0 analysis document task 8 recommendations for telework cost policy may 1, 2006

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Analysis Document

Task 8Recommendations for Telework Cost Policy

May 1, 2006

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Table Of Contents

Introduction

Methodology

Telework Program Investment Considerations

Policy Guidelines to Enhance Telework Value

Findings and Conclusions

Appendix A – Value Measuring Methodology (VMM)

Appendix B – Capital Planning and Investment Control (CPIC) Process

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This report provides recommendations for technology investment strategy and value management policies for telework programs

This report on Recommendations for Telework Cost Policy is the eighth in a series of reports from the Telework Technology Cost Study

The overall study has three primary objectives

– Describe the current telework technology environment

– Estimate the costs of expanding telework supporting technologies so the infrastructure can support 25% to 50% of the federal workforce teleworking

– Provide recommendations on how best to expand the telework supporting infrastructure

This report provides a strategic framework and policy recommendations for maximizing the value of telework investments and thereby enhancing the cost justification and return on investment

The information in this report will help government executives fully consider the multiple benefits of telework when making investment decisions and developing cost-related telework policies

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Information for this study was collected from several sources within sixteen organizations that were chosen to be representative of the entire Federal Government

The Booz Allen team conducted interviews, focus groups, and surveys of Chief Information Officer staff, Telework Program Coordinators, Teleworkers, and Managers of Teleworkers, respectively

Ten Departments participated in the study:– Department of Agriculture Department of Interior

– Department of Commerce Department of Justice

– Department of Education Department of Transportation

– Department of Health and Human Services Department of the Treasury

– Department of Housing and Urban Development Department of Veterans Affairs

Five Independent Agencies and one Departmental Component also participated in the study:– Equal Employment Opportunity Commission National Science Foundation

– General Services Administration Securities And Exchange Commission

– National Aeronautics and Space Administration U. S. Coast Guard (Department of Homeland Security)

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This report gives government executives guidance for making wise investment decisions for enhancing and expanding telework

Several prior reports in this study have concluded that telework programs are in need of specific technologies, as well as new plans for organization, management, and enhancement, all of which require the agency to make a considerable financial commitment

History has shown that the strategic focus and investment capital for telework programs is often lacking, and this is one of the primary roadblocks holding back initiatives for large scale telework expansion

– One potential reason executives are reluctant to make large telework investments is that the direct financial return is often unclear

– However, the cost justification becomes much more compelling when value is considered from multiple points of view – including value that cannot be quantified in dollars and cents

This report illustrates the disadvantages of the current decentralized approach to telework program support and describes how a wide range of benefits can be appreciated through an enterprise-wide telework investment strategy

Furthermore, a number of government-wide and agency-level policies are recommended to help guide telework investment decisions, manage telework costs, increase telework program value, and ultimately help the government gain maximum return on telework investments

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Table Of Contents

Introduction

Methodology






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High-Level Data Synthesis Data Sources

• Administered surveys to teleworkers and managers of teleworkers to obtain information about telework technology availability, usage, and performance

• Conducted focus groups with Telework Program Coordinators to obtain information about telework program history and current state, technology issues, policy issues, and plans for expansion

• Conducted interviews with CIOs and other IT staff members to obtain information about the current status of the telework infrastructure and plans for enhancement

Data Collection From Three Sources in 16

Government Organizations

Development of a Series of Reports on Telework Technology

and Related Costs

• Distilled information about the need for policy improvements obtained throughout the data collection process

• Conducted discussion sessions with telework and technology experts to determine additional policy recommendations

• Used frameworks of the Capital Planning and Investment Control (CPIC) process and Value Measuring Methodology (VMM) value factors to organize and develop additional recommendations *

• Combined and elevated recommended policies to a strategic level appropriate for executives

• Further categorized recommended policies into those intended for agencies and those for government-wide oversight agencies

High-Level Synthesis of Findings to Determine Key Strategic Policy

Recommendations

Information from several detailed reports from this study was distilled into executive-level strategic guidance and policy recommendations

