OPPM Implementation for the US Air Force

Guident Headquarters198 Van Buren St., Suite 120

Herndon, VA 20170Phone (703) 326-0888

Fax (703) 326-0677www.guident.com

Presented at Oracle OpenWorld 2010

Carolyn Reid – GuidentJeff Melrose - Oracle

U.S. Air Force – An Overview

Formed: September 18, 1947

Human Resources

• 350,000 Active Personnel• 69,000 Reserve Personnel• 95,000 National Air Guard Personnel• 57,000 Civil Air Patrol• 151,000 Civilian Personnel

Assets

• 5,800 Aircraft (2,200 are fighters)• 180 Combat Aerial Vehicles• 2,200 Cruise Missiles• 450 ICBMs• 32 Satellites

Budget: $170B (FY 2011)

Air Force: Organization

SECAF

Air Staff

Field Units

Wings

MACOMs

Aerospace

AOC

SECAF: Secretary of the Air ForceAir Staff: Military AdvisorsMAJCOMs: Major Commands – Subdivisions

Having Specific Portion of AF MissionAerospace: Expeditionary Task Force (ASETF)Field Units: MAJCOMs, Field Operating

Agents (FOAs), Direct Reporting Units (DRUs)

AOC: Air Operations Center Wings: Distinct Mission with Significant

Scope

Air Force Mission:Fly, Fight and win in Air, Space and

Cyberspace

“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.”

Introduction to USAF 2011 Budget

U.S. Air Force: Strategic Landscape

Out with the old…

• Accelerate legacy aircraft retirement• Reorganizing commands to be more efficient• Capabilities designed to defeat enemy with similar capabilities

In with the new…

• Intelligence, surveillance and reconnaissance• Upgrade existing strategic aircraft• Joint Strike Fighter• Upgrade in-flight refueling capabilities• Modernization of software, radar electronic warfare capabilities

Project Background Portfolio Management Capability

Bad data Disjointed and redundant processes throughout Air Force An audit on the AF IT Portfolio Management recommended SAF/XC

to “Procure a COTS tool to assist all levels of portfolio management” Organization Responsible

AF CIO SAF/XC defines and operates Portfolio Management Portfolio

Support Review and Monitoring of 200 programs across all MAJCOMs and Agencies of the Air Force

Portfolio Management Tool Conducted Analysis of Alternatives to select a Portfolio Management

tool and Selected Oracle Project Portfolio Management (PPM)

PfM Program Purpose Drive to an effective enterprise-wide solution to

support: Planning, creating, assessing, balancing and communicating the execution of the Air Force Portfolio

Supports goal to optimize the use of scarce resources to support strategic goals and the Warfighter Integration vision of: Transformation, Transparency Accountability Driving out redundancies Driving out inefficiencies

PfM Program Goals/Scope Goals

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 and data centralization Help ensure achievement of Air Force capabilities

Scope Implement OPPM to work with all processes related Portfolio

Management Bringing together groups from across the Air Force to standardize processes

Process Working Groups

Resourcing Life Cycle Management Capabilities Compliance PfM

Funding Requests

Execution Planning

Budget Allocation

Performance

Schedule

Cost

ImpactAnalysis

GapAnalysis

Structure/ Architecture

IT Budget

C&A, NDAA,FISMA, etc.

Portfolio Review

Funding Prioritization

Priorities / Goals

Performance/ Impacts

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Deconstructing the ProgramProgram Management Problems

• No budget visibility to execution level projects• Link to consistent capability model• Little visibility into impact of funding decisions• Planning budget in one system and execution budget is in another…

What is a Program

• Combination of executable projects and the funding actions that develop and sustain a program

Solution Deconstruct Programs into hierarchical portfolios of:

• Programs• Projects• Funding Actions

• Link each via dependency relationships

Portfolio Management Process

AnalyzeWhat capabilities do I want/need to do?

EvaluateHow did my program/ projects do and did I deliver the intended capability?

SelectWhat programs/ projects do I choose to do?

• Develop POM• Execution Plan• Execution Year Control

How are my program/ projects doing?

• Performance • Delivery• Program/ Project Mgmt• Monitoring

Proposed Portfolio Measured against Objective Criteria

Prioritized Funding Actions

Objectives Performance

Metrics

EAIRSS

EITDRM&S

RAPIDSABIDES

FMSUITECRIS

SMARTSOWSM

SpreadsheetsMS Project

EITDR

Planning and Budget Allocation

Provide multi dimensional analysis to re-align funding and communicate funding needs

Provide Financial accountability for budget in MAJCOM accounts

Provide visibility and analytical capability to decision makers Application of Objective criteria to rack-n-stack portfolio President’s budget Spend Plans Execution Status Investment Justification Impacts from changes in funding

Program Budgeting

Program Budgeting

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Red/Yellow/Green indicators automatically calculated based on business rules

Predefined ‘value lists’ of valid values for analysis, data quality

Accounting detail, parameters to query in ABIDES to get financial data for this program

Program Budgeting

Metrics and Data Rolls Up to a Portfolio Level. Drill down into a mission area to see the programs in that portfolio.

Budget Analysis

70% of the Programs are underfunded

Axes can be any Value list or Numeric field (any non-Text field)Color by any R/Y/G metric, size by any cost value (FY, Appropriation, etc.)

Select any portfolio to analyze

Scoring Model for Prioritization

Calculated Health Score

Tracking Program Metrics

Risk & Status

InconsistencyHigh PoPSLow MAR

IT Compliance Management

Collect critical data for compliance and provide analysis to easily view activities required to comply

Areas of Compliance: Federal Information Security Management Act (FISMA) National Defense Authorization Act (NDAA) & Clinger Cohen Privacy Impact Assessments (PIA) & System of Records Notice

(SORN) ESP/ETP 508 Compliance Freedom of Information Act (FOIA) Internet Protocol version 6 (IPv6) Records Management

IT Compliance Management

Working with Air Force Materiel Command to implement the Compliance processes

Analytics and reports to view information vital to compliance to regulatory requirements

System Certification & Accreditation

Systems needing C&A

System Certification & Accreditation

When do certifications expire?

System Certification & Accreditation

Will system owners be ready for the wave?

System Certification & Accreditation

System Certification & Accreditation

Lessons Learned Standardization is difficult across a huge organization

You already knew that! Do not put bad processes in a new tool. Beware of those who want to opt out when you are trying to

standardize – what are their motives? Communication is key to helping gain user acceptance

Reduce resistance to change as much as you can Make sure rollout plan is communicated to all potential users

Need buy-in and sponsorship at the top level Make new processes easier for the users

Provide good training & guidance Incorporate their needs – user adoption drives good data

Still To Be Done Complete Configuration for Compliance Management Configuration for Capability Management Lifecycle Management Standardization Rollout Resource Management across all MAJCOMS Complete POM configuration Rollout POM across all Panels SOA solution to tie together information across different Air

Force applications Will analyze to determine areas for replacing inefficient systems

Implement Capital Planning and Information Control (CPIC) module

Implementation Value

Implemented Best Practices Brought Army in to share their experiences Utilized DoD solutions

Streamlined and shortened processes Visibility into data previously difficult to obtain Eliminated labor intensive activities Helped resolve data issues

Stopped arguing about data integrity and started discussing the true value of each program needing budget to optimize funding

Tied Investment to Strategy

Implementation Value

Replacing Legacy Systems Users saw the value-enthusiastic users!

What you want out of any solution! Users friendly processes and Tool

Centralizing Data Improving Data Integrity Improving visibility and transparency

Establishing standardized processes across different divisions of the Air Force

Improved information for decision making

Thank You!

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Thank You