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Building a Portfolio Management solution for the US AF

Built Portfolio Management Solution for the USAF. Great success. Resulted in very efficient program budget review from AF leaders. Presented at Oracle OpenWorld.

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Building a Portfolio Management solution for the US AF

  1. 1. Air Force-Wide Portfolio Management Solution Carolyn Reid May 2011
  2. 2. 2 US AF Oracle PPM Implementation Contents Introduction .................................................................................................................................................................3 The Business Need.......................................................................................................................................................3 The Solution .................................................................................................................................................................3 Project Scope ...............................................................................................................................................................4 USAF Organization ................................................................................................................................4 USAF Portfolio Management Process...................................................................................................5 Process Areas...............................................................................................................................................................5 Initial Pilot – Resource Management....................................................................................................5 Compliance Management.....................................................................................................................7 Capabilities Management.....................................................................................................................7 Lifecycle Management..........................................................................................................................7 Lessons Learned...........................................................................................................................................................8 Results..........................................................................................................................................................................8 Summary......................................................................................................................................................................8
  3. 3. 3 US AF Oracle PPM Implementation Introduction In 2007, the US Air Force (USAF) contracted Primavera (now part of Oracle) to implement their Primavera Portfolio Management (PPM) (formerly ProSight) application. Oracle partnered with Guident consultants for this project. OPPM was implemented to help the Air Force achieve the best mix of forces, manpower, materiel, and support under very tight fiscal constraint. This paper will discuss the business need, the solution, project activities, lessons learned and the benefit to the Air Force. The Business Need Based on an internal review aimed at transforming the Secretary of the Air Force (SAF/CIO A6) division to a process-based organization, the USAF determined that they needed to improve Portfolio Management for the entire Planning, Programming, Budget and Execution Lifecycle. An audit of USAF IT PfM recommended that SAF/XC (Chief of Warfighting Integration and CIO) procure a commercial off-the-shelf tool to assist the levels of PfM in the USAF. SAF/XC analyzed the alternatives to choose an application, and selected ProSight. The audit findings provided several issues to be addressed: • Resolve data integrity issues, • Improve accessibility of data, • Improve processes throughout the USAF, • Eliminate redundant systems and processes, • Eliminate the manual transfer of data for reporting purposes, • Provide visibility into the impact of funding decisions, • Centralize data. The Solution The USAF implemented OPPM to drive an effective enterprise-wide solution to support planning, creating, assessing, balancing and communicating the execution of the USAF Portfolio, as per the How big is the Air Force? Personnel: • 350,000 Active • 69,000 Reserve • 95,000 Air National Guard • 57,000 Civil Air Patrol • 151,000 Civilians Assets: • 5,800 Aircraft (2,200 are Fighters) • 2,200 Cruise Missiles • 450 ICBMs • 180 Combat Aerial Vehicles • 32 Satellites Budget: $170B (FY2011)
  4. 4. 4 US AF Oracle PPM Implementation Department of Defense's (DOD) Planning, Programming, Budgeting and Execution (PPBE) process. The PPBE process was designed for DOD allocation of resources. The goal of PPBE is to achieve the best mix of forces, manpower, materiel, and support under very tight fiscal constraint. This supports the USAF goal to optimize the use of scarce resources to support strategic goals and the Warfighter Integration vision of transformation, transparency and accountability by driving out redundancies and inefficiencies. The goals of this program are to: • Enforce data integrity, • Limit or eliminate data calls, • Allow the organization to be more agile through enhanced data capture and allow on-the-fly adjustments, • Meet compliance and regulatory requirements, • Provide analytics for decision making, • Provide streamlined, shortened, standardized and automated processes, • Centralize data, • Help ensure the achievement of USAF capabilities. This implementation would include all processes related to PfM. This required establishing Process Working Groups across