad

‘out a scenario in which the atae CIO could approve a project based oo

sound management practices only to have the project denied or shrunk

by the Department of Finance The LAO noted this arrangement

(DOM, “DOIT's role became diminished beenuse i did not have the

Financial clout to suppore its decisions.” she LAO said

“The LAO, however, secommended that the Departinent of Finance retain

the role of aversneing individual technology projecta to allow the ClO to

foes on stzatepie planning rather than the nuts and bolls of detsiled

reviews, The LAO raised concerns that the CIO's advocacy for projets

«onl limit it ability to provide an independent perspective,

‘The Department af Finaace hes argued that its review helps departments

develop eflective technology initiatives and compete for scarce hinding™

Departient oleate sid the role of the ITCU is fundamentally ilerent

than those of previous aversight teams, and without the resources to

match the scape of work those ofices once performed, ‘The ITCU's role

currently 1s lipited to reviewing funding issues in order to erat the

state's budget They said that the Department of Finance works

cooperatively With the Office ofthe State Chief Information Officer and, ia

(act, defers to the C1O' decisions about prefect approval

a

Under ditfecent lenders, however, a productive relationship could falter, and a strong structure needs to be in plnce to ensure the state's technology pricities emai on tack,

‘Aa an impeovement, witnestes recommended that the Legislature and governor send the state CIO sn aggregated technology budget, and

“iatewide priorities! ‘The state CIO would prioritize and plan technology projects based on the agreed pon biidget framework, forgoing the need for a subsequent review of the projects by the Department af Finance." Infrastructure, Another example of the state's decentralization of TT sascls i the Department of Technology Services, one of several technology divisions that exist outside of the Ofce of the State Chiet Information Offer

Ie 2008, the state combined its largest data centers and networking operations inte a new Department of Technology Services (DTS) The Reconsinicing Government: A Reviews of the Governe's Reorganisation the Chief Information Officer at the time, DTS was moved inte the State

‘and Consumer Services Agency

Department of Technology Services

‘Was 800 employees and 9 8280 mien

bdeet the Deparment of Technslogy

Sevies (DIS) provides data warshoing,

Establishing DTS three years before the sate was able to reconfigure and relaunch the state CIOs olfee bas complied the elfet to centrally manage the state's

(Data Center, Heh nd Haman Services the Commission."

EERVNTMtndliGEctrlBrermUƠ Ì Information Security ‘The State and Consumer Services

‘ten commanieton, sic, Dpuamartsdfianes | Agency houses another technology activity not under the

Under Gover ub abo: cd Office of the Chit Information Officer la Janary 2008,

TA vao chư 2 aufavivASsteyaogludaa | the state formed the Office of Information Security and

“" — ẽ.ẽ ẽố the

Otice of Priveey Protection aad the State Information

‘Security Offee, the OISPP provides two separate funetons,

* See “Creating the State's IP Budget” page 31

2

‘The office offers consumer-proteetion services to the publ and reviews

technology programs to ensure adequate safeguards ase in place to

protect the stste's data, The crrent leadership of the OISPP and the

Olfice of the State Chief Information Officer report a produstive

relationship dealing with the state government's internal information

Experts, however, told the Commission that the existence of the OISP?

outside ofthe Office ofthe State Chief Information Officer es exacerbate

the multi-layer process for projects to win approval, The Legislative

Analyst's Ofce also concluded that the existence af the OISPP outside of

the state CIOS purview could lead to “another cumbersome Laver of

Given the daa! functions housed in the OISPP, the office shawl be spit

án 9o, Shifting the office's information-seewrty rele into the suite of

weaponsialiies under the state CIO would streamline the approval

process for technology projects The OISPHS public advocacy role

regarding consumer protertion and privacy in better it in the State and

Technology Commissions tn the absence of š song state C10, several

forums were established to further guide policy-making Membership of

these councils often overlaps!

+ The Information Technolony Coun advises the state chiel|

matters in the executive branch, inchiding the development of

statewide IT strategic plans and the adoption of enterprise-wide IT

Standards and policies The council's membership includes

representation from several constitutional ofees; department of

Technology Services: gene) information officers: department CIOs;

the jicinry and, local andl federal governments"

rates charged to state departments Board membership includes

top executives from all eabinet agencies and the State Contvolle's

Offer

+ The Enterprise Leadership Council provides a forum for executive

Draneh agencies to discuss and resolve business issues related to

‘enterprise-wide IT projects, such as the Fi8Cal project The counell

is composed of members of the governor's cabinet, the controler,

the trensurer and the ‘executive diester ef the Board of

2

Calforia’s Overapping Technology Boards

Lm] =Ô KH

‘cates ma rear Deparment of Fad 1 Overeaing and appreving DTS Suaget re etn meas

nsipan of pertone Taras Tarapotaton eusing Agency (TL

So Siem es Pei coleman

usness preces staae fer

‘dmistan

Oice of Heenan Seeuty eo SC mủ

4

Dispersion of IT Skills Across Departments In Michigan, where Ms Taka

last served asthe state's technology leader, the 1,700 technology workers

in state government reported tothe state ClO aad were assigned to worle

fe various departments depending on stalling needs" In Caliornia, the

state chet information glicer cannot move ils best and brightest in and

changing timelines or other needs

At present, Ms: Takal is employing an alternative, federated strategy —

working with agency-level information officers te coordinate agency wide

eiorta” The collaborative approach, however, ean only go so far without

fa more direc line of supervinion and authority Te improve nuccess and

fnformation officers should have at least a dal reporting retionahip ¢0

the agency secretary and the state CIO."

