Delivering KiwiSaver Programme Management Approach

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Delivering KiwiSaver - Programme Management
Approach
Cathy Magiannis Neil Annenberg

• 15th October 2007

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KiwiSaver is

• A voluntary work-based savings scheme.
• Announced in Budget 2005
• Enhanced in Budget 2007
• Live from 1 July 2007
• Part of an ongoing package of initiatives to
  increase individual savings and support New
  Zealanders in retirement
• KiwiSavers purpose is to encourage a long-term
  savings habit and asset accumulation to improve
  financial well-being, particularly for retirement

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KiwiSaver is Simple!
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Key Players
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Strategic Framework

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Strategic Challenges/Opportunities

• World first no precedents
• Not core IR business
• Design/ build in parallel with legislation
• Tight timeframe
• Branding Exercise
• Partnership with employers and providers
• Cross government initiative
• High profile initiative

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Implementation Challenges/Opportunities

• Required sophisticated project management
  framework
• Sizeable team required
• Competing for scarce resources, particularly IT
• New line of business for Inland Revenue
• Communications and stakeholder relationships
• Systems challenges (scale and complexity)

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Stakeholder Communication/ Engagement

• IRs role to inform and educate not sell or
  promote
• Employers, individuals and providers are key
  stakeholders
• Major engagement with employers and providers
• Multi-media advertising campaign to target
  individuals
• Strong brand emphasis

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Volumes

• Take up assumptions
• - 50 of workforce in 10 years
• - 350,000 members after year 1

Take up as at 5th October 2007

• 45 schemes registered with Government Actuary
• 11,473 employer chosen schemes

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Current Challenges

• Budget announcements changed landscape
• Tight timeframe enactment/implementation
• Employer concerns re. compliance and financial
  costs
• Competing priorities (supporting vs. delivering
  vs. designing new processes)

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Key Events for IR
Active choice providers register
Enrolments commence
Default providers selected
Sept. 06
May 07
Oct. 07
Jan. 07
March 07
July 07
Dec. 06
Publicity campaign
B2B exchange
Legislation enacted
Payroll specifications
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Scope Changes

• Legislation enacted Sept. 2006
• design already complete and build work started
• subsequent amendments/remedials
• Budget 2007
• new policies and processes
• increased member volume from 1 July
• revised collateral
• new phases of work
• revised legislation in 2 stages

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Key Events for IR
Compulsory Employer Contribution Employer Tax
Credit
Active choice providers register
Enrolments
Default providers selected
July 08
Sept. 06
May 07
Oct. 07
Jan. 07
April 08
July 07
March 07
Dec. 06
B2B exchange
Budget 07 announcement Publicity campaign
Member Tax Credit
Legislation enacted
Payroll specifications
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Governance
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Business Programme

• Relationship management
• Financial services scheme providers, payroll
• Employer groups
• Employee groups
• Government and other agencies
• Media campaign PR
• Organisational Design
• Process design
• Accommodation, recruitment and training

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Systems Programme

• New Central Administrator System (CAS)
• Upgrades to mainframe for Employer Monthly
  Schedules, IR-File, reconciliations
• Enhanced On-line (web) functionality
• Enhanced B2B functionality
• Enhanced call management, imaging, statementing
  functions
• Complex systems integration - 93 systems
  interfaces
• 2 consortium partners

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Programme Delivery

• Day-to-day delivery of the overall schedule
• Deployment strategy
• Planning Centre
• Project disciplines and project management
  standards
• scheduling
• risk and issues
• change control
• milestones dependencies
• quality assurance
• Governance and stakeholder relationships

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Phases Stages
Compulsory Employer Contribution Employer Tax
Credit
B2B exchange
Member Tax Credit
Enrolments
July 07
Oct. 07
April 08
July 08
Phase 1
Phase 2
Phase 3

• Phases 1 2 alone
• 24 projects, 2 sister projects
• Master (summary) plan 5,100 lines
• 408 milestones
• 626 dependencies

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Design Authority

• Traceability

policy intent

• Small core group
• Wider interest group
• Rapid decisions that stick

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The Planning Centre Approach

• Focus on master CP, monitor individual CPs
• Top-down, bottom-up
• Weekly exceptions meetings
• Weekly Change Control Board
• Bi-weekly hot topic meetings
• Manage the bow-wave
• CP managed daily in weeks before live
• Focus on outcomes (scope) outputs (quality)

On Time. To Quality
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Release Management

• Deployment Centre
• Steering Committee approvals
• Defect analysis
• Inter-project co-ordination
• Systems brown out
• Shared ownership with operational teams
• Dedicated Systems Service Support

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Lessons Learned

• Levels of detail, e.g. estimations
• Project methodologies
• Change requests
• Dependency mapping
• Bleeding edge technology
• Retaining IP
• Communications

• Governance
• Policy team
• Stakeholder relationships
• Clear CSFs
• Quality control
• Scope
• Scheduling
• Transition to day-to-day
• Capability sets

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Any Questions?