Information Management and Technology Policy

ICT Project Initiation Guideline

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ICT Project Initiation Guideline

Table of Contents

1. Concept Statement...........................................................................................3

2. Background ......................................................................................................3

3. Using the ICT Project Initiation Guideline......................................................5

4. Application for Concept Approval (ACA) Form (See Appendix 1)...............6

5. Business Case..................................................................................................7

6. Project Planning and Implementation ............................................................8

7. Delivery Governance........................................................................................9

8. Approval Levels................................................................................................9

9. Associated Policies, Standards, Guidelines and Procedures ...................10

10. Version Control ..............................................................................................10

Attachment A: - ICT Project Initiation – Guideline Flow Chart ............................11

Appendix 1: - Application For Concept Approval .................................................13

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ICT Project Initiation Guideline

1. Concept Statement To provide an assessment process that is used within WA Health that allows the selection, control, approval and monitoring of all investment in Information and Communications Technology (ICT) in support of WA Health’s business. This strategy will allow WA Health to prioritise available ICT investment funds and ensure appropriate forward planning to meet agreed future requirements. For the purpose of this guideline ICT projects include but is not limited to:

• Operations: o Computing centres; o Voice and data networks and equipment; o Portals; o Help desk; o Systems operation.

• Procurement/Sourcing:

o IT acquisitions (including hardware and software); o Application Software; o Software tools and utilities o Consultancies ; o ICT Services ; o Internet or intranet-related services; o Other services with ICT components.

• Applications:

o Application development and support; o Web site development.

• Strategy/Transformation

o Strategic planning; o Business cases; o Project management.

WA Health has a rolling 10-year ICT Capital Plan, which will be informed by this strategy as part of the update process and the whole of health annual submission for capital funding. Allocation of funding for approved submissions will be undertaken on a whole of health basis through the State Health Executive Forum (SHEF) corporate governance processes. This will ensure improved co-ordination of ICT projects and their whole of health-focused outcomes. It is also necessary to ensure that new projects align with the WA Office of e-Government policies and strategies as well as national e-Health initiatives.

2. Background SHEF is chartered with the overarching role of monitoring and control of WA Health Information Management activity, a SHEF ICT Sub-Committee has been delegated

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ICT Project Initiation Guideline

responsibility for advising SHEF on ICT matters. In order to undertake this role the SHEF ICT Sub-Committee plans to implement a strategy, which selects, controls and evaluates data and information and systems/technology projects with a comprehensive understanding of the associated costs, risks, benefits and business outcomes. In October 2002 the then Information Management Governance Committee (IMGC) approved that the WA Health adopt an Information Technology Portfolio Management approach for all ICT developments. Information Technology Portfolio Management is a standard tool used by organisations to manage the investment on ICT infrastructure, applications and services; it is similar to the practices and tools used in financial portfolio management. Through a strategic approach, such as portfolio management, WA Health can assess the trade-offs among competing investment opportunities in terms of their benefits, costs and risks, and make investment decisions based on an improved understanding of what will be gained or lost through the inclusion or exclusion of particular investments. This includes the very large proportion of ICT expense on maintaining current systems. Portfolio management will enable WA Health to:

• Determine the support/development/procurement of an acceptable mix of ICT services and products;

• Determine the level of spending on ICT products and services; • Provide full lifecycle investment analysis, including identifying applications

and infrastructure to eliminate/retire • Determine investments required to support WA Health’s key programs • Better employ IM to achieve our mission and related goals and objectives; • Support and enable business operations; and • Provide a balance of utility/commodity system investments (e.g. HR and

Financials), business enhancing systems (e.g. clinical information systems) and “frontier” systems (e.g. prognosis predictions).

