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IT Governance in Queensland Health Payroll - Research Proposal Example

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The paper "IT Governance in Queensland Health Payroll" is a great example of information technology research proposal. Queensland government approved the use of the Shared service initiative which is a single payroll and accounting system in 2002. This was aimed at ensuring that the delivery of services to the citizens is improved…
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Extract of sample "IT Governance in Queensland Health Payroll"

IT governance Name Date Course Introduction Background of Queensland Health Payroll Queensland government approved the use of the Shared service initiative which is a single payroll and accounting system in 2002. This was aimed at ensuring that the delivery of services to the citizens is improved. The anticipated cost as the time was $ 6 million only and it was supposed to finance the entire process. However, the process stalled and IBM was awarded the contract in 2007. However, by this time the cost had already increased and the contract was awarded to IBM at a cost of $ 95 million. IBM started with the Queensland Health payroll system in 2008. However, the project missed several deadlines and this led to the increase in the costs to $180 million (KPMG, 2012). The payroll system in Queensland Health went live in 2010 but it had a lot of mistakes that affected thousands of patrols of the employees in Queensland Health. This forced the state to cut deals with IBM promising that it would not sue the company if it rectifies the most urgent problems. By 2012, the payroll of about 80,000 Queens Health employees still had their payrolls being calculated manually by about 1000 clerks. A commission of inquiry was then established and it indicated that the project would cost about $ 1.2 billion. This is an indication that the project had taken too long and had failed to achieve its main goals and objectives. On the other hand, the project was too costly for the government. Purpose of the research The research intends to highlights the mistakes that were made in terms of the IT governance in Queens Health. This is considering that the failure of the project has to do with the IT governance. The concepts of IT governance that were used in the project will also be highlighted in the paper. This is considering that the failures of the project had negative impacts of the payroll system of Queens Health (Queensland Audit Office, 2010). The research also intends to highlight the importance and benefits of IT governance. This is considering that IT governance has an important role to play in term of ensuring that an organization is able to effectively use the concepts of information technology. A critical review of governance and change management process with regards to case study of Queensland Health will be carried out. The a review will also be made with regards to the available governance and control schemes with regards to the Queens Health payroll system. The proposed IT governance processes as well as the proposed implementation process will also be discussed in details. This is considering that the research intends to highlight benefits of an effective IT governance system. The relationship between the IT governance and other strategies will also be discussed in the paper for the purposes of emphasizing how the strategy could aid other business strategies. Discussion Critical review of governance and change management processes The IT governance and change management process before 2013 was not well managed at Queensland Health. The payroll of Queensland Health had complex award structures that were not well managed in terms of the use of information technology. The system was required to perform a number of complex tasks which included the requirement for 13 awards and over 200 allowances (Chesterman, 2013). The IT governance structure for the system was implemented by Corp Tech and IBM. However, the governance structure was not effective since it was not clear who was the prime contractor for Queensland Health. The lack of clarity during the management of IT governance has the potential of affecting the whole system and causing confusions. The roles and responsibilities of various parties were not clear with regards to the IT governance. The lack of clarity in terms of the roles and responsibilities is an indication of poor IT governance. This is considering that it also has the potential of affecting the relationship between the different stakeholders. At Queensland Health, there was lack of adequate documentations and agreements with regards to the business requirements. This impacted negatively on the system development cost and timeframe. The initial cost was at $ 6million but the final report indicated that the costs would end up at $ 1.2 billion. This can be attributed to the poor IT governance which affected the operations of the system. It is also important to note that the costs can increase in case of poor IT governance. In IT governance, system governance and testing is an important concept that has to be effective in order for the system to achieve its goals and objectives. However, at Queensland Health, the system and process testing was not effective. As a result of this, the system was unable to identify the implementation risks. By the time the IBM system was going live, there was still lack of understanding with regards to the potential impacts and effective operations of the payroll system. It is also important to note that the system failed to deliver its objectives since it had not been clearly understood and there was no mechanism of dealing with the perceived risks. The system usability testing was not carried out on the payroll system. This impacted negatively on the ability of creating