Commonwealth AITR Communications Exchange Lem Stewart CIO of the Commonwealth Commonwealth AITR Meeting December 19, 2006 Lem Stewart to deliver opening remarks expect the best www.vita.virginia.gov www.vita.virginia.gov expect the best 1

Welcome! Our Agenda Opening remarks Your topics Your questions Decentralized service rates Service delivery staff - customer communications Procurement Working Group update Technical architecture overview IT investment management update Your questions Supplier Managed Staff Augmentation Open Q&A Lem to walk through agenda www.vita.virginia.gov expect the best

Decentralized Service Rates Lem Stewart or Jim Roberts; when finished turn over to John Crawford who will talk about communications among service delivery employees and customer agencies. expect the best www.vita.virginia.gov www.vita.virginia.gov expect the best 3

Service delivery staff – Customer communications John Crawford When complete

Procurement Working Group update John Crawford to introduce Vicki Krisnitski

PWG Members Mary Clarke, Virginia Department of Transportation Gay Cohn, Virginia Department of Health Beth Easter, Department of Military Affairs Jim Gargasz, Department of Military Affairs Craig Goeller, Department of Medical Assistance Services Vicki Krisnitski, Department of Game & Inland Fisheries Debbie Madison, Department of Corrections Pat Paquette, Department of Health Professions Steve Rusch, Department of Conservation & Recreation Bob Sievert, Department of General Services Vicki Krisnitski: This work group was formed to address all information technology procurement activities in support of executive branch agencies and other municipal entities that makes use of the VITA procurement services. We are working with VITA and NG staff to resolve procurement issues that the agencies are facing. We use an interactive approach to problem solving, in that , we work with VITA to identify obstacles and challenges to the procurement process from an agency’s perspective. We have several objectives: Improve communication between the partnership and agency personnel on IT procurement processes. To work with VITA to provide an effective method of communicate and resolve issues and concerns. Work with VITA to improve customer satisfaction by implementing improvements in the procurement process. To serve as advocates for change in the procurement process.

Action List Review of the Request for Services process (RFS), time intervals, and examples of the process Review of the Telecommunications Service Request (TSR) process, services, intervals for TSR completion, and key 3rd party suppliers Review of how VITA communicates information to agencies Thus far, we have had three meetings with the whole group and four small group meetings to date. During the first meeting we discussed la variety of procurement issues and challenges from the agency’s perspective. In short, we voiced what our pain was- from that we developed action items. As you can see by the list of items on the screen, we have jumped right in partnering with VITA to identify challenges and recommended resolutions to procurement challenges. We were introduced to the Request for Services process (RFS) and reviewed the Telecommunications Service Request process (TSR), and we discussed how VITA communicates information to agencies. From that point we formed small work groups lead by an agency team member to focus on the next agenda items. For example, next slide

Scope and Objectives Work Group Members Patricia Paquette (Lead) Craig Goeller James Gargasz Catherine Nott (APM) Zeta Wade George Vrtiak The scope and objective group was lead by Pat Paquette, and the group members included Craig Goeller, James Gargasz, Catherine Nott (APM), Zeta Wade, and George Vrtiak. Next slide

Scope and Objectives Scope- purpose of the group Duration- how long the group should be in existence Objective-Identify goals of the group This group discussed the scope of the group , how long the group should operate, and recommended objectives . We anticipate that these will be finalized at our January 2007 meeting.

Debbie Madison (Lead), VADOC P2P Work Group Members Debbie Madison (Lead), VADOC Mary Clarke, VDOT Craig Goeller, DMAS J B Edmonds, VITA Tammy Helms, NG Ken Golaszewski, VITA George Vrtiak, NG Zeta Wade, VITA The P2P Bottleneck group was lead by Debbie Madison, with gthe following group members: Mary Clarke, Craig Goeller, J B Edmonds, Tammy Helms, Ken Golaszewski (APM), George Vrtiak, and Zeta Wade.

P2P Bottlenecks Exploring How agency can cross reference an eVA PR number to a Northrop Grumman PO number to the packing slips and shipping labels Diversity in agency’s procurement systems Who should be contacted with questions Who should be contacted if you don’t receive adequate response? This team is exploring the procure to pay process from the time that an order is placed for goods or services, receipt of goods or services, and finally payment. Some of the issues that we are currently exploring are: Read slide

Urgent Procurement Work Group Members Vicki Krisnitski (Lead), DGIF Tammy Helms, NG Steven Rusch, DCR JB Edmonds, VITA Bob Sievert, DGS Norm Hill, VITA Zeta Wade, VITA The urgent procurement group is lead by me, Vicki Krisnitski. The purpose of this group was to define what an urgent procurement is, and recommend definitions and guidelines to facilitate the procurement of goods and services in an expedited manner.

