What is the IT Consolidation Project?
In support of continuing efforts to reduce spending and improve efficiency in Louisiana state government, the State contracted with Deloitte Consulting to create a roadmap for transforming Louisiana’s IT environment into a consolidated model for service delivery. Since November 2013, the Team has been interviewing departmental/agency CIOs, business leaders, and staff, as well as examining the existing infrastructure, services and organizational structures of current IT operations. The initial results indicate opportunities for significant positive transformation. To address these opportunities, the project team is developing a series of strategic and operational plans to implement key IT shared service projects that will enable IT Transformation. The planning project is currently in Phase One: Current State Assessment and Analysis, which will conclude this month. Phase Two, Future State Design, will begin immediately following completion of Phase One and will span the next 6 weeks. A timeline is available here.
What is “IT Consolidation”?
IT Consolidation refers to the development of a comprehensive and coordinated vision, strategy and approach to transform the State’s IT services and operations to improve services and lower costs. Key elements of the IT Transformation framework include:
- IT Infrastructure Services
- IT Application and Data Sharing
- IT Service Excellence
- IT Governance
- IT Operating Model
- IT Talent Management
- Change Management and Communications
- IT Volume Procurement and Enterprise Licensing
What is the scope of the project?
The scope of the IT Consolidation project includes all key elements required by agencies to successfully deliver their mission to constituents. All State cabinet agencies in the Executive Branch are included in the scope of this project. IT Consolidation implementation will take place at the Statewide and agency levels, and will focus on priority initiatives identified during the planning process. These projects will be supported by key changes in IT Governance, IT Finance, and IT Workforce Management.
How is Deloitte approaching the IT Consolidation project?
Deloitte’s approach to the IT Consolidation project consists of the following major tasks:
- Discovery and Planning
- Review and analyze Louisiana’s current IT environment
- Document the State’s key IT business needs
- Benchmark key performance indicators against both public and private industry standards to identify gaps and improvement opportunities
- Identify Shared Service Opportunities for improvements in cost, efficiency, and the quality of IT services provided by the State
- Recommend a new model to support future changes to the transformation effort
- Create an implementation roadmap to guide the implementation of recommendations
What is the proposed timeline for the project?
The project is currently in Phase One: Current State Assessment and Analysis , which will conclude in December 2013. Phase Two will begin immediately following and will span the next 6 weeks. Phase Three will include performance of a Gap Analysis between current state and planned future state models. Phase Four will consist of the development of an IT Consolidation Implementation Roadmap. A timeline is available here.
Why is the State undertaking this effort now?
Over time, the State has developed and maintained a decentralized approach to administrative support services, including IT, leading to redundant and inefficient IT infrastructure, applications, data, and IT services, as well as ineffective or non-existent Statewide IT standards, and a piecemeal approach to IT Governance. As the State continues to confront significant fiscal challenges, it is critical to manage the State’s IT resources efficiently and effectively, for example, sharing IT staff resources in order to mitigate reduced departmental/agency IT staffing levels.
What are the expected outcomes of the project?
At this point, the IT Consolidation has clearly identified three areas where positive outcomes are strongly indicated:
- Efficiency – Reducing and optimizing IT spend per unit via eliminating duplicative systems, as well as improving purchasing power by combining procurements
- Effectiveness – Improved ability to align IT resources with the business priorities of agencies; improved reliability, and industry standard delivery of IT services
- Resource sharing – Greater data sharing to reduce costs and improve services, reduced dependence on redundant and duplicative systems and processes, as well as strategic allocation of scare human and financial resources
Who is overseeing the IT Transformation project?
The Deloitte team is reporting directly to the State CIO who is in turn working closely with the Commissioner of Administration and executive management across all cabinet departments. All participants are wholly committed to working closely with all State Departments to achieve consensus, clarity of vision, and efficient execution of the Consolidation. Results in other State’s consolidation efforts strongly indicate that a successful consolidation requires all participants to take ownership of the project. In short, one of the principal owners of the Project must be the entire IT Staff of the State.
Will the IT Consolidation affect my job?
The State CIO has strongly stated that the goal of the Consolidation is not to create IT layoffs. Potential reductions in IT staff levels are expected to occur through attrition. However, other States that have consolidated have experienced significant changes. Your job duties, organization structure, management structure, tool set, and even the way you perform your job may change significantly. In order to discharge our duties to the citizens of Louisiana – the people that pay us – the State’s IT staff will need to deal positively with the stresses that accompany change, and make the personal commitment to help reach the goal – improved IT services at a reduced cost for the State.