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Modernization PlaybookAn Agency Guide to Digital TransformationVersion 1.0Modernization Playbook An Agency Guide to Digital Transformation Version 1.0iii
TABLE OF CONTENTSIntroduction. 2Guiding Principles. 4How to use the Modernization Playbook. 4Leadership of the Assistant State CIO in Modernization. 5Step 1. Put People at the Center of Modernization. 6Committed Leadership. 6Clear Purpose and Priorities. 7Customer Experience (CX). 7Capability for Change. 8Compelling Communication and Change Management. 9Cadence and Coordination in Delivery. 10Step 2. Know Where You Stand (Assess Current State). 11Employ a Business-First Approach to Modernization. 11Document Outcomes, Processes, Pain Points . 11Data Needs . 12Document Your Business and IT Architecture. 12Determine Current IT Spend. 13Assess IT Project Portfolio. 13Step 3. Define the Future State. 14Redefine Customer Journeys that Matter. 14Establish an IT Architecture Vision. 15Rationalize Your Application Portfolio . 15Evaluate Business Rules and Processes. 15IT Security . 16Data Plan and Reporting. 16Step 4: Conduct a Gap Analysis (Business Value and Technical Fit). 18Document the Technology Gap . 18Document the Personnel Resource Gap . 18Document the Data Gap . 18Step 5: Develop a Modernization Action Plan. 19Architectural Design and Roadmap. 19IT Strategic Plan . 19Modernization Action Plan. 19Identify Other Opportunities. 20Step 6: Transition from Planning to Execution. 21Continuous Modernization - Operational Program. 21Conclusion. 22Appendix A. Sources Cited. 23Modernization Playbook An Agency Guide to Digital Transformation Version 1.01
INTRODUCTIONNow more than ever, people rely on the State ofOregon to provide essential services that keep themhealthy and safe and enable them to live fulfilling lives.Whether enrolling for healthcare or unemploymentbenefits, paying their taxes, tracking student’sprogress in school, or managing a public health crisis,the people of Oregon rely on the state’s informationtechnology (IT) systems—often seeking such servicesin their times of greatest need. Unfortunately, manyof the state’s IT systems have not aged well, andhave become increasingly complex and difficult tomodify to adapt to changing circumstances.1 Beyondthe rigidity and fragility of these systems, potentialsecurity vulnerabilities, and associated IT staffingchallenges, the long-term total cost of ownership (TCO)of maintaining these antiquated systems may exceedthe cost of replacing them. Furthermore, with theaccelerated digitalization of our personal lives, thereis a growing gap between customer expectations andtheir experience with state IT systems.Expecting an individual to navigate the complexity ofstate government to learn about potential benefitseligibility or comply with regulatory requirements,complete any number of seemingly duplicativeforms, and to be required to visit one or more stateoffice locations to access services goes beyond mereinconvenience—for our most vulnerable populations,these administrative burdens represent barriers toaccess and reinforce existing inequalities.2 Eliminatingthese administrative burdens requires puttingpeople at the center of modernization, embracingprinciples of human-centered-design (HCD), customerexperience (CX), and design thinking. The premise thatthe state cannot afford to invest in customer service isa false choice.3 While it may not be visible as a budgetline-item, the state incurs a cost for every frustratedcitizen interaction; be it in the form of increasedworkload by front-line staff, reputational damage, orintervention by individual Legislators advocating onbehalf of their constituents.Historically, state IT systems have been designed withan inside-out perspective; i.e., from the standpoint ofindividual program units or internal agency divisionsseeking to digitize existing business processes.This narrow perspective has implications both forcustomer service (i.e., the people of Oregon) as wellas the ability of agencies to leverage the data theysteward on behalf of the public as a strategic asset,both within and across program areas. In terms of CX,the inside-out perspective tends to over-emphasizethe importance of individual client interactionsversus the overall customer journey. Taken together,the persistence of legacy IT systems and manualprocesses, a lack of human-centered-design(HCD), and the consequent failure to meet publicexpectations have contributed to the erosion of trustin state government.As a long-term journey to improve agency performance and efficiency, modernization offers a pathforward for agencies to improve services whiletransitioning to more nimble and sustainable technology. Recognizing the urgent need to modernizestate IT systems and lay the foundation for digitaltransformation, the Governor’s Action Plan for IT,User Friendly, Reliable and Secure: Modernizing StateInformation Technology Systems and Oversight calledon Enterprise Information Services (EIS) to partnerwith Executive Branch agencies in the developmentof multi-year IT modernization plans for retiringlegacy systems