Attachment 1

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1. Introduction

1.1 Overview

Philadelphia Gas Works (PGW) has used Microsoft Project and Project Server to manage

Information Services (IS) Projects since 2006. In 2014, PGW upgraded its Project Server

environment to Project Server 2013, but did not implement the Demand Management and

Portfolio Analysis capabilities. PGW would now like to implement these capabilities with

the assistance of a Certified Microsoft Partner. This document explains how the outlined

Demand Management and Project Prioritization objectives, vision, and requirements

provide PGW with demand management and portfolio analysis using the existing on-

premises Microsoft Project Server 2013 implementation.

1.2 Vision

PGW IS expects to use the Demand Management and Project Prioritization tools and

methodologies to:

Provide a standard project format and methodology.

Provide procedures to standardize and efficiently manage project intake and

approval.

Ensure projects are evaluated according to corporate goals, possible risks, cost

factors and any other relevant business drivers.

Provide tools for selecting and analyzing projects according to cost and resource

limits.

Create and implement a web-based project request form and automated workflow to

create and track projects through PGW’s IS project lifecycle.

1.3 Scope

The scope of this project will include implementing the capabilities existing in Microsoft

Project Server 2013 to facilitate intake of projects requests and review and approval of

requests utilizing the demand management and portfolio analysis capabilities available in

the software.

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Microsoft Project Server’s Portfolio Analysis Project Prioritization and Driver

Libraries functions will be enabled and configured in accordance with PGW

requirements.

A single Project Initiation Form (PIF) will be created to handle new project intake,

create the project organization, and make a formal project approval request.

PGW’s existing Risk Calculator and Strategic Alignment (SAS) Calculator

spreadsheets will be converted into web-based applications. These will be

included as part of the Project Initiation process and also function as stand-alone

applications.

It is anticipated that projects may require creating additional Active Directory groups. No

other changes to PGW systems are expected.

1.4 System Overview

PGW’s project management system uses Microsoft Project Server 2013. In

addition, PGW implemented a third party add-on solution that provides significant

pre-programmed additional functionality and dashboards to the on premise three-

tier Project Server environment.

PGW has two project environments: Production and Development. All new

functionality must be deployed, configured, and tested in Development before

moving to Production.

Portfolio Analysis, Project Prioritization, and Driver Libraries on the Project

Server are enabled and configured according to PGW requirements.

1.5 Governance

Before project definition and planning begin a business case must be submitted by the

requesting department that describes the business need or opportunity being

addressed. Before the project can move forward, the following elements are required:

Defined project scope and size

Business need or justification

Executive sponsor

Steering committee approval

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Budget approval

IS Project Governance includes local steering committees and an Executive Steering

Committee (ESC). The ESC has three primary responsibilities; review and approve

new projects, review and cancel projects that no longer meet objectives, review post

implementation assessments to determine if objectives were met. ESC approval is

required for projects that are deemed high risk, are estimated to cost at least $250,000,

or will likely result in significant resource conflicts. All other initiatives are ranked and

prioritized by local steering committees using the same methodology.

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2. Demand Management

2.1 Project Initiation Form Requirements

Project Managers and Portfolio Managers can initiate a project through the Project

Center. In addition, all other Project Web Apps (PWA) users will use the Project

Initiation Form.

2.1.1 Project Initiation Form Description

PGW’s PIF will incorporate the following features:

Includes three tabs: Request Details, Strategic Alignment, and Review.

- Request Details supplies all fields to describe the request.

- Strategic Alignment includes all of the drivers and provides access to the

Strategic Alignment and Risk calculators.

- Review documents and tracks the project approval process.

Includes access to two calculators: Strategic Alignment Calculator

and Risk Assessment Calculator.

- Each project must be evaluated by these calculators.

- The outcome of the calculations allows the system to automatically select

the appropriate driver(s) for the Strategic Alignment tab.

Includes four phases to track and report on form progress: Draft, Submitted,

Rejected, and Approved.

Allows users to save a draft project form before formally submitting the project.

Provides a historical record of all project submissions

Creates an Enterprise Project type upon approval. An Enterprise Project

includes the data from the Project Initiation Form.

Will use values from Project Server where available (i.e. drivers, related

Enterprise Custom Fields (ECFs) such as department, etc.) for ease of

maintenance.

Will be printable.

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2.1.2 Security and Access

All PGW projects:

Can be created by any PWA user.

Can only be edited by the project‘s creator and administrator.

Can be viewed by all users.

Must be deleted by an administrator.

Are accessed by a tile on the PWA homepage (instead of the current

Training Materials tile).

2.1.3 Pages and Views

The PIF will contain a landing page with a button to create a new Initiation Form and a

list view web part.

Four views will be available: All forms, By Status (the default view), By

Requester, and My Requests.

