Keys to Successful Program Delivery and Modernization Initiatives Presentation to NIH Richard A. Spires June 14, 2016

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Agenda  Status of Federal IT Management  IT Management Maturity  Delivering Successful Programs – 5 Key Ingredients  Success Stories

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Status of Federal IT Management  Poor Track Record of Delivery 413 of 840 (49%) federally funded IT projects are either poorly planned, poorly performing or both (GAO) Significant and very public IT program failures at DoD, HHS, Census, IRS, FBI, etc.  General Accountability Office (GAO) Last Year Put Government-Wide IT Acquisition on High-Risk List Indictment of Historic Processes and Oversight Lack of ability to regularly deliver successful programs Tremendous duplication in number and type of IT systems  Nominally $80 Billion Annual Spend Closer to $100 billion, adding in the other Programs/Intelligence Community Up to 80% spent on Operations & Maintenance (O&M) of legacy systems Houston, we have a problem!

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. IT Management Maturity Model – 5 Management Functions  Governance – the collaboration and decision-making glue by which IT management works  Budget – the process to formulate, obtain approval, and execute the use of funds to support IT  Acquisition – the buying process used to obtain IT products and services  Organization & Workforce – the process to determine needed competencies and develop a workforce that has those competencies through recruitment and professional development  Program Management – 1) the set of disciplines used for delivering IT capabilities to meet an agency mission or business need; and 2) operations and maintenance of an existing system Program Management Governance Budget Acquisition Organization & Workforce Organization & Workforce

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Delivering Successful Programs – 5 Key Ingredients 1 Set of Mature Program Management Practices 2 Solid Business and Technical Architecture 3 Working Governance Model 4 Working Government/Contractor Relationship 5 Skilled and Experienced Staff in the Program Management Office (PMO) BOTTOM LINE: YOU NEED ALL 5 INGREDIENTS FOR SUCCESS!

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Set of Mature Program Management Practices  Obvious, but surprising how many organizations do not follow standard best practices for program and project management!  Key is identifying the proper methodologies for the work Waterfall, Incremental, Agile For many programs, a combination of techniques is required  To institute improvements in an agency, use of a Center of Excellence (COE) model is recommended Identify and codify methods, processes, and sample work products Create a network of experts to draw upon Support programs to get started right and help troubled programs PMP

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Working Governance Model  Alignment of Stakeholders is Key Failure is almost guaranteed if Program Manager is pulled in different directions Beyond the Mission/Business Owner and IT Acquisition/Procurement, Security, Privacy, General Counsel, Finance, etc.  Collaborative and Trusting Environment Transparency of information Consensus-based decision making  Program Governance Board Co-chaired by Mission Owner and IT Includes executives from all other stakeholders Single reporting relationship for the Program Manager

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Solid Business and Technical Architecture  Business Architecture What the proposed system(s) must do to support the desired mission or business outcomes Program-level business architecture integrated with larger enterprise view Associated performance measures Determination of Minimum Required Capabilities  Technical Architecture Design for simplicity – balance with use of COTS and developed modules Leverage proof-of-concepts and pilots (if needed) Leverage modern Application Programming Interface (API) approaches Don’t forget performance requirements in design

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Working Government/Contractor Relationship  Most government programs require outside (contractor) support  Formal aspect of contractor relationship Contract structured to properly support program outcomes Contractor qualified to perform work Good working relationship between program and procurement – ideally Contracting Officer success is partially based on program success  Informal aspect of contractor relationship Contractors should be well integrated into the program (“badgeless” environment) Open communications with contractors regarding the overall program Contractors driving for efficiency and effectiveness Government avoiding the “blame game”

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Skilled and Experienced Staff in the PMO  Number One determinate of program success!  Key considerations Dedicated, skilled, and experienced Program Manager Dedicated staff from the mission/business –Know the current business processes –Understand the business objectives Key IT specialists (preferably government staff) –System Architect –Data Architect –Requirements Manager –Development and Integration Manager –Test Manager –Configuration Manager –Operations Manager

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Success Story – IRS Modernized E-File  Development of system to not only replace legacy 1040 e-filing but enable filing of other returns, to include business (1120), and tax-exempt organizations (990). Currently processing more 120 million 1040 returns annually.  Keys to Success: Senior-Level Commitment – Up to and including the IRS Commissioner Governance Approach – Informed decision making via governance body jointly chaired by the Director of Large and Medium-Sized Business Unit (LMSB) and the IRS CIO Use of Proven Program Management Techniques – As the BSM program matured, it developed program management practices enabled IRS to eventually move off the GAO High-Risk List for its modernization initiatives Engagement with Industry – IRS had extensive outreach and collaboration with the tax preparation industry Partnership with Vendors – Each vendor played its roll well, with proper oversight and management from the government project office

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. Success Story – CBP Automated Commercial Environment (ACE)  System to facilitate expedited import and export of goods. Designed to replace the Automated Export System (AES) and the Automated Commercial System (ACS), legacy systems that could not provide the functionality and security required by CBP and the trade industry. ACE development struggled from 2001 to 2011, with no replacement of legacy systems. Based on revamped approach, AES is now retired, and ACS will be retired by early  Keys to Success: Governance Approach – Informed decision making via governance consisting of senior-level stakeholders from across CBP, including mission leaders, IT, and acquisition Use of Proven Program Management Techniques – As the ACE program matured, it worked to mature its program and project management processes, leveraging support from the IT and Acquisition organizations in CBP Moving to an Agile Development Methodology – Moving to an agile methodology enabled feedback from users on a frequent basis and has enabled CBP to more rapidly deploy capabilities that have been fully vetted with users Engagement with Industry – CBP has always had extensive outreach and collaboration with the trade industry to ensure ACE would serve their needs

© Learning Tree International, Inc. All rights reserved. Not to be reproduced without prior written consent. QUESTIONS AND DISCUSSION