RTÉ had 'big bang approach' to partly failed IT project
An in-depth review into the circumstances which led to RTÉ's write-down of €3.6m for a partly failed IT system, found the broadcaster had "limited experience" of an enterprise resource planning (ERP) implementation of the scale and complexity of the project.
The review, by business consulting firm EY and commissioned by RTÉ, found the broadcaster also adopted a "big bang approach" to the project.
The IT project set out to replace and integrate a number of outdated finance and HR systems and it was funded from the proceeds of a land sale in 2017.
The EY review from 22 March 2023, which was released in response to a Freedom of Information request from RTÉ's This Week programme, relates to the write-down as revealed by The Currency at the end of April.
The broadcaster said that details of impairments related to the project were included in RTÉ's annual accounts 2020 and 2021 and "were €1,869,750 and €1,188,534 respectively".
The ERP ultimately delivered an upgrade to the finance system but failed to deliver on the HR overhaul plan.
The EY report is called a "Lessons learnt review" and details a wide range of issues with the ERP across ten principal categories, called "lessons identified".
It includes recommendations in response to each category.
The review was ultimately presented to the RTÉ Board's Audit and Risk Committee on 20 April 2023 and minutes from the meeting reference EY noting that there was "a theme of over promising and under delivering" with the project.
Some of the issues examined in the review relate to the original business case, asking if it was "grounded in reality and tightly managed".
In the review, EY found that the original business case document "did not provide the rationale" for a strong preference for an integrated solution to combine HR and finance systems as opposed to standalone solutions.
Questions raised in relation to management of projects - EY
Other questions raised were in relation to the management of the projects, including questions such as was there "sufficient project governance in place" and querying "effective management" of all the contractors involved.
The review questioned a number of aspects of the project management, stating that there were three project sponsors identified, but no single primary owner and that the project's steering committee "did not appear to consistently exercise its authority" over initiation and design decisions when delays were being reported.
RTÉ's adoption of a "big bang" approach for both HR and Finance systems roll out led to a recommendation that "greater consideration" should have been given to the complexity and risk profile of this programme, and more in-depth discussions should have been had with the steering committee before a final decision was made.
Key roles with the "appropriate skills and capacity" were not made available in sufficient numbers, it also said.
Pre-agreed milestones were continuously missed by the vendors "without recovery or repercussions" during the design phase.
There were also questions raised over the diligence during the vendor selection process, as it appears to have been "inadequate" as subsequent investigations by RTÉ indicated that vendors "had limited experience in HR systems".
It also stated that there was "no evidence provided" to suggest that a performance management framework was in place.
In terms of budget management, the review found that the steering committee made little reference to budgetary matters and that a "decision log does not appear to have been created", so there was no clear record provided of decisions made along the way.
EY also found issues with the business requirements capability for the HR system in particular, as "complex requirements such as headcount reporting" were flagged by HR as "critical" but the vendor continued to postpone delivery of this, and testing went ahead in spite of this non-delivery.
The FOI details submitted by This Week also sought minutes from the meeting when the final EY review was presented to the RTÉ Board's Audit and Risk Committee (ARC) on 20 April 2023 and minutes from the subsequent RTÉ Board at its meeting on 27 April 2023.
At the ARC meeting, EY noted that this was "a complex project", with a "complicated project management team".
EY told ARC that "quality was not managed carefully nor reported correctly" and that the "reporting of difficulties to the Steering group was 'substandard'".
The minutes from the RTÉ Board on 27 April 2023 include a reference to RTÉ's former chief financial officer Richard Collins and updating the committee on the "implementation and transition" of the finance system to the new ERP system.
The minutes show that the ARC chair Anne O'Leary noted the presentation of the EY review and that "there were issues around the selection of the vendor", and their ability to deliver and a skills gap.
The ARC asked that lessons from the project be discussed at the executive board.
