portfolio management (pfm) pmi pres-25feb08pmibaltimore.org/pmi/events/attachments/6519543.pdf ·...
TRANSCRIPT
125 Feb 2008
The DODIT Portfolio Management (PfM) Process
DODD 8115.1 & DODI 8115.2
PMI Columbia - PfM Presentation25 February 2008
COL (Ret) Ron Dabbieri, PMPFormer CIO & Director of Information ManagementU.S. Army Corps of Engineers
225 Feb 2008
AgendaWhat is & Why IT Portfolio Management (PfM)
Portfolio Management Vision & Process Overview
Analysis & Selection Process
The DOD PfM Process– Analysis Process– Selection Process– Control Process– Evaluation Process
Where We’re Going– Capability Portfolio Management
Questions?
325 Feb 2008
The Project Management Institute (PMI) defines:
a Portfolio as “A collection of projects and programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related.”
Portfolio Management (PfM) as “The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs and other related work to achieve specific strategic business objectives.”
425 Feb 2008
WHY IT Portfolio Management ?
Portfolio ManagementTool Benefits
• Assist in Governance
• Status of Certification / FISMA Compliance
• Analytic Capabilities
• Baseline of all IT investments
Drivers
0
20
40
60
80
Core/Interim/Legacy
Clinger-Cohen ActDoD PfM Directives
DOD 8515-seriesDefense Authorizations
Appropriations Acts
Portfolio Management Achieves• Elimination of Redundant / Duplicative & Stove-piped Capabilities
• Aligning Capabilities into portfolios
• Org IT Investments as Core / Interim / Legacy
• Interoperability / Integration
• MA/Domain Architecture Assessment
Portfolio Management Objectives• Aligns IT Investments
• Integrates architectures
• Making informed decisions to stop, slow, maintain, and accelerate funding in support of Joint Enterprise vision
• Ensures compliancy and certification requirements adherence
• Identifies redundant/inefficient systems
• Establishes performance measures
• Identifies and resolves fielding/migration timelines to facilitate improved program execution
DOD 5000-seriesOMB Cir A-11OMB Cir A-123OMB Cir A-130OMB Cir A-109
525 Feb 2008
DoD IT Enterprise / 4 Mission Area Organization
Information Assurance
DoD (Title 10) IC (Title 50)
UsersUsers
OtherFederalCoalition
DoD CIO Executive Board (DoD Title 40)
JROC
Business Transformation Agency
Business Mission Area Warfighting Mission Area DoD Intel Mission Area
DoD IT Portfolio Management Mission Areas and Governance
USD(I)
IT IntegratorJt Staff J-6 IT Capability Integrator
Wea
pon
Syst
emLi
fe C
ycle
Mgm
t
Fina
ncia
l Mgm
t
Hum
an R
esou
rce
Mgm
t
Mat
eria
l Ser
vice
&
Sup
ply
Mgm
t
Rea
l Pro
pert
y &
In
stal
latio
n Li
fecy
cle
Mgm
t
DIMA Domains –
TBD
Forc
e M
anag
emen
t
Focu
sed
Logi
stic
s
Forc
e Pr
otec
tion
Forc
e A
pplic
atio
n
Bat
tlesp
ace
Aw
aren
ess
Com
man
d &
C
ontr
ol
Net
-Cen
tric
Trai
ning
DBSMC
Cross-Cutting & Interdependent Domains
Communications Computing Infrastructure Core Enterprise Services
Enterprise Information Environment Mission Area (EIEMA)
CJCS leads
USD(I) leads
DoD CIO leads
USD (AT&L) leads
625 Feb 2008
DOD – Army – PMI PfM Processes
The Army PfM Process
The DOD PfM Process
ControlControlControl
EvaluationEvaluationEvaluation SelectionSelectionSelection
AnalysisAnalysisAnalysis
Operational Focus
The PMI PfM Process
IdentifyIdentifyIdentify
CategorizeCategorizeCategorize
EvaluateEvaluateEvaluate
SelectSelectSelect
PrioritizePrioritizePrioritize
PortfolioBalance
PortfolioPortfolioBalanceBalance
AuthorizeAuthorizeAuthorize
ControlControlControl
EvaluateEvaluateEvaluate
725 Feb 2008
DOD IT Portfolio Management Decision Support Interactions
Integrated Architecture
Baseline Inventory
Investment Selection
Transition Plan
Analyze Analyze Analyze Select Select Select Control Control Control Evaluate Evaluate Evaluate
Feedback
Goals & Measures
Capability Needs
Gaps & Opportunities
Investment Criteria
Trade-offs
Best mix
Performance measures
Evaluation Criteria
Feedback
Alignment
Integration
Oversight
Joint Capabilities Integration & Development
System (JCIDS)
Planning, Programming, Budgeting & Execution
(PPBE) Process
Defense Acquisition System (DAS) Portfolio
ofCapabilities
Synchronizes interfaces of the 3
DOD decision support systems –
JCIDS, PPBE & DAS
Identification Categorization Evaluation Selection Prioritization PortfolioBalancing
Authorization
PerformanceMeasurement
PMI Portfolio Management Process Interactions
DOD & PMI PfMIntegrate with Existing Processes
825 Feb 2008
Mission and Vision
Analyze, select, control and evaluate critical portfolio capabilities and associated investments to achieve organizational goals and objectives.
