> ![](media/image1.jpeg){width="5.270833333333333in" height="7.625in"}

![](media/image3.jpeg){width="6.493055555555555in"
height="1.1201388888888888in"}

**Document Change Control Sheet**

  ---------- -------------------- ------------------------ -----------------
  **Date**   **Filename/version   **Author**               **Revision
             \#**                                          Description**

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           

                                                           
  ---------- -------------------- ------------------------ -----------------

**Table of Contents**

[1 EXECUTIVE SUMMARY 2](#executive-summary)

[2 PURPOSE AND SCOPE 2](#purpose-and-scope)

[3 APPROACH and METHODOLOGY 2](#approach-and-methodology)

[4 Lessons Learned -- Large Migrations
2](#lessons-learned-large-migrations)

[4.1 Strategy 2](#strategy)

[4.2 People 2](#people)

[4.3 Process 2](#process)

[4.4 Technology 2](#technology)

[5 Opportunities for FMLOB 2](#opportunities-for-fmlob)

[5.1 Strategy 2](#strategy-1)

[5.2 People 2](#__RefHeading___Toc89494459)

[5.3 Process 2](#process-1)

[5.4 Technology 2](#__RefHeading___Toc89494461)

[6 CONCLUSION 2](#conclusion)

#   {#section .unnumbered}

# **[EXECUTIVE SUMMARY]{.smallcaps}**

In 2001, President Bush created the President's Management Agenda (PMA)
to address the need for citizen-centered, results-oriented, and
market-based federal government initiatives. The success of the PMA
depends on agencies working as a team across traditional boundaries to
better serve the American people and focusing on citizens rather than
individual agency needs. In an effort to reduce costs and redundancy in
systems, the intent is to integrate specific e-government applications
to simplify business processes and unify government operations around
citizen needs. Implicit in this goal is the desire to have agencies work
together to influence design, share resources, gain synergies and enjoy
the multitude of benefits of successful collaboration. Overall, the
lines of business initiatives represent an opportunity to free-up
billions of dollars of federal spending, while accelerating government
response times from weeks down to minutes.

The Financial Management Line of Business (FM LOB) task force was formed
to identify opportunities to reduce the cost of government and improve
services to citizens through business performance improvements; identify
a government-wide financial management solution that is efficient and
improves business performance while ensuring integrity in
accountability, financial controls and mission effectiveness; and
develop and provide a solution that will minimize the redundant
approaches currently being taken by multiple agencies in an effort to
meet their individual financial management needs. At the present time,
there are nine partner agencies participating in this effort led by the
Department of Energy (DOE) and the Department of Labor (DOL). (The
participating agencies include, the Department. of Agriculture (USDA),
the Environmental Protection Agency (EPA), the Department of Homeland
Security (DHS), the Department of Health and Human Services (HHS), the
Department of Housing and Urban Development (HUD), the Department of the
Interior (DOI), and the Department of Justice (DOJ)). This diverse group
of agencies adds a level of complexity that requires a significant
amount of coordination and organization to be successful.

It is expected that a consolidated government-wide FM system would
provide quantifiable benefits including fewer employees to perform
functions, a reduction in manager time for transactions and data
analysis, elimination of duplicative or multiple systems. Typically,
large scale system migrations can yield quantifiable benefits that
include FTE reductions from COTs systems or related efforts, enhanced
productivity requiring fewer field employees and the ability of
specialists to service greater numbers of customers. Nonquantifiable
benefits expected included a more user-friendly environment, easier
manager/employee access, better decision-making and data analysis,
improved data accuracy, improved information sharing, improved data, and
a more responsive, open systems environment.

The FM LoB project is an example of the Government forming a group to
perform cross-agency work, and possibly utilizing managed services
providers, whether they are government providers, outsourcers, or
consultants. Projects with the potential for cross-agency use would be
run out of a consolidated group. More recently, the vendor management
function has been formalized and is responsible for both the strategic
relationship with services providers as well as the oversight for all
contracts with all vendors. This means that a single group could monitor
all business functions, provide guidance in their management and, in
some cases, perform the negotiations. A summary of key learnings is
below:

