c4itranformationbizcase9jul08

C4I Systems Confidential & Proprietary

A TRANSFORMATION STRATEGY FOR INFORMATION

TECHNOLOGY SERVICES AT A MAJOR UNIVERSITY

PREPARED BY C4I SYSTEMS, INC.

1 JULY 2008

Chris Lozano, CEO

[email protected]

(314) 749-0552

mailto:[email protected]

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“The Fusion Cell”

A B O U T C H R I S L O Z A N O A N D C 4 I S Y S T E M S

Chris Lozano is an entrepreneur, lawyer and Marine Corps officer who has dedicated his life

to fusing the lessons he learned on the battlefield to business. He has worked in and around

emerging technology companies for fifteen years from formation to sale and understands the

unique challenges they face. Chris recently returned from his third combat tour since 9-11.

As a combat engineer he has participated in the detailed planning and execution of combat

operations at both the tactical to strategic level including mine-clearing operations in

Afghanistan, the invasion of Iraq and counter-insurgency operations in the al Anbar province.

T H E F U S I O N C E L L P L A N N I N G P R O C E S S ™ ( F C P P )

merges proven planning and operations methods used by the United States military with best

practices of enterprise operations. It is designed to create action in an environment of

uncertainty. The FCPP supports C4I’s philosophy of decisive action in the midst of

uncertainty. Executives must adopt a philosophy of bold and decisive action and utilization

of battle-tested methods and processes to reduce uncertainty, build action and accelerate

adaptation of transformation.

“An idea is not a plan, a plan is not action”

-Chris Lozano

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TABLE OF CONTENTS PAGE

EXECUTIVE SUMMARY 1

THE APPROACH TO CULTURAL TRANSFORMATION 6

RISK ASSESSMENT AND RISK MITIGATION 7

SAINT LOUIS UNIVERSITY ITS TRANSFORMATION 7

I. DISCOVERY 9

a. External 9

b. Internal 11

c. Cost Analysis 12

d. Tale of Two Systems 13

e. Organizational Dynamics 14

f. Root Cause Analysis 16

II. PLANNING 20

a. Vision, Mission, Strategies, Tasks & Goals 20

b. The Fusion Cell Planning Process 20

c. The Rationalization Planning Team 22

d. Leadership Directives 23

e. STEP 1: MISSION ANALYSIS 24

i. Purpose of Mission Analysis 24

ii. University Mission Statement 27

iii. Executive Planning Guidance 27

iv. ITS Strategic Mission 28

v. ITS Tasks 28

vi. Customer Definition 30

vii. Customers 30

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viii. Core Services Definition 31

ix. Core Services 31

x. Supported Non-Core Services Definition 32

xi. Supported Non-Core Services 33

xii. Unsupported Services Definition 33

xiii. Unsupported Services 33

xiv.Operational Assumptions 34

xv.Subject Matter Expert Shortfalls 35

xvi.Resource Shortfalls 36

xvii.Constraints 37

xviii.Restraints 37

xix.Information Requirements 38

xx.Draft Mission Statement 39

f. STEP2: COURSE OF ACTION DEVELOPMENT 40

i. Present Organizational Structure

41

ii. Present State of Technology

43

iii. Changing State of Technology 44

iv.Building For The New Paradigm

45

v. The Vision 46

vi. Concept of Operations 46

vii. The Balanced System 47

1. Client Management Group 48

2. AVP-Deputy CIO: Governance 50

3. Customer Service Group 52

4. Plans & Projects Group 55

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5. Operations Group 56

6. Infrastructure Group 58

7. Products Group 59

8. Advanced Concepts Group 60

viii. The New Ethos 61

g. STEP 3: COURSE OF ACTION MODELING 62

h. STEP 4: COURSE OF ACTION COMPARISON & DECISION 64

i. STEP 5: PLANS DEVELOPMENT 65

III. ALIGNMENT 66

a. STEP 6: TRANSITION 67

i.Organizational Structure, Process & Governance 68

ii.Service Level Agreements 68

iii.Operating Level Agreements 68

IV. SUSTAINMENT & IMPROVEMENT 70

V. RECOMMENDATIONS 71

VI. OTHER WORK 73

VII.ATTACHMENTS

A: redacted

B: FUSION CELL PLANNING PROCESS WHITE PAPER

C: FY08 COST ANALYSIS

D: redacted

E: redacted

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C4I Systems Confidential & Proprietary. This document may not be duplicated, published or disclosed without permission of C4I Systems.

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EXECUTIVE SUMMARY

This engagement began with a simple directive to “Fix IT”. The

report that follows describes the problem, the process and the solution

as well as C4I’s vision for “building and sustaining a successful

information technology services function at The University”.

The situation regarding Information Technology Services (“ITS”) and

the state of Information Technology (“IT”) at The University is complex

and the problems pervasive. Today 55% of the total university IT

expenditure is spent outside of ITS. This represents two competing and

conflicting systems that produce service gaps and redundancies and

reduces the value of IT expenditures.

Solving a complex problem requires a rigorous process

methodology. C4I used a Systems Engineering approach to capture the

complex relationship of ITS to the entire Enterprise by analyzing people,

processes and technology. A Systems Engineering process injects:

• Accuracy

• Efficiency

• Thoroughness

• Connectivity

• Total solution (best value)

However, you cannot fix what you do not understand. We began

the process of transformation first by base-lining performance of ITS to

understand the current state. This had never been done within ITS

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before. We met with stakeholders throughout the University to

understand their needs. We engaged in detailed planning to define our

strategic capabilities and limitations but most importantly defined our

mission.

By base-lining performance C4I we were able to identify root

causation the debarkation point for change. In this case, root causes

are:

• Fear of change

• Lack of effective leadership and vision

• Lack of mission clarity

• Lack of established expectations between ITS and customers

• Lack of effective strategic and operational planning

• Lack of standards-based processes

• Lack of organizational structure that embodies process

• Lack of qualified employees in critical areas

• Confusing governance

• Failure to treat ITS like a business

None of the causes is a simple lack of resources

Once Root causation was identified we began to re-engineer the

entire system to address the causes and not simply fixing the

symptoms. The new system was re-imagined and designed to:

• Be customer focused

• Be operations-centric organization

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• Use standards-based processes and best practices

• Align and integrate with university operations and plans

• Be organization of excellence and depth

• Be efficiency and effectiveness driven

• Provide value and the business case for further change

…but most importantly provide LEADERSHIP

Deployment of this Rationalization Strategy requires managing

strictly to the Vision, Mission, Strategies, Tasks and Goals. This best

practice helps the University to understand ITS, be compatible with ITS

and find value in ITS.

Re-engineering of the organization also requires a new ethos to

reinstitute organizational integrity and ensure adaptation of the

systemic changes. The new ITS must be built around the principles of

• Responsibility. Every member of ITS must have clearly defined

responsibilities

• Authority. Every member of ITS must have the authority to

accomplish their responsibilities.

• Accountability. Every member of ITS must be held accountable

for their individual and unit performance.

C4I designed into this re-engineering process a value added

technology strategy designed to:

• Maximize current investment

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• Leverage emerging capabilities to fully support:

o Learning Systems

o Business Systems

o Health Systems

• Use efficiency and effectiveness savings to fuel innovation

• Implement a service architecture that is adaptive

The new system must be build around a vision that can sustain

change and allow ITS to be a truly enabling capability. When done

properly, ITS enables the University to teach better, research better,

produce better scholarship, attract and retain better students and

increase contributions. The system is built on these principles:

• Transparency. Enabling capability that is felt and not seen.

• Agility. People, Processes and technology that continuously

synchronize with changing customer needs.

• Equity. The same base-line of technology for all regardless of

individual or organizational wealth.

• Innovation. Continuous innovation of people, processes and

technology for ITS and customers.

There is a great deal of additional value to be gained in

rationalizing the organization:

• Optimization. Optimization of current budget means extracting

additional value through gains in efficiency and effectiveness in process

re-engineering.

• Consolidation. With 55% of the IT spend outside of ITS,

consensual migration back to ITS services will provide additional

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resources and efficiencies. This can be accomplished through

negotiation, regained trust and performance. For several years to come,

overall IT spend at the University will drop while the actual ITS budget

grows.

• New Service Architecture. Transformation into a Balanced

System™ will enable ITS to benefit from the emergence of a new Service

Oriented Architecture for ITS. In this new model, cost of infrastructure

will be reduced while movement to a modular service increases

capability while also decreasing expenses.

Change requires being a risk-taker not a risk-seeker. But, the

primary risk in change is ignorance. The transformation will involve

continuous risk assessment and risk mitigation to ensure that they are

fully understood and weighed as decisions are made.

“Change nothing and nothing changes”

-Chris Lozano, C4I Systems

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THE APPROACH TO CULTURAL TRANSFORMATION

C4I’s goal in its recommended approach for The University’s

ITS Transformation Strategy is to help the university improve business

performance -- to unleash the power of ITS by unlocking the potential

of their people, processes and technology. By aligning the

organization in an integrated systems approach as well as engaging

and energizing the people toward one focus - living the The University

ethos that supports your purpose and mission – we significantly

increase ITS’s potential to perform at a higher level. And that

translates into bottom-line results.

