Capital Planning and Investment Control Course 1.01

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Capital Planning and Investment ControlCourse
1.01
IT Investment Management (ITIM)

• Presented to the DOI IRB
• February 16th, 2005
• Cyndy Anderson, PMP
• Acting Chief Portfolio Management Division

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What Is CPIC?

• What it is not
• An exercise in paperwork
• Something we do to check off a box on a scorecard
• A four letter word
• What it is
• A systematic way of selecting the right mix of
  investments to meet goals and then managing those
  investments to ensure success.

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• Change to a caterpillar is death

But to its maker, is a new life.
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Legislative Direction

• Chief Financial Officer Act of 1990
• Government Performance and Results Act of 1993
• Federal Acquisition Streamlining Act of 1994
• Paperwork Reduction Act of 1995
• Clinger-Cohen Act of 1996
• Government Paperwork Elimination Act of 1998
• Federal Information Security Management Act
• E-Gov Act of 2002

• The Head of each executive agency shall
  design and implement in the executive agency a
  process for maximizing the value and assessing
  and managing the risk of the information
  technology acquisitions of the executive agency.
• Clinger-Cohen Act

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Circulars, Manual Chapters, Maturity Models

• OMB A-11 Provide a full and accurate accounting
  of Major and Non-major IT investments
• Section 53
• Section 300
• OMB A-130 Use Capital Planning and Investment
  Control process
• GAO IT Investment Management Framework
• Departmental Manuals
• 375 DM 6, Information Resources Life Cycle
  Management, 1989
• 375 DM 7, Benefit/Cost Analysis in Support of IRM
  Decision making, 1993
• 376 DM 4, Information Technology Investments,
  1996
• DOI Capital Planning and Investment Control
  Guide, February 2005

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GAO IT Investment Management Stages
Stage 5 Leveraging IT for Strategic Outcomes
Stage 4 Improving the Investment Process
Stage 3 Developing a Complete Investment Portfolio
Stage 2 Building the Investment Foundation
Stage 1 Creating an Investment Awareness
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Key Decision Makers

• DOI CIO
• Secretarys delegated agent for IT investments
• DOI Investment Review Board
• Manage DOI portfolio (select, control, evaluate)
• Define and refine Select decision criteria
• Make investment decisions such as Approve,
  disapprove, continue as is, modify, or terminate,
  for Departmental or bureau cross-cutting IT
  investment proposals or systems.
• Define and implement the DOI IT investment
  governance process
• Bureau Investment Review Boards
• Manage Bureau portfolio (select, control,
  evaluate)
• Manage project management deficiencies
• Approve, disapprove final investment decisions

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IRB Roles and Purpose

• Investment Review Board (IRB) The governing and
  approval body responsible for ensuring that
  proposed investments meet DOI strategic,
  business, and technical objectives, and manages
  the overall IT portfolio. The IRB reviews,
  recommends decisions, and issues guidance, on the
  implementation of recommendations contained in
  Modernization Blueprints for information
  technology (IT) lines of business.
• From the IRB Charter
• Purpose The purpose is to establish the Board as
  the forum for collaborative governance of
  E-Government and IT within the Department,
  bringing together business and IT executives from
  Interiors E-Government Team and Information
  Technology Management Council.

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• IT is not a separate function its woven into
  everything we do.
• Mr. Paul Hoffman at the OCIO Retreat in
  Shepherdstown, WV, January 2005

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IRB Responsibilities

• Reviews Bureau IRB decisions and considers the
  impact those decisions have to the overall DOI IT
  portfolio.
• To review and approve/disapprove all Departmental
  or bureau cross-cutting system IT investment
  proposals greater than 5 Million total life
  cycle all sensitive systems, and all
  multi-bureau/agency systems.
• To assure bureaus/offices have an IT investment
  review process for bureau/office specific IT
  investments.
• To manage the IT portfolio for the Department.

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Responsibilities (cont.)

• To adopt common approaches throughout the DOI in
  responding to E-Government and IT-related issues
  or requirements.
• To influence the development of Departmental
  budget requirements involving activities
  fulfilling the requirements of the Clinger-Cohen
  Act of 1996 (Public Law 104-106).
• To assure best practices are identified and
  implemented within the Department.
• To review and approve the Department and bureau
  or office requests for funding that involve data
  collection in accordance with the requirement to
  adhere to established standards.
• To serve as an arbitrator among members regarding
  IT investments should the need arise.

