For anyone who’s unfamiliar with the Phoenix payroll system debacle, I have a rundown in my December 27, 2019 post. Briefly, the Canadian government (led by the newly elected Justin Trudeau and his Liberals) implemented a new pay system for the entire federal civil service in 2016. A disaster from Day 1, the system is still not properly functional as of this writing.
Daniel LeBlanc’s May 16, 2024 article for the Canadian Broadcasting (CBC) news online site gives a bit more detail about the debacle and a proposed remedy,
The federal government is accelerating plans to put the Phoenix public service pay system out of its misery.
Launched in 2016, the system — which cost taxpayers nearly $4 billion — has failed regularly [emphasis mine] to deliver public servants’ paycheques on time, or in the right amounts.
According to the government’s latest tally, more than 300,000 of 425,000 Phoenix transactions had failed to meet service standards as of last month — including 213,000 that were more than a year late.
Alex Benay, the federal official responsible for the file [Associate Deputy Minister of Public Services and Procurement (Enterprise Pay Coordination)], said $135 million set aside in this year’s budget will give a big boost to the development of Dayforce, the system which is expected to replace Phoenix in the coming years.
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Ottawa didn’t make any specific announcement related to Phoenix when the new spending was made public. It’s still a major increase in funding for the Dayforce project, which was launched in 2018 with an average annual budget of $25 million.
Dayforce is a payroll and human resources management system already in use by 6,000 organizations, including the governments of Ontario and California.
The federal government plans to make Dayforce its new pay system in the coming years, after conducting a series of tests that concluded in February [2024?]. Ottawa pays $36 billion a year in salaries to 420,000 people.
Benay struck a cautious note, pointing out that there’s still a lot of work to do before the transition to the new system. But Ottawa has abandoned all hopes of trying to salvage Phoenix for the long term.
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A major problem with Phoenix is that it needs to operate in tandem with more than 30 distinct human resources management systems in various departments and agencies, as well as more than 100 collective bargaining agreements.
A large number of payroll officers are needed to perform different calculations for each department. And when civil servants change departments, Phoenix struggles to overcome a series of technological challenges.
The federal government’s hope is that Dayforce will allow it to rely on a single tool for both payroll and managing employees’ personnel files at all stages, from hiring to retirement.
“We have no intention of disintegrating [the payroll and human resource management systems] a second time and making the same mistake,” Benay said. [Comment: A mistake that should never have been made in the first place. Even the contractor {IBM} warned that Phoenix wasn’t ready when it was implemented.]
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According to Public Services and Procurement Canada, Phoenix initially cost taxpayers $300 million and the federal government has spent another $3.5 billion on it since.
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As it prepares to transition to a new payroll system, the government says it will use artificial intelligence tools [emphasis mine] to clean up the data in the Phoenix system and reduce the number of late payments.
The plan is to introduce Dayforce gradually in several federal departments [that’s what should have happened with Phoenix], so that when Phoenix is finally scrapped, the new system can take off as smoothly as possible.
The Public Service Alliance of Canada said certain compensation rules could be standardized across government to ease the transition to a new pay system. However, it insisted that unions should help design and test the new system.
“If the members don’t suffer, we’re ready to co-operate in setting up a payroll system that works,” said spokesperson Yvon Barrière. “But we need to be certain that the system will work, and that it will not disadvantage our members under collective bargaining agreements.”
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It would have been nice to get more information about the artificial intelligence tools they propose using, especially in light of the many problems associated with those tools. (See my December 29, 2020 posting, “Governments need to tell us when and how they’re using AI (artificial intelligence) algorithms to make decisions.” Also, Associate Deputy Minister of Public Services and Procurement (Enterprise Pay Coordination), Alex Benay is mentioned in the post as he was leaving his job as Canada’s Chief Information Officer, a position created after the Phoenix Pay System debacle.)
So who is Alex Benay?