The C4I strategy is an enterprise-wide Systems Engineering

(“SE”) approach used and implemented through the following four-

phase integrated process. Each phase is integral to success. Only a

systems engineering approach can capture complex relationship of

ITS to the entire Enterprise. The process injects

– Accuracy

– Efficiency

– Thoroughness

– Connectivity

– Total solution (best value)

The four phases are:

• Discovery. In this phase we base-line performance looking at both

analytical and empirical information. This is deconstruction.

• Planning. In this phase we engage in detailed planning to bring a

framework of understanding about the current and future states. This is

re-engineering people, processes and technology.

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• Alignment. In this phase we complete transform the organization

through alignment of selected people, processes and technology.

• Sustainment & Improvement. In this phase we track progress

against selected metrics and make adjustments to ensure

RISK ASSESSMENT AND RISK MITIGATION

Change requires being a risk-taker not a risk-seeker. But, the

primary risk in change is ignorance. The transformation has and will

continue to involve continuous risk assessment and risk mitigation to

ensure that they are fully understood and weighed as decisions are

made. Information and process will be our ally.

Like all standards-based processes, they are only as useful as

they are practiced and followed. Concepts of Risk Management are

designed to include the risk resulting from change, inadequate or failed

internal processes, people and systems, or from external events

THE UNIVERSITY ITS TRANSFORMATION

Within the four phases of transformation are incorporated the six

steps of the Fusion Cell Planning Process™. The FCPP is comprised of

both internal and external components and is an integrated and rapid

planning process designed to create momentum and order for action.

Here is a timeline and summary that captures the scope and depth of

work completed to date.

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TIMELINE (external facing) TIMELINE (external facing)

Jan Feb Mar Jan Feb Mar Apr May Jun Apr May Jun Jul Jul

Stakeholder Baseline Evaluations Stakeholder Baseline Evaluations

Rationalization Planning Team Rationalization Planning Team

Value Proposition/ROI Analysis Value Proposition/ROI Analysis

Brief University Brief University

SLA Development SLA Development

• •What is working? What is working? What is not? What is not? What would you change? What would you change? What would you keep the same? What would you keep the same?

• •University Mission Statement University Mission Statement • •Executive Planning Guidance Executive Planning Guidance • •ITS Strategic Mission ITS Strategic Mission • •ITS Tasks ITS Tasks • •Customer Definition Customer Definition • •Customers Customers • •Core Services Definition Core Services Definition • •Core Services Core Services • •Supported Non Supported Non- -Core Services Definition Core Services Definition • •Supported Non Supported Non- -Core Services Core Services • •Unsupported Services Unsupported Services • •ITS and Competitor Strengths and Weaknesses ITS and Competitor Strengths and Weaknesses • •Operational Assumptions Operational Assumptions • •Subject Matter Expert Shortfalls Subject Matter Expert Shortfalls • •Resource Shortfalls Resource Shortfalls • •Constraints Constraints – – Restraints Restraints • •Information Requirements Information Requirements

• •Total Cost of Ownership Total Cost of Ownership Efficiency Analysis Efficiency Analysis

Mission Analysis COA Dev

COA Modeling

COA Comp/Dec Plans Transition

TIMELINE (Internal facing) TIMELINE (Internal facing)

Jan Feb Mar Jan Feb Mar Apr May Jun Apr May Jun Jul Jul

Transformation Transformation

Baseline Performance Baseline Performance

Initial Operational Changes Initial Operational Changes

Revised Operation Changes Revised Operation Changes

Draft Org Chart Draft Org Chart

Work Flow Analysis Work Flow Analysis

Capability Requirements Capability Requirements

Revised Org Chart Revised Org Chart

Service Model Selection Service Model Selection

Develop Transformation Plans Develop Transformation Plans

• •Value Value- -based based Planning Culture Planning Culture Process/Standards Process/Standards Ethos Ethos Operations Centric Operations Centric Mission Focused Mission Focused Customer Driven Customer Driven

• •Operational Synchronization Operational Synchronization • •Process Alignment Process Alignment • •Responsibility Revisions Responsibility Revisions

• •Standardized Metrics Standardized Metrics Financial Analysis Financial Analysis Trends Analysis Trends Analysis

• •High Level Concept High Level Concept Straw Man Straw Man

• •Match Services to Organization Match Services to Organization Test for Weaknesses Test for Weaknesses

• •Capability Study Capability Study Capacity Study Capacity Study

• •Projected Numbers Projected Numbers Mapped to Rationalization OPT Mapped to Rationalization OPT

• •Service Oriented Architecture Adoption Service Oriented Architecture Adoption

• •Use PM Structure Use PM Structure 12 12- -18 Month Cycle 18 Month Cycle

Mission Analysis COA Dev

COA Modeling

COA Comp/Dec Plans Transition

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I. DISCOVERY PHASE

a. EXTERNAL

During Discovery, we worked to understand the organization’s

performance in its current state. This is deconstruction. Change

without understanding the current state is like re-arranging deck

chairs on the Titanic…pointless. We turned first to the stakeholders of

The University, visiting every Dean and Vice President, together with

countless staff members in understanding the customer’s perspective

on performance and problems. Chris Lozano spent over 100 hours in

meeting with stakeholders throughout the university listening to their

concerns, and hundreds of hours within ITS assessing and

architecting a solution. We asked the stakeholders four questions:

• What is working?

• What is not working?

• What would you change?

• What would you keep the same?

The answers were virtually unanimous in their negativity. Here is a

listing of comments that were noted by a majority of those interviewed:

• Say “No” without offering solutions

• Obstructionists

• Don’t understand our needs

• Not innovative

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• Lack technical expertise

• Lack of accountability

• Poor Banner implementation

• Unworkable committee structure

• Ineffective use of limited resources

• Lag behind other universities in use of technology

A sampling of comments gathered from interviews and solicited by

faculty and staff on behalf of this effort follows:

“We are simply behind the times when it comes to technology for students. Simply go to the web site of any major university and the services provided – podcasts, on-line assistance, multi-media capabilities, computer support in the classrooms, etc. is daunting. We cannot even use DVDs in many classrooms.”

“Students expect everything in digital format. We are dealing with an entirely new generation of students - for better or for worse, it is what it is. Having systems that support what they expect in exchange for their tuition dollar is a key component in the "retention" issue that the administration is so concerned with right now.”

“There is no consistency in hardware purchase policies. I was told that I could not apply my development fund money to purchase a Mac computer. I personally purchased my own AND was REQUIRED to purchase a PC out of my development money. I have turned on the PC that I did not need five times in two years. However, colleagues across the campus have Macs and now someone in my college is getting a Mac. There should be a faculty option of desktop or laptop, PC or Mac.”

“University and ITS SHOULD GET RID OF ALL BUREAUCRACY and allow faculty to have the freedom to buy their own computers. ITS folks should focus on "IT" such as the worst email system and should not do unrelated things like HELPING faculty to purchase a computer that a high school student can do.”

“If the desire for THE UNIVERSITY to become a first-rate research university

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is more than just a slogan, then the university MUST give us the tools we need to make it happen. At present, I would rate the state of technology here about equivalent to 1995.”

“Users are not brought into purchase decisions and money is sometimes not spent wisely. We have smart screens and the related software in our college. First, there was no inquiry regarding whether these tools would be useful and of value. Second, faculty were not trained to use these tools. In addition, there is no place to practice with the tools as our classrooms are almost always in use. I don’t know of one person in my entire college that uses these tools and all of the classrooms are equipped with them. This was an expensive investment with no return.”

I think as Chair of a Department I would be tolerant of deficiencies in ITS if I knew how they were being worked on. I can imagine that it is difficult to manage what is a rapidly changing field. Yet, there is virtually no communication from ITS. Instead, we are kept in the dark as to what is going on in ITS to improve the situation. Frankly, this exhausts my patience.

“There must be evening (late!), weekend, and holiday tech support, readily accessible to students, staff, and faculty alike. The current help desk staffing time of Monday-Friday during the day is wholly inadequate. Further, I’ve had the experience of being told, when there was clearly a server problem over a past spring break, that I should call Public Safety to let them know of my login difficulty and then they (Public Safety!) would contact the appropriate ITS personnel. Ridiculous!!”

“The problems with THE UNIVERSITY ITS are too numerous to mention. The fundamental issue is that they are supposed to help us do our jobs better, period. If an IT system change makes my life harder, or wastes more of my time, it should not be implemented. Fulfilling external mandates is not an excuse for uncompensated bureaucratic work shifting, which is what ITS specializes in. They need to fulfill their mandates without leaning on me. I don’t ask them to do my job and I don’t want to do their job.”

b. INTERNAL

Second, we turned internally and looked performance by

interviewing more than half of IT personnel and reviewing what few

performance metrics were available, like customer service logs. In

evaluating their own performance, ITS personnel noted these trends:

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• Workforce that is demoralized and fatigued

• Eager for change

• Need for mission clarity

• Need for decisiveness in leadership

• Need for accountability of leaders

• Need for internal cooperation across organization

c. COST ANALYSIS.

