SUPPORTS ITEM NO. 5
CS&B COMMITTEE AGENDA
JULY 25, 1996
ADMINISTRATIVE REPORT
Date: July 8, 1996
TO: Standing Committee on City Services and Budgets
FROM: The Corporate Management Team
SUBJECT: Reorganization of the Information Technology Function
RECOMMENDATION
A. THAT Council approve the reorganization of the
Information Technology function by creating a new
department within the Corporate Services Group
comprised of the present Information Services
operation and the Telecommunications section of
Engineering, including responsibility over and for
the underground communication plant and the
tele-communications equipment but excluding the
Radio Shop operations, as further described in the
body of this report.
B. THAT Council approve the establishment of a new
position to head up the Information Technology
department and the abolishment of the Manager of
Information Services position, which is presently
vacant. Further that the General Manager of Human
Resource Services be requested to classify the new
position, provisionally titled "Director of
Information Technology", in the normal manner. The
estimated annual incremental cost of $20,000
related to this classification will be funded from
the Corporate Services' operating budget.
C. THAT Council instruct staff to engage the services
of an outside personnel agency to assist with the
nation-wide recruitment of a Director of
Information Technology with funds provided from the
Corporate Services' operating budget.
D. THAT all staff affected by this reorganization
retain their existing positions and salary levels
in the new organization at start up, subject to a
full position review and classification assessment
at a later date to reflect the City's changing work
and job requirements. Additionally, a thorough and
comprehensive training program will be provided to
assist staff with the transition into new job
duties and responsibilities resulting from the
reorganiza-tion; and
FURTHER THAT a plan be developed by the General
Manager of Engineering Services in order to provide
for an orderly and smooth transition of the
tele-communications services to the Information
Techno-logy department in an appropriate time
frame.
E. THAT staff be instructed to report back to Council
from time to time on staffing issues concerning the
new Information Technology department in order to
bring the level of its services to full functional
capacity to adequately respond to workload
consider-ations connected with the City's Better
City Govern-ment and Customer Service initiatives.
COUNCIL POLICY
On June 19, 1990, Council established "information" as one of
the City's corporate priorities.
On December 8, 1994, Council approved an Information Systems
Plan for City operations in order to provide the technical
and financial basis for the development and implementation of
information systems and technology to achieve change, reduce
costs, and enhance services.
Council is the approval body for major corporate
reorganiza-tions.
PURPOSE
The purpose of this report is to introduce and present the
findings of a consultant study (Teleconsult)* on the
reorganization of the information technology function within
the City's corporate organization. The report
recommendations set out the game plan for accomplishing the
reorganization in the least disruptive manner to staff and
services and are presented to Council for approval.
BACKGROUND
On September 28, 1995, Council approved a report which dealt
with the engagement of consultant services for the Emergency
Operations and Communications Centre (the "EOCC"). Besides
dealing with the consultant services directly related to the
proposed operations of the EOCC, the report also identified
two
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*Report on file in City Clerk's Office.
related projects around basic technology and organizational
issues that, to a large extent, are driven by rapid changes
in communications technology and the innovative development
of user-friendly business applications. Council was told
that the consulting work on the two projects described below
would be advanced under the City's Better City Government
initiative and funded from those sources.
- Broadband Communications Infrastructure
Computing technology, digital telephone technology, voice
processing, video services, remote monitoring, and radio
communications are converging to a digital technology. A
single broadband network is required to support high speed,
volume transfer of information. This study will provide a
business and technology plan for the development of this
network. The technology plan will define the logical and
physical architecture, and a migration plan. The business
plan will set out the implementation particulars.
The City has an existing underground communications plant
which could, with continuing investment, provide the core of
a City system to meet its needs, and perhaps provide services
to others. Alternatively, the city could seek a working
relationship with a commercial provider to obtain access to
services in exchange for access to the City's rights of way
and communications ducts.
The consultant will report on policy considerations around
the City's broadband communication needs and direction,
including the most appropriate strategy to secure private
partnerships to accomplish operating goals. This report will
be before Council by the end of July.
- Telecommunications Organizational Review
The responsibility for computer and communications services
is spread throughout the City and in some cases is provided
by vendors. This type of organization is not able to deal
effectively with the converging computer and communications
technologies. This study looked at a number of
organizational models for delivery of computer technology and
telecommunica-tions services and support to the City's
reengineering and process improvement processes. Models
considered ranged from contracting services to reorganization
and staffing changes.
