# Presentation: 903648

## Financial Management Line of Business FM LOB Market StudyFebruary 4, 2004

## Purpose of Market Study
Approach and Methodology
Resources 
Themes
Lessons Learned
Opportunities for FM LOB

**Approach and Methodology**
**Resources **
**Themes**
**Lessons Learned**
**Opportunities for FM LOB**

**Agenda **

## Present information from similar project, vendors, and market researchers
Provide lessons learned from large system migrations
Hosts and Migrating Agencies
External and Internal sources

**Provide lessons learned from large system migrations**
**Hosts and Migrating Agencies**
**External and Internal sources**

**Purpose of this Market Study **

## IT consolidations
Cost Savings – also typical for Federal projects
Integration of systems – also typical for Federal projects
Outsourcing – Not as typical for Federal projects

Structural changes within government IT
Creation of CIOs
Centralized reporting
Great external oversight

**Cost Savings – also typical for Federal projects**
**Integration of systems – also typical for Federal projects**
**Outsourcing – Not as typical for Federal projects**
**Structural changes within government IT**
**Creation of CIOs**
**Centralized reporting**
**Great external oversight**

**Common goals of similar projects **

## Approach and Methodology 

***Objective:*** Identify quick hits and long term opportunities for large scale migrations based on lessons learned, research, and analysis of federal government IT trends

## Research breakdown 

| Activity | Objectives |
| --- | --- |
| Identify Best Practices in Systems Migration, Hosts, and Migrating Agencies
 | 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 |
| Conduct Smart Scan 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 |
| 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 |
| Develop High Level Recommendations for Highest Priority Opportunities | Develop a high level “going-forward” plan
Quick Hits
Long Term Opportunities |

**Research breakdown **

## Interviews

| Name | Project | Title | Perspective |
| --- | --- | --- | --- |
| Joseph Campbell | E-Payroll | •  Acting E-Payroll Project Manager
 | •  E-Payroll lifecycle 
   strategy |
| Janet Dubbert | E-Payroll | •  Former E-Payroll Project 
   Manager
•  Director of Management,   
   Administrative and Payroll  
   Support, Federal Energy 
   Regulatory Commission | •  E-Payroll 
   alternatives 
   analysis and risk 
   mitigation strategies 
•  E-Payroll lessons 
   learned |
| Ken Bresnahan | E-Payroll | •  PM, Grant Thornton LLP
•  Former FM Government  
   Executive and IBM PM on E-
   Payroll | •  FM successes and lessons learned |
| Tim Burke | E-Travel | •  GSA PM for E-Travel
 | •  E-Travel lessons
   learned
 |
| Kathy Heuer | HHS | •  Deputy Assistant Secretary, 
   Budget, Technology & Finance, 
   HHS
•  Co-Chair FM LOB BMWG | •  HHS FM migration 
   lessons learned |

## Industry Best Practices, Case Studies, Success Stories

**Market Research**
- Aberdeen Group		e)  IDC
- Best in Class.com		f)   MarketResearch.com
- Forrester			g)  Washington Technology
- Gartner				h)  The Yankee Group
**Vendors/Integrators**
- Accenture			b)  Oracle, PeopleSoft, AMS, SAP
**Government Research Groups**
- CFO Council’s Systems/E-Government Committee
- CGI-AMS
- CIO Council (_[www.cio.gov](http://www.cio.gov/)_)
- Federal Computer Week (_[www.fcw.com](http://www.fcw.com/)_)
- General Services Administration
- Government Computer News (GCN)
- Joint Financial Management Improvement Program (www.jfmip.gov)
- Federal Accounting Standards Advisory Board (FASAB)
- Financial Management Service (FMS) _[www.fms.treas.gov](http://www.fms.treas.gov/)_
**Internal Touchstone Knowledge Capital**
- E-Travel  			c)  HR LOB
- E-Payroll

## Themes of Analysis

**Strategy**
- Order of magnitude reductions in cycle-time
- Significant cost savings
- “One-stop” integrated FM services for Federal employees
**People**
- Cultural change:  Think “outside the agency” in planning and obtaining FM information systems and functionality
**Process**
- Streamlined, simplified, and standardized FM process yield increased effectiveness and efficiency
**Technology**
- FM systems/applications can be COTS, and JFMIP approved by:
- establishing a governance structure
- standardizing FM policies and procedures
- establishing FM enterprise architecture in coordination with emerging OMB guidelines
- identifying and implementing a FM service delivery consolidation strategy