A significant component to fully analyzing current state of ITS as

well as planning for transformation was looking at expenditures on

information technology throughout the university. We wanted to

understand what the real cost of IT was. It has been commonly cited at

the University that “lack of resources” has been the culprit for past ITS

failures and there is no way to validate or invalidate that without

understand how much is actually spent on IT.

A detailed analysis of cost expenditures (attachment XX) was

prepared for C4I by XXXXXX to fully understand current expenditures as

well as forecast future savings. Analysis further enabled us to both

draw inferences about effect and causation as well. The University

operates off of an incremental budgeting process where every entity

begins with a base-line budget. In this system external customers of ITS

do not contribute for their basic services. However, nothing prevents

them from spending their own budget on IT services. In many cases ITS

customers contribute by agreement for various staffing positions that

support them.

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Currently, 55% of total expenditure on information technology

occurs outside of ITS. While there will always be a need for some non-

ITS expenditures this number corroborates information gathered

throughout the University that dissatisfaction and uncertainty about ITS

performance has compelled various University customers to spend their

own money for IT services they believe are the responsibility of ITS.

These numbers indicate that the true cost of IT across the

university is far greater than previously understood and that the

common belief that ITS problems are principally a “lack of resources” is

premature in its conclusion.

This presents two competing and conflicting systems for

provisioning services at The University and is both problematic in its

administration as well as in allocating expenditures. The true cost of

information technology is greatly reduced by these two systems. In

other words, it is impossible to know what the right level of spend is

required when inefficiencies prevent extracting full value from the

current spend.

Gaining of efficiency in the future will mean a greater value for

the current expenditure and eventual alignment between the needs of

the university with the expenditure on information technology. Aligning

the organization, budget, services and processes will ensure that the

right level of expenditures are made and that full value is derived. Only

then will the true cost of IT services and corresponding needs be

understood.

d. TALE OF TWO SYSTEMS

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Under IT’S the current structure is a confusing labyrinth of both

centralized and extremely decentralized services. The organizational

structure provides central services along traditional lines while many

people are “distributed” as sole providers of support for various

organizations within the University. However, some services such as

break-fix are spread throughout the organization both centrally and

distributed. However, there is no central management of these

resources and no central communications internal or external to the

organization. It is not uncommon for resources to be in short-fall in one

part of ITS while being under-utilized in another, without any awareness

on either party of this fact. In this environment you are only certain of

one thing that you will always be under or over capacity, creating a very

inefficient model.

The present delivery model is a traditional infrastructure-heavy

structure that while providing depth in certain areas is not readily

adaptive to a changing environment; be it technology, cost or

innovation.

As stated previously, various schools and administrative units of

the University have acquired sometimes sizeable IT organizations that

they fund and administer separately. These organizations make many

decisions about direction, policies, budgeting and resourcing without

consultation with central ITS. While not all so, many of these

relationships are contentious. Such decentralization prevents any

common awareness of needs, resources and issues. Similar to the

challenges of central ITS, there is no general awareness or coordination

of efforts with these decentralized staffs. In addition to 55% of the IT

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spend, an additional 60 personnel are employed by individual schools

and organizations to support their IT needs that do not report to ITS.

e. ORGANIZATIONAL DYNMAICS

The relationship between ITS and the greater University

represents a deep and enduring problem that manifests itself in ITS and

customer behavior. The diagram below represents both an unhealthy

ITS-customer relationship as well as the current misalignment of ITS

and its customer needs. It represents misalignment of expectations

and break-down of organizational process and integrity. It is confusing,

ineffective and inefficient. Any true change must involve the institution

of organizational and process integrity.

Current State

• Inefficient • Undisciplined • Process loss • No organizational integrity • Chaotic • Impedes operations • no customer focus

ITS

Customer

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The next diagram represents what an effective relationship between ITS

and its customers would look like. It is an organization that has a strong

ethos, process and standards and whose mission is aligned with resources

and customer expectations. It is elegant and simple in both design and

operation.

C4I Systems, Inc. Proprietary & Confidential

Effective

Customer

ITS

• Efficient • Disciplined • Process driven • Org. integrity • Responsible • Orderly • Enabler • Customer focus

We must ask ourselves this critical question about each

proposed change “Does it help support the mission for ITS and the

greater University?” If it does not then we will reject the change

f. ROOT CAUSE ANALYSIS

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Based on analysis of information available internal and external

to ITS root causation for current state of ITS is as follows:

• Fear of change. Transformation requires change but change often

engenders fear in people and organizations. Change nothing and

nothing changes. Consequently, you cannot have a different outcome

by doing more of the same. The fear of change at the University has

impeded past attempts to change how ITS operates.

• Lack of effective leadership and vision. Past Chief Information

Officers (“CIO”s) were unable to provide strong leadership to steward

the organization through effective change. Ultimately, failure or success

of an organization rests with the leadership.

• Lack of mission clarity. Not a single person interviewed could

articulate a mission for ITS. Without a clear understanding of a mission,

no organization can budget or manage resources and customer

expectations effectively.

• Lack of established expectations between ITS and customers. There

was a noteworthy and complete absence of any expectations with

customers. There were no Service Level Agreements or other

documentation that could articulate the basics, like: What services does

ITS offer? What are the standards of performance? How do we

measure performance? ITS cannot be expected to deliver a service or a

standard of service that cannot be articulated. Consequently,

customers that have no expectations are free to choose what

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constitutes satisfactions, a true recipe for disaster. This is the single

biggest point of failure encountered.

• Lack of effective strategic and operational planning. Also completely

absent from this organization was an actionable strategic plan to which

resources could be budgeted against and performance measured.

This created an atmosphere that was nearly completely reactive in

nature. Plans are not used and plans that are, are not followed or

frequently changed. The University’s ITS Strategic Plan was reviewed

and found to be informative but without systemic changes to make it

operational it is meaningless.

• Lack of standards-based processes. Although there are significant

strides being made in the implementation of business best practices

like Quality Assurance, Change Control, Identity Management, we are far

from the depth of standards-based processes that represent best-

practices and produce the desired “repeatable predictable results”.

• Lack of organizational structure that embodies process. The current

organizational structure is a microcosm of what is wrong with ITS today.

It is confusing, flat and broad-banded. It lacks an operational “center”

that focuses on management of resources and effective communication

is almost completely lacking. Information is not readily shared and is

often wrong. Furthermore, ITS lacks organizational integrity for a variety

of reasons which means no respect for structure. Customers are free to

roam the organization and co-opt resources at the expense of others.

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• Lack of qualified employees in critical areas. There are many

talented and capable people in ITS. However, there are areas that lack

depth. Simple reasons like lack of mission clarity, leadership and

compensation mean that ITS does not recruit or maintain the most

qualified and the resulting turnover and lack of quality affects

performance.

• Confusing governance. This environment has been further

complicated by a difficult governance system. The formal system is a

labyrinth of committees chartered to oversee various functions.

However, the lack of coordination of these efforts both internal and

external to IT and the failure to hold these committees accountable

often resulted in confusion, inaction and outright obstruction.

• Failure to treat ITS like a business. While not a popular notion to

some, the University is at its core a business venture and businesses

have to show value. Businesses are guided by sound principles that

ensure performance to specific standards. For instance, accreditation

is central to the University’s viability today and in the future. This is a

best practice for higher education. Likewise, ITS is a business unit that

supports higher education. While it must adapt itself to the

environment it supports, it must be governed by the sound principles

of business because it is not outside of those principles. Adaptation

of best practices for ITS will provide value to the University and better

enable the University’s mission.

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II. PLANNING PHASE

During the Plan Phase, we began to work internally to augment

our newly defined direction and root cause analysis (desired culture

aligned with purpose and mission) with key behavioral practices for all

employees as well as leadership practices. In this phase we re-

engineer people, processes and technology to bring about desired

change. This is the cornerstone of the alignment strategy and is the

new lens through which every decision is looked at and every action is

planned. Armed with an understanding of your current state reality

and a clear picture of all the components of the desired state, C4I

began to develop a high-level Rationalization Plan to create change

throughout the organization.

A cultural transformation needs to have a focal point... a

foundation from which the desired culture can evolve

a. VISION, MISSION, STRATEGIES, TASKS & GOALS

The new system must be build around a vision that can sustain

change and allow ITS to be a truly enabling capability. When done

properly, ITS enables the University to teach better, research better,

produce better scholarship, attract and retain better students and

increase contributions.

b. THE FUSION CELL PLANNING PROCESS™

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In business, as on the battlefield, you will always operate in the

absence of complete information. No aspect of business operations are

more misunderstood, or done so poorly as effective planning. Done

poorly it is ad hoc, poorly conducted, incomplete, untimely and wrong.

Done properly, planning can bring order to chaos, form to uncertainty

and action. The Fusion Cell Planning Process (FCPP) supports the

Fusion Cell philosophy of decisive action in the midst of uncertainty.

Since planning is an essential and significant part of command and

control, the FCPP recognizes leadership’s central role as decision-

maker. The FCPP helps organize the thought processes of an executive

and his/her staff throughout the planning and execution of business

operations. It gives a framework upon which decisive action can be

taken.

