Category Archives: managing change

Some good IT project news from America

By David Bicknell

It’s always good to be able to write about IT project success. So I’m following up on Steve Kelman’s report in Federal Computer Week in the US about an October 2011 GAO report called Critical Factors Underlying Successful Major Acquisitions, which details seven recent government IT systems acquisitions – costing from $35 million to $2 billion – that have met their targets in terms of schedule, cost, and performance.

Aside from its conclusions on the critical success factors, the report says this about Agile software development: 

“….the use of Agile software development was critical to the success of the program. Among other things, Agile enhanced the participation of the end users in the development process and provided for capabilities to be deployed in shorter periods of time.”

As Steve suggests, the report should get wider circulation to show us what we might learn from success instead of from failure.

We’d be interested in your views.

Hammersmith & Fulham Pathfinder tender hints at September start for schools mutual

By David Bicknell

 Campaign4Change has kept a watch on the progress of the Pathfinder Mutual at the London Borough of Hammersmith & Fulham, which is looking to create a mutual for school support services.

The mutual will actually cover services to schools across three London boroughs working together: Hammersmith & Fulham, Kensington & Chelsea, and Westminster City  Council.   

Now a tender opportunity for the project has been  listed on the Londontenders.org website. The anticipated start date for the contract is 1st September 2012, running to 1st September 2016.

It appears from the tender that the three boroughs are looking for “an innovative independent sector partner (ISP) to participate and invest in the creation of a Mutual Joint Venture Company.”

The tender says that “the ISP will take responsibility for the creation of the joint venture company, whose shareholding will be shared between the ISP and the employees (held on the employees’ behalf in a trust). The Contracting Authority will have a contractual arrangement with the Mutual Joint Venture company to provide some of the services, supplies and works listed….. for a period of not less than 4 years.”

The tender goes on: “The Contracting Authority is working closely with the Royal Borough of Kensington & Chelsea and Westminster City Council, and it is intended that staff from all three boroughs will be transferred into the Mutual Joint Venture company under the Acquired Rights Directive (the UK’s Transfer of Undertakings (Protection of Employment) Regulations 2006). The Contracting Authority is procuring on behalf of education bodies within the London Borough of Hammersmith & Fulham, Royal Borough of Kensington & Chelsea and Westminster City Council for an independent partner to set up the Mutual Joint Venture Company.”

Interestingly , the scale of services to be offered by the Mutual Joint Venture Company is extensive, everything from ICT services and ICT supplies to architectural, building and security services.

The closing date for expressions of interest in the tender is 31st January.

Hammersmith & Fulham mutual Pathfinder expected to launch in 2012

A few suggested blog posts – on change at Kodak, the rise of Splunk and a culture clash in China

By David Bicknell

Browsing over the weekend, I came across a few posts about change management and cultural change that caught my eye and are worthy of passing on.

A couple are from the Harvard Business Review, and one is taken from IT-Director.com.

The Harvard Business Review items cover the innovation and transformational change issues involved in the continued demise of Kodak and the cultural issues that anyone who has plans to do business in China may have to get to grips with. The IT-Director article covers the growing reputation of Splunk, a real-time operational intelligence specialist that collects and indexes machine data and which has potential in the growing ‘Big Data’ marketplace.

Halt NPfIT Cerner deployments after patient safety problems at 5 hospitals, says MP

By Tony Collins

Conservative MP and member of the Public Accounts Committee Richard Bacon called today for a halt on deployments of the NPfIT Cerner Millennium system after patient safety problems at hospitals in Oxford and North Bristol.

Other hospital deployments underway include Royal Berkshire and Imperial College London.   The BBC has reported that patient-booking software at North Bristol was regarded by some consultants as ‘potentially dangerous’.

The software was installed at the Trust last month under the National Programme for IT [NPfIT].    According to a BBC Points West investigation, the implementation led to some patients missing their operations and, in other cases, the wrong patients being booked for operations.

One consultant told the BBC he had been put down to operate on patients from a completely different speciality.  Patients were also being booked for unlikely appointment times, such as five minutes past midnight, and patients were said to have turned up for phantom appointments on the New Year bank holiday.