## Strategy – General

- Achieving consensus on requirements has proven difficult in projects crossing many functional areas/separate agencies.
- At any point, government agencies will be in different positions in the EA lifecycle/planning.  Decisions made on COTS products may impact COE selection.
**Initiatives the magnitude of FM LOB can fail due to:**
- lack of senior management support at project initiation.
- declining support during final years of a long term project.
**Recognize the implicit danger of focusing on one segment ****of the process, rather than implementing an end-to-end****solution.**
- Stakeholders may dictate specific IT/process changes that are inconsistent with the strategic approach.
- Support agency-specific legal and regulatory provisions.
**With respect to acquisition, implementation, migration, configuration, and testing: ****beware of ...**
- schedules that are overly aggressive.
- inability to resolve issues in a timely manner.

**Strategy – General**

## Strategy – COEs

- Marketing the product line to agencies may be difficult.
**Encourage vendor competition for product selection, integration, infrastructure operations, and back-end support.**
- Enable significant accountability for service levels, standards, framework, and architecture.
**Estimated costs increase due to developmental delays and vendor revisions to COTS products.  Costs typically differ due to:**
- Not accounting for operating costs in years after the system is fully developed and deployed.
- Underestimating the effort required to implementFM COTS product
- 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 technologysystems

**Strategy – COEs**

## Strategy – Migrating Agencies 

- unanticipated need for additional testing
- approval delays
- lack of maturity in the product relative to federal needs
- lack of skilled resources and decisions to use only internal staff
- union negotiations/agreements,
- cultural changes,
- additional development/testing to achieve sizing and workload requirements,
- seamless integration of all COTS and custom-designed applications.
**Recognize other risk factors include:**
- Cost overruns that may arise from...
- unanticipated expenditures for extended development timeframes
- additional shared service center equipment
- additional marketing and contractor services
- upgrades to primary FM vendor software
- Longer times required to realize FTE savings due to overall extended timelines

**Strategy – Migrating Agencies **

## Ensure that Change Management and Communications are a priority.
To counter the initial lack of and sustained buy-in by agencies, create a marketing strategy to communicate internally and externally. 
Maintain dedicated leadership:  it is essential.
A strong and clear value proposition is key.
The project must have strong backing from senior career and political leadership:  it will need the support!
First step:  “gain a credible coalition of the willing”:  federal agencies involved should already be in the spotlight. 
Recognize champions and channel their energy.  Enlist people with an incentive to support the vision and value of the project.
Ensure sustained Congressional support.
Clear the path of unnecessary roadblocks.
Identify institutional, personnel, and cultural barriers that may prevent successful implementation.
Leadership can “run interference” to ensure the project team is not slowed by bureaucracy.
Decide when to involve OMB and use them to the project’s advantage.
Reluctant participants are less likely to block progress when OMB is present.
Identify a resource matrix.
Outline the skills and GS levels necessary to complete the migration for communicating with agencies to gain FTE support.
Choose the right project manager - Effective project managers are experienced, dedicated, and results oriented “Whatever it takes” attitude is key.

- To counter the initial lack of and sustained buy-in by agencies, create a marketing strategy to communicate internally and externally.
**Maintain dedicated leadership:  it is essential.**
- A strong and clear value proposition is key.
- The project must have strong backing from senior career and political leadership:  it will need the support!
- First step:  “gain a credible coalition of the willing”:  federal agencies involved should already be in the spotlight.
- Recognize champions and channel their energy.  Enlist people with an incentive to support the vision and value of the project.
- Ensure sustained Congressional support.
**Clear the path of unnecessary roadblocks.**
- Identify institutional, personnel, and cultural barriers that may prevent successful implementation.
- Leadership can “run interference” to ensure the project team is not slowed by bureaucracy.
- Decide when to involve OMB and use them to the project’s advantage.
- Reluctant participants are less likely to block progress when OMB is present.
**Identify a resource matrix.**
- Outline the skills and GS levels necessary to complete the migration for communicating with agencies to gain FTE support.
- Choose the right project manager - Effective project managers are experienced, dedicated, and results oriented “Whatever it takes” attitude is key.

**People – General**

## Need to confront agencies who are not fulfilling their MOU agreements.  
If possible, escalate!
Install a strong PMO to guide project management.
PMO should broker deals and act as a sponsor.
Councils work well in managing governance.
Use an FM LoB Advisory Council to manage governance 
Educated risk taking is necessary.  
If problems are analyzed forever, no solutions will be tried.
Working cross agency is new and different, there should not be a standard operating procedure for everything.  
Depend on external SMEs when necessary.
Demonstrate tangible results quickly.  
Exhaustive planning leads to lots of meetings and paperwork but few tangible results.  
Nothing garners support like tangible results.
Changes in Federal or legislative mandates may require nonstandard changes in business requirements and processes.