and optimizing service delivery.4 Asreferenced in the EIS 2020-23 Strategic Framework –1For example, an Oregon Employment Department (OED) analysis estimated that it would take between 2,000 to 6,000development hours to eliminate the now infamous “waiting week” from its mainframe code to take advantage of the Federal waiver. Thisis just one of several developments stemming from the continuing economic consequences of the COVID-19 and the establishment of newfederal programs (i.e., Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020) that require changes to OED’s legacy systems toaccommodate expanded eligibility for unemployment benefits and changed the criteria by which people qualify.2Julian Christensen et al., “Human Capital and Administrative Burden: The Role of Cognitive Resources in Citizen‐StateInteractions,” Public Administration Review 80, no. 1 (January 2020): 127–36, https://doi.org/10.1111/puar.13134.\\uc0\\u8221{} {\\i{}Public Administration Review} 80, no. 1 (January 20203Tony D’Emidio et al., “The Global Case for Customer Experience in Government,” Public Sector Practice (McKinsey & Company,September 2019), er-experience-ingovernment.4Kate Brown, Nik Blosser, and Terrence Woods, “User-Friendly, Reliable and Secure: Modernizing State Information TechnologySystems and Oversight” (State of Oregon, September 24, 2018).2State of Oregon - Enterprise Information Services
version 1.0, Assistant State Chief Information Officers(ASCIO) will:Modernization offers the potential to fundamentallytransform how state agencies deliver services to thepeople of Oregon. It encompasses more than Develop business-driven Agency IT Strategic plans,planning, assessment, and specific applicationandmigrations. It represents a change in culture, a newway of doing business, and a means to ensure Develop a set of consistent, coordinated, andalignment between business and IT leadership. Incollaborative multi-year modernization strategiesPlanAlign short, modernization isLeadnot an IT initiative, rather it isfor each of thesix policy verticals: Administrationanopportunitytoreimaginehow the state delivers& Business Services, Education, rvices to the people of Oregon. This playbookPeople, Natural Resources, Public Safety, and5supports the objectives outlined in the n & tionPrioritizationRoadmapsAlignmentStrategyAction Plan for IT and the EIS Strategic Framework2020-2023. Additionally, it provides guiding principlesBusiness ProcessGovernanceModernizationService Delivery SecurityStrategyto alignagencyCompliancemodernization Improvementprograms to a commonvision for modernization and digital transformation.EIS Modernization PlaybookInfrastructure& OperationsSecurity & RiskManagementDevOpsCloud ServicesAgency ngModernizationVision.“Optimizing essential services that the people of Oregon relyProcessTechnologyon through resilient, adaptive, secure and customer-centered digital transformation.”PeopleModernization and the Journey Towards Digital TransformationFigure 1. Modernization and the Journey Towards Digital TransformationPut people first andcommit to digitaltransformation 5Know where you standand reimagine thecustomer experienceModernize applications andbuild an integrated digitalenterprise platformPlan at the enterprise level and develop long-term goals, while remaining focused onnear-term tactical actionsEmbrace agile practices, empowered teams, and incremental delivery—generatingquick wins and building momentumTerrence Woods, “Strategic Framework 2020-2023, version 1.0” (State of Oregon: Enterprise Information Services (EIS), n.d.).Modernization Playbook An Agency Guide to Digital Transformation Version 1.03
2021Modernization Vision - “Optimizingessential services that the people ofOregon rely on through resilient, adaptive,Whilemodernizationcan be definedas a “phased, incremental approach to the improvement of the io,sometimesdriventhroughdemandfor new digital functions and sometimes to simplify and reducetransformation.”GUIDING PRINCIPLESrisk,” such a narrow definition tends to reinforce an IT-centric view of modernization. 6 Modernization is notsimply about identifying discrete legacy systems to replace and digitizing or automating current businessprocesses. Modernization, properly understood, embraces people, processes, and technology, supports digitaltransformation, and is informed by the guiding principles that follow.Modernization– GuidingPrinciplesFigure 2. Modernization– GuidingPrinciples Put People First. Successful modernization starts and ends with people—theexperience of people who rely on the essential services provided by the State ofOregon, the ability of state employees to effectively provide those services, and theability of agency leadership to drive digital transformation Aligned and Enabled. Alignment with the EIS Vision for user-friendly, reliable andsecure IT systems and between agency business and IT leadership will enableagencies to fulfill their mission and strategic objectives, while continuing to deliverthe core services that the people of Oregon rely on Data- and Privacy-Informed. Modernization provides a unique opportunity toleverage data