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FEDERAL SECTOR REPORT

April 2005

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7 Steps to Smarter CPIC
Links of the Month
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(c) 2005 by the P2C2 Group, Inc. 
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SEVEN STEPS TO SMARTER CPIC
 
Today's Focus on Enterprise Capital Planning & Investment Control
 
Capital Planning and Investment Control (CPIC) for federal information technology has changed dramatically.. It started out as a fairly simple IT investing and budgeting process in response to the Clinger-Cohen Act. Then, the focus was on individual projects during the Select phase of the CPIC lifecycle. But today the focus is on Enterprise CPIC, which encompasses: 
  • IT governance
  • Multi-investment portfolio management
  • E-Government
  • Transformational strategies for reinventing government business processes
  • Alignment with program performance as measured by Program Assessment Rating Tool (PART) reviews. 

Where the Buck Stops
 
The Office of Management and Budget (OMB) is making it clear that the buck for IT problems stops at the agency head and CIO level. It has told General Accountability Office that the individual executive branch agencies are responsible for correcting $22 billion of investment flaws on the OMB Watch List. (See OMB's response appended to GAO-05-276, Information Technology, OMB Can Make More Effective Use of Its Investment Reviews.)
 
Enterprise CPIC focuses on strengthening all IT investments and enterprise-wide IT management -- not just getting the money. OMB's own training materials for Circular A-11 (May 2004) state that OMB assesses: 
  • The “health” of individual investments
  • The agency’s overall capital planning and investment control process
  • Investment and program performance
  • How the agency’s IT portfolio is aligned with federal programs evaluated using OMB’s Program Assessment Rating Tool (PART).  

In other words, unless the agency optimizes enterprise-wide performance, the budget for IT is at risk.
 
Our conclusion is that the original approach to CPIC--focus on individual investments and grinding out individual Exhibit 300s on an ad hoc basis--won't get an agency where it needs to go. An enterprise-wide solution is needed that emphasizes IT governance and portfolio management which is fully integrated with mission performance, organization, and business architecture.
 
SMARTER CPIC
The P2C2 Group's solution is SMARTER CPIC® --
SMARTER CPIC
 
 
SMARTER CPIC is a Service Mark of the P2C2 Group, Inc.

SOLVE

Solve CPIC at the Enterprise Level

MANAGE

Manage for Compliance and Scores

AUTOMATE

Automate the CPIC Process

REVIEW

Review and Correct Continuously

TRANSFORM

Transform Programs and IT with E-Gov

EMPOWER

Empower Your Team

REALLOCATE

Reallocate Your Resources



SOLVE
.  Many decisions are agency-wide, and project managers cannot resolve CPIC issues at the individual investment level. This means that the agency must take a leadership role in addressing such issues as: 
  • Mission and Program Objectives
  • Alignment with PMA
  • Budget Priorities
  • E-Gov Strategy
  • Enterprise Architecture
  • Security for Infrastructure
  • Acquisition Strategy
  • Accountability for PART Results. 
MANAGE.  Success is premeditated!  Agencies must govern their IT resources to score well  -- managing for successful results in their budget submissions and the overall e-Government scorecard.  For example, Department of Labor says it models its IT governance strategy upon "getting green." (See Federal Computer Week, 12/13/2004.) 
 
AUTOMATE.  The work flows and processes for CPIC should be relatively mature within an agency, and automation tools should help project and portfolio managers save time, access best practices, collaborate, and make pro-active management decisions. Moreover, information about IT projects should be in a unified database (rather than Exhibit 53 and 300 forms processors) so that the agency has immediate access to data for reviews and data calls on a continuous basis.
 
REVIEW.  Review of investment performance needs to be ongoing -- at least monthly, and there is absolutely no reason to wait for once-a-year budget reviews based on Exhibit 53s and 300s.  With automated tools, ongoing review is possible without sentencing project/portfolio managers to a life of paperwork and special reports. Some of the suggestions for improved CPIC reviews include:
  • Track all OMB scoring and scorecard issues.
  • Break down CPIC into manageable chunks. During one month, an agency could focus on strategic alignment with business goals and performance metrics/outcomes. Another month could deal with market research, partnerships, and better alternatives. Upgraded acquisition strategy, security, project risk management, etc., could also be appropriately sequenced.
  • Identify and track corrective actions.
  • Stop low-performing investments and recycle the money for better results.
TRANSFORM.  Think big. Today's CPIC is about transforming government, not just IT. As OMB's Clay Johnson III has said, "E-Government is transforming our agencies and producing results …."  Governance and Enterprise Architecture offer pathways for implementing transformation: 
  • Making government more accessible and convenient
  • Streamlining internal business processes
  • Improving the quality and availability of information
  • Providing agency budget flexibility by reducing operating costs
 In some cases, the costs of IT for E-Government could be borne by savings gained through organizational and workflow changes.
 
EMPOWER.  Agencies invest substantially in IT human resources, and it's crucial to make your entire team as productive as possible. Enterprise CPIC enables you to empower your overall team with: 
  • Access to agency-wide best practices and standard text
  • Collaboration
  • Training
  • Databases that provide re-usable information for all lifecycle requirements
  • Automated work flow
  • Ongoing reviews and feedback.
REALLOCATE.  Most of your money is probably tied up in the evaluate phase of the CPIC process (steady-state investments).  According to the OMB Capital Programming Guide, "Ownership costs, such as operations, maintenance, including service contracts, and disposition, can easily consume as much as 80 % of the total life-cycle costs. Upon investigation, you may be able to: 
  • Recover money by consolidating applications and systems.
  • Move money away from low-performing investments.
  • Share costs by partnering with other agencies.
  • Transfer costs to other public or private organizations.
  • Recover money from agency budget by streamlining business operations. 

LINK OF THE MONTH
 
The PowerPoint briefing for this month's article on 7 Steps to SMARTER CPIC  is available at:  http://www.p2c2group.com/Docs/smarter_cpic.pdf.
 
The PowerPoint briefing is based on a keynote speech presented at a Niku Corporation web event that introduced its CPIC Accelerator.
 
CONTRACT WITH US FOR SMARTER SOLUTIONS
 
The P2C2 Group, Inc. provides leading-edge consulting services on the business side of federal information technology. It works through multiple prime contractors. More information about our services is at http://www.p2c2group.com/services.htm.

Send us your resume for confidential review.
 

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A change of pace can sometimes be rewarding. Elena and I don't usually attend concerts for popular music, but we recently went to Strathmore Music Center for a performance by Linda Eder. She had never appeared on my radar screen before because I generally stick to classical, opera, and jazz. But we had a great fun and rediscovered the pleasures of Broadway-style music.

Photo of Linda Eder

Linda Eder

Best wishes,

Jim Kendrick
Enterprise Management Consultant
4101 Denfeld Avenue
Kensington, MD 20895
301-942-7985
 
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The P2C2 Group, Inc.
4101 Denfeld Avenue | Kensington, MD 20895
Point of Contact: Jim Kendrick, President
e-mail: kendrick@p2c2group.com
phone: 301-942-7985 | fax: 301-942-7986

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