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Case Study of NYCHA's IT PMO

I brought in Faisal Hanafi of Cisco's Internet Business Solutions Group to develop from square one NYCHA's IT PMO and then later automated it.

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Case Study of NYCHA's IT PMO

  1. 1. Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved. C U S TO M E R CA S E S T U DY Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved. New York City Housing Authority (NYCHA) devel- oped an enterprise-wide IT governance model that aligns its business and IT strategy, which when fac- tored into driving the Authority’s financial planning process will drive millions of dollars in cost savings, improve employee productivity, increase resident satisfaction, and deliver strategic IT projects on time and on budget. NYCHA’s Virtual IT Project Management Office integrates comprehensive process flows, templates, online tools, and col- laborative techniques to standardize IT project selection and management throughout the organi- zation, driving innovation through governance and high performance. Business Challenge More than 420,000 of New York City’s low income and elderly citizens look to the New York City Housing Authority (NYCHA) to provide affordable housing in a safe and secure living environment. NYCHA is the largest housing Authority in the United States with 14,000 employees overseeing nearly 2,700 buildings and 181,000 apartments. NYCHA’s mission is to preserve its aging housing stock located throughout Queens, Manhattan, the Bronx, Brooklyn, and Staten Island through timely maintenance and modernization of developments. However, like many in the public sector, NYCHA— whose operating budget is comprised of rent collection and federal funding programs—must meet constituent demands with shrinking resources. Prepared by Cisco Systems, Inc. Internet Business Solutions Group Executive Summary The New York City Housing Authority (NYCHA) provides housing to nearly 420,000 of New York City’s low income and elderly residents throughout 2,698 buildings with more than 181,000 apartments. Seeking an enterprise-wide process to help align its business and technology strategy, NYCHA reached out to Cisco Systems, Inc.®, to help develop an IT governance model that would provide a repeatable and predictable framework for informed, intelligent IT invest- ment decisions. Launched in June 2004 as the Enterprise Version 1.0 release, the IT governance model has already led to increased productivity, reduced costs, improved resident satisfaction, and has enhanced NYCHA’s ability to make informed decisions about strategic, business-aligned IT programs. New York City Housing Authority Teams with Cisco to Develop Information Technology Governance Model
  2. 2. Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved. C U S TO M E R CA S E S T U DY 2 NYCHA’s lack of an enterprise-wide IT governance process prevented strategic alignment of its busi- ness and technology investments and strategies. Compounding that problem, a lack of standard- ized business processes and limited enterprise analysis and review of IT funding and program requests made it difficult to identify, initiate, and execute strategic, multi-million dollar IT pro- grams. In addition, NYCHA’s lack of technology and data standardization had led to multiple technology platforms and solutions that supported similar business functions in different depart- ments—an expensive and inefficient environment to support. “Recognizing these deficits, we realized that we needed a governance process that included a methodology for making sound IT investment decisions,” says Avi Duvdevani, NYCHA CIO. “We also needed to put a solid IT project management discipline in place to minimize the risk of those IT investments.” New IT Governance Model The Authority’s senior management team, led by NYCHA General Manager Douglas Apple, set out to identify opportunities that would drive higher levels of efficiency into the organization, reduce operational costs, and increase the quality of service provided to NYCHA’s residents. “We needed to develop a consistent, repeatable strategy and methodology to help us select and protect our IT investments,” says Helene Heller, senior director, project and information man- agement, Office of the CIO, NYCHA. “This was critical because fiscal realities dictate selective IT investment. We wanted a process that would guarantee that the selected technology works, the business problem has been solved, and the investment is contained.” Duvdevani and his team reached out to the Cisco Internet Business Solutions Group (IBSG) to act as a trusted advisor across multiple initiatives, one of which was to develop an enterprise IT governance model. The model would provide an end-to-end project delivery and project manage- ment process as well as create standards, best practices, and tools to help NYCHA achieve far higher levels of performance, deliver big wins quickly, and achieve positive financial impact. “Cisco technology had become the de facto standard here at NYCHA,” Duvdevani says, “IBSG had assisted in the early development of the city’s e-government initiative. We knew they could bring some