Managing IT to Deliver Results Stacie Higgins E-Gov Portfolio Manager United States Office of Management and Budget North American Day 2005

Opportunity in Information Technology The United States Federal government is spending $60 Billion on IT in Fiscal Year 2005 Our Goal is to be the best manager, innovator and user of information, services, and information systems in the world. Great opportunities exist to apply business best practices to government to achieve increases in productivity and delivery of services and information.

IT Portfolio Management Control Evaluate Select Provides the ability to:  Link performance to the agency’s mission  Identify and leverage government-wide solutions  Evaluate performance of individual investments and compare across a portfolio  Ensure investments are accomplishing their intended outcomes  Manage risk  Make informed decisions  Invest taxpayer dollars wisely Capital Planning and Investment Control Process Agencies make sound IT investments that are aligned with the agency’s mission and strategic plan

A consistent, quantifiable indicator to compare investments: Across an agency’s portfolio Across the Federal government Tools for Success — Earned Value Management CostSchedulePerformance Earned Value Management integrates all three! The Result? What’s more important - cost, schedule, or performance?

Standards for Success – Cost, Schedule, and Performance Expanded Electronic Government Scorecard Has demonstrated, using EVM or operational analysis, cost and schedule overruns, and performance shortfalls, that average less than 10% for all major IT projects Has cost and schedule overruns, and performance shortfalls, that average less than 30% for all major IT projects Has cost and schedule overruns, and performance shortfalls, that average 30% or more

Managing for Results  72% of agencies have mechanisms in place to validate performance relative to cost, schedule and performance goals for the IT Investments  About half of those departments and agencies meet at least 90% of their cost and schedules goals The Federal government is managing its IT more professionally as a resource for improving results

Looking Forward – Transforming Government FOUNDATION Clinger-Cohen Act President’s Management Agenda E-Gov Act of 2002 ADOPTION FY05 Goal: at least 50% of agencies managing their IT portfolio in accordance with the American National Standards Institute (ANSI) standard for Earned Value Management Systems TRANSFORMATION Full integration of performance measurements to evaluate and compare IT investments

For more information… Stacie Higgins E-Gov Portfolio Manager, Office of Management and Budget