-   ***Within the government, vendor management should be centralized
    and formalized for reduced cost and better service.*** This group
    should establish a sourcing strategy and should manage the
    relationship with vendors from a strategic perspective as well as
    track all vendor contracts.

```{=html}
<!-- -->
```
-   ***Don\'t outsource a problem or complexity:*** Faced with the
    perception that IT was unresponsive, overpriced or generally
    ineffective, agency leaders have attempted to outsource the entire
    organization. This has also been attempted when IT was supporting a
    highly complex infrastructure. Though this can be done, the cost is
    usually very high and the improvements in IT occur very gradually.
    In cases where inexperienced people have negotiated the contract,
    the results have usually been expensive and ineffective.

```{=html}
<!-- -->
```
-   ***When outsourcing, keep specific groups:*** Architecture,
    planning, project management and vendor management are key groups to
    keep as government employees when outsourcing.

```{=html}
<!-- -->
```
-   ***Manage communications:*** Government IT has a greater number of
    powerful stakeholder groups than private sector IT. They should
    establish a group to formally manage communications between IT and
    these stakeholder groups.

```{=html}
<!-- -->
```
-   ***Use self-contained PMO Model:*** The PMO is responsible for
    managing large cross-agency projects. One form of this merely
    coordinates the activities of groups within the different
    sub-agencies. The second form is a large group and has all the
    resources it needs to complete a project. Most government IT groups
    don\'t have the governance in place to support coordinated
    activities. To complete these large, high-risk, highly complex
    projects within a reasonable amount of time, the PMO needs its own
    resources to draw on.

```{=html}
<!-- -->
```
-   ***If the time is not right - don\'t make major changes.*** Making a
    major organizational change is something that must have the support
    of senior leaders on the business side. If not, it is likely a waste
    of time to push for it. The good news is that if the drivers of a
    major change are there, the solution eventually becomes apparent to
    everyone.

# **[PURPOSE AND SCOPE]{.smallcaps}**

The primary drivers of large government IT consolidations include cost,
integration of systems and outsourcing. The level of oversight by
external groups is great in large government IT projects. In terms of
the changes being made, government IT is consolidating both the
technology and the organization and putting more resources in
cross-agency structures such as architecture and the program management
office (PMO). Given the drivers, IT within government needs to continue
the consolidation, while investing in groups that maintain the
responsiveness of IT - planning, architecture and vendor management.

The two primary drivers for structural changes within government IT at
the federal level are cost reduction, and the integration of systems.
The latter is to provide a single point of access to government services
and to better track users of services. Structurally, government IT is
more fragmented than the private sector, but is following the lead of
the private sector and consolidating. There are various forms of this
consolidation. Federal agencies in the US have established CIOs because
of the Clinger Cohen Act of 1996. Overall, the level of centralization
of reporting has increased greatly in the last three years. Given the
above drivers, this will continue for at least the next few years.

The FM LoB initiative seeks to simplify and standardize Federal FM
policies and procedures and better integrate finance functions. The FM
LoB is comprised of the task force, the Centers of Excellence (COEs) and
the PMO. Recommendations in this paper are divided into those for the FM
LoB and for the COEs. It is expected that this initiative will:

-   Consolidate Federal FM processing to the existing systems of a
    select number of cross-service providers.

-   Exercise central governance over FM policy to standardize and
    simplify FM procedures.

-   Leverage recent technology investments across Federal agencies to
    more quickly modernize FM service delivery within carefully crafted
    enterprise architecture for FM activities.

The ability to consolidate and standardize FM activities across the
Federal government will improve the link between performance and
budgets, and improve financial management by providing both program
managers and finance officers with information needed to make
well-informed decisions. Additionally, financial service provider
consolidation will generate cost savings through economies of volume,
provide additional cost avoidance by limiting capital system
modernization activities across government, and promote standardization
and unified service delivery.

The purpose of this document is to present information that is received
from the vendor community and select market research. Market data was
reviewed from research sources, (i.e. Gartner), and government and
industry responses, and coordinated this activity with the external and
internal stakeholders to ensure alignment with the FM LOB requirements.
Additionally, the purpose of this paper is to provide a market study or
"lessons learned" for large system migrations. The perspectives reviewed
include those hosting, and those being migrated. Information received
from the vendor community was reviewed, additionally, independent market
research, and primary interviews with IT industry experts were also
conducted. Specifically, we reviewed market data from research sources,
(i.e. Gartner) and government and industry responses, coordinated with
external and internal stakeholders, and the PMO to ensure alignment with
the FM LOB requirements.