There are six steps to the Fusion Cell Planning Process™

(Attachment B). They include:

• Mission Analysis

• Course of Action Development

• Course of Action Modeling

• Course of Action Comparison & Decision

• Plans

• Transition

A planning team to effectively rationalize ITS C4I asked for and

was a pillar of effective planning is integrated planning. Integration

enables an organization to leverage knowledge and ensure that any

plan is crafted with a broad awareness of needs and effect.

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c. THE RATIONALIZATION PLANNING TEAM

To prepare for rationalization, C4I requested the creation and

participation of a Rationalization Planning Team to participate in the

heavy lifting that would be required in the complex process. The team

utilized C4I’s Fusion Cell Planning Process™ . This methodical

process forms action through an exercise in self-assessment and

collaboration. The power in the written word in a planning team is

that it must be believed and agreed upon. The role of a planning

team is not to make decisions but to complete analysis and

synthesize into recommended actions.

A planning team is a dynamic, ad hoc organization formed by the

executive to develop the course(s) of action. It is typically of limited

scope and duration. This approach to planning stresses the need for an

integrated planning team that represents the appropriate business

functions. Additionally, the Planning Team must be able to maintain

Situational Awareness of both current operations and future plans.

The planning team was not intended to be representative of all

customers rather, it was selected to represent four primary customers:

faculty, administration, students and ITS. The hall-mark of effective

planning is that planning is continuous and iterative and it has always

been understood that the output of this work would be reviewed and

refined over time. For the first phase (Mission Analysis) the team met

for seven consecutive weeks representing over thirty hours of effort.

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Participants included:

• Department of Biology

• Communications Sciences & Disorders

• AVP & Controller

• Dir. Enrollment Management Information Systems

• Dir. Development Services

• Administrator Quality Assurance

• Student

• ITS

• ITS

• ITS

• ITS

• Chris Lozano, C4I Systems, Inc. (facilitator)

Subsequent steps of the FCPP have focused principally internal

to ITS although information about progress have been periodically

circulated for review and comment and the entire planning team.

d. LEADERSHIP DIRECTIVES

On January 2, 2008, the Chief Financial Officer engaged Chris Lozano

and C4I Systems to “perform a comprehensive review of ITS in order to

organize, equip, train and deploy the information technology services

that support the strategic goals of the university and the needs of the

customers it serves."

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e. STEP 1: MISSION ANALYSIS

MISSION ANALYSIS MISSION ANALYSIS

“Success is a matter of planning and it is only careless people who find that Heaven will not help their mortal designs.”

Themistocles, 480 B.C.

Mission Analysis

COA Development

Transition

COA Modeling Plans

Development

Leadership Directives

COA Comparison & Decision

Execution

i. Purpose of Mission Analysis.

A characteristic of all corporations that is extraordinarily

powerful, but often overlooked, is identity - what a corporation stands

for - that is demonstrated through a unique personality. This

corporate personality motivates actions, and, over time, firmly

establishes a corporation's identity so that its actions are predictable.

Therefore, shaping the right identity that will drive desired behaviors

is critical to a corporations' success. To shape or remold the right

identity begins with defining the mission, what the company intends

to do and how it intends to do it. Without clarity around "what we do,"

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it is difficult to define "who we are" or "what we want to be."

Companies without a clear mission, therefore, are also missing a

clear identity, and over time, they tend to flounder.

In short, mission is the foundation on which a company and its

employees build a sense of identity and purpose. The statement of

the mission describes what the company does, and often includes

how this is accomplished. It provides a critical communication vehicle

for employees, customers, and the public...a touchstone, a focus for

the business. It is important to emphasize that how people think

about a company and the assumptions they make are powerfully

influenced by the mission statement. Crafting the right mission

statement, therefore, is one part of the company's fundamental

"blueprint" for success. Other parts of this blueprint include the

corporate values and vision.

What is a mission statement? It is a statement that describes

"what we do and how we do it". In fact, recent research' has found

that mission statements, which describe both the "what" and the

"how", i.e., the ends and the means, make a difference in

organizational performance. "This study has shown that mission

statements - from their pre-development rationale to their post-

development alignment with employee behaviors - have a positive

association with performance and make a positive contribution

towards it. Thus mission statements count!""

The approach to developing a mission statement is both a logic

and creative activity of which creation of a mission statement is the

last component to the exercise. A mission statement describes what

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an organization does - the ends and the means. The process of

developing the mission statement needs to tap the essence of the

organization, and that requires a blend of executive perspective and

direction as well as employee input. The approach then is iterative,

with an initial draft being reviewed, edited, rewritten and socialized.

Developing a Mission Statement can only be achieved as the

last step in a detailed process of analysis. In developing our Mission

Statement we discussed and reviewed each of the following:

• University Mission Statement

• Executive Planning Guidance

• ITS Strategic Mission

• ITS Tasks

• Customer Definition

• Customers

• Core Services Definition

• Core Services

• Supported Non-Core Services Definition

• Supported Non-Core Services

• Unsupported Services

• Operational Assumptions

• Subject Matter Expert Shortfalls

• Resource Shortfalls

• Constraints-Restraints

• Information Requirements

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ii. University Mission Statement.

“The Mission of The University…….”

iii. Executive Planning Guidance. Given to us by the CFO to

assist in developing our Mission.

“THE UNIVERSITY is a richly diverse community of

students, faculty, clinicians, researchers, staff and

administration that contribute to the university mission

of teaching, research, clinical care and community

service. ITS must be capable of enabling all customers

to deliver on their missions while enabling the greater

mission of the university. What is the real mission of

ITS? What are the core services we should offer and how

do we deliver those services? Please make your

recommendations”

Iv ITS Strategic Mission. From existing documentation.

“As a strategic partner in development and support of

the The University technology environment, Information

Technology Services provides leadership, fosters

collaboration and facilitates technology integration and

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process improvement for the The University Community.

Information Technology Services applies technology,

staff and information to create, sustain, secure and

support a technology environment that is trusted,

reliable, innovative and effective.”

v. ITS Tasks. Not intended to be dispositive but facilitate

discussion. Tasks are not the same as services but are important to

understand for developing a service catalogue.

CUSTOMER-FACING

• Infrastructure life-cycle management leadership

• Provide technology leadership to THE UNIVERSITY mission

(policies, process, strategy)

• General tech support (make my computer work)

• Provide core and non-core services (as required)

• Keep computing systems and data secure and virus free

• Provide enterprise applications, services & resources as

needed

• Provide integration services for specialized applications

• Product management, Project management and

implementing new technologies

• Instructional technology life-cycle management

• Manage industry and technology enhancement and trends

(standards incl.)

• Provide information and knowledge management

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architecture

• Develop collaborative and appropriate training/testing

certification program

• ITS service level agreement management

• Timely communication of policies, services, and operations

dashboard

• Continuous customer communications and relationship

building and management

• Provide leadership in prioritization and selection of

technology initiatives and projects in conjunction with

university technology strategy

• Data maintenance and integrity

• Technology acquisition strategy

• Publish & communicate standard and non-standard

systems list

• Asset/license management

INTERNAL-FACING

• Continuous development of skills and expertise to

accomplish mission

• Performance reviews

• Testing and QA environment

• Establishing and maintaining Lines of Communication

• Operational level agreements

• Internal controls/management processes & documentation

• Development & management of internal tools

• Key performance indicators for internal operations

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• R&D environment

• Auditing and monitoring processes

• Content management of ITS website

vi. Customer Definition. The OPT quickly realized that we

could not agree on basic definitions so substantial effort was given to

definitions, beginning with a broad customer definition.

“University customers, both internal and external to

whom IT services are provided.”

vii. Customers. To reach these definitions we first broke

customers out into individual customers then rolled them back into

these five basic groupings for simplicity and effectiveness.

• Faculty. Teaching, research and service; divided into

collective needs, clinics, research and creative activity.

• Staff. Administrative divisional services, administrators,

general employee, Deans/Colleges.

• Students. Campus resident, off-campus, student on

campus, prospective

• Clinical. Doctors, patients, hospitals & clinics

• Other. Alumni, trustees, collaborative partners, decedent

families/estates

viii. Core Services Definition. This was a spirited discussion

that was important because it recognized that a core service was not

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necessarily related to the form of delivery. This will free us up in the

future to look at a variety of innovative and emerging service models.

“Those enterprise-wide technology services, regardless

of delivery method; required to support mission critical

functions that are essential to the entire university and

its stakeholders”

ix. Core Services. Like other definitions, is not intended to

be dispositive, but represent a collective understanding of what we

are and what we are not as an IT organization.

• Infrastructure for core systems (phones, network, cable tv,

server, storage, IDMS)

• Integrated collaboration tools

• Enterprise software

• ERP

• Learning management systems

• Integration, Product Management, implementation & PM

• Core services training

• Technology evaluation

• Desk-top standards

• Tier I service desk for everyone

• Tier II service desk for core services

• Information Protection

• Data architecture and business intelligence

• Enterprise-wide knowledge management

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• Enterprise architecture

• IT business continuity and disaster recovery of core services

• Technology acquisition services

• Emergency Notification Services

• Limited Application development (buy v. build)

• Academic technology; architectural, acquisition,

implementation and support services

• Multi-media and level II/III classroom support

• Development of report writing templates

• Asset/license management

x. Supported Non-Core Services Definition. In developing

definitions, this category was added to recognize that there are

services that ITS should support or provide that are not within the

definition of Core Services.

