PROJ6003 Project Execution & Control

Assessment Case Study

September 2020

Link Project Case Study

The management of information and communication technology enabled (ICT-enabled) projects

at the state, national and international level, in both the private and public sectors, has been the
subject of considerable research and debate over recent years. The consensus is that these
projects are often poorly managed and failures are common.

ICT systems store and communicate information about government business and in many cases
are used to administer front line services to the public. Despite this, many government ICT systems
are dated and lack the required functionality.

Crime statistics are one measure the community uses to judge our relative safety and security.
They show the rate of recorded crime across local government areas or regions, and can highlight
trends such as increases or decreases in types of crimes and how and where they are committed.
The government uses crime statistics as an indicator of the effectiveness of criminal justice
policies, and Victoria Police uses crime statistics to help determine its resourcing needs.

Victoria Police collects, reviews and records information on crimes—and the victims and alleged
offenders involved—in its Law Enforcement Assistance Program (LEAP) database. It is essentially
an online database fully relational that stores information about all crimes brought to the notice
of police as well as family incidents and missing persons. It also includes details on locations and
persons involved. LEAP is a dynamic case management and data storage database designed
primarily for operational policing purposes. Victoria Police update existing records with new
information as it becomes available, and revise records when investigation identifies additional
information. The Central Data Entry Bureau of Victoria Police also amends records when quality
control checks identify inaccurate or incomplete information. The only problem is that LEAP is an
outdated and inefficient ‘green-screen’ system developed in 1992.

Background of the project

Over 350,000 data records were retrieved from LEAP every day by operational members. Since its
conception, numerous interfaces have been developed to support the exchange of data between
LEAP and other Victoria Police systems and other organisations such as Australian Federal Police,
VicRoads and the Department of Justice, making this a very complex system to be replaced.

LEAP operated on obsolete mainframe technology and was driven by a ‘green screen’
presentation requiring keyed entries rather than a graphic presentation. LEAP is out-dated in style,
functionality and operability. Its data was ‘captured’ by electronic data recording (for some crimes)
and the use of voluminous forms completed by police and faxed to a central data entry bureau
(approximately 1200 per day) where full time data entry staff (75) work around the clock keying

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
information into the LEAP system. The backlog was such that it may take days for important crime
information to become visible to other police. The system was burdensome and inefficient.
Maintenance of the LEAP system was also time consuming and costly.

In 2005, after embarrassing leaks from LEAP created public concern as to the system’s efficacy, the
Office of Police Integrity recommended the replacement of LEAP with a force wide computer-
based information system. In an attempt to fully replace the LEAP database, the Link project was
then initiated by the Victoria Police.

In August 2005, the then Premier announced $50 million funding for the replacement of LEAP, to
be rolled out over three years. At the time of the announcement of the funding for the LEAP
replacement no business case had been prepared. It was appreciated by the then Chief
Commissioner that $50 million was insufficient for the project but her view was that the funding
should be viewed as “… a bird in the hand versus two in the bush”. The Executive Director,
Infrastructure and Information Technology of the Victoria Police, Mr Michael Vanderheide
observed on his arrival at Victoria Police that it was thought acceptable for an IT project to run
over budget with no accountability. Later in 2005 the funding for the replacement of LEAP was
increased to $60.5 million.

The Business Case

The Business Information and Technology and Services department (BITS) – later restructured to
the Infrastructure and Information Technology (I&IT) department of Victoria Police – was
established in 2005 to centralise major IT account management, business management and
project implementation across Victoria Police. The Chief Information Officer (CIO), responsible for
BITS for much of this time, held a position at equivalent level to a Deputy Commissioner and was
one of the 26 direct reports to Chief Commissioner Nixon, which advised the Minister of Police.

Victoria Police engaged consultants to prepare, in a very short time, a business case (BC) to
completely replace the LEAP system. This BC was prepared and delivered in February 2006, which
indicated the project would cost $59.48 million over four years, as opposed to the government’s
commitment of $60.5 million. As part of the BC, the project objectives indicated that the
replacement would:

▪ reduce crime and improve community trust;

▪ upgrade police skills in ethical management and data sensitivity;
▪ gather better information and data;
▪ streamline data entry; and
▪ improve security of police data and access.