This paper provides guidance for the FMLOB, and presents the results of
a market study that examines the following themes:

1.  Marketing: How to market and enforce the FM LOB

2.  Governance: How is it handled

3.  Migration: How to jumpstart agencies into migration mode

4.  Timeline: What is the best way to work with agencies? Is it
    case-by-case or are there guidelines that should be set for all
    agencies? When is it best to involve agencies -- before or once
    planning has begun

5.  Cost Models: (a) Flat or (b) Fee-for-Service

6.  Private Industry Involvement:

7.  PMO: (a) Size, (b) Accountability, and (c) Federal versus Contractor

8.  Agency POC: (a) Level (b) Back-up plans to involve deputies if
    people were not available?

9.  Accountability: OMB Scorecard measures MOU compliance

# **[APPROACH and METHODOLOGY]{.smallcaps}**

Touchstone used a structured approach for seeking out the best and most
timely information for this market study. Our framework included:

1\) Identify and understand best in class processes for systems
migration, hosting, and migration through primary research, including:

-   Interviews with like project managers (E-Travel, E-Payroll)

-   Vendor research

-   Market analysis

-   Determine best practices to support best performance

-   Define key differentiation factors -- "lessons learned" what worked
    well, what didn't

2\) Conduct SmartScan of Current FM Modernization Efforts

-   Conduct a rapid review of the status of current FM Modernization
    efforts at select CFO agencies

-   Update positional matrix to reflect current position of target
    agencies

3\) Identify Key Gaps and Areas of Opportunity

-   Identify variation in FMLOB practices from benchmarked best-in-class
    practices

-   Assess impact of variances on time-to-market, quality, systems
    integration, and customer experience

-   Identify key roadblocks and "non-negotiable" considerations

4\) Develop High Level Recommendations for Highest Priority
Opportunities

-   Develop a high level "going-forward" plan

    -   Quick Hits

    -   Long Term Opportunities

![](media/image4.wmf){width="5.003472222222222in"
height="3.751388888888889in"}

We employed several approaches for this market study including:

1\) Conducting interviews of industry, government and vendor experts We
interviewed the following people to derive lessons learned:

+-----------+----------+------------------------+---------------------+
| **Name**  | **P      | **Title**              | **Perspective**     |
|           | roject** |                        |                     |
+-----------+----------+------------------------+---------------------+
| Joseph    | E        | • Acting E-Payroll     | • E-Payroll         |
| Campbell  | -Payroll | Project Manager        | lifecycle           |
|           |          |                        |                     |
|           |          |                        | strategy            |
+-----------+----------+------------------------+---------------------+
| Mark      | Denver   | Deputy CFO, Department | • Consolidated      |
| Carney    | National | of Education           | financial           |
|           | Finance  |                        | operations into one |
|           | Center   |                        | facility and        |
|           |          |                        | modernized agency   |
|           |          |                        | financial systems   |
|           |          |                        | and practices       |
+-----------+----------+------------------------+---------------------+
| Ken       | E        | • PM, Grant Thornton   | • E-Payroll         |
| Bresnahan | -Payroll | LLP                    | successes and       |
|           |          |                        | lessons learned     |
|           |          | • Former FM Government |                     |
|           |          |                        |                     |
|           |          | Executive and IBM PM   |                     |
|           |          | on E-                  |                     |
|           |          |                        |                     |
|           |          | Payroll                |                     |
+-----------+----------+------------------------+---------------------+
| Tim Burke | E-Travel | • GSA PM for E-Travel  | • E-Travel lessons  |
|           |          |                        |                     |
|           |          |                        | learned             |
+-----------+----------+------------------------+---------------------+
| Bill      | CGI -    | -   Senior Principal   | • FM migration      |
| T         | AMS      |     AMS Public Sector  |                     |
| opolewski |          |     Group, former GSA  | lessons learned     |
|           |          |     client; involved   |                     |
|           |          |     in JFMIP and CFOC  |                     |
+-----------+----------+------------------------+---------------------+

Additionally, we did a scan of all available resources including:

1.  **Market Research**

    a.  Aberdeen Group

    b.  Best in Class.com

    c.  Forrester

    d.  Gartner

    e.  IDC

    f.  MarketResearch.com

    g.  Washington Technology

    h.  The Yankee Group

2.  **Vendors/Integrators**

    a.  Accenture

    b.  Oracle, PeopleSoft, AMS, SAP

```{=html}
<!-- -->
```
3.  **Government Research Groups**

    a.  CFO Council's Systems/E-Government Committee

    b.  CGI-AMS

    c.  CIO Council ([www.cio.gov](http://www.cio.gov/))

    d.  Federal Computer Week ([www.fcw.com](http://www.fcw.com/))

    e.  General Services Administration

    f.  Government Computer News (GCN)

    g.  Joint Financial Management Improvement Program (www.jfmip.gov)

    h.  Federal Accounting Standards Advisory Board (FASAB)

    i.  Financial Management Service (FMS)
        [www.fms.treas.gov](http://www.fms.treas.gov/)

