Capital Planning & Investment Control (CPIC) along with
optimal Decision Reliability is a critical process for all government agencies.
In order to effectively manage programs and capabilities, government agencies
need an effective way to select, control and evaluate program portfolio
management. The federally mandated CPIC process is a structured, integrated
approach to managing IT investments.
Its purpose is to ensure all IT
investments align to the agency mission and support business needs, while at the
same time minimizing risks and maximizing returns throughout an investments
life cycle. CPIC relies on a systematic approach using 3 distinct phases:
select, control, and evaluation.
Even when the agency does heavy up-front planning, there are
always constraints impacting agencies that need to be dealt with in real time.
For instance, budget cuts or restrictions on personnel resource planning. These
constraints require corrective action that is well informed and allows for
realignment of the program portfolio, as well as ongoing portfolio governance
and budget change realignment. The ability to 'rack and stack' the portfolios
of programs and capabilities using a quantifiable standard approach enables the
much needed portfolio governance and change management.
The Analytic Hierarchy Process (AHP) is a structured technique for dealing with complex decisions. Rather than prescribing a "correct" decision, the AHP helps decision-makers find one that best suits their goal and their understanding of the problem. It is a process of organizing decisions that people are already dealing with, but trying to do in their heads. The AHP converts these evaluations to numerical values that can be processed and compared over the entire range of the problem. A numerical weight or priority is derived for each element (portfolio asset such as programs) of the hierarchy, allowing diverse and often incommensurable portfolio assets to be compared to one another in a rational and consistent way.
By leveraging the Rational Software and Services Solution, agencies gain an optimal and improved maturity for supporting Capital Planning & Investment Control legislation while taking advantage of structured methods and best practices for effective smarter investment lifecycle decision processes.
I recently had the opportunity to join forces with an IBM technical architect, Jim Amsden and record a webinar about the capital planning process. It was an interesting experience to team with Jim because he is an expert in enterprise architecture and focuses on municipal and local governments. On the other hand, I came to the table with portfolio management expertise and a focal on federal government agencies. The result of our conversations and collaboration was this webcast: Leveraging IT to enable the business of government
Also, if you are in the DC area, I will also be presenting at IBM's Analytics Solution Center in DC on November 17 Deciding What Programs to Keep: Portfolio Management Analytics for Federal Agencies. If you would like to learn more about CPIC and IBM's capabilities, the webcast is a good place to start. You can access more information and resources on IBM Rational's solution websites regarding optimal portfolio management using IBM Rational Focal Point and actionable enterprise architecture using IBM Rational Software Architect.