as a strategic asset across systems and programs, govern and managethat data throughout its lifecycle, enable data-driven decision-making andtransparency by default, and to critically evaluate whether the collection andstorage of sensitive personal information is truly necessary Secure by Design. Secure by design embraces secure coding practices and theseamless integration of security policy and controls into the fabric of the IT systemitself Agile and Continuous Improvement. Modernization requires sustained investmentin our people, the formation of empowered teams and embrace of agile practices,and a culture of continuous improvement encompassing people, processes andtechnologyHOW TO USE THE MODERNIZATION PLAYBOOKThe purpose of this playbook is to guide agencies in the development of a Modernization Action Plan (MAP)by following the steps outlined below, along with the associated activities, checklists, and required artifactsidentified.1) Put People at the Center of Modernization. Putting people in the center of modernization encompassescommitted leadership, clear purpose and priorities, customer experience (CX), compelling communication,capability for change, and cadence and coordination of delivery.2) Know where you stand. Assessing your current state will enable you to clearly define a future-state vision,determine the level of effort and resources required to realize that vision, and gauge progress over time.6Don Scheibenreif, Kristin Moyer, and Peter Aykens, “Four Definitions Make a Digital Business Strategy Business More Effective”(Gartner, May 11, 2018).4State of Oregon - Enterprise Information Services
3) Define the Future State. Re-define the customer journeys that matter and determine the requisitecapabilities necessary to provide accessible and inclusive digital public services.4) Conduct a Gap Analysis. Document technology, resourcing, data, and other gaps in capabilities by comparingthe current and future state assessments.5) Develop a Modernization Action Plan (MAP). Informed by the gap analysis, map business priorities to thenecessary business and technology capabilities required to support them and prioritize specific actions basedon agency strategic objectives, internal IT governance, available resourcing, and through the application ofEIS’ Modernization principles.6) Transition from Planning to Execution. Put the MAP into action by launching individual modernizationprojects and building a program of continuous modernization.Please note, this playbook neither asserts nor plans the actual solutioning of specific IT systems or developmentof new capabilities. This playbook is intended to be used in conjunction with the EIS Strategic Framework 20202023 version 1.0, Cloud Forward: A Framework for Embracing the Cloud in Oregon – version 1.0, the StatewideInformation and Cyber Security Standards, the Oregon Data Strategy, and the current EIS and enterprisestatewide policies to guide actual solutions.LEADERSHIP OF THE ASSISTANT STATE CIO IN MODERNIZATIONIn support of the Governor’s Action Plan for IT andas part of the EIS 2020-23 Strategic Framework,ASCIOs are responsible for partnering with agenciesin the development of consistent, coordinated, andcollaborative multi-year modernization strategiesfor each of the six policy verticals. The developmentof individual agency MAPs is foundational to thiswork. As is the establishment of common definitions,templates, assessment tools, and repeatable processes,development of business-driven Agency IT Strategicplans, and maturation of agency IT governance.and serving as a guide to agencies as they embarkupon their journeys towards digital transformation. Incollaboration with agency leadership and IT resources,ASCIOs will assist agencies in assembling plans androadmaps related to:Beyond these specific deliverables, ASCIOs are alsotasked with building trusted relationships with theiragency partners and promoting the values embeddedwithin the modernization vision for Oregon-encompassing people, processes, and technology— GovernanceModernizationTransformation of service deliveryAlignment to enterprise policies and guidance,including EIS Framework, security, cloud, and datastrategies.Business Process improvementWhile some agencies have already embarked on theirmodernization journey—having made substantialprogress—the ASCIOs are ready to assist agencies justbeginning their modernization planning efforts.EIS 3.ModernizationPlaybookFigureAssistant State CIOs – Alignmentof PrioritiesPlanAlignLeadAssistant State CIO – Alignment of tizationGovernanceModernizationService DeliverySecurity StrategyComplianceBusiness ProcessImprovementInfrastructure& OperationsSecurity & RiskManagementDevOpsCloud ServicesAgency ngPeopleProcessTechnologyModernization and the Journey Towards Digital TransformationModernization Playbook An Agency Guide to Digital Transformation Version 1.0Modernize applications and5
