1. Enterprise Strategic Planning Digital Government Summit September 14, 2006

2. Enterprise Strategic Planning Aligning technology with business needs on an enterprise level is one of the foremost challenges in government today. Tying it all together requires stakeholder collaboration and a broad analysis of objectives, costs, resources, and timelines. Projects must be looked at in light of their true drivers, and business leaders must be engaged throughout the entire process. In this session, we will discuss successful strategies in planning, prioritization, collaboration, and motivation.

3. The ABCs of Strategic Planning The first step is to develop a realistic ‘Vision’ for the organization. This should describe the desired organization as you envision it to exist in three or more years time (aka: the planning horizon). The nature of the organization is often expressed in its ‘Mission’ which indicates the primary purpose of the organization, or basically identifies why the organization exists.

4. The ABCs (cont.) The next element is to address the ‘Values’ which govern the routine operation of the organization and its conduct or relationships with its key stakeholders and constituents. Next, an organization’s leaders should explicitly state their ‘Objectives’ in terms of the specific (and measurable) results that they need or want to achieve within a given time period.

5. The ABCs (cont.) Next are ‘Strategies’ (aka: roadmaps) – these consist of high- level plans, guidelines, and overall approach by which the mission, objectives etc. may be achieved. Then come the ‘Goals’ - these are specific interim or ultimate time- based measurements (aka performance metrics) to be achieved by implementing the defined strategies in pursuit of the organization's objectives.

6. The ABCs (cont.) These elements are then organized into specific business initiatives or ‘Programs’ which set forth the overall business requirements and objectives as well as providing high- level plans for implementing the key strategies. The programs are then distilled down to ‘Projects’ which are the implementing mechanism for accomplishing the specific business requirements and objectives identified at the program level. Multiple projects are typically required under each program.

7. Benefits of Strategic Planning Promotion of Strategic Thinking, Acting, and Learning –Involves systematic information gathering, clarification of direction, and organizational prioritization. Improved Decision Making & Increased Results –Focuses attention on the crucial challenges the organization faces and the decisions/actions required to resolve them. Enhanced Organizational Effectiveness –Clarify and address major issues, respond to internal and external demands, and deal with changing circumstances. Broader Societal Systems & Solutions –Major challenges in health, education, and welfare need to be addressed at the enterprise level, not the organizational level. Direct Benefit to Decision Makers –Strategic Planning can help Key Decision Makers fulfill their Individual Roles and Responsibilities.

8. Key Success Factors Communication Cooperation Coordination Collaboration

9. Tools & Techniques Conducting a Strategic Analysis

10. SWOT Analysis

11. Business Analysis Interviews Surveys Shared Databases Focus Groups Benchmarking Related Research

12. Business Process Management Engage ‘key decision makers’: agency directors; business process owners; chief financial officers; and other major stakeholders Assess the ‘current state’ of affairs: business and financial situation, political environment, constituent needs, etc. Define ‘desired state’ of affairs: major goals, objectives, and expectations that address the challenges identified above. Perform ‘gap analysis’: Assess internal capabilities; external business drivers; and then identify the activities or actions necessary to move to desired state. Identify the ‘road map’: document and prioritize the key business initiatives, programs, and projects required to meet business objectives.

13. Business Drivers State Government Model

14. Key Stakeholders Governor (Executive Branch) State Legislature (Law Makers) Agency Directors / Secretaries Federal Programs & Grants Constituents / Taxpayers State Business Community

15. Key Decision Factors Is this a mandated program? Is grant funding available? Opportunity for cost savings? Opportunity for cost avoidance? Opportunity for revenue generation? Is this a strategic initiative? Is this an end of lifecycle issue? What is the urgency of need? What is the strategic value added? What is the impact on other programs/projects? Do we have the technical capability to implement? What is the impact on existing applications or assets? What is the availability of funding and resources? What is the fiscal impact? What are the maintenance and support requirements? What is the total cost of ownership? What is the return on investment? What is the impact of not pursuing this program/project?

16. Interconnected Roles of Government Social Services Public Safety Environmental and Economic Development Health Care Higher Education Regulatory and Administrative

17. Organizational Considerations State Government Model

18. Distributed Model (Historic) CMS HFSDOTDPHEPADORDHSDNRDESAGRDCEODFPR

19. Impetus for Change New administration – with significant private sector experience State budget crisis – need to dramatically reduce spending Aging and retiring workforce Difficulty in attracting and retaining new technical staff Obsolete equipment and a general lack of IT infrastructure standardization Multiple contracts for the same or similar business solutions

20. Shared Services Model (Current)

21. Integrated Process State Government Model

22. Strategic Planning Conducted at the executive level: Agency Directors, Secretaries, Bureau Chiefs, etc. Must be integrated into the Enterprise Strategic Plan (managed by CMS) Establishes the strategic business initiatives (aka: ‘Programs’ Establishes the basis for budget submittals and headcount requests Focused on business requirements and objectives

23. Budgetary Planning Process Prioritize and rank order projects: senior management must determine which business initiatives and projects are most important to the organization. Develop budgetary estimates of the dollars, resources, and time required to achieve each proposed project. Collaborate with Shared Services organization to determine the strategic alignment and feasibility of planned implementation. Develop budgetary dollar, time and headcount estimates to prepare annual budget submittal. Initiate proposed projects by submitting project charters through the Governance process

24. Project Portfolio Identify IT Programs & Projects (in advance) Business requirements drive ranking and prioritization Forecast funding and resource requirements Identify interdependencies and constraints Facilitate pre-planning for long lead-time items (e.g., Master Contracts) Facilitate Governance process (alignment and standardization) Supports Resource and funding allocation planning

25. IT Governance Project Charter Functional Requirements Non-Functional Requirements Financial Analysis Detailed Design

26. Project Qualification & Activation Architecture Rationalization Board Management Review Board Investment Review Board Enterprise Program Management Office

27. Summary Strategic Planning must start at the Executive Level and senior management must remain engaged throughout the entire process Strategic Planning is an iterative and collaborative process – all stakeholders must participate and contribute in order for the process to work effectively Strategic planning, the budget process, the program & project portfolio, governance, and project management are all part of one integrated process

28. Questions?