resources to the table as well as a best practice approach in terms of things that were done in other governmental organizations.” Solution Heller and Duvdevani worked closely with Cisco IBSG to develop the concept and design of an enhanced Virtual IT Program Management Office (PMO) governance structure, and then part- nered with IBSG to implement the initiative. NYCHA’s model was developed based on industry best practices, but customized to address issues specific to the organization. “Understanding the drivers for making an IT investment, identifying the metrics by which the success of that implementation will be measured, and then committing to that investment enables us to realize the benefits.” —Avi Duvdevani, CIO, New York City Housing Authority Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved.
  3. 3. C U S TO M E R CA S E S T U DY 3 NYCHA’s new Virtual Project Management Office was created to manage the IT portfolio selection and management methodology, project lifecycle approach, and project management discipline through an IT governance model. The Virtual IT PMO includes comprehensive process flows and templates that standardize IT project selection and management throughout the orga- nization. An enterprise-wide governance portal leverages a shared server environment to create an online repository of tools and materials to support project managers. The next evolution of this portal will leverage the Microsoft EPM suite and other products to provide a Web-based project management application, including collaborative tools and techniques such as a project dashboard, repository, planning and tracking, risk management, and reporting/issue management. With a support structure that monitors and facilitates best practice transfers, IT issues such as reuse, methodology, and business performance measurements are addressed. The governance model will help NYCHA select the right technology projects dictated by the business and inte- grate technology with business priorities and improvement opportunities set by the program rather than by the CIO. “We can no longer afford to focus on point solutions that are specific to a single department,” Heller says. “We focus on projects that are a priority for the business, owned by them, and of benefit to the enterprise.” A Disciplined, Repeatable Approach NYCHA has leveraged the enhanced IT Governance Model in the development of its Five-Year Information Technology Strategic Plan. NYCHA identified three primary goals which IT needed to enable. “First, we wanted to improve our relationship with our residents,” Duvdevani says. “Second, we wanted to drive cost out of future operations. And third, we wanted to optimize our existing resources and improve employee productivity. It was clear to us where we needed to focus.” After conducting an initial analysis of various projects to consider, NYCHA learned that by implementing projects such as an automation of repair appointment scheduling, they could avoid 50 percent of tenant ‘not at home’ situations. “This will allow us to increase productivity by cre- ating a scheduling process where, together with the tenant, we could come up with a specific date and time range (to visit the home),” Duvdevani says. “These kinds of initiatives help create opportunities for cost take-out and optimization of scarce resources. By leveraging the Virtual IT PMO and its process and templates, we now have a method by which to measure the value of this initiative against other prospective projects and evaluate them against our primary business goals.” Not only has the governance model allowed NYCHA to analyze, track, and measure IT projects, it has provided a method of evaluating opportunities to establish partnership ecosystems—a key strategy for NYCHA’s IT Department. Out tasking functions to other organizations helps to streamline operations and reduce cost. “With Cisco’s help, we were able to undertake a ‘core vs. context’ analysis to make a change in the organization,” Duvdevani says. “One such study focused on our traditional telephony, which was previously outsourced and managed by our administration department. Through the deployment of IBSG’s ‘core vs. context’ methodology, telecommunications became part of IT’s infrastructure department through the implementation of voice over data telephony.” Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved.Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved.
  4. 4. C U S TO M E R CA S E S T U DY 4 IBSG also helped NYCHA develop a strategy to enhance its Authority Productivity Tracking System (APTS), a manually intensive, paper-driven approach that NYCHA senior management uses to review the organization’s performance against key indicators. The enhanced APTS will leverage executive information system (EIS) portal technology and process re-engineering to deliver a streamlined data analysis/data collection solution that can dramatically increase employee productivity. Combining this close-looped business improvement tool and real-time management reporting with the Virtual IT PMO helps to improve the success of IT projects and protect NYCHA’s IT investments. Business Value NYCHA has recently completed the fifth of the quarterly reviews that