the USAF to standardize processes. These Working Groups included Resource Management, Lifecycle Management, Capability Management and Compliance Management. PfM has taken on additional weight and importance for the USAF. The introduction to the USAF 2011 Budget stated, “The strategic environment is constantly changing, requiring more flexibility to provide the best mix of capabilities and resources to meet the Quadrennial Defense Review and Strategic Review priorities. Interaction across the changing strategic environment creates new and evolving threats that require innovative ways to apply forces, technologies and the resources that enable them.” This statement points to the need for a best practice PfM process to ensure resources can be shifted as strategy changes. Project Scope USAF Organization The Working Group members for this project span across all functional areas of the Air Force. Air Force resources include eight major commands (MAJCOMs), 37 Field Operating Agencies (FOAs), three Direct Reporting Units (DRUs), 96 major installations, and more than 350,000 personnel total. The USAF organization consists of the following areas: • SAF: Secretary of the Air Force • Air Staff: Military Advisors • MAJCOMs: Subdivisions having a specific portion of the USAF Mission • Aerospace: Expeditionary Task Force • Field Units: Major Commands, Field Operating Agencies, Direct Reporting Units • AOC: Air Operations Center
  5. 5. 5 US AF Oracle PPM Implementation • Wings: Distinct Missions with Significant Scope USAF Portfolio Management Process Figure One shows how the DOD standard PPBE processes fit into the PfM lifecycle. Note that the items in parentheses in Figure One indicate different sources and locations of data within the USAF system. Figure 1: Air Force Portfolio Management Process Framework The diagram above shows the major phases, inputs, outputs, and systems supporting the USAF PfM Process. As programs are proposed, decision makers evaluate them against objective criteria established by USAF leaders to ensure that the USAF is funding the most valuable projects. At the Select phase, the major processes include Develop POM, Plan Execution Year and Execution Status Review. Funding Actions are developed as programs need funding. These are prioritized according to objective criteria, and the scores aid decision makers in determining which investments should be funded. Process Areas Initial Pilot – Resource Management The SAF/CIO A6 division chose Resourcing as the first major process to pilot in ProSight. The purpose of this pilot was to: • Provide multi-dimensional analysis to realign funding and communicate funding needs, • Provide financial accountability for budgets in MAJCOM accounts,
  6. 6. 6 US AF Oracle PPM Implementation • Provide visibility and analytical capability to decision makers by: o Applying objective criteria to prioritize the Portfolio, o Presenting the President’s Budget, spend plans, and actual costs within the same database, o Implementing the Execution Status process, analysis and reporting, o Displaying investment justification to optimize decisions pertaining to allocation, o Showing the impacts of changes in funding. The Process PPBE helps USAF achieve the best mix of forces, manpower, materiel, and support under very tight fiscal constraint. Threat assessment defines the National Military Strategy during Planning. This determines the resources needed to meet national objectives, supporting national security and US foreign policy two to seven years into the future. In Programming, the fiscal, manpower and materiel requirements are integrated with the available resources. Budget options are prioritized to create the organization’s Program Objective Memorandum (POM) input, which establishes the future years funding position. These inputs are submitted to HQ USAF. During Budgeting, costs are refined and submitted to the Office of the Secretary of Defense (OSD). Execution focuses on budget execution and program performance. At a high-level, the Resourcing Process consists of four main activities: • Manage the current year execution of SAF/XC funding through the Manage Execution Year process, • Develop the plan to execute next year SAF/XC funding during the Perform Execution Planning process. • Establish the POM, and the resulting official President’s Budget. • Monitor Congressional activities and manage the IT budget submission. Prior to this implementation, President’s Budget, Project Budget Allocations, Execution Planning, Acquisitions and IT PfM information were all in separate databases. It was very difficult to obtain access to accurate and timely information. Achievement of the Pilot Goals The Oracle/ Guident team set up Unfunded Request, Execution Planning, and Execution Status Reviews in ProSight to streamline, shorten and automate these key processes. Initially, the USAF leaders required the information to be transferred from ProSight and presented as MS PowerPoint slides, which they had always used previously. Within a short amount of time, all information required for monthly status reviews came directly from views within ProSight. The Status Review meetings changed from arguments about data to the discussion of root causes of issues and clear understanding of which programs should be funded. At a glance, USAF leaders could then see which programs were spending according to plan. USAF leaders have developed a scoring model based on mission, strategic goals, capabilities and compliance to determine the value of each project. During the approval process, decision makers review the scores to help understand priorities. Decisions are based on solid objective criteria versus subjective arguments amongst leaders with different interests and responsibilities.