an understanding of the processes and infrastructure that was in place. On the other hand, it is also important to note that the system usability testing is important for the purposes of ensuring that effective operations with regards to the system can be achieved. Several systems were also implemented at once which had negative effects on the IT governance (KPMG, 2012). This is considering that it created a challenge for the personnel to understand all the concepts that were introduced at once. The change management process was not effective as there was lack of business readiness. The levels of consultations between the different stakeholders were also low which impacted negatively on the IT governance. The problems that were associated with the project were due to poor governance which led to increased cost and duration. Review of available governance control schemas The available IT governance control is aimed at ensuring that there is a direct link between the IT resources and the strategies within the organization. This means that the development of the IT governance concepts has to be carried out in compliance with the requirements of the organization. Different stakeholders have to be involved in the process of developing IT governance. In Australia, AS8015-2005 Australian Standard for corporate governance of information and communication technology is in place. This framework plays an important role in terms of ensuring that the organizations are able to improve on their IT governance. This framework was adopted in 2008 as ISO/IEC 38500 and it has played an important role in terms of improving on the processes that are involved in IT governance (Ali & Green, 2012). This concepts was not widely used in Queensland health and hence challenges that were faced. The effective use of this framework after it was implemented could have improved on the ability of the company to embrace the new concepts. When using the IT governance controls, it is important to ensure that change management. Change management concepts have to be put in place in order to ensure that a smooth transition takes place after the implementation of the governance framework. On the other hand, it is also important to note that the concepts of change management may determine the success of the process. The failure of embracing change will lead to the continuity of the previous practices and hence affecting the implementation of the new IT governance framework. Active governance database schema is one of the important concepts of IT governance that is being used by some of the organizations. It is a web-based application that is used for the purposes of documenting and enforcing the business controls. This framework is effective as it has the ability of storing the control documentation, control enforcements and other data that is required by the platform. Regardless of the version of Active governance, it is run in an oracle database. This plays an important role in terms of improving on the efficiency. The reporting capability is also improved through the use of Active governance. This plays an essential role in terms of ensuring that information can be acted upon immediately and hence improving on the efficiency. Active governance also has a business objective schema which is used for the purposes of storing and reporting data. This plays an essential role in terms of improving on the efficiency of the business operations. An embedded agent database schema is also used for the purposes of enhancing the IT governance (McCall & Dunn, 2012). Backing up the Active governance may be required for the purposes of ensuring that it is effective. This is considering that the IT governance may be faced with various challenges. Some of the concepts were not used in the case of Queensland Health. This led to inefficiencies and hence negatively influencing the implementation processes. A successful implementation of the IT governance also requires some levels of expertise in order to deal with the potential problems. ISO/IEC 38500:2008 corporate governance of information technology is an important framework that is used in Australia and other parts of the world for IT governance. This framework plays an essential role in ensuring that all the parties understand their responsibilities. The ability of the stakeholders to understand their responsibilities in the IT governance process has positive impacts on its success. This is considering that the misunderstanding contributes to the failures as was the case in Queensland Health. This standard also has guidelines that can be used by the directors of the organizations for the purposes of ensuring that the process is successful (Ho, et al, 2011). The use of the framework is applicable to any of the organization regardless of the size. Both the large as well as the small companies can utilize this framework for achieving their goals and objectives. The acceptable use of IT within the organization has been outlined in the framework. The presence of acceptable standards is important in ensuring that the governance process is successful. All the stakeholders will be in a position to understand what is acceptable and what is not acceptable and hence impacting positively on the implementation process. The concepts of information technology governance are useful in an organization as it enhances the Information Technology operations. It is for this reasons that the highest standards have been set in the framework. This standard is therefore used widely for the control of IT governance. Control Objectives for Information and Related Technology (COBIT) is also one of the important frameworks that is used for the purposes of controlling the process. This framework is regarded as the leading IT governance and control framework in the world. It can be attributed to its efficiency when carrying out the control and governance