Separately the Oxford Mail reported this week that Oxford University Hospitals NHS Trust, which includes Nuffield Orthopaedic, John Radcliffe, Churchill, and the Horton General hospitals, has difficulties booking in patients for treatment.  It deployed the Cerner Millennium software in December.

According to the Oxford Mail, some patients ringing in to book appointments waited up to an hour to have their calls answered and appointments were so delayed the Trust abandoned car parking charges for three days.

Patients reported problems that included ambulances queuing outside of A&E as staff struggled to book in patients.

Pensioner John Woodcock told the Oxford Mail that it took a week of calling the local contact centre to book an appointment for an important stomach examination.

The contact centre gives patients the option of leaving a message for staff to call back, or to join a phone queue. The 75-year-old said “I managed to get an appointment in the end by staying on the phone but it took half an hour almost.”

An Oxford University Hospitals spokesman was unable to say when the system would be able to function without delays but suggested it could be up to three months. Hospital officials blamed the disruption on deployment problems and training issues.

Bacon has long criticised the National Programme for locking the NHS into buying software that was unreliable, subject to serious delays and, even after contract renegotiations, unreasonably expensive.

He disclosed that the costs of a Cerner Millennium deployment at the North Bristol NHS Trust are about £29m over seven years. This is more than three times the reported £8.2m price of a similar system, bought outside the National Programme, at University Hospitals Bristol Foundation Trust.

Bacon said the lessons from major patient safety problems at the Royal Free Hampstead, Barts and The London and Milton Keynes General Hospital had not been learnt.

“We now have two of our leading hospitals brought to their knees by this system.  These deployments need to be stopped until we are sure that they can be managed safely.”

He added “Effective, affordable and robust IT systems are vital to the future of the NHS, but it is clear that the fiasco that is the National Programme cannot deliver them.”

One patient emailed the Oxford Mail to say that the gain will be worth the pain.

“… A word of congratulations to staff. I too had problems with booking an appointment a few days after launch, but sent an email to which I first received an answer in the form of a call-back to fix an appointment and then a personalised apology and explanation…

“Think about the time, effort and accuracy gains of an electronic records system, and not having all those sometimes thick files being ferried round the different departments; think too of the gains in patient confidentiality – now every time someone accceses your records, that will be logged.

“When things have bedded in properly, and I believe this will be sooner rather than later, if the committed and dedicated staff have anything to do with it …  we’ll soon come to be grateful, both for the increase in efficiency and the financial savings – which can then be used on frontline services…”

NPfIT Cerner go-live has “more problems than anticipated”

System still causing chaos – Oxford Mail

London trusts in chaos

 

G-Cloud – it’s starting to happen

By Tony Collins

Anti-cloud CIOs should “move on” says Cabinet Office official, “before they have caused too much harm to their business”.

For years Chris Chant, who’s programme director for G Cloud at the Cabinet Office, has campaigned earnestly for lower costs of government IT. Now his work is beginning to pay off.

In a blog post he says that nearly 300 suppliers have submitted offers for about 2,000 separate services, and he is “amazed” at the prices. Departments with conventionally-good rates from suppliers pay about £700-£1,000 a month per server in the IL3 environment, a standard which operates at the “restricted” security level. Average costs to departments are about £1,500-a-month per server, says Chant.

“Cloud prices are coming in 25-50% of that price depending on the capabilities needed.”  He adds:

“IT need no longer be delivered under huge contracts dominated by massive, often foreign-owned, suppliers.  Sure, some of what government does is huge, complicated and unique to government.  But much is available elsewhere, already deployed, already used by thousands of companies and that ought to be the new normal.

“Rather than wait six weeks for a server to be commissioned and ready for use, departments will wait maybe a day – and that’s if they haven’t bought from that supplier before (if they have it will be minutes).  When they’re done using the server, they’ll be done – that’s it.  No more spend, no asset write down, no cost of decommissioning.”

Chant says that some CIOs in post have yet to accept that things need to change; and “even fewer suppliers have got their heads around the magnitude of the change that is starting to unfold”.

“In the first 5 years of this century, we had a massive shift to web-enabled computing; in the next 5 the level of change will be even greater.  CIOs in government need to recognise that, plan for it and make it happen.