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Major IT Investments (meet at least one of the
following criteria)

• Any investment previously reported to OMB
• 5M annual cost or gt 35M lifecycle cost
• Importance to the mission or its significant role
  in administration of programs, finances,
  property, or other resources
• Is an integral part of the Departments
  modernization blueprint (EA)
• Mandated by legislation or executive order, or
  identified by the Secretary as critical
• All financial systems with an annual cost greater
  than 500,000.
• High risk as determined by OMB, GAO, Congress and
  or the CIO.
• Directly Supports the Presidents Management
  Agenda Items of high executive visibility
• E-Government, Departmental, cross-cutting (across
  more than one office or Bureau)
• Links to the first two layers of the FEA. (This
  is meant to imply the first two layers of the
  BRM Services to Citizens and Mode of Delivery

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CPIC Process Entry/Exit Criteria
Entry Criteria Exit Criteria IRB
Approved MNS Charter 300-1
Full Exhibit 300 Project Plan
Entry Criteria Concept   Exit Criteria Mission
Needs Statement, Concept, Exhibit 300-1
Entry Criteria IRB Approved 300 IRB Approved
Project Plan Supporting Project Documents   Exit
Criteria Updated 300 Updated Project Plan
Control Documents Quarterly Reports PIR Schedule
Entry Criteria Implementation complete DOI IRB
approval   Exit Criteria Updated 300 Completed
PIR OM Review Schedule
Entry Criteria DOI IRB approval to enter Steady
State   Exit Criteria Updated 300 Yearly
Operational Analysis
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DOI CPIC Guide Pre Select
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Pre-Select Actions

• CPIC Guide
• Policy and procedures for submitting and
  approving new investments
• GAO ITIM Stage 2, Critical Process 3 Selecting
  an Investment
• CP3-C1 The organization has documented policies
  and procedures for selecting new IT proposals.
• CP3-C3 The organization has documented policies
  and procedures for integrating funding with the
  process of selecting an investment.

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DOI CPIC Guide Select
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Select Actions

• CPIC Guide
• Policy and procedures for selecting investments
  using Rating and Ranking Criteria
• DOI Value, IEA alignment, Risk, Quality of
  documents, Project Health
• Policy and procedures to review investment
  documents
• Charter, full 300, acquisition plan, risk
  management plan, performance measures, and
  project plan.

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Select Actions (continued)

• GAO ITIM Stage 2, Critical Process 3 Selecting
  an Investment
• CP3-C2 Documented policies and procedures for
  re-selecting new IT proposals.
• CP3-P2-3 Established criteria for
  analyzing/prioritizing/ selecting and
  re-selecting IT investments opportunities
• CP3-P4 A mechanism exists to ensure that the
  criteria continue to reflect organizational
  objectives.
• CP3-A1-2 The organization uses its defined
  selection/re-selection process, including
  predefined selection criteria.
• CP3-A3 Executives funding decisions are
  aligned with selection decisions.

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DOI CPIC Guide Control
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Control Actions

• CPIC Guide
• Policy and procedures to review investment
  control documents and recommend appropriate
  action
• Monthly monitoring of Project Costs, Schedule,
  Benefits, Risks and Technical Baselines
• Quarterly reporting to IRB for Control Review
  decisions
• GAO ITIM Stage 2, Critical Process 1 Instituting
  the Investment Board
• CP1-A3 Established management controls for
  ensuring that the investment boards decisions
  are carried out.
• GAO ITIM Stage 2, Critical Process 2 Meeting
  Business Needs
• CP2-A3 Users participate in project management
  throughout an IT Investments life cycle.

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Control Actions (continued)

• GAO ITIM Stage 2, Critical Process 4 Investment
  Oversight
• CP4-C1 Documented policies and procedures for
  management oversight.
• CP4-P2 Investments maintain approved project
  management plans.
• CP4-A2 Verified data is used by the IRB to
  review investment performance.
• CP4-A3 Actions are taken to correct
  underperforming IT investments.
• CP4-A4 IRB tracks implementation of corrective
  actions until completed.

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Control Actions (continued)

• GAO ITIM Stage 2, Critical Process 5 Capturing
  Investment Information
• CP5-C1 Documented policies and procedures for
  identifying and collecting information about IT
  investments.
• CP5-C2 An official is assigned responsibility
  for ensuring investment information collected is
  sufficient.
• CP5-P1 Adequate resources, including people,
  funding, and tools are provided for identifying
  IT investments and collecting and analyzing
  investment information.
• CP5-A1 IT investments are identified, and
  specific information is collected to support
  decisions about them.
• CP5-A2 Collected IT investment information is
  easily accessible and understandable to decision
  makers.
• CP5-A3 Collected IT information is used by
  investment decision makers to support investment
  management.

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DOI CPIC Guide Evaluate
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Evaluate Actions

• CPIC Guide
• Policy and procedures for Post Implementation
  Reviews (PIRs)
• Impact to Stakeholders
• Ability to deliver quantitative and qualitative
  IT performance measures
• Ability to meet baseline goals
• Policy and procedures to evaluate the IT Capital
  Management Investment Management Process
• Policy and procedures to move investments to
  Steady State

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DOI CPIC Guide Steady State
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Steady State Actions

• CPIC Guide
• Policy and procedures for conducting yearly
  Operational Analysis of Steady State investments
• Investment continues to effectively support
  mission requirements
• Operation and Maintenance costs are within
  expected range

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Questions?