- All Forms displays all forms without groupings or filters. Columns include:

• Project Name

• Program

• Requester

• Project Sponsor

• Requester

Department

• Request Date

• Estimated Annual

Benefit

• Budget

• Fiscal Year

• Non-Discretionary

• Status

• Proposed Start

Date

• Proposed Finish

Date

- By Status shows forms grouped by the Project Status field

- By Requester displays forms grouped by the person requesting the project

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2.2 Strategic Alignment Calculator Business

Requirements

PGW currently utilizes a Strategic Alignment Calculator for business planning and

evaluation purposes. The calculator is currently an Excel spreadsheet. The selected

vendor will program the calculator to be available as an interactive web application. The

calculator provides the functionality shown below.

The Strategic Alignment Calculator will be available as a standalone

web form. It can also be accessed from the Project Initiation Form.

All categories, strategic options, and weightings are configurable by

PGW administrators.

For Categories and Strategic Options, the Active/Inactive status

displays only current values. Inactive values will be available for

historical reference.

An administrator view is available to ensure that active weightings total

100% in each category.

Selections and SAS Scores from the Calculator will be stored for

historical purposes.

A landing page will be provided for users to access saved SAS

Results.

The Calculator form will be printable

If the Calculator is accessed through the Project Initiation Form, the

total SAS score is populated on the Project Initiation Form.

The Project Initiation workflow also uses the total SAS score to

populate the SAS Score ECF and the related Strategic Alignment

driver.

Calculations are as follows:

- Category Scores = Sum of (selected strategic options x

Category weighting for each option)

- SAS Score = Sum of all Category Scores

A visual wireframe will be created.

Technical requirements will be gathered for the application.

Attachment 1

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Figure 2.1. PGW Strategic Alignment Calculator

Project Name Storage Virtualization

Your SAS Score 17%

Commercial Strategies Total 100%

Customer 10% Financial 35% Internal Process 45% Learning & Growth 10%

Category Value 1 4% Category Value 2 9% Category Value 3 2% Category Value 4 2%

y Customer Satisfaction 40% Yr End Cash Flow w /w o Loan & Storage 30% Stakehold relationship Management 15% Executive Development Program 15%

Social Cost Index 30% Rolling 12 month collection rate 15% Increase 1st Call Resolution (Call Cntr) 5% Succession Plan 10%

Quarterly Cost of GCR 30% Labor Cost per Customer 5% Improve FSD Completion Rate 5% New Hire Success Rate 15%

y Operating Expense per Customer 5% Increase Appointments Kept 5% Time to Fill 10%

Corporate Headcount 5% Reduce Cost per Foot of Gas Main 20% Implement Performance Mgmt Plan 15%

y 2% O&M reduction 20% Reduce Cost Per Service Install 14% Internal Communications 15%

Net Accounts Rec as a % of total billings 10% Maintain Number of miles of CI 5% y Progress on DW Project 10%

Net w rite-offs as a % of toal billings 10% Emergency Response w ithin 1 hour 5% y % of depts utilizing new reporting tools 10%

Employee Lost Time Incidents 5%

y % Business Continuity Plan Completed 5%

Increase Total New Sales Volume 5%

Increase Interruptable Vol to Trans 3%

Stabilize PLP Sales in FY06 3%

Increase $ from OSS, LNG, Capacity 5%

Total 100% Total 100% Total 100% Total 100%

Information Technology Strategies

*** Be sure to hit the Reset button after performing any Change operations ***

Strategic Alignment Calculator V4.0

Clear SAS

Change Change Change Change

Reset

Change

Save Score Print SAS Score

Attachment 1

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2.3 Risk Assessment Calculator Business

Requirements

PGW currently utilizes a Risk Assessment Calculator for business planning and

evaluation purposes. The calculator is currently an Excel spreadsheet. The selected

vendor will program the calculator to be available as an interactive web application. The

calculator provides the functionality shown below.

The Risk Assessment Calculator Excel spreadsheet will be created as

an interactive web application. It will also be available as a standalone

web form.

All Risk Categories, Risk Values and weightings are configurable by

PGW administrators

Active/Inactive status is required for all Risk Categories and Risk

Values

Calculator results will be stored for historical purposes

A landing page will be available for users to access saved Risk

Assessment Results

The calculator form will be printable

When the calculator is accessed from the Project Initiation Form, the

total Risk Score will be populated on the Project Initiation Form.

The Project Initiation workflow also uses the total Risk Score to

populate the Risk Score ECF and the related Risk driver.

Attachment 1

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Figure 2.2. Risk Assessment Calculator

Project Name Collections -- Rack & Dispatch 28 28 28

Score 28 16 12 0

Category Low Risk Characteristics L M H High Risk Characteristics

The business benefit of the project is: Well defined Y Poorly defined

The scope of the project is: Well defined Y Poorly defined

The project sponsor is: Identified, committed, and enthusiastic Y Not identified or not enthusiastic

The business customer commitment level is: Passionate and enthusiastic Y Passive and hard to engage

The project manager has: Similar experience on multiple projects Y Little experience on similar projects

The project team is: Located together Y Dispersed at multiple sites

Project management processes and procedures are: Familiar and will be utilized Y Not familiar and will not be utilized

The business requirements of the project are: Understood and straightforward Y Very vague or very complex

The system availability requirements include: Windows of availability and downtime Y Availability on a 24/7 basis

The technical requirements are: Similar to others in the company Y New and complex