STEP 1. PUT PEOPLE AT THE CENTER OF MODERNIZATIONIt is difficult to overstate the importance of putting people at the center of digital transformation and modernizationinitiatives—leadership (both business and IT), constituents, and employees alike. Putting people at the center ofdigital transformation goes beyond traditional leadership and formal organizational change management (OCM)methodologies. Putting people in the center of modernization encompasses: Committed leadershipClear purpose and prioritiesCustomer experience (CX) Compelling communicationCapability for change andCadence and coordination of delivery7Committed LeadershipCommitted and engaged executive leadership iscritical to successful modernization. Modernizationrelated activities will require a substantialcommitment of personal capital by agency leadership,accountability for the success of the change, theneed to embody or role model the change, and thewillingness to challenge long-standing assumptionsand institutions. In some instances, agency leadershipmay be required to devote significant time to amodernization initiative. It is critically important toforge an effective partnership between business andIT leadership at the outset of this journey to ensurethat both constituent needs and technical capacity areat the forefront of the initiative.Beyond individual leadership, committed leadershipfrequently entails executive sponsorship and theestablishment of an Executive Steering Committeeto guide developing modernization plans. Strategicdecisions will need to be made early in themodernization journey to establish scope, guidingprinciples, staffing, and budget. Securing thenecessary resources to undertake modernization willlikely require substantial effort. The Executive SteeringCommittee can ensure alignment with the agency’sstrategic direction, provide project guidance, giveadvice on business process improvements, and removeroadblocks when necessary.Another foundational leadership component is theestablishment of an IT Investment Governance Council.This group, like an Executive Steering committee,guides the work but may be more operational infocus as it will prioritize the large bodies of work IT tobeen assigned during the planning phase. In smalleragencies, the IT Investment Governance Council canalso act as the Executive Steering committee.Membership of the Executive Steering and ITInvestment Governance Council should include abalanced cross-section of representation from theagency service verticals; e.g., executive leadership,business and program leadership, IT, communications,and finance. Agencies are also encouraged to includerepresentative stakeholders and an external partner toprovide diverse perspectives, and to consider includingyour assigned ASCIO or Senior IT Portfolio Manager(SIPM) as a non-voting member.Checklist Establish formal IT Investment Governance Establish an Executive Steering Committee for themodernization program Establish an effective partnership between agencybusiness areas and agency ITArtifacts IT Investment Governance Charter Executive Steering Committee Charter, dependingon the size of the agency7In Delivering for Citizens: How to Triple the Success Rate of Government Transformations, the McKinsey Center for Governmentidentified five critical disciplines necessary for successful government transformations. When all five disciplines were embedded within atransformation initiative the likelihood of success was more than tripled (i.e., 3.5x more likely to succeed). The discussion that follows isinformed by McKinsey’s research and expands on the 5Cs framework they proposed. “This research is based on a major global study ongovernment transformations conducted by the MCG. We surveyed nearly 3,000 public servants who had been involved in transformationsacross 18 countries. We interviewed more than 30 leaders who had personally driven such change efforts and combined this with analysisof more than 80 case studies of government transformations around the world.” Terra Allas et al., “Delivering for Citizens: How to Triple theSuccess Rate of Government Transformations,” McKinsey Center for Government (McKinsey & Company, June 2018).6State of Oregon - Enterprise Information Services
Outcomes Process for decision making and prioritization Ensure that Executive Leadership is committedand engagedClear Purpose and PrioritiesIt is important to establish a clear vision for the transformation of service delivery, commit to that vision,clearly account for the current state, and focus onthe future state and the measurable outcomes of keymetrics to gauge progress over time. Communicating aclear purpose will help staff and stakeholders in understanding the changes and will assist with their buy-infor new systems, processes, and policies. Addressingconcerns early in any change mitigates the adoptionissues that could lead to negative feelings about whatwill come and potential resistance.Checklist Create an agency vision statement for servicedelivery. The vision statement should beaspirational and describe how the agency wouldlike to provide services to its consumers and inwhat manner Establish clear metrics and targets and make thempublic to establish accountability and celebratesuccesses Contact your Senior IT Portfolio Manager toestablish a program entry in Project PortfolioManagement SystemArtifacts Agency Vision Statement Modernization Planning CharterOutcomes Understanding the scope of modernizationplanning and goals of modernization8910Customer Experience (CX)Embracing CX represents a shift from a programspecific or transactional view of customer service toone that emphasizes the importance of a person’s endto-end service journey and placing customers at theheart of decision-making and focusing on the designand delivery of physical and digital public services.8 Inworking to improve customer experience, it is criticalto understand the customer journey — “that is thecomplete series of interactions a customer has withan agency—and the drivers of experience that mattermost is the starting point.” 