When IT Investments Go Off Track

1. When IT Investments Go Off Track Patricia E. Healy Former Deputy CFO USDA CFO Sage

2. USDA COTS Financial System Implementation 1998 • Suspended Project for 3 months to examine status • CIO IV&V highlighted problem areas • Formed executive oversight committee – manage culture and empower project director (Sec., CFO, CIO, Budget, OCG, Agency Administrators) • Decision to move forward due to significant risk of existing legacy systems • Reorganized PMO – dedicated staff • New budget & implementation schedule with goal to accelerate if possible • Managed scope & expectations • Implemented new Project Plan, SDLC, Configuration Board, Testing, Telecom plan – moved data warehouse (reports risk) • Worked closely with CIO and program areas; kept IG & GAO in the loop.

3. Lessons Learned • Major technology projects involve far more than technology • They are major change management initiatives that alter the way and organization operates, including what work it performs, by whom, where and using what processes • Often link data for the first time, including data from sources outside the purview of the project • Affect and involve organizations beyond the project management office and beyond the organization that initiated them • Need to be prepared to work across the organization and to seek advice and counsel from external sources • Need strong leadership and direction from the top and empowerment for the project sponsor and project director

4. Critical Success Factors Large IT Projects • Ensure Senior Exec Support – secretary/subcabinet/administrator • Ensures holistic strategic management vision for the organization • Helps manage cultural environment • Facilitates communication • Addresses project implementation issues across organizational units • Focuses resources to address unexpected issues when they arise • Empowers project managers so they will be successful • Ensure Senior Mgt Involvement/commitment/expertise • Helps get best and most strategic functional people committed to project for requirements or implementation • Facilitates communication throughout the organization as project progresses • Manages organizational/business change in units outside PMO

5. Critical Success Factors Large IT Projects • Instituting and maintaining a strong governance structure • Senior mgt commitment demonstrates importance of project and ensures proper levels of oversight and commitment • Executive Oversight Committees need to meet frequently, be conversant with the project and be ready to address issues presented by PM or PS • Must be clear about the goals of the project and these goals must remain consistent throughout the project and be continuously communicated. • Roles, responsibilities and decision rights must be clear • Consider advisory boards (internal/external) • Providing sufficient project management expertise/empowerment • Need strong project managers with demonstrated PM experience • PMs need the support of strong executive project sponsors • IT projects depend on effectively managing people and events – your best technical person may not be your best management person • Major IT projects are large management and governance tasks – technology is important but will not guarantee success. Must manage people, events, culture and know the technology

6. Critical Success Factors Large IT Projects • Adequately Define Requirements/Avoid Scope Creep • Limit goals of project to an achievable number. • Devote a core group of forward-looking functional agency experts • Supplement core group with outside technical expertise for best practices and emerging technologies • Address BPR and Standards along with IT effort • Do not customize COTS • Vigorously challenge and require detailed justification for scope changes • Leave open doors in software to add on later or link up other systems • Pair a “Big Vision” with incremental implementation • Strategic, conceptual framework for operations is necessary to streamline operations, realize efficiencies/cost savings • Fund and implement overtime building on demonstrated success.

7. You’ve Gotta Have Friends • Hurricane Katrina • COOP/DR (government-wide payroll & USDA financial management) • Caring for the Staff (CIO/CAO/Operations/USDA, Other Agency & Contractor Assistance) • Building a Data Center in 8 weeks • Cooperation in an emergency • What a deadline really means • Converting 2 agencies to payroll in the midst of the aftermath of the storm • IT Security • With limited resources in CFO and CIO – need to find ways to work together on common issues • An internal control issue that CFO and CIO can work on. • Intersects of FISMA & and OMB Circular A-123

8. You Always Have the Perfect Plan Until You Start Executing It • Plan well, but avoid analysis paralysis – get to execution in increments with demonstrated success and proof points • Plan for the unexpected during a project and use your governance structure to help you handle it • Keep your eyes on the execution on the goals • Don’t be afraid to change the plan or admit that something is not working • Communicate up and out and often – no one likes surprises • Keep the business owners engaged and involved • You will need help outside the project – ask for it and welcome it • Make friends with your peers in other areas – other perspectives are valuable