Investment Management Concepts

Portfolio Management | Segment Architecture

March 25, 2009

Adrienne Walker and Kshemendra Paul

egov@omb.eop.gov
www.omb.gov
 Portfolio Management

• 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
- PMI, PMBOK

• Effective, timely, and continuing investment and

governance decisions about the organization’s
initiatives and other structured work effort,
products, and software applications
- Gartner
 Value Proposition
Portfolio Management

• Enable organizational strategy

• Weigh benefits against costs
• Optimize the value of the portfolio
• Balance risk within tolerable thresholds
• Cross-cutting key performance
measurement, direct performance towards
shared targets
GAO IT Investment Management
Maturity Model
Portfolio Management
 Roles and Responsibilities
Project Manager
• Facilitate creation of a business case
• Determine project objectives
• Conduct accurate, comprehensive,
reliable estimates of costs, benefits and
risks
• Execute according to standards within
allowable performance targets
Program Manager/Business Leader
• Identify business transformation needs
• Determine programmatic objectives
• Manage strategic initiatives
• Monitor and control to performance
targets
Portfolio Management
Portfolio Manager
• Actively analyze the ‘state’ of project
performance
• Communicate project alignment with
strategic goals
• Facilitate development and management
of an optimized portfolio
• Regularly reviews major investments,
escalates issues and recommends action
to the Governing Body
Governing Body/Investors
• Set organizational strategy
• Decide future of investments
• Determine performance targets and
allowable risk profile of the portfolio
• Mitigate enterprise risk
 Portfolio-level Performance
Management
Portfolio Management

Line-of-Sight
• Articulates the contribution
of inputs to outputs and
outcomes
• Identifies performance
improvement opportunities
that span traditional
organizational boundaries
Case Study
Portfolio Management
 Implementation Challenges
Portfolio Management

• Timely, accessible measurement of cost, benefit, risk and

performance data
• Early warning systems
• Trusting and using the data
• Event driven decisions
• Meaningful program/project reviews that create actions
and decisions
• Post implementation reviews
• Shared agreement on organizational goals and objectives
• Transition Planning that balances current and future needs
 Target Architectural Outcomes

• Enhanced governance and agency commitment

• Aligned strategy with high value, measurable, timely
performance commitments
• Structured cross agency collaboration resulting in a
modernization roadmap
• Use of cloud-based IT Infrastructure (technology) services
• Integration of platforms into agency transition strategies and
investment proposals
• Secure inter-operability reduces complexity and cost, improves
performance, and is “baked in”
FEA Context - Architecture Levels
 Types of Segments

• Core Missions Segments

– Interoperability and information sharing
• Business Segments
– Standard processes to support migration to cloud-based
shared services
• Enterprise Segments
– Focus on standards, policies, and reference architectures
 Shared Modernization Roadmaps

Strategic Execution
Planning

Architecture

Strategic Architecture
Planning Architecture
CPIC
Architecture
Budget
CPIC
CPIC

Execution
National Information Exchange Model

NIEM
Core
The IEPD Lifecycle
Identity, Credential, and Access Mgmt
 ICAM Experience

• Idea germinated last winter

• Bottoms-up focus
– HSPD-12, eAuth, Federal PKI Bridge, Cyber, FEA
– Federal CIO Council, OMB, GSA, DOD leading

• Two cycles of broad review (1200 comments)

• Calendar (~9 months)
– FSAM Steps 1 & 2 done by early Spring
– Draft modernization roadmap reviewed with agencies in the Summer
– Finalized in the Fall
• Cost between $500K to 1M in contractor support, extensive
working group and agency involvement.
 Platform Architecture Next Steps

• Plan of Action with Milestones (POAM)

– By January 31st, 2010
• Target and Gap on FASM Steps 1 & 2 (Governance, Scope &
Strategy)
– Inform the POAM
• Training on FSAM, NIEM, & Data.gov
• Initiate establishment of an appropriate NIEM domain
• Identify target high value business processes and information
exchanges for FY 2012 cycle
• Identify and integrate high value data sets into Data.gov
 Notional Calendar

• 2Q FY 2010
– Finalize Plans, enhancement of governance, strategy alignment
– Initial exchange data model, targeted business processes, exchanges
– Develop Approach to coordination across Platforms under FEA
• 3Q FY 2010
– Draft an review modernization roadmap with agencies
– Finalize IT Infrastructure strategy with Cloud Initiative
• 4Q FY 2010
– Finalize modernization roadmap with agencies
– Finalize agency use commitments
– Finalize target performance improvement commitments