Employer Misclassification Predictive Analytics - EMPA

PROJECT MANAGEMENT PLAN
(PMP)

Executive Sponsor – Jason Dean
Business Owner – Roy Padilla
Project Manager – Michael Greene
Date: August 24, 2016

Revision History

1.0 Project Overview

1.1Executive Summary- rationale for the Project

1.2 funding and sources

1.3 constraints

1.4 dependencies

1.5 ASSUMPTIONS

1.6 Initial Project Risks Identified

2.0 Project Authority and Organizational Structure

2.1 Stakeholders

2.2 Project Governance Structure

2.2.1 Describe the organizational structure – Org Chart

2.2.2 Describe the role and members of the project steering committee

2.2.3 Organizational Boundaries, interfaces and responsibilities

2.3 Executive Reporting

3.0 Scope

3.1 Project Objectives

3.1.1 Business Objectives

3.1.2 Technical Objectives

3.2 Project exclusions

3.3 Critical Success Factors

4.0 Project Deliverables and methodology

4.1 Project Management Life Cycle

4.1.1 Project Management Deliverables

4.1.2 Deliverable Acceptance Procedure

4.2 PRODUCT LIFE CYCLE

4.2.1 Technical Strategy

4.2.2 Product and Product Development Deliverables

4.2.3 Deliverable Approval Authority Designations

4.2.4 Deliverable Acceptance Procedure

5.0 Project Work

5.4 Project Team

6.0 Project Management and Controls

6.1 Risk and issue Management

6.2 INDEPENDENT Verification And Validation - Iv&V

6.3 Scope Management Plan

6.3.1 Change Control

6.4 Project Budget Management

6.4.1 Budget Tracking

6.6 PERFORMANCE MEASUREMENT (PROJECT METRICS)

6.6.1 Baselines

6.8 CONFIGURATION MANAGEMENT

6.9 PROCUREMENT MANAGEMENT PLAN

7. 0 Project Close

Revision History

Revision Number / Date / Comment
1.0 / August 8, 2016 / Initial draft for August PCC Meeting
2.0
2.1
2.2

1.0 Project Overview

1.1Executive Summary- rationale for the Project

The federal standard requires NMDWS audit at least 1% of employers annually and find an average of one misclassified worker per audit. There are approximately 45,000 active registered employers. In 2013, DWS performed 563 audits resulting in 462 misclassified workers. NMDWS would like to implement a more data driven approach to prioritize audits and to reduce misclassifications.

1.2 funding and sources

Source / Amount / Associated restrictions / Approvers
Supplemental Budget request grant (USDOL) / $499,970 / fEDERAL us dol GRANT. / NMDWS/USDOL

1.3 constraints

Number / Description
1 / None at this time

1.4 dependencies

  • Mandatory dependencies are dependencies that are inherent to the work being done.
  • D- Discretionary dependencies are dependencies defined by the project management team. This may also encompass particular approaches because a specific sequence of activities is preferred, but not mandatory in the project life cycle.
  • E-External dependencies are dependencies that involve a relationship between project activities and non-project activities such as purchasing/procurement

Number / Description / Type M,D,E
1 / Funding is available / M
2 / Contract Amendment is approved / E
3 / Necessary infrastructure updates or modification will be scheduled in conjunction with project timelines. / D

1.5 ASSUMPTIONS

Number / Description
1 / The EMPA engine will be integrated with UIA
2 / DWS will provide the technical infrastructure hardware and software - application server, database, reporting tools, and remote connectivity required to build and test the technical deployment artifacts as part of this project
3 / DWS will obtain access to any external data that may be required to complete the Services under this Scope of Work.
4 / Business Personnel will actively participate in all business requirements workshops
5 / Business Personnel will be available for follow up meetings regarding the different tasks and deliverables related to Business Implementation
6 / Business personnel will assist in the development and approval of monitoring reports and implementation of Randomized Control Trials (RCTs).
7 / Data security requirements will not restrict use and storage approach

1.6 Initial Project Risks Identified

Risk 1

Description–Resource Availability / Probability: Medium / Impact : Medium
Mitigation Strategy:Project will be assigned a high priority by DWS and appropriate resources will be made available to perform the work per the approved work plan.
Contingency Plan: Additional contract resources will be deployed to the project.