Detailed Reports

• Several reports in this study have established the technologies, costs, and enhancement plans required for telework expansion

• Reports from Task 2, Task 3, and Task 4 specify the technology components needed for scalability

• Reports from Task 2 and Task 5 detail the costs required for recommended technology enhancements

• Reports from Task 6 and Task 9 incorporate the technology and cost requirements from the other reports and provide recommendations for initiating and implementing telework program enhancement and expansion plans

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* See Appendix for more details about the CPIC process and the VMM value factors

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Study findings and industry expertise were used to develop a comprehensive list of recommended cost and telework value enhancement policies for use by agency decision-makers

A multi-step process was used to develop the information and comprehensive policy recommendations for this report

– Compiled the study data specifically addressing the need for policy improvements

– Facilitated discussions with telework and technology experts to determine additional policy recommendations

– Used CPIC and VMM frameworks to organize and develop additional recommendations

– Elevated recommended policies to a strategic level appropriate for executive consideration and categorized them as agency-specific and government-wide

This report presents a high-level discussion of value factors and policy considerations for enhancing and expanding agency telework programs, including:

– Incorporating telework into strategic enterprise planning

– Developing policies to enhance the strategic value of telework programs

– Specific policy recommendations for managing costs and maximizing success of telework improvement initiatives

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Table Of Contents

Introduction

Methodology






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Recognizing the multiple strategic benefits of telework programs can support a strong cost justification for telework investments

Telework programs have historically been considered a low-priority employee “perk” and therefore do not often receive dedicated funding or full consideration of their strategic value

However, telework programs have a high potential for strategic coordination with important enterprise-wide initiatives and can reap many different kinds of benefits for the organization

By taking these multiple benefits into account, organizations will likely find a compelling cost justification for enhancing their infrastructures and expanding telework programs

– Slight modifications to the traditional Capital Planning and Investment Control (CPIC) process can help broaden strategic thinking about telework investments and their value

– Similarly, the Value Measuring Methodology (VMM) is a robust, comprehensive approach to recognizing and analyzing investment benefits in several value factors

The CPIC and VMM frameworks are used to organize the discussion and recommendations

– In this section, CPIC modifications are proposed as a way to elevate telework planning to the enterprise level

– In the next section, telework value considerations and policy recommendations are aligned with the VMM value factors

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The current approach to telework technology procurement across government organizations is inefficient and lacks strategic focus

Current Approach to Telework Capital Investment Planning

B: Moderate telework investment – provides refreshed computer equipment and calling cards

A: Minimal telework investment – Allowed only for medical or disability situations

C: Considerable telework investment – provides home office equipment and services

Component AComponent B

Component C

Department / Agency

• Telework technology and procurement concerns not viewed as part of overall enterprise planning

• Components authorized to invest in telework as interest and budgets allow

• Telework investments not tracked

DECENTRALIZED PLANNING

TOP-LEVEL STRATEGIC PLANNING

Different Investment Strategies Across Different Organizational Components

Lack of Enterprise Capital Plan for Telework Results of Current

Process

•Administrative and procurement inefficiencies•Agency “mixed messages” about telework support•Lack of coordination between components•Low telework participation numbers•Diminished overall effectiveness of telework program

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An enterprise-level capital planning process will help enhance telework program efficiencies, benefits, and overall strategic value

Continuity of Operations (COOP) readiness for public health, weather, and other emergencies

Accessible, modernized applications that allow staff to perform their work regardless of location

Adaptable applications that support changing business needs of organizations

Legislative Compliance and alignment with ongoing Congressional interest

Opportunities for real estate savings

Coordinated standards for technology configuration

Enhanced organizational process efficiencies

Ability to appreciate economies of scale

Reduction of traffic congestion and pollution

Compliance with OPM and GSA guidance

Potential for increased employee productivity while teleworking and during office closures

Increased recruitment and retention potential

Potential for increased workforce diversity

Enhanced public image (“employer of choice”)

