Table Of ContentState of Florida
Agency for Workforce Innovation
Unemployment Compensation Services
Schedule IV-B Feasibility Study
Unemployment Compensation Modernization
Author: The North Highland Team
Vendor: The North Highland Company
Version: 2.1
Creation Date: 10/21/2008
Last Accessed: 2/15/2010 11:58 AM
File Name: 20090114 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System
v2.1.doc
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
DOCUMENT CONTROL
Change Record
Date Author Version Change Reference
10/19/2008 Cara North 0.01 Shell Created
10/20/2008 Cara North 0.02 Project Management section updated
10/21/2008 Cara North 0.03 Risk Assessment section restructured
10/24/2008 Cara North 0.04 Risk Management section restructured
10/28/2008 Cara North 0.05 Baseline Analysis section modified
11/07/2008 Cara North 0.06 Executive Summary section modified
11/12/2008 Cara North 0.07 Completed review and update of Risk
Management, OCM, Project Communication,
Project Oversight, and Quality Control
sections
11/14/2008 Cara North 0.08 Added project schedule and WBS
11/17/2008 Cara North 0.08 Populated Baseline Analysis section
11/18/2008 Cara North 0.09 Business requirements section updated
11/19/2008 Cara North 0.10 Business requirements section updated
11/20/2008 Cara North 0.11 Business requirements section updated
12/01/2008 Cara North 0.13 Baseline analysis completed
12/04/2008 Cara North 0.14 Project Budget language added and required
TRW worksheet imbedded
12/08/2008 Andy Loveland 0.15 Added Executive Summary, Cost Benefit, and
Tech Planning Sections
12/16/2008 Cara North 0.16 Incorporated client comments as received as
of 12/16/2008.
12/22/2008 Andy Loveland 0.20 Incorporated client comments.
12/30/2008 Andy Loveland 1.0 Finalized updates and submitted document.
01/14/2009 Andy Loveland 2.1 Final
2/15/2010 Page 2 of 267 Version: Final
UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
Contributors List
Name Affiliation
Tom Clendenning UC Program Director
Janice Connell UC Subject Matter Expert
Jon Corder UC Subject Matter Expert
Sandy Durant UC Subject Matter Expert
Gail Griffin-Hall UC Subject Matter Expert
David Hagen UC Subject Matter Expert
Denise Haney UC Subject Matter Expert
Daniel P. Johnson AWI Information Technology Planning
Dorothy Johnson UC Subject Matter Expert
Mary Johnson UC Subject Matter Expert
Geir Kjellevold North Highland
Ron McCranie UC Subject Matter Expert
Andy Loveland North Highland
Cara North North Highland
Nancy Osborn UC Subject Matter Expert
Dianne Parcell UC Subject Matter Expert
Brian Peacock North Highland
Pat Pitts UC Subject Matter Expert
Jerry Reeves UC Subject Matter Expert
Altemese Smith UC Subject Matter Expert
Scott Stewart AWI CIO
Audra Wiggins UC Subject Matter Expert
Approval Sign-off
Name Role Signature Date
Scott Stewart Chief Information Officer
Tom Clendenning Program Director
2/15/2010 Page 3 of 267 Version: Final
UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
TABLE OF CONTENTS
DOCUMENT CONTROL ........................................................................................................................... 2
1 COVERSHEET & EXECUTIVE SUMMARY ...................................................................................10
1.1 COVERSHEET ................................................................................................................................10
1.2 EXECUTIVE SUMMARY .................................................................................................................11
1.2.1 Introduction ..........................................................................................................................11
1.2.2 Cost and Benefits of new UC system ....................................................................................12
1.2.3 Risk of Failure ......................................................................................................................13
1.2.4 Getting Floridians Back to Work ..........................................................................................13
1.2.5 Additional Challenges ..........................................................................................................14
1.2.6 Recommendation ..................................................................................................................16
1.2.7 Conclusion ............................................................................................................................22
2 SCHEDULE IV-B BUSINESS CASE ...................................................................................................23
2.1 BACKGROUND AND STRATEGIC NEEDS ASSESSMENT ...................................................................23
2.1.1 Agency Programs and Services Environment .......................................................................23
2.1.2 Stakeholders and Users of UC Programs, Services and Business Processes .......................28
2.1.3 Statement of Need .................................................................................................................30
2.1.4 Mission Critical Application at End of Life ..........................................................................31
2.1.5 Business Process Issues and Opportunities ..........................................................................33
2.1.6 UC Program Business Objectives ........................................................................................36
2.2 BASELINE ANALYSIS ....................................................................................................................40
2.2.1 Guide to the Business Process Descriptions in this Section .................................................40
2.2.2 Current Business Process Requirements ..............................................................................40
2.2.3 Claims Intake Process – Interactive Voice Response (IVR) .................................................41
2.2.4 Claims Intake – Florida Unemployment Internet Direct (FLUID).......................................52
2.2.5 Adjudication .........................................................................................................................56
2.2.6 Customer Information Center ...............................................................................................63
2.2.7 Reengineering .......................................................................................................................68