“Or move on before they have caused too much harm to their business.”

He adds: “Not long from now, I expect at least one CIO to adopt an entirely cloud-based model.  I expect almost all CIOs to at least try out a cloud service in part of their portfolio.

“Some CIOs across government are already tackling the cloud and figuring out how to harness it to deliver real saves – along with real IT.  Some are yet to start.

“Those that have started need to double their efforts; those that haven’t need to get out of the way.”

Cloud will cut government IT costs by 75% says Chris Chant

Chris Chant’s blog post

Transition Institute’s weekly round-up of mutuals and spin-out stories

By David Bicknell

Here is a link to the Transition Institute’s weekly round-up of mutuals and public sector spin-out stories.

NB The link  on the Transition Institute site to the Public Service article on procurement change and SMEs on 13th January doesn’t work. The link below does, however.

Pace of procurement change frustrates innovative SMEs

Lifting the lid on Agile development within a public sector IT project

By David Bicknell

It’s not often that you get an insight into the workings of Agile development within a public sector  IT project.

So the Inspector General’s report into the Sentinel IT project at the FBI that I mentioned a couple of days ago offers a rare and unique picture into how the sprints, story points etc are progressing. This will not be new to Agile exponents – but the detail below may be of interest to those unfamiliar with Agile’s processes.

Transition to an Agile Development Approach

The report’s discussion of Agile within the Sentinel project says this:

“Agile software development is not a set of tools or a single methodology, but an approach that leverages close collaboration between representatives of system users, system developers, and testers to deliver functionality in a compressed timeframe and on a continuous basis. The delivery of working software is the primary measure of progress, and satisfying customers through the delivery of valuable software is treated as the highest priority during development.

“While an Agile methodology can be implemented in a variety of ways, the FBI is implementing a variation called Scrum, an iterative methodology which breaks the development effort into increments called sprints, each of which the FBI decided would last 2 weeks.

“At the conclusion of each sprint, User Stories – functions that a system user would typically perform – along with Architecture Stories – qualities that define the system software architecture and configuration – are planned and completed, and it is the successful completion of these stories that is measured as progress for the project.”

Development Progress

“As of August 26, 2011, the FBI had completed 22 of 24 planned sprints. Under the Scrum approach, a project’s progress and amount of work remaining is measured using a burndown chart, which depicts how factors such as the rate at which a development team completes work (a team’s velocity) and changes in a project’s scope affect its likelihood of staying on schedule and within budget over time.

“This information can be used by project management and project stakeholders to estimate the duration of the project or the amount of work that can be completed within an identified amount of time.

“During the first 22 sprints (Sprint 0 through Sprint 21), the FBI had completed 1,545 of the 3,093 story points (1,548 remaining) that it identified at the beginning of the project, or about 50 percent.  As of December 2, 2011, the FBI reported that it had completed 28 of 33 planned sprints ….It had also completed 2,345 story points  – 748 remained to be completed.”

Velocity

The Report says this of the Agile team’s velocity:

“According to FBI officials, after five sprints have been completed, the velocity, or rate at which an Agile team completes story points, can be used to project the completion rate of future work. During Sprints 5 through 21, the Sentinel team’s average velocity was 80 story points per sprint.

“During our review, we estimated that if the team’s velocity remained at 80 story points per sprint, the FBI would complete about 55 percent of the intended functionality by the end of the project’s originally planned 24 sprints on September 23, 2011. At that rate of development we estimated that Sentinel will be completed in June 2012.

“On September 6, 2011, the FBI CIO stated that the FBI had added six development sprints to Sentinel’s development schedule and that the FBI then planned to end development on December 16, 2011, after 30 sprints. After development ended, the FBI planned to test Sentinel for about 6 weeks and then deploy the system to all users in January 2012. During the additional development sprints, the FBI planned to finish the functionality work that it previously planned to complete by September 23, 2011.

“Based on the average velocity of 80 story points per sprint, and the number of remaining story points to be completed (1,548) we estimated that the FBI would complete about 71 percent of the intended functionality by the end of the project’s 30 development sprints on December 16, 2011.