- If possible, escalate!
**Install a strong PMO to guide project management.**
- PMO should broker deals and act as a sponsor.
- Councils work well in managing governance.
- Use an FM LoB Advisory Council to manage governance
**Educated risk taking is necessary.  **
- If problems are analyzed forever, no solutions will be tried.
- Working cross agency is new and different, there should not be a standard operating procedure for everything.
- Depend on external SMEs when necessary.
**Demonstrate tangible results quickly.  **
- Exhaustive planning leads to lots of meetings and paperwork but few tangible results.
- Nothing garners support like tangible results.
**Changes in Federal or legislative mandates may require nonstandard changes in business requirements and processes.**

**People – COE**

## Pilot system access to managers and then to employees.
Increase manager satisfaction with results of migration/training process.
Expect a reduction in the number of FTEs in finance and budget areas due to reengineering FM processes and implementing self-service FM capabilities.
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.

- Increase manager satisfaction with results of migration/training process.
**Expect a reduction in the number of FTEs in finance and budget areas due to reengineering FM processes and implementing ****self-service FM capabilities.**
- 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.

**People – Migrating Agencies**

## Prepare and implement an acquisition strategy and plan.
Keep scope in check; determine whether systems are appropriate for migrationand meet criteria.
Determine when agencies will be asked to migrate.
Use an iterative approach when working with agencies.
Create and stick to an aggressive schedule.
Start with quick wins and add on incrementally.  
Best practice example: GovBenefits identified 25 programs to transferas the first “quick wins.”
Visible progress combats “nonbelievers” or non-participants.
Enforce 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.
Use a Fee-for-Service cost model (ex: E-Payroll).
Costs increase due to developmental delays and vendor revisions to the COTS products.

- Keep scope in check; determine whether systems are appropriate for migrationand meet criteria.
- Determine when agencies will be asked to migrate.
- Use an iterative approach when working with agencies.
**Create and stick to an aggressive schedule.**
- Start with quick wins and add on incrementally.
- Best practice example: GovBenefits identified 25 programs to transferas the first “quick wins.”
- Visible progress combats “nonbelievers” or non-participants.
**Enforce 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.
**Use a Fee-for-Service cost model (ex: E-Payroll).**
- Costs increase due to developmental delays and vendor revisions to the COTS products.

**Process – General**

## Ensure standardization through well-established EA.
Given processing centers are usually developed at the bureau level rather than at the agency level, recognize inconsistencies may arise in 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 differently.
Identify ALL business requirements and processes.
Manual “hand offs” between processes can severely lengthen the process. 
Data entry is redundant and duplicative becauseof non-interfacing systems. 
Administrative costs could potentially rise as data errors are corrected.
Train employees thoroughly on new processes.
Industry experience has shown that staff may not be able to adapt to significant process and technology change without appropriate support.
Complete key milestones on schedule!

- Given processing centers are usually developed at the bureau level rather than at the agency level, recognize inconsistencies may arise in 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 differently.
**Identify ALL business requirements and processes.**
- Manual “hand offs” between processes can severely lengthen the process.
**Data entry is redundant and duplicative because****of non-interfacing systems. **
- Administrative costs could potentially rise as data errors are corrected.
**Train employees thoroughly on new processes.**
- Industry experience has shown that staff may not be able to adapt to significant process and technology change without appropriate support.
**Complete key milestones on schedule!**

**Process – COEs**

## 
Reduce overall operations and maintenance costs by maintaining fewer systems and reducing operation costs of legacy systems.
Reduce/eliminate handoffs and reconciliation tasks by replacing multiple systems with one integrated system.
Enable operating divisions to eliminate duplicative personnel systems within their organizations.  
Create more time for valued-added data analysis instead of time required for transaction processing.

**Reduce overall operations and maintenance costs by maintaining fewer systems and reducing operation costs of legacy systems.**
- Reduce/eliminate handoffs and reconciliation tasks by replacing multiple systems with one integrated system.
- Enable operating divisions to eliminate duplicative personnel systems within their organizations.
- Create more time for valued-added data analysis instead of time required for transaction processing.