Increased work opportunities for people with disabilities

Improved support of mobile workers

Potential for tax incentives (in some states)

Continuity of Operations (COOP) readiness for public health, weather, and other emergencies

Accessible, modernized applications that allow staff to perform their work regardless of location

Adaptable applications that support changing business needs of organizations

Legislative Compliance and alignment with ongoing Congressional interest

Opportunities for real estate savings

Coordinated standards for technology configuration

Enhanced organizational process efficiencies

Ability to appreciate economies of scale

Reduction of traffic congestion and pollution

Compliance with OPM and GSA guidance

Potential for increased employee productivity while teleworking and during office closures

Increased recruitment and retention potential

Potential for increased workforce diversity

Enhanced public image (“employer of choice”)

Increased work opportunities for people with disabilities

Improved support of mobile workers

Potential for tax incentives (in some states)

Ad

dit

ion

al

Ben

efit

sTelework Program

Disaster Preparedness &

Continuity of Operations

Enterprise Modernization

Multi-use Tools and

Capabilities

Shared Costs, Risks, and Benefits with Other Enterprise Initiatives

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Four minor enhancements throughout the standard CPIC process help integrate telework into enterprise-level planning and maximize the value and flexibility of technology investments

*Appendix A provides more information and the Task 7 Report presents sample business cases developed using the CPIC process

Evaluate the quantitative and qualitative benefits of potential telework investments (e.g., using VMM)

Consider whether the potential investments will be multi-use (i.e., will they support telework as well as other business requirements?)

Evaluate the quantitative and qualitative benefits of potential telework investments (e.g., using VMM)

Consider whether the potential investments will be multi-use (i.e., will they support telework as well as other business requirements?)

Include compliance with telework legislation as another screening criteria (along with the Federal Information Security Management Act [FISMA], Enterprise Architecture [EA] plan, etc.)

Include compliance with telework legislation as another screening criteria (along with the Federal Information Security Management Act [FISMA], Enterprise Architecture [EA] plan, etc.)

Determine whether telework investments are delivering multi-use benefits (i.e. are they supporting telework as well as other business requirements?)

Determine whether telework investments are delivering multi-use benefits (i.e. are they supporting telework as well as other business requirements?)

Capital Planning and Investment Control Process*

Potential Enhancements

Potential Enhancements

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3

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Table Of Contents

Introduction

Methodology






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Government decision makers need information for comparing cost, benefit – both financial and non-financial, and risk that quantifies projected results in a meaningful and accurate manner

In July 2001, Social Security Administration (SSA) and General Services Administration (GSA) engaged Booz Allen Hamilton and Harvard University’s Kennedy School of Government to develop an effective methodology to assess the value of electronic services (e-Services)

The resulting Value Measuring Methodology (VMM)* was developed to be flexible, scaleable, and customizable

– Its guiding principles and consideration of risk, value and cost are universally applicable in the government environment

– This methodology enables important insight into the true business value of many types of investments

The groundbreaking VMM approach provides a means to quantify financial and non-financial value using five factors

– Direct User (Customer) Value– Social (Non-direct User/Public) Value– Government Operational/ Foundational Value– Government Financial Value– Strategic/Political Value

*Appendix B provides more information and the Task 7 Report presents sample business cases developed with the VMM framework in mind

What Could Make Costs Go Up or

Performance Slip From Projected Levels?

How muchwill it cost to buy?

How much will it cost to operate and

maintain?

What benefits will the investment provide to all interested parties?







maintain?



maintain?