Risk 2

Description–Impact on Tax Rate Reform Redux project / Probability:Low / Impact:Low
Mitigation Strategy: All proposed changes will be thoroughly reviewed before development to ensure that everything complies with concurrent projects
Contingency Plan Not applicable

2.0 Project Authority and Organizational Structure

2.1 Stakeholders

name / Stake in Project / Organization / Title
Celina bussy / Executive sponsor / DWS / secretary
sue anne Athens / executive Sponsor / DWS / cio
JASON DEAN / EXECUTIVE SPONSOR / DWS / DIVISION DIRECTOR
Roy Padilla / Business Owner / DWS / Deputy Director UI
UI business Staff / System User / DWS
Employers / Submit wage and payroll information, classify workers / External

2.2 Project Governance Structure

2.2.1 Describe the organizational structure – Org Chart

2.2.2 Describe the role and members of the project steering committee

The Project Steering Committee will provide oversight to the project effort. They will identify key policy issues and ensure follow through on associated business and regulatory changes. The committee is comprised of the Secretary and Deputy Secretaries representing the DWS executive business, general counsel and public relations. They will receive project status reports throughout the effort.

2.2.3 Organizational Boundaries, interfaces and responsibilities

All changes to the UIA initiated by this project will be reviewed and approved by the DWS Change Control Board. All necessary change request and associated work load for development activities will be managed under the existing release management plan. The PMO will directly manage and review resourcing, scheduling and reporting adherence and mitigate issues as they arise.

2.3 Executive Reporting

Biweekly status reports will be provided in conjunction with milestone status meetings.

3.0 Scope

3.1 Project Objectives

3.1.1 Business Objectives

A key mission for the New Mexico Department of Workforce Solutions (DWS) is to be a business-driven department, understanding the needs of all employers with a focus on being efficient and responsive to the diverse needs of New Mexico’s employers and workforce. The Workforce Transition Services Division (WTSD) is responsible for providing Unemployment Insurance (UI) benefits to New Mexicans who have lost their jobs through no fault of their own and collection of taxes from liable employers to pay those benefits. The Employer Misclassification Predictive Analytics (EMPA) initiative will further this strategic goal by improving the overall efficiency of NMDWS and will result in the reduction of the number of employers misclassifying wages, who are being overlooked by the current audit selection process.

Number / Description
Business Objective 1 / To be an integral part of all economic development and education initiatives
Business Objective 2 / To be efficient and responsive to the diverse needs of New Mexico’s employers and workforce
Business Objective 3 / Deliver targeted messaging designed to educate, inform, and remind employers of their obligation under Unemployment Insurance (UI) Tax law in an effort to realize significant reductions in the need for targeted audits, saving staff time, and enhancing collections to the UI Trust Fund.
Business Objective 4 / Prioritize employer outreach and audit activities to better identify employers who have historically misclassified employees, further reducing the incidence of misclassification, improving efficiency use of staff time and enhance collections to the UI Trust Fund.
Business Objective 5 / Improve the overall efficiency of NMDWS to reduce the number of employers misclassifying wages by 50%.
Business Objective 6 / Create interface with L&I Division to identify employers making cash payments or underreporting wages and 1099 reporting.
Business Objective 7 / Gain access to the GLDEP to identify employers with a high rate of 1099 employees.
Business Objective 8 / Identify employers with two or more blocked claim audits in order to utilize wage claim data to identify misclassification.
Business Objective 9 / Ensure a fair and competitive playing field for all employers
Business Objective 10 / Work with Maryland and Utah, state leaders in field audits, to adopt best practices.

3.1.2 Technical Objectives

Number / Description
Technical Objective 1 / Ensure reuse of existing architecture, specifically the IPPI engine with integration into the UIA
Technical Objective 2 / SECURE ADDITIONAL DATA SOURCES THAT CAN BE SECURELY STORED AND REUSED FOR A RANGE OF PURPOSES

3.2 Project exclusions

This project effort does not include integration with other fraud related tools currently being used by NMDWS that are outside the UIA framework.