**Process – Migrating Agencies**

## Recognize financial risk associated with resource allocation/competing needs by providers currently in the midst of a modernization effort.
Implementations of COTS products often fail when product changes exceed 20%. 
Avoid leaving Government data vulnerable by ensuring security mechanisms do not fail, or function adequately.
Prototypes intended for evaluation and proof-of-concept that are put into production can fail due to:
their inability to scale, lack of security, or other production related designs.
The ability to change inter/intra-Government agency interfaces is unknown and can impact many processes,including scheduling.

- Implementations of COTS products often fail when product changes exceed 20%.
**Avoid leaving Government data vulnerable by ensuring security mechanisms do not fail, or function adequately.**
**Prototypes intended for evaluation and proof-of-concept that are put into production can fail due to:**
- their inability to scale, lack of security, or other production related designs.
**The ability to change inter/intra-Government agency ****interfaces is unknown and can impact many processes,****including scheduling.**

**Technology – General**

## Standardize policies affecting FM.
The key to driving standardization is engaging stakeholders and establishing a task force.
Leverage existing modern technologies.
Ensure the enterprise architecture is robust enough to provide effective management information.
Ensure interoperability of information technology.
Ensure a successful implementation though increased communication and collaboration during the development process. 
Example: Involve all parties in developing coding standards.
Conduct stress and performance testing.
Example:  GovBenefits could not handle the spike in hitswhen first launched.
Install an approved COOP and disaster recovery plan. 
Be prepared for cost and time overruns.
Technology integration required across participating agencies is more difficult than anyone predicts.
Determine performance metrics and adhere to them.

- The key to driving standardization is engaging stakeholders and establishing a task force.
**Leverage existing modern technologies.**
- Ensure the enterprise architecture is robust enough to provide effective management information.
- Ensure interoperability of information technology.
**Ensure a successful implementation though increased communication and collaboration during the development process. **
- Example: Involve all parties in developing coding standards.
**Conduct stress and performance testing.**
- Example:  GovBenefits could not handle the spike in hitswhen first launched.
**Install an approved COOP and disaster recovery plan. **
**Be prepared for cost and time overruns.**
- Technology integration required across participating agencies is more difficult than anyone predicts.
**Determine performance metrics and adhere to them.**

**Technology – COEs**

## Coordinate with JFMIP and CFOC.
Recognize that selected FM provider’s current systems may not meet all requirements specified by migrating agencies.
Potential exists for the COE choice/vendor support to be protested. 
Migration strategies help keep the timeline and avoid disagreements.
Involve industry throughout the process for due diligence. 

- Recognize that selected FM provider’s current systems may not meet all requirements specified by migrating agencies.
- Potential exists for the COE choice/vendor support to be protested.
**Migration strategies help keep the timeline and avoid disagreements.**
**Involve industry throughout the process for due diligence. **

**Technology–Migrating Agencies**

## Provide for single agency points of contact that report to the highest levels within an agency and have been empowered. 
Foster a single, central legal spokesperson for all agencies.
Give a change control board final approval for all changes.
Define agreement with key government representatives on the go-forward strategies prior to finalization of any implementation plan being created or executed.
Adopt a change management strategy that includes training and support.  
Use prototypes and pilots to identify human factor and process issues in advance of the major deployment.
Set interim milestones to check progress against schedule and revise the 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 service 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 FM LOB responsibility for monitoring and working with providers/agencies.

- Foster a single, central legal spokesperson for all agencies.
- Give a change control board final approval for all changes.
- Define agreement with key government representatives on the go-forward strategies prior to finalization of any implementation plan being created or executed.
- Adopt a change management strategy that includes training and support.
- Use prototypes and pilots to identify human factor and process issues in advance of the major deployment.
- Set interim milestones to check progress against schedule and revise the 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 service 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 FM LOB responsibility for monitoring and working with providers/agencies.

**FM LOB Strategy Opportunities – Quick Hits **

## Develop funding strategies for the period of consolidation primarily addressing conversions and migrations. 
Establishing agreement for IT funding across agencies is the epitome of challenging. 
Recognize that 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.
Identify a compelling value proposition to potential partner agencies.
Establish a service fee structure that allows full cost recovery plus sufficientretained earnings to underwrite modernization.  
Rather than approaching all agencies at once, target a reduced number of potential partner agencies for funding contributions and MOUs based upon:
OMB’s relationship with that agency
the likelihood of that agency “getting on board” 
the impact of that agency on other potential partners 
the degree to which that agency would realize immediate benefits from the investment 
the status and lifecycle stage of that agency’s investment  
By getting a few agencies to cooperate, others will follow, as they don’t want to be left behind or be perceived as uncooperative. 