In a response to the FOI, RTÉ told This Week, that the corporate governance reforms introduced over the past 18 months are "designed to mitigate against" the risk of the recurrence of a range of issues relating to the ERP project.
The broadcaster also said that the review "does not analyse the financial details" of the project but, rather, "the reasons for the delay and non-delivery of parts of it" and that it was primarily a report "to help RTÉ learn from the project management".
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RTÉ News
11 hours ago
- RTÉ News
RTÉ had 'big bang approach' to partly failed IT project
An in-depth review into the circumstances which led to RTÉ's write-down of €3.6m for a partly failed IT system, found the broadcaster had "limited experience" of an enterprise resource planning (ERP) implementation of the scale and complexity of the project. The review, by business consulting firm EY and commissioned by RTÉ, found the broadcaster also adopted a "big bang approach" to the project. The IT project set out to replace and integrate a number of outdated finance and HR systems and it was funded from the proceeds of a land sale in 2017. The EY review from 22 March 2023, which was released in response to a Freedom of Information request from RTÉ's This Week programme, relates to the write-down as revealed by The Currency at the end of April. The broadcaster said that details of impairments related to the project were included in RTÉ's annual accounts 2020 and 2021 and "were €1,869,750 and €1,188,534 respectively". The ERP ultimately delivered an upgrade to the finance system but failed to deliver on the HR overhaul plan. The EY report is called a "Lessons learnt review" and details a wide range of issues with the ERP across ten principal categories, called "lessons identified". It includes recommendations in response to each category. The review was ultimately presented to the RTÉ Board's Audit and Risk Committee on 20 April 2023 and minutes from the meeting reference EY noting that there was "a theme of over promising and under delivering" with the project. Some of the issues examined in the review relate to the original business case, asking if it was "grounded in reality and tightly managed". In the review, EY found that the original business case document "did not provide the rationale" for a strong preference for an integrated solution to combine HR and finance systems as opposed to standalone solutions. Questions raised in relation to management of projects - EY Other questions raised were in relation to the management of the projects, including questions such as was there "sufficient project governance in place" and querying "effective management" of all the contractors involved. The review questioned a number of aspects of the project management, stating that there were three project sponsors identified, but no single primary owner and that the project's steering committee "did not appear to consistently exercise its authority" over initiation and design decisions when delays were being reported. RTÉ's adoption of a "big bang" approach for both HR and Finance systems roll out led to a recommendation that "greater consideration" should have been given to the complexity and risk profile of this programme, and more in-depth discussions should have been had with the steering committee before a final decision was made. Key roles with the "appropriate skills and capacity" were not made available in sufficient numbers, it also said. Pre-agreed milestones were continuously missed by the vendors "without recovery or repercussions" during the design phase. There were also questions raised over the diligence during the vendor selection process, as it appears to have been "inadequate" as subsequent investigations by RTÉ indicated that vendors "had limited experience in HR systems". It also stated that there was "no evidence provided" to suggest that a performance management framework was in place. In terms of budget management, the review found that the steering committee made little reference to budgetary matters and that a "decision log does not appear to have been created", so there was no clear record provided of decisions made along the way. EY also found issues with the business requirements capability for the HR system in particular, as "complex requirements such as headcount reporting" were flagged by HR as "critical" but the vendor continued to postpone delivery of this, and testing went ahead in spite of this non-delivery. The FOI details submitted by This Week also sought minutes from the meeting when the final EY review was presented to the RTÉ Board's Audit and Risk Committee (ARC) on 20 April 2023 and minutes from the subsequent RTÉ Board at its meeting on 27 April 2023. At the ARC meeting, EY noted that this was "a complex project", with a "complicated project management team". EY told ARC that "quality was not managed carefully nor reported correctly" and that the "reporting of difficulties to the Steering group was 'substandard'". The minutes from the RTÉ Board on 27 April 2023 include a reference to RTÉ's former chief financial officer Richard Collins and updating the committee on the "implementation and transition" of the finance system to the new ERP system. The minutes show that the ARC chair Anne O'Leary noted the presentation of the EY review and that "there were issues around the selection of the vendor", and their ability to deliver and a skills gap. The ARC asked that lessons from the project be discussed at the executive board. In a response to the FOI, RTÉ told This Week, that the corporate governance reforms introduced over the past 18 months are "designed to mitigate against" the risk of the recurrence of a range of issues relating to the ERP project. The broadcaster also said that the review "does not analyse the financial details" of the project but, rather, "the reasons for the delay and non-delivery of parts of it" and that it was primarily a report "to help RTÉ learn from the project management".