3.3 Critical Success Factors

Number / Description
1 / Reduction in EMPLOYER MISCLASSIFICATION by 50%
2 / incorporated work flows that maintain us dol mandated performance measures for timeliness of payments

4.0 Project Deliverables and methodology

4.1 Project Management Life Cycle

Planning and Project Management / Planning
Design Support / Design (Agile)
Application Development / Development (Agile)
Testing / Implementation
Training and Implementation / Implementation
Project Close Out / Close Out
Reporting / Reporting
Phase / Summary of Phase / Key Deliverables
Planning and Project Management / Project organization planning / Project Management Plan for the period of performance to entail the following.
  • Work Breakdown Structure
  • Build Schedule
  • Work Schedule
  • Major milestones
  • Key SDLC documentation and activities.
  • Communication plan
  • Risk Log

Design Support / Implementation and Reporting Design / System design documents detailing the proposed system including the Data Model Design, Treatment Stream Design, and Implementation Report.
Application Development / Agile methodology to develop and deploy the solution. / Technical design and application code development.
Testing / Agile methodology to build, test and review followed by standard UAT / Test planning unit, system, UAT testing and bug fixing
Training and Implementation / Implementation planning, results, and close-out. / CCB reviews, approvals, operational hand off documentation including SOPs
Reporting / Bi-weekly and monthly status reporting / Bi-Weekly Status report meeting and monthly status reports.

4.1.1 Project Management Deliverables

Project Deliverables are work products or artifacts that are driven by the project management methodology requirements and standard project management practices regardless of the product requirements of the project.

Task Item / Sub Tasks / Description
5.1 Planning and Project Management / 5.1.1 Project Management Plan / Contractor will create, maintain, and present a Project Management Plan for the period of performance to entail the following.
  • Work Breakdown Structure
  • Build Schedule
  • Work Schedule
  • Major milestones
  • Key SDLC documentation and activities.
  • Communication plan
  • Risk Log
Contractor will endeavor to submit an updated version of the plan in cases of updates to the plan to the NMDWS CIO by the 1st day of every month.
5.1.2 Organization Structure / Contractor will create an organization structure to assist with managing and monitoring multiple work streams with CESER, NM DWS APPS under a single management structure.
5.1.2 Project Issue Log / Contractor will create an Issue Log to document issues, resolutions, times and dates.
Contractor will post, store and maintain the log electronically to an internal shared network drive or Procuring Agency SharePoint site.
Contractor will present the Issue Log at Bi-Weekly NMDWS status meetings.
5.1.3 Change Management / Contractor will conform to the mutually agreed upon Change Management guidelines as defined in the Project management Plan.
5.2 Design Support / 5.2.1 Modeling Support / Contractor will provide assistance to the implementation team in implementing the predictive models designed and delivered to NMDWS as set forth in the Project Plan.
5.2.2 Treatment Stream Design / Contractor will conduct design sessions to assist with designing treatment streams that use the predictive model outputs to nudge employers and provide educational messaging in an effort to help promote better behavior and reduce misclassification of employees.
Contractor will assist with conducting design sessions for DWS to prioritize audit queues based on the employer misclassification Risk Assessment Result.
Contractor will submit the treatment stream design documents and obtain approval from NM DWS CIO before implementation as set forth in the Project Plan.
5.2.3 Data Model Design / Contractor will provide assistance, as set forth in the Project Plan, related to a data model that includes a mart to enable potential storage data for future expansion from other sources and agencies such as Worker’s Compensation and Tax and Revenue Department.
Contractor will submit the design and obtain approval from NM DWS CIO before implementation.
5.2.4 Implementation Report / Contract will provide a report of design summary and an implementation plan to assist with developing a path towards implementing the predictive models and integrating them with underlying Unemployment Insurance Systems.
5.4 Testing / 5.4.1 Engine Testing / Contractor will perform system testing of the engine against the designed predicative models set forth in task item 5.2 of this SOW.
5.4.2 Treatment Stream Testing / Contractor will assist, to the extent necessary and as set forth in the Project Plan, business and technical teams as appropriate, to perform unit and system testing activities related to the treatment stream functionality set forth in task item 5.2 of this SOW.
Contractor will assist with the user acceptance testing activities as set forth in the Project Plan.
5.5 Training and Implementation / 5.5.1 Training / Contractor will assist with the preparation of materials, as set forth in the Project Plan, for training activities related to the project. NMDWS will conduct any and all necessary training activities.
5.5.2 Production Cut-over / Contractor will assist NM DWS, as set forth in the Project Plan, in deploying engine in NMDWS infrastructure.
Contractor will assist NM DWS, as set forth in the Project Plan, with documentation in deploying treatment stream application code into production.
5.6 Project Close out / 5.6.1 Project Close Out Report / Contractor will provide a project close out report with suggestions on next steps for potential continuous improvement and process to measure the performance of the predictive model.
5.6.2 Lessons Learned / Contractor will support lessons learned review sessions and documentation.
5.7 Reporting / 5.7.1 Bi-weekly Project Status Meeting / Contractor will coordinate, schedule, and prepare materials for Bi-Weekly Project Status meetings for review, approval and acceptance. The materials for the Bi-Weekly Project Status include:
  • Provide a bi-weekly status of the release schedule
  • Identify and present updated task and milestone accomplishments
  • Itemize needs, identify risk and current activities.
  • Define plans for the upcoming two weeks before next meeting.

