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DOI ITIM Maturity Framework

Capital Planning

Working Team Meeting

October 25, 2006

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• Identifies and organizes 13 processes that are critical for successful management of investments.

• The framework provides three key capabilities:• Rigorous, standardized tool for internal and external evaluations

of an agency’s IT investment management process; • Consistent and comprehensible mechanism for reporting the

results of these assessments to agency executives, the Congress, and other interested parties; and

• Road map that agencies can use for improving their investment management processes.

What is the GAO ITIM Maturity Framework?

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Framework requires integration with other key

processes: • Strategic Planning• project Management• Enterprise Architecture (EA) management• Human capital management• Software and system acquisition management.

Integration Requirements

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• Achievement of Stage 3 is DOI GPRA GoalThe 1993 Government Performance and Results Act (GPRA or the Results Act) introduced the concept of performance management to government. This important law required strategic and performance planning. It required agencies to set annual goals and then report annually on the extent to which they were achieving their goals.

• DOI Expectations– 70% of Key Practices by end of FY 2007– 100% of Key Practices by end of FY 2008

Achievement of Stage 3 Maturity at DOI

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GAO ITIM Maturity Framework Stages

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1) Defining the Portfolio Criteria

• Developing quantitative and qualitative factors to compare and select projects for the investment portfolio.

• Purpose: To ensure that the organization develops and maintains IT portfolio selection criteria that support its mission, organizational strategies, and business priorities.

• Organizational commitments:– The organization has documented policies and procedures for creating and

modifying IT portfolio selection criteria.– Responsibility is assigned to an individual or group for managing the

development and modification of the IT portfolio selection criteria.• Activities:

– The enterprise-wide investment board approves the core IT portfolio selection criteria, based on the organization's mission, goals, strategies, and priorities.

– Project management personnel and other stakeholders are aware of the portfolio selection criteria.

– The enterprise-wide investment board regularly reviews the IT portfolio selection criteria, using cumulative experience and event-driven data, and modifies the criteria as appropriate.

Stage 3 Maturity Criteria

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2) Creating the Portfolio Criteria

• Process of comparing worthwhile investments and then combining the investments selected into a funded portfolio.

• Purpose: To ensure that IT investments are analyzed according to the organization's portfolio selection criteria and to ensure that an optimal IT investment portfolio with manageable risks and returns is selected and funded.

• Organizational commitments:– The organization has documented policies and procedures for analyzing,

selecting, and maintaining the investment portfolio.• Activities:

– Each IT investment board examines the mix of new and ongoing investments and their respective data and analyses and selects investments for funding.

– Each investment board approves or modifies the performance expectations for the IT investments it has selected.

– Information used to select, control, and evaluate the portfolio is captured and maintained for future reference.

Stage 3 Maturity Criteria - continued

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3) Evaluating the Portfolio

• Process that builds upon the Providing Investment Oversight critical process from Stage 2 by adding the element of portfolio performance to the organization’s control process activities

• Purpose: To review the performance of the organization's investment portfolio(s) at agreed-upon intervals and to adjust the allocation of resources among investments as necessary.

• Organizational commitments:The organization has documented policies and procedures for reviewing, evaluating, and improving the performance of its portfolio(s).

• Activities:– Data on performance of the IT portfolio are defined and collected

consistent with portfolio performance criteria.– Adjustments to the IT investment portfolio are executed in response to

actual portfolio performance

Stage 3 Maturity Criteria - continued

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4) Conducting Post-Implementation Reviews

• The PIR is conducted to – Examine differences between estimated and actual investment costs and

benefits and possible ramifications for unplanned funding needs in the future and – Extract “lessons learned” about the investment selection and control processes

that can be used as the basis for management improvements. • Purpose: To compare the results of recently implemented investments with the

expectations that were set for them and to develop a set of lessons learned from these reviews.

• Organizational commitments:– The organization has documented policies and procedures for conducting PIRs.

• Activities:– The investment board identifies which projects will have a PIR conducted.– Quantitative and qualitative investment data are collected, evaluated for

reliability, and analyzed during the PIR.– Lessons learned and recommendations for improving the investment process are

developed during the PIR, documented, and then distributed to all stakeholders.

Stage 3 Maturity Criteria - continued

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• What are the most significant challenges that each bureau faces in achieving Stage 3 maturity?

• What key practices are most challenging to implement?

• How can the Department help each bureau address these challenges?

• What do you need from your Bureau to address these challenges?

CPWT Brainstorming

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• Three Options for DOI to Consider:• Independent assessment by

contractors

• Department Assessment

• Independent assessment by peer team

Validation of Achievement of Stage 3

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• Pros:– Less time by Government staff– Validation would be independent – outside source– Thoroughly documented results

• Cons:– Cost for funding contract support. – Staff time to coordinate with contracting staff– CPIC Coordinators still have to evaluate work product

and facilitate data collection– Audit-like report

Option One – Independent Contractor Assessment

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• Pros:– In-depth knowledge of DOI processes and

procedures– Cost effective– Demonstrates Department’s commitment to

achieving goal

• Cons:– Constrained DOI CPIC Resources.– Bureau / Department tension – Department

“judging” performance of bureau. – Validation would not be totally independent

Option Two – Department Assessment

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• Pros:– CPIC Coordinators would have greater opportunity

to learn about other bureau’s processes.– Cost effective.– Minimizes confrontation & promotes collaboration – Improved understanding on overall Department

processes and other IT portfolios.• Cons:

– Requires CPIC Coordinators to take on additional responsibility

– Some training time commitment – Validations would not be totally independent

Option Three – Independent Peer Assessment

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• Format for Review– CPIC volunteers, teams of five to seven– Develop process/methodology for

conducting peer assessments (November/December)

– One bureau per quarter in order to spread out time-commitment

– Start in FY 2007 2nd Quarter

DOI OCIO Preference: Independent Peer Review Team

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• DOI and the bureaus need to partner and work together to meet ITIM Maturity Goals.

• Achievement of Stage 3 maturity is a GPRA goal

• Achievement of Stage 3 helps us better serve our customers

Closing Thoughts