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
The business case was the subject of a meeting for ‘clarification’ between the consultants and
representatives of Victoria Police on 4 September 2006. The notes of the meeting revealed that
the business case was written to fit the budget and for the writing of suitable messages to confirm
that support. It was noted at this meeting that the business case was not a like-for-like
replacement, that the business case didn’t address key existing issues with LEAP and that the
benefits as outlined in the business case were extremely broad, largely unachievable and
unmeasurable. A major risk to the project that escaped proper scrutiny in the business case was
the difficulty and cost of incorporating into the new system the many IT interfaces developed to
work in conjunction with LEAP.

On 30 May 2007, the steering committee accepted the February 2006 business case subject to a
number of caveats including:
▪ that the adequacy of funding would not be ascertained until more information became
available as to whether the replacement system would be custom built or commercial off
the shelf.
▪ the scope of the LEAP replacement had not been specified in detail within the business
case and the exact scope of the project could not be confirmed.

The caveats demonstrated the inadequacy of the initial business case. Not even the scope of the
replacement project was known. The business case was not updated at all during the project. The
absence of a business case updated with key aspects of project change (i.e. budget, schedule,
scope, risks and contingencies) meant the steering committee remained ignorant of the true net
present value of the project for approximately four years.

The business case also failed to identify measurable benefits to be achieved by the project.
Victoria Police notes from a meeting with the consultant in September 2006 indicated ‘many of
the benefits are not measurable but were written to confirm government support’. For example,
the business case stated that the project would lead to a reduction in crime of five per cent.
However, the consultant later stated this was a ‘big statement’, ‘pretty rough’ and ‘never
measurable’.

1
Procurement & Like-for-like implementation strategy

After a procurement process, Victoria Police entered into a contract with Canadian vendor Niche
2
Technologies in February 2009 to provide a commercial off-the-shelf records management
system, the Niche Records Management System product, which had been successfully

1
In terms of the information stored and the collection method there would be very little change between LEAP as it currently operates and LINK. It was
determined that a ‘like-for-like’ approach would create the smallest scope and make specification more straight-forward.
2
A product that already exists and can be readily procured. Such products are generally cheaper and less risky than developing a new, untested system.

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
implemented by police in many other jurisdictions both in Australia and overseas. Victoria Police
also purchased an Enterprise Service Bus (ESB), which would provide a mechanism for the new
system and other applications that interface with LEAP (such as the VicRoads database) to
exchange information.

However, agencies appear reluctant to acquire and make the most of commercial off-the-shelf
(COTS) systems. This was no different for the Link project. A COTS system was purchased but over
100 changes were made to the base package, which was customised to make it look and feel like
the existing LEAP system. By following this approach, Victoria Police would have its own version
of the COTS system, which could create difficulties in maintaining the system through standard
upgrades.

The business case accepted in May 2007 did not contemplate a like-for-like replacement of LEAP
as it stated that “replace LEAP on a like-for-like basis using modern technologies and architecture
would ignore the major changes in police roles and practices that have occurred and are likely to
occur in the future”. At some point, however, during the procurement process a decision was
taken that required the replacement of LEAP “… in all its current functionality”. The effect of the
decision was to seek a custom built like-for-like solution, which reproduced the functionality of
LEAP. The decision was at odds with the original business case and was at no stage properly
costed, despite the caveat to the business case mentioned in the steering committee minutes of
30 May 2007.

The ‘like-for-like’ strategy resulted in the commercial off-the-shelf product being excessively
customised, eroding the inherent benefits offered by the LEAP replacement product and
increasing costs. More so, this type of system had not been implemented as a ‘like-for-like’
replacement before and the vendor indicated to Victoria Police that the volume and complexity
of implementing a ‘like-for-like’ replacement would be the largest development effort it had
undertaken. The then Executive Director, Information Technology, Victoria Police stated that the
‘like-for-like’ approach did not cause the project’s problems, but the approach ‘turned into a
mistake’ and resulted in a ‘huge opportunity loss’.