2.2.8 Wage Determination .............................................................................................................74
2.2.9 Special Payments ..................................................................................................................79
2.2.10 Employer Charges Unit ........................................................................................................84
2.2.11 Benefit Payment Control (BPC) ...........................................................................................89
2.2.12 Appeals ...............................................................................................................................101
2.2.13 Quality Improvement and Federal Reporting .....................................................................112
2.2.14 Assumptions and Constraints .............................................................................................117
2.3 PROPOSED BUSINESS PROCESS REQUIREMENTS .........................................................................119
2.3.1 Process Specific Business Requirements ............................................................................119
2.3.2 Proposed Business Process Improvements .........................................................................131
2.3.3 Business Process Participants ............................................................................................135
2.3.4 Performance Measures .......................................................................................................135
2.3.5 Business Solution Alternatives............................................................................................136
2.3.6 Rationale for Selection .......................................................................................................137
2.3.7 Recommended Business Solution ........................................................................................139
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UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
3 SCHEDULE IV-B COST BENEFIT ANALYSIS .............................................................................144
3.1 PURPOSE ..................................................................................................................................144
3.2 SUMMARY OF THE UC OPERATING ENVIRONMENT .....................................................144
3.2.1 Conditions That Have Created the Need for the Proposed UC Modernization Project .....145
3.3 UC MODERNIZATION PROJECT TIMELINE .......................................................................146
3.4 COST BENEFIT ANALYSIS DETAILS ..................................................................................146
3.4.1 UC Modernization Project Benefits Summary....................................................................146
3.4.2 UC Modernization Project Feasibility Study .....................................................................147
3.4.3 UC Modernization Benefits Realization Strategy ...............................................................150
3.4.4 Benefits Realization Table ..................................................................................................152
3.4.5 Nature of the Tangible Benefits ..........................................................................................162
3.4.6 Tangible Changes in Operating Cost .................................................................................162
3.4.7 Expanded Return on Investment Analysis ...........................................................................169
3.5 COST-BENEFIT ANALYSIS RESULTS .................................................................................170
4 RISK ASSESSMENT ...........................................................................................................................173
4.1 RISK ASSESSMENT TOOL ............................................................................................................173
4.2 RISK ASSESSMENT SUMMARY ....................................................................................................174
5 TECHNOLOGY PLANNING COMPONENT .................................................................................177
5.1 CURRENT INFORMATION TECHNOLOGY ENVIRONMENT .............................................................177
5.1.1 Current System Description Overview ...............................................................................178
5.1.2 Strategic Information Technology Direction ......................................................................185
5.1.3 Information Technology Standards ....................................................................................186
5.2 PROPOSED SOLUTION DESCRIPTION ............................................................................................187
5.3 CAPACITY PLANNING .................................................................................................................187
5.4 ANALYSIS OF ALTERNATIVES .....................................................................................................188
5.4.1 Assessment Process ............................................................................................................190
5.4.2 Scoring Results for the Three Alternatives (General) ........................................................197
5.4.3 Scoring Results Explained ..................................................................................................198
5.4.4 Technology Recommendation .............................................................................................202
6 PROJECT MANAGEMENT PLANNING COMPONENT .............................................................203
6.1 PROJECT CHARTER .....................................................................................................................203
6.2 WORK BREAKDOWN STRUCTURE ...............................................................................................219
6.3 RESOURCE LOADED PROJECT SCHEDULE ...................................................................................221
6.4 PROJECT BUDGET .......................................................................................................................221
6.5 PROJECT ORGANIZATION ............................................................................................................222
