78
Review
of the
Operational Activities and Structure
of the
Australian Government Information
Management Office
(AGIMO)
Helen Williams AO
January 2012
1 INTRODUCTION 5
1.1 TERMS OF REFERENCE 5
1.2 THE AUSTRALIAN GOVERNMENT INFORMATION MANAGEMENT OFFICE 6
1.3 STRUCTURE OF REPORT 6
1.4 METHODOLOGY 7
2 KEY ROLES AND RESPONSIBILITIES 7
2.1 HISTORICAL PERSPECTIVE 7
2.2 THE INTERNATIONAL CONTEXT 8
2.3 RESPONSIBILITY FOR WHOLE-OF-GOVERNMENT ICT 10
2.4 THE STRATEGIC VISION 11
2.5 GOVERNANCE AND THE ROLE OF SIGB 11
2.6 THE ROLE OF AGIMO 13
2.7 MAINTAINING A PROFILE 16
3 STRATEGIC POLICY CAPABILITY 17
3.1 A NEED TO REFOCUS 17
3.2 LEADERSHIP IN STRATEGIC AND INNOVATIVE POLICY AND ANALYSIS OF EMERGING TRENDS 19
3.3 OPPORTUNITIES FOR WHOLE-OF-GOVERNMENT APPROACHES 19
3.4 A COORDINATED VIEW OF AVAILABLE CAPABILITIES AND FACILITIES 21
3.5 PROVIDING FRAMEWORKS FOR COLLABORATION AND BUSINESS ANALYSIS 22
3.6 AN EVIDENCE BASE OF HIGH QUALITY DATA 23
3.7 PRIORITIES FOR A REFOCUSED POLICY BRANCH 24
4 INVESTMENT IN ICT-ENABLED PROJECTS 25
4.1 BRANCH RESPONSIBILITIES 25
4.2 ASSURANCE ON MAJOR GOVERNMENT INVESTMENTS 26
4.3 THE ASSESSMENT OF INVESTMENT IN ICT-ENABLED PROJECTS 28
4.4 BENCHMARKING 31
4.5 PROGRAM MANAGEMENT UNIT 32
5 ICT SKILLS AND CYBER SECURITY 33
5.1 BRANCH RESPONSIBILITIES 33
5.2 ICT SKILLS PROGRAMS 34
5.3 CYBER SECURITY 37
5.4 REVIEWING THE CYBER SECURITY WORK PLAN 40
6 ONLINE SERVICES 41
6.1 BRANCH RESPONSIBILITIES 41
6.2 GOVERNMENT SERVICES ENVIRONMENT (GSE) 42
6.3 GOVERNMENT 2.0 STRATEGY 45
6.4 WEB ACCESSIBILITY 45
6.5 ONLINE PRESENTATION 46
7 COORDINATED PROCUREMENT 47
7.1 COORDINATED ICT PROCUREMENT 48
7.2 STRATEGIC SOURCING BRANCH 48
7.3 CENTRAL FACILITIES BRANCH 51
7.4 ISSUES ACROSS COORDINATED PROCUREMENT Skills 53
8 NETWORK SERVICES 57
8.1 BRANCH RESPONSIBILITIES 57
8.2 THE INTER-GOVERNMENT COMMUNICATIONS NETWORK (ICON) 58
8.3 MINISTERIAL COMMUNICATIONS NETWORK AND TELEPRESENCE 60
8.4 BRANCH RESTRUCTURE 61
9 ORGANISATION AND WORKING ARRANGEMENTS 62
9.1 FUNCTIONS AND STRUCTURE 62
9.2 CROSS-BRANCH COORDINATION 63
9.3 CORPORATE FUNCTIONS 65
9.4 SKILLS 66
9.5 COMMUNICATION WITH STAKEHOLDERS 67
1 INTRODUCTION
Over the three years since the Review of the Australian Government’s Use of Information and Communication Technology (the Gershon Review), the Australian Government Information Management Office (AGIMO) has been heavily involved in discharging the significant mandate for ICT Reform given to it by the Government. It has achieved creditable results in the areas of ICT savings and in implementing some major recommendations of the Gershon Review including, in particular, the introduction of coordinated procurement arrangements, finalising the Data Centre Strategy and developing the Entry Level skills initiatives. At the same time it has worked to develop the ICT policy agenda, for example in the area of cloud computing, and has exploited technology to provide new and improved ways of working for government.
In view of the likely directions of its future work, however, it was considered timely to review whether the skills and operational arrangements that AGIMO has developed in delivering this mandate are the most appropriate for the role that it will play in the future.