-   **Internal Touchstone Knowledge Capital**

    a.  E-Travel

    b.  E-Payroll

    c.  HR LOB

**The analysis has been broken down into several** **themes:**

**Strategy --** Determine the agencies that are using
systems/applications to improve their FM functions. To ensure that these
goals are met, specific objectives or target performance improvements
for best practices have been defined as follows:

-   Order of magnitude reductions in cycle-time

```{=html}
<!-- -->
```
-   Significant cost savings

```{=html}
<!-- -->
```
-   "One-stop" integrated FM services for Federal employees

-   A simplified and standardized FM function across agencies

**People** -- There are significant cultural changes required to
successfully implement the FMLOB project. Agencies will need to think
"outside the agency" in planning and obtaining FM information systems
and functionality. The numerous and nonintegrated current methods for
managing FM in the federal government create inefficiencies and result
in the diversion of resources away from mission-focused tasks.

**Process** -- The interpretations of general FM management steps may
create inconsistent processes and procedures. A streamlined, simplified,
and standardized FM process will yield increased effectiveness and
efficiency. These improvements will allow agencies to focus a
substantial amount of time and cost savings to their core competencies
within their lines of business, rather than upholding a costly process.
The end result of the FM environment will create a more efficient and
effective process, which is apparent through the numerous benefits that
are achievable.

**Technology** - FM systems/applications are commercially available
automated tools that can help streamline financial management
activities, including JFMIP modules. To implement this vision, the FMLOB
initiative will address (1) establishing a governance structure; (2)
standardizing FM policies and procedures; (3) establishing FM enterprise
architecture in coordination with emerging OMB guidelines; and (4)
identifying and implementing a FM service delivery consolidation
strategy.

# Lessons Learned -- Large Migrations

## Strategy

***General:***

-   Closely manage multi-agency management structure and cooperation -
    Achieving consensus on final requirements sufficient for an
    acquisition has proven to be difficult in projects crossing many
    functional areas as well as many separate agencies

-   Some Government agencies are ahead of others in planning for their
    EA efforts. Decisions made on COTS products, or other elements may
    impact choices for COE selection of many Government agencies based
    on EA lifecycle.

-   Government enterprise initiatives the magnitude of FM LoB can fail
    due to lack of senior management support at the initiation of the
    project or declining support during the out-years of a long term
    project.

-   Stakeholders may dictate specific IT/process changes that are
    inconsistent with the strategic approach and may hamper long term
    efforts.

-   Ensure that relevant Agency-specific legal and regulatory provisions
    are supported

-   There is implicit danger of focusing on one segment of the process,
    rather than implementing an end-to-end solution.

-   Beware of schedules that are overly aggressive, with an inability to
    resolve issues in a timely manner, and risk to completion of
    migration milestones. This relates to acquisition, implementation,
    migration, configuration, and testing.

***COE Findings***

-   Marketing of the product line to Agencies may be difficult. Plan for
    an aggressive marketing strategy.

-   Encourage vendor competition for product selection, integration,
    infrastructure operations, and back end support. This enables
    significant accountability for service levels, standards, framework,
    and architecture.

-   Estimated costs have increased because of developmental delays,
    vendor revisions to the federal and FM COTS products, and limited
    customization

-   Differences in cost are due to (1) not initially accounting for
    operating costs in years after the system is fully developed and
    deployed, and (2) underestimating effort to implement FM COTS
    product, including costs to address

> • Database, hardware, and end user equipment needs
>
> • Lack of maturity of the FM COTS products
>
> • Technical programming staff charges and billing rates higher than
> for older technology systems

***Migrating Agencies Findings:***

-   Milestone delays due to a variety of reasons, including
    unanticipated additional testing and delays in receiving milestone
    approval

```{=html}
<!-- -->
```
-   Delay in completion dates due to lack of maturity in the product
    relative to federal needs

-   Project delays due to lack of skilled resources and decisions to
    implement system with internal staff

-   There could be delay due to union negotiations/agreements, cultural
    changes, additional development/testing to achieve sizing and
    workload requirements, seamless integration of all COTS and
    custom-designed applications. Other risk factors include:

