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

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ply

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y &

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stal

latio

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DIMA Domains –

TBD

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n

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aren

ess

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man

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ol

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-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!