Project Ownership: The payroll portfolio steering committee (PPSC) governs the overall strategic process and the requirements of the payroll business. The payroll portfolio office represents the PPSC delivery arm. The release management group (RMG) and the release working group (RWG) are responsible for maintaining the governance structure (KPMG 2012). Mr. Walsh was appointed in 2010 as the executive program director (Queensland Health Payroll System Commission of Inquiry 2013).
Prepared by: A governmental specialized unit called ‘CorpTech’ is the responsible unit for managing the payroll and finance implementation of the projects in the governmental departments. The implementation of the projects in Queensland had three main stakeholders represented in the staff members who form the end user of the system, IBM that represented the main contractor and CorpTech the responsible unit for managing IBM role in Queensland Health (QH) implementation project (Eden & Sedera 2014).
Distribution List: This report introduces an overview of the current situation of QH. It provides information and not allowed to be distributed unless referred to KPMG to take the permission. It is mainly prepared to fulfill QH special request (KPMG 2012).
In summary, the failure of the implementation of the payroll health information system (IS) is the most surprising IS failure in the Southern Hemisphere. A large number of doctors and nurses and other employees were not paid correctly or unpaid. The system failure had many reasons, including the resignation of the minister of health and the loss of jobs for some employees (Eden & Sedera 2014; The Courier-Mail 2012).
The characteristics of project 1 are discussed according to KPMG (2012), as follows:
The justifications for these characteristics according to Walker & Walker (2015), could be done in relevance to the diamond perspective (novelty, complexity and technology). There is no one size system that fits all projects. The IS management should ensure its novelty. It goes beyond innovation to the invention in order to develop a new way of dealing with the platform. To integrate the system entities into a new complex form and finally to choose the appropriate technical level.
The project characteristics are discussed according to KPMG (2012), as follows:
The justifications for these characteristics according to Walker & Walker (2015), could be done in relevance to Turner and Cochrane four-quadrant perspective. The implemented project of QH should be one of four project types, engineering project, known as the ‘earth’ that involves a scientific view of the operations management influence. The project development, known as the ‘water’ project that could be fluid but structured. The application software development, known as the ‘fire’ project that has a solid methodology but lacks well-defined goals. Finally, the research and organizational change projects, known as the ‘air’ project that lacks well-defined methods or goals. The selected type id the project development.
The project characteristics are discussed according to KPMG (2012), as follows:
The justifications for these characteristics according to Walker & Walker (2015), could be done from an organizational learning process perspective.
The project could provide a learning activity that gathers people around some activities to achieve common goals. It creates knowledge based on best practices.
The project characteristics are discussed according to KPMG (2012), as follows:
The justifications for these characteristics according to Walker & Walker (2015), could be justified from two perspectives;
In order to apply the collaborative communication methodology, an effective project structure will be provided through this section. It identifies the participants of each project, including, owners, designers and contractors and the potential conflicts they might face during the project implementation.
For Project 1 the negotiating position and conflicts in relationships of the participants of this project are described below.
The negotiating position of the owner will be QH, the staff, the financial department and the insurance department that represents the end users according to Peña-Mora & Tamaki (2001).
The potential conflicts in relationships that the owner may have are resistant to change and failure to adapt to the new requirements.
The negotiating position of the designers will be IBM as the responsible company for the IS design.
The potential conflicts in relationships that the designers may have are represented in the inappropriate way of dealing with the platform and failure to integrate the system entities into a new complex form.
The negotiating position of the contractors will be ‘CorpTech’, the responsible unit for managing the payroll and finance implementation of the projects in the governmental departments.
The potential conflicts in relationships that the contractors may have are the failure to determine the methods, sequences, techniques and procedures to direct the project activities (Peña-Mora & Tamaki 2001)
For Project 2 the negotiating position and conflicts in relationships of the participants of this project are described below.
The negotiating position of the owner will be the payroll portfolio steering committee (PPSC) that governs the overall strategic process and the requirements of the payroll business.
The potential conflicts in relationships that the owner may have are the failure to define the key payroll elements and inability to ensure benefits realization.
The negotiating position of the designers will be IBM.
The potential conflicts in relationships that the designers may have are the negative impact of the design of systems on the governance frameworks, cost and transition plans (KPMG 2012).
The negotiating position of the contractors will be the payroll portfolio office. It is responsible for the execution and delivery of the blueprint of the payroll (KPMG 2012).
The potential conflicts in relationships that the contractors may have is represented in the failure of execution of the exact needs of the project.
For Project 3 the negotiating position and conflicts in relationships of the participants of this project are described below.
The negotiating position of the owner will be the QH and Queensland shared services (QSS).
The potential conflicts in relationships that the owner may have are to fail in engaging stakeholders and to conduct ineffective change management (KPMG 2012).
The negotiating position of the designers will be IBM.
The potential conflicts in relationships that the designers may have are the failure to support the required changes in business approaches, systems architecture and processes (KPMG 2012).
