The introduction of the new payroll system comprising of two interfacing systems SAP and Workbrain in Queensland Health (QH) has lead to some major issues which have resulted in financial loss to the system. The new payroll and rostering system is one of the projects in The Corporate Solutions Program, which went live on 14 March 2010, is managed by CorpTech (whose prime contactor was IBM). Earlier, QH had been using the LATTICE payroll and the ESP rostering systems since 1997, which needed to be replaced as it was recognized that it would not be supported by its supplier from July 2008.
The various reasons of the failure of this payroll system include complex award structures, vague governance structure for system implementation, inadequate documentation of business requirements at the commencement of the project, increased time taken to reach Go-Live status, absence of periodic review of the business needs, system and process testing prior to Go-Live had not identified a number of significant implementation risks, critical business readiness activities and practices were not fully developed, business continuity plans were not available for implementation to address any payroll issues as they emerged, key system performance reports for use by CorpTech were not available during the completion of the initial payroll processing, several changes to the payroll administration practices were introduced at the same time as the release of the SAP and WorkBrain systems. The audit declared that the failure of the project was due to the project governance, besides managing relationships with key stakeholders was not effective in ensuring roles and responsibilities were clearly articulated and in ensuring there was clear accountability for the efficient and effective implementation of the system. (Auditor General’s Report, 2010)
Queensland health’s payroll implementation failure produces an immediate and longer term organization impact in terms of affecting on the staff members pay (overpayment or underpayment ) and the financial impact on the organization its self to fix and reimplement the system (auditor General’s Report, 2010)
Governance and its Importance
A system is governed in order to minimize its flaws and to give better results, which can be done by taking possession of the elements like economics, administration and politics while managing a particular system. Clear lines of accountability and roles and responsibilities at the initiation of the project are established to ensure an end to end governance structure. Governance offers a multidisciplinary perspective for classifying important organizational issues, identifying barriers to successful development and sustainability, and facilitating the attainment of goals (Mitchell & Shortell, 2000). Good governance can achieve favorable results and could eradicate corruption in healthcare organizations (World Development Report 2004, Making Services Work for Poor...