process. This framework provides a model of about 37 IT processes that is found in each of the organization (De Haes, et al, 2013). This is an indication that the framework is useful in terms of governance of the IT processes in any organization. The profit and non-profit organizations can utilize this framework for the purposes of ensuring that it is able to meet its goals and objectives of IT governance. On the other hand, it is also important to note that the framework is useful for both the large as well as the small organizations. This framework defines the input as well as the expected output which makes it easy for the organization to achieve the objectives of the IT governance. The performance measurement can also be achieved through the use of this framework and hence making it effective. The capability maturity model is also one of the frameworks that is used for the purposes of governance and control of IT. However, this model is not commonly used as compared to the other frameworks. A balanced scorecard has also been used in some instances by some of the organizations. However, it is important to note that the balanced scorecard is a non-IT specific framework. Proposed IT governance process The failures at Queensland Health indicate that there are some areas that need to be transformed in order for the process to be successful. The right governance structures have to be out in place so as to improve on the process. This is considering that the governance structure that was in place created confusions and making it difficult for the implementation process to be successful. The leadership should also be transformed so as to ensure that the IT governance is under the leaders who are able to deliver the required results. It is the responsibility of the leaders to ensure that other stakeholders are provided with the required information so as to make the process successful. On the other hand, it is also important to note that the leadership is important in terms of uniting the different stakeholders (Simcoe, 2012). The ownership of the IT governance process is an important aspect that determines its success. The stakeholders will be informed of the importance of ownership as they are responsible for the entire process. The engagement of the stakeholders will have to be carried out so as to promote a good working relationship among them. This is considering that the relationship between the stakeholders was not good and hence contributing to the challenges that were faced during the implementation. The relationship between the stakeholders and the agencies involved has to be enhanced for the purposes of ensuring that the processes are carried out successfully. Documentation, planning and the introduction of quality management system will also be carried out for the purposes of ensuring that the process is successful. This is considering that the quality management process is important in ensuring that the processes are of the highest standards. The quality management process is also important in terms of ensuring that the activities being carried out can be accounted for. This is useful in terms of ensuring that the processes adhere to the cost requirements. The concept of organizational change is also important when introducing a new IT governance concept (Drnevich & Croson, 2013). This is for the purposes of ensuring that the stakeholders including the employees fully embrace the process. Change management will be introduced in the organization for the purposes of ensuring that the clerks responsible for the preparation of the payroll are fully aware of the processes. The training of the personnel has to be carried out for the purposes of ensuring that the process is successful. It is important to note that the training of the personnel will avoid the confusions that were witnessed in the past with regards to the implementation process. The user training is also important in terms of ensuring that the personnel are able to use the system. An effective operating structure as well as the system support is important during the process. It is also important to note that the concepts of system support is useful in ensuring that the system is able to function effectively and achieve the required goals and objectives. The upgrading of the financial system also needs to be carried out so as to ensure that the IT governance is effective. This is considering that the payroll portfolio is dependent on the financial system. The presence of an effective financial system will make the IT governance easy and effective with regards to the payroll. A risk profile for the project has to be developed for the purposes of ensuring that the possible risks are dealt with. It is also important to note that the IT governance that was developed by IBM, failed since there was no risk identification. This made it difficult for the organization to respond to the risks that were encountered and hence leading to the failure. The IT governance process should be guided by the policies that are aimed at ensuring that the aims and objectives are achieved (Kooper, et al, 2011). It is also important to note that the policies that were previously used during the project did not have impacts on the success of the process. The periodic review will also be carried out during the implementation of the project. This is considering that the periodic review will be responsible for identifying the benefits or successful that are being achieved. On the other hand, it is also important to note that the periodic review is also important in ensuring that the required aims and objectives are being met. Any weaknesses can only be identified during the period review which is important in ensuring that the corrective measures are put in place. Proposed implementation process The implementation process is quite crucial in terms of ensuring that the project is