Urgent Procurement Define urgent procurement Recommend guidelines to facilitate the procurement of goods and services in an expedited manner Recommend a proposed process

Future Action Items Define the relationship between RFS and CATSPA Establish a process for handling how procurements are paid for with federal funds Escalation of a procurement request Expiring Contracts Relationship between RFS and CATSPA Some of the topics that we have coming up at future meetings include: Read from slide If you have issues that you are interested in the PWG looking into, please contact any member, Fred, or pass it on to your CAM or APM. "The next item on the agenda is an overview of the technical architecture, which was deferred from November. I will now turn over the podium to Tony Shoot from Northrop Grumman."

See: Technical architecture overview presentation Switch to the Tony Shoot/Ric Anderson presentation on technical architecture

Commonwealth of Virginia Information Technology Investment Management Constance Scott Sponsored By Administered By

Commonwealth of Virginia ITIM Leadership Questions How are investments in information technology controlled at an agency and Commonwealth level? How can these investments be leveraged? How can leveraging generate ‘internal capital’? Information Technology Investment Management (ITIM) A business investment methodology Investments aligned to strategic direction A comprehensive view of investments from multiple levels 1717

Commonwealth of Virginia ITIM ITIM Defined A management process that provides for the identification (pre-selection), selection, control, and evaluation of (business driven) IT investments across the investment lifecycle. ITIM uses structured processes to minimize risks and maximize return on investments. ITIM is the basis for the Commonwealth’s approach to technology management as approved by the ITIB in the Commonwealth Technology Policy Quote is from the CTM Policy adopted by the ITIB in 2004 18

Commonwealth of Virginia ITIM ITIM within the Performance Leadership Model (PLM) Performance Leadership Benefits Efficiency & Effectiveness Council on Virginia’s Future 2003 Best Managed State in the Nation Long-Term Objectives Commonwealth Strategic Planning Process 2005 I.T. Strategic Plans Agency Strategic Plans Commonwealth Information Technology Investment Management (ITIM) Virginia Maintains AAA Bond Rating Service Area Plans Virginia: Best State for Businesses Commonwealth Strategic Plan for Information Technology 2006 19

Commonwealth of Virginia ITIM Managing & Leveraging Investments within the PLM Alignment Governor’s Priorities & Strategic Initiatives Investment Views Commonwealth Investments Agency Priorities Secretariat Investments Secretariat Investments COV I.T. Strategic Plan (Collaboration) Agency Investments Agency Investments Agency Investments Analyze investments and identify opportunities Create a picture of investments Leverage investment 20

Commonwealth of Virginia ITIM ITIM Process Overview (Framework for Commonwealth ITIM) Pre-Select Control Business Plans & Needs Evaluate IT Investment Portfolio Management Tool Commonwealth Strategic Planning Process Select Investment Results Are the selected IT investments performing as planned? What proposed IT investments potentially solve business needs? Did the selected IT investments deliver the expected business value? Which IT investments best meet the business needs? 21

Commonwealth of Virginia ITIM Why ITIM, Why Now ? Commonwealth goal of continuous improvement “We must pursue more aggressive, transparent goals” Governor Tim Kaine “Expand constituent impact through lower operation costs” The Commonwealth must find ways to meet increasing demands through cost savings and increased productivity Investment management can contribute to lower operating costs and the generation of internal capital The Commonwealth must be innovative in the way in which it invests in I.T.

Commonwealth of Virginia ITIM Managing Expectations EPM: Enterprise Portfolio Management As experienced by AARP, investment management is a process requiring cultural change and time to mature.

Commonwealth of Virginia ITIM Implementation Goal/Timeframe Maturity Goal – July 2010 Commonwealth minimum level 2 Nov 06 – Mar 07 Execute education campaign to create a level of awareness Mar 07 Implement portfolio management tool Sept 07 – Apr 08 Agencies conduct self assessment and develop ITIM plans May 08 – Jul 10 Agencies implement ITIM Jul 10 Agencies conduct self assessment

Commonwealth of Virginia ITIM Implementation Schedule Phase I Details (Present – March 28, 2006) Implement the ProSight portfolio management tool for Commonwealth investments (Tool replaces CATSPA, the Projects Dashboard, and automates PM Standard templates) Milestones Oct – Dec 06: Customize training materials using a role based training model Jan 07: Standup production server and complete final data migration Jan – Mar 07: Conduct training Mar 07: Convert CATSPA and the Dashboard Mar 28, 2007: ProSight “go live” 25

Commonwealth of Virginia ITIM Implementation Timeline 26

Commonwealth of Virginia ITIM Customer Advisory Group VITA to establish Directorate level Customer Advisory Groups Groups will consist of appropriate agency executive leadership representation. Groups will work in a collaborative manner, to advise on day to day operational issues and the development and implementation of Commonwealth initiatives. Customer Advisory Group for IT Investment and Enterprise Solutions to work on ITIM.

