NASCIO’s game plan for enterprise portfolio management
Klaus Vedfelt/Getty Images
The association’s playbook will help CIOs assess their current tech portfolio and determine how well the IT aligns with and supports financial, business and government values and goals.
To help state governments balance the complex and competing requirements of enterprise systems, the National Association of State Chief Information Officers released a playbook based on months of research, interviews and webinars.
The April 25 report, “Actively Managing the IT Investment Portfolio: A Playbook for State Government,” discusses foundational concepts of enterprise portfolio management programs that are illustrated by successful EPM strategies from Virginia, Washington, Illinois and Maryland. It also includes key recommendations and six plays for creating an effective EPM program.
The playbook defines EPM as a “complete discipline for knowing what you have and how effectively your investments are performing.” It includes assessment of the current tech portfolio and how well the IT aligns with and supports financial, business and government values and goals. It also encompasses project management, financial accountability, risk management and workforce development.
In a December 2022 survey, NASCIO found that 60% of states were not making full use of EPM processes or tools even as their technology strategies moved toward centralized IT project management and oversight. After analyzing state policy and technology priorities for 2023 and insights from recent webinars, the organization refashioned EPM best practices into the heart of the playbook.
According to NASCIO, states looking to launch an EPM program should follow these six plays.
1. Build a compelling business case. For most states, the sheer size of their IT investment is enough to convince top officials of the importance of ongoing governance, oversight, strategic sourcing and monitoring. Evidence-based assurance of the delivery of the intended business value of IT investments is another good rationale for an EPM program.
2. Make EPM an established office under the state CIO. Because EPM is an enterprise-level responsibility and because it analyzes information on IT operations, programs and capabilities, it should be housed under the CIO, ideally by legislation or executive order.
3. Establish governance for EPM. States should ensure all stakeholders on a project are involved in decision-making and that investments, projects and programs are prioritized and developed collaboratively. Ongoing projects must be funded beyond their launch costs.
4. Build a collaborative working relationship with agencies, boards and commissions. States can build collaboration and trust by focusing on improving customer experience for the CIO’s agency customers and citizens.
5. Establish a framework for EPM that includes IT investment management. ITIM is key to managing an enterprise portfolio. It helps ensure investments and acquisitions align with the state’s objectives and that those investments deliver the expected value.
6. Guidance on capabilities, disciplines and tools that support EPM. Quality data is essential for EPM, and states must establish data quality and reporting standards, especially for financial data.
The playbook also features key recommendations for states in their EPM journey, including collaborating with other states, establishing clearly defined business requirements and building a strong organization among the enterprise portfolio management team.
As states continue to mature their EPM programs, NASCIO recommends they run the plays, adapting and modifying them as required. Whenever possible, states should leverage existing processes and data collection programs for their EPM efforts and collaborate with executives both within the state and with other states and territories. States considering issuing a request for information to gather ideas on EPM tools and capabilities should clearly define their business requirements and goals in advance of releasing an RFI.
“Enterprise portfolio management, when properly exercised, becomes the key differentiator between status quo and moving the organization forward,” Fred Brittain, Maine’s former CIO and co-chair of NASCIO’s Enterprise Architecture & Governance Working Group, said in the report. “It ensures that the larger strategies of CIO related to finance, architecture, and service delivery don’t take a backseat to day-to-day work. It provides the right visibility into prioritizing limited resources and is able to demonstrate measured value on projects and services delivered.”