Continuous monitoring of portfolio performance is needed, as is establishment of organisational and management capacity to propose, analyse and make modifications and adjustments to the portfolio in a timely manner. Good portfolio management also requires careful attention to the organisations strategic, tactical and operational functions from the perspective of current ICT and systems operations and maintenance, and future investment. In essence the SHEF needs to know where money is being spent, on what, when and for what value. The path to Portfolio Management is usually undertaken on a continuum, initially coming from a focus on investment management to a more strategic picture of how a collection of investments contributes towards achievement of business objectives. Currently, WA Health manages major ICT investment through the development of high-level and/or detailed Business Cases, primarily for centrally funded core systems. This overall approach will not change, but become more comprehensive to include all business requirements that might lead to investment in information systems/technology. This tactic supports control of investment and costs but also the basic tenets of portfolio management, including the trade-offs, benefits, risks, and

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ICT Project Initiation Guideline

business outcomes. Importantly it provides a portfolio-wide view of ICT investment and their outcomes. The “critical success factors” for establishing IT Portfolio Management are to:

• Establish Governance and clear accountabilities; • Allocate sufficient resources to support the process; • Ensure the process is disciplined and sustained; • Develop an objective prioritization framework; • Maintain communication and education programs; • Support decision-making with tools.

Establishing a governance structure and supporting policies and procedures and the allocation of resources to support the process are critical to portfolio management success. Project Initiation policy is part of the information management governance structure, which needs to be applied to identify, evaluate, fund and gain approval for all information technology projects. Project initiation via the Application for Concept Approval (ACA) Form and the Business Case provides the necessary information such as, a statement of benefits, costs and risks, an implementation and resourcing plan, alternatives considered, and financial analysis to enable WA Health management to evaluate a new project before granting approval (or rejection) to proceed.

3. Using the ICT Project Initiation Guideline The complexity of the project initiation process depends on the value, complexity, strategic importance, sensitivity and level of risk of the proposal and should include the level of detail considered appropriate to the project or initiative. The most important aspect of the documentation is that it be detailed enough to enable sound judgments to be made about the merit of what is being proposed, and whether funding and other resources should be allocated to it. Cost effectiveness issues should be dealt with before a project is approved. Project initiation documentation should address the full life cycle of the proposed investment. An external, client-focused view should be taken in providing information in the ACA and business case, especially when describing the outcomes, benefits, problems or opportunities being addressed. Urgent requests (e.g. Legislative requirements) that require SHEF approval can be addressed as an out-of-session request. The project initiation framework set out in this document has five components:

Project Initiation – Application for Concept Approval Form Business Case Project Implementation and Planning Delivery Governance Approval Levels

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ICT Project Initiation Guideline

See Attachment A for a flow chart of the Project Initiation process.

4. Application for Concept Approval (ACA) Form (See Appendix 1)

Area 4 in the flowchart As part of the concept initiation and completion of the ACA form, the appropriate co-operative user co-ordination group, and local ICT group should be involved. These groups can advise on issues such as:

• Similar business/development requirements across health; • Any infrastructure issues associated with the development; and • Possible alternative options.

Additional advice for example, how the proposal fits with current Departmental, State and National initiatives, is available through the Information Policy & Support Directorate. The primary purpose of the ACA is to enable a high level evaluation of a proposed ICT project before too much capital (financial and resources) is invested. In most instances a proposed ICT project proposal will originate from the relevant Business area and will result from stimuli such as:

• changes in business process; • changes in technology; • changes in legislation; • new initiatives (business or technology); • compliance with new standards; • compliance with new national agreements.

In some circumstances the ICT project may be part of an already approved Program of Works (large project which has been decomposed into manageable phases) or Planned Upgrade or Refresh may require different governance criteria to newly initiated projects. Any new ICT project proposal must be supported by the relevant Business User Group. Business User Groups are established to share best practice for a particular business process and represent all users. This user group jointly has responsibility for initiating and supporting any system changes. When the projects total cost is less than $50,000 and not a core system, the Functional Sponsor can approve progression to Project Planning and Investment. (see Attachment A)

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The business/information system Functional Sponsor provides final approval to proceed to SHEF ICT Sub-Committee for endorsement before development of a Business Case. Cost estimates at this phase are only estimates which need to be established in conjunction with ICT Service.