Irish Times
2 days ago
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Michael Carey steps down as chair of Enterprise Ireland and Housing Agency
Businessman Michael Carey has stepped down from his roles as chairman of both Enterprise Ireland and the Housing Agency . This follows recent media reports highlighting the fact that his company, biscuit maker East Coast Bakehouse , where he is a major shareholder and executive chairman, is late in filing its accounts to the Companies Registration Office as required by law. He took the decision to avoid any embarrassment for the ministers involved, James Browne in housing and Peter Burke in the Department of Enterprise. In a statement, Mr Carey said: 'This has occurred due to management administrative errors. The delay has been exacerbated by an unanticipated need for a decision by our board to change our auditors. READ MORE 'There is no suggestion of any financial issues at the company; the accounts for these periods are completed and the fully audited accounts are expected to be filed in the CRO by early July.' It is understood that Big Four accounting firm EY was recently appointed as the company's auditor. [ Creating billion-euro businesses with global scale a key goal for new Enterprise Ireland chairman Opens in new window ] Founded in 2016, East Coast Bakehouse employs 100 people at its manufacturing facility in Drogheda, Co Louth. Mr Carey said the business was 'growing rapidly' and has recently completed a successful fundraising round securing €5 million in equity. 'Following this successful fundraising and a recent management restructure, I am returning full time to the business as chief executive to lead its next phase of scaling,' he said. Mr Carey acknowledged that the late filing of East Coast Bakehouse's accounts could be a distraction for the agencies. 'I accept personal responsibility for the failure of the business to comply with this corporate governance requirement and the heightened requirement to fully comply, as chairman of a number of state boards. 'A late filing fee will be paid as appropriate and actions have been taken to avoid any future reoccurrence. Will rent reform make building apartments viable? Listen | 40:12 'In order to avoid embarrassment to the ministers and any distraction from the crucially important jobs undertaken by these two agencies, I will step aside from these roles with immediate effect.' 'I would like to thank the respective Ministers and their teams, the board members and dedicated executive leadership teams of these agencies for their support over the past number of years and wish them well in their future continued progress,' he said. Mr Carey noted that the two positions were unpaid with no expenses drawn. He was appointed as chairman of The Housing Agency in 2018 by then Minister for Housing Eoghan Murphy and reappointed for a second term by Minister Darragh O'Brian in 2023. His term was due to end in 2028. He was appointed as chairman of Enterprise Ireland by then Minister for Enterprise Simon Coveney in 2023, and his term was due to end in 2028. He was previously chairman at Bord Bia from 2011 until 2017. Enterprise Ireland and the Housing Agency have been contacted for comment.
