1. IT Investment Management (ITIM) and the Integrated Financial Management System (IFM)
Ernest F. Steidle, Ph.D.
Deputy Commissioner, Administration and Chief Operations Officer
Commonwealth AITR Communications Exchange
October 28, 2008
Notes: Self-explanatory. 1

2. Project Scope
Integrates all fiscal processes, fiscal data management systems and data exchange processes for five DSA agencies and their subordinate units into a single system
Department of Rehabilitative Services (DRS)
Woodrow Wilson Rehabilitation Center (WWRC)
Department for the Blind and Vision Impaired (DBVI)
Virginia Rehabilitation Center for the Blind and Vision Impaired (VRCBVI)
Virginia Department for the Deaf and Hard of Hearing (DDHH)
Virginia Board for People with Disabilities (VBPD)
A data exchange engine that allows communication between CARS, CIPPS and eVa via 28 data exchange files with agency based systems.
Upon implementation, used by 25 COV agency codes.
Notes: Self-explanatory.

3. Identification of Gaps
A high level of scrutiny by objective outsiders leads to questions that when answered, improves project performance, stakeholder expectations and reduces risk.
The project began using traditional life cycle processes, a detailed contract and unrealistic expectations.
DRS/DSA followed IT Investment Management (ITIM) Project Management (PM) processes required for Major Projects to uncover gaps and problem areas
Notes: Self-explanatory.

4. Identification of Gaps
There was no vendor management plan
The contract requirements was the only documentation guiding deliverables. There was no mention of agency staff roles or expectations. Deliverables were not organized by project life cycle.
Commonwealth PMD identified that the Vendor’s management plan lacked key details for a Major IT Project
Project Team involvement was inadequate resulting in inconsistencies in understanding project requirements.
The project began several times
A re-charter of the Project Teams along with definitions of Team responsibilities and a high level of management support resolved this issue.
Because of the lack of a coherent Vendor Management Plan, the detailed project plan was flawed.
Commonwealth Project Management Division (PMD) identified the problem
Project status immediately went to “Yellow” alerting management
Conducting weekly status meetings revealed inconsistencies with the Project Schedule
Commonwealth PMD identified that the schedule showed 70% complete but supporting tasks showed 0% complete
All of the problems were related!

5. DRS/DSA Benefits
Project was headed toward failure. Early intervention allowed a realignment of milestones and more realistic deadlines
Project risks were significantly reduced by establishing consistency between a vendor management plan, project plan and project schedule
Stakeholder expectations were properly managed with clear expectations of project team participants and an accurate project schedule
Risk aversion thru transparency is the name of the game. ITIM PM provides the tool.
Notes: Self-explanatory.

6. DRS/DSA Process Areas of Improvement
Just the right governance, just in time (under development by the ITIM Customer Council)
“Right size” governance requirements to project complexity
First priority is the project result
Establish viable project performance measures to insure project outcome exceeds user expectations
A “yellow” or “red” status report is not necessarily “bad”
It can elicit additional support from outside resources to get the project back on track
Clear communication with IV&V vendor is key for valid, relevant IV&V recommendations
COST
For IFM, 10% of Project cost is IV&V
For IFM, 10% of Project Cost is internal PM

7. Lessons Learned
ITIM has potential to reduce risk and save money, but it is still maturing
ITIM PM is not embraced by all agencies in the Commonwealth and not necessarily fully mature at this point, but the refinement work continues
While ProSight is one of the #1 leading tools for managing investments, some infrastructure issues remain and expect growing pains
Sometimes ITIM PM produces a false negative! Don’t be shy about pointing it out.
An ITIM Standard will help agency business and IT leaders understand the value of using investment management processes
Notes: Self-explanatory.
Communicate ITIM processes to your agency

8. Presenter Presenter’s Title Group/Event Name Date
Commonwealth IT Investment Management (ITIM) Standard
Managing Technology Investments to Provide Value to Citizens in Virginia
Presenter
Presenter’s Title
Group/Event Name
Date
Notes: The purpose of this presentation is to provide an information briefing on the Commonwealth IT Investment Management Standard and how it supports business in the Commonwealth today. 8

