Build CPIC Support into Technology Management

Capital Planning and Investment Control should be an integral element of technology management. If CPIC is only an afterthought to comply with OMB's Circular A-11 and related requirements, it is merely an overhead expense that doesn't yield its return on investment.

CPIC isn't just about getting money during budget season; it's about organizational performance, cost efficiency, and outcomes. There is nothing new about the notion of integrating CPIC into a comprehensive management approach:

General Accountability Office introduced its Information Technology Investment Management (ITIM) Capability Maturity Model back in May 2000: http://www.gao.gov/special.pubs/ai00155.pdf. This addresses the business process elements of technology management, and a more recent presentation is available from GAO at http://www.gao.gov/new.items/d04394g.pdf.

OMB kicked off the Federal Enterprise Architecture (FEA) in February 2002: http://www.whitehouse.gov/omb/egov/a-1-fea.html. This takes the concept of integration to an even higher level, because it seeks a mission and business driven architecture where technology is a component of overall agency management performance.

Program and project management offices have been a major force in integrating CPIC into a comprehensive technology management strategy. See our newsletter: http://www.p2c2group.com/apr05nws.html.

A Guide to the Project Management Book of Knowledge (PMBOK) views financial planning and control within the context of the overall project/program management process: Project Management Institute, http://www.pmi.org.

The idea of integrating CPIC into a broader management framework is analogous to the point that OMB is making with its overhaul of Circular A-123 for internal controls in financial management: Controls must be part of a comprehensive framework. That is, it cannot be like a tail appended to a horse; it must be integral, like the animal's nervous system.

CPIC and Technology Management

The good news is that we are seeing more federal agencies taking a comprehensive approach to investment management. Some are linking investment management to strategic planning and EA. Most are developing some sort of PMO capabilities that encompass CPIC.

The best agency CPIC Guides are actually evolving into Technology Management Guides, because they address virtually all critical issues such as strategic planning, governance, enterprise architecture, investment management, security, acquisition, risk management, and project management.

The evolution to a comprehensive Technology Management discipline is a good thing. It enables CPIC to be viewed as an ongoing process that is tightly linked with many other enterprise management processes.

Contractor Support

Agencies carry out many CPIC functions through contractor support. Indeed some contracts are specifically for CPIC support: development of business cases, Exhibit 300 preparation, training, business case reviews and scoring, and development of supporting documents such as alternatives analysis, project management plans, and security plans. Another trend is for CPIC-related deliverables to be bundled into broader contracts, such as for system development.

The P2C2 Group is active in delivering CPIC support for agencies and prime contractors, and we have developed SMARTER CPIC™, which makes investment management a seamless component of year-round technology management. There are many advantages to this solution:

Ongoing support gives agencies the time needed to make strategic use of investment management disciplines. CPIC evolves from being a paperwork exercise to yielding measurable results and cost savings.

EVMS performance requires continuous support for project planning and execution.

Many of the project/program documents use similar information. Agencies save time and money when the same support personnel to work with project plans, alternatives, risk management, EVMS, EA, information security, performance measurement, and data calls.

All of the supporting documents needed for investment decisions and Exhibit 300s are developed over the course of the year, and there is a better chance of avoiding summer budget panic that can disrupt staff productivity within agencies.

Smarter Solutions

P2C2 team members started delivering bundled technology management support in 2002. An early initiative combined Exhibit 300 preparation and other CPIC support with information security documentation, quarterly project performance reporting, decision support, and responses to data calls. This has been expanded to encompass enterprise architecture, EVMS, project management support, and performance tracking.

We negotiate work statements on a case-by-case basis because the support must be tailored to the specific context including:

Status of the project(s) within the system lifecycle

Agency-specific policies and practices

Characteristics of the project(s) within the project or portfolio.

The P2C2 Group assigns senior consultants for most of this work, because we have found they are more effective and cost efficient in delivering quality support. Technology management support requires a great deal of versatility, judgment, and understanding. Given the rapid changes underway in Federal IT, expert support is also required to implement changes quickly and accurately--something that wouldn't be available from less experienced people.

Examples of Overall Support Requirements

As a thought-starter, we have developed a table of activities that could be bundled into a contract support plan. These are illustrative only, and we would tailor them to specific agency requirements. For details, click on Examples of Lifecycle Activities in Federal Technology Management.