“Other technology services, regardless of delivery

method, that are required to support mission critical

functions essential to one or more segments of the

university and its stakeholders. These services may be

supported through agreement”

xi. Supported Non-Core Services.

• Advisory services

• Departmental specific applications

• Non-ITS security systems

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• Departmental research computing

• Department core services; including

o Library technology services

o Facilities technology services

o UMG

xii. Unsupported Services Definition. It was also obvious that

it was equally important to define what services ITS would not provide.

“Other technology services that do not support mission

critical functions essential to the university and its

stakeholders”

xiii. Unsupported Services. This enables ITS to focus in the

future in developing an organization of depth and quality. The exact

nature of which services goes on this list is ultimately to be negotiated

by ITS and its customers.

• Website content maintenance

• Curriculum spaces

• Support non-standard systems

• Support integration of applications that are not on our

technology roadmap and strategic plan

• Manage non-ITS projects

• Hosting of voice infrastructure

• Wireless LAN (provision)

• Infrastructure Moves, Adds, Changes

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• Commodity/functional training

xiv. Operational Assumptions. The most significant

component to effective planning is understanding the assumptions

that are used in developing a plan when there are unknowns. An

assumption is that which in the absence of proof to the contrary is

treated as true. Operating assumptions enable action in the absence

of certainty. Given their importance, it is extremely important that the

assumptions be carefully selected. Assumptions are not intended to

be carried into operations if possible and effort must be given to

validate or invalidate each as soon as possible. Assumptions carried

into operations are risk. The assumptions selected are:

• There will be no additional budget allocation for FY08

• The budget will be flat for FY09

• ITS demand will grow across the university (head count and

usage)

• FTE equivalent but not composition will be held constant

• Banner will remain our enterprise system through at least

2013

• Technology will continue to evolve rapidly and require skill

set enhancement

• Organizational capacity will reflect capability requirements

• Consumer technologies will continue to put pressure on

enterprise technologies

• Funding streams will continue to expect a high level of core

technologies

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• Curriculum needs will continue to require technology

integration

• New CIO by beginning FY09

• Organization of generalists headed toward organization of

depth

xv. Subject Matter Expert Shortfalls. Those specific skills we

need in order to effect transformation within ITS.

• CIO

• Information protection

• operations excellence

• technical certifications for specific areas TBD

• Knowledge transfer for single points of failure

• Knowledge management

• Identity management

• Knowledge depth

• Configuration management

• Service level management

• Root cause analysis – problem management

• Business analyst

• Testing & documentation

• Systems Integration

• Product management

• Business continuity/DR

• Academic technologist

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• Stronger PM/portfolio management expertise

xvi. Resource Shortfalls. Those resources we need in order

to effect organizational transformation.

• Business services management system

• Project portfolio management system

• Enterprise license management server

• Enterprise software delivery system

• Desktop management

• Redundant infrastructure

• Physical workspace

• Development and test environment

• Test tools

• Innovation test environment

• Monitoring review and reporting system

• Forensic tools

• Data center space

• Incident command structure

• Active security/intrusion Protection Device

• Technology life cycle funding

xvii. Constraints. Things we must do in order to transform

the organization.

• Provide technology support to approved users

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• Must formalize expectations through agreements

• Must meet professional standards for service delivery

• Win back customer confidence

• Select and prioritize work in coordination with external

stakeholders

• Must build operational focus to ITS

• Must adopt unified governance model

• Must build service catalogue

• Reinstitute organizational integrity

• Will build organization around highly qualified people in

positive environment

• Fill key personnel short-falls

xviii. Restraints. Those things we cannot do while

transforming the organization.

• Must not yield to political pressure or special interest

• Must stop doing things not in our service catalogue

• Must not say “no” without still helping solve problems

• Must not support unfunded mandates

• Must not adopt off-architecture solutions

xix. Information Requirements. Information we need to know

in order to develop the plan.

• True cost of IT university wide (actual and hidden)

• Return on investment

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• Volume of ITS service requests university wide

• Accurate asset information university wide

• Cost of operating assets university wide

• Internal/External skill assessments & employee career

objectives

• Industry metrics (KPIs)

• Customer survey information expectations

• Fr. Biondi’s technology delivery expectations as they relate to

university strategic objectives

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xx. Draft Mission Statement. This represents the collective

wisdom of the OPT with the understanding of the previous 18 steps.

“Provides formalized technology leadership and

services, regardless of delivery method, that enables our

customers to fulfill their roles in support of the greater

university mission of teaching, research, clinical care

and community service through an organization that

focuses on the customer“

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f. STEP 2: COURSE OF ACTION DEVELOPMENT

COA DEVELOPMENT COA DEVELOPMENT

“There are three types of leader: Those who make things happen; those that watch things happen; and those who wonder what happened” U.S. military saying

Mission Analysis

COA Development

Transition

COA Modeling Plans

Development



Execution

An organizational structure is at its most basic an embodiment of

process. During the Root Cause and Mission Analysis phases of

rationalization, significant issues were identified that need to be

recognized in any future structure:

• Standards-based processes. IT is a mature industry and is

populated by many proven best practices. Selecting the

standards, processes, metrics and auditing to these standards

will ensure a robust and stable organization.

• Diverse Customer Needs. A very diverse customer base provides

a unique challenge. A typical “one size fits all” approach satisfies

some concerns but inevitably fails to satisfy anyone. Likewise, it

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is a contributing factor in a shadow system of decentralized

resources. ITS effectively provides four separate business lines;

the University, faculty, students and administration. They must

be looked at separately and collectively.

• Disconnected Resources. The two competing systems need to be

blended into a single effective system that is neither centrally

managed while placing resources centralized and decentralized.

• Unified Governance. Our current governance model is confusing

and an impediment to progress, yet represents important and

legitimate concerns over standards and processes. A future

organization must find a model that takes into account customer

and ITS needs without losing stewardship and leadership.

i. Present Organizational Structure At The University.

The structure of ITS has gone through many iterations over the

years. It’s current composition represents a sequence of changes and

does not represent current staffing realities. There are a number of key

positions that are not staffed and the total number of ITS employees is

below what is authorized. Direct reports to the CIO include:

Project Management Office. This is an “above the line”

organization that has responsibility for establishing rigorous project

management methodologies. While providing project managers for

some projects, it more often provides expertise for ITS employees

fulfilling project management duties on many of the projects.

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Business Manager. This office provides typical business

management responsibilities like managing the budget, acquisitions,

contracts and office management.

Teaching, Learning, Research and Clinical Services (“TLRC”). This

group has the bulk of customer interactions. It provides specific

services as well as “technology coordinators” who represent that

customer interest. TLRC also has the role of coordinating actions with IT

professionals who work for non ITS organizations. These “distributed

staff” represent a large percentage of the total IT presence at the

University. Staff within TLRC have a broad range of expertise and

provide break-fix support, project management and application support.

Customer Service (“CS”). A small and understaffed organization,

this is the call center for ITS, providing some Tier I and Tier II support. It

is the primary entry point for most trouble tickets and work requests.

Enterprise Resources (“ER”). This organization represents the

technology backbone of ITS; providing applications, database,

infrastructure and data services.

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ii. Present State Of Technology At The University.

Current state of technology at The University is rather traditional

and consistent with IT organizations from the early to mid 1990s. By

today’s standards it lags far behind what is generally available in higher

education and is far behind what is the state of IT in greater industry.

ITS has been traditionally an infrastructure-heavy organization

with an emphasis on ownership. There has been significant investment

into new infrastructure and applications while many significant single

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points of failure have not been remediated. Each year presents a

challenge of investment in upkeep and change that do not always meet

changing customer needs.

Ownership means a continuously growing an decaying

investment. Infrastructure-heavy organizations are susceptible to

recession and down-turn in budgeting. They are in need of continuous

care and upgrade. For these reasons and because it has not always

been effectively managed ITS is commonly thought of as a “cost center”

rather than “value center” and in popular local parlance “a black hole”.

iii. Changing State Of Technology.

We are in the midst of the largest change in technology since the

advent of the internet in the early 1990s, the move to “agile” systems.

At one time enterprise meant access to depth, quality, continuity and

innovation. Enterprise systems were the province of large corporations

that had the finances to invest in large infrastructure. However, we are

on the cusp of a fundamental shift where enterprise-level services are

available to anyone at consumer prices. This is known as the

“commoditization of enterprise”. In this shift, enterprise-type services

are increasingly offered in the form of services such as “Software as a

Service” (SaaS), like Google Apps.

For consumers like The University it means the end of mandated

reliance on heavy infrastructure and the shift to more agile

environments that are capable of synchronizing technology needs with

the evolution of technology. It also means a chance to change

budgeting focus fixed to variable expenses. These changes mean that

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organizations like The University will drive innovation, rather than being

driven by it and pay only for what they need.

iv. Building For The New Paradigm At The University.

C4I Systems envisions an ITS organization that is balanced,

customer-centric and agile. At its core is what we call at C4I

“Technology Transparency™”. In a technology transparent the focus

shifts from the technology to a services presentation layer. ITS turns

data into information through services so that information is used by our

customers to become knowledge.