- Establishing agreement for IT funding across agencies is the epitome of challenging.
- Recognize that 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.
- Identify a compelling value proposition to potential partner agencies.
- Establish a service fee structure that allows full cost recovery plus sufficientretained earnings to underwrite modernization.**  **
- Rather than approaching all agencies at once, target a reduced number of potential partner agencies for funding contributions and MOUs based upon:
- OMB’s relationship with that agency
- the likelihood of that agency “getting on board”
- the impact of that agency on other potential partners
- the degree to which that agency would realize immediate benefits from the investment
- the status and lifecycle stage of that agency’s investment
- By getting a few agencies to cooperate, others will follow, as they don’t want to be left behind or be perceived as uncooperative.

**FM LOB Strategy Opportunities – Longer Term**

## Solicit top down support as needed :  i.e., the help of political appointees, senior careerists, and/or OMB budget examiners. 
Example:  “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.”
Conduct one on one meetings in advance with the CIO and PM of each targeted partner to articulate the value proposition.  
Take a funding calculator to demonstrate the financial contribution needed from each agency and a standard MOU to sign.  
When funding is attained, facilitate a group meeting with partner agencies to achieve group buy-in and outline next steps.
Ensure all personnel, top-to-bottom, receive information regarding the system and its benefits.
The senior steering committee composed of representatives from all agencies should provide guidance and conflict resolution. 
Build alignment among an inner circle that should withstand mounting pressures throughout the change process. 
A strong coalition will have to fend off criticism by diverseand powerful outside factions.

- Example:  “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.”
- Conduct one on one meetings in advance with the CIO and PM of each targeted partner to articulate the value proposition.
- Take a funding calculator to demonstrate the financial contribution needed from each agency and a standard MOU to sign.
- When funding is attained, facilitate a group meeting with partner agencies to achieve group buy-in and outline next steps.
- Ensure all personnel, top-to-bottom, receive information regarding the system and its benefits.
- The senior steering committee composed of representatives from all agencies should provide guidance and conflict resolution.
- Build alignment among an inner circle that should withstand mounting pressures throughout the change process.
- A strong coalition will have to fend off criticism by diverseand powerful outside factions.

**FM LOB Strategy Opportunities – Longer Term, continued**

## Longer Term
Establish and maintain senior executive sponsorship and cross agency steering committee, working teams, interagency action teams to address FM LOB issues, and partner teams to address consolidation issues--leveraging expert knowledge. 
Address coordination and interrelationship efforts in a forum composed of senior executive leadership and individual e-Gov project leaders.
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.
Ensure displacement of workforce resulting from provider consolidation is not harmful to individual employees or disruptive to agency operations.

- Establish and maintain senior executive sponsorship and cross agency steering committee, working teams, interagency action teams to address FM LOB issues, and partner teams to address consolidation issues--leveraging expert knowledge.
- Address coordination and interrelationship efforts in a forum composed of senior executive leadership and individual e-Gov project leaders.
- 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.
- Ensure displacement of workforce resulting from provider consolidation is not harmful to individual employees or disruptive to agency operations.

**FM LOB People Opportunities **

**Quick Hits**
- Establish an FM advisory council with all involved parties.
- Identify and address early the potential barriers.
- Identify, establish, and maintain champions for change.
- Leverage and utilize interrelationships between FM LOB and other e-Gov initiatives.
- 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.

## Quick Hits
Track changes in federal or legislative mandates in business requirements or processes.
Establish a formal issue tracking and resolution process and perform timely logging and prioritization of issues.

		       Longer Term
Establish liaison with congressional staffs for FM policy issues.
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.

- Track changes in federal or legislative mandates in business requirements or processes.
- Establish a formal issue tracking and resolution process and perform timely logging and prioritization of issues.
**	****	****       ****Longer Term**
- Establish liaison with congressional staffs for FM policy issues.
- 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.

**FM LOB Process Opportunities**

## Perform in depth budget allocation and technology transfer analysis.  
Fully understand existing technologies used by service and provider agencies.
Thoroughly plan integration work and integrate incrementally with agencies.  
Promptly communicate decisions to the concerned parties. 
Recognize that OMB and Agency involvement are essential in this analysis.
Take advantage of economies of scale and purchase licenses as a whole rather than by individual division, thereby leveraging the Smart Buy program.
Set agencies’ expectations 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.  
Maintain both accurate documentation through configuration management and full tracking of requirements through implementation.
Establish core data requirements that all systems should use.  
Although Government applications may change, the data transmitted and received from external interfaces should remain similar in format or should be modified to accommodate a standard interface.

