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Chart 2: Sample KERA BV/TQ Analysis for Child Welfare Transformation
August 2016
Policy&Practice
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Step 2: Perform a
Gap Analysis
Once the vision and guiding prin-
ciples have been established, the
next step is to identify what specific
functional and technical capabilities
need to be changed in order to achieve
the vision. The most efficient way to
perform this analysis is to use a refer-
ence architecture as a starting point.
The federal architectures such as the
Medicaid IT Architecture, the Centers
for Medicare and Medicaid Services
Exchange Reference Architecture,
or the National Human Services
Interoperability Architecture can
all serve as baselines depending on
which programs are in-scope for the
transformation. That said, most states
planning transformation efforts today,
and looking to leverage the A-87 cost
allocation waiver, will need to consider
more than one set of federal guidelines
and regulations. The KPMG Enterprise
Reference Architecture (KERA) for
health and human services integrates
all three and is the tool we use for
such efforts. It provides a foundation
for a highly repeatable process that
integrates lessons learned from our
prior work and research into leading
practice. That said, with a little bit
of extra effort, a state can create its
own reference architecture to use as a
starting point.
The key at this stage is to stay firmly
focused on the future. It is important
to resist the temptation to reflexively
look at the current state, which will
limit thinking and constrain innova-
tion. The whole idea is to identify the
functional and technical capabilities
needed to achieve the vision and to
determine how they must interact to
effectively achieve the vision in light of
the guiding principles (see Chart 1).
Once the target architecture has been
identified and the needed functional
and technical capabilities isolated, the
next step is to perform a gap analysis
between the target architecture
and the current state. The goal is to
identify where capabilities may exist
somewhere within the enterprise that
could be leveraged in the future state.
Where existing capabilities are found,
a business value/technical quality (BV/
TQ) assessment should be conducted to
“score” the viability of that capability to
support the future vision.
The result of the gap analysis and
BV/TQ is a list of all the capabilities
that are required for achieving the
future vision categorized into one of
the following groups:
�
Capability does not exist; build or
buy is required
�
Capability does exist and can be used
as is
�
Capability does exist with simple
configuration changes
�
Capability does exist and can be used
with more than minor configuration
changes
�
Capability does exist but must be
completely rebuilt or replaced
The result of this step is a set of ini-
tiatives that serves as the first input
toward an agile roadmap for modern-
ization (see Chart 2).
Step 3: Perform Options
Analysis for Needed
Modernization Initiatives
For each discreet initiative identi-
fied in Step 2, options must be assessed
for achieving the needed change. This
analysis should include:
�
A close examination of where reusing
design, software (code), or other arti-
facts may be possible to accelerate an
implementation—either fromwithin
the enterprise or from another similar
initiative elsewhere in the country
�
Research to identify where capabili-
ties might be purchased off the shelf
�
Analysis to estimate the level of effort
and risks associated with building or
customizing to meet state needs
For each option, a high-level cost
estimate for development and total
cost of ownership should be developed
so agency leadership can have a sense
of the full cost of achieving the future
vision. Once all options have been
established and the requisite infor-
mation summarized, the executive
sponsor(s) must make decisions about
which options to use and an indication
of their potential priority. This will
serve as a key input to the roadmap.
Step 4: Develop a Roadmap
The final step in this recommended
planning process is to develop a clear
roadmap for achieving the vision. The
roadmap should be incremental and
establish clear initiatives to be under-
taken with a specific timeline. The
timeline should allow for “quick wins”
that will help achieve early successes
and build momentum and enthusiasm
for the transformation effort. The
roadmap should be developed consid-
ering the guiding principles established
in Step 1 as well as other factors, such as:
�
Funding:
Deadlines and allow-
ances for federal funding and the
state’s available budget are primary
inputs. Crucial funding dimensions
to consider include maximizing use
of enhanced FFP, the cost allocation
See Modernization on page 50