CalPERS: Building the Future

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Reinventing CalPERS Follow the Yellow Brick
Road
PRISM Conference April 2009
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Agenda

• Introductions
• Where Were Headed
• Where Weve Been
• Project Realignment
• Organization Readiness
• Technical Update
• What Lies Ahead
• Data Conversion
• Testing
• Implementation
• Organizational Readiness
• Biggest Challenges
• Lessons Learned
• Q A

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Introductions

• Teri Bennett Assistant Executive Officer,
  Information Technology
• Terry BridgesProject Manager, Pension System
  Resumption

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About CalPERS

• Nations largest public pension fund with assets
  of nearly 165 billion 
• Provides retirement and health benefits to nearly
  1.6 million State and local public employees and
  their families
• Positioned for Recovery and Growth
• Economic Challenges
• Changing Workforce
• Increased Demand for Services

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Where Were Headed (Emerald City!)
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Where Weve Been (The Roads Less Traveled!)
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Integrated Transformation
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Organizational Readiness

• Revised Scope/Changed Reporting Structure
• Program Area Duty Statements
• Change Readiness Assessments 1 and 2
• Program Area Training Model
• Individual Skills Inventories
• Implement Learning Management System
• Transition Management Plans (In Progress)
• Core Process Implementation (In Progress)
• Process Change Guides
• IT Duty Statements
• IT Individual Training Plans
• System Training
• Change Readiness Assessments 3 - 5

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Technical Update

• Initiation and Planning
• General Design
• Block Development
• Detailed Design
• System Test Plan
• Build (In Progress)
• System Test (In Progress)
• End to End Test
• Conversion Test
• Live Data Test
• Employer/Partner Certification Test
• Customer Acceptance Test
• Implementation Dry Runs
• Go-Live

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Project Schedule
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What Lies Ahead (Miles of Rough Terrain)
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Data Conversion
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Data Conversion Overview
Data Conversion
Data Validation
Data Cleanup
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Data Cleanup

• Quality data is important to the success of PSR
• CalPERS Business users have an expectation that
  the new solution will solve the data issues that
  exist in the current systems
• Poor data quality will jeopardize the PSR data
  conversion effort
• New PSR solution will have a lower tolerance
  level for poor data quality than current systems
• New solution will provide CalPERS customers with
  an unprecedented view of their transactional
  history opening up CalPERS retirement data to
  more scrutiny than ever before

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Data Error Identification

• Four ways of finding poor data
• Data Analysis - Field Validation, cross Field
  Validation, cross Table Validation, cross
  Application Validation
• The idea of Perfect Account/Appointmentetc.
  (or the all component parts needed to make up
  the whole exist)
• Inputs from CalPERS program areas and technical
  areas
• Data Conversion Team
• Potential Error Analysis
• CalPERS Business and Technical areas, as well as
  the PSR Data Conversion Team, are consulted to
  determine error priority
• Errors are analyzed to determine automation
  possibility and manual volumes
• DCIU prepares error correction procedures and
  begins correcting the errors (may be done at
  conversion time)

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Data Conversion Approach

• Synchronization with blocks
• PSR Project Schedule is divided into blocks
• Each block addresses a related set of business
  functionality
• Data Conversion attempts to convert data needed
  to support a blocks functionality
• Conversion regression
• Revisit previous blocks to fix defects and to
  incorporate any changes to the legacy systems
• Conversion iteration
• Run conversion programs at periodic intervals to
  convert newly generated data in the legacy systems

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Data Conversion
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Data Validation
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Testing, Testing, Testing
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Overview of Test Phases
The PSR Test Strategy covers all test activities
to be undertaken on the project the illustration
below covers the technical and application test
phases
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Staged Validation Approach
The PSR Test Strategy includes a staged
validation approach, where the level of
confidence in the delivered solution grows over
the course of the test phases
Synthetic Test Data
Converted Live Test Data
CAT
End-to-End System Test

• At similar level to End-to-End System Test but
  has a greater focus on end users of the solution
• Supports user adoption
• Ends the staged validation approach

Converted Data Test

• Highest level of abstraction in Project owned
  test activities
• Focuses on proving business processes across the
  application

System Test

• At similar level to System Test but mitigating
  potential issues with new application software
  operating on converted live data

Level of Confidence
Assembly Test

• Focuses on proving Business Requirements
• Exercises business functions together to support
  processes

Unit Test

• More abstraction from components than in Unit
  Test
• Starts to prove business functions

• Most granular test phase
• Starts the staged validation approach

Include Regression Testing
Executed against all Blocks
Executed by Block
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Testing Activities
The System Test phase for each Block involves
three distinct activities Planning, Preparation
and Execution the illustration below shows the
inputs and outputs for each activity
Test Planning
Test Preparation
Test Execution

• Requirements
• General Design Artifacts
• Emerging Detailed Design

• Test Cases Conditions
• General Design Artifacts
• Detailed Design Artifacts

• Test Scripts (Mercury Quality Center)
• Test Data

Inputs

• Test Plan Deliverable
• Test Cases
• Test Cases
• Test Data Requirements

• Test Scripts (Mercury Quality Center)
• Test Data

• Test Results Report Deliverable
• Completed Scripts (Mercury Quality Center)
• SIRs (System Investigation Requests)

Outputs
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Mock Data Conversions Testing
PSR Mock Data Conversions are utilized as inputs
to some of the later test phases these
relationships are illustrated below
Stress and Load and End-to-End System Test use
the output of the first Mock Conversion
Initial Customer Acceptance Testing uses the
output of the second Mock Conversion
Completion of CAT Execution is dependent on
acceptance of the third Mock Conversion and the
Go-Live decision
Mock Conversion 1
Mock Conversion 3
Mock Conversion 2
Review Approve
Review Approve
Review Approve
PSR Solution Go-Live Decision
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Implementation
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Implementation Planning
Implementation Plan documents the plan to prepare
CalPERS staff and Customers to use the new
system, the process used to evaluate
implementation readiness, and the
post-implementation support approach for CalPERS
staff and Customers.