“On December 1, 2011, the FBI again extended the schedule for the completion of Sentinel. The CTO stated that the FBI had added four development sprints to Sentinel’s development schedule and that the FBI now plans to end development in February 2012, after 34 sprints. After development, the FBI plans to test Sentinel for about 12 weeks and then deploy the system to all users in May 2012. During this testing period, the FBI plans to test Sentinel’s hardware and execute a test of all major Sentinel functionality that will involve personnel from across the FBI.

“Also in December 2011, after the FBI received a copy of our draft report, the FBI reported to us that during Sprints 5 through 28 it had completed 2,167 story points, an average of 90 story points per sprint – 10 more story points than its average rate as of September 2011.

“Based on this average velocity and the number of remaining story points to be completed (748) during the final 5 sprints under this plan, the Sentinel team must increase its average velocity to approximately 150 story points per sprint.

“However, the six sprints between the end of development and deployment – during which the FBI will test Sentinel – could also have story points assigned to them that the FBI is not accounting for at this time, and as a result the total number of story points to complete the project could increase. Without including such an increase, the FBI would need to average about 68 story points per sprint over the total 11 sprints remaining before the planned May 2012 deployment.”

Sentinel Agile Development Approach

The report’s Appendix says this about the FBI’s approach to its Agile development for Sentinel:

“In October 2010 the FBI identified a total of 670 stories for the Sentinel Product Backlog, or the compilation of all of the project’s stories. The FBI has mapped the Product Backlog to each of the requirements in Sentinel’s Systems Requirements Specification (SRS), which serves as an important control to ensure that the backlog, and the stories it contains, cover all of Sentinel’s requirements. The FBI also assigned weighted amounts, or “story points,” to each story in the Product Backlog based on the difficulty of the work associated with each story. The FBI assigned a total of 3,093 story points to its 670 stories in the Sentinel Product Backlog.”

The Report’s Conclusion

Although it appears that the FBI has made good progress with its Agile development, adopting Agile may not be enough to get the project exactly on track, with some testing issues and hardware problems discussed in the report.

“It is too early to judge whether the FBI’s Agile development of Sentinel will meet its newly revised budget and completion goals and the needs of FBI agents and analysts.

“While the Sentinel Advisory Group responded positively to the version of Sentinel it tested, results from wider testing were not as positive. Also, none of the Agile-developed Sentinel has been deployed to all users to give them the ability to enter actual case data and assist FBI agents and analysts in more efficiently performing their jobs.

“Despite the FBI’s self-reported progress in developing Sentinel, we are concerned that the FBI is not documenting that the functionality developed during each sprint has met the FBI’s acceptance criteria. Our concerns about the lack of transparency of Sentinel’s progress are magnified by the apparent lack of comprehensive and timely system testing.

“Our concerns about the lack of transparency also extend to Sentinel’s cooperation with internal and external oversight entities, to which Sentinel did not provide the necessary system documentation for them to perform their critical oversight and reporting functions.

“We believe that this issue could be resolved, at least in part, with a revision to the FBI’s Life Cycle Management Directive to include standards for Agile development methodologies.

“….Sentinel experienced significant performance problems during the Sentinel Functional Exercise. The FBI attributed these performance problems to either the system architecture or the computer hardware.

“According to the FBI, subsequent operational testing confirmed the inadequacy of the legacy hardware and the requirement to significantly expand the infrastructure before the system could be deployed to all users. In November 2011, the FBI requested that Lockheed Martin provide a cost proposal for this additional hardware.”

The FBI’s Response

In its response to the report, the FBI says:

 “….we are mindful of the short delay we have recently encountered under our new” Agile” approach. The Sentinel development schedule has recently been extended by two months (from December 2011 to February 2012), and the FBI-wide deployment is now scheduled for May 2012, as described in this Report.

“This modest extension is due primarily to the need to implement a standard  five-year “refresh” of computer hardware, so the Sentinel software will provide the required functionality as intended. Indeed, you have determined that, given the pace at which the program has proceeded under the Agile approach over the time period you reviewed, your estimate for completion is essentially the same – June 2012.

“We have one concern with the current draft of the Report. We request that you note that the hardware we are acquiring for the refresh, which is being purchased using fiscal year 2012 operations and maintenance funds, is separate from the development activities being carried out by the Agile team under the development budget.