are a part of the IT governance model and the second annual enterprise IT business portfolio review. “We used the process to collaborate with our CFO and Department of Budget & Financial Planning to allocate capital IT funding for the fiscal year that started in January of 2005,” Heller says. “So, while we’re still at the early stages of adoption, the process has already proven its usefulness and credibility.” Although governance is often associated with bureaucracy, NYCHA has established the model as a virtual process with very clear rules and a high level of automation and collaboration. This has strengthened the Business-to-IT relationship within NYCHA, says Faisal Hanafi, Cisco IBSG Executive Advisor. It is now clear within the Authority the impact that information technology will make to NYCHA’s long term success. Among other benefits, NYCHA has seen the following results: • Generated US$1.2M in cost reductions through staff avoidance via Virtual IT PMO. • Increased business unit satisfaction and collaboration with IT. • Streamlined NYCHA business and IT five-year strategic planning process. • Improved level, quality, timeliness, and cost effectiveness of strategic IT programs. • Significantly increased the amount of capital spending allocated to IT projects. Recently, NYCHA assembled a consortium of technology leaders representing government and education who have expressed the same need for an enterprise-wide IT governance model. “We wanted to share the NYCHA Virtual IT PMO lifecycle process templates and tools,” Heller says. “But we also wanted to provide a support group of folks who have these issues in common and need a way to validate issues around IT governance, portfolio management, investment decisions, and project management.” This virtual community of Government and Education government leaders, known as the Government and Education Technology Portfolio Management Consortium or GETPMc have come together to share best practices and collaborate to provide a continuous improvement program approach to public sector IT governance. IBSG and NYCHA, in collaboration with the Consortium and the National Electronic Commerce Coordinating Council, are also in the processes of developing a handbook to help other public sector organizations learn how to benefit from this experience. Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved.
  5. 5. C U S TO M E R CA S E S T U DY 5 Next Steps NYCHA is in the process of fully automating its Virtual IT PMO, providing greater scalability to the process and ensuring a high level of compliance and transparency. “We’re going to work the details of the IT procurement process into the ePMO tool,” Heller says. “Then we’re going to take a step back and look more closely at the sixth phase of the process, which is the support and maintenance phase.” This is especially significant since 85 percent of the work performed by the technology staff centers on production applications and systems. Cisco Systems, Inc., IBSG All contents are Copyright ©2005 Cisco Systems, Inc. All rights reserved. MORE INFORMATION For further information on Cisco Internet business solutions, visit: http://www.cisco.com/go/ibsg. Corporate Headquarters Cisco Systems, Inc. 170 West Tasman Drive San Jose, CA 95134-1706 USA www.cisco.com Tel: 408 526-4000 800 553-NETS (6387) Fax: 408 526-4100 European Headquarters Cisco Systems International BV Haarlerbergpark Haarlerbergweg 13-19 1101 CH Amsterdam The Netherlands www-europe.cisco.com Tel: 31 0 20 357 1000 Fax: 31 0 20 357 1100 Americas Headquarters Cisco Systems, Inc. 170 West Tasman Drive San Jose, CA 95134-1706 USA www.cisco.com Tel: 408 526-7660 Fax: 408 527-0883 Asia Pacific Headquarters Cisco Systems, Inc. 168 Robinson Road #28-01 Capital Tower Singapore 068912 www.cisco.com Tel: +65 6317 7777 Fax: +65 6317 7799 Cisco Systems has more than 200 offices in the following countries and regions. Addresses, phone numbers, and fax numbers are listed on the Cisco Website at www.cisco.com/go/offices. Argentina • Australia • Austria • Belgium • Brazil • Bulgaria • Canada • Chile • China PRC • Colombia • Costa Rica • Croatia • Cyprus • Czech Republic • Denmark Dubai, UAE • Finland • France • Germany • Greece • Hong Kong SAR • Hungary • India • Indonesia • Ireland • Israel • Italy • Japan • Korea • Luxembourg • Malaysia Mexico • The Netherlands • New Zealand • Norway • Peru • Philippines • Poland • Portugal • Puerto Rico • Romania • Russia • Saudi Arabia • Scotland • Singapore Slovakia Slovenia • South Africa • Spain • Sweden • Switzerland • Taiwan • Thailand • Turkey • Ukraine • United Kingdom • United States • Venezuela • Vietnam • Zimbabwe Copyright © 2005 Cisco Systems, Inc. All rights reserved. Cisco, Cisco Systems, and the Cisco Systems logo are registered trademarks or trademarks of Cisco Systems, Inc., and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or Website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0502R) CW/LW8463 04/05 Printed in USA

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I brought in Faisal Hanafi of Cisco's Internet Business Solutions Group to develop from square one NYCHA's IT PMO and then later automated it.

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