6.6 PROJECT QUALITY CONTROL ......................................................................................................229
6.7 EXTERNAL PROJECT OVERSIGHT ................................................................................................230
6.8 RISK MANAGEMENT ...................................................................................................................230
6.8.1 Mitigation Strategies ..........................................................................................................231
6.8.2 Risk Management Plan .......................................................................................................231
6.8.3 Project Risk and Mitigation Table ......................................................................................233
6.9 ORGANIZATIONAL CHANGE MANAGEMENT ...............................................................................241
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UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
6.10 PROJECT COMMUNICATION ........................................................................................................241
6.11 SPECIAL AUTHORIZATION REQUIREMENTS .................................................................................243
7 APPENDICES ......................................................................................................................................244
7.1 APPENDIX A - HIGH-LEVEL BUSINESS REQUIREMENTS ..............................................................244
7.2 APPENDIX B - HIGH-LEVEL TECHNICAL REQUIREMENTS ...........................................................256
7.3 APPENDIX C – CBA FORMS ........................................................................................................258
7.4 APPENDIX D – COST EXPERT ESTIMATION SUMMARY REPORT ..................................................267
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UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
LIST OF TABLES
Table 1-1 Schedule IV-B Cover Sheet and Agency Project Approval .................................................10
Table 1-2 UC system benefits ....................................................................................................................12
Table 1-3 Phase 2 Activities .......................................................................................................................19
Table 1-4 Phase 3 Activities .......................................................................................................................19
Table 1-5 UC Modernization Project Cost by Fiscal Year .....................................................................20
Table 2-1 UC Modernization Project Stakeholders ................................................................................28
Table 2-2 Claim Intake Process – IVR – Activity Detail.........................................................................51
Table 2-3 Claim Intake Process - FLUID Application – Activity Detail ..............................................55
Table 2-4 Adjudication Process – Activity Detail ...................................................................................62
Table 2-5 Customer Information Center Process - Activity Detail ......................................................67
Table 2-6 Reengineering Process Activity Detail ...................................................................................73
Table 2-7 Wage Determination - Activity Detail ....................................................................................78
Table 2-8 Special Payments - Activity Detail ..........................................................................................83
Table 2-9 Employer Charges Unit - Activity Detail ...............................................................................88
Table 2-10 Benefit Payment Control - Activity Detail .........................................................................100
Table 2-11 Appeals Process .....................................................................................................................111
Table 2-12 Quality Improvement and Federal Reporting ...................................................................116
Table 2-13 Claims Intake Process Improvements .................................................................................132
Table 2-14 Adjudication and Appeals Process Improvements ...........................................................132
Table 2-15 Control and Reporting Process Improvements .................................................................133
Table 2-16 Infrastructure Improvements ...............................................................................................134
Table 2-17 Business Process Participants ...............................................................................................135
Table 2-18 Proposed Improvements with Supporting Alternative(s) ...............................................139
Table 3-1 Current System Deficiencies and Associated Business Impacts .......................................146
Table 3-2 Benefit Drivers for the UC Modernization Project ..............................................................148
Table 3-3 Estimated Value of Benefits Used to Justify Investment in UC Modernization .............149
Table 3-4 UC Modernization Project Cost by Fiscal Year ...................................................................171
Table 5-1 Current System Performance .................................................................................................185
Table 5-2 Evaluation Criteria .................................................................................................................195
Table 5-3 Weighting Criteria ..................................................................................................................196
Table 5-4 Scoring Criteria .......................................................................................................................197
Table 5-5 Alternative Scoring Results Summary .................................................................................197
Table 5-6 Alternative 1 Scoring Results ................................................................................................199