5. Business Case

Area 5 in the flowchart If the feasibility assessment is approved by the SHEF ICT Sub-Committee a business case can then be developed. A business case includes a statement of benefits, costs and risks, an implementation and resourcing plan, alternatives considered, and more detailed financial analysis. A business case content depends on the value, complexity, strategic importance, sensitivity and level of risk of the proposal and should include the level of detail considered appropriate to the project or initiative. The most important aspect of the documentation is that it be detailed enough to enable sound judgments to be made about the merit of what is being proposed, and whether funding and other resources should be allocated to it. The business case should address the full life cycle of the proposed investment including any intellectual property implications. An external, client-focused view should be taken to providing information in the business case, especially when describing the outcomes, benefits, problems or opportunities being addressed. In order to achieve a consistent approach for all projects across WA Health the Business Case Guidelines (October 2006) should be used as the basis for all Business Case development. The business case needs to undergo the following approval process before the project can proceed: SHEF ICT Sub-Committee review – this committee is the WA Health ICT Governance group and needs to ensure ICT projects align with current priorities and initiatives. Chief Financial Officer review – the CFO needs to reconfirm that sufficient funds are available within the project timeframe for it to proceed. There is a possibility that within any financial year an unscheduled ICT expenditure may occur which has the affect of changing the priority of scheduled projects within the ICT portfolio.

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SHEF – this group needs to approve the business case and funding and ensure the investment is still appropriate within evolving WA Health business and strategic requirements.

6. Project Planning and Implementation

Area 6in the flowchart This stage includes developing the implementation strategy for acquiring and implementing the solution, including:

• how will the project be implemented; • project duration (start/ end targets/ constraints); • ensure that project milestones and key dates are clearly defined and that

communication channels are in place; • who will be accountable for managing implementation; • who will be responsible for harnessing the benefits and outcomes; • how will assessment against performance indicators be progressed; • who will be responsible for reviewing actual outcomes against target

objectives; • what resources (human, physical, other) and skills are required; • what changes are required to working practices; • ensure any requested changes are defined, costed, formally approved and the

project plan amended accordingly; • what level of training and documentation is required; • outline the integration with existing and proposed systems; • summarise the funding requirements and strategy • Indicate, where appropriate, compliance with Government and Departmental

purchasing and tendering requirements and other relevant policies and procedures.

The WA Health Enterprise Project Management system should be used to develop and record a project plan, which will need to be approved by the projects steering committee.

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ICT Project Initiation Guideline

7. Delivery Governance

Area 7 in the flowchart Delivery Governance includes all tasks associated with moving the information system into production and its on-going support. This includes:

• Installation of necessary hardware/software • User training • Documentation • Handover procedures such as obtaining user acceptance • Conversion of the old to the new information system • Change control • Maintenance / Support

This covers such areas as: o Performance monitoring o Error tracing/fixing

• Post Implementation Review (PIR) The Post Implementation Review phase includes a review of the information system's performance against the stated benefits and requirements and uncovers any technical or procedural problems.

8. Approval Levels In summary, the various approval and sign-off’s required before ICT project can proceed to development/acquisition are: Document Advice/Review

(as required) Approval Authority (Core

System or > 50K) 1. Application for

Concept Approval (ACA)

Relevant User Group ICT Service Enterprise Architecture Office Functional Sponsor

State Health Executive Forum (SHEF) ICT Sub-Committee.

2. Business Case

Relevant User Group Chief Financial Officer ICT Service

SHEF ICT Sub Committee SHEF

NOTE: Urgent requests (e.g. Legislative requirements) that require SHEF approval can be addressed as an out-of-session request.

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9. Associated Policies, Standards, Guidelines and Procedures Associated IM&T policy can be located on the Information Management and Technology Policy intranet site:

• Computer Software - Intellectual Property Rights, Copyright, and Conflict of Interest Guidelines

• IS Initiation Development & Implementation Policy

10. Version Control

Version Date Details 1.0 June 2004 Original Development – replaces I&IT Project Initiation

Guideline 1.1 March 2005 Revised 1.2 August 2006 Revised 1.3 April 2007 Link Conversion Only – associated policies now links to

the Information Management & Technology intranet page, not directly to the individual policies.

1.4 June 2007 Replaced InfoHEALTH with ICT Service in review and advice processes.

1.5 July 2007 Revised to reflect current ICT governance structure. Application for Concept Approval form modified to be less demanding on costing analysis.

1.6 October 2007 Removed Feasibility Study Phase (SHEF directive)

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ICT Project Initiation Guideline

Attachment A: - ICT Project Initiation – Guideline Flow Chart

Core System or > $50K

Delivery Governance

User Group Review ACA

-Business-Technology-Legislation-Initiatives-National Agreements

END

N

Planned Program / Upgrade?