The data requirements are: Simple Y Complex

The number of locations to deploy to is: One Y More than four

The number of system interfaces are: One or none Y More than five

The number of organizations this will affect is: One or two Y More than five

The total estimated effort hours are: Less than 1,000 Y Greater than 5,000

The total estimated project duration is: Less than three months Y Longer than one year

The subject matter is: Well known by the project team Y Not well known by the project team

The project is dependent on: Zero or one outside project or team Y Three or more outside teams or projects

Business processes, procedures, policies require: Little or no change Y Substantial change

Changes to the organizational structure require: Little or no change Y Substantial change

The technology being utilized consists of: Existing software, hardware, languages, databases, and tools Y New software, hardware, languages, databases, or tools (or new releases)

The quality of current data is: Well defined and simple to convert Y Poor or complex to convert

If a package implementation: No (or minimal) customization is needed Heavy customization is needed

If a package implementation: The product or release is stable The product or release is new to the market

If a package implementation: The vendor is familiar in this market The vendor is new to this market

Risk Assessment Calculator

Save Score Clear Score

Attachment 1

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2.4 Project Governance and Workflow

2.4.1 Project Initiation Workflow

The PIF will use a SharePoint workflow to support the submittal and approval process.

This workflow will be activated by a Create Project command and follows the process

explained here.

1. The project requestor or submitter may save the PIF in a Draft status when this

form is created.

2. When the requestor or submitter submits the PIF, the form’s Status is set

to Submitted and an email notification of the submission is sent to the

project approver.

3. If the approver rejects the PIF, the form’s status is set to Rejected and an e-mail

notification of the rejection, including the rejection reason, is sent to the

Requestor/ Submitter and sponsor. The rejected form is saved for historical

reference.

4. When the PIF is approved:

The form’s status is set to Approved.

A project is created in PWA based on the value that the Approver selected

in the Project Type field on the PIF.

E-mail notifications are sent to the Requester, Sponsor, and Project

Manager.

The Project ID is created on the PIF.

The PIF is saved for historical reference.

2.4.2 Project Workflow Requirements

A project will include the following Workflow Phases: Initiate, Analysis, Design, Build Test, Implement, and Complete. Certain Phases may include more than one Stage. Table 2.2, Project Phases and Stages, provides extended descriptions of each Workflow Phase and its associated Stage(s).

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All projects will use a standard project server workflow to ensure compliance and data integrity. The requirements for the workflow are as follows:

A project may be created in PWA manually using the Project Center or

automatically using the Project Initiation Form.

Projects created in PWA begin in the Define stage of the Initiate phase.

- All required fields except Committee Date, Outcome and Reviewing

Committee must be populated to enter the Select stage of the Initiate

phase.

Committee Date, Outcome, and Reviewing Committee fields must be populated

to move the project into the Analysis phase.

All Strategic Drivers, including the SAS and Risk Scores, must be populated by

the Select stage of the Initiate phase.

IT PMO leadership will update projects to include the outcome of committee

meetings and any related committee comments.

- If the committee decides to defer the project, the project remains in the

Select stage

- If the committee decides to cancel the project, the project moves to the

Cancelled stage.

- If the committee decides to approve the project, the project moves to

the Analysis phase. Committee Date, Outcome, and Reviewing

Committee fields must be also completed to move to the Analysis

phase.

Email notifications will be sent to Project Managers after committee results are

submitted.

If the Inactive Status is set to Cancelled at any time during the project approval

process, the project workflow moves to the Complete — Cancelled phase.

Projects may be placed in On Hold status and resume process flow.

Phases and Stages will be configured as shown in Table 2.2 below.

Attachment 1

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Table 2.1. Project Phases and Stages

Workflow Phases Stages

Email Content

Required Fields to Enter Stage

Committee

Outcomes PDP Displayed Read-Only Content Notes

Initiate Define Email notification sent upon moving to Initiate-Select phase

Project Name

Start Date

Owner (Project Manager)

Project Sponsor

Project Details

Strategic Drivers

Schedule

Initiate Select Email sent to PM notifying about Committee Outcome

Client

Project Sponsor

Description

Project Size

Project Class

Project Budget Type

Fiscal Year Payback

Proposed Cost

Proposed Start

Date Proposed

Finish Date

Approved (move to Analysis)

Rejected (move to Cancelled)

Deferred (remain in this stage

Project Details

Strategic Drivers

*Required completion at this stage

Schedule

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Workflow Phases Stages

Email Content

Required Fields to Enter Stage

Committee

Outcomes PDP Displayed Read-Only Content Notes

SAS Score

Risk Score

Analysis Analysis Committee Outcome

Committee Date

Project Details

Strategic Drivers

Schedule

Committee Outcome,

Committee Date,

Proposed Cost

Design Design Project Details

Strategic Drivers

*Read only at this stage

Schedule

Committee Outcome,

Committee Date,

Proposed Cost

Build Build Project Details

Strategic Drivers

*Read only at this stage

Schedule

Committee Outcome,

Committee Date,

Proposed Cost

Test Test Project Details

Strategic Drivers

*Read only at this