VMM Key Considerations

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Using VMM to Guide Policy Development

•The VMM value factors can serve as a framework to develop investment and management policies for telework•The value factors overlap, so policies to increase the benefit in one factor can maximize overall telework value•Enhancing total benefit of telework helps support a positive return on investment

Quantifying value enables agencies to fully appreciate its interaction with cost when making decisions about telework investments

Things to Note About Using VMM• Different investment scenarios yield different potential values• VMM value factors help evaluate the full range of potential benefits associated with

different investment options • Similarly, these value factors can identify and structure policies to help maximize value• These policies focus efforts to fully realize the potential value of the investment and thus

support a stronger positive return on investment

Things to Note About Using VMM• Different investment scenarios yield different potential values• VMM value factors help evaluate the full range of potential benefits associated with

different investment options • Similarly, these value factors can identify and structure policies to help maximize value• These policies focus efforts to fully realize the potential value of the investment and thus

support a stronger positive return on investment

VMM Value Factors Used toEvaluate Individual Telework Investment Options

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$- $5 $10 $15 $20 $25 $30 $35 $40

C O S T ($M)

V A

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Direct User

Social

Gov’t Operational/ Foundational

Gov’t Financial

Strategic/Political

VMM Value Factors

BasicInfrastructureRamp-up

IdealInfrastructureRamp-up

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$- $5 $10 $15 $20 $25 $30 $35 $40

C O S T ($M)

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Direct User

Social

Gov’t Operational/ Foundational

Gov’t Financial

Strategic/Political

VMM Value Factors

BasicInfrastructureRamp-up

IdealInfrastructureRamp-up

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The five VMM value factors help identify, define, and quantify the financial and non-financial benefits of telework investments

Value Factors Description Relevant Telework Benefits

Direct User (Customer) Value

Value associated with the delivery of high-quality, citizen-centered services

Realization of value in this factor typically drives the realization of value in all the other factors

Enhanced Quality of Work Life – Telework affords employees flexibility to better accomplish work and non-work responsibilities

Workforce Improvements – Telework has been found to increase employee productivity, morale, and retention

Social (Non-direct User/Public) Value

Secondary or indirect benefits directly attributable to the investment under consideration

Society benefits anytime the government is a good steward of public funds

Environmental/Civic Benefits – Widespread telework reduces traffic congestion and pollution due to fewer daily commuters

Continuity of Operations – Telework program can be used to help government work continue during emergencies

Potential Real Estate Savings – Telework enables reduced need for office space, resulting in taxpayer savings

Government Operational/ Foundational Value

Value associated with investments in building up the infrastructure - whether in staff skills or technology - required to accommodate a changing environment


Enhanced Recruiting – Telework is an attractive benefit that gives agencies a competitive advantage in recruiting high-quality candidates

Government Financial Value

Traditional direct cost information used in financial return-on-investment ratios

In the past, only this value was quantified and factored into decision metrics


Potential Real Estate Savings – Telework enables reduced need for office space, resulting in taxpayer savings

Strategic/Political Value

Captures and quantifies the value associated with advancing organizational and government-wide initiatives and mandates

Legislative Compliance – Agencies are required to provide telework opportunities to all eligible staff


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Agency-specific policy guidelines help organizations build mature telework programs, maximize their benefits, and become better stewards of the taxpayer dollars used to support them

Agency Policy Recommendation Description of Value

VMM Value Factors

Direct U

ser

Social

Gov’t O

perational

Gov’t F

inancial

Strategic/ P

olitical

Implement comprehensive planning and coordination efforts related to telework

For example:– Incorporate telework into

enterprise budgeting and planning– Incorporate telework into related

enterprise programs (e.g., modernization, COOP)

– Investigate potential avenues for cost savings when making telework investments (e.g., GSA schedules, negotiated rates, bulk discounts)

– Use the VMM framework to capture the tangible and intangible benefits of telework and incorporate telework into the CPIC process

Comprehensive planning and coordination efforts would institutionalize the telework program, providing an agency greater managerial and administrative control

Inclusion of telework into other initiatives, such as COOP, better positions the organization to be responsive and flexible in unexpected circumstances

Coordinated enterprise-wide planning that includes financial and non-financial benefits will result in balanced investments that serve as an advantage to the entire organization

Yes Yes Yes

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Agency-specific policy guidelines help organizations build mature telework programs, maximize their benefits, and become better stewards of the taxpayer dollars used to support them (continued)