The consultant has completed this study and submitted its
report on the findings and recommendations around a
reorganiza-tion of the information and telecommunication
services in the City. This report is on file with the City
Clerk's Office. The balance of this present report discusses
the recommended organization model, immediate staffing
concerns and implementa-tion.
DISCUSSION
The consultant (Teleconsult) commenced its Telecommunications
Organizational Review study late in 1995 with the help and
guidance of a project Steering Committee and a Working
Committee both comprised of senior City staff. The first
phases of the study involved an examination of the City's
existing information policies and direction documents (the
Information System Plan, the Telecommunications Strategic
Plan, the Technology Infrastructure Plan, etc.). The study
then launched into a series of interviews with senior and
middle level managers, and technical and operational staff
across all city departments and outside boards. Problems
were identified and perceived solutions were sought,
strengths and weaknesses of the existing organization became
apparent. The result was a game plan around strategic
operational choices and organiza-tion recommendations which
was presented to the Corporate Management Team for
consideration and comment.
The consultant's key recommendations resulting from the study
are identified below, including the comments (in italics) of
the CMT. We note for Council that the consultant's final
report reflects the comments received from the CMT.
1. The effective application of information technology is
critical to achieving city-wide and departmental
strategic objectives.
Agreed.
2. Common and coordinated planning of information
technology initiatives is both necessary and desirable.
Agreed.
3. Development of policies, integrated plans, standards and
controls for information technology will be most
success-ful if done through a combined effort of line
departments and information technology staff.
Agreed but may require some centralized
control/guidance for corporate policy.
4. Total outsourcing of the information technology function
is not the best direction for the City at this time.
Agreed but may be desirable to outsource
leadership of new technology projects where
there is a high technology transfer from
consultants to City staff.
5. Moving to a completely centralized information
technology organization within the City is not a
feasible direction at this time, given the culture and
operating style of the City's organization.
Agreed.
6. It is important for the networked aspects of the
organization to function well - for cross-functional
working groups and committees to be responsible for
delivering high quality results.
Agreed but the right people must be appointed,
their responsibilities made clear, and
perfor-mance evaluated on results.
7. The telecommunications functions currently in the
Engineering department be merged with the network
functions in Information Services in a more broadly
defined Information Technology department.
Agreed with a transition plan from the General
Manager of Engineering Services.
8. The Information Technology department be headed by a
General Manager with the responsibilities of a Chief
Information Officer.
Agreed to the CIO responsibilities, but
instead of creating another major service
department and its required administration,
CMT proposes that the position be established
at the Director level within the Corporate
Services Group reporting administratively to
the General Manager of Corporate Services.
9. The General Manager of the Information Technology
department be a member of the Corporate Management Team.
Agreed that the Director of Information
Technology will be included in CMT discussions
of strategic and tactical planning issues with
a bearing on information technology.
10. The Corporate Management Team assume a role in the
governance of the information technology function.
Agreed to the following:
- deciding the role of information technology
in the corporate strategy;
- choosing how to best organize information
technology resources;
- setting key priorities for information
technology relating to corporate and
depart-mental objectives;
- allocating resources across the information
technology function;
- ensuring information technology management
processes are active; and,
- holding departments and projects accountable
for delivering benefits.
11. Two permanent working groups to manage the integrated
operating plans for Business Systems and Technical
Architecture be established - to develop and maintain
plans, standards, and deal constructively with
exceptions.
Agreed in principle but recognizing the
challenge of incorporating these activities
into the business fabric of the organization.
12. The make up of the two permanent working groups be
limited to six members, invited because of their ability
to con-tribute based on a knowledge of information
technology and to deliver results as members of cross-functional teams.
Agreed.
NEW ORGANIZATION STRUCTURE
The consultant has recommended that the City implement an
Information Technology organization reflecting the division
of functional responsibilities and duties as noted in Chart 1
of the report Appendix. The organization would be in the
form of a department reporting to the General Manager of
Corporate Services on administrative matters and to the
Corporate Manage-ment Team and City Council on strategic and
tactical issues. The department would be organized around
five divisions having the functional responsibilities noted
in Chart 2 of the report Appendix.
The staffing of the new Information Technology department
would comprise all of the current Information Services
operation in Corporate Services and the Telecommunications
staff group in Engineering. Staff would be moved into the
new department at their existing positions and salary levels
at start up, subject to a full position review and
classification assessment at a later date to reflect the
City's changing work and job require-ments (approximately six
months down the road). Additionally, a thorough and
comprehensive training program will be provided to assist
staff with the transition into new job duties and
responsibilities resulting from the reorganization.
