This document discusses integrating IT strategic planning with performance measurement in the federal government. It proposes a full scope practice mechanism with comprehensive components, including: (1) an IT strategic planning structure and lifecycle model; (2) a performance measurement model with reference models, metrics, and tools; and (3) integrating strategic plans, tactical plans, and performance measurement to align initiatives and projects with strategic goals. The framework is intended to help agencies plan IT strategies, define goals and measures, collect performance data, and use results to improve over time.

1. Integrate IT Strategic Planning
with Performance Measurement
Yan Zhao, PhD
ArchiTech Consulting LLC
yan.zhao@architechllc.com, 703-408-1339
Oct., 2010

2. Content Summary
This presentation discusses a full scope practice mechanism
and comprehensive components involved for IT strategic
planning and performance measurement integration in
federal government domain. It contains:
■ The landscape of strategic planning and performance
measurement
■ IT strategic planning structure, model, and lifecycle for
practice
■ Performance measurement model
■ IT strategic planning and performance measurement
integration
■ Performance management system
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Yan Zhao, Ph.D

3. Landscape for Strategic Planning
and Performance Measurement
IT Strategic and Tactical Plans
IT Strategic and Tactical Plans
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Yan Zhao, Ph.D

4. IT Strategic Planning Structure
-- Components and Relationships
Enterprise IT Strategic Planning Program
“As Is” IT
Strategic
Plan Five-Year Annual IRM
Enterprise IT Two-Year
IT Strategic Planning Governance and Policy
and Performance
Strategic IT Tactical Plan Plan
Capital Planning and Investment Control
Plan
Performance
Evaluation
Results and
Action Plan IT
Strategic IT
Strategic IT Performance
Performance Management
Performance Management Reference
System (with repository and tools)
System (with repository and tools) Model
New Business
Requirements
Updated Guidance Performance Various
Division
From: Data Interaction Performance
IT Strategic
• Business Strategic From divisions Reports
Plans
Plan
• OMB A-11
• FEA PRM
• GPRA
• PART
Business Program Planning and Performance Measurements
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Yan Zhao, Ph.D

5. IT Strategic Planning Model
Business Strategic Plan
Feedback for next round
planning process
IT Strategic Plan
Enterprise
IT Tactical Plan CPIC
Architecture
Performance
Budgeting
IT Initiatives Business Programs
Prioritized Projects
Annual IRM and
Annual Performance Plan
Performance Plan
Strategic IT Performance Performance Data Collection
Management System Annual program performance
reporting
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Yan Zhao, Ph.D

6. IT Strategic Planning Lifecycle
Framework
Context Understanding Strategy Development
• Business goals, objectives, outcomes, and Five-Year Enterprise IT Strategic Plan
Strategic Plan • IT mission and vision
• Existing IT Strategic Plan • IT goals and objectives
• IT baseline and performance results • Performance goals and measures
• External drivers: legislation, policies, technology,
How
• IT strategy model
Why
standards, etc. • IT strategic planning framework
• Internal drivers: Secretary’s priorities, • IT strategic planning program
business needs, customer/stakeholder • Linkage with the Tactical Plan and
requirements, IG audits, etc. Performance Management System
Performance Measurement and Evaluation Strategy Implementation
Two-Year Tactical Plan
Performance Management System
• Strategic plan for IT infrastructure based on EA
• Performance reference model • IT initiative update, with performance goals,
• Performance measurement methodologies measurements, and alignment with EA
• Performance measurement processes Performance Budgeting & CPIC processes
(in performance data collection,
analysis and reporting) Annual IRM and Performance Plan
• Performance measurement tools • IT and management initiatives in scope
(to support performance tracking, analysis, and • Performance goals, targets, and measures
reporting, as well as decision-making) • Update of operational roadmap
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Yan Zhao, Ph.D