> • Inflation
>
> • Cost overruns due to unanticipated expenditures for extended
> development timeframes software maintenance, additional shared service
> center equipment, additional marketing and contractor services,
> upgrades to primary FM vendor software, and/or regulatory changes to
> self-service functionality
>
> • Longer period of time to achieve FTE savings due to extended
> development/implementation timeframes

## People

***General:***

-   There may be an initial lack of buy-in by agencies and other key
    stakeholders and lack of sustained buy-in by agencies and other
    stakeholders. Need a marketing strategy to communicate internally
    and externally. First step is to "gain a credible coalition of the
    willing," meaning that federal agencies involved should be major
    agencies that are already in the spotlight**.**

-   Ensure appropriate Congressional support, as well as institutional,
    personnel and cultural barriers that may prevent successful
    implementation throughout agencies

-   Need a resource matrix outlining the skills and GS levels necessary
    to complete the migration; then use this to communicate with
    agencies to gain FTE support

-   Decide when to involve OMB and use to project advantage; reluctant
    participants are less likely to block progress in meetings when OMB
    is present

-   Choose the right project manager - Effective project managers are
    experienced, dedicated, and results oriented "Whatever it takes"
    attitude is key

-   Clear the path of unnecessary roadblocks - Leadership can "run
    interference" to ensure the project team is not slowed down by
    bureaucratic obstacles

-   Dedicated leadership is essential - The project must have strong
    backing from senior career and political leadership, it will need
    the support. A strong and clear value proposition is key

-   Educated risk taking is necessary. Working cross agency is new and
    different, there should not be a standard operating procedure for
    everything. If problems are analyzed forever no solutions will be
    tried

-   Recognize champions and channel their energy. Enlist those people
    with an incentive to support the vision and value of the project

-   Demonstrate tangible results quickly. Exhaustive planning leads to
    lots of meetings and paperwork but few tangible results. Nothing
    garners support like tangible results

-   Need to instill a sense of urgency; this can be done through interim
    delivery points (example: FM LOB should consider defining a "final
    state" in FY2006 or FY2007 even though full migration will not be
    complete at that time)

-   Ensure that Change Management/communications is a priority

***COE Findings:***

-   Changes in Federal or legislative mandates may require nonstandard
    changes in business requirements and processes.

```{=html}
<!-- -->
```
-   Need to confront agencies who are not fulfilling their MOU
    agreements. If possible, escalate the issue up the ranks

-   Depend on SMEs when necessary for expertise not available in the
    host agency

-   Install a strong PMO to guide project management

-   Councils work well in managing governance - Use a FM LoB Advisory
    Council to manage governance

-   PMO should broker deals and act as a sponsor

***Migrating Agencies Findings:***

-   Pilot system access to managers and, eventually, to employees -
    Increased manager satisfaction with results of recruitment process

-   Expect a reduction in the number of FTEs in finance and budget areas

-   Reduced FTEs due to reengineering FM processes and implementing
    self-service FM capabilities

```{=html}
<!-- -->
```
-   Displacement of workforce resulting from provider consolidation will
    be harmful to individual employees or disruptive to agency
    operations. Plan to have a redeployment strategy ready.

## Process

***General Findings:***

-   Need to use an iterative approach when working with agencies (best
    practice example: GovBenefits identified 25 programs to transfer as
    the first "quick wins")

-   Need to have an aggressive schedule and stick to the schedule; start
    with quick wins and add on incrementally; making progress should
    combat agencies unwilling to participate or "nonbelievers"

-   Need a governance structure to manage outliers unwilling to
    participate or help the cause (i.e., if an agency hasn't signed a
    MOU, they are not allowed to vote on LOB issues)

-   Prepare and implement an acquisition strategy and plan

-   Keep scope in check; determine whether systems are appropriate for
    migration and meet criteria

-   Use a Fee-for-Service cost model (ex: E-Payroll)

-   Need to determine when agencies will be asked to migrate

-   Risk for cost increases due to developmental delays, vendor
    revisions to the COTS products, and limited customization.

***COE Findings:***

-   Ensure completion of key milestones on schedule

-   Industry experience has shown that staff may not be able to adapt to
    significant process and technology change without appropriate
    support.

-   FM, accounting, and other disbursements related to data may not be
    generated in the new consolidated state.

-   Risk: Ensure all business requirements and processes may have been
    identified and ensure that EA is in place to ensure standardization

```{=html}
<!-- -->
```
-   Bureaus within agencies often utilize separate FM systems creating
    higher licensing costs

-   Processing centers are usually developed at the bureau level rather
    than at the agency level. This creates inconsistencies with types of
    authorizations used, methods for advances and reimbursements, and
    how and when FM funds are obligated and FM vouchers are audited.

