1) The VA is implementing new policies to improve its IT systems development through incremental development and milestone management. 2) Under the new policies, all new IT projects will use incremental development with frequent customer delivery milestones every six months, and will be managed under a new Program Management Accountability System. 3) The goals are to eliminate failures of large "big bang" projects, provide near-term visibility into troubled programs, and increase the probability of successful programs through more rigorous management.

1. Improving IT Systems Development at VA Presented By: Roger W. Baker, Assistant Secretary Date: June 15, 2009

2. Agenda Background Analysis of Ongoing Programs Incremental Development Milestone Management Benefits Implementation plan Questions

3. Background VA IT Consolidation initiated in 2007 Primary purpose is to improve the results of VA IT investments Replacement Scheduling Application Failure VA commitment to review all ongoing development programs New Secretary/Deputy Secretary/CIO confirmed Significant Senate questioning on how to address program issues

4. Analysis of Ongoing Programs 280+ programs reviewed to date 8 program attributes analyzed Many programs exhibit signs of trouble Greater than 13 months behind schedule Greater than 50% over initial cost estimate Decrease in software quality between releases Inadequate skills to complete program Substantial change is required

5. Incremental Development All new VA IT projects/programs must use an incremental development approach Frequent customer delivery milestones At most every six months Customer must test and accept functionality To be approved for investment, a program or project must have: An identified customer sponsor Program plan that documents frequent delivery milestones Documented, agreed to requirements for initial milestones Clear plan for necessary program disciplines Clear access to necessary program resources Customer, program, and vendor acceptance of PMAS Jointly established success criteria

6. Program Management Accountability System (PMAS) All incremental development programs will be managed rigorously to schedule A program/project will be halted on its third missed customer delivery milestone Once halted, substantial changes must be made before the program can restart Need for program/project will be re-assessed Program approach will be re-assessed Make/buy and program design decisions will be re-assessed New Program Manager will be assigned (rotational/training assignment) A portion of the government program staff will be reassigned (rotational/training) All service contracts will be re-visited New program plan must be approved Flexibility can be earned Multiple successful milestones between strikes Clear improvement in management between first and second strike Significant advance warning of missed milestone provided to CIO

7. Program Manager Benefits Clear decision criteria Impact on schedule will drive program choices Better program control Success factors must be in place before program start Decreased requirements creep Impact on schedule will force hard decisions New requirements factored into later release schedules Clear customer participation Must test and approve each release Clearly impacted by program halt Clear vendor attention and participation Motivated to help program meet milestones Increased probability of successful program

8. VA Benefits Eliminate “big bang” program/project failures Near-term visibility into troubled programs Able to provide help if possible Avoid long-term failures Better insight into scarce resources Frequent deliveries to customer ensures program/project functionality is on track Customer can best evaluate functionality, quality, response, etc. Increased probability of successful programs

9. Implementation Incremental development is required for all new IT programs/projects starting as of 6/15/2009 All incremental development programs will be managed to PMAS effective 6/15/2009 VA will pause a number of Programs/projects identified as in jeopardy Program plan re-cast for incremental development New plan must be PMAS compliant New program plan must be approved by CIO before program resumes Within one year, all VA IT programs and projects will be incremental development / PMAS compliant Programs that remain within 10% of original program plan (schedule, cost, function) may be excepted

10. Questions?