9. WHY IS ITIM IMPORTANT FOR THE COMMONWEALTH?
Commonwealth goal of continuous improvement
Notes: These slides are from a presentation given by the Secretary of Technology to the Council on Virginia’s Future in The goals remain the same.
Slide 1:
The Commonwealth must find ways to meet increasing demands. Cost savings was one of the solutions offered up. Through sound analysis and selecting the right investments, potential cost savings can be found.
Slide 2:
The ability to lower operation costs was also targeted. Through ITIM/Portfolio management comes the ability to analyze on-going operational investments to reconsider their viability and contribution to the organization’s strategic direction. This analysis has the potential to lower costs as cheaper alternatives are found and redundant investments retired.
Slide 3:
As demonstrated in the third slide some of the best performers are innovators. As Alan Greenspan pointed out, increases in productivity can be directly attributed to the incorporation of innovative technology. It then follows that the ability for an organization to have a standard consistent and innovative method for handling I.T. investments is essential.
“Expand constituent impact through lower operation costs”
“We must pursue more aggressive, transparent goals” Governor Tim Kaine
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 IT.

10. HOW DOES ITIM SUPPORT COMMONWEALTH BUSINESS?
Maximizes business value
Allows the Commonwealth to select IT investments that align with business goals and objectives
Examples:
Business Need IT Strategy
Reducing long customer wait times
Web-based customer service applications
Obtaining quick access to medical data
High performance networks and databases
Preparing for hurricane evacuations
New wireless radios and centralized computers
Identifying vehicle license plates
High speed laptops in State Police cars
Reducing the time to process tax paperwork
Web-based software solutions
Notes:
IT Investment Management (ITIM) supports Commonwealth Business by maximizing the business value through the identification (the agency strategic planning process defines business needs) and selection (selecting IT investments that align with business goals and objectives using strategies from the Enterprise Architecture) of those investments.
Your business drives Commonwealth IT investments

11. WHAT CAN ITIM DO FOR MY AGENCY?
ITIM is a proven business investment methodology that will help you:
Align investments to business goals and objectives
Identify and track spending on IT investments
Control and monitor IT investment projects
Confirm that IT investments are meeting business objectives
Leverage IT investment opportunities that may generate internal capital
Make informed decisions on an IT investment portfolio by assessing value and risk
Notes:
IT Investment Management is a proven business investment methodology used successfully around the world by leading organizations both in the private and public sectors to:
1. Align investments to business goals and objectives
2. Identify and track spending on IT investments
3. Control and monitor IT investment projects: Investments are often not made based upon a specific long term business strategic goal but are a reaction to daily operational emergencies. Once an investment decision is made, it is also important that the investment be controlled and monitored.
4. Leverage IT investment opportunities that may generate internal capital: In general investments are made in isolation, in traditional stovepipes. A high-level standardized view of investments will allow the Commonwealth and agencies to identify like investments and leverage one against another for the greater good. In leveraging investments and identifying commonality, there is a great potential at all levels (agency and Commonwealth) to release capital that would otherwise be allocated to duplicate efforts.
5. Make informed decisions on an IT investment portfolio by assessing value and risk: One of the primary goals of ITIM is to support value-based agency IT investment decisions. Value and risk must be tracked across the entire ITIM cycle.

12. WHAT IS THE ITIM STANDARD?
The ITIM Standard documents the current Commonwealth IT investment governance process, for better stakeholder understanding, that allows the ITIB and CIO to meet Code-directed responsibilities in collaboration with business leaders
The ITIM Standard utilizes best practices that are commonly used in both the public and private sector, around the world
Notes:
The purpose of the Commonwealth of Virginia Information Technology Resource Management ITIM Standard (ITIM Standard) is to:
Describe the phases in the ITIM process;
Define how the value of an IT investment is measured in each phase;
Identify the required actions associated with each phase; and
Assign roles and responsibilities for those actions,
in order to maximize the business value of IT investments in the Commonwealth.