-   Bureaus within agencies abide by the same FM regulations but often
    interpret them in different ways.

```{=html}
<!-- -->
```
-   Data entry is redundant and duplicative because of non-interfacing
    systems. This often creates further administrative cost, as data
    error entries must be corrected.

```{=html}
<!-- -->
```
-   Manual "hand offs" to each process can severely lengthen the
    process.

***Migrating Agencies Findings:***

-   Implementation is expected to enable operating divisions to
    eliminate duplicative personnel systems within their organizations.
    Overall operations and maintenance cost can also be reduced because
    fewer systems would need to be maintained.

-   Reduce/eliminate handoffs and reconciliation tasks by replacing
    multiple systems with one integrated system

-   Cost avoidance relating to maintenance and operational costs
    associated with legacy system

-   Delays can be expected due to re-examination of alternatives

-   Implementation creates time for more important, valued-added work

## Technology

***General:***

-   The ability to change inter/intra- Government agency interfaces and
    associated scheduling is unknown and can impact many things,
    including scheduling activities.

-   Implementations of COTS products often fail when product changes
    exceed 20%.

-   Security mechanisms may fail or not function adequately, leaving
    Government data vulnerable

-   The use of prototypes intended for evaluation and proof-of-concepts
    can be put into production -- failing due to: inability to scale,
    lack of security or other production related designs.

-   There is financial risk associated with resource allocation by
    providers currently in the midst of a modernization effort due to
    competing needs.

***COE Findings:***

-   Conduct stress and performance testing - Determine performance
    metrics and adhere to them

-   Involve all parties in developing coding standards - Increased
    communication and collaboration during the development process
    should ensure a successful implementation

```{=html}
<!-- -->
```
-   Key to Driving Standardization Process - Engaging stakeholders and
    establishing task force

-   Ensure the enterprise architecture is robust enough to provide
    effective management information

-   Ensure Information technology/interoperability

```{=html}
<!-- -->
```
-   Install an approved COOP and disaster recovery plan

-   Standardize Policies Affecting FM

-   Leverage Existing Modern Technologies

-   Must conduct stress testing (example: GovBenefits could not handle
    the spike in hits when first launched)

-   Degree of technology integration required across participating
    agencies is more difficult than predicted, be prepared for cost and
    time overruns.

***Migrating Agencies Findings:***

-   Need an FM marketing strategy to keep on the timeline to avoid
    disagreements

-   Important to involve industry throughout the process for due
    diligence (and recognizing that the COE choice/vendor support may be
    protested); this can be done through coordination with JFMIP and
    CFOC

-   Requirements specified by agencies may not be met by selected FM
    providers' current systems

# **[Opportunities for FMLOB]{.smallcaps}**

## **[Strategy]{.smallcaps}**

***Quick Hits**:*

-   Set interim milestones to check progress on schedule. Revise
    schedule as warranted to ensure overall success of initiative. Phase
    I: select Providers that have adequate capabilities to acquire new
    customers. Phase II: ensure appropriate balance in distribution of
    serviced agencies to consolidated providers. Phase III: work closely
    with consolidated providers on migration plans.

-   Develop agency specific migration project plans that realistically
    estimate the level of effort needed and closely track the migration
    process against milestones. Assign responsibility for monitoring and
    working with providers/agencies to facilitate their taking
    corrective action when necessary.

```{=html}
<!-- -->
```
-   An agreement with key Government representatives must be made on the
    go-forward strategies prior to finalization of any implementation
    plan being created or executed.

-   Provide for single Agency points of contact that report to the
    highest levels within an Agency and have been empowered

-   Ensure that a change control board should have final approval for
    all changes.

-   Ensure a change management strategy is proposed that includes a
    strong training and continuing support program. Additionally, the
    use of prototypes and pilots serve to identify human factor and
    process issues in advance of the major deployment.

-   Foster a single, central legal spokesperson for all Agencies

***Long Term Opportunities**:*

-   

-   Develop budgetary strategies to obtain needed funding to support the
    initiative.