Table 5-7 Alternative 2 Scoring Results ................................................................................................200
Table 5-8 Alternative 3 Scoring Results ................................................................................................201
Table 6-1 Phase 2 Activities ....................................................................................................................207
Table 6-2 Phase 3 Activities ....................................................................................................................207
Table 6-3 Project Deliverables ................................................................................................................211
Table 6-4 Project Milestones and Go/No-Go Decision Points ..........................................................212
Table 6-5 Stakeholders Affected by the UC Modernization project .................................................214
Table 6-6 Project Organization Members - Roles & Descriptions .....................................................228
Table 6-7 Quality Standards by Project Area .......................................................................................229
Table 6-8 Project Risk Checkpoints ........................................................................................................232
Table 6-9 Risk and Mitigation Table ......................................................................................................240
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UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
Table 7-1 High-Level Business Requirements ......................................................................................255
Table 7-2 High-Level Technical Requirements .....................................................................................257
2/15/2010 Page 8 of 267 Version: Final
UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
LIST OF FIGURES
Figure 1-1 National Status of UI Benefits Modernization .....................................................................16
Figure 1-2 Proposed Project Phases .........................................................................................................18
Figure 1-3 Proposed Project Timeline .....................................................................................................18
Figure 1-4 Cumulative Discounted Cash Flow.......................................................................................21
Figure 2-1 UC Organization and Reporting Structure .........................................................................25
Figure 2-2 National Status of UI Benefits Modernization .....................................................................31
Figure 2-3 Department Goals and Strategic Objectives .........................................................................37
Figure 2-4 Claims Intake Process - IVR ...................................................................................................41
Figure 2-5 Adjudication Process ...............................................................................................................57
Figure 2-6 Customer Call Center Process ................................................................................................63
Figure 2-7 Wage Determination Process .................................................................................................74
Figure 2-8 Special Payments Process .......................................................................................................79
Figure 2-9 Employer Charges Unit Process ............................................................................................84
Figure 2-10 Appeals Process ...................................................................................................................102
Figure 2-11 Special Deputy Process .......................................................................................................103
Figure 2-12 Quality Improvement and Federal Reporting Process ...................................................112
Figure 2-13 Conceptual UC Business Model ........................................................................................140
Figure 1-1 UC Modernization Project Timeline....................................................................................146
Figure 1-2 UC Modernization Benefits Realization Timeline .............................................................149
Figure 1-3 UC Benefits Realization Management ................................................................................150
Figure 1-4 Estimated UC Modernization Project Costs .......................................................................163
Figure 1-5 Cumulative Discounted Cash Flow.....................................................................................172
Figure 4-1 Project Risk Assessment Summary .....................................................................................175
Figure 4-2 Project Risk Assessment Summary Table ...........................................................................176
Figure 5-1 High Level Architecture........................................................................................................180
Figure 5-2 IVR & TeleClaims...................................................................................................................183
Figure 6-1 UC Modernization Project Phases .......................................................................................204
Figure 6-2 Proposed Project Timeline ...................................................................................................206
Figure 6-3 Proposed Change Request Process ......................................................................................218
Figure 6-4 High-Level Work Breakdown Structure ............................................................................220
Figure 6-5 Proposed Project Organization ...........................................................................................223
2/15/2010 Page 9 of 267 Version: Final
UC Modernization Project
Agency for Workforce Innovation
AWI10_20090202 - AWI - Schedule IVB Feasibility Study
for the Unemployment Compensation System v2.2
1 COVERSHEET & EXECUTIVE SUMMARY
1.1 COVERSHEET
INSERT COPY OF SIGNED COVERSHEET
Table 1-1 Schedule IV-B Cover Sheet and Agency Project Approval
2/15/2010 Page 10 of 267 Version: Final
UC Modernization Project
