NZ Govt CIO resigns
April 2nd, 2009 at 3:26 pm by David FarrarComputerworld reports that Laurence Millar, the NZ Government Chief Information Officer, following the Walter Report into contracting between the SSC and Voco for the Government Shared Network.
The report found there was no deliberate wrongdoing or improper behaviour, but that procedures were not followed adequately and it shouldnot have been a closed tender.
I have a lot of respect for Laurence Millar, and his departure is a loss. Plus it is to his credit that he has resigned to accept responsibility for the problems. This is something that has been all too rare. Laurence has said:
The material details a number of areas where the project was not managed to the standard that New Zealanders’ would expect for a project of this size. As sponsor of the GSN I accept full accountability, and advised the Commissioner of that when I offered my resignation, which he has accepted.
“Mr Walter’s report confirms that there are no instances of any lapse of personal integrity, which is of fundamental importance to me personally and for the State Services Commission. The reports also comment on the challenges faced by the project and the commitment from individuals working on the project in responding to these challenges.
“I joined SSC from the private sector in March 2004, and have been involved in a wide range of successful initiatives, and been privileged to have worked with outstanding individuals and teams across New Zealand’s State Services.
“Along the way, I have taken some risks and made some mistakes. I have learned from these experiences and have used them to improve the way that we use ICT. I think the State Services is in better shape as a result of my contribution over the last five years.
I beleive it is. There have been many good initiatives in that time. But kudos to both Laurence, and his boss Ian Rennie, for this display of accountability for when things go wrong.

April 2nd, 2009 at 3:35 pm
Yes – kudos. I have worked with Laurence in the past and can attest to his excellent character.
Vote:April 2nd, 2009 at 4:13 pm
Would he mind terribly popping into Corrections HO before he goes. Some of his ethics might rub off.
Why is it that the good operators are also the ethical ones? coincidence?
Vote:April 2nd, 2009 at 4:44 pm
Suddenly John Key , who promised ‘high standards’ of accountability from his ministers before the election merely says Worth has met the ‘standard’ over his business interests conflicts- not that Key was any better during his time looking after the shadow transport portfolio and dealing in Tranz Rail shares.
[DPF: off topic totally 10 demerits]
Vote:April 2nd, 2009 at 4:54 pm
careful jacob van hartog. blatant trolling like that will earn you more demerits when DPF visits.
Exactly how does your bile-filled I-hate-Key comment related to the highly ethical ethical behaviour of Millar resigning?
Vote:April 2nd, 2009 at 4:57 pm
What CraigM said – perhaps Mr Millar and Barry Matthews could meet for a coffee and a heart-to-heart some time.
Vote:April 2nd, 2009 at 6:06 pm
I work in IT and there are plenty of circumstances where not going out to tender is fine and, frankly, that does not appear to be the issue why it was a disaster in this case. The industry is that small that at meetings with a new client or dealing with a different vendor it turns out 2/3rds of the room have worked with each other before and spend the 1st 10 minutes working out what everyone is doing at this point. I certainly would be incapable of listing every professional dealing I’ve had in the last 20 years, if asked and would probably have had dealings with every major vendor or some of their employees or contractors.
There is a case for bringing in previous successful IT relationships in to a senior role as IT projects are very risky and despite what one might think with the huge $’s spent success is not the norm. So, if you know a vendor who has successfully delivered in the past it’s fine to bring that relationship in to a new role so long as it’s all clear and above board.
Many of the government tenders are pre-stacked anyway. The department in question has a preference but will go through (be forced by the rules) an expensive process and get their initial choice after wasting lots of money, including the vendors. They don’t even seem to save money in the process as we all know the real cost of an IT project is not the original contract unless it’s properly managed. I no longer respond to government tenders unless I know the tenderer is fed up with the incumbent or I have an existing relationship – so the whole hurrah about the potential conflict of interest is in the scheme of things a joke.
However, reading the report (assuming it’s reasonably accurate) it’s a typical government IT mess. The language is neutral but it’s clearly a major screw up – the basic concept was flawed even – it was much too brave, risky, complex etc and commercially was unlikely to work and even the report calls it “first of a kind” – it’s a golden rule in IT never be 1st unless you absolutely have to.
If we read on the management come across as a major joke; very poor commercial management and Voco were practically given a license to print money – T&M for $7.5m where the government was giving huge control to their vendor. I can see this happening as if the client cannot fulfil their role properly better vendors do tend to try and fill the gap out of self preservation – but a total project budget of $30m+, budget blowouts over 5 years, ending the project before it’s complete (standard trick that in IT). With that sort of spend and all these signals Laurence would have got the boot in the commercial world for not dealing to it, I believe. I’ve seen it happen regularly if this sort of debacle occurs.
Nice of Laurence to bite the bullet but he did so with good reason I believe. Good on him. To be fair to him I would never take a similar role in the government as I believe you’re almost destined to fail unless you are supremely political and it looks like he was handed a poisoned chalice in an unworkable initiative from a business sense.
Vote:April 2nd, 2009 at 8:40 pm
Laurence is extremely well respected and regarded, and taking responsibility for his actions in this way has only served to increase my respect for him.
Regardless of this debacle, he will be sorely missed. We lost one of the good ones today.
Vote:April 2nd, 2009 at 8:53 pm
“Laurence is extremely well respected and regarded”
PaulM I get that impression from several postings and I never had direct dealings with him at DSW or his other roles (and I haven’t checked with my contacts) so cannot comment. He’s certainly unusual and to be respected for walking the plank.
…….but can anyone shine a light on why the project itself was such a debacle?
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