Implementing PortfolioStat (M-12-10)PortfolioStat will be a new tool that agencies use to assess the current maturity of their IT portfolio management process, make decisions on eliminating duplication, augment current CIOled capital planning and investment control processes, and move to shared solutions in order to maximize the return on IT investments across the portfolio. While TechStat examines IT performance at the specific project or investment-level, PortfolioStat examines the portfolio as a whole and draws on the agency's enterprise architecture to help identify and eliminate areas of duplication and waste. POlifolioStat will help implement the Shared First initiative and the requirements set forth in the Executive Order 13589 (Promoting Efficient Spending),6 which targets employee IT devices as a primary area for eliminating waste and duplication. This effort should also assist agencies in meeting the targets and requirements under other initiatives, such as Federal Data Center Consolidation Initiative (FDCCI), the Cloud Computing Initiative, and the draft IT Shared Services Strategy.Through the POlifolioStat process, COOs will have a clearer picture of where duplication exists across their respective agencies. This analysis should inform the budget process and help agency COOs eliminate waste and duplication within the IT pOlifolio. A specific focus must be placed on reducing duplication within commodity IT by shifting to intra-and inter-agency shared services. Duplicative systems or contracts that support common business functions within an agency should be targeted for consolidation in order to leverage the purchasing power ofthe agency. To assist with the data collection and reporting requirements listed under this memorandum OMB has created a MAX Collect Tool that will be the required repository for all ofthe information requested. Please go to the MAX Community for more information. For any questions regarding this memo, please contact Andrew McMahon at egov@omb.eop.gov, with "PortfolioStat" as the subject line.Office of Management and BudgetOMB_4b105fb0-7e6f-11e1-9e13-fa3bfa1999f6Jeffrey D. ZientsActing DirectorSteven VanRoekelFederal Chief Information Officer_4b106172-7e6f-11e1-9e13-fa3bfa1999f6[To provide a] tool that agencies use to assess the current maturity of their IT portfolio management process, make decisions on eliminating duplication, augment current CIO-led capital planning and investment control processes, and move to shared solutions in order to maximize the return on IT investments across the portfolio._4b106226-7e6f-11e1-9e13-fa3bfa1999f6PortfolioStatSupport the PortfolioStat process by providing the necessary data and analysis, attending the PortfolioStat meeting, and support all decisions made through the process._4b1062bc-7e6f-11e1-9e13-fa3bfa1999f6U.S. Federal Agency CIOsU.S. Federal Agency CFOsU.S. Federal Agency CAOsAgency LeadDesignate Lead for Initiative. _4b10635c-7e6f-11e1-9e13-fa3bfa1999f61U.S. Federal Agnecy COOsEach agency's COO shall designate and communicate to OMB within 10 days of issuance of this memorandum an individual with direct reporting authority to the COO to lead the agency's efforts to implement the PortfolioStat process and guidance contained in this memo.IT Portfolio SurveyComplete a High-Level IT Portfolio Survey. _4b1063fc-7e6f-11e1-9e13-fa3bfa1999f62The data collection at the Departmental level is a high-level survey of agency IT portfolio status, and shall be completed by the designated lead in the MAX Collect Tool, with support from the CIO, CFO, and CAO, and submitted to OMB by May 31, 2012.Commodity IT Investment BaselineEstablish a Commodity IT Investment Baseline. _4b1064a6-7e6f-11e1-9e13-fa3bfa1999f63Each bureau, if applicable, must complete an information request identified in the MAX Collect Tool for specific types of commodity IT investments (including enterprise IT systems, IT infrastructure, and business systems) that will be used to baseline the maturity of agency portfolios. Bureau heads, if applicable, shall lead this request, which shall be completed by OMB by June 15,2012.Draft Commodity IT PlanSubmit a Draft Plan to Consolidate Commodity IT._4b106564-7e6f-11e1-9e13-fa3bfa1999f64Based on the analysis used to respond to the information requests above, the COO, in partnership with the CIO, CAO, and CFO, shall draft a proposed action plan to consolidate the commodity IT spend under the CIO, and establish a measurable financial goal to reduce total IT spend based on more consolidated commodity IT buys and intra-agency shared services. This proposed action plan shall be submitted to OMB by June 29,2012.PortfolioStat SessionHold PortfolioStat Session. _4b106618-7e6f-11e1-9e13-fa3bfa1999f65Agencies shall hold their first PortfolioStat session by July 31, 2012. Fmiher guidance on the process is detailed in Attachment A.Final Commodity IT PlanSubmit a Final Plan to Consolidate Commodity IT. _4b1066cc-7e6f-11e1-9e13-fa3bfa1999f66By August 31, 2012, each Federal Agency shall complete and submit to OMB a document outlining its plan to rationalize and consolidate its IT pOlifolio, including the adoption of intra and inter agency shared IT services. These comprehensive plans will be informed by the PortfolioStat Process, and will cover at least three years of agency activities.Commodity IT Services MigrationMigrate at Least Two Duplicative Commodities IT Services. _4b10679e-7e6f-11e1-9e13-fa3bfa1999f67Agencies shall complete the transition of two commodity IT areas by December 31, 2012. In addition to the examples provided in M-11-29, commodity IT would also include IT hardware and software as well as the following services for which Federal Strategic Sourcing Initiative (FSSI)7 solutions exist or will soon be awarded: print management, telecommunication expense management, and wireless devices and services. Agency use of these FSSI solutions will count toward meeting this migration goal.Lessons LearnedDocument Lessons Learned. _4b106866-7e6f-11e1-9e13-fa3bfa1999f68Agencies shall document and catalogue successes, challenges, and lessons learned from this process into a document that must be submitted to OMB by February 1,2013.2012-03-302013-02-012012-04-04http://www.whitehouse.gov/sites/default/files/omb/memoranda/2012/m-12-10.pdfOwenAmburOwen.Ambur@verizon.net