NC Budget System Risk Identification Likelihood Severity Very Very Somewhat 50-50 Highly Nearly Minor Moderate Significant Significant Disastrous Unlikely Unlikely Chance Likely Certain Impact Impact Impact Impact Impact Identified Risk 1 2 3 4 5 1 2 3 4 5 1 Large project scope replacing multiple legacy systems and affecting numerous 5 5 business processes results in poor or failed outcome. 2 Decisions on program budgeting and other policy changes are not resolved resulting 4 5 in an ineffective budget system. 3 Failure to manage expectation across state government including incorrectly 4 5 interpreting Governor's desired outcomes. 4 Configured system does not meet core 4 5 system requirements. 5 Problems or delays associated with achieving proper authorization of project 1 4 funding. 6 Contractor failure to provide experienced, qualified staff who understand the 3 5 requirements and how to deliver those requirements on time. 7 Intense training needs for both program budgeting and new budget system are not 5 4 adequately provided due to time and staff constraints. 8 Conflicting priorities. Project implementation and/or other mission- critical responsibilities (e.g. budget 5 4 preparation) suffer from staff time constraints. 9 Fixed delivery date of Sept. 2010 is 4 4 aggressive and not achieved. 10 Complexities or complications related to data migrations and integrations from 4 4 multiple systems, including the current budget system. 11 Resistance or lack of cooperativeness from key partners to secure external 3 4 resources (e.g. OSC, ITS, NCGA) 12 Loss or burnout of staff responsible for 3 4 implementing system. 13 Agencies resist or stall program budgeting. 5 3 14 Lack of user participation, cooperation and 4 3 buy-in. 15 Software has limited history of application 4 3 in state government. 16 Unanticipated system requirements or process changes are discovered late in the 4 3 implementation process. 17 Phasing of project results in the need to 4 3 operate dual systems during rollout. 18 Political or legal risk associated with 3 3 software selection. 19 Project cost overruns 3 3 20 Unanticipated events (i.e., major weather 2 1 events, outbreak of illness). Budget System Project Risk Identification Likelihood Nearly Highly 50-50 Somewhat Very Certain Likely chance Unlikely Unlikely Disastrous 1 2, 3, 4 5, 6 Severity Impact Very Significant 7, 8 9, 10 11, 12 Impact Significant 13 14, 15, 16, 17 18, 19 Impact Moderate Impact Minor 20 Impact Extremely High Risk (Risk Mitigation Plan Developed) High Risk Moderate Risk Low Risk **The mitigation plans have been developed only to address those risks that fell into the Extremely High Risk category as depicted in the graph above** Budget System Project Risk Identification epicted in the graph above** Budget System Project Risk Identification Risk Strategy Strategy Lead Task Lead Other Task When to take actions Intended result of this Comments Participants action 1 Large project scope replacing multiple Names legacy systems and affecting numerous suppressed business processes results in poor or failed outcome. a Management and Project Team need to identify and involve subject Names Names suppressed Immediately and Individuals with Action Item: Subject matter experts should be identified and matter experts in OSBM and agencies throughout implementation. suppressed continuing throughout appropriate knowledge contacted about participation early in the project. the project as needed are selected for This strategy is extremely important during the documentation of participation in project business processes that are external to OSBM. b Identify and map all business processes and interfaces (ex. NCAS, Names Names suppressed Immediately All current business Subject matter experts at OSBM and within agencies need to be CMCS, ). suppressed processes and heavily involved. Participation of OSC technical staff will be interfaces internal and extremely important. external to OSBM will be documented c Legacy systems are maintained and able to produce the Governor's Names Names suppressed July 2010 Governor's FY 2011-13 non-program budget should the new system fail. suppressed recommended budget will still be produced if new system is not available d Project is properly scoped/phased to accomplish expected Names Names suppressed Prior to RFP being System will be properly outcomes of the system by Sept. 2010. suppressed issued for integrator scoped/phased so that implementation is achieved by desired date e Program budget information needs to be identified. Names Names suppressed See Risk #2 below for See Risk #2 below for suppressed more detailed more detailed information information 2 Decisions on program budgeting and Names other policy changes are not resolved suppressed resulting in an ineffective budget system. a Project Team will recommend policy and business process changes Names Names suppressed Prior to vendor on site Required policy and * Project Team should communicate to the Management Team to the Management Team, giving management sufficient time to suppressed and then ongoing business process when decisions are needed. review and report decisions back to the Project Team and to changes will be given *Project Team should not be sidetracked by debating and communicate changes to analysts. proper review and formulating policy decisions (e.g., program budgeting) that are not evaluation prior to part of the scope of work. implementation and they will be communicated to stakeholders. b Program budgeting. Data elements required for program budgeting Names Names suppressed Mid January All stakeholders will * Very specific listing and description of all data items involved, in the new system and in the budget document will be developed, suppressed know the exact along with benefits of having these elements now and in future. agreed upon by management, and communicated to analysts. expectations for * Specify which elements relate to agencies and which relate to program budgeting in programs/funds/RCCs and any other dependencies. writing and these specific