-   Develop funding strategies for the period of consolidation process
    primarily addressing conversions and migrations. Establish a service
    fee structure that allows full cost recovery plus sufficient
    retained earnings to underwrite modernization. Implement the
    initiative incrementally through discrete sets of tasks that can
    deliver early and continuing benefits.

-   

```{=html}
<!-- -->
```
-   

-   The senior steering committee composed of representatives from all
    Agencies should provide guidance and de-conflict requirements that
    cannot be worked at lower levels. Lessons learned from past and
    current reengineering initiatives should be used.

```{=html}
<!-- -->
```
-   

-   

-   Utilize a multi-faceted approach maintaining a consistent theme
    across all Agencies

-   Ensure all personnel, top-to-bottom receive information regarding
    the system and its benefits

-   

-   

```{=html}
<!-- -->
```
-   Building alignment among an inner circle that should withstand
    mounting pressures throughout the change process --

```{=html}
<!-- -->
```
-   IT investments have many stakeholder groups who are heavily invested
    in the status quo and have little incentive to reallocate
    appropriated funds in the interest of cross-agency optimization or
    collaboration.

```{=html}
<!-- -->
```
-   Establishing agreement for funding a cross-agency IT investment is
    the epitome of challenging consensus. The paradox is that you want
    both buy-in and progress within the context of the difficult problem
    of deciding how to invest across agencies.

```{=html}
<!-- -->
```
-   Due to varying vested interests, many community factions should
    attempt to kill the effort. A strong coalition is required to fend
    off criticism by many diverse and powerful outside factions.

-   Identify a Compelling Value Proposition to Potential Partner
    Agencies -- Clearly articulating how this investment would benefit
    agencies and their employees, and not just the entire Federal
    Government, would encourage potential partners to commit funds
    towards this initiative.

-   Tailor the value proposition for each specific partner agency. To
    the extent possible, position the cross-agency investment to meet
    the project milestones for each individual agency initiative.

-   Focus on Targeted Partner Agencies -- Rather than approaching all
    agencies at once, target a reduced number of potential partner
    agencies for funding contributions and MOUs based upon (1) OMB's
    relationship with that agency; (2) the impact of that agency on
    other potential partners if they agree to funding and an MOU; (3)
    the likelihood of that agency "getting on board" and, (4) the degree
    to which that agency would realize immediate benefits from the
    investment and (5) the status and lifecycle stage of that agency's
    investment. By getting a few agencies to cooperate, others would
    follow, as they don't want to be left behind or be perceived as
    uncooperative.

-   Conduct 1-1 Pre-Meetings -- Conduct multiple, 1-1 pre-meetings with
    the CIO and PM of each targeted partner to articulate the value
    proposition.  Bring a standard MOU to sign and a funding calculator
    to demonstrate the financial contribution needed from each agency.
    Once you have obtained enough agency buy-in and a commitment to an
    MOU and investment funding, facilitate a group meeting with partner
    agencies to achieve group buy-in and outline next steps.

-   Solicit Top Down Support -- Depending on your ability to obtain
    buy-in and support from targeted partner agency contacts, solicit
    the help of political appointees, senior careerists and/or OMB
    budget examiners to drive down change.

-   Explain to the Administrator of the Office of Electronic Government
    and/or senior careerists what you're trying to achieve, outline the
    value proposition, and enlist their help in obtaining agency
    cooperation and funding. Have them attend one or more 1-1 meeting
    with CIO and PM representatives as needed.

-   Educate your OMB Budget Examiner on what you're trying to do and get
    them on your side. They have the power to move money around via
    vehicles like Clinger-Cohen.

[]{#__RefHeading___Toc89494459 .anchor}**[People]{.smallcaps}**

***Quick Hits:***

-   Establish a FM advisory council with all involved parties. Identify
    and address early on the potential barriers. Identify, establish,
    and maintain champions for change.

```{=html}
<!-- -->
```
-   Ensure Interrelationships between FM LoB and other e-Gov Initiatives
    are fully leveraged and utilized.

-   Perform a resource assessment prior to consolidation. Establish a
    workforce realignment process that maximizes opportunities for
    retraining, placement of employees in suitable positions, and
    provides outplacement services as needed.

***Long Term Opportunities:***

-   Establish and maintain senior executive sponsorship and cross agency
    steering committee, working teams, establish FM advisory council,
    and identify interagency action teams to address FM LOB issues and
    partner teams to address consolidation issues, leveraging expert
    knowledge. Clearly communicate and demonstrate the benefits of FM
    service consolidation to agencies on a regular basis through an
    established communications plan.