VMM Value Factors

Direct U

ser

Social

Gov’t O

perational

Gov’t F

inancial

Strategic/ P

olitical

Provide technical and managerial support for teleworking employees

For example:– Modernize the enterprise

architecture and infrastructure to improve the ability to support employees’ execution of the organization’s mission

– Make collaboration tools part of the enterprise architecture

– Develop/enhance telework training for teleworkers, technical support staff, managers, and/or others as appropriate

Providing better infrastructure, tools, training, and technical support would enhance employees’ ability to communicate and perform work functions regardless of location

Making administrative functions available electronically and giving applications standard web interfaces benefits the organization overall by allowing greater access to agency applications and information

Building a common understanding of telework tools and processes could enhance enterprise efforts to standardize IT procedures and protect agency information

Improving proficiency in the use of technologies could enable teleworkers to perform more of their job tasks remotely

Yes Yes Yes Yes

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Agency-specific policy guidelines help organizations build mature telework programs, maximize their benefits, and become better stewards of the taxpayer dollars used to support them (continued)


VMM Value Factors

Direct U

ser

Social

Gov’t O

perational

Gov’t F

inancial

Strategic/ P

olitical

Provide a basic set of equipment and services for telework

For example:– Make laptops the standard issue

for all staff– Provide peripheral equipment to

teleworkers and others, as appropriate

– Provide broadband support to teleworkers and others, as appropriate

Providing up-to-date, basic equipment would enable employees to perform daily work functions while away from the office

A standardized, one-computer environment would ensure that employees have access to their current work on local disk drives regardless of location

The one-computer environment would also streamline costs, and enable better technical support

Providing basic equipment and services would position employees to share files, access agency systems, and collaborate with co-workers in a timely manner, regardless of location

Yes Yes Yes Yes Yes

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Government-wide policy guidelines can help integrate telework considerations into enterprise-level decisions

Government-wide Policy Recommendation

Description of Value

VMM Value Factors

Direct U

ser

Social

Gov’t O

perational

Gov’t F

inancial

Strategic/ P

olitical

GSA Negotiate government rate for broadband

Working with major telecommunications carriers could establish government rates to avoid potential billing issues between consumer class and business class services, as well as save agencies money through economies of scale

Yes Yes Yes Yes Yes

OMB Include telework line item in Exhibit 300

Evaluating whether new technology requests support telework would highlight the need to integrate telework into enterprise-level planning

Yes Yes

OMB Include telework in agency scorecard

OMB measurement of telework progress would elevate its importance in contributing to Expanded Electronic Government and hold agencies accountable for compliance with multiple levels of Legislative and Executive initiatives

Yes Yes

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Government-wide policy guidelines can help integrate telework considerations into enterprise-level decisions (continued)

Government-wide Policy Recommendation

Description of Value

VMM Value Factors

Direct U

ser

Social

Gov’t O

perational

Gov’t F

inancial

Strategic/ P

olitical

Congress

Provide financial incentives for agencies promoting telework

Incentivizing agencies could encourage the implementation and enhancement of well-rounded telework programs

Yes Yes Yes Yes

CIO Council

Endorse requirement that any application development should be web-enabled

Moving to web services away from client-server and other legacy architectures provides an improved user interface and application flexibility

Yes Yes Yes

CIO Council

and

GSA

Endorse the use of VMM when evaluating potential telework investments

Implementing an established framework for evaluating telework investments could promote a more comprehensive view of the full benefits associated with such investments

Yes Yes Yes

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Table Of Contents

Introduction

Methodology






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Agencies should adjust their policies and strategic vision to incorporate telework into enterprise-wide planning, maximizing total agency benefits and return on investment

Agencies should follow an enterprise-wide approach to telework program investments in order to maximize strategic value, efficiencies and cost savings over time

Investments in telework support the entire organization and support several critical agency-wide objectives, including:

– Enhancement of Continuity of Operations Programs (COOP)