13. Commonwealth Technology Portfolio
ITIM ANSWERS KEY INVESTMENT QUESTIONS FOR BUSINESS LEADERS
Commonwealth
Strategic Planning
Process
Business Plans & Needs
What proposed IT investments potentially solve business needs?
Pre-Select
Investment Results
Which IT investments best meet the business needs?
Commonwealth Technology Portfolio
Evaluate
Select
Notes:
ITIM is a key component/building block in Performance Management and that the fundamental principals of investment management support Efficiency and Effectiveness. ITIM is about selecting the right investments; insuring that these investments align properly to the organizations’ missions, goals, and objectives; insuring that the investments are performing as planned; and determining if the investments delivered the anticipated business value. At the center of the process is an automated IT Investment Management Tool, the Commonwealth Technology Portfolio, which captures all IT investments and provides analytical tools to assist management with business decisions.
ITIM is the Commonwealth’s primary process for:
Identifying which proposed IT investments potentially solve agency business needs;
Selecting IT investments that best meet the business needs;
Monitoring the performance of the initiatives for developing and placing the selected IT investments into operation; and
Determining if the selected IT investments are continuing to deliver the expected business value.
The ITIM process consists of four Phases. The goal of the Pre-Select (Identify) Phase is to identify, analyze, and document IT investments that support agency business needs. The goal of the Select Phase is to decide from among the investments identified in the Pre-Select (Identify) Phase which investments to undertake. The goal of the Control Phase is to ensure that IT investments are developed and placed in operation using a disciplined, well-managed, and consistent process. The goal of the Evaluate Phase is to compare the actual performance results and benefits of an investment to the range of target performance measures established for the investment. The ITIM process is repeated within the agency and the Commonwealth on an annual basis and as part of the budget cycle.
Did the selected IT investments deliver the expected business value?
Control
Are the selected IT investments performing as planned?

14. WHAT BENEFITS HAVE WE ALREADY SEEN?
There have been no failed major projects in past 5 years
Projects are completing and meeting performance goals
The Commonwealth has significantly lowered project failure risks and improved decision-making capabilities
IT investments are aligned with business strategy
The Commonwealth has a systematic approach for managing portfolio risk and controlling investment activities
The Commonwealth has identified new opportunities such as shared services
Notes: Self-explanatory.

15. AS AN AGENCY, WHAT DO I NEED TO DO?
Identify and document business needs derived from:
Citizen needs
Council on Virginia’s Future
Grant funding
Code of Virginia
Agency Strategic Plans
Consumer boards
Governor’s initiatives
Commonwealth Strategic Plan for IT
Federal and State mandates
Evaluate, score, and rank IT investments
Prioritize IT projects
Identify business needs and prioritize potential investments
Develop Investment Business Cases
Research possible enterprise/collaboration opportunities
Update the Agency Strategic Plan and Commonwealth Technology Portfolio
Notes: Self-explanatory.

16. A COMMONWEALTH ITIM SUCCESS STORY - VDOT
Fleet Equipment Management Information System (FEMIS)
VDOT had a business need to track and manage fleet equipment
Documented need for IT investment in the Agency Strategic Plan and Commonwealth Technology Portfolio
Business need aligned with the goals and objectives from the Council on Virginia’s Future
Notes: Self-explanatory.

17. A COMMONWEALTH ITIM SUCCESS STORY – VDOT (continued)
Fleet Equipment Management Information System (FEMIS)
Commonwealth CIO reviewed the Investment Business Case in the portfolio and saw a potential for multi-agency solution
VDOT worked with the CIO to establish a shared service that will benefit multiple agencies
Commonwealth contract is now in place for all agencies
Shared service will reduce Commonwealth costs to set up future independent contracts
Enterprise investment opportunity and resulting shared-service would not have been identified without following ITIM best practices
Notes: Self-explanatory.