7. Performance Measurement Model and
Examples -- Planned Measures
IT Strategic Objectives Performance Goals Performance Measures Performance Indicators
Provide integrated information • Goal 1: Improved • Percentage of data sources • Data sources integrated:
services across internal agency, integration of public integrated 60%
external partners, and the service information • Percentage of systems • Systems interoperable:
public. • Goal 2: xxxxx interoperable 50%
Guidance Guidance Guidance Guidance
Initiative Objectives Performance Goals Performance Measures Performance Indicators
Initiative A • Interoperable systems • Percentage of systems and • Systems and services
Objective: Integrate Systems and services for services integrated integrated: 60%
and Services selected business • Percentage of interoperable • Interoperable systems and
areas systems and services services: 50%
Initiative B • A federated data • Percentage of the data • Data management systems
Objective: Integrate Data management system management systems joined federation: 60%
Management Systems joined federation
Initiative C • Established standard • Standard coverage for • Standard coverage: 65%
Objective: Consolidated Health for Federal agencies informatics domains • Stakeholder adoption and
Informatics and departments • Stakeholder adoption and acceptance: 80%
acceptance
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Yan Zhao, Ph.D

8. Performance Measurement Model and
Examples -- Actual Results
Performance Outcome Performance Outcome
IT Strategic Objectives Performance Goals
Measures Indicators
Provide integrated information • Goal 1: Improved • Percentage of data sources • Data sources integrated:
services across internal agency, integration of public integrated 60%
external partners, and the service information • Percentage of systems • Systems interoperable:
public. • Goal 2: xxxxx interoperable 50%
Implement Implement Feedback Roll-up
Initiative Objectives Performance Goals Outcome Measures Outcomes Indicators
Initiative A • Interoperable systems • Percentage of systems and • Systems and services
Objective: Integrate Systems and services for services integrated integrated: 51%
and Services selected business • Percentage of interoperable • Interoperable systems and
areas systems and services services: 49%
Initiative B • A federated data • Percentage of the data • Data management
Objective: Integrate Data management system management systems joined systems joined federation:
Management Systems federation 60%
Initiative C • Established standard • Standard coverage for • Standard coverage: 66%
Objective: Consolidated Health for Federal agencies informatics domains • Stakeholder adoption and
Informatics and departments • Stakeholder adoption and acceptance: 81%
acceptance
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Yan Zhao, Ph.D

9. Framework for IT Strategic Plan and
Performance Measurement Integration
IT Strategic Plan IT Tactical Plan
Strategic IT Strategic Performance Goals Performance Goals
IT Services &
Mission, Goals Mission, Goals and Measures for and Measures for
Infrastructure Plan
and Objectives and Objectives IT strategic objectives IT Initiatives
FEA PRM
FEA PRM
CPIC
CPIC
OMB A-11
OMB A-11
Performance Management System Processes
Processes
(include GPRA)
(include GPRA) IT Performance data
Performance Performance collection, analysis,
Internal Reference Performance data
Performance data
Internal metadata and and reporting tools
Business Reqs Model input and update
input and update
Business Reqs data repository
from initiative
from initiative
owners and
owners and
PART
PART participants
participants
Various performance
Various performance Internal and external
Internal and external
reports
reports auditing
auditing
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Yan Zhao, Ph.D

10. Integration of Strategic Plans, CPIC,
and Performance Measurement
Business Strategic Plan
Performance Measurement Sub-orgs major IT Investments
Enterprise Architecture IT Strategic Plan
and Reporting Performance Reporting
Provides guidance, Provides IT strategic goals, Analyzes performance results, Bottom-up performance
requirements, and IT implementation strategies, and reports progress on results collection
transition plan and performance measures strategic/performance goals
Define initiatives
and associated projects
Project A
Project B
Project B
Filtering
Filtering
Project B Control Evaluation
Project C
Project C Process Process
Project D Project C
Project E
Project E
IT initiatives and projects
CPIC conducts Budget process reviews CPIC conducts
are defined based on CPIC conducts
selection process CPIC approved IT control process
internal and external evaluation
that approves or investments that approves,
drivers with complying process, as
denies investments denies, or adjust project
with the guidance from appropriate
EA and strategic plan funds
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Yan Zhao, Ph.D