requirements will be in place for the Integrators. They will know what elements are going to be presented in the budget document and which will not. c Program Budgeting. Monitoring of progress for program budget Names David February 15, 2010 Because failure/inability * Need review and signoff from analysts, ASBOs, and Erin's team mapping to funds will be tightly controlled with enforced deadlines, suppressed to convert SOME for mapping to be used. management intervention as appropriate, and management current fund/RCCs to * Indicate which programs are at RCC level. reporting to project team on weekly basis until complete. programs will jeopardize * Make sure all funds are covered in mapping success of new system, * Make sure all agencies have enough details in mapping to reflect OSBM must use the actual programs. approved mapping from the beginning and ensure there are no exceptions that will jeopardize statewide coverage of program budgeting. Budget System Project Risk Identification Risk Strategy Strategy Lead Task Lead Other Task When to take actions Intended result of this Comments Participants action d Changes to incorporate program budgeting and other changes to Names Names suppressed January 31, 2010 and There is improved * OSBM needs to work from one set of vision-goals-expectations for business processes will be communicated to agency contacts in a suppressed ongoing as needs arise chance of success with program budgeting (and for entire new budget system) so that all timely manner with one version of vision, goals, and expectations cooperation from communications with external stakeholders reference the same for capturing and displaying data in new budget system. agencies in expectations. implementation of the * Project team will ensure that press-release/information bulletin is new system when prepared for OSBM and Governor's office use in informing others agencies know what is about the new budget system, including program budgeting. planned well ahead of schedule. OSBM needs to work from one set of vision-goals- expectations for program budgeting (and for entire new budget system) so that all communications with external stakeholders reference the same expectations. e Lay out recommended budget publication in sample document and Names Names suppressed 22-Jan-10 All stakeholders will * Need general agreement from management and OSBM analysts. get sign off by management (include program budgeting elements suppressed know exactly how * Ensure that presentation makes sense and is useful and new formats for fiscal data, follow up on suggestions for program budgeting fits * No major changes after mockup is finalized. summary relating capital to operating, etc.). Include options for into the Governor's fallback document if new system is not ready in time. recommended budget document. The mock-up will be available to the Integrators for initial planning purposes. f All budget development business process changes must be Names Names suppressed ongoing Allowing one agency an * When Charlie or other management is asked for exceptions by enforced at agencies with no exceptions prior to discussion and suppressed exception to adopted agencies, these requests should be taken to the project team for evaluation of repercussions by project team. business processes can evaluation and recommendation to management. jeopardize the success of the whole project. g Project Team must be the advocate at OSBM for keeping the Names Names suppressed ongoing The compressed time * Re-evaluate time line periodically and recommend actions to project on the accepted schedule. suppressed frame for management to rectify slippages as they occur. implementation allows * With Charlie's support, re-brief ASBOs as needed to stress office almost no slippage -- the priorities project team has to take * Keep internal staff informed of timeline, progress, and slippages responsibility for * Call full staff meetings if/when needed ensuring that slippage * Strategize with management to balance the work load does not occur, * Periodic project status reports are critical especially slippage due * Vendor's progress will be tightly monitored to changes in business processes. h All business process changes will be communicated to the vendor. Names * Periodic meetings with vendors and formal reports will document suppressed all business process changes. * Progress in implementing changes will be reflected in periodic progress reports. 3 Failure to manage expectation across Names state government including incorrectly suppressed interpreting Governor's desired outcomes. a Communicate goals and expected results of the new budget system Names One time at beginning Goals are stated and Action Item: Develop a Communication Plan to all stakeholders at the beginning of the integration process. suppressed of project understood at the outset This strategy should be addressed in the Communication Plan. of the project b Executive Talking Points (what the project is and is not) Names One time with possible Management is clear See Communications Plan suppressed updates as needed and consistently states goals c Clearly define project benefits Names One time with possible Stakeholders clearly See Communications Plan suppressed updates as needed understand the benefits of the new budget system d Formal conversation with the Governor's Office Names Names suppressed Monthly Governor's needs are See Communications Plan suppressed met & project results are understood Budget System Project Risk Identification Risk Strategy Strategy Lead Task Lead Other Task When to take actions Intended result of this Comments Participants action e Routine communication with all OSBM staff Names Names suppressed Periodically, not weekly Staff clearly See Communications Plan suppressed & at least monthly or as understands benefits of needed new system f Agency communications across government Names Names suppressed As needed State level system See Communications Plan suppressed benefits are specific and understood by all 4 Configured system does not meet core Names system