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3 days ago
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Gable-fronted Victorian on 1.3 acres once home to world's first female stockbroker
Asking price: €2.95m Agent: Sherry FitzGerald (01) 2894386 'Sell in May and go away' has long been the seasonal steer from the stock trading floors. The mantra among portfolio managers and dealers in equities points to summer as the historically weak period for the market. Not so for the property market though, with the early year sales season pushing on resolutely to the end of June and into July. New to market, for example, is Trentham: a six-bedroom Victorian detached property on 1.3 acres which was, for a time, the family home of Oonah Keogh, the world's first female stockbroker. The legendary Keogh's trailblazing legacy long ran under the radar, until her story was uncovered in Herstory: Ireland's Epic Women, a six-part documentary aired by RTÉ in 2020. Oonah joined the Irish Stock Market as a licensed trader on the floor in 1925, making her the world's first female trader. She was living at Trentham when she achieved this – her family owned the house between 1915 and 1930. Having studied art at London's Metropolitan School following a secondary education in Dublin's Alexandra College, and a period spent travelling, Keogh applied to be a member of the Dublin Stock Exchange, having been taught the mechanics of market trading by her father. At the time, there was nothing in the constitution of the relatively new Irish Free State (which purported to guarantee equal rights for women) to bar her on gender grounds. However, she met with some resistance. As Oonah possessed the requisite wealth, education and references (including one from a government minister), a seemingly reluctant stock exchange voted to accept her after considerable debate, and she remained a member for 14 years. ADVERTISEMENT It would be another 42 years until Muriel Siebert began trading on the New York Stock Exchange in 1967, becoming the world's second licensed female stockbroker. Though she may have been treated as a professional equal under the constitution, socially it was a different story for Oonah Keogh. 'One of the disadvantages in those days was that women did not socialise with men in lounges of pubs,' she said in a 1971 interview. 'When the men retired to Jurys to relax after transacting business, I could not accompany them… And even when I went to the races with my father, it was the same. He would go to the bar for a drink, I would have to slip off for afternoon tea.' Keogh also turned her hand to property development. After marrying ex-pat Russian architect and designer Bayan Giltsoff in 1933, the couple settled in England and went into building mock-Tudor houses, before moving back to Kilquade in Co Wicklow in the late 1940s, where they developed the distinctive housing scheme that became known as 'The Russian Village'. These days, Trentham belongs to Mary Cummins and her businessman husband Paul, who have been there since 1991. The mostly granite built, gable-fronted house has almost 5,000 sq ft of living accommodation. The couple were attracted by the regal frontage and the sheer amount of space inside. Trentham was constructed by John Bentley of the Bentley brothers, one of the original developers of the Foxrock suburb. 'We redid the kitchen,' Cummins says. 'We re-plastered walls and put in new bathrooms, and we refurbished all the windows. 'We didn't carry out any big structural changes, but we did knock a wall from the kitchen to lead into the garden because there were pantries and what have you there.' The improvements the Cumminses made to the house were supervised by architects Paul Brazil and Gillian Murphy. As a result of the renovation, Cummins says the kitchen space is particularly suited to entertaining. 'The back of the house comes into its own in summer, while those at the front of the house have a cosiness about them in the winter.' Some of her most treasured memories will be her and her husband's 40th birthday parties there, as well as daughter Ali's communion and 21st. 'Ali and her friends all loved to come back here on St Stephen's Day after the race meeting at Leopardstown,' Cummins says. The facade of several gables of varying scale has a storm porch with a notable stained-glass panelled entrance. On the ground floor is a guest bathroom, drawing room, dining room, back hallway, living room, conservatory and kitchen/ breakfast room. The main living rooms all have 12ft ceilings. The conservatory has French doors connecting to a patio out back, as does the kitchen. In the back garden is what they call the 'third garden', a sort of secret garden that was formerly the site of an outdoor swimming pool which now has a pond, rockery and patio area. The former pool house now accommodates a toilet, wash hand basin and storage. Upstairs, the master bedroom suite runs from the back to the front of the house, with a dressing room and an en suite kitted out in marble, with a Villeroy & Boch bath. There are three other bedrooms on this floor, with a fifth, en suite bedroom on the second floor. There is also a floored attic space with under-eaves storage, a detached garage and several sheds. The family have already secured alternative accommodation in the neighbourhood. 'I will definitely miss the space,' says Cummins. Sherry FitzGerald will take stock of an offer of €2.95m for this home with history.
