Management Response and Action Plan (MRAP) Review of The Way Forward Initiative An Enterprise Approach to Information Technology

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Review of The Way Forward Initiative An Enterprise Approach to Information Technology

Recommendations	Management Response: Accept Accept with conditions Reject	Management Response (all text) & Planned Management Action	Deliverables	Expected Completion Date	Accountability
Recommendation No. 1 It is recommended that the Assistant Deputy Minister, Corporate Services Branch and Chief Information Officer consolidate the current forty (40) service level agreements into one comprehensive Service Level Agreement with PWGSC that encompasses the new environment and IT assets being moved to PWGSC.	Accept	Since the time of the report, significant progress made: HC is actively engaged with PWGSC as part of IT Shared Services to consolidate our 40 Service Agreements into approximately 8 core Service Agreements. This is a complex undertaking that will need to evolve in stages. Notwithstanding, significant progress has been achieved. We will continue these efforts throughout fiscal year 2008-09. Ten service agreements related to Storage Requirements have been consolidated into one agreement. The consolidated agreement is in final form and awaiting formal signatures. In addition, three Facilities based service agreements were consolidated into a single agreement. This consolidated agreement is nearing final form as well, and we anticipate sign-off in April.	Signed agreements covering all services provided to Health Canada. Consolidated Agreement for Storage Requirements Consolidated Facilities Service Agreement	December 2008 April 2008 April 2008	Chief Information Officer (CIO)
Recommendation No. 2 It is recommended that the Chief Information Officer implement a time recording system to effectively track personnel costs for initiatives of this nature.	Reject	The CIO is confident that the costs presented for TWF represent accurate Salary and O&M costs incurred for the project. Before embarking on the TWF initiative, IMSD consulted best practises to ensure that the the best strategy for recording costs against TWF was selected. The Advisory Committee's External Advisors reviewed and endorsed both the approach and the estimates for this project in the summer 2005. In addition, as a matter of course IT projects in Health Canada are managed following the EMF project management requirements. Health Canada also received an Acceptable level on the most recent MAF assessment for Project Management, in the areas or Project Resources and Project Results. IMSD created 3 cost centres dedicated to capturing TWF project costs, supplemented with IO's (1 for each TWF project). This included the full costs for all staff assigned to the TWF project. With regards to O&M costs, IMSD ensured that all expenditures and consultant contracts were coded directly to the appropriate TWF cost centre and project (using the IO coding), so as to ensure that reflective costs were shown. A time tracking system should only be examined in accordance with departmental priorities.	TWF reports to the ADM project steering committee. Cost Center's created for each TWF Project Division. Coding costs to the 3 TWF cost centres. Tracking all non-core TWF salary costs using IO's Strong Practices for recording costs in future projects	Completed throughout TWF project Completed - April 2005 Completed throughout TWF project Completed througout TWF project Framework based on TWF is in place, will be applied dynamically for the future	Chief Information Officer (CIO)
Recommendation No. 3 It is recommended that the Assistant Deputy Minister of the Corporate Services Branch ensure that the Performance Management Framework provides management with information on the extent to which this Initiative has achieved two of its key objectives: to provide a high level of client service through stable and sustainable IT infrastructure, and to reduce IT costs across the Department.	Accept	Since the time of the report, we have made considerable progress, and have documented over $15 million in savings as a result of TWF. 1. The Way Forward Performance Management Framework and Logic Model was developed specifically for HC-TWF initiative. Most of the performance measurements for the TWF initiative centerd around TBS Enhanced Management Framework (EMF). As well as two Report Card Reviews were conducted on the TWF Logic Model Project Outcomes in the past year. In reference to the two key objectives: Providing a high level of client service through stable and sustainable IT infrastrucutre: In June 2007 IMSD conducted a IT Client satisfaction Survey where improved client satisfaction was measured. An action plan has been put in place to address the issues raised in the survey results. As TWF had not completed at the time of this survey, a new survey is planned for the Fall of 2008, so that clients may provide their responses with regards to client service, in a post-TWF environment Reduce IT costs across the Department: A comparative analysis using straight line IT costs stemming back to 2003-04 indicated that without TWF, departmental IT costs would have risen to approximately $133 million in fiscal year 2008-09 as compared with IMSD established budget of $104.1 million, representing cost avoidance of $28.9 million. This analysis is supported by results of our RVD processes, where over $15 million in savings have been generated thus far (thereby realizing TWF overall savings targets): Server RVD -Three RVDs have generated over $12 million in savings on server assets valued at approx. $14 million on the NMSO (over 400 servers for under $2 million). We realized an average savings of over 90%. Laptop and Computer RVDs - RVDs were also completed for laptops and PCs generating savings around the 40% level. The most recent laptop RVD where 1000 laptops valued at $2 million on the NMSO were acquired for $1 million, representing $1million in savings. We have completed a number of RVD's since 2006, with additional savings of over $2 million. Software Consolidation - Centralised license management and contract consolidation has significantly reduced our overall requirements by both rationalization of current licenses as well as the ability to reduce the amount of transactions required to process ongoing maintenance contracts.	2007 Client Satisfaction Survey Comparative Analysis of the Impact of the Way Forward initiative on total IT resources. Presentation on IT Cost savings to IMAB-Jan.12, 2006	August 2007 March 2008 January 2006 and on-going	Chief Information Officer (CIO)
Recommendation No. 4 It is recommended that the sustainability plan be completed and approved by the Assistant Deputy Minister, Corporate Services Branch, and that resources be transferred from the Branches to IMSD as soon as possible.	Accept	Since the time of this report, events have taken place and all recommendations have been addressed: On October 3, 2007, the ADM of CSB presented the Enterprise IT business case to the department's SMB, proposing a formula for the permanent transfer of funds and resources to CSB/IMSD, to support Enterprise IT for HC. This proposal was accepted and resulted in immediate permanent transfers of IT staff, and O&M budgets necessary to sustain IT within the department. Permanent transfers of staff into IMSD were undertaken throughout fiscal year 2007-08, with the final transfers completed by February 2008. For fiscal year 2008-09, IMSD's base budget for Enterprise IT services will be $104.1 million.	Enterprise IT Business Case Transfer of IT budgets and resources All CS Employee's transferred Approved Enterprise IT Base Budget 2007-2008	October 2007 October 2007 - Feb 2008 February 2008 December 2007	Chief Information Officer (CIO)