11. Performance Management System
The Performance Management System consists of:
Performance Measurement Approach
Performance Reference Model
Performance Measurement Model (Matrix)
Performance Measurement Process Model
Performance Measurement Tools
Performance Management Framework
It enables actual performance measurements and tracking
of initiatives, programs, and projects, as well as alignment
with IT strategic objectives
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Yan Zhao, Ph.D

12. Performance Measurement Approach
Identify roles and responsibilities for performance
measurement
Identify measurement models and processes
Define methods for performance measurement,
analysis, and reporting
Identify tools for performance measurement and data
management support
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Yan Zhao, Ph.D

13. Performance Reference Model
A Performance Reference Model can be created based on
FEA Performance Reference Model and performance
measurement guidance from OMB A-11, GPRA, PART, GAO,
internal business requirements, etc. The content for an
agency PRM can include:
Measurement areas and categories (what is measured)
Multi-dimensional performance indicators
Performance matrix
The Performance Reference Model for IT can be
considered as a sub-model.
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14. Performance Reference Model (2)
Measurement Measurement Measurement Performance
Areas Categories Dimensions Indicators
Performance List of the performance goals List the measurement List the performance
Measurements for (created based on strategic dimensions for each indicators for each
Strategic Objectives objectives and BRM) performance goal performance dimension
Customer Results List of categories for List the measurement List the performance
Measurements customer results dimensions for each indicators for each
measurements category performance dimension
Business Programs, List of the supported List the measurement List the performance
Processes, and programs, processes, and dimensions for each indicators for each
Activities Supported activities program, process, or performance dimension
activity
Technology Infrastructure, services, List the measurement List the performance
Measurements applications, systems, etc. dimensions for each indicators for each
category performance dimension
Capital Planning and List of categories for capital List the measurement List the performance
Budgeting planning and budgeting dimensions for each indicators for each
category performance dimension
Resource Management List of categories for List the measurement List the performance
resource management dimensions for each indicators for each
category performance dimension
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15. Performance Measurement Process Model
Define Collect Analyze Report Take
Measures Data Results Findings Action
Source: HHS
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September 11, 2009 Yan Zhao, Ph.D

16. Performance Measurement Tools
The Performance Measurement Tools
can be selected in the following categories:
Performance measurement portal website
Performance data collection tool
Performance data analysis tool
Performance data repository and reporting tool
** Different COTS products can be used for
separate categories of tools, also one COTS
product may be applied to multiple categories
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17. Performance Management Framework
FEA PRM
FEA PRM
Performance Reference Model Performance Measurement Model
Performance Measurement Model
OMB A-11
OMB A-11 (A Metadata Model)
(include GPRA)
(include GPRA) Measures, indicators, and matrix for
Measures, indicators, and matrix for
• Measurement areas and categories performance goals associated with
performance goals associated with
Internal
Internal • Multi-dimensional performance indicator strategic objectives and initiatives
strategic objectives and initiatives
Business Reqs
Business Reqs • Performance Matrix (defined by stakeholders)
(defined by stakeholders)
PART
PART
Performance Management System
CPIC
CPIC
Internal and External
Internal and External Performance Performance data
Processes
Processes
Auditing
Auditing Metadata and collection, analysis,
Data Repository and reporting tools
Performance data input
Performance data input
Various Performance
Various Performance and update from initiative
and update from initiative
Reports
Reports owners and participants
owners and participants
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Yan Zhao, Ph.D

18. Conclusion
This presentation discussed:
The background of IT strategic planning and performance
measurement in federal government
The structure and models proposed for IT strategic
planning and performance measurement
The practice recommendations for IT strategic planning
and performance measurement integration
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Yan Zhao, Ph.D