2013-M207

Incorporation of Program Priorities in Funding-Constrained Environments

Methods and Models II Track

M2-7_Presentation_IncorporatonOfProgramPrioritiesInFundingConstrainedEnvironements_Halstead

Abstract:

The recent era of declining Federal (and organizational) budgets has given new impetus to the ability to prioritize funding in an efficient and effective manner. While there are multiple methodologies to pursue these budget reductions, there is a tendency for both allocations and reductions of funding to be top-down, i.e. Organization-driven with a less defensible framework to support Program priorities. This approach heightens the risk that Program goals and objectives will be negatively impacted due to underfunding in this manner due to lessened consideration of Program-specific environmental factors.

This paper will detail the lifecycle of investment prioritization using an allocation scheme based on Analytical Hierarchy Process (AHP) with specific attention paid to the development of the cost drivers that are appropriate for the environment. Two specific uses of the Process— investment prioritization, i.e. forward-looking and cost reductions (“taxes”) across a portfolio will also be demonstrated. Finally, an overarching notional timeline as well as lessons learned will be presented.

A working knowledge of this methodology will provide foundational capability to Cost Estimator/Analysts and should help provide a significant platform from which Organization requirements can be matched with Program requirements in a more objective manner.

Author(s):

Leon Halstead
Booz Allen Hamilton
Leon Halstead is an Associate on Booz Allen Hamilton’s Analytics Team. He has 23 years of professional and technical experience gained through a variety of consulting engagements and corporate financial management. He has held a certified Cost Estimator/Analyst (CCEA(R)) designation since 2001 and holds both MBA (Finance) and MS (Information & Telecommunication Systems) degrees. He earned his Project Management Institute (PMI) Project Management Professional (PMP(R)) certification in 2011. His technical and analytical experience has been utilized for upwards of twenty-five Federal Government organizations across the civil, military and national security sectors. He was recently awarded Booz Allen Hamilton’s Cost Estimation Specialist-level belt. This credential is based on demonstrated competency based on rigorous industry-recognized and Booz Allen-specific requirements.

His work includes a particular focus on the intersections of cost and technical performance and includes multiple IT Infrastructure Total Cost of Ownership (TCO) studies, IT-based Analysis of Alternatives (AOA) projects, Agency- and enterprise-level budget decision support/optimization, and a number of strategy-based efforts. Previous work included Program Control and Earned Value Management where he prepared program Estimates to Complete (ETC) and Estimates at Completion (EAC), and Operations Analysis where his focus was on resource optimization in both a supply chain/logistics environment and Corporate Financial Management functions.

Michael Lang
Booz Allen Hamilton
Michael Lang is a Business Analytics Lead Associate at Booz Allen Hamilton with over 16 years’ experience in the private and public sectors. He leads analysts in developing Activity Based Costing (ABC), Working Capital Fund (WCF) management, Program Office Estimates (POE), Cost Analysis, Business Process Analysis (BPA) and Business Case Analyses for an Intelligence Agency. Mr. Lang provides senior financial and economic analysis for a variety of customer uses, including financial management, multi-criteria cost analysis, budget formulation and execution, and strategic decision-making. He has led multiple decision analytic strategic sessions utilizing AHP and MCDA methodologies. Mr. Lang currently serves as Booz Allen’s lead financial analyst/business manager providing business analysis assistance to senior leadership and senior program manager staff for Estimates to Complete (ETC) and Estimates at Completion (EAC), program controls, and staff optimization. He holds a certified Cost Estimator/Analyst (CCEA(R)) designation.

Derrick Kuhn
Booz Allen Hamilton
Derrick Kuhn is a Consultant on Booz Allen Hamilton’s Analytics Team. He is currently pursuing an MS in Computational and Applied Mathematics, and is a PCEA candidate. His work experience includes integrating analytics into Governance processes as well as performing and automating Portfolio Management.

Bryan Shrader
Booz Allen Hamilton
Bryan Shrader is a Principal with Booz Allen Hamilton’s Analytics Team. He has over 15 years of professional experience specializing in cost analysis, resource optimization, portfolio assessment and decision analysis across the Federal Government. He has supported a variety of customers in the Civilian, Defense, and National Security sectors, with a focus on IT Systems and Facilities-related analysis. In addition to his technical experience, Mr. Shrader also leads Booz Allen Hamilton’s Cost Estimation Functional Belting program. He is responsible for developing application criteria, establishing approval processes, and leading application review committees.
Mr. Shrader is an active member of ICEAA, earned his CCEA(R) in 2001, and obtained his Project Management Professional (PMP(R)) certification in 2009. In addition, Mr. Shrader has received and taught training on a variety of Decision Support tools including Equity, Decision Lens, Prosight, and Expert Choice.