Portfolio VisionFully leverage baseline resources from research to decommission
Synchronize milestones and dependencies
Measure performance to drive and manage investment decisions (Reinforce Success, Abandon Failure)
Recommend the best mix of investments to maximize portfolio performance
Portfolio VisionFully leverage baseline resources from research to decommission
Synchronize milestones and dependencies
Measure performance to drive and manage investment decisions (Reinforce Success, Abandon Failure)
Recommend the best mix of investments to maximize portfolio performance
925 Feb 2008
Portfolio Management Process
1Reference: DoD Instruction 8115.02 Information Technology Portfolio Management (ITPM) signed on 30 October 2006
EvaluationMeasures actual
contributions of portfolio towards improved
capability and supports adjustments to the
investment mix
EvaluationEvaluationMeasures actual Measures actual
contributions of portfolio contributions of portfolio towards improved towards improved
capability and supports capability and supports adjustments to the adjustments to the
investment mixinvestment mix
SelectionIdentifies and selects best
mix of investments to achieve capability goals and objectives across
portfolio
SelectionSelectionIdentifies and selects best Identifies and selects best
mix of investments to mix of investments to achieve capability goals achieve capability goals and objectives across and objectives across
portfolioportfolio
AnalysisLinks objectives to vision,
goals, priorities and capabilities, develop
performance measures, identify gaps and risks
AnalysisAnalysisLinks objectives to vision, Links objectives to vision,
goals, priorities and goals, priorities and capabilities, develop capabilities, develop
performance measures, performance measures, identify gaps and risksidentify gaps and risks
ControlEnsure investments within
portfolios are managed and monitored to
determine whether to continue, modify or
terminate
ControlControlEnsure investments within Ensure investments within
portfolios are managed portfolios are managed and monitored to and monitored to
determine whether to determine whether to continue, modify or continue, modify or
terminateterminate
Operational Mission Focus
Operational Operational Mission Mission FocusFocus
Output: Delivered capability to war
fighter
Output: Validated portfolio results
Performance
MeasuresPerf
orman
ce
Measu
res
Perform
ance
MeasuresPerformance
Measures
Output: POM/PR Issue and
Recommendations Paper
Output: Comprehensive set of initiatives to close
capability gaps
1025 Feb 2008
DOD Portfolio Analysis & Selection Processes
Assessed New Initiatives based on
Benefit and Risk
Developed Capability Threads
Created New Initiatives to
Address Gaps
Analyzed Results(POM Drivers, ROI,
Dependencies)
Performed Funded Plan Review
Portfolio Recommendations
(Funded Plan and Enhancement Plan)
Performed Funded Plan Gap Analysis
ControlControlControl
EvaluationEvaluationEvaluation SelectionSelectionSelection
AnalysisAnalysisAnalysis
Operational Focus
Identified Gaps by Capability Area
POM Drivers
Achieving Organizational Vision
Current operational concerns (shoring up today’s defenses)
COCOM high priority Issues & Needs
Estimated Full Lifecycle Cost of New Initiatives*
POM Issue Paper
POM Issue Paper
documented
System Functions that implement the ICD
Capabilities
SNAP
Baseline
Compare /
Contrast
Validation with Industry
1125 Feb 2008
AnalysisLinks objectives to vision,
goals, priorities and capabilities, develop
performance measures, identify gaps and risks
AnalysisAnalysisLinks objectives to vision, Links objectives to vision,
goals, priorities and goals, priorities and capabilities, develop capabilities, develop
performance measures, performance measures, identify gaps and risksidentify gaps and risks
1225 Feb 2008
Objectives – Baseline = Gaps
Identify & Maintain BaselineBin investments into capability areas Collect and review data on Baseline to include description, costs, schedules, and performance
Identify GapsCompare vision/objectives to Baseline - determine capability gaps
Identify Initiativesto Close Gaps
Develop Initiatives to close gaps (materiel and non-materiel)
Analysis
1325 Feb 2008
SelectionIdentifies and selects best
mix of investments to achieve capability goals and objectives across portfolio
SelectionSelectionIdentifies and selects best Identifies and selects best
mix of investments to mix of investments to achieve capability goals and achieve capability goals and objectives across portfolioobjectives across portfolio