- Fully understand existing technologies used by service and provider agencies.
- Thoroughly plan integration work and integrate incrementally with agencies.
- Promptly communicate decisions to the concerned parties.
- Recognize that OMB and Agency involvement are essential in this analysis.
- Take advantage of economies of scale and purchase licenses as a whole rather than by individual division, thereby leveraging the Smart Buy program.
- Set agencies’ expectations 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.
- Maintain both accurate documentation through configuration management and full tracking of requirements through implementation.
- Establish core data requirements that all systems should use.
- Although Government applications may change, the data transmitted and received from external interfaces should remain similar in format or should be modified to accommodate a standard interface.

**FM LOB Technology Opportunities ****– Quick Hits **

## Utilize the worldwide web as primary access media.  
A single web-enabled system allows FM systems interfaces to be developed and maintained easily.  
A web-based system provides users with 24/7 availability to all FM options.  
A web site could contain links for easy access to FM tools.
A web-based system could automate many inconsistent procedures developed through manual processes at individual processing stations.  
Authorizations could be produced electronically.  
Significantly reduce the time to obtain approvals from geographically separated officials through electronic routing of appropriate documentation.
This yields increased efficiency, improved access to and accuracy of information, and enhanced availability and quality of information.
Use one source for all FM management reporting.  
Data should be gathered in minutes rather than days.
Perform FM functional and technical analysis. 
Leverage experience of providers who have performed this type of conversion.
Leverage agency investments in existing FM systems.
Develop a system for continually monitoring information technology performance metrics.

- A single web-enabled system allows FM systems interfaces to be developed and maintained easily.
- A web-based system provides users with 24/7 availability to all FM options.
- A web site could contain links for easy access to FM tools.
- A web-based system could automate many inconsistent procedures developed through manual processes at individual processing stations.
- Authorizations could be produced electronically.
- Significantly reduce the time to obtain approvals from geographically separated officials through electronic routing of appropriate documentation.
- This yields increased efficiency, improved access to and accuracy of information, and enhanced availability and quality of information.
- Use one source for all FM management reporting.
- Data should be gathered in minutes rather than days.
- Perform FM functional and technical analysis.
- Leverage experience of providers who have performed this type of conversion.
- Leverage agency investments in existing FM systems.
- Develop a system for continually monitoring information technology performance metrics.

**FM LOB Technology Opportunities ****– Longer Term **

## Consolidate FM systems and policies to eliminate multiple interpretations of regulations.  
Fully integrate FM systems using electronic routing of documents that requires approvals accompanied by email notification of required actions. 
When possible, use an operational prototype methodology.
Prototypes should be based on the selected COTS, which are inherently designed for production. 
Review and test provider’s continuity of operations and disaster recovery plans.  
Conduct comprehensive test plans before fully converting to the new system.  
Exhaustively test design issues and user acceptance.  
Perform capacity planning and stress tests of the selected providers systems. 
Run existing systems in parallel to newly adopted systems until the new system is verified.
Mitigate the failure of any single security mechanism and increase the ability to prevent, detect, respond to, and recover from any security incident with an in-depth security strategy.

- Fully integrate FM systems using electronic routing of documents that requires approvals accompanied by email notification of required actions.
- When possible, use an operational prototype methodology.
- Prototypes should be based on the selected COTS, which are inherently designed for production.
- Review and test provider’s continuity of operations and disaster recovery plans.
- Conduct comprehensive test plans before fully converting to the new system.
- Exhaustively test design issues and user acceptance.
- Perform capacity planning and stress tests of the selected providers systems.
- Run existing systems in parallel to newly adopted systems until the new system is verified.
- Mitigate the failure of any single security mechanism and increase the ability to prevent, detect, respond to, and recover from any security incident with an in-depth security strategy.

**FM LOB Technology Opportunities ****– Longer Term, continued**

## Points of Contact

| Agency | Executive | Program Management Office Representative |
| --- | --- | --- |
| Department of Labor | Samuel Mok
Chief Financial Officer 
Samuel.Mok@dol.gov
202.XXX.XXXX | Greg James  
Deputy Associate CFO
Greg.James@dol.gov
202.693.6814 |
| Department of Energy | Rosita Parkes
Chief Information Officer
Rose.Parkes@hq.doe.gov
202.586.0166 | Lawrence Gross
eGovernment Executive
Lawrence.Gross@hq.doe.gov
202.586.2000 |