Since Benay was first mentioned here in a June 19, 2014 posting, “Canada Science and Technology Museums Corporation welcomes Alex Benay as president and chief executive officer (CEO),” I was quite curious as to what he’s been doing since returning to the federal government civil service,
First, there’s the May 11, 2023 Government of Canada news release announcing Mr. Benay’s latest appointment to the civil service,
The Prime Minister, Justin Trudeau, today announced the following changes in the senior ranks of the Public Service:
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Alex Benay, currently Vice-Chair of the National Arts Centre and Senior Partner, Levio Business and Technology, becomes Associate Deputy Minister of Public Services and Procurement (Enterprise Pay Coordination), effective June 26, 2023.
Biographical Notes
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Alex Benay
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If you click on Alex Benay, you’ll find this,
Education
Bachelor of Arts, History, University of Ottawa
Professional Experience
Since April 2023
Senior Partner, Levio Business and Technology [emphasis mine]
Since May 2022
Vice-Chair of the National Arts Centre
2020 – 2022
Global Lead, Government Azure Strategy, Microsoft
2019 – 2020
Partner, KPMG Canada
2017 – 2019
Chief Information Officer, Government of Canada
2014 – 2017
President and Chief Executive Officer, Ingenium Corporation
2011 – 2014
Vice-President, Open Text Corporation
2010 – 2011
Senior Director, Industry Marketing, Open Text Corporation
2009 – 2010
Senior Director, Customer Enablement, Open Text Corporation
2004 – 2009
Director, Foreign Affairs and International Trade Canada
One comment: it seems odd to leave off your master’s degree in your official government of Canada biographical notes. This contrasts somewhat with the Alex Benay profile on Boardroominsiders.com,
Alex Benay
Associate Deputy Minister, Enterprise Pay Coordination, Public Services and Procurement Canada
Government of Canada
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Executive Summary
Alex Benay is an Associate Deputy Minister of Enterprise Pay Coordination for Public Services and Procurement Canada at the Government of Canada, a role to which he was named in June 2023. Most recently, he served as Head of Program Management at Microsoft Corporation. [emphasis mine] Prior to that, Benay was a Partner of Digital and Government Solutions at KPMG Canada and Chief Client Officer at MindBridge Analytics Inc. Before joining MindBridge, Benay was Chief Information Officer of Canada and Deputy Minister at the Treasury Board of Canada Secretariat. He also served as President and Chief Executive Officer at Canada Science and Technology Museum Corporation. Earlier in his career, he held leadership and marketing roles at Open Text Corporation. He holds a BA in History from the University of Ottawa and a Master’s Degree in History from Athabasca University. [emphasis mine].
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Employment History
- Associate Deputy Minister, Enterprise Pay Coordination, Public Services and Procurement Canada, Government of Canada (from 2023)
- Senior Partner, Levio Business and Technology, Levio Conseils Inc. (from 2023) [emphasis mine]
- Head, Program Management, Microsoft Corporation (from 2022 to 2023)
- Global Lead, Government Azure Strategy, Microsoft Corporation (from 2021 to 2022)
- Partner, Digital and Government Solutions, KPMG Canada, KPMG International Limited (from 2019 to 2021)
- Chief Client Officer, MindBridge Analytics Inc. (from 2019 to 2019)
- Deputy Minister, Treasury Board of Canada Secretariat and CIO, Government of Canada (from 2017 to 2019)
- President and CEO, Canada Science and Technology Museum Corporation (from 2014 to 2017)
- VP, Government Affairs and Business Development, Open Text Corporation (from 2011 to 2014)
- Senior Director, Global Industry Marketing, Open Text Corporation (from 2010 to 2011)
- Senior Director, National Customer Enablement, Open Text Corporation (from 2009 to 2010)
- Director, Global Affairs Canada, Government of Canada (from 2006 to 2009)
- Director, Policy, Global Affairs Canada, Government of Canada (from 2004 to 2006)
- Senior Program Manager, Global Affairs Canada, Government of Canada (from 2003 to 2004)
- Manager, Information, Communications and Knowledge Management, Natural Resources Canada, Government of Canada (from 2001 to 2003)
- Information Services Officer, Global Affairs Canada, Government of Canada (from 2000 to 2001)
- Medical Assistant, Canadian Armed Forces, Government of Canada (from 1999 to 2000)
- Archival Assistant, Library and Archives Canada, Government of Canada (from 1998 to 1999)
Comment: Both the government profile and the boardroom profile agree that Benay is a current partner in Levio Business and Technology. This partnership started in April 2023 (govt. profile), a scant two months before his move (?) to his current government position. Consequently, it makes sense that the Boardroom profile lists Benay’s most recent role as “Head of Program Management at Microsoft Corporation.” As noted earlier, there’s the addition of a master’s degree to the Boardroom profile. Let’s see what’s next in an Alex Benay profile on FWD50.com,
Alex Benay (he/him)
Associate Deputy Minister, Enterprise Pay Coordination
Alex Benay became Associate Deputy Minister of Enterprise Pay Coordination in June 2023.