When customers can focus on the service, ITS can choose the

best technology and delivery model for the University; ensuring that the

right technology is available to enable our diverse needs.

6/9/2008 C4I Systems, Inc. Proprietary & Confidential

ITS

DATA

Clinicians Staff Faculty Students

INFO

KNOWLEDGE

Services

Ent. Apps

Internet

Research Super comp

Collaboration

Global systems

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vi. The Vision

• Transparency. Enabling capability that is felt and not seen.

• Agility. People, Processes and technology that continuously

synchronize with changing customer needs.

• Equity. The same base-line of technology for all regardless of

individual or organizational wealth.

• Innovation. Continuous innovation of people, processes and

technology for ITS and customers.

vi. Concept Of Operations.

The new system is a balanced and agile hybrid, taking the best

aspects of centralized and decentralized resources into a unique and

adaptable organization that delivers on the Vision with these principles:

• Customers.

• Plans. A culture of planning is the foundation for success in any

operation. Planning is the means by which this organization goes from

being reactive to proactive. Planning gives shape and direction to future

actions and a framework for operations.

• Operations. An operations-centric organization effectively

manages its resources by managing resources to a plan that is

outcome-based. It synchronizes and de-conflicts

• Governance. Strong governance is the means to deliver

repeatable, predictable results. Standards-based processes for things

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like Quality Assurance, Identity Management, Change Control,

Application Development, Information Security and Project

Management; coupled with strong governance that ties internal and

external operations reduces the friction that reduces the effect of

limited resources.

vii. A new ITS: The Balanced System™

The new structure is an embodiment of process and the guiding

principles of: customers, plans, operations and governance. Vision is

driven by the CIO from input at all levels. Vision is turned into plans,

plans into operations and governed by standards-based processes and

business best practices. Operations will continuously synchronize and

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de-conflict to ensure that resources are used in the most effective and

responsive manner. A balanced system yields predictable, repeatable

results in dynamic operations and gives true agility.

The proposed structure is a hierarchical structure with overlaid

matrix responsibilities. This hybrid provides flexibility within structure. It

is comprised of these peer groups: Executives, Directors, Managers and

Staff. It is a rejection of existing broad-banding and reestablishment of

positions commensurate with responsibilities.

This Balanced System™ is specifically designed to benefit from

the changing nature of IT from infrastructure dependence to an agile

environment of service architecture.

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1. CLIENT MANAGEMENT GROUP

Understanding customer needs in such a diverse environment is

complicated and requires dedicated resources. The Client Management

Group (“CMG”) exists to maintain specific knowledge of academic,

medical and business customers while managing relationships at the

executive level. This is a critical role to envisioning customer needs that

can be met through effective planning as well as resolving significant

problems that affect the customer.

The CMG splits out the role filled by TLRC too coordinate at a high

level while enabling the Customer Service Group to focus on customer

at the daily interaction level. The CMG sells the ITS story to the

University. The CMG works closely with the CIO to develop vision by

providing critical insight into customer needs. The three positions are

the Business Technology Officer, Medical Technology Officer and

Academic Technology Officer. Actual titles and governance with external

organizations need to be further developed but the concept will remain

the same; representing executive needs.

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2. AVP – DEPUTY CIO: GOVERNANCE

AVP & DCIO

Change Control Manager

Information Security

QA Analyst

QA Analyst

Admin/ Documentation

Specialist

Security Analyst

Change Management

Change Control

Change Management Organization

QA Analysts are responsible for: Performing BIA BC Planning Contingency Planning DR Planning and Coordination Emergency Preparedness Training QA Socialization and Training Service Delivery Framework Design & Implementation (ITIL) Service Level Management Framework

Responsible for: QA collaboration and scheduling QA administrative support Managing and maintaining QA web presence Managing all QA related documentation including SLAs, SOPs, Desk procedures, and audits

Security Analyst is responsible for:

Scheduling and monitoring all security and QA audit functions Penetration Testing Maintaining and managing annual audit documentation Monitoring logical access reports and reviews Coordinating logging and review functions with ITS divisions Assist ISO with risk assessments, planning, and security socialization

In the balanced organization it is imperative that the

organization’s operations be based on sound principles of standards-

based processes. The Deputy CIO would be a new position within the

ITS structure. The Deputy CIO will have responsibility for establishing

standards and policies; auditing performance and final authority on

compliance with standards. This arms-length relationship with the

operating side of the organization ensures fidelity in the approach.

This organization will replace the labyrinth of committees with a

unified structure that will have the principle role of interacting with

external committees and organizations within the University in

establishing in articulating and enforcing ITS policies and standards as

well as the focal point for discussion about prioritization of effort. The

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following diagram was prepared by Tim Brooks to illustrate the proposed

interaction.

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3. CUSTOMER SERVICE GROUP

Support is typically broken down into two types: centralized and

decentralized support. In a healthy system centralized is synonymous

with “core” and decentralized is synonymous with “non-core” but that

rarely is the case and the University is no exception. Understanding

this basic distinction permits us to focus on how to most effectively

deliver to a diverse organization that has a need for both.

It is typical for IT organizations to seek to centralize all services

because it simplifies management of resources, enforcing policies

related to technology and expenditures. However, what a pure

centralized structure achieves it loses in adaptation to changing

customer needs when they are diverse. The University has an extremely

diverse constituency that does not lend itself to effective operations

under a purely centralized model.

Decentralized services are typically our supported non-core

services like Electronic Health Records and other specialty applications.

However, it currently includes things like break-fix. It is typical for

customers to seek to gain as much control over resources as possible

which means decentralization or direct support. In a purely

decentralized model, a customer gains control of resources at the

expense of efficiency of the enterprise.

The heart and sole of the new ITS organization will be the

Customer Service Group. It takes the remnants of TLRC, Customer

Service and break fix from Enterprise Resources and reorganizes them

into a purpose-built task organized group. This “spoke and hub”

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decentralizes the presence ITS by clustering capabilities into pods

throughout the University, while maintaining centralized management.

These groups will be located and configured to reflect the diverse

nature of the University. Each pod will lead by a customer service

manager and contain; help desk, break fix, application and classroom

support and technology coordinators. The specific composition is

designed to mirror the needs of that local customer.

These local pods will be the primary interaction with ITS and the

first point of escalation. It will enable each center to better understand

their customer and more rapidly respond to customer needs while

building a trusting and strong relationship. It replaces the frustrating

“74000” experience of impersonal service and places a premium on

knowing the customer and customer satisfaction.

The following is a conceptualization of the pod configuration.

Specific locations and compositions are to be determined by

discussions with stakeholders. Transformation to these pods is

intended to be sequential with the first pod being used to establish

processes, metrics and standard operating procedures before

subsequent pods are established.

The pods give pod members a focal point for solving problems,

sharing information and professional growth.

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4. PROJECTS & PLANS GROUP

A vision cannot effectively become action without a plan. The

Plans & Projects Group takes the Project Management Office and adds

planning and training responsibilities. The P&PG will utilize a rolling

five year plan that will develop an annual five year plan designed to

project technology needs far enough out in advance to ensure proper

planning and budgeting for all parties. While the P&PG has primary

planning responsibilities, planning will be conducted utilizing integrated

planning. The P&PG closely coordinates its actions with the CIO, DCIO

and all Directors of ITS.

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5. OPERATIONS GROUP

The Operations Group is a new structure within ITS and

represents the operational focus that has been so lacking in ITS. The

role of the Operations Group is to manage resources on a daily basis.

The Director of the Operations Group will be responsible for writing an

annual Operating Plan that is built off of the P&PG’s Strategic Plan.

The Director of the Operations Group is the final arbiter of

resources and responsible for making decisions on current operations

that keep ITS on track to accomplish all strategic objectives. The

Director will work closely with the CIO, DCIO and all Directors to ensure

that proper coordination is made.

An additional function of the Operations Group is to provide the

Enterprise Services Operations Center (“ESOC”). This is the heart of ITS

and provides a means to instantly parse information throughout ITS and

University. It will be the single point of awareness of the status of ITS

and its systems. The ESOC will report on all established metrics,

coordinate actions within ITS and de-conflict use of resources. Only the

ESOC manager is a permanent member, with each organization within

ITS providing members to the ESOC on a rotating basis. This rotation

builds familiarity with ITS functions

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6. INFRASTRUCTURE GROUP

With the emphasis on centralized operations the Enterprise

Resources is no longer needed as an umbrella organization. The

Infrastructure Group (“IG”) takes control of the hardware side of ITS. In

the near future, IG will begin an analysis of our infrastructure and

determine where economies can be gained from the advent of new

managed services.

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7. PRODUCTS GROUP

The Products Group takes advantage of the natural synergy that

exists between database and applications in an IT organization. It is

much more closely aligned to our primary customer groupings.