– Information technology modernization efforts

– Legislative compliance

Agencies need to measure the total value of telework – both financial and non-financial – when evaluating potential telework investments; the multiple telework benefits will lead to more compelling cost justifications

Focusing policy improvements in three areas will help agencies realize the potential benefits of telework

– Comprehensive and coordinated telework program planning

– Technical and managerial telework program support

– Provision of basic equipment and services for teleworkers

Furthermore, government-wide oversight organizations should provide guidance and structure to encourage agencies to elevate telework program planning to a more strategic, enterprise-wide level

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Table Of Contents

Introduction

Methodology






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The Value Measuring Methodology is a structured approach for investment analysis that can be used to evaluate potential telework infrastructure enhancements

VMM PROCESS

Step 1. Develop a Decision FrameworkIdentify and Define the Value Structure – including the five Value Factors (Direct User, Social, Government Operational/Foundational, Government Financial, and Strategic/Political)

Prioritize the Value Factors Identify and define the value measures Prioritize the value measures

Identify and Define the Risk Structure – including risk inventory and risk probability and impact scale

Identify and Define the Cost Element Structure

Begin Documentation

Step 2. Alternatives AnalysisIdentify and Define Alternatives – should be based on the information in the Value and Risk Structures

Estimate Value and Cost

Conduct a Risk Analysis

Step 3. Integrate InformationAggregate the Cost Estimate

Calculate the Return-on-Investment – ROI metric often used by the Federal Government is the Savings to Investment Ratio

Calculate the Value Score – aggregate the estimated performance against the value measures according to the assignment Value Factor and value measure weights

Calculate the Cost and Value Risk Scores

Compare Value, Risk, and Cost

Step 4. Communicate and DocumentCommunicate the overall value of an initiative to a variety of stakeholders

OUTCOMES

Step 1 Decision Framework Global assumptions Project-specific drivers and

assumptions Documentation of research and

prioritization sessions

OUTCOMES

Step 1 Decision Framework Global assumptions Project-specific drivers and

assumptions Documentation of research and

prioritization sessions

Step 4

Support / justification for budget requests

Step 4

Support / justification for budget requests

Step 2 Expanded descriptions of the

alternatives Complete, comprehensive list of

both cost and value assumptions Assumptions regarding the risks

associated with a specific alternative

Step 2 Expanded descriptions of the

alternatives Complete, comprehensive list of

both cost and value assumptions Assumptions regarding the risks

associated with a specific alternative

Step 3

Insight into cost, values, and risks of all alternatives

Step 3

Insight into cost, values, and risks of all alternatives

Source: Booz Allen Hamilton’s “Value Measuring Methodology White Paper”

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Table Of Contents

Introduction

Methodology






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Appendix B – Capital Planning and Investment (CPIC) process

Utility of the CPIC Process

Guides development of sound business cases, including Exhibit 300s & Exhibit 53s

Ensures compliance and alignment with multiple government regulations and strategies

– President’s Management Agenda

– Government Performance and Results Act of 1993 (GPRA)

– Full implementation of IT security, privacy and electronic transactions policies

– Alignment with organization strategies and performance measures

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Appendix B – Capital Planning and Investment (CPIC) process (continued)

CPIC Phase 1 – Pre-Select

The Pre-Select phase provides a process to assess a current investment’s support of agency strategic and mission needs and to provide initial information to further support investments

There are significant information requirements and a potential expenditure of funds in the preliminary planning phase to prepare for review and selection of IT investments

– Identify the business/mission need

– Establish relationships to the Department and/or agency strategic planning efforts

- For example, it assesses compliance of proposed business solution with Department’s Target Enterprise Architecture (EA), as well as with key security requirements such as FISMA

– Provide opportunity to focus efforts and further the development of the initiative’s concept

– Allows project teams to begin the process of defining key components of the business case:

- business requirements and associated system performance metrics

- performance measures, benefits, and costs

- subsequent completion of a business case and project planning efforts in preparation for inclusion in the Department’s investment portfolio

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CPIC Phase 2 – Select

In the Select phase, the agency ensures the IT investments that best support the mission and the Department’s approach to enterprise architecture, are chosen and prepared for success (i.e., have a qualified project manager analyze risks, etc.)

