1. Supporting Industry Change Planning: Risk & Milestone Assessment Process & Tools 07/07/2014

2. Context At the Change Overview Board on 7 th April Xoserve positioned the concept of helping the COB develop a consolidated view of the future change landscape and associated risks profile across this spectrum It was agreed that this information would be valuable to the COB and Xoserve has since engaged with selected industry stakeholders to develop the concept further This deck showcases the tools that could be employed to capture information and a proposed process for collecting it Xoserve is keen to get feedback on both the tools and process and importantly gauge the nature of the information industry stakeholders would be willing to share Xoserve proposes a trial of the process to assess the value it can deliver for the industry 2014

3. Proposed Tools Change Horizon Risk Management FrameworkMilestone Reporting A standard framework to capture, consolidate and package an industry wide view of risk. Centralised monitoring of change programme phase dates to assess industry progress and readiness for implementation 1 23 A (periodically maintained) consensus view of change drivers within the industry

4. The Change Horizon In order to frame the discussions of the Change Overview Board a consensus view of the ‘Change Horizon’ must be maintained. This view will ensure COB discussions cover common change drivers within the industry from current change programmes to longer term strategic drivers of change. The diagram below details the current Change Horizon view, compiled since the April COB via consultation with industry stakeholders. Xoserve suggests that the Change Horizon should be reviewed [quarterly] at COB. The items defined within the Change Horizon will feed into the proposed risk and delivery milestone assessment frameworks. It must be decided which change drivers are considered for detailed analysis.

5. Risk Management Framework The ‘Change Horizon’ will detail the change drivers within the industry (current change programmes and future drivers of change) Industry stakeholders will be asked to flag risks against specific change drivers Change Drivers Risk Parameters Risks will be further categorised against agreed (weighted) risk parameters The risk parameters are focused on current change programmes but could be expanded to have a longer term strategic focus A template will be shared with industry stakeholders within which risks are to be captured This is intended to be an offline process in which stakeholders submit a risk assessment to Xoserve Xoserve will collate, anonymise and package the data for discussion at the COB At the highest level this would be a risk heat map to identify concentrated areas of risk Risk Capture Risk Analysis & Presentation

6. Risk Parameters ParameterDescriptionWeightingExamples System Readiness Risks which fundamentally impact the delivery schedule of system changes. This parameter could be further segmented by delivery phase (design, build, test, deploy) 40% 1.Major delay experienced within a phase of the programme risking the implementation date 2.Lack of contingency within the plan 3.Major constraints on SME resource 4.Extensive customisation required to the solution Delivery Quality Risks which impact the delivery quality and could compromise meeting industry requirements 30% 1.The delivery schedule dictates that test phases must be truncated / streamlined in order to meet the delivery timelines 2.Ambiguous / unclear industry requirements Business Readiness Risks which impact the organisation’s ability to have their people and processes ready to support the system changes 30% 1.The demands of BAU activities are preventing resources from undertaking the required training to support the Change Programme 2.Delays in system development impacting business change activities Employing risk parameters will ensure that industry participants consider risk across common dimensions. The table below outlines some suggested parameters which are relevant to inflight change programmes.

7. Delivery Milestone Reporting Change Drivers Collect Baseline Dates Maintain Forecast Dates Data Analysis & Presentation The ‘Change Horizon’ will again define the programmes for consideration within this process Programmes with 'Firm Deliverables' due for implementation within 1-2 years will be assessed For each assessed Change Programme respondents are requested to provide baseline phase end dates for key delivery phases Periodically respondents will be asked for forecast dates for the key milestones to enable assessment of current progress vs. original targets Xoserve will collate an anonymised view of delivery progress across the assessed change programmes in order to identify trends within the industry

8. Value Delivered A clear and consolidated view of plans, priorities, risks and dependencies across the industry would be an extremely valuable resource for the COB. The graphic below summarises the key benefits: The information will represent a consolidated industry view. The discussion can focus on the areas of greatest importance and accordingly make most efficient use of time. The risk profile can be used in part to drive the agenda of the meetings to ensure all key risk areas are covered. Efficiency Discussion will be informed by a ‘single source of the truth’ based upon accurate data. Accuracy The information source will add credibility and robustness to the recommendations made by the COB as they will be clearly reinforced by supporting evidence. This will increase the impact of those recommendations with decision stakeholders Evidence Clear, consolidated information is likely to aid the forum in reaching a consensus on recommendations Consensus The information will be representative of the whole industry as all industry participants will be given opportunity to input. Inclusiveness

9. Information Sensitivity What level of information would you be willing to share with the Change Overview Board? Are risks concerning inflight change programmes deemed commercially sensitive? Delivery milestone information – phase dates or RAG status? What information would be deemed too sensitive to be divulged? Will internal governance processes pose any challenge to the process? It is assumed that risk information would need to be anonymised before it’s shared with the forum

10. Next Steps: Activities & Timelines Xoserve Industry w/c 07-Julw/c 14-Julw/c 21-Julw/c 28-Julw/c 04-Augw/c 11-Augw/c 18-Augw/c 25-Augw/c 01-Sep COB Process & tools presented at COB Progress Update Risk Profile and Milestone Data Presented Answering questions, tool & process refinement Data collated & packaged Detailed review of the tools & dialogue with Xoserve Prepare status check Complete and submit the data capture form Xoserve will present an update on the progress of the initiative at the August COB. The update will cover levels of engagement and clarifications following any queries on the process or tools Please review the process and tools within your own organisation and begin to record risk and milestone information. Please proactively engage with Xoserve should you have any queries. Please submit a complete data capture form to Xoserve no later than Friday 15 th August. Xoserve intends to present the packaged risk and milestone information at the COB on September 1st