Prior to this appointment, Alex was [emphasis mine] a senior partner with Levio Business and Technology and Vice Chair of the National Arts Centre. From 2020 to 2022, he served as the Global Lead of Government Azure Strategy at Microsoft where he helped governments around the world adopt cloud technologies.
From 2019 to 2020, Alex was a partner with KPMG where he led the digital transformation of governments and Fortune 500 companies in the areas of technology, people and strategy.
Alex was a Deputy Minister at the Treasury Board of Canada Secretariat from 2017 to 2019 where he served as Chief Information Officer. In this role, he oversaw key information technology initiatives in service modernization, legacy system management, good governance, and open and transparent government.
Alex was also the President and Chief Executive Officer of the Canada Science and Technology Museums Corporation (Ingenium) where he oversaw the transformation of the country’s national museums. In addition, he is a former Global Affairs Canada executive.
Alex is the author of 2 books: Canadian Failures and Government Digital. He holds a bachelor of arts in history from the University of Ottawa.
Nothing jumps out other than the past tense used to describe Benay’s partnership at Levio.
Thoughts
The omission of a master’s degree from Benay’s list of educational accomplishments seems odd but inconsequential. The mention of his two month long (?) partnership at Levio is a little more than odd especially with the confusion over his status as a partner (is or was?). Here’s why it seems concerning to me, Levio Business and Technology, from tho company’s homepage,
Levio is a digital native business and technology consulting firm.
As a true partner from start to finish, our goal is a long-lasting transformation that’s right for your business model. We provide a tailored approach, streamlined execution and a commitment to deliver digital transformation ventures that create value and measurable achievements.
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It seems as if Mr Benay’s firm (past or present?) could be a good fit as a contractor for Dayforce as would one or more of his previous employers.
That said, it would be impossible to find anyone with the experience necessary to properly oversee the transition from Phoenix who does not have many connections within the industry. It’s a very incestuous business.
I trust Mr. Benay is aware of and taken steps to deal with a federal government that has a notably poor record with implementing technology and dealing with contractors.
The Canadian federal government and a problem with contractors
Here’s an example of the Canadian federal government’s problem with contractors, from a February 12, 2024 article by Darren Major for CBC news online,
The final cost of the controversial ArriveCan app is impossible to determine due to poor financial record-keeping, a new auditor general report has found.
It is just one of the findings that Canada’s Auditor General Karen Hogan highlighted in a damning report about the pandemic-era tool.
Overall, Hogan found that the Canada Border Services Agency (CBSA), the Public Health Agency of Canada (PHAC) and Public Services and Procurement Canada “repeatedly failed to follow good management practices in the contracting, development and implementation of the ArriveCan application.” [emphasis mine]
“This is probably the first example that I’ve seen such a glaring disregard for some of the most basic and fundamental policies and rules,” Hogan told the House public accounts committee on Monday [February 12, 2024].
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“I have to say I am deeply concerned by what this audit didn’t find,” she told MPs on the committee.
“We didn’t find records to accurately show how much was spent on what, who did the work, or how and why contracting decisions were made — and that paper trail should have existed.”
CBSA said previously the development and operation of the app cost an estimated $54 million.
Hogan estimates the project cost was $59.5 million — but, as the report notes, she was only able to arrive at that figure based on the information available to her.
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CBSA depended heavily on third-party contractors [emphasis mine] to develop the app. The report cites that reliance as a major factor in its ballooning costs.
