Business Unit Designation or other information
A Clear View Using Component Business Modelling:
Case Study - Queenstown Lakes District Council
Roland Bell
Managing Consultant, IBM Global Business Services
IBM Insight Forum 09 Make change work for you
®

Global Business Services
Agenda
A d
1. Background and Context
2. Challenges and Expectations
3. Project Approach
4 Component Business Model
4.
5 Results
5.
6. Lessons Learned and Summary
2

Global Business Services
Background and Context
B k d dC t t
Source: QLDC Annual Report 07-08
www.qldc.govt.nz
3

Global Business Services
Background and Context
B k d dC t t
100% ownership
Jan 09 announced intention to
amalgamate with internal
engineering services team
100% ownership
Note: this is not an
exhaustive list of QLDC
subcontractors…
… and many other Acts…
4
Resource Management Act Public Records Act Local Government Official Information and Meetings Act

Global Business Services
Challenges and Expectations
Ch ll dE t ti
CEO Duncan Field - expectations:
Increase efficiency of processes through easy to access,
consistent and complete information
Better
B tt quality, faster decision-making
lit f t d i i ki
Benefits to community and ratepayers
A programme of p j
p g projects
Each initiative must stand on its own merits
One View initiative (Kirsty Martin, CIO):
Martin
“One of the biggest challenges a fast growing organisation faces
is data sharing. The goal is to provide a single, unified view of
business critical data across all co operative agencies ”
co-operative agencies.
“By creating a more unified view we want to achieve improved
efficiency, smoother operations, and reduced risk. I order to
ffi i th ti d d d i k In d t
achieve this we need to ensure we have the data required, and
5 trust its integrity, authority and accuracy.”

Global Business Services
Project A
P j t Approach
h
2. Analyse Requirements /
1. Assess Current State / 3. Build the Action Plan for
Priorities & Identify
Gather Data Requirements and Design
Opportunities
“Top 10” Current Best practices (IT)
anisations in
sible parties
Core processes &
issues IT
situation
Action Plan for Re
focus)
Initiative
ies
es
Candidate
s)
respons
ents & prioritie
(for orga
prioritisation
for chan (initiatives
n
p
f
and Design phase
Candidat opportuniti
opportunities for
and action
change
rent state
planning
Current state
nge
assessment
te
(for organisations inn
equirements
requireme
Investment
Curr
rating strategyy
ectives, plans,
Impacts on people, Analysis for
processes, Requirements
focus)
technology and Design
phase
s
Obje
oper
o
User groups /
locations Input from
environment & stakeholders
•Constraints
C t i t
•Future directions
6

Global Business Services
Project A
P j t Approach
h
2. Analyse Requirements /
1. Assess Current State / 3. Build the Action Plan for
Priorities & Identify
Gather Data Requirements and Design
Opportunities
“Top 10”
anisations in
sible parties
Core processes &
issues
Action Plan for Re
focus)
Initiative
es
Candidate
respons
ents & prioritie
(for orga
prioritisation
n
p
f
and Design phase
opportunities for
and action
change
rent state
planning
equirements
requireme
Curr
s
Interviews Executive Team
Workshops workshop Working with
(engineering, regulatory business
b i
/7 environmental) sponsors

Global Business Services
Component B i
C t Business M d l
Model
Municipal
Transportation & Recreation Public Works
City Planning Public Safety Management
Infrastructure Services Services
Services
Strategic Preparedness Infrastructure Services
Direct Event Planning Admin Planning
Planning Planning Strategy Strategy
Disaster Regulatory Performance
Analytics Management Reporting Recreational Monitoring
Program
Control Facilities
Management
Oversight
Public Safety Reporting
Contracts Engineering
Reporting
Emergency
Sports Facilities Housing
Development Response
& Events Administration Legal
Control
Execute Service Delivery
Libraries
Prevention &
Document HR
Property & Land Awareness
Management
M t
Management Heritage
Preservation IT
8

Global Business Services
Component B i
C t Business M d l
Model
Component Business Model
Columns are Business
Transportation Municipal
Recreation Public Works
Competencies, defined as large City Planning Public Safety &
Services Services
Management
Infrastructure Services
business areas with characteristic
skills and capabilities for example
capabilities, example, Direct
Strategic
Planning
Preparedness
Planning
Infrastructure
Strategy
Event
Planning
Services
Strategy
Admin
Planning
product development or supply
Disaster Regulatory Performance
chain. Analytics Management Reporting Recreational Monitoring
Program
Control Facilities
Management
Public Safety Oversight
Engineering Reporting
Contracts Reporting
Emergency Sports Housing
Development Response Facilities & Adminis-
An Accountability Level characterises Control Events tration Legal
the scope and intent of activity and Execute
Service
Delivery Libraries
decision-making.
decision making The three levels Property &
Prevention &
P ti
Document HR
Awareness
Management
used in CBM are Directing, Controlling Land
Management
Heritage
IT
Preservation
and Executing.
Directing is about strategy, overall
direction and policy
policy. Business
Business S
A Business Component is a
Controlling is about monitoring, Purpose
Governa
part of an enterprise that has
managing exceptions and tactical
the potential to operate Activities
decision making
independently, in the extreme
y
Services
Executing is about doing the work
ance
as a separate company, or as Resources
part of another company. Applications
9 Infrastructure