18. AS AN AGENCY, WHAT DO I NEED TO DO NEXT?
Translate business value into performance measures
Develop detailed project plans and execute projects as directed in the Commonwealth Project Management Standard
Develop applications in accordance with statewide technical and data standards for information technology
Submit monthly status reports, requests for baseline adjustments greater than 10%, and IV&V reports for each Major IT Project (as scheduled)
Notes: Self-explanatory.

19. VA Election & Registration Information System (VERIS)
A COMMONWEALTH STORY WHERE ITIM GOVERNANCE AND OVERSIGHT PLAYED AN IMPORTANT ROLE - SBE
VA Election & Registration Information System (VERIS)
SBE had a business need for a new statewide voter registration and election management system
Project started fine, but began to run into serious problems
Vendor missed deliverables and milestones
Assumptions and user requirements were not clearly understood by all the stakeholders
Vendor did not clearly understand the business problem
Notes: Self-explanatory.

20. A COMMONWEALTH STORY WHERE ITIM GOVERNANCE AND OVERSIGHT PLAYED AN IMPORTANT ROLE (continued)
VA Election & Registration Information System (VERIS)
ITIM governance and oversight helped recover a failing IT investment
Internal Agency Oversight Committee (IAOC) identified problem areas and escalated them to the Cabinet level
Secretary of Administration consulted with CIO on action plan
CIO recognized need for new Project Manager and weekly assistance to the Project Management team
A “Help America Vote Act (HAVA)” compliant system was finally delivered, but there were several key lessons learned along the way
Notes: Self-explanatory.

21. A COMMONWEALTH STORY WHERE ITIM GOVERNANCE AND OVERSIGHT PLAYED AN IMPORTANT ROLE (continued)
VA Election & Registration Information System (VERIS)
Lessons learned
VERIS Post Implementation Review Report dated September 19, 2008 stated, “Ensure that the state standards for project management and development are followed”
Stakeholder identification and commitment is vital to success
Assumptions and user requirements must be identified and validated early in the investment lifecycle
The statement of work with the vendor must be detailed and accurate
A realistic, achievable, and detailed project plan is critical to success
Notes: Self-explanatory.

22. AS AN AGENCY, WHAT DO I NEED TO DO NEXT?
Conduct Post Implementation Reviews on Major IT Projects using the asset performance measures established in the Control Phase
Use asset performance measures to measure the business value
Document IT asset performance
Analyze gaps between current business needs and performance of IT assets
Make a determination to maintain, migrate, improve, or retire each IT asset in the agency technology portfolio
Notes: Self-explanatory.

23. USING THE ITIM STANDARD
Each phase of the ITIM process is clearly explained
At the end of each phase, roles and responsibilities are clearly identified
4.3 Control Phase
The purpose of the Control Phase is to ensure, through timely oversight, quality control, and executive review, that IT investments are developed and placed in operation using a disciplined, well-managed, and consistent process.
Notes: Self-explanatory.

24. USING THE ITIM STANDARD (continued)
Pre-Select
At the end of the Standard, stakeholder responsibilities are listed in bullets and grouped together by phase for quick reference
Select
Control
Notes: Self-explanatory.
Evaluate