1425 Feb 2008
Selection
Planning Develop criteria/methodology for
Screening & Scoring
DecisionSelect funded and unfunded
investments based upon scoring results and leadership and
management judgment
Ensure best mix of investments
Provides basis for trading off investments within & between portfoliosSelection criteria same for existing & new initiativesRequires Component participation
ScreeningReject initiatives not meeting
criteria/goals
ScoringScore baseline and new initiatives according to effectiveness to achieve
outcome goals, cost, and risk
1525 Feb 2008
ControlEnsure investments within portfolios are managed and
monitored to determine whether to continue, modify
or terminate
ControlControlEnsure investments within Ensure investments within portfolios are managed and portfolios are managed and
monitored to determine monitored to determine whether to continue, modify whether to continue, modify
or terminateor terminate
1625 Feb 2008
Control
Ensure capability delivery to warfighter
Activities focused on developing and acquiring capabilities selected in portfolio
Integrated roadmap developed to help align resources
Requires Component participation
Leverages existing reporting structures
Establish Plan Identify critical initiatives, compile acquisition/execution plans, and
develop monitoring plan
CollectCollect cost, schedule and
performance status required to ensure delivery of capability
Corrective ActionsRecommend course corrections as
necessaryMonitor progress following corrective
actions
Assess & MonitorIdentify and monitor programmatic and
technical problemsAssess progress to ensure deliver of
capabilities
1725 Feb 2008
EvaluationMeasures actual
contributions of portfolio towards improved capability and supports adjustments
to the investment mix
EvaluationEvaluationMeasures actual Measures actual
contributions of portfolio contributions of portfolio towards improved capability towards improved capability and supports adjustments and supports adjustments
to the investment mixto the investment mix
1825 Feb 2008
Evaluation
EstablishEstablish metrics and mechanisms for
performance measures
CollectCollect performance measures from Stakeholder
Community
Evaluate and InterpretEvaluate and interpret metrics to assess the
state of capabilities
Report PerformanceReport to stakeholders the state of the Pf and
progress on establishing capabilities
Evaluate Portfolio Management ProcessResults feed back into the other phases of portfolio
management to guide all investment decisions
Measuring progress and effectiveness
Assesses portfolio investments and determines whether expected benefits were achieved
Uses the same criteria as ‘Selection’ but is retrospective instead of prospective
1925 Feb 2008
Where We’re Going
Emphasize/InvigoriateIT PfM
Eliminate duplicationof effort thru LSS
Investigate ways in which analysis feeds the
POM process
Think in terms of “capabilities"
PfM Refinementto support Joint Capabilities Portfolio Management
2025 Feb 2008
DoDD/(I) that need coordination/synchronization
DoDD 8115.01 and DoDI 8115.02Information Technology
Portfolio Management and Instruction
Draft DoDD XXXXCapability Portfolio Management
DoDD 5144.1ASD(NII)/DoD CIO
DoDD 8000.01Management of Information Resources
and Information Technology
DoDD 7045.14The Planning, Programming
and Budgeting System (PPBS)
2125 Feb 2008
DepSecDef Memo CPM Way Ahead
• 4 CPM experiments – Formalized
• 5 CPM experiments thru FY 10 budget review cycle
• FCBs and JS will support and participate in CPM activities
Signed 7 Feb 08
2225 Feb 2008
DepSecDef Memo CPM Way Ahead
• Assigns Leads
• “They have no independent decision-making authority and will not infringe on any existing statutory authorities, but will have access to information and processes required to advise the DAWG.“
• “In essence, CPMs integrate, coordinate, and synchronize portfolio content by providing strategic advice intended to focus portfolio capabilities.”
2325 Feb 2008
Both Are Controlled by ASD(NII)/DoD CIO
ASD(NII)/DoD CIOHon. John Grimes
Deputy Assistant Secretaries of Defense (DASD) for:
Information Management Integration and Technology
Information and Identity Assurance
Command, Control, Communications,
Space and Spectrum
Resources C3ISR & IT Acquisition
Draft DoDD XXXXCapability Portfolio Management
DoDD 8115.01 and DoDI 8115.02Information Technology
Portfolio Management and Instruction
IT PfM CPM
2425 Feb 2008
Questions? Answers?
Never Forget Who You’re Working For!