“The refresh is part of the normal and expected operations and maintenance activities of the FBI, and such a refresh is a common maintenance activity where hardware has reached its expected replacement threshold. We do not agree that the FBI is using operations and maintenance funds for the development of Sentinel…and we ask that you make this revision.”

NPfIT Cerner go-live at Bristol has “more problems than anticipated”

By Tony Collins

The BBC reports that there are “more problems than anticipated” with a patient-booking system at two Bristol hospitals run by North Bristol NHS Trust.

The trust describes the problems as “teething”.  Consultants say the problems are “potentially dangerous”.

Last month North Bristol went live with the Cerner Millennium system under an NPfIT contract with BT. The Trust says problems are due to software being used incorrectly. They have led to some patients missing their operations and the wrong patients being booked for operations, says the BBC.

Emails from executives at Frenchay and Southmead hospitals, seen by the BBC, said staff should be “vigilant” to check lists were “completely accurate”.

BBC Points West’s health correspondent Matthew Hill said emails sent by consultants to hospital bosses claimed operation lists printed by the system were “complete fiction” and “potentially dangerous”.

One consultant told the BBC he had been put down to operate on patients from a completely different speciality.

The trust said there had been “teething problems” and that there had been “more problems than anticipated”.

In an email to staff the trust said the change of system had been “a very big change” so there was “no surprise” there had been difficulties.

A trust spokesman said there were a series of problems around outpatients and the associated clinics and some of the data moved from old systems had not migrated as planned.

“We need to ensure that we rebuild and recreate the clinics to match what people expect them to be on the ground,” he said.

“In theatres we have had some issues but have absolutely ensured from the outset that clinical safety has been at the top and have ensured any risks and issues have been mitigated.”

Conservative MP Richard Bacon, a member of the Public Accounts Committee, has established through a Parliamentary question that the cost of the North Bristol Cerner implementation is much higher than for a non-NPfIT installation in the same city.

Health Minister Simon Burns told Bacon that the costs of a Cerner Millennium deployment at the North Bristol NHS Trust were £15.2m for deployment and an annual service charge of £2m.

This brought the total cost of the Cerner system over seven years to about £29m, which was more than three times the £8.2m price of a similar deployment outside of the NPfIT at University Hospitals Bristol Foundation Trust.

Comment

Several Cerner implementations under the NPfIT have gone awry but the problems have eventually been resolved. The question is whether patient care and treatment is affected in the meantime. The lack of openness over problems with patient care in the NHS mean that the answer will probably never be known, which underlines the need for better regulation of hospital IT implementations.

Does hospital IT need airline-style safety certification?

FBI chooses Accenture for IT project to modernise its HR systems

By David Bicknell

Yesterday I mentioned the challenges that the FBI is having in bringing a case management IT project in on time.

It’s good to know then that the FBI will now be assisted in its ongoing delivery of IT by Accenture.  Not for the case management project, but for an enterprise resource planning (ERP) system  to support the FBI’s Human Resources Information System (HRIS).

The award, under a  General Services Administration IT schedule that provides technology support services to the FBI through a ‘Blanket Purchase Agreement’ (BPA) plus four task orders’ will enable Accenture Federal Services to oversee selection, installation, testing and support to the agency’s HR systems.  Accenture also will complete a fit gap analysis to determine possible future costs to replace the FBI’s current HRIS systems.

Accenture said that by modernising its Human Resources information System, the FBI ‘will be able to increase effectiveness and streamline processes. These improvements will help the FBI develop a modern, on-demand system for accessing personnel information.’

The contract, which includes one base year with four option periods, also requires Accenture to submit a report with recommendations the FBI can use to determine whether to customise software, re-engineer business processes or combine both options to support future needs.   
 
Accenture, as its press release puts it, will also be ‘eligible to receive additional task orders under the BPA.’
 

CSC to change hands in 2012?

By Tony Collins

Techmarketview analyst Tola Sargeant who has followed the NPfIT closely, and particularly the ups and downs of CSC, says the implications for CSC of the government’s tough stance against the company are “dire”. She adds:

“Indeed, we wouldn’t be at all surprised to see CSC change hands in 2012 as a result”.