Global Business Services
Component Business Model – example showing
p p g
importance vs. resource use
High cost but
differentiating (adds
Transportation Municipal
Recreation Public Works significant value)
City Planning Public Safety & Management
Services Services
Infrastructure Services
Strategic Preparedness Infrastructure Event Services (We need to be known for
Admin
Direct
Planning Planning Strategy Planning Strategy Planning
engineering)
Disaster Regulatory Performance
Analytics Management Reporting Recreational Monitoring
Program
Control Facilities
Management
Public Safety Oversight
Contracts Engineering Reporting
Reporting
Emergency
E Sports Housing
Development Response Facilities & Adminis-
Events tration Legal
Control
High cost but non- Service
Execute
Delivery Libraries
differentiating: Property &
cost Prevention & Document
D t HR
Awareness Management
Land Heritage
control opportunity
Management IT
Preservation
( e don’t eed
(We do t need to be known
o
for doing contracts) Key: Differentiated component
10
High resource use

Global Business Services
Component Business Model – example showing
p p g
applications and data
Duplication: Replication:
Transportation Municipal
Recreation Public Works
City Planning Public Safety & Management
Services Services
two systems
y Infrastructure information held in
Services
providing same
Strategic Preparedness Infrastructure Event Services multiple places
Admin
Direct
Planning Planning Strategy Planning Strategy Planning
function within one
Disaster Regulatory Performance
component
p Analytics Management Recreational Monitoring
Reporting
Program
Control Facilities
Management
Public Safety Oversight
Contracts Engineering Reporting
Reporting
System a
S t Emergency
E Sports Housing
Development Response Facilities & Adminis-
Events tration Legal
Control
System b Service
Execute
Delivery Libraries
Prevention & Document
D t
Property & HR
Awareness Management
Land Heritage
Management Preservation IT
Key: Application systems
11
Name and Address data

Global Business Services
Component B i
C t Business M d l
Model
"We drew together a one-page map of what the council looked like
and from there, for each of the components of the council, asked
what were the inputs and outputs and where did they need to get
information from."
"It was quite an interesting process because people started off
It
thinking it was an IT project but once they got talking about the
difficulties they face day-to-day just finding information, and we'd
moved it to a business process discussion, it became quite fruitful.
fruitful."
"It's been really good to provide a framework to move forward
without diving straight into a technical solution which is always a
solution,
mistake”.
Queenstown Lakes District Council, CIO Kirsty Martin
Q t L k Di t i t C il CIO, Ki t M ti
12

Global Business Services
Results – i
R lt issue collection
ll ti
Issues for “Resource Planning” business component
Less predictable Missed revenue
Increased costs
Financial High proportion of project expenditure & opportunities
perspective unplanned / reactive time estimating
work; resource
conflicts
Reduced Potentially more
Less predictable community trust in disruption for
Underlying issues
estimates of Council; loss of community (esp.
get missed and
project length & trust leads to when infrastructure
take too long to
project costs decreased is being built /
deal with, leading
community repaired)
to frustration
confidence
Community
Don’t know what resource
allocation is at start of year
(not known if too much or not Key finding(s):
enough); uncertainty as to Resource planning not occurring
what we can deliver consistently. Likely to be resulting in
increased costs through unplanned work,
No resource
delayed work, resource conflicts, in
planning for
Internal Process addition to negative community impacts.
infrastructure
Business processes projects
Applications
Information, Data, Technology
People not getting People work Increased stress leads to Improve
adequate training; longer than
g g
greater staff turnover; turnover
; resource
development plans they need to leads to increased costs, planning
l i
not targeted, not delays in projects, and
effective sometimes no handover when
Learning staff leave
and
13 Growth

Global Business Services
Results – li ki benefits to capabilities and enablers
R lt linking b fit t biliti d bl
Key: Benefits Resource Planning Value provided
Reduce costs Achieve
A hi
Develop capabilities Achieve better
Capability through reducing greater
of people resources predictability of Reduce reactive
resource revenue
in line with better project duration and unplanned
conflicts opportunities
Enabler understood future and expenditure work
requirements (more
targeted
development plans)
Things QLDC
Anticipate and
manage
needs to do
Schedule
resources resource
required for conflicts Share resource
projects requirements and
commitments
Estimate
across projects
j t
resources
required for Capture actual Maintain visibility of
projects resource requirements planning done by
from past projects to external parties (e.g.
inform estimating in consultants)
future projects
Things QLDC
Processes and facilities needs to have
to share information with
external parties
Project planning
Project and scheduling
requirements tools Project Managers /
Project Planners
Project planning and Project knowledge trained in new
scheduling process repository processes & tools
14

Global Business Services
Results – i iti ti prioritisation
R lt initiative i iti ti
Hi
2
5
14 10
11
4 13 3
9
Impac on CSFs
s
6 1
12
Quick Wins
Hard-fought major projects
ct
8 Low urgency
Medium urgency
High urgency
The size of the bubble represents
the ‘cost’ score. The larger the
7
bubble, the higher the cost.
Don't Do Wait
Lo
Harder Ease of implementation Easier
15

Global Business Services
Lessons Learned
L L d
An organising framework (CBM) – worked very well in terms of engaging
both staff and the executive team
It allowed anchoring of the issues as well as the initiatives arising from the
Scoping Phase
"You've got to make sure you've got the business sorted first so it drives your
technical response." – Kirsty Martin, CIO
Early involvement was key to buy-in
“Involving staff in the p
g process ensures their "pain-points" are understood and
p p
gets project buy-in.” – Kirsty Martin, CIO
We built re-usable frameworks that QLDC could continue to use following
re usable
the engagement:
CBM; prioritisation model
The process “worked”; implementation is now underway
16

Global Business Services
Thank you
o
Questions?
IBM Insight Forum 09
17 Make change work for you
®