successful. It is therefore important to ensure that all the required activities are carried out within a short period of time in order to avoid an increase in costs as well as time which was the case for Queensland Health. The planning and documentation of the activities should be the first step of the project. This will have to be carried out for a period of up to eight weeks. This is considering that the process is quite intensive and it determines the success of the entire process (Simcoe, 2012). Outsourcing of experts will have to be carried out in order to ensure that the process is effective. The training of the members of the management can then be carried out for the purposes of ensuring that they are fully aware of the process. This will be important for the purposes of ensuring that the governance structure of the organization is enhanced to support the process. The management can then put in place measures to develop a new governance structure that can support IT governance. This process should be carried out within a period of three months. The financial system should then be upgraded in preparation for the implementation of the IT governance. The upgrading of the system will require a lot of consultations as it also involves the government officials. This process has to be carried out within a period of 2 months for it to be conclusive and effective. A profile of risk management should then be developed for the purposes of identifying and dealing with any of the risks that may be encountered during the implementation of the project. It is important to note that risks are always common in any project and it may increase the costs as well as the time taken for the project to be completed. The identifications of the risk with regards to the project will take a period of two weeks. The actual implementation of the project can then be carried out after all the measures to prevent negative effects have been put in place. On the other hand, it is also important to note that the project will have to work with a strict budget for the purposes of avoiding an escalation of the project as was witnessed before. A periodic review of the project will have to be carried out after every month for a period of six month which will be allocated for the actual implementation of the project activities. All the problems encountered during the project will have to be dealt with immediately for the purposes of ensuring that it does not affect the timeline for the completion of the project. The experts will be involved in every step in the supervision of the project. The continuous review of the project plays an important role in ensuring that the project is successful and its benefits as well as shortcomings are identified (Kooper, et al, 2011). This is also important in ensuring that the project is carried out according to plan. The training of the employees on the issues of change management as well as the use of the system should then be carried out. This will equip the clerks with the required knowledge as well as avoid employee resistance. Recommendations It is recommended that the use of different frameworks should be considered for the purposes of ensuring that the aims and objectives of IT governance is met. The ITIL governance standards should be considered as it is an internationally recognized IT governance standard. However it may have weaknesses in terms of its demanding nature. AS8015 which is an Australian IT governance standard that was adopted as ISO/IEC 38500 Should also be considered. This IT governance standard has its beneficial to a project as it provides the obligations for each of the stakeholders. It also provides the guidelines that should be followed for the purposes of ensuring that the IT governance process is successful. On the other hand, it is also important to note that this IT governance standard is suitable for all the organizations and it will therefore be useful in terms of dealing with the payroll system at Queensland Health. However, this method will require a lot of expertise. This framework will be important in ensuring that the needs of the organization are met. It is also recommended that the COBIT IT governance standards should be used for the purposes of ensuring that the goals and object of control are met. The use of this framework will be useful in countering the weaknesses of the other standards methods. This is considering that the method has 37 processes that are found in all the organizations. However, it is also important to note that this method will require a lot of expertise and resources for it to be used successfully. It is also recommended that the SOX framework be incorporated in some of the aspects of the implementation. The use of multiple IT governance method s will ensure that high standards are maintained at all times during the implementation process. It is however recommended that the Queensland Health should outsource the expertise so as to ensure it is fully equipped to handle the process. On the other hand, it is also recommended that the six steps of ISO 38500 frameworks should be applied in order to ensure that the high standards are maintained throughout. The use of this standard will be beneficial in ensuring that continuous improvements are made and the aims and objectives of the process are attained. It is important to note that the use of the IT governance standards will also ensure that the implementation is carried out on time and the deadline for various activities are met. This will reduce the escalation of the costs as well as ensuring that it does not drag on for years as was previously witnessed. It is recommended that the management should be in charge of the implementation process with the involvement of the IT managers at Queensland Health. It is recommended that the implementation process should start immediately. This is considering that a