The executive sponsor and chair of the steering committee stated that one of the learnings from
the project was that Victoria Police should have re-engineered its business processes to fit the
new system, rather than trying to make the system fit Victoria Police’s processes. The reluctance
to change business processes appears to be driven by a desire not to inconvenience users, even
in the short term, by a change in approach or the look and feel of the product. The approach is
also seen to reduce training and change management costs.

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
Yet, the like-for-like approach can lead to increased project costs and failure to capitalise on the
advancements in technology since the old system was developed. An over-emphasis on
replication of existing processes can result in lost opportunities in terms of making changes to
improve processes, making the most of what the system itself – particularly the benefits offered
by COTS systems – has to offer and minimising immediate and optimising ongoing development
costs. Of course, it is inevitable when developing and implementing new ICT-enabled systems that
changes to proven products will be necessary to meet the requirements of the agency.
Nevertheless, it is essential when considering and implementing these changes that the risks are
clearly identified and articulated and strategies are put in place to mitigate or at least minimise
those risks.

Timeline

Costs & Funding

The Link business case was developed to fit within the funding already announced by the
Government - $60.5 million. The steering committee observed this budget was a simplification of
the true budget cash flow and that the budget would need to be revised when post procurement
planning was complete and revised again after the development of a detailed work plan in
conjunction with the successful vendor. In March 2009, despite having entered a contract with
Niche just a month before, the scope of the work required for implementation remained to be
settled, without any apparent basis the steering committee was advised “… the total project
budget is not expected to change”.

Years later it was identified that the funding was insufficient. There were numerous budget
issues relating to the LINK project not allowed for in costing the project, including:
▪ interface development (including amount for contingency) to cost $30 million (in
addition to the $15.7 million spent for the Enterprise Service Bus (ESB), software that
5

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
provided the platform for interface processing) against the original business case
estimate of $2.4 million for interface costs;
▪ data conversion from LEAP to LINK over $10 million;
▪ training costs were underestimated by as much as $25 million; and
▪ extra costs due to the need to extend the timeframe for deployment.

It was not until late 2009 that the project team realised the business case cost estimates were
significantly deficient and in March 2010, the team identified the project was $80 million under-
funded. By this time, the project had been running for almost four years. While some costs may
not have been identifiable until after a vendor was selected, the requirement for additional
funding should have been identified much earlier by the project team. There were several early
warning signs which should have caused the project team to review the business case:

▪ The consultant had advised that the scope of the business case was written to fit the
budget, rather than a bottom-up requirements analysis of the system, and it was written
over a short period of time (September 2006)

▪ Concerns were raised about the adequacy of funding for the project (December 2006
3
and March 2008). Gateway Reviews recommended the steering committee ‘finalise
scope and budget adequacy’. As part of these reviews, suggestions were made that the
project budget could ‘be validated on receipt of tender responses’.

▪ The steering committee did not endorse the business case until May 2007. Even then, its
endorsement was qualified by stating that the adequacy of funding could not be
ascertained until more information was available on the cost of a replacement system;
and that the scope of LEAP replacement had not been specified in detail within the
business case.

▪ 2008 media reports (prior to Victoria Police signing a contract with the vendor) indicated
the Queensland police force spent twice as much as the Link budget implementing the
same system.

There appears to have been a lack of leadership in that once the project started, there was no
stopping it – despite clearly inadequate funding.

Project Management

Victoria Police did not appoint a single project manager to lead the project, instead appointing a
Business Project Manager (a sworn officer) and a Technical Project Manager with joint
responsibility.

3
The Gateway Review process is an initiative of the Department of Treasury and Finance to provide an independent review of procurement at a key decision
point.

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
One sworn officer fulfilled the role of Business Project Manager from the beginning of 2008 until
project closure. While he had policing experience and knowledge of the business, he had not
managed a large, complex ICT-enabled project before. He said he ‘attended the basic ‘Prince2’
Project management course in either 2006 or 2007’ and believed he was selected for the position
as he had ‘successfully implemented’ a multi-agency project involving Victoria Police.

Victoria Police’s appointment of the officer to such a significant role suggests a failure to
understand the need for the project manager to have project management experience and
preferably, experience with projects of the size and complexity of the project. In fact, project
management was identified as a project risk in the 2006 business case, which stated, ‘Inadequate
project management is a … major contributor to the fact that 60-70% of IT related projects fail to
deliver’.