9 In many cases, people mayindicate satisfaction with a service interaction and yetbe dissatisfied with the overall experience.Historically, there has been a tendency to underinvestin CX and allocate scarce public resources to programmatic objectives or simply attempting to deliverservices faster. However, recent research suggests thatthis is a false choice and that investments in CX candrive critical outcomes within public sector organizations, including “increased trust,” “achievement ofstated missions,” “meeting or exceeding budgetarygoals,” “reducing risk,” and “ boosting employeemorale.” Furthermore, recent research indicates thatreliability and simplicity are the two most criticaldrivers of customer experience based on globalcustomer satisfaction surveys (CSAT) that evaluatedthe relative importance of reliability, simplicity, speed,transparency, quality of instructions, employeeprofessionalism, and employee responsiveness ingovernment services.10In applying CX principles, it is important to considerother state agencies the customer may need tointeract with to access the services the agency isproviding. Partner with other agencies to determineif there is a way to streamline service delivery acrossthese cross-agency touchpoints to improve ortransform the customer journey.Allas et al., “Delivering for Citizens: How to Triple the Success Rate of Government Transformations.”D’Emidio et al., “The Global Case for Customer Experience in Government.”D’Emidio et al.Modernization Playbook An Agency Guide to Digital Transformation Version 1.07
Checklist List the agency stakeholders, internal andexternal, to know who or how to engage themduring this planning process. Develop a community outreach or engagementstrategy to ensure all constituent voices are heard.Artifactsmultiple divisions, sections, or program areas, besure the sponsor(s) has some level of influenceover those areas. It is not recommended that theExecutive Sponsor be the Chief Information Officer.While a partner, the drive for modernization shouldcome from business leaders. Program Manager. Another key resource is aModernization Manager. In larger agencies,formal modernization programs should have adedicated Modernization Manager who will helpdirect activities, work with internal and externalgroups, and manage potential contracts. TheModernization Manager will carry out the visionof the Executive sponsor, manage the day-to-dayactivities, and direct program resources andworkgroups to achieve desired outcomes. Insmaller agencies, boards, and commissions,the work of modernization may occur duringestablished executive leadership meetings withexisting staff assigned to track progress. Subject matter experts (SME). SMEs that knowbusiness processes and policies, laws, and therules that the agency needs to follow. Business analysts. Working with SMEs, businessanalysts are key resources who can helpdocument business processes and be a translatorbetween business and IT in understanding whatthe existing system does and what it could do. Research/Data analysts. Document current datadictionaries, future data needs, reporting needsand sources to be integrated. Systems Analyst. System management andinterfaces - documenting current state applicationarchitecture, interfaces, and business rules.This team could assist in estimating effort indevelopment, migrating interfaces, and planninglegacy systems shutdown. Organizational change manager (Recommended).Create and implement an organizationalchange management plan. This can includecommunications and training. Workgroups could also be created to divide thework of modernization. Suggestions for groupsother than normal project teams include: Stakeholder list Outreach StrategyOutcomes Plan for engaging customers, stakeholders, andstaff.Capability for ChangeBuild the capability for change throughout theorganization. It will be necessary to identify the rolesand resources necessary to support modernizationplanning. From there, address critical skills gaps,including operational management; project, program,and change management; technical and analyticsskills. 11 In working to
processes. Modernization, properly understood, embraces people, processes, and technology, supports digital transformation, and is informed by the guiding principles that follow. Figure 2. Modernization – Guiding Principles JAN 2021 An Agency Guide to Digital Transformation –version 1.0 EIS Moderni