CFO for Funding Advice

Funded?

SHEF Review

SHEF Approve?

Update Capital Investment Plan

Develop Business Case

Project Planning & Implementation

Development Request Source

ICT Committee Support ACA?

Y

N

N

Y

Secure Business Area Sponsorship

For ACA

EnterpriseArchitecture

Advice /Review

-Clinical-HR/Admin-Financial /Supply-Corporate-Other

Y

ICT Service Review

START

Y

N

EnterpriseArchitecture

OfficeAdvice

4

5

6

7

RejectProposal

RejectProposal

RejectProposal

SHEF ICT Sub-Committee Review

Business Case

ICT Committee Approve?

RejectProposal

Y

N

Y

IP&S Policy Advice

SHEF ICT Sub-Committee Review

ACA

Y

N

ICT Service Advice /Review

Legend: ACA - Application for Concept Approval

SHEF – State Health Executive Forum

IP&S – Information Policy and Support

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ICT Project Initiation Guideline

Flowchart Notes: (1) The Application for Concept Approval (ACA) also addresses alignment with Government/DOH

Business priorities and strategies. (2) Core systems support WA Health primary business functions and includes systems run or required

at multiple sites. (3) The business area will be responsible for developing the business case except for the ICT

technical/infrastructure component, which will be completed by ICT Service for core information systems. ICT Service will need to review the completed document before progressing to Chief Financial Officer (CFO) and State Health Executive Forum (SHEF).

4) The number inside the symbol 5 represents the section in the written text, which describes the process.

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Appendix 1: - Application For Concept Approval

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Department of Health WA

Cover Sheet

Application For Concept Approval

Section:

Proposal Name:

Proposal Type: � New Proposal � Amendment/Upgrade

Sponser: SHEF ICT Sub Committee Endorsed:

� YES � No

Date Requested: Date Endorsed: Short Description of Proposal:

Reason for Rejection/Deferral:

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Application For Concept Approval

PART OF A PROGRAM OF WORKS: (DESCRIBE THE PROGRAM OF WORKS INVOLVED)

ANY OTHER PROJECT INTERDEPENDENCIES: (DESCRIBE ANY RELATIONSHIP TO OTHER PROJECTS)

KEY OUTPUTS TO WHICH THE PROPOSAL WILL CONTRIBUTE: (DESCRIBE HOW OUTPUTS RELATE TO WA HEALTH OBJECTIVES)

OPPORTUNITY DESCRIPTION: (DESCRIBE THE PROBLEM AREA/OPPORTUNITY DESCRIPTION)

ANTICIPATED BENEFITS: (ENTER A SUMMARY OF THE ANTICIPATED BENEFITS TO BE DELIVERED TO CLIENTS)

RISK ASSESSMENT: (ENTER AN ASSESSMENT OF THE RISKS ASSOCIATED WITH THE OPPORTUNITY)

Project Risk:

High Medium Low

Risk Associated with Proposal Not Proceeding:

High Medium Low

Details:

INVESTMENT: (PROVIDE AN ASSESSMENT OF THE INVESTMENT REQUIRED BY THE KEY STAKEHOLDERS)

Human Resources: (Provide an indication of the resources required)

FINANCIAL: Resource Capital Operating Recurrent (P/A)

0.00 0.00 0.00 0.00

Total Estimated Funds Required 0.00 Estimated Recurrent Cost 0.00

Duration (weeks)

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ADDITIONAL NOTES:

Notes:

REVIEW BUSINESS UNIT REPRESENTATIVE:

Aligns with Health needs? and Stategic Objective?

Yes

No (Name) (Initials)

Notes:

ARCHITECTURE & PLANNING REPRESENTATIVE:

Aligns with Health strategic direction / ICT Framework?

Yes

No (Name) (Initials)

Notes:

SERVICE DELIVERY MANAGER Achievable?

Impact on existing services assessed.

Yes

No (Name) (Initials)

Notes:

PROJECT DELIVERY MANAGER:

Achievable? Yes

No (Name) (Initials)

Notes:

FACILITIES SERVICES REPRESENTATIVE:

Technical impact /feasibility reviewed?/Aligns with WA Health Enterprise Architecture?

Yes

No

(Name) (Initials)

Notes:

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