Summary: This testimony discusses how best practices at leading organizations can be used to improve the management of information technology in the federal government. This is especially important for the Internal Revenue Service (IRS), whose tax systems modernization effort has been plagued by problems. GAO makes four main points. First, better facts are needed about the government's information technology investments. Although the federal government spends upwards of $25 billion annually on information technology, it is unclear what the government is getting for its money. Second, information technology is characterized by high risk and high return. Information technology can boost organizational performance, but the risks of failure are ever present and must be rigorously managed. Third, repeatable success takes sound management processes that are applied with relentless discipline. Organizations with successful information technology projects have sustainable and effective management practices in place. Fourth, the challenge is implementation. Leading organizations discovered that understanding these practices was only a first step. For most, it took three to five years to fully translate the practices into improved management processes. Similarly, a consensus has emerged among decisionmakers in the federal government on what the problems are and how to solve them. Now, agency leaders must effectively implement information technology management processes and reinforce accountability to produce tangible results from information technology investments.