• At a high-level, the Implementation Plan
  includes
• Cutover strategy
• Go/No-Go decision process
• Readiness assessment approach and high-level
  criteria
• Pre-implementation readiness approach
• Post-implementation support approach (two months
  post Go-Live)

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Cutover Strategy
The cutover strategy documents the approach to
managing the activities related to the cutover
window and the responsibilities of the Project
and CalPERS teams involved in cutover activities.

• The cutover strategy includes
• The dry run approach for mock conversions
• The documentation and tracking process of cutover
  activities within the Cutover Matrix
• Determining the cutover window approach e.g.,
  length, roles and responsibilities
• Unfreeze approach if implementation is delayed
• Rollback after Go-Live was not considered in
  final Deliverable

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Final Conversion and Cutover Timeframes
Maximum Cutover Window Length
Run legacy system batch jobs
Dynamic Data Conversion and Application Start
Data/system validation
Static Data Conversion
Go-Live

• Systems are unavailable while select legacy
  systems are placed in read-only mode

• Extract prior fiscal year payroll data
• Stop accepting adjustments to prior fiscal year
  payroll data (if possible)

• Stop accepting payroll data from Employers

• The maximum length of a cutover window will be 10
  business days
• Both Project and CalPERS will perform data and
  system validation activities
• PSR Implementation Team will use the cutover
  matrix to manage all activities performed in this
  window from an Implementation war room

These are hypothetical activities and
timeframe. Exact timing is being considered by
Program Areas
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Implementation Readiness Assessment
The Implementation Readiness Assessment approach
outlines the process used to make the decision to
implement the new system
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High-Level Implementation Timeline
ITSB Activities
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Pre and Post-Implementation Activities
Information Technology Services
Future
G-L 6
G-L 3
G-L -3
G-L -6
G-L -9
G-L -12
G-L -15
G-L -18
ITSB Newsletters (monthly)
Communications / Readiness Support
All Staff Newsletters (monthly)
Deploy Transition Guides
Build and Support Stress Load Environment
Environment Management
Build and Support CAT Environment (with Project
Support)
Production Support
ETA Third Party Pre-requisite Vendor Training


ETA Training
myCalPERS Training
Application Maintenance Third Party
Pre-requisite Vendor Training
Training Tracks (1-5)
Application Maintenance Training
Training Tracks (1-5)
Coaches Network
Support Networks
Maintenance Transition
Post Implementation
Pre Implementation
Go-Live ( G-L )
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Pre and Post-Implementation Activities Customers
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Organizational Readiness
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Preparing CalPERS
Preparing CalPERS Staff to make the transition to
the new myCalPERS business and
technology environment is a collaborative effort
between the PSR and ETM Project Teams

• Program Area Transition Readiness Activities
• Identify key business activities
• Develop interim procedures
• Educate end users on business process changes
• Finalize duty statements
• Support development of staffing plans
• Conduct Change Readiness Assessments
• Develop program area Transition Readiness Plans
• Communication

• IT Transition Readiness Activities
• Define new organization structure
• Define IT processes and new or modified roles
• Change Agent Training
• Develop ITSB Transition Readiness Plans
• Marketing/Communication

• IT Training Activities
• Educate infrastructure and application teams on
  new support roles and new system support
  processes
• Provide technology team with skills required for
  myCalPERS
• Communication

• myCalPERS Program Area Training Activities
• Create training materials for the new myCalPERS
• Provide end users with skills required for new
  myCalPERS
• Communication

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Challenges (Its Never Easy!)
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Biggest Challenges

• Organizational Change IT and Program
• Readiness Internal and External
• Development Quality, Competing Objectives
• Testing Complexity, Volume, Timeframes
• Schedule Extremely Agressive
• Resources Demand/Conflict
• Business Decisions Implementation Planning
• End Product Enterprise Acceptance

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Lessons Learned (Pay It Forward!)
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Lessons Learned

• Overlapping Block activities creates contention
  for the same subject matter experts un-stacking
  those overlapping activities adds time and cost
  to project
• The time it takes to get consensus on enterprise
  decisions will always take longer than expected
  build ample time in schedule and dont move
  forward until agreement is reached!
• Ensure all changes to scope, schedule and budget
  have been vetted and approved through formal
  governance process before taking action
• Planning to use business SMEs on a part-time,
  as-needed basis is an ideal but not based in
  reality embed them in the project full time
• On-going operations will be impacted by the
  projectregardless!

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Lessons Learned

• Assumptions change reconfirm at the highest
  levelscontinuously!
• The need for visible and active Executive
  sponsorship is imperative to your success!
• Continuous and active stakeholder engagement is
  critical
• Nobody likes change its tough for everyone!
• Resistance comes in all shapes and sizes! Those
  you least expect will resist the hardest!
• At the point you start planning your change
  management efforts its already too late! Start
  earlyvery early!
• Take time to recognize the staffs
  accomplishments! Reward the wins!!!!!

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Q A
?