Project Management
Department of Public Works and Government Services Canada
Project type : New payroll system
Project name : Phoenix
Date : Jul 2016
Cost : $50M
Synopsis :
A Phoenix is supposed to rise from the flames. Instead of rising, Canadas new federal government payroll system (called Phoenix) seems to be stuck firmly in the flames. According to reports from the Canadian Broadcasting Corporation (CBC), since the deployment of a new payroll system started in Feb 2016, as good percentage of public servants have been incorrectly paid. Some have received too little, some too much and some have received no pay at all. Some employees have reported receiving no pay for a full five months resulting in people having to borrow, dip into retirement savings or simply not pay their bills. The CBC has been championing the cases of the affected workers and has collated sample stories in the following links
The breadth of the problem and the fact it has endured for 5 months has forced the issue up the political agenda to the point where the Prime Minister has been forced to comment on the problems (you know your project is in trouble when the Prime Minister has to address the issue)
As soon as the system was launched it was clear there were problems. As many as 7,000 calls per day were received by the system help desk. Being sized for a maximum of 2,200 calls per day the help desk was quickly overcome. By July of 2016, the number of outstanding problems reported by government employees had reached a staggering 82,000 cases. An analysis of the problems by government staff and IBM (the IT systems provider) found that the costs to address the ousting issues could be as a high as $50M).
Contributing factors as reported in the press:
Failure to provide users with adequate training. Failure to cleanse data prior to migration to the new system. Software quality issues. Failure to have sufficient resources on hand to address launch glitches and problems.
Links:
The Prime Minister has asked you to come in with your team and try to figure out what went wrong. Answer the below questions in depth and number questions as answered.
1. Explain how you would start building your case with executives including the Prime Minister to ensure that you received all of the resources you might need?
2. You are asked to hold a briefing to explain what your action plan is going to be. What senior leadership, managers, or workers would you ask to attend? And why? I am really interested to see who you would pull together to start building the network you need .
3. Suppose you find out capacity planning was the issue as the organization wasn't nearly mature as they think they are. Using the content you read in chapter 21 of the Textbook "Larson, E. W., & Gray, C. F. (2018). Project management: the managerial process (7th ed.). New York Mcgraw-Hill Education." what do you do to get executives to understand this? Just set your approach up. You don't have to dive into the details at this point. I want to know what your major points of intererest and focus are.
Sample Solution
Building a Case and Action Plan for the Phoenix Payroll System Debacle
1. Building Your Case for Resources
To secure the necessary resources for fixing the Phoenix payroll system, I would take a multi-pronged approach when presenting to executives and the Prime Minister:
- Demonstrate the Severity of the Issue: Present data on the number of affected employees, the financial impact on them (including potential lawsuits), and the reputational damage to the government. Highlight media coverage (e.g., CBC reports) for added impact.
Full Answer Section
- Outline the Potential Costs of Inaction: Emphasize the financial burden of not fixing the system promptly, including potential penalties, lost productivity, and increased employee turnover.
- Present a Phased Resource Request: Break down resource needs into phases. Start with critical resources for immediate problem resolution (e.g., additional help desk staff). Gradually present the need for resources for long-term solutions (e.g., data cleansing, system upgrades).
- Highlight Long-Term Benefits: Showcase the positive impact of a functioning payroll system on employee morale, government efficiency, and potentially, improved tax collection rates.
2. Action Plan Briefing: Building a Network
To effectively address the Phoenix system issues, I would hold a briefing with a diverse group of leaders, managers, and workers:
- Executive Leadership: The Prime Minister, Finance Minister, and Public Service Commission representatives are crucial for securing funding, political support, and high-level decision-making.
- Project Management Team: Involve the existing project team leads to understand the current state, challenges faced, and potential solutions.
- IT Department Leaders: Their expertise is vital in assessing software quality issues and system capacity limitations.
- Human Resources (HR) Department Leaders: HR plays a critical role in understanding employee payment issues, communication strategies, and potential morale concerns.
- Union Representatives: Including union representatives ensures employee concerns are heard and fosters collaboration in finding solutions.
- Sample of Affected Employees: Hearing firsthand accounts from impacted employees will provide a human perspective on the urgency of the situation.
This diverse group creates a network with the necessary authority, knowledge, and perspective to develop a comprehensive action plan.
3. Addressing Capacity Planning Issues with Executives
Here's an approach to address capacity planning concerns with executives, drawing from Larson & Gray's "Project Management: The Managerial Process":
- Focus on Project Maturity Model: Explain that project management maturity models (like CMMI) assess an organization's project management capabilities.
- Capacity Planning as a Core Competency: Highlight how a mature organization excels in capacity planning, accurately estimating resource needs for project complexity.
- Data-Driven Evidence: Present data on the number of help desk calls exceeding capacity, demonstrating the underestimation of project complexity and resource needs.
- Focus on Long-Term Investment: Advocate for investing in project management training and maturity assessments to prevent similar issues in the future.
By using data, industry standards, and a focus on long-term benefits, this approach can help executives understand the importance of realistic capacity planning.
Next Steps:
Following these initial steps, the team can delve into a detailed action plan, including system assessments, data remediation strategies, communication plans for stakeholders, and resource allocation. Constant communication and collaboration with the network of leaders, managers, and workers will be crucial for a successful turnaround of the Phoenix payroll system.