Commonwealth of Virginia ITIM Next Steps in Phase I Education and awareness campaign Roll out investment portfolio management tool Implement standards and guidelines for the use of ITIM

Commonwealth of Virginia ITIM Agency Impact Initial impact will vary by agency size For the majority of agencies there will be minimal impact For the larger agencies the support infrastructure established will be based upon the level to which ITIM is implemented Impact over time The level to which an agency commits may increase over time as benefits of ITIM are seen As an organization matures in ITIM and the methodology becomes institutionalized, the support infrastructure should be reduced 29

Commonwealth of Virginia ITIM Agency Role Implement the Commonwealth Portfolio Tool (ProSight) (Mar 07) Conduct self-assessment and develop ITIM plan (Sep 07 – April 08) Implement agency ITIM plan (May 08 – July 10)

Commonwealth of Virginia ITIM Questions ? Contact Information Constance Scott Project Management Consultant Project Management Division IT Investment and Enterprise Solutions Virginia Information Technologies Agency 804-371-5927 constance.scott@vita.virginia.gov Turn podium to Susan Woolley to address questions about supplier managed staff augmentation. 31

Your Questions expect the best www.vita.virginia.gov 32

Supplier Managed Staff Augmentation Concerns about SMSA program Quality of staff due to fee assessed by prime contractor Agencies concerned about transition of old staff augmentation resources Cost Institutional knowledge loss if current supplier does not join program Susan Woolley www.vita.virginia.gov expect the best

Supplier Managed Staff Augmentation Program New model for hiring staff augmentation implemented this year Robust subcontractor network and hiring progress is managed by a service provider through a web-based request system What has happened so far 207 Contractors placed through system 44% of active subcontractors are SWaM’s; 67% of positions through SWAM subcontractors Service level performance through Oct., 2006 90% of time resumes of qualified candidate provided within 72 hours of hiring manager’s request (require 3-5 resume in first round) 93% of time Contractors positions filled with first round of candidates 98.99% of time program has been able to fill agency request www.vita.virginia.gov expect the best

Supplier Managed Staff Augmentation Concern - Quality of contractors Many agencies concerned about ability to attract higher level skills – New job description for senior consultants created Rates charged by service provider are in line with market Overall fill rate indicates that service provider has been able to attract qualified candidates (98.99%) 88% of SMSA users found candidates meet or exceed expectations in agency survey performed July 2006 120 staffing firms are in subcontractor network Staffing firms make less in this model, but have less expenses (eVA fees paid by service provider, reduced need for sales staff, etc.) www.vita.virginia.gov expect the best

Supplier Managed Staff Augmentation Concern - Loss of institutional knowledge from loss of specific resource Agencies granted opportunity to extend existing resources for up to a year prior to expiration of old staff aug contracts Encourage agencies to use this time to pursue the strategy that best fits their situation– such as Knowledge transfer to permanent employee Hire permanent position Plan transition to SMSA resource Encourage subcontractor to join subcontracting network 120 companies in the network may be attractive to individual VITA staff and CAI staff available to assist agencies with transition, scheduling meetings in January with agencies Susan to turn over to Lem for Q&A www.vita.virginia.gov expect the best

IT Consulting and Staff Aug. Advisory Council Formed to provide oversight, best practices, information sharing, address concerns Work with VITA to resolve issues, shape solutions and identify opportunities for Commonwealth to meet consulting and staff augmentation needs Current or potential users welcome a forum for issue discussion, oversight and information sharing for user agencies. In order to meet all agency IT staff augmentation and consulting needs, the Rate Review Committee will expand its scope to form an IT Consulting and Staff Augmentation Advisory Council. The Advisory Council will provide oversight, establish best practices, address concerns and identify future opportunities regarding the provision of IT services to the Commonwealth. Members of the Advisory Council will work with VITA to resolve issues, facilitate information sharing and shape future solutions and opportunities to effectively meet the Commonwealth's IT consulting needs. Any current or prospective SMSA contract user is welcome to join the Advisory Council. www.vita.virginia.gov expect the best

Questions & Answers expect the best www.vita.virginia.gov Lem for Q&A. At table: Joe Fay, Perry Pascual, Debbie Secor, Lem. If questions in other areas come up, the subject matter expert can step up to the podium on stage to answer. expect the best www.vita.virginia.gov www.vita.virginia.gov expect the best 38

Moderated Q&A To make the session productive We welcome your questions Ask questions that apply to multiple agencies Please talk to your CAM with agency-specific questions New issues may go to “parking lot” for future meetings We welcome your questions Call us or send your questions to us after the meeting What’s on your mind? www.vita.virginia.gov expect the best

Future Topics January meeting Other topics? Governor’s initiatives Enterprise Applications PPEA update IT security roles and responsibilities Transformation update Other topics? www.vita.virginia.gov expect the best

Send your questions, comments, suggestions to: Conclusion Next meeting: January 23, 2006 8:30 a.m. Networking 9 – 11 Meeting Location TBD Send your questions, comments, suggestions to: CIO@vita.virginia.gov www.vita.virginia.gov expect the best