Maude gets tough 

Within the Department of Health and CSC in May last year executives were confident a new memorandum of understanding under the NPfIT would be signed.

Now the Government, in the form of the Cabinet Office minister Francis Maude, has declined so far to sign any new deal with CSC. This is the way CSC put it in a filing to the SEC, the US regulators, on 27 December 2011:

“… Since mid-November 2011, the parties [Department of Health, Cabinet Office and CSC) have been engaged in further discussions relating to the MOU [Memorandum of Understanding], which have included discussions regarding a proposed contract amendment with different scope modifications and contract value reductions than those contemplated by the MOU.

“However, CSC recently was informed that neither the MOU nor the contract amendment then under discussion would be approved by the government.

“Notwithstanding the failure to reach agreement, CSC anticipates that the parties will continue discussions in January 2012 regarding proposals advanced by both parties reflecting scope modifications and contract value reductions that differ materially from those contemplated by the MOU.

“As a result of the circumstances described above, CSC has concluded, as of the date of this filing, that it will be required to recognize a material impairment of its net investment in the contract in the third quarter of fiscal year 2012.

“Until CSC and NHS conclude their on-going discussions concerning a possible contract amendment, including any scope modifications and contract value reductions that might be part of any such amendment, the Company is unable to estimate the amount of such impairment.

“However, depending on the terms of such an amendment or if no amendment is concluded, such impairment could be equal to the Company’s net investment in the contract, which, as of November 30, 2011, was approximately £943m ($1.5bn).

“Additional costs could be incurred by CSC depending on the nature of such an amendment, or if no amendment is concluded. The Company is unable to estimate the amount of such additional costs; however, such costs could be material.”

Why the Cabinet Office has left draft MoU unsigned?

The non-signing of a new deal with CSC is the firmest indication so far that the Cabinet Office is prepared to bring a rigorous, independent scrutiny to big IT projects and contracts.

Though the DH had wanted to sign a new deal with CSC, at least to assure continued support and upgrades to the few NHS trusts that have installed CSC and iSoft’s “Lorenzo” patient records system,  Maude is said to have seen a new deal with CSC as rewarding the company for failings in the past.

Also Cabinet Office officials regarded the terms of a new deal with CSC as unattractive. One Cabinet Office official wrote in a memo dated March 2011 that CSC’s proposals would mean a reduction in Trusts using CSC IT from the original number of 220 Trusts to 80.

 “My view is that, on the face of it, while the additional savings are appealing, the offer is unattractive. This is because the unit price of deployment (per Trust) under offer roughly doubles the cost of each deployment from the original contract.

“Ultimately, we [Cabinet Office] are not convinced the [Department of] Health commercial team are approaching this in the best way.”

It is possible that a new deal for signing was put before Maude – and went unsigned. Had any appeal gone to the Prime Minister David Cameron it is highly likely he would have given his full backing to Maude.

David Cameron’s view?

Cameron may be delighted that at least £2bn remains uncommitted to the NPfIT and could be saved by not signing a new deal with CSC.

Conservative MP Richard Bacon, a member of the Public Accounts Committee who has become an authority on the NPfIT, said of CSC’s warning of write-offs on the Programme:

“It was always a worry that the Department of Health was initially keen to sign a new deal with CSC that would have been poor value. Now it seems the Cabinet Office has done its job as an independent scrutineer and has made sure the interests of taxpayers are protected.

“This shows how important it is for the Cabinet Office to have the final say on big Government IT-based projects.”

What does CSC’s plight mean for the NHS?

NHS trusts have long wanted open competitive tendering and now, to a large extent, they have it. More than a dozen acute trusts are likely to tender for major systems replacements this year which is a big increase on the annual rate for past years.

Some iSoft and Cerner sites may also seek to renew contracts or find replacement systems. CSC, which may be lifted of the burden of meeting high-priced NPfIT commitments, may be a strong competitor in the UK health market.

One problem for NHS trusts will be finding enough strong candidates for their shortlists. They may look to the US market – but end up with products that need anglicising, which will be risky process.

Techmarketview says that what is doom and gloom for CSC is an opportunity for others. Rival suppliers “will be cheered by the prospect of more NHS Trusts procuring systems that CSC should have delivered by now”.