requirements suppressed a Identify customizations as early as possible by having existing Jan-Feb 2010 Integrator will not waste business processes documented before the Integrator arrives. time documenting processes b Document the anticipated future state of the budget development Jan-Feb 2010 Integrator will not wast process that includes any potential process efficiencies before the time documenting Integrator arrives. processes c Ensure that the RFP and contract include provisions that hold the Names December 1, 2009 Makes vendor contractor responsible for meeting core system requirements and suppressed responsible provide the state with options to seek relief if requirements are not met. d Delay implementation of new functions until new system is OSBM/Agency budget satisfactory staffs will not be overwhelmed 5 Contractor failure to provide experienced, Names qualified staff who understand the suppressed requirements and how to deliver those requirements on time. a Include provisions in the contract with the Integrator that requires a Names Names suppressed March 10th 2010- Having competent specific time commitment of experienced consultants and quick suppressed throughout project/Or consultants available replacement of ineffective consultants. as soon as the when needed integrator comes on board Status Report created and shared with project team on a weekly Names Names suppressed March 10th 2010- Timely implementation basis suppressed throughout project/Or of budget software as soon as the integrator comes on board Monthly summary of deliverables and constant updating of Names Names suppressed March 10th 2010- Ensure adherence to deliverable schedule suppressed throughout project/Or deliverable schedule as soon as the integrator comes on board 6 Intense training needs for both program Names budgeting and new budget system are not suppressed adequately provided due to time and staff constraints. a Develop a training plan for the new budget system. Names Names suppressed May-June 2010 Timely/Comprehensive - Bill Stockard has volunteered to help with this effort. suppressed training - Timing of training for OSBM and for agency users is important. - Need to identify enough trainers and involve people who have experience in training. b Provide a help desk for new system. Names Names suppressed May-June 2010 Allow end user a suppressed resource to answer questions when the user manual or on-line help is not sufficient. c Develop a user manual for the new system. Names Names suppressed May-June 2010 Comprehensive Integrator should provide a technical writer to assist with develop of suppressed information guide that training/user manual. will allow the system user to find answers to their own questions- Eliminate/Reduce budget system related calls to OSBM Budget System Project Risk Identification Risk Strategy Strategy Lead Task Lead Other Task When to take actions Intended result of this Comments Participants action d Develop content-specific on-line user help for the new system. Names Names suppressed May-June 2010 Online information guide suppressed that will allow the system user to find answers to their own questions- Eliminate/Reduce budget system related calls to OSBM 7 Conflicting priorities. Managing project Names implementation and/or other mission- suppressed critical responsibilities (e.g. budget preparation) result in burnout or loss of staff. a Work activities that are not mission-critical should be placed on Names Names suppressed As Needed To allow adequate Management support of this strategy is critical. hold. suppressed participation on project & develop staff resouces b Standing item on Oversight Committee meeting to discuss work Names Names suppressed Weekly To identify and resolve conflicts on teams and within sections. Two way conversation of suppressed matters quickly project team to OC and OC to management team. c Standing agenda item with team to discuss priorities, conflicts and Names Weekly To identify and resolve any problems with getting participation. suppressed matters quickly d Team to develop and submit ideas to the Oversight Committee for Names Names suppressed One time To have options backfilling or addressing conflicts. suppressed available for management action e Management should take risks in reassigning staff resources to Names Names suppressed As Needed To allow adequate reduce regular work duites from interfering and causing stress on suppressed participation on project project team members. & develop staff resouces f Management should replace the loss of a team member quickly with Names Names suppressed As Needed To avoid lost time, another experienced staff member. suppressed project delays/costs. g New team members should be provided with previous agendas and Names As Needed To avoid lost time, notes from those meetings to expedite their ability to function as part suppressed project delays/costs by of the team. keeping staff updated and informed. h Plan for staff outages and off load work. Names Names suppressed As Needed To allow staff to take suppressed planned time off and continue project progress i Need a strategy room where the project team can regularly and Names Names suppressed One time at project To facilitate comfortably work without interruption. suppressed outset communication, team work, and efficiency. 