Hogan’s report suggests that a reduction in the use of outside contractors could have lowered costs and “enhanced value for money.”
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NDP Leader Jagmeet Singh blamed the rise in government outsourcing on both Liberal and Conservative governments.
“This is the result of years of Conservatives and Liberals creating a system that allows wealthy consultants to procure government contracts and make millions in profits at the expense of our professional public service and Canadian taxpayers,” he said in a media statement.
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There is also little documentation to show why or how the biggest contractor — GC Strategies — was chosen for the project. [emphasis mine]
The company is a two-person consulting firm that advertises itself as being able to help companies navigate the government’s procurement process.
GC Strategies was given a sole-source contract in April 2020 despite a lack of evidence that the firm provided a proposal document for the project, [emphasis mine] the report says.
Hogan notes that at least one other firm provided an initial proposal for the same contract.
The report indicates that the auditor general couldn’t determine which government official made the final decision to select GC Strategies for the April 2020 contract.
And Hogan also found that GC Strategies was later involved in developing requirements that were later used for a competitive contract. That contract — valued at $25 million — was awarded to GC Strategies, the report says.
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What you might call a boondoggle from beginning to end.
July 2024 update
A July 10, 2024 article by Emma Weller for CBC news online notes this,
A payroll system for federal workers intended to replace the much-maligned Phoenix platform is still years away from being fully implemented, according to a senior government official.
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At a new conference on Tuesday [July 9, 2024], Alex Benay, associate deputy minister of Public Services and Procurement, said testing began on Phoenix’s replacement, Dayforce, in 2022.
“This is the year that we are building Dayforce as a replacement system for HR and pay and determining if it is a feasible solution for the Government of Canada,” Benay said.
Benay said the switch won’t happen overnight, however, and cautioned it may take years until the new system is fully implemented. In the meantime, Phoenix will remain in use.
“In order to do this well and steadily, there will be a world where we continue to see an IBM Phoenix contract and a Dayforce contract for the foreseeable future in order to make sure that we don’t replicate the mistakes that we did in 2017,” he said.
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When launched in 2016, Phoenix initially cost taxpayers about $300 million. The cost has now ballooned to $3.5 billion.
The federal government expects to spend an additional $936 million over the 2024-2025 fiscal year. Benay said half of that will be allocated to Phoenix while the other half will go toward the transformation to a new system.
Much of the Phoenix costs are directed at managing and reducing a serious backlog of transactions waiting to be processed.
According to the Public Service Pay Centre dashboard, 416,000 transactions were waiting to be processed on June 19 [2024].
Benay said the goal is to process them all by March 2025. To achieve that goal, he said 200 compensation advisers have been specifically tasked with helping resolve those outstanding cases, and they’ll have artificial intelligence (AI) tools at their disposal for support. [emphasis mine]
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Weller’s July 10, 2024 article doesn’t offer any details about the AI tools but she does include comments, which indicate that I’m not the only AI skeptic,
Mixed reaction from unions
Eva Henshaw, acting president of the Professional Institute of the Public Service of Canada (PIPSC) said knowing a new system is in the works gives her members some hope.
“This might be the concrete commitment that we were looking for, but we will have to see,” Henshaw said.
She added that she wants to see greater consultation, and for the unions and their members to be part of the solution.
Henshaw said she remains skeptical of integrating AI into the operations and would like to see a risk plan. [emphasis mine]
“AI in itself may be very helpful and be a lot faster, but we have to make sure that AI doesn’t create other problems for our members,” she noted.
Sharon DeSousa, national president of Public Service Alliance of Canada, agreed and added that the country’s largest employer has failed in its most basic task.
“We live in a world where the principle is simple — you go to work and you get paid,” DeSousa said.
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Hopes and dreams
I’m really hoping that the government has addressed the issues revealed by the Auditor General and that all contracts including those associated with Dayforce will be carefully vetted, that financial records will be properly kept, and that there will be conscientious oversight.
Most of all, I hope Canadian federal employees will finally get some stability with regard to their paycheques. It’s past due.