PRODUCTS GROUP

DIRECTOR

Learning Mgmt Systems

Service Mgmt Applications

Administrative Applications

Clinical/Research Applications

Collaboration & Web Apps

Banner Product

BIDBA Team (5)

Email Architect (Google

Remedy Product

Team Leader Student & Fin Aid

Team Leader Finance, HR &

Banner Support Specialist



Web & Portal Support




Team Leader

Oracle DBA

Oracle DBA

SQL/mySQL DBA

Workflow, Xtender Product Mgr

Web & Portal Support

Future TBD

Application Project Manager

Administrative Assistant

LMS Product Manager

LMS Support Specialist

Banner Support Floating

WebFocus Product Manager

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8. ADVANCED CONCEPTS GROUP

The second new group to ITS will be the Advanced Concepts

Group (“ACG”). This organization is chartered with finding technologies

that are needed to build to our Strategic Plan. In some cases these

technologies exist and in others they need to be developed.

Deployment of new technologies to the University can be accelerated by

closely aligning the actions of the ACG with the P&PG and emerging

technology outside of the University.

ADVANCED CONCEPTS GROUP DIRECTOR

Enterprise Architect

Information Security Architect

Test Lab Coordinator

Test Lab Coordinator

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vii. The New Ethos. Central to the new ITS organization will be

establishment of a new organizational ethos that will enable the

transformations to take root and succeed. They represent re-institution

of organizational integrity. It is imperative that all three of the following

exist with every position within ITS.

Responsibility. Each individual within ITS will be given

responsibilities that are clearly articulated along with expectations of

performance. Execution of these responsibilities will decentralized to

the lowest level possible.

Authority. Every individual will be given the authority to

accomplish the responsibilities and expectations of the position.

Accountability. Each person will be held accountable for their

performance and for the performance of the organization they may lead.

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g. STEP 3: COURSE OF ACTION MODELING

COA MODELING COA MODELING

“The best is the enemy of the good. By this I mean that a good plan violently executed now is better than a perfect plan next week”

General G.S. Patton, Jr., War As I Knew It

Mission Analysis

COA Development

Transition

COA Modeling Plans

Development


COA Comparison &

Decision

Execution

Once C4I had conceptualized an organizational structure

designed to embody the processes of an agile environment it was

important to model the structure to ensure it was capable of functioning

as designed. Chris Lozano lead ITS leadership through a series of

scenario-based “work flow” examinations using the newly designated

“core” and “supported non-core” services. In this process we looked at

who would design, build, support, own and initiate. This exercise

validated the basic structure was sound and achieved the core

principles.

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The process also revealed that we will have gaps in expertise

required to put the structure into full effect, particularly in applications

and customer service. A by-name study of existing personnel will close

the gap in some areas while new hires will be sought for others.

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h. STEP 4: COURSE OF ACTION COMPARISON AND DECISION

COA COMPARISON & DECISION COA COMPARISON & DECISION

Mission Analysis

COA Development

Transition

COA Modeling Plans

Development



Execution

The process of comparison and decision has been an ongoing

process rather than a linear one. In this case, alternative solutions have

not been examined since the new structure has been continuously

compared to existing structure for purpose of determining effect.

Implementation of the proposed structure will require University

approval for reclassification and establishment of positions, job

descriptions, compensation and structure. Migration to this new

structure will need to be progressive and designed to not disrupt current

operations and enable staffing changes to be made in a logical manner.

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i. STEP 5: PLANS DEVELOPMENT

PLANS DEVELOPMENT PLANS DEVELOPMENT

Mission Analysis

COA Development

Transition

COA Modeling Plans

Development


COA Comparison &

Decision

Execution

Development of as Rationalization Plan is concurrent with

operations and this document represents the initiation of effort in

planning for transformation. Transformation needs to be put into the

framework of Project Management through the ITS Project Management

Office to give it the rigor and structure that ensures successful

adaptation and sustaining success.

Additionally, initiation of the rolling five year strategic plan cycle

needs to begin this summer in order to build not only transformation of

the organization but to build a culture of effective planning;

synchronization with university operations and evolving technologies.

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III. ALIGNMENT PHASE

During this phase, we execute the Rationalization Strategy.

Built around the reorganization of ITS it will include transition to the

new ethos, organizational structure, governance model, standards

and service delivery model. People throughout the organization will

be given the opportunity to understand, believe, and commit to the

new direction by internalizing the ITS Compass and bringing it to life in

the operations of the company through action planning.

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a. STEP 6: TRANSITION

TRANSITION TRANSITION

Mission Analysis

COA Development

Transition

COA Modeling Plans

Development


COA Comparison &

Decision

Execution

Transition has already begun within ITS through this

Rationalization Process. We have embraced concepts such as

“synchronization” of operations, planning, communications and

optimization of resources.

Transition to the new Balanced System™ which is the

deployment of new structure, planning, processes, governance and

ethos is incremental and designed to take place over the next 12-18

months. Incremental implementation will ensure that operations are

not impeded and that process change is perfected before it is fully

deployed.

Full transition will require involvement of the entire University to

both establish service agreements, policy and governance changes as

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well as synchronization of operations and development of current and

future expectations.

i. ORGANIZATIONAL STRUCTURE, PROCESSES, GOVERNANCE.

Movement to the new structure will be incremental; beginning with

transition of Directors into their new roles. Roll-out of the new Customer

Service Group pods will be sequential over the following year to ensure

adaptation of process as well as ensuring new staffing is met. Other

organizations will “ghost” by movement of identified personnel into new

structure and staffing additions planned as budget and process change

permits. Adaptation of new governance and best practices processes

will be a high priority. These transitions will be done concurrent with

operations and designed not to disrupt or impede operations.

ii. SERVICE LEVEL AGREEMENTS. Performance begins with

setting expectations. The complete absence of expectations between

ITS and the University was the primary contributing cause of failure in

the old system. An early deliverable will need to be an articulated

service catalogue and negotiated service level agreements (SLA)

between ITS and its customers. Each SLA will follow industry standards

but reflect the terms under which services are offered; including nature

of services, service levels and metrics. Performance will be reported via

periodic reports to customers and balanced score carding.

iii. OPERATING LEVEL AGREEMENTS. Building an operations-

centric organization means identifying the operating agreements that

will bind the various groups within ITS. This articulation is not only to

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ensure that all customer requirements are met but to set proper

expectations and permit for effective planning as well as set conditions

for successful operations.

iv. Funding the new ITS. Of interest to all is how transformation

will be funded. It will be accomplished as follows:

• Optimization. Optimization of current budget means

extracting additional value through gains in efficiency and effectiveness.

There is conservatively a factor of 25% inefficiency. This means an

additional $4M in value from current IT budget.

• Consolidation. With 55% of the IT spend outside of ITS,

migration back to ITS services will provide additional resources and

efficiencies. This can be accomplished through negotiation, regained

trust and performance. For several years to come, overall IT spend at

the University will drop while the ITS budget will grow.

• New Service Model. Transformation into a Balanced

and Agile System will enable ITS to fully benefit from the emergence of a

new Service Oriented Architecture for ITS. In this new model, ownership

of infrastructure will be reduced while movement to a modular service

model will mean more services for the same expenditure.

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IV. SUSTAINMENT & IMPROVEMENT

Sustaining and improving performance of the rationalized ITS will

require commitment on the part of ITS leadership to live the guiding

principles contained in this strategy. Likewise, it will require support of

University leadership where changes affect other components of the

University, especially where changes to policy and governance may be

required. Finally, adaptation of a culture of planning throughout the

University will advance the effect and benefit the entire University in

better synchronizing needs that support each customer in delivering on

the University’s mission of teaching, research and community service.

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V. RECOMMENDATIONS.

a. Adopt the proposed Mission Statement. Adopting the draft

mission statement will give ITS a point of departure.

b. Approve the proposed Organizational Structure. Approval of

structural change will enable ITS to begin to migrate to the new

model.

c. Align people and resources to new structure. Alignment will yield

the efficiencies desired.

d. Fund change through cost savings to University. Change requires

expenditures and this is no exception. However, while requiring an

expenditure, it will be off-set from savings to total IT spend.

e. Implement new unified governance structure. Selection and

implementation of new governance model will create atmosphere of

f. Adopt standards based best practices throughout ITS. ITIL,

COBIT, Quality Assurance, Change Control. Information Security,

Identity Management, Capability Maturity Model among others.

g. Adopt new ethos of Responsibility, Authority & Accountability. A

common ethos empowers an organization to predictable results.

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h. Develop Service and Operating Level Agreements with all external

and internal customers. An absolute must in order to set and

understand expectations.

i. Complete and publish revised services catalogue. It all begins

with a complete understanding of services for both customer

expectations but resourcing and budgeting.

j. Study and implement transition to agile services model.

Migration to a new model will take time and a more complete

analysis of potential cost savings within ITS.

k. Develop university-wide communications plan for Transformation.

Regular, timely and thorough communications will go a long way to

winning back trust of customers.

l. Develop permanent advisory relationship with Faculty, Health and

Business customers. A well organized and effective structure yields

effective action and builds trust.

m. Begin continuous and enduring cycle of Strategic and Operational

Planning. External action to synchronize with University operations

means ability to effectively plan and execute IT services.

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VI. OTHER WORK

C4I has been involved in a number of efforts not directly related to

Rationalization though which have been used to validate the concepts

shown herein. An example of that is the selection of Google Apps as the

new email system for The University. When Chris Lozano arrived,

Zimbra was the choice to replace our broken and outdated email

system. This in-source solution met the basic requirements but

represented investment into the old infrastructure ownership model.

