Investment Management Concepts Portfolio Management Segment Architecture March

Investment Management Concepts Portfolio Management | Segment Architecture March 25, 2009 Adrienne Walker and Kshemendra Paul egov@omb. eop. gov www. omb. gov

Portfolio Management • 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 - PMI, PMBOK • Effective, timely, and continuing investment and governance decisions about the organization’s initiatives and other structured work effort, products, and software applications - Gartner

Value Proposition Portfolio Management • • • Enable organizational strategy Weigh benefits against costs Optimize the value of the portfolio Balance risk within tolerable thresholds Cross-cutting key performance measurement, direct performance towards shared targets

GAO IT Investment Management Maturity Model Portfolio Management Portfolio Manageme nt Evaluate Investment Selection Investment Control Project Manageme nt

Roles and Responsibilities Portfolio Management Project Manager • Facilitate creation of a business case • Determine project objectives • Conduct accurate, comprehensive, reliable estimates of costs, benefits and risks • Execute according to standards within allowable performance targets Program Manager/Business Leader • Identify business transformation needs • Determine programmatic objectives • Manage strategic initiatives • Monitor and control to performance targets Portfolio Manager • Actively analyze the ‘state’ of project performance • Communicate project alignment with strategic goals • Facilitate development and management of an optimized portfolio • Regularly reviews major investments, escalates issues and recommends action to the Governing Body/Investors • Set organizational strategy • Decide future of investments • Determine performance targets and allowable risk profile of the portfolio • Mitigate enterprise risk

Portfolio-level Performance Management Portfolio Management Line-of-Sight • Articulates the contribution of inputs to outputs and outcomes • Identifies performance improvement opportunities that span traditional organizational boundaries

Case Study Portfolio Management

Implementation Challenges Portfolio Management • Timely, accessible measurement of cost, benefit, risk and performance data • Early warning systems • Trusting and using the data • Event driven decisions • Meaningful program/project reviews that create actions and decisions • Post implementation reviews • Shared agreement on organizational goals and objectives • Transition Planning that balances current and future needs

Target Architectural Outcomes • Enhanced governance and agency commitment • Aligned strategy with high value, measurable, timely performance commitments • Structured cross agency collaboration resulting in a modernization roadmap • Use of cloud-based IT Infrastructure (technology) services • Integration of platforms into agency transition strategies and investment proposals • Secure inter-operability reduces complexity and cost, improves performance, and is “baked in”

FEA Context - Architecture Levels

Types of Segments • Core Missions Segments – Interoperability and information sharing • Business Segments – Standard processes to support migration to cloud-based shared services • Enterprise Segments – Focus on standards, policies, and reference architectures

Shared Modernization Roadmaps Strategic Planning Execution Architecture Strategic Planning Architecture CPIC Architecture Budget CPIC Execution

National Information Exchange Model NIEM Core The IEPD Lifecycle

Identity, Credential, and Access Mgmt

ICAM Experience • Idea germinated last winter • Bottoms-up focus – HSPD-12, e. Auth, Federal PKI Bridge, Cyber, FEA – Federal CIO Council, OMB, GSA, DOD leading • Two cycles of broad review (1200 comments) • Calendar (~9 months) – FSAM Steps 1 & 2 done by early Spring – Draft modernization roadmap reviewed with agencies in the Summer – Finalized in the Fall • Cost between $500 K to 1 M in contractor support, extensive working group and agency involvement.

Platform Architecture Next Steps • Plan of Action with Milestones (POAM) – By January 31 st, 2010 • Target and Gap on FASM Steps 1 & 2 (Governance, Scope & Strategy) – Inform the POAM • Training on FSAM, NIEM, & Data. gov • Initiate establishment of an appropriate NIEM domain • Identify target high value business processes and information exchanges for FY 2012 cycle • Identify and integrate high value data sets into Data. gov

Notional Calendar • 2 Q FY 2010 – Finalize Plans, enhancement of governance, strategy alignment – Initial exchange data model, targeted business processes, exchanges – Develop Approach to coordination across Platforms under FEA • 3 Q FY 2010 – Draft an review modernization roadmap with agencies – Finalize IT Infrastructure strategy with Cloud Initiative • 4 Q FY 2010 – Finalize modernization roadmap with agencies – Finalize agency use commitments – Finalize target performance improvement commitments