lot of time has been wasted and too much resource has already been spent. It is also recommended that the resources should be allocated to all the activities depending on their requirements. It is recommended that the authorities should be fully committed to the process in order to ensure that processes. A clear communication mechanism should also be maintained throughout the process in order to ensure that the stakeholders have all the information with regards to the progress. It is recommended that all the stakeholders should also work together for the purposes of ensuring the goals and objectives are met. It is recommended that stakeholder engagement should be carried out for the purposes of ensuring that all the stakeholders are in support of the project and fully understand their roles. This is considering that some of the stakeholders were not consulted previously which impacted negatively on the entire process. It is also recommended that the information about the funding status of the program should be provided to the stakeholders. This will play an essential role in terms of determining the priorities that should be given with regards to the activities that needs to be carried out during the program. It is also recommended that efforts should be directed at building trust with regards to the project so as to inspire the confidence of the stakeholders. Consistence and measurable improvements in the performance should also be demonstrated so as to build the confidence of the stakeholders. The clerks who are responsible for the development of the payroll should also be trained on the concepts of the system. This will play an essential role in terms of ensuring that they are fully prepared to use the new system. Conclusion In conclusion, it is evident that the payroll project being implemented by IBM ended up taking more time and resources than was expected. This can be attributed to various factors including the lack of proper planning and coordination of activities. It is evident that the relationship between the stakeholders in the project was not good. Technical mistakes were also made by IBM due to the lack of adequate information and hence contributing to the failure. It is also evident that the payroll programs were aimed at benefiting Queensland Health but it ended up consuming a lot of resources. The IT governance in the payroll project was poor and iota los led to the failure of the project. It is evident that various IT governance framework standards are in place and can be used for the purposes of improving on the processes. Queensland Health payroll project can utilize some of the IT governance standards which includes ISO 38500, ISO/IEC 35800, COBIT, SOX and ITIL. It is evident that the use of the IT governance standards plays an important role in ensuring that the processes are carried out in an effective manner. The IT standards also provide the guidelines that should be followed in order to achieve the aims and objectives of the program. It is also evident that the proper coordination of activities as well as consulting the stakeholders can be applied in order to ensure that the aims and objectives are met. All the stakeholders need to be provided with adequate information and training on the change management so as to enhance the engagement of the employees. It is evident that proper planning and documentation is required for the purposes of ensuring that the process is successful. The identification of the risks as well as outsourcing the services of the experts can be useful in terms of ensuring that the project does not take more time or incur more costs. It is evident that some changes have to be made in order to ensure that the process is successful. The governance structure has to undergo some changes so as to support the IT governance in terms of the payroll system. The financial system also needs some changes so as to ensure that it is able to support the new payroll system. It is also evident that the process will require a lot of supervision in order to ensure that the required goals and objectives are achieved. List of References Queensland Audit Office, 2010, Report to Parliament No. 7 for 2010 Information systems governance and control, including the Queensland Health Implementation of Continuity Project. The State of Queensland. Queensland Audit Office, Retrieved on 14th April 2015 from, . Chesterman, 2013, Queensland Health Payroll System Commission of Inquiry. Queensland Government gazette. Retrieved on 14th April 2015 from, . KPMG, 2012, Queensland Health Review of the Queensland Health Payroll System, KPMG, Retrieved on 14th April 2015 from, . Ali, S, & Green, P, 2012, Effective information technology (IT) governance mechanisms: An IT outsourcing perspective, Information Systems Frontiers, 14(2), 179-193. De Haes, S, et al, 2013, COBIT 5 and enterprise governance of information technology: Building blocks and research opportunities, Journal of Information Systems, 27(1), 307-324. McCall, M, K, & Dunn, C, E, 2012, Geo-information tools for participatory spatial planning: Fulfilling the criteria for ‘good’governance? Geoforum, 43(1), 81-94. Ho, J, L, et al, 2011, Corporate governance and returns on information technology investment: evidence from an emerging market, Strategic Management Journal, 32(6), 595-623. Simcoe, T, 2012, Standard setting committees: Consensus governance for shared technology platforms, American Economic Review, 102(1), 305-336. Drnevich, P, L, & Croson, D, C, 2013, Information technology and business-level strategy: toward an integrated theoretical perspective, Mis Quarterly, 37(2), 483-509. Kooper, M, N, et al, 2011, On the governance of information: Introducing a new concept of governance to support the management of information, International Journal of Information Management, 31(3), 195-200. Read More
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