This meant investment in servers, storage, personnel along with

licenses, maintenance and upgrade costs.

With C4I’s recommendation in hand the interim CIO chose to re-

analyze the options. Chris Lozano stood up a planning team using the

Fusion Cell Planning Process™. Based upon the work of the Planning

Team, Bob selected Google Apps as the new email system. This was a

win not only from a cost savings standpoint but as the first adaptation of

a service solution for our emerging Balanced System™. Google Apps

provides a collaborative environment, continuous innovation without

ownership of expensive and decaying infrastructure. It provides more,

costs far less than the original choice and is more adaptive to our

changing needs. We are now in charge of our own innovation.

Another area that C4I was heavily involved in was the anti-phishing

effort that began as the result of a pervasive phishing attack coinciding

with Logical Access Change Control re-set of passwords. Chris Lozano

recognized the significance of the vulnerability and the inability of ITS to

effectively rebuff the attack. C4I brought in Speartip Technologies,

security specialists, to develop an answer to the attack as well as make

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changes to our current security posture. While attacks are not

preventable under our current structure, they can be more effectively

dealt with to prevent proliferation.

C4I Proprietary & Confidential

VII. ATTACHMENTS

ATTACHMENT A: REDACTED


ATTACHMENT B. THE FUSION CELL PLANNING PROCESS

1. Functions of Planning and Plans. The key principles of the Fusion

Cell Planning Process:

A. Leads to direct and coordinated action

B. Develops shared situational awareness

C. Generates expectations about how actions will evolve, and how it

will affect the desired outcome

D. Support the exercise of initiative

E. Shapes the thinking of planners

Improper planning can cause the following mistakes:

(1) Attempting to forecast events too far into the future

(2) Trying to plan in too much detail

(3) Applying a scripting process to prescribe friendly and

competitive actions with precision

(4) Setting inflexible/lockstep routines that produce rigid

plans that overly emphasize procedures

Fusion Cell Planning Process further states the components of a plan

are as follows:

(1) A desired outcome

(2) Actions intended to achieve the desired outcome

(3) Resources to be used

(4) A control process by which we can supervise execution


2. Fundamental Planning Activities. Fusion Cell Planning Process

establishes the fact that the planning process must balance two ways of

thinking, analysis and synthesis. As defined by Merriam-Webster’s

Collegiate Dictionary (Tenth Edition, Copyright 1994 by Merriam-

Webster, Inc.), analysis is “separation of a whole into its component

parts” and synthesis is “the composition or combination of parts or

elements so as to form a whole; the combining of often diverse

conceptions into a coherent whole.” Fusion Cell Planning Process

summarizes these activities as follows:

A. Analysis can be used to turn a broad concept of operations into a

practicable plan by decomposing the concept into individual tasks.

What analysis cannot do is make the creative decisions that are central

to the planning process.

B. Synthesis is the creative process of integrating elements into a

cohesive whole. Creativity is essential to the process of synthesis.

3. Fusion Cell Planning Process (FCPP). FCPP presents a decision-

making methodology that is applicable for all echelons of business

across the range of business operations. The FCPP is inspired by the

Marine Corps Planning Process, with a battlefield proven history of

success. The FCPP is authoritative in nature, requiring judgment in

application.

A. Tenets of the FCPP. While there is not a direct correlation

between business and war, there are truths about human behavior that

apply to business directly. Planning is a way of thinking. It gives form to


chaos; shape and certainty to an uncertain and rapidly changing

environment. It is the foundation for action.

(1) Top-Down Planning. Planning centers on the executive’s

intent and guidance. It may be communicated in oral, graphic, or

written form to provide the common direction needed to ensure unity of

effort. It helps the executive allocate forces and resources to best

support accomplishment of the mission. For example, the executive

can apportion resources to weight the main effort while adequately

supporting the force as a whole.

(2) The Enterprise Concept. This tenet effectively focuses the

efforts of all the elements of business to accomplish the mission and

recognizes that action anywhere inside the operation affects all. While

we may geographically divide corporate operations into market

segments to ease planning and decentralized execution, an executive

must always conceptually view the company an indivisible entity. This is

because events in one part of the company may have profound and

often unintended effects on other areas. Exploiting the combined

capabilities of business across the entire market is the essence of the

one-market concept.

(3) Integrated Planning. Integrated planning is a functional

approach that is systematic, coordinated, and thorough. We organize it

across all Business Functions (BFs) as the means by which a business

plans and executes operations. The key to integrated planning is active

involvement of all appropriate BF representatives within a company via

representatives, and between divisions via liaisons.


B. Components of the FCPP. The following is a summary of each of

the six steps in the FCPP.

(1) Mission Analysis. This is the first step in planning. Here,

we review and analyze orders, guidance, and other information provided

by higher headquarters and produce a unit mission statement. This

initial action drives the FCPP.

(2) Course of Action (COA) Development. The mission

statement, executive’s intent, and executive’s planning guidance is now

used to develop several COAs. Each prospective COA is then examined

to ensure that it is suitable, feasible, varied, acceptable, and complete

with respect to the current and anticipated situation. The executive has

the responsibility to modify, reject or approve the COAs presented. One

COA will be further developed in greater detail.

(3) COA Modeling. During the analysis, we analyze each

friendly COA relative to selected scenarios. COA analysis (modeling)

helps planners identify strengths and weaknesses, associated risks,

and asset shortfalls for each friendly COA. It will also identify branch

plans and potential sequels for additional planning. Short of actually

executing the COA, this visualization is the best test of a COA in that it

attempts to foresee the action, reaction, and counteraction dynamics of

any COA.

(4) COA Comparison and Decision. In this step, the executive

evaluates all friendly COAs - first against established criteria, then


against each other - and selects the COA most likely to accomplish the

mission. Potential comparison/decision criteria include risk factors and

business function concerns.

(5) Plans Development. From the executive’s COA decision,

intent, and guidance, plans are developed to direct the actions of the

organization. Orders are the principal means by which the executive

expresses his decision, intent, and guidance.

(6) Transition. Transition is an orderly hand over of a plan or

order as it is passed to those tasked with execution of the operation.

This action provides situational awareness as well as the rationale for

key decisions necessary to ensure a coherent shift from planning to

execution. At lower planning echelons this process may be very

informal as the same individuals are responsible for both current and

future operations.

C. Business Functions (BFs). To support the FCPP architecture,

certain criteria designated by the executive as BFs are used as tools to

organize the planning effort. Maximum impact is obtained when the

business functions are harmonized to accomplish the desired objective

within the shortest time possible and with minimum casualties. The BF

approach helps eliminate the tendency to “stovepipe” or isolate these

activities.

(1) Administration/HR

(2) Operations


(3) Sales & Marketing

(4) Business Development

(5) Finance

(6) Logistics

(a) By integrating the BFs, we achieve focus and unity of

effort. They provide a method for planners to think in terms of how

each function supports the accomplishment of the mission.

(b) Critical to this approach to planning is the coordination of

activities not only within each BF but also among the BFs. By using BFs

as the integration elements, we ensure all functions are focused toward

a single purpose.

D. The Operations Planning Team (OPT). The OPT is a dynamic, ad

hoc organization formed by the executive to develop the course(s) of

action. It is typically of limited scope and duration. This approach to

planning stresses the need for an integrated planning team that

represents the appropriate business functions. Additionally, the OPT

must be able to maintain Situational Awareness of both current

operations and future plans.

(1) Staffing the OPT. The OPT is made up of personnel already

present within the representative staff sections. These activities are the


backbone of their job. Accordingly, taking part in an OPT is not an

interruption of their daily routine, it is a central reason for it. The OPT

integrates staff representatives that are appropriate for the mission.

They may be augmented by representatives of the BFs, liaison officers,

and any subject matter experts.

(2) OPT Interaction. Interactions in the OPT produce a

concurrent, coordinated effort. A focused OPT gives the executive a

robust, integrated effort to dynamically shape planning and produce a

plan that:

(a) Facilitates continuous information sharing

(b) Maintains flexibility

(c) Makes efficient use of time available

(d) Generates tempo

(e) Seizes the initiative

(f) Acts decisively

E. Planning in Dynamic Business Operations. Because business will

not unfold like clockwork, one cannot hope to impose precise, positive

control over events with a perfect plan. The best that can be hoped for

is to impose a general framework of order on the disorder and “fog of

war” to set a general flow of action rather than seeking a way to control

each event. Thus, a flexible approach to planning must be taken that

allows response to direction from the CEO. The FCPP provides a way to

do this. This process, in concept, is applicable across the range of

business operations, and at any echelon of management. Regardless

of the situation, time available, events, and staff structure, this process


can serve the executive’s needs. The FCPP incorporates the flexibility to

facilitate deliberate decision making, while enabling rapid decision

making when the situation dictates. But, the Fusion Cell Planning

Process is less of a process and more of a way of thinking and a way to

organize thoughts.


ATTACHMENT C: FY08 COST ANALYSIS

REDACTED


ATTACHMENT D: FACULTY FEEDBACK PROVIDED BY FACULTY

SENATE

REDACTED


ATTACHMENT E: RATIONALIZATION BRIEF TO PRESIDENT 15 MAY 2008

REDACTED

c4itranformationbizcase9jul08

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