8 Fixed delivery date of Sept. 2010 is Names aggressive and not achieved. suppressed a Project must be managed and all staff must commit to achieving Names Names suppressed Immediately Ambitious project Charlie and the Management Team must continue to make this tasks by the date on the project schedule. Time should be used suppressed schedule does not allow project the top priority even if other important work activities get efficiently. Team should use emails to communicate instead of for delays if Sept. 2010 delayed. meeting, and when necessary, meetings should be brief and deadline will be met. focused. b When a delay is unavoidable, develop a plan of action to get back Names Names suppressed As soon as the problem Ambitious project on schedule. suppressed or delay is identified. schedule does not allow for delays if Sept. 2010 deadline will be met. c Prepare for and schedule subject matter experts well in advance of Names Names suppressed At least two weeks prior Ensure that subject when the Project Team actually needs their participation. suppressed to needed participation. matter experts are available when they are needed in order to keep project on schedule. d Develop a fall back plan in case the new system is not able to Names Names suppressed See Risk #10 for more See Risk #10 for more See Risk #10 for more detail. produce the Governor's Budget by Sept. 2010. suppressed detail. detail. e Project is properly scoped/phased to accomplish expected Names During RFP Ensure that scope of See Risk #1, Strategy D for more detail. outcomes of the system by Sept. 2010. suppressed development. work is realistic and achieveable by deadline. 9 Complexities or complications related to Names data migrations and integrations from suppressed multiple systems, including the current budget system. Budget System Project Risk Identification Risk Strategy Strategy Lead Task Lead Other Task When to take actions Intended result of this Comments Participants action a Document current state of data interfaces and integration of Names Names suppressed Before Integrator Integrator will have clear * Explain how Oracle and BPS currently interact systems suppressed arrives detailed description of * Explain timing, scope, and purpose of external inputs and outputs. all data flows to and from current mainframe and Oracle systems. b Document expected future state related to data integration and Names Before Integrator Integrator will have clear * Explain timing, scope, and purpose of external inputs and outputs. interfaces suppressed arrives detailed description of * Explain steps needed in loading data from mainframe and Oracle all data flows to and new system. from anticipated new budget system, i.e., including features not in current system. c Develop fall-back plan for data migration of appropriate Oracle data Names Before Integrator Project Team and * Explain steps required for each adopted fall-back plan for if new system is not ready in time for biennial budget document. suppressed arrives Integrator will know what producing the performance management elements of the budget actions to take and document and for tying the document together in the new system. critical time for changing * Address the possibility that the document has to be produced from course if it appears that the current Oracle system. the new system will not be ready for use in collecting and presenting performance management information. 10 Resistance or lack of cooperativeness Names from key partners to secure external suppressed resources (e.g. OSC, ITS, NCGA) a Identify and contact key external partners early in the process to Names At beginning of project To identify and secure Action Item: Develop a Communication Plan encourage cooperation and make sure experienced staff within suppressed and ongoing the best resources for This strategy should be addressed in the Communication Plan. those agencies are available to assist OSBM with this project. the project to insure success. b Make sure these external partners are included on any distribution Ongoing In order to keep people See Communications Plan list for newsletters or email updates about the project. informed and ready to work c Clearly define project benefits Names One time with possible Stakeholders clearly See Communications Plan suppressed updates as needed understand the benefits of the new budget system d Address ITS lag times (start hardware procurement asap, request Names At beginning of project To keep the project on See Communications Plan ITS expedited timelines). suppressed schedule e Contact management in agencies where delays occur. Escalate Ongoing To keep the project on See Communications Plan and/or publically identify if necessary. schedule 11 Loss or burnout of staff responsible for Names implementing system. suppressed a Management should reassign staff resources to reduce regular Names Names suppressed At project outset and as To allow key staff time This is challenging for team members that have unique roles in the work duites from interfering and causing stress on project team suppressed needed and focus to deliver office with little backup support (ex. Mercidee, Francine) members. results b Management should replace the loss of a team member quickly with Names Names suppressed As Needed To avoid lost time, another experienced staff member. suppressed project delays/costs. c New team members should be provided with previous agendas and Names As Needed To avoid lost time, notes from those meetings to expedite their ability to function as part suppressed project delays/costs by of the team. keeping staff updated and informed Team to develop and submit ideas to the OC committee for Names One time To have options backfilling or addressing conflicts and burnout (compensations, flex suppressed available for schedules, temp staffing). management action Encourage management to take risks in placing key assignments Names Names suppressed As Needed To allow key staff time with other staff. suppressed and focus to deliver results Make meetings on target, focused and as brief as possible. Names Every Meeting To use time wisely and suppressed to encourage efficiency and clarity Utilize email to communicate. Names As Needed To use time wisely and suppressed to encourage efficiency and clarity Budget System Project Risk Identification Risk Strategy Strategy Lead Task Lead Other Task When to take actions Intended result of this Comments Participants action Plan for staff outages and off load work. Names Names suppressed As Needed To allow staff to take suppressed planned time off and continue project progress Need a strategy room where the project team can regularly and Names Names suppressed One time at project To facilitate comfortably work. suppressed outset communication, team work, and efficiency.