ICT Two Pass RACI Matrix
The RACI diagram presents a matrix of the relevant roles of key stakeholders at each step in the ICT Investment Approval process. The roles identified in the matrix include:
- Responsible – the role that does the identified work
- Accountable – the role that approves the work and owns the outcome
- Consulted – stakeholders that are consulted about or contribute to the work
- Informed – stakeholders that are informed on progress or outcome of the work
There are seven key stakeholder groups identified – in three high level groupings. The groupings are Entity, Finance and Government.
In the Entity grouping, the stakeholders are Business Area, CIO and CFO.
In the Finance grouping the stakeholders are Department of Finance (Finance) and Budget Group.
In the Government grouping the stakeholders are the Expenditure Review Committee (ERC) and Cabinet.
In the process step “Finance discusses ICT investment intentions with entities", Entity Business Area, Entity CIO and Entity CFO are identified as being responsible, Finance is identified as being accountable and Budget Group is identified as informed.
In the process step “Entities commence development of their First Pass Business Case”, Entity Business Area is identified as accountable, Entity CIO is identified as responsible, Entity CFO, Finance and Budget Group are identified as consulted.
In the process step “Finance reviews draft First Pass Business Case and provide feedback to entity", Entity Business Area, Entity CIO and Entity CFO are identified as consulted, Finance is identified as both Accountable and Responsible, and Budget Group is identified as consulted.
In the process step “Government decides if the proposal will proceed to Budget deliberations”, Entity Business Area, Entity CIO and Entity CFO are identified as informed, Finance and Budget Group are identified as consulted, ERC is identified as responsible and Cabinet is identified as accountable.
In the process step “Entities incorporate feedback and submit final First Pass Business Case to Finance”, Entity Business Area is identified as accountable, Entity CIO is identified as responsible and Entity CFO, Finance and Budget Group are marked as consulted.
In the process step “Government considers first pass proposal”, Entity Business Area, Entity CIO and Entity CFO are identified as informed, Finance and Budget Group are identified as consulted, ERC is identified as responsible and Cabinet is identified as accountable.
In the process step “Entities develop their draft Second Pass Business Case”, Entity Business Area is identified as accountable, and Entity CIO is identified as responsible, Entity CFO, Finance and Budget Group are identified as consulted.
In the process step “Finance reviews Second Pass Business Case and provides feedback to entities”, Entity Business Area, Entity CIO and Entity CFO are identified as consulted, Finance is identified as both Accountable and Responsible, Budget Group is identified as consulted and ERC is identified as informed.
In the process step “Entities incorporate feedback and submit final Second Pass Business Case”, Entity Business Area is identified as accountable, Entity CIO is identified as responsible, Entity CFO, Finance and Budget Group are identified as consulted.
In the process step “Government considers the second pass proposal”, Entity Business Area, Entity CIO and Entity CFO are identified as informed, Finance and Budget Group are identified as consulted, ERC is identified as responsible and Cabinet is identified as accountable.
ICT Investment Approval and Assurance Reviews Process Alignment
A swim-lane diagram showing the high level process flows within and relationships between the Project Life Cycle, Assurance Reviews, the ICT Investment Approval process and Cabinet.
The Project Lifecycle begins with Phase 1 – Establish Business Need.
Aligned with this phase, in the Assurance Review stream – Entity submits Risk Potential Assessment Tool, footnote to proposal criteria. This links to Pre-decision Assurance Reviews.
Proposal Criteria:
- projects have a total cost estimated to be $30 million or more for procurement or infrastructure; or an estimated total cost of $30 million or more including an ICT component of at least $10 million;
- programs have a total cost estimated to be over $50 million; and
- RPAT risk assessment of medium or higher.
- Refer to Estimates Memorandum for details.
The ICT Investment Approval process stream begins with Entity notifies Finance of ICT investment intentions, which aligns the Cabinet stream process, Portfolio Ministers write to Cabinet Secretary / Prime Minister seeking approval to bring proposal forward.
Next in the ICT Investment Approval process stream – Entity submits draft First Pass Business Case to Finance, footnote to proposal criteria.
Proposal criteria:
- proposals are ICT-enabled;
- have a total cost estimated to be $30 million or more, including ICT costs of at least $10 million; and
- are assessed by Finance as being high-risk
This informs the Assurance Reviews, and is aligned with Cabinet decision – Cabinet Secretary/ERC authorises proposal to be brought forward to cabinet.
If this Cabinet decision is Yes, it triggers the ICT Investment Approval process Entity submits final First Pass Business Case to Finance. If the decision is no, it links to the terminator – Cabinet does not approve proposal in current budget.
The Project Lifecycle then moves to Phase 2 – Develop Business Case.
In the ICT Investment Approval process stream the previous activity, Entity submits final First Pass Business Case to Finance now links to Entity lodges Cabinet Submission seeking first pass approval. This links to a Cabinet decision – Cabinet gives first pass approval. If the decision is yes, the ICT Investment Approval process Entity submits draft Second Pass Business Case to Finance is triggered. If the decision is no, it links to the terminator – Cabinet does not approve proposal in current budget.
The Entity submits draft Second Pass Business Case to Finance process informs the next Pre-decision Assurance Reviews process, and informs the ICT Investment Approval process Entity submits final Second Pass Business Case to Finance. This links to Entity lodges Cabinet Submission seeking second pass approval. This links to the final Cabinet decision, Cabinet gives second pass approval? If yes the decision links to the Implementation phase of the Project Lifecycle. If the decision is no, it links to the terminator – Cabinet does not approve proposal in current budget.
The Project Life Cycle and Gateway proceed through the implementation phase as follows:
- Phase Three – Develop Delivery Strategy
- Gate Two – Delivery Strategy or Mid-Stage Program Review
- Phase Four – Examine Delivery Solution
- Gate Three – Investment Decision or Mid-Stage Program Review
- Phase Five – Deliver Solution
- Gate Four – Readiness for Service or Mid- Stage Program Review
- Phase Six – Manage contract/transition to BAU
- Gate Five – Benefits Realisation - or Mid/Final Stage Program Review
- Closure – End of project
Footnotes:
ICT-enabled proposals are those where the policy or service delivery outcomes are highly dependent on the underpinning ICT system.
If a proposal does not meet the cost thresholds for the ICT Investment Approval process, it still may meet risk thresholds, which are determined by Finance. Finance may recommend to the ERC that the proposal would benefit from the ICT Investment Approval process.
The decision process outlined above must be considered in the context of the current Budget Process Operational Rules, available through your CFO Unit.