– Individual investments are evaluated in terms of technical alignment with other IT systems and projected performance as measured by cost, schedule, benefit, and risk (CSBR)

– Milestones and review schedules are also established for each investment during the Select phase

In this phase, the agency prioritizes each investment and decides which investments will be included in the portfolio

– Investment submissions are assessed against a uniform set of evaluation criteria and thresholds

– The investment’s CSBR are then systematically scored using objective criteria and the investment is ranked and compared to other investments

– Finally, the organization selects which investments will be included in the Department’s portfolio

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CPIC Phase 3 – Control

The objective of the Control phase is to ensure, through timely oversight, quality control, and executive review, that IT initiatives are conducted in a disciplined, well-managed, and consistent manner

– Investments should be closely tracked against the various components identified in the risk assessment and mitigation plan developed in the Select phase

– This phase also promotes the delivery of quality products and results in initiatives that are completed within scope, on time, and within budget

– During this process, senior managers regularly monitor the progress/performance of ongoing IT investments against projected cost, schedule, performance, and delivered benefits

Although the organization usually selects new investments annually, the Control phase is an ongoing activity

– It requires the continuous monitoring of ongoing IT initiatives through the development or acquisition lifecycle

– Agency reviews occur before the annual budget preparation process

– Additionally, periodic summary reviews are completed based on the review schedule completed during the Select phase

The Control phase is characterized by decisions to continue, modify, or terminate a program

– Decisions are based on reviews at key milestones during the program’s development lifecycle

– The focus of these reviews changes and expands as the investments move from initial concept or design and pilot through full implementation and as projected investment costs and benefits change

– The reviews focus on ensuring that projected benefits are being realized; cost, schedule and performance goals are being met; risks are minimized and managed; and the investment continues to meet strategic needs

– Depending on the review’s outcome, decisions may be made to suspend funding or make future funding releases conditional on corrective actions

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CPIC Phase 4 – Evaluate

The purpose of the Evaluate phase is to compare actual to expected results after an investment is fully implemented

– This is done to assess the investment’s impact on mission performance, identify any investment changes or modifications that may be needed, and revise the investment management process based on lessons learned

– As noted in GAO’s Assessing Risks and Returns: A Guide for Evaluating Federal Agencies’ IT Investment Decision-Making, “the evaluation phase ‘closes the loop’ of the IT investment management process by comparing actuals against estimates in order to assess the performance and identify areas where decision-making can be improved”

The Evaluate phase focuses on outcomes:

– Determining whether the IT investment met its performance, cost, and schedule objectives

– Determining the extent to which the IT capital investment management process improved the outcome of the IT investment

The outcomes are measured by collecting performance data, comparing actual to projected performance and conducting a post implementation review (PIR) to determine the system’s efficiency and effectiveness in meeting performance and financial objectives

– The PIR includes a methodical assessment of the investment’s costs, performance, benefits, documentation, mission, and level of stakeholder and customer satisfaction

– The PIR is conducted by the agency, and results are reported to the OCIO and E-Board to provide a better understanding of initiative performance and assist the project sponsor in directing any necessary initiative adjustments

– Additionally, results from the Evaluate phase are fed back to the Pre-Select, Select, and Control phases as lessons learned

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CPIC Phase 5 – Steady-State

The Steady-State phase provides the means to:

– Assess mature investments

– Ascertain their continued effectiveness in supporting mission requirements

– Evaluate the cost of continued maintenance support, assess technology opportunities

– Consider potential retirement or replacement of the investment

The primary review focus during this phase is on the mission support, cost, and technological assessment

Process activities during the Steady-State phase provide the foundation to ensure mission alignment and support for system and technology succession management

0 analysis document task 8 recommendations for telework cost policy may 1, 2006

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