1.1 TERMS OF REFERENCE
The Review of the Operational Activities and Structure of AGIMO was initiated by the Department of Finance and Deregulation (Finance) to examine AGIMO’s current operational activities, structure, capabilities, work priorities and skills to determine whether there are opportunities for improvement.
The Terms of Reference for the Review (copy at Attachment B) ask that, in reporting to the Finance Secretary, the Review consider:
- the organisational structure of AGIMO to support its current and future work as reflected in the Information and Communications Technology (ICT) Strategic Vision;
- the current processes and procedures to support the functioning ofAGIMO in meeting its policy and operational obligations;
- the capabilities of AGIMO’s personnel, skills and resourcing to meet its work program;
- identification of areas with scope for improvement in areas where AGIMO provides whole-of-government ICT services and assessment of their suitability for AGIMO’s future functions; and
- other matters considered relevant to the Review.
The Terms of Reference draw attention to the context in which the Review is being undertaken, including the likely directions of the Strategic Vision for the Australian Government’s use of Information and Communication Technology (the Vision) which is in draft form, the progress of the Secretaries’ Committee on
Service Delivery, and the Independent Review of the Implementation of the ICT Reform Program by Dr Ian Reinecke (the Reinecke Report).
The Review is specifically directed towards the internal operation of AGIMO and its operational and policy work, currently and for the future, as informed by the draft Vision and work program.
In addition, and since the Terms of Reference were written, the Government has further increased its focus on the need to maintain fiscal discipline in the face of deteriorating global conditions and a weaker near-term outlook for the Australian economy. The Review has therefore taken into account the tightened resource pressures across Finance and the need to prioritise, rather than supplement, resources.
1.2 THE AUSTRALIAN GOVERNMENT INFORMATION MANAGEMENT OFFICE
AGIMO is a Business Group within Finance and is included under Outcome 2 of the Department:
“Improved Government administration and operations through systems and policy advice on…….. the application of information and communications technology.”
AGIMO is headed by a Deputy Secretary of the Department who is also the Australian Government Chief Information Officer. It is composed of two divisions, the Policy and Planning Division and the Agency Services Division, that are broadly split along policy/operation lines.
The Policy and Planning Division aims to improve the efficiency and effectiveness of the ICT activities. It achieves its aim through analysis of significant proposals, practical guidance to agencies, programs to support ICT skills, support for governance bodies, and responding to emerging technologies and issues. It has three branches:
- the Governance and Policy Branch;
- the Investment Management Branch; and
- the Cyber Security and Skills Branch.
The Agency Services Division coordinates, acquires and supports common, whole-of-government ICT products and services. It has four branches:
- the Online Services Branch;
- the Central Facilities Branch;
- the Strategic Sourcing Branch; and
- the Government Network Services Branch.
AGIMO currently has 229 staff on the ground of whom approximately 45% are either cost recovered or subject to user charging, or Budget funded for a specified purpose and time frame. The Agency Services Division contains two thirds of the staff employed but also includes the majority of the cost recovered or specifically funded programs.
1.3 STRUCTURE OF REPORT
The Report focuses first on the role and responsibilities of AGIMO and its place in cross-government responsibilities for ICT more broadly, to provide a background for discussion on how that role is best fulfilled. It also considers the operational relationship between AGIMO and the Secretaries ICT Governance Board (SIGB) as its governance body.
The Report then considers each of the AGIMO branches in turn, noting the relationship of their work to the draft Vision, commenting on the work program and how it is carried out, noting particular skills requirements for the work of each branch, and suggesting areas for possible improvement. Finally, the Report draws together some cross-AGIMO issues concerning its structure and operation.
1.4 METHODOLOGY
As the Review’s Terms of Reference focus specifically on the internal administration of AGIMO, with the exception of discussions with some of the members of SIGB, work on the Review has concentrated on material provided by, and discussions with, members of AGIMO. The help and support of AGIMO staff in providing this assistance, as well as in commenting on drafts including their factual accuracy, is gratefully acknowledged.
2 KEY ROLES AND RESPONSIBILITIES
Successive Governments have recognized the increasing importance of ICT in delivering government policies, information, programs and services, in achieving efficiencies and in driving productivity in the digital economy. In response, they have set up structures to develop and coordinate government action in this area. The issue that has been less clear, as is shown by the changing government responses over time, is the most effective focus and function of such a structure, and the best way to achieve the desired outcome.
2.1 HISTORICAL PERSPECTIVE
National Office of the Information Economy
In September 1997, the then Prime Minister announced the establishment of the National Office of the Information Economy (NOIE) as an office within the Communications, Information Technology and the Arts (CITA) Portfolio. Its focus was on policy advice, particularly in the areas of establishing the environment for online activities, facilitating electronic commerce and applying new technology to government administration.
