Outline

l IT Legislation Compliance l Using the Balanced Scorecard:

Some MITRE Research l A 7-Step Process to IT Investment

Planning l Appropriate Metrics l Cultural Barriers

IT Legislation Compliance: Better Management

l CFO Act (1990): Financial Management l GPRA (1993): Financial Management and Resource

Management (Planning) - l Human l Capital l Information l Other

l PRA (1995): Information Resource Management l ITMRA (1996): Information Technology

Management l Capital Planning and Investment Controls l Performance- and results-based management

IT Legislation Compliance GPRA ZOOO?

-’ l Rumor: All IT Legislation blanketed by one name, GPRA 2000

l ,Questionnaire to facilitate Congressional Review: www.house.gov/science/gao.html

l OMB Guidance l CFO Act: OMB Circular A-123 (revised), June 21,1995 l GPRA: OMB Circular A-11 l Paper Reduction Act: OMB Circular A-130 l Clinger-Cohen Act: “Memorandum for Heads of Executive

Departments and Agencies,” by Director Franklin 0. Raines (Raines’ Rules)

Using the Balanced Scorecard: Some MITRE Research (1 of 2)

The BSC evaluates 66benefits’9 of investments in terms of financial and non-financial impacts

l Typical Scorecard:

Research extends the BSC approach used in some commercial firms to DOD

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IT investment programs l Public sector environments are not profit-driven, yet, must show the

efficiency of a profit-driven enterprise l May use additional decision analysis tools on top of BSC framework

Using the Balanced Scorecard: Some MITRE Research (2 of 2)

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A 7-Step Process to IT Investment Planning

2 Design Balanced Scorecard

IT’s Contribution

5 Design IT Solutions

6 Project Relative Benefit of IT Solutions

7 Select Optimal IT Investment Package, based on Value

Process Outputs

1 Evaluate IT Investment Environment

3 Construct Baseline of IT In

4 Assess Mission Task Performance and IT’s Contribution

7 Select Optimal IT Investment Package, based on

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Cultural Barriers

l Services and Agencies have been allocating budgets for a long time without GPRA-aligned plans (e.g., the POM process)

l They face legislative limitations which limits ‘optimal’ tradeoffs to discretionary spending

l Accountability is not always traceable from the strategy to the action

Link Resources to Resdts by Turning ’ Strategy into Action through Decisions : +

Only measure performance if you are going to use that information in some way to make a decision.