The Business Project Manager was also the senior responsible officer (SRO) for the project. The
SRO is the project owner, sponsor and champion—with personal accountability and overall
responsibility for the delivery of benefits. The SRO also receives the Gateway Review reports.
Combining the roles of Project Manager and SRO may have diminished the level of scrutiny on
the project.

Additionally, there seems to have a lack of understanding of business processes and old systems
by the project team. There was often a lack of documentation or understanding among staff about
the old systems, including business rules, the meaning of the data collected and any interfaces
with other applications. In the Link project, insufficient planning resulted in a failure by Victoria
Police to identify the number and complexity of the existing LEAP interfaces with other
applications. The costs associated with interfaces were significantly underestimated. Deputy
Commissioner, Kieran Walshe, said that “The integration of old and new technologies is an
extremely complex and time-consuming task - there are close to 200 interfaces with 25 existing
applications that need to be dealt with as part of the change” and that “unfortunately, the scale
and cost of this work was underestimated in the original business case.”

‘Tick-the-box’approach to risk management

While the Link project had a risk register and risk was generally a standing agenda item for
steering committee meetings, insufficient attention was actually given to managing or mitigating
risks. Rather, Victoria Police appear to have approached risk management with a ‘tick-the-box’
mentality – that is, the risk register is in place, risk is on the agenda and this is sufficient. This is
particularly concerning given the high-risk nature of ICT-enabled projects.

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
The risk register, like the business case, must be a living document, which is regularly reviewed
throughout the project to ensure risks – new and existing – are managed.

In the Link Project detailed specific risks in its risk register, but failed to manage them throughout
the project. In this regard, In December 2007, a risk chart was developed for the ‘LINK’ (LEAP
replacement) project. The risk chart was subject of numerous iterations up until 2010 but some
‘high’ risks were not addressed. The March 2008 Link risk register included a high risk that the level
of effort required for systems integration (ensuring that Link and other applications could
communicate) could be greater than expected. However, it was not until late 2009 that the project
team examined in detail the level of integration needed.

The Link business case also identified project management as a project risk and a major
contributor to the failure of 60-70 per cent of ICT-enabled projects. Despite this, Victoria Police
failed to appoint a single, qualified project manager to run the project.

There was no proper analysis of risks which underscores the lack of project management
experience on the steering committee. The risk management plan in reality was not used to
manage risk, and it quickly became out of date. For example, it was not updated to reflect the
risk of cost overrun posed by the lack of any proper costing of the like-for-like decision.

Assumptions and Reflection

The project is not yet suspended and you have been given the responsibility of an external Project
Management consultant to come in and propose options to recover the project.

→ What could be fixed from what has been done before?

→ What are the uncertainties that still surround the project moving forward?

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.
 PROJ6003 Project Execution & Control
Assessment Case Study
September 2020
References:

Australian Bureau of Statistics (2013). LAW ENFORCEMENT ASSISTANCE PROGRAM (LEAP)

VICTORIA POLICE. Retrieved from:
https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/4533.0main+features100062013

Brouwer, G. E. (November, 2011). Own motion investigation into ICT-enabled projects – In

consultation with the Victorian Auditor-General. OMBUDSMAN.

Herrick, C. (April, 2011). Vic Police database project faces $100 million blowout . ComputerWorld.
Retrieved from: https://www.computerworld.com/article/3485553/vic-police-database-project-
faces-100-million-blowout.html

State Services Authority (November, 2011) Inquiry into the command, management and functions
of the senior structure of Victoria Police. State Government of Victoria State Services Authority.

VAGO (September, 2018). Crime Data. Victorian Auditor-General’s Office. Retrieved from:
https://www.audit.vic.gov.au/report/crime-data?section=

* How to cite this: Torrens University Australia (2020). Link Project Case Study. PROJ6003 Project
Execution & Control: Assessment Case Study.
9

* The contents of this Case Study were adapted from the references to suit the requirements of the PROJ6003 subject’s assessments and are the
property of Torrens University Australia.