The negotiating position of the contractors will be the technical approvals group (TAG) that supports the information and communication technology (ICT) and works with all working groups (KPMG 2012).
The potential conflicts in relationships that the contractors may have are represented in the failure to provide reviews and technical advice (KPMG 2012).
For Project 4 the negotiating position and conflicts in relationships of the participants of this project are described below.
The negotiating position of the owner will be the QH.
The potential conflicts in relationships that the owner may have are represented in the failure to adopt a strong focus on the business benefits and inability to provide a clear position of the funding status.
The negotiating position of the designers will be IBM.
The potential conflict in relationships that the designers may have is represented in ensuring that the payroll system delivers the essential services to the QH staff (KPMG 2012).
The negotiating position of the contractors will be ‘CorpTech’.
The potential conflicts in relationships that the contractors may have are the failure to determine the methods, sequences, techniques and procedures to direct the project activities (Peña-Mora & Tamaki 2001).
This section provides the best negotiation strategy to be used when negotiating each project. The recommended strategies are briefly discussed.
For Project 1 the negotiating position recommended should follow the strategic approach. It represents a rational decision-making process (Alfredson & Cungu 2008).
For Project 2 the negotiating position recommended should follow the concession exchange approach. It focuses on the learning process people interact with each other and exchange knowledge (Alfredson & Cungu 2008).
For Project 3 the negotiating position recommended is to follow the behavioral approach. It represents an interaction between different personality types (Alfredson & Cungu 2008).
For Project 4 the negotiating position recommended should follow the structural approach. It aims to define conflict scenarios between opponents (Alfredson & Cungu 2008).
This section introduces the best negotiating method to be used according to each project.
Forward strategy for payroll system
The method to be used is conducting a plan to obtain a specific result or goal. It requires focusing on specific items (Krezner 2013).
Governance and decision-making
The process is to respond to the previous experiences and influence the next ones. It is important to find a mutual solution among the participants to create shared value. The project stakeholders have to be honest in their belief of recovery (Krezner 2013).
The method of negotiation represents the individual characteristics, it could be ‘hardliners’ or ‘soft liners’ (Alfredson & Cungu 2008). Only realistic expectations should be negotiated with people to be able to implement changes (Krezner 2013).
The negotiation process is to use the relative power in showing the cost-benefit analysis of the funds to define whether the project in a good position or not (Alfredson & Cungu 2008). There should be a priority to the trade-offs (Krezner 2013).
This section discusses the outcomes of each project by recommending the best procurement approach and the detailed sub forms of negotiations according to the requirements of each project.
The preferred form of procurement as an outcome of the negotiation process for Project 1 is to focus on integrated design and delivery procurement arrangements. It is preferred for its ability to integrate the system components through planning and control. The recommended subform is management contracting (MC). It allows for early involvement of the contractor in the process of design development. This approach provides good solutions to production problems (Walker & Walker 2015).
The preferred form of procurement as an outcome of the negotiation process for Project 2 is to focus on integrated project teams, in order to emphasize collaboration and coordination. The recommended subform is early contractor involvement (ECI). It eliminates cost, waste of time and effort (Walker & Walker 2015).
The preferred form of procurement as an outcome of the negotiation process for Project 3 is to focus on integrated design and delivery procurement arrangements. The recommended subform is design and constructs (D&C). It could integrate the various functions of design and delivery through an integrated mechanism delivered by an out-sourcing (Walker & Walker 2015).
The preferred form of procurement as an outcome of the negotiation process for Project 4 focuses on integrated project teams, in order to emphasize collaboration and coordination. The recommended subform is the framework agreements. It is considered efficient for organizations that need to contract service delivery, such as IS design and implementation (Walker & Walker 2015).
References
Alfredson, T & Cungu, A 2008, Negotiation theory and practice: A review of the literature, FAO, Italy.
Eden, R & Sedera, D 2014, ‘The largest admitted IT project failure in the Southern Hemisphere: A teaching case’, Thirty-Fifth International Conference on Information Systems, Queensland University of Technology, Auckland.
KPMG 2012, ‘Queensland health: Review of the Queensland health payroll system’, KPMG, Australia.
Krezner, H 2013, Project management: A systems approach to planning, scheduling and controlling, John Wiley & Sons, Inc., USA.
Peña-Mora, F & Tamaki, T 2001, Effect of Delivery Systems on Collaborative Negotiations for Large-Scale Infrastructure Projects, American Society of Civil Engineers, USA.
Queensland Health Payroll System Commission of Inquiry 2013, Report, Queensland Health Payroll System Commission of Inquiry, Australia.
The Courier-Mail 2012, ‘Secret Cabinet documents emerge as Labor tries to fend off inquiry over Queensland Health payroll’, The Courier-Mail, Queensland.
Walker, D & Walker, B 2015, Collaborative project procurement arrangements, Project Management Institute, Inc, USA.
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