Additional staffing requirements would be reported to Council
as appro-priate but not before the new department has
completely absorbed the staff transition process and staffing
needs have been assessed alongside of corporate information
and technology requirements still in the strategic
development process. At this point, however, there are no
identifiable additional costs or incremental savings
connected with the reorganization, except for the costs noted
below.
MANAGEMENT POSITIONS
The present position of Manager of Information Services,
which is currently vacant, reflects a salary level at a
division head level with corresponding duties and
responsibilities. We recom-mend that this position be
abolished and a new position and classification be
established at a department head level, provisionally titled
"Director of Information Technology".
The consultant has identified four vital priorities for the
Director of Information Technology, as follows:
- orchestrate the networked I/T organization without
owning;
- lead in finding, selecting and implementing
informa-tion technology to support the better city
govern-ment and public service initiatives;
- structure and manage strategic alliances to the
benefit of the city; and,
- manage the I/T function to:
- share corporate I/T resources effectively.
- provide professional I/T career management
city-wide.
- deliver overall organizational learning
relat-ing to the efficient and effective
application of information services and
technology.
The duties and responsibilities assigned to this new position
would accordingly reflect a Chief Information Officer
perspec-tive and attract a corresponding salary level. A
preliminary market survey of equivalent positions in both the
public and private sectors indicates that a salary increase
of approxi-mately $20,000 per annum over that budgeted for
the Manager of Information Services will be required. This
increased cost will be absorbed by the Corporate Services'
operating budget.
Once the salary level and classification for the Director of
Information Technology have been established, staff recommend
immediate recruitment be conducted nation-wide through an
outside personnel agency with internal assistance, again with
funds provided from the Corporate Services' operating budget.
The five functional division head positions of the new
department will also require appropriate classifications and,
most likely, salary adjustments as well. We recommend that
the classification process be conducted in parallel with the
recruitment process for the new Director. New positions will
be created and the costs of those positions will be funded
from existing sources and the abolishment of the present
branch head positions. Staff will report back to Council
requesting approval of the new positions after the
appropriate classifica-tions are established. There may also
be some additional costs connected with recruiting these
positions if suitable internal applicants are not available.
Ideally, it would be preferable to have the new Director on
board before any division heads are appointed, but this may
not be possible given the long time it usually takes to fill
senior manager vacancies. In any event, the Corporate
Management Team believes that recruitment for the Director of
Information Technology is an immediate priority in the
reorganization process.
INFORMATION TECHNOLOGY GOVERNANCE FRAMEWORK
As mentioned earlier, the consultant has recommended that the
Corporate Management Team assume an active role in the
governance of the information technology function. Besides
the CMT, the consultant has recommended the establishment of
two permanent working groups to manage the integrated
operating plans for the City's business systems and technical
architec-ture. Charts 3 to 7 of the report Appendix show the
reporting relationships that are proposed to support a
federated approach to a networked information technology
environment, along with the major activities that each group
would be assigned.
In order to address the four vital priorities mentioned
above, the Director of Information Technology would
participate as a member of both the Business Systems and
Technical Architecture working groups and be a direct liaison
to the Corporate Manage-ment Team on strategic and tactical
planning issues dealing with the application of information
technology in City opera-tions and communications services.
This co-operative governance structure is linked to several
corporate objectives, as follows:
- elevate I/T planning to a city-wide perspective and
beyond;
- make I/T decisions with solid, commercially based
business cases;
- get city-wide data architecture work done;
- front-end major development projects with business
process re-engineering activities;
- establish and maintain linkages with other
jurisdic-tions, for example:
- GIS community,
- Communications providers and users,
- Electronic Data Interchange and other net-
working partners; and,
- invest in building the knowledge and experience
base in-house around the application of information
tech-nology to improve operations generally.
CONCLUSION
Teleconsult has reported out on the Telecommunications
Organizational Review project with recommendations on a new
organization structure for the City's information and
techno-logy services. The Corporate Management Team has
reviewed the consultant's report and supports most of the
recommendations without modification, but has suggested
several changes to the reporting structure and a title change
for the head of the new department as noted above.
The recommendations of this report set out a strategy for the
transition out of the existing organization structure and a
move into the new structure in the least disruptive manner.
The Corporate Management Team fully supports approval of
those recommendations.
Copies of this report have been forwarded to CUPE Local 15
and IBEW Local 258 for information.
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