25. Commonwealth Strategic Planning
HOW DOES ITIM FIT WITHIN THE COMMONWEALTH’S EXISTING STRATEGIC PLANNING AND PERFORMANCE MANAGEMENT MODEL?
Commonwealth Strategic Planning
Efficiency & Effectiveness
ITIM insures that IT investments are
aligned with the Council on Virginia's Future long term objectives and The Commonwealth Strategic Plan for Information Technology
Council on Virginia’s Future
2003
Long Term Objectives
Commonwealth Strategic Planning Process
2005
Notes:
The following elements of the Performance Leadership model have been established over the past several years:
The Council on Virginia's Future was established in 2003 to develop a vision and long-term goals for Virginia's future.  It was also tasked with developing a performance leadership and accountability system for state government that aligns with and supports achievement of the vision (
The Commonwealth of Virginia’s strategic planning process was overhauled in At this time, the IT strategic plan was merged into the agency business plan (
The COVA Strategic Plan for Information Technology for was written in 2006 (
ITIM is a key component/building block in Performance Management and that the fundamental principals of investment management support Efficiency and Effectiveness. ITIM is about selecting the right investments; insuring that these investments align properly to the organizations’ missions, goals, and objectives; insuring that the investments are performing as planned; and determining if the investments delivered the anticipated business value.
ITIM in the Commonwealth is based on:
The recognition that the Commonwealth strategic planning process drives technology investment strategies;
The need to support effective communication about technology investment decisions;
The concept that technology investments in the Commonwealth support and add value to the business of state government; and,
The premise that technology investments should be prioritized, executed, and measured based on how they achieve agency and enterprise-wide strategic goals and objectives, and how they serve the critical business needs of the Commonwealth.
I.T. Strategic Plans
Agency Strategic Plans
Commonwealth Information Technology
Investment Management
(ITIM)
Service Area Plans
Commonwealth Strategic Plan for Information Technology
2006

26. ITIB approved September 30, 2008
NEXT STEPS
ITIB approved September 30, 2008
Enhance investment portfolio management tool to better support ITIM
Notes:
The first step in implementing IT Investment Management (ITIMI) is to ensure that everyone has a level of knowledge and awareness of ITIM. An education campaign on the methodology, its benefits, its tie to performance leadership and how it will be implemented was incorporated into ProSight training classes and special presentations to agencies.
Implementation of the portfolio management tool, ProSight, centralized procurements, project management, and IT strategic planning workflows into one system thereby streamlining the process.
The ITIM standard provides the overall framework of requirements agencies are to follow. The ITIM Standard will be submitted to the ITIB for approval on 10/16/08.
Execute an education and awareness campaign; enhance stakeholder understanding

27. Commonwealth ITIM Contact
QUESTIONS?
Contact Information
AITR Name
804-phone number
address
Commonwealth ITIM Contact
Constance Scott
Manager, ITIM Office
(804)
Notes: Self-explanatory.

28. Additional References
Notes: Self-explanatory.

29. AS AN AGENCY, WHAT DO I NEED TO DO?
Identify and document business needs derived from:
Citizen needs
Council on Virginia’s Future
Grant funding
Code of Virginia
Agency Strategic Plans
Consumer boards
Governor’s initiatives
Commonwealth Strategic Plan for IT
Federal and State mandates
Notes: Self-explanatory.

30. AS AN AGENCY, WHAT DO I NEED TO DO?
Identify business needs and prioritize potential investments
Develop Investment Business Cases
Research possible enterprise/collaboration opportunities
Update the Agency Strategic Plan and Commonwealth Technology Portfolio
Notes: Self-explanatory.

31. AS AN AGENCY, WHAT DO I NEED TO DO?
Evaluate, score, and rank IT investments
Prioritize IT projects
Notes: Self-explanatory.

32. AS AN AGENCY, WHAT DO I NEED TO DO NEXT?
Translate business value into performance measures
Develop detailed project plans and execute projects as directed in the Commonwealth Project Management Standard
Develop applications in accordance with statewide technical and data standards for information technology
Submit monthly status reports, requests for baseline adjustments greater than 10%, and IV&V reports for each Major IT Project (as scheduled)
Notes: Self-explanatory.

33. AS AN AGENCY, WHAT DO I NEED TO DO NEXT?
Conduct Post Implementation Reviews on Major IT Projects using the asset performance measures established in the Control Phase
Use asset performance measures to measure the business value
Document IT asset performance
Analyze gaps between current business needs and performance of IT assets
Make a determination to maintain, migrate, improve, or retire each IT asset in the agency technology portfolio
Notes: Self-explanatory.

