VA Realignment Plans Include Critical Success Factors

VA’s plans for realigning the management of its IT program include  elements of several of the six factors that we identified as critical to the  department’s implementation of a centralized management structure (see  table 1). Additional departmental actions could increase assurance that  the realignment will be completed successfully. For example, department officials indicate  that VA is currently assessing the roles and responsibilities of the  approximately 6,000 staff that have been permanently assigned to the  Office of Information and Technology, but the department has not yet  established a knowledge and skills inventory to determine what skills are  available in order to decide the proper roles for all employees within the  new organization. In particular, VA has taken actions to  improve communication for the realignment by addressing staff concerns. According to the  department, it has concentrated its efforts to date on transferring staff to  the CIO’s office and on creating a new organizational structure. The department has not addressed this critical success factor because it  has not dedicated an implementation team to manage the realignment  effort and track its progress. Centralized Control of IT Budget Has Not Yet Been Clearly Established

Within VA’s new centralized management structure, the CIO is expected to  be responsible for ensuring that there are fiscal controls over the  department’s IT appropriation and for overseeing capital planning and  execution. According  to the department, it plans to establish the CIO’s control over the IT  budget by (1) designating organizations with specific roles and  responsibilities for controlling the budget to report directly to the CIO, (2)  implementing an IT governance structure that assigns budget oversight  responsibilities to specific governance boards, and (3) developing and  implementing IT portfolio management and financial management  processes in the new organization. While these measures show the  potential for establishing the CIO’s control of the budget, the department  has not yet fully implemented them; thus, their effectiveness in ensuring  accountability for the budget has not yet been established. Expedite the development of performance metrics to track the progress of  the realignment. Appendix I: Scope and Methodology

To determine whether the Department of Veterans Affairs (VA)  realignment plan includes critical factors for successful implementation of  a centralized management approach, we obtained and analyzed  realignment documents from VA, its realignment contractor, and the  independent verification and validation (IV&V) contractor.
Why GAO Did This Study

The Department of Veterans Affairs (VA) spends nearly $1 billion yearly to support its information technology (IT) needs; yet it has encountered persistent challenges in managing IT projects. In October 2005, VA initiated a realignment to centralize its IT management program that it plans to complete by July 2008. GAO was requested to determine (1) whether the department's realignment plan includes critical factors for successful implementation and (2) how the centralized management approach is to ensure that the chief information officer (CIO) is accountable for the department's entire IT budget. To do so, GAO identified critical success factors, analyzed realignment and budget documents, and held discussions with VA officials.

What GAO Found

VA's plans for realigning the management of its IT program include elements of several factors that GAO identified as critical to the department's implementation of a centralized structure; additional departmental actions could increase assurance that the realignment will be completed successfully. Since undertaking the realignment, VA has concentrated its efforts on transferring approximately 6,000 staff to the CIO's authority and on creating a new organizational structure. It has also taken certain actions to establish an IT governance plan, identify workforce management responsibilities, and increase communication about the realignment with staff. However, it has not yet created a knowledge and skills inventory to help determine proper roles for all employees in the new organization, established governance boards to manage resources, or dedicated an implementation team to manage change and track the progress of the realignment with performance metrics. As a result, the department risks jeopardizing the success of its efforts and may not realize the long-term benefits of the realignment. Within the new structure, the CIO is to have responsibility for ensuring that there are fiscal controls over the IT appropriation and for overseeing capital planning processes, budget execution, and financial management programs. According to the department, it plans to establish the CIO's control by (1) designating organizations with specific roles and responsibilities for controlling the budget to report directly to the CIO; (2) implementing a governance structure that assigns budget oversight responsibilities to specific governance boards; and (3) developing and implementing IT portfolio management and financial management processes. While these measures show the potential for establishing control of the budget, VA has not yet fully implemented them or committed to a time frame for doing so. Thus, their effectiveness in ensuring the CIO's accountability for the budget has not yet been established.