-   

-   Work with OMB staff. Provide targeted briefings prior to arriving at
    key milestones. Develop appropriate strategies for authorizing and
    appropriation committees.

```{=html}
<!-- -->
```
-   

-   

-   Ensure displacement of workforce resulting from provider
    consolidation is not harmful to individual employees or disruptive
    to agency operations

```{=html}
<!-- -->
```
-   Address coordination and interrelationship efforts in a forum
    composed of senior executive leadership and individual e-Gov project
    leaders.

-   

## **[Process]{.smallcaps}**

***Quick Hits:***

-   Ensure that changes in Federal or legislative mandates are tracked
    in business requirements and processes.

-   Establish a formal issue tracking and resolution process and perform
    timely logging and prioritization of issues.

***Long Term Opportunities:***

-   

-   

-   Establish liaison for FM policy issues with congressional staffs.
    Develop a process that allows for stakeholder participation and
    involvement. Issue standard procedures for implementing new FM
    requirements. Establish change control process and incorporate
    technical and functional analysis in the project plan.

[]{#__RefHeading___Toc89494461 .anchor}**[Technology]{.smallcaps}**

***Quick Hits:***

-   Establish core data requirements all systems should use. Although
    the Government applications may change, the data transmitted and
    received from external interfaces should for the most part remain
    similar in format or should be modified to accommodate a standard
    interface.

-   Agencies should take advantage of economies of scale and purchase
    licenses as a whole rather than by individual division thereby
    leveraging the Smart Buy program.

-   Set realistic expectations early on with agencies with regard to
    capabilities and limitations of available technology. Focus
    standardization priorities on obstacles to consolidation to reduce
    the extent of agency-specific requirements. Engage affected
    stakeholders in negotiating changes in requirements to facilitate
    consolidation. Employ strong program management, and maintain both
    accurate documentation through configuration management and full
    traceability of requirements through implementation.

-   Perform in depth budget allocation and technology transfer analysis.
    Promptly communicate decisions to the concerned parties. OMB and
    Agency involvement are essential in this analysis.

-   Thoroughly plan integration work, integrate incrementally with
    agencies. Fully understand the existing technologies used by service
    and provider agencies.

***Long Term Opportunities:***

-   Utilize the worldwide web as the primary access media. A single
    web-enabled system should allow interfaces with FM systems to be
    developed and maintained easily - Web-based system should provide
    users with 24/7 availability to all FM options.

-   

-   A web-based system would automate many inconsistent procedures
    developed through manual processes at individual processing
    stations. Authorization would be produced electronically. Web site
    could contain links for easy access to FM tools

-   Develop a system for continually monitoring information technology
    performance metrics

-   

-   A defense in-depth strategy should help mitigate the failure of any
    single security mechanism and increase the ability to prevent,
    detect, respond to, and recover from any security incident.

-   When possible, an operational prototype methodology should be used.
    In this case, the prototypes should be based on the selected COTS,
    which are inherently designed for production.

-   

-   

-   

-   Perform interface to FM functional and technical analysis. Leverage
    experience of providers who have performed this type of conversion.
    Leverage agency investments in existing FM systems.

-   Management should have one source for all FM reporting. Data could
    be gathered in minutes rather than days.

-   

-   

-   Consolidation of FM systems and policies would eliminate multiple
    interpretations of the same regulation. FM systems would be fully
    integrated using information technology with electronic routing of
    documents that require approvals accompanied by email notification
    of required actions.

-   Completely interfacing systems would negate any redundant or
    duplicative data entry

-   The time to obtain approvals from geographically separated officials
    would be significantly reduced through electronic routing of
    appropriate documentation resulting in increased efficiency due to
    cycle time reductions, improved access to and accuracy of
    information, and enhanced availability and quality of information.

-   Review and test provider's Continuity of Operations Plans and
    Contingency/Disaster Recovery Plans. Conduct comprehensive test
    plans before fully converting to the new system. Exhaustively test
    for design issues and user acceptance. Perform capacity planning and
    stress tests of the systems used by the selected providers. Plan to
    run existing systems in parallel to newly adopted systems until
    verification of the accuracy of the new system has occurred.

# **[CONCLUSION]{.smallcaps}**

Strategic leadership for the governance of the LOB initiatives is key
for the overall success of the project. The individual elements for
success include the primary themes explored in this white paper and
include: setting up a cross LOB and FMLOB PMO, establishing and
maintaining a strong communications network, anticipating and executing
strong enterprise architecture, and developing and enforcing a strong
project management schedule. The themes described in this paper propose
multi-layered solutions, enabling cross- government collaboration.
Ultimately, however, a final solution will be decided upon and driven by
the goals, activities, necessary for successful implementation of the
LOB objectives.