One of the largest collections of expert IF sta is aggregated in dhe Health

find Human Services Agency Originally part of the state bealth

Atepactment, the Office of Sytesns Integration (OSI) spun out of the DTS

management team With a 200-petson stall, it oversees $5.5 illon in

large technology activites spread across the health agency's 20

Aepartments and commissions The OS! works on some of the state's

biggest ease-management automation projets, Sram child wellge, Coin

home supportive services to health insurance programs for low income,

portion of the state's entice TF portfolio.” At dhe time, locating the anit in

the Health and Human Services Agency made sense, given the wosk it

had been doing and the major projects underway in various HES

epactments

When anly failed! IT projects seem to make hesllines, leaders of the OS!

pride themselves for not gesting inthe neves But this sucessful team's

mission is to0 constrained Several of OS's projects are scheduled to

‘wrap up by 2009-10 ~ such as in-home supportive services, food stamps

fund child welfare — but state law reatrcta the Office of Systems

Integration from operating outside of the health agentes” The state CIO

leks @ similar vehicle to help manage large technology projects and

tunder current lave, the state CIO cannot direct the Oilice of Systems

Integration to step in to help troubled projects in other agencies

Workforce Succession Planning The stata ability to hetter coordinate ts

stffing resources will hinge om its ability co develop a technologically

fabled and sophisticated worldorce, Over the next five years, more

dentiied by the Commission in its 2000 Better gov report as a major

‘obstacle to reruiting and hiring, che state's classification system has not been updated in more than 24 yeess ~ belore the Internet or servers Were widely used,

the Service Employees international Union, the state CIO office and the Legislature are now working to eceate a new classification and skis Dased testing system for state technology workers and other state workers, Inown as the Human Resources Modernization Project"! The sudministration and union offcile alae will address the disparity in pay

Consultants One consequence of the workforce shortage has been the state's growing reliance on IT consultants, seen in the tripling of personnel spending in recent years ~ to $307 aillon de 2006-07 from

$91 malin in 2003-04 {¢ now ix common practice for the wate to hire consultants to watch aver other consultants, ratcheting up project

As Ms, Taeai told the Commission, the state needs to retake ownership of sts techoology projects: “Right now io maay cases, the vendors are running I for the stave because we have walked ayisy from some of our

Iris unclear exactly how many contractors are working forthe state, An unsuccessful legislative proposal, AB 2603 (Brg), in 2008 would have fequired each state agency to peepare an annual report oh the consulting contracts that included staling levels AL present, che state is lunauare, for example, if it is paying ane person $1 millon ar 100 people

$310,000 each."

‘The Service Employees International Union, which represents state workers, estimates that the state employs between 1,000 and 1,475 IT contractors on any piven day SEIU contends the stete could save up to

$100 milion annually by reducing ite reliance on IP contractors, The

‘ypieal cost to employ an IT contractor is $218,136 a year compared te the typical cost to employ an IT worker in the state $98,985 a year, inding benefits, according to SEIU." Faced with a shortage, however, and the need to hiee people for specific projets, state managers say they have litle choice but to go this route and argue that a nom: permanent workloree is at tates appropriate for specific projects

GIS Geospatiat Information Systems (GIS) represent 2 promising tool

that could be weed to break down silos of data across agencies On a

basic level, GIS is @ wool used to visually dgplay data, such as a map

lS, however, embodies the potential to bride large data collections and

‘anslate them to a useable level for policy-makers and the public ~ an

Tending many states nnd local governments ta create formal GIS afies

For example, the state used GIS technology to launch is “Schoo! Finder”

Web site in July 2008 The site incorporates aerial views of schools and

fisplaya acaderie dats about teat scores, graduation rates nnd course

California does not have a formal statewide Geospatial Information Office

G10) though st maintains some fonctions of a GIO in the California

Resousces Agency The Comaission learned that

Absent such designee to coordinate cron cuttin, Data Reliability,

Anta setiitien, the atate could mins out om federal

fanding opportunities." ‘Maloun acute and liable daa important,

forapencies tasked wih disbursing fds or tracking and montering programs cr me, bụt

In May 2008, Governor Schwarzencguer called for the | sls or plicrmakers hu make py and

creation of tase force to develop a statewide | Presrareatic dcns bed one tin the siretegy 10 enkance GIS technology for

ceiconmental pratection, natural resource | In rio 4 audit pts sued bebiewn

management, trafic Now, emergency preparedness | 2006 and 2007, the Bureau of Slate Aug (BSA) und response, land se planning and heah and | examined te lability of dita fom the ate’:

The BSA found thatthe 68 syste add, any hd reliable dis, mening a accate From GIS to DPS, the state government has exeated tnd complet, but some did nt

the pieces of & strong technology program ‘The next

stullenge is to pull the pieces together to form 2 Data in 30 syste was reliable

more unified, coherent organization wnder the state Data in 19 syste was not sufciety

Data in 19 syst had undead During its study, the Commission Learned that telly ~the BSA could ne determine the rechnology developed so quickly over the last few ‘rent of inaccuracies o isons in the decades thet individual deparimenta and agencies | đam

implemented computer systems and processes on an | thou cases whe the data snd

swenecded bnojm, before the sate could get a sense of | unvlale the BSA warned that the dat could

f better overall strategy The fragmented approach | veuken an analysis or lu to incor or

may have even been efficent st one point to | Unintentional messages

SA eee oso

found that centralization and consolidation we now

needed ~ and with urgency ~ to provide seamtens,