  7. 7. 7 US AF Oracle PPM Implementation Compliance Management The USAF must comply with regulatory requirements from DOD, the Federal government and internal mandates. Working with the USAF Compliance process owners, the Oracle team was able to implement Compliance processes and provide views that provided key critical compliance information at a glance. As an example, the Oracle team designed dashboards and bubble charts to display when compliance certifications were to expire. This helped with scheduling and funding compliance activities as well as determining the resources needed to maintain compliance. Capabilities Management (Pilot for AF Human Systems Integration Office) The USAF utilizes an application called The Brain to relate programs to the capabilities they support. Within ProSight, there is now a portal that goes directly to the associated capability within The Brain for each specific program. From there, the user can drill down further in the application. Users can do this without leaving the ProSight application, thus providing easy access to capabilities information. Lifecycle Management The Air Force Human Systems Integration Office (AFHSIO) manages activities across the USAF for integration of humans with software and hardware. AFHSIO needed to monitor these efforts and assess risk, document program status and provide notice of upcoming Human Systems Integration (HSI) pertinent events. AFHSIO also wanted to show the value added from HSI policy and processes. The Oracle team built the AFHSIO Lifecycle Management process into ProSight to conduct this oversight of activities. The Oracle/Guident team has piloted different lifecycle solutions across other MAJCOMs while the Working Groups have progressed toward process standardization. Process Improvements Process Previously Improved POM • Data entered in Excel spreadsheets, • Extensive training required, • Data call system, • Data integrity issues. • Database, • Guidance provided in the application to improve the process and lower training requirements, • Improved data integrity. Execution Status Review • Scattered Excel spreadsheets, • Monthly data calls, • Manual data transfer from spreadsheets to PowerPoint, • Data Integrity issues. • Centralized data, • Improved reporting to aid decision making, • Streamlined process. Prioritizing • Fragmented approval process, • No clear view of strategic alignment, • Complex process with little sharing of valuable information amongst the levels of approval. • Objective criteria agreed upon by USAF leaders to score projects against their contribution to mission, strategy, capability and compliance, • Streamlined process, • Improved information for decision makers.
  8. 8. 8 US AF Oracle PPM Implementation Lessons Learned What have we learned so far on this project? As anyone would guess, standardization is difficult across a huge organization. The members of the Working Groups already had processes in place, and some were resistant to change. Automating, streamlining and shortening processes helped drive toward buy-in from the Working Group members. User acceptance testing was valuable in ensuring adoption of the application and associated processes. Thorough training and guidance were also keys to ensuring that users felt comfortable in using a new tool. Now, the Working Groups are attempting to eliminate stovepipes and can see the advantage of sharing knowledge to ensure best practices. The functional groups are finding what has and has not worked in other areas of the USAF. Results This implementation has brought about many benefits and improvements, including: • Streamlined, automated, standardized and shortened processes, • Working groups brought together ideas for best practices and improved processes, • Streamlined processes and data that gave a view of the situation across related processes: o PfM - budgeting allocation, o Lifecycle Management - reviewing project health to determine required action, o Compliance Management -ensuring regulations are met, o Capability Management – tied PfM to Enterprise Architecture and provided analytics to ensure that USAF capabilities are met, • Visibility into data previously difficult to obtain, • Eliminated labor-intensive activities: o Replaced transfer of information from databases to PowerPoint and Excel, • Helped resolve data issues: o Stopped arguments about data integrity and started discussion on the true value of each program needing budget to optimize funding, • Tied investment to strategy, • Provided improved information for decision making: o No gaps in the information that the decision makers need, • Replaced legacy systems, • Centralized data: o Improved data integrity, o Improved visibility and transparency. Summary To date, this project has been a great success. The team (USAF, contractors, Oracle and Guident consultants) has achieved the project goals and continues to expand this solution across the Air Force. This project addresses the need for USAF to streamline its PfM processes using Working Groups and best practices, bringing increased efficiency to USAF PfM.
  9. 9. 9 US AF Oracle PPM Implementation The team will provide rollout Resource Management and IT Compliance processes built to meet specific needs of centers within each Major Command. The team will also rollout POM to all AF Panels. The future project plan also includes expansion of the Capability Management and Lifecycle Management processes in OPPM.

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