NOIE’s role and functions were expanded in October 2000 when it was established as a separate executive agency within the CITA Portfolio to give it status as an independent cross-portfolio advocate on information economy issues. It also absorbed the Office of Government Online in recognition of the potential for online services to drive consumer take-up.
Australian Government Information Management Office
In April 2004, NOIE was renamed the Australian Government Information Management Office. AGIMO remained an executive agency within the CITA Portfolio and took over NOIE’s functions relating to the provision, leadership and coordination of the Government’s policies on the use of ICT to deliver policies, information and programs. The Head of AGIMO was given the title of Australian Government Chief Information Officer. NOIE’s former functions relating to policy, research and programs on the broader information economy were transferred to the CITA Department.
In October 2004, AGIMO was incorporated into the then Department of Finance and Administration, ceasing to be a separate executive agency and becoming a business group within the Department. The title of Australian Government Chief Information Officer was retained by the Department’s Deputy Secretary.
Implementing recommendations of the Gershon Review
The focus of AGIMO’s work altered significantly for the years immediately following the Gershon Review in 2008, when it was given the task of coordinating the implementation of the Review’s recommendations.
These recommendations were broad in scope, covering strengthened governance of ICT expenditure, tighter management of ICT business-as-usual funding, enhanced focus on ICT skills and improvements to market efficiency. However the task of achieving the significant savings to the Budget recommended by the Review meant that the efficiency agenda clearly overshadowed other aspects of AGIMO’s work, as well as reducing the time available for it to focus on other aspects, with a consequent impact on the way it was viewed by agencies.
As was noted in the Reinecke Report (p. iv), AGIMO has “efficiently undertaken the task the Government set for it” but, in doing so, it has “delivered budget savings that have, at times, made it the focus of considerable resentment.” The majority of the Review’s recommendations are now in place and this resentment is becoming less apparent over time. It is something that must be borne in mind, however, when considering the strategic role, operation and working arrangements of AGIMO into the future.
2.2 THE INTERNATIONAL CONTEXT
In parallel with this Review, Dr Ian Reinecke surveyed ICT work and structures in overseas jurisdictions that are similar to Australia, including the United States, the United Kingdom, New Zealand and Canada.
United States
The focus of the US Government has been on improving the efficiency of ICT as a path to improved productivity. The White House appointed Chief Information Officer has given priority to extracting greater efficiency from public sector investment by establishing a transparent approach to spending on technology and the performance of major projects through the publicly available online Federal IT Dashboard.
Agencies are required to seek savings by examining how a better return on ICT investments could be achieved. As a result, a number of projects have been reconsidered or terminated, and the delivery times of others have been reduced. An Implementation Plan directed towards increasing the operational efficiency of ICT program management has focused, particularly, on the priorities of data centre rationalization, the delivery of services using cloud technology to achieve savings (obliging agencies to explore cloud computing options in all new projects) and generally streamlining the operation of government.
United Kingdom
Similarly, the UK Government has stressed the need to increase the efficiency of its ICT investment, including enhancing system interoperability, and reuse and adaptation across agencies. It has also focused on the opportunity that delivery of better services for less cost presents to release savings for strategic re- investment.
The UK ICT Strategy includes measures, inter alia, to:
- increase central control to ensure greater integration across agencies;
- give central agencies mandatory powers to remove excess capacity, especially in data centres;
- provide greater equity in the acquisition and use of open source software;
- streamline procurement processes; and
- introduce a general presumption against ICT projects with a lifetime capacity of more that $100 million.
The UK Government has established a Major Projects Authority that can initiate intervention in projects at risk and can require publication of project information in the interests of transparency. In addition, lead departments have delivery responsibility for strategic ICT projects assigned to them that are aligned to their core responsibilities.
Canada
Canada sees individual agency-centric approaches to ICT infrastructure and systems as a barrier to greater efficiency and is seeking to develop a portfolio approach to ICT investment.
It has introduced arrangements for greater central guidance to departments, a project management framework including independent project reviews, and increased oversight of major ICT projects. It is introducing a government-wide assessment of risk and is taking action to reduce more than 200 data centres across government to 15.
New Zealand
The NZ approach is to adopt a more directive approach to reforming government ICT, and chief executives have been assigned specific accountability for implementing government ICT in their agencies, a role reinforced by an obligation on Ministers to ensure that this occurs.
Lead agencies are to be appointed for each major cross-agency project with their chief executives being held directly accountable for delivery, and funding models are to be developed to provide incentives for collaboration across government.