34. GOVERNOR’S MESSAGE: CONTINUOUSLY IMPROVE MANAGEMENT OF IT INVESTMENTS
Optimize management, efficiency and productivity from our information technology investments
Align the Commonwealth’s business model and IT strategy
Improve maintenance and operations planning
Increase transparency in our return on investment
Provide a comprehensive IT governance model for managing all the IT resources of the Commonwealth
Notes:
In January 2008, Governor Kaine sent the following letter to the Chairman of the IT Investment Board:
The Commonwealth has made significant strides in the management of its information
technology resources since the establishment of the ITIB and VITA several years ago,
particularly in the areas of project and infrastructure management.
While these gains have been impressive, the Auditor of Public Accounts’ December 2007
report on Information Technology Governance highlighted additional improvement opportunities
in the areas of IT governance, portfolio management and IT budget oversight.
I am recommending an improved approach to managing these areas with the assignment
of the Director of the Virginia Enterprise Applications Program to the position of Chief
Applications Officer (CAO). Recognizing the current budget constraints, and striving to leverage
existing Commonwealth resources, I am requesting your assistance in the development of an
operational plan to improve oversight and management of the areas listed above.
Some of these responsibilities currently lie with the Chief Information Officer. Working
together, I am confident we can properly align these to optimize management, efficiency and
productivity from our information technology investments. These efforts will better align the
Commonwealth’s business model and IT strategy, improve maintenance and operations
planning, enhance enterprise application efforts, create data standards, increase transparency in
our return on investment, and provide a comprehensive IT governance model for managing all
the IT resources of the Commonwealth.
To see the IT Investment Board discussion regarding this request, go to page 3 of 6 of the ITIB meeting minutes for 1/17/08 at

35. GENERAL ASSEMBLY’S MESSAGE: MANAGE IT INVESTMENTS MORE EFFECTIVELY
§ Information Technology Investment Board. “The Board shall be responsible for the planning, budgeting, acquiring, using, disposing, managing, and administering of information technology in the Commonwealth.”
§ CIO. “Direct the development of policies and procedures for the effective management of information technology investments throughout their entire life cycles, including, but not limited to, project definition, procurement, development, implementation, operation, performance evaluation, and enhancement or retirement.”
Notes:
For links to enabling legislation for VITA and the ITIB, go to

36. ITIM PORTFOLIO INFORMATION OVERVIEW (CURRENT AND FUTURE)
Commonwealth Strategic Planning Process
Assets Includes Services
(Future)
ITIM Processes
Projects
(Current)
Commonwealth Technology Portfolio (ProSight)
Notes:
The Commonwealth Technology Portfolio (CTP) is the executive branch repository for technology investments, and is an aggregated view of individual agency projects and procurements supporting Commonwealth and agency business strategies. The CTP documents the current “as-is” view of projects and procurement, and facilitates selection of technology investments for the migration to the “to-be” enterprise architecture. The selection of technology investments, and migration to the "to-be" architecture, begins with a comprehensive analysis of the current ("as-is") technology portfolio. When the “as-is” state is understood, the Commonwealth can evaluate the ability of the portfolio to meet the strategic goals and objectives, and/or address critical business needs, and select IT investments that best support agency missions and the business activities of the Commonwealth. In the future, assets (infrastructure services and solutions) will be added to the CTP.
Procurements
(Current)

37. A COMMONWEALTH ITIM SUCCESS STORY - DEQ
Document Management Implementation
DEQ had a business need for consistent records management processes that included quick, efficient, and reliable electronic access to documents
Documented need in the Agency Strategic Plan
Business need aligned with the goals and objectives from the Council on Virginia’s Future
Identified need for IT investment to CIO
Notes: Self-explanatory.

38. A COMMONWEALTH ITIM SUCCESS STORY – DEQ (continued)
Document Management Implementation
Commonwealth CIO reviewed the business case in the portfolio and saw a potential for an Enterprise effort
DEQ worked with the CIO to consolidate document management requirements across the Commonwealth
VEAP took lead on setting up Enterprise contracts
Enterprise investment opportunity and resulting contracts would not have been identified without following ITIM best practices
Notes: Self-explanatory.