5.7.2 Monthly Status Report / Contractor will present a monthly status report to NMDWS CIO by the 15th day of each month. Each report will contain the status of each task.

4.1.2Deliverable Acceptance Procedure

All deliverables are reviewed by business owner, technical management and subsequently approved by CIO prior to invoice acceptance.

4.2 PRODUCT LIFE CYCLE

4.2.1 Technical Strategy

The EMPA engine will be incorporated into our existing UIA and be handled within the existing IPPI framework.

4.2.2Product and Product Development Deliverables

The product deliverable will be the EMPAengine and then the associated code related to the targeted release schedule.

Application Development[RD1][MG2] / Predictive Model Implementation Development / Contractor will develop application code, as set forth in the Project Plan, to assist with implementing a predictive model in an effort to detect misclassification of employees (e.g., communication medium such as web services for the unemployment insurance application to integrate with the engine).
Treatment Stream Technical Design / Contractor will design application architecture, as set forth in the Project Plan, to assist with implementing treatment streams approved by NM DWS.
Contractor will submit the application architecture, as set forth in the Project plan, for approval by NM DWS CIO.
Treatment Stream Development / Contractor will assist in developing application code, as set forth in the Project Plan, to implement the treatment streams.

4.2.3 Deliverable Approval Authority Designations

Deliverable Number / Deliverable / Approvers (Who can approve) / Date Approved
1 / EMPA Engine / CCB
2 / UIA release / CCB

4.2.4 Deliverable Acceptance Procedure

Product deliverables will be accepted through the CCB process at NMDWS.

5.0Project Work

  • EMPA Engine Deployment: Implement engine for EMPA in a technology solution to create a risk assessment for the purpose of identifying and reducing potential employer misclassification.
  • UIA Integration: Integrate the EMPA Engine within the IPPIapplication, including configuration of input and output data streams to the engine and design and development of a user interface.
  • Monitor, Measure, Adapt: Monitor the results of the project an ongoing basis, utilizing random control trials to measure the impact of treatment streams and adapting to the most effective strategies.

5.4 Project Team

See org chart above.

Role / Responsibility
Project Management Office (DWS) / Project oversight and support to include receiving project status.
Project Manager (Contractor) / Responsible for delivery of items outlined in SOW, project management plans, project status reporting, project staffing.
Analytics Lead / Oversee analytical team on day-to-day basis. Compile deliverables and report results.
Modeler / Perform analytics, compile deliverables, and report results
Engine Lead / Oversee Engine Development team on day-to-day basis. Compile deliverables and report results.
Engine Developer / Develop engine, perform unit testing.
Business Implementation Lead / Oversee business implementation team on day-to-day basis. Compile deliverables and result results.
Business Analyst. / Perform analysis, compile deliverables, perform testing, report results
UIA Integration Lead / Oversee the integration of the IPPI Engine within UIA, report results
UIA Developer / Perform analysis, develop UIA modifications, unit test, report results
DWS Business Analyst / Assist with analysis, compile deliverables, perform testing, report results
DWS Implementation Team / Perform Implementation tasks to promote code changes to production.
DWS Development Manager / Determine how project fits into overall development tasks and plans. Monitor progress
CCB / Project Oversight/Change Control
Project Sponsor / Setting of overall project goals and objectives
Business Owner / Provide guidance on business implementation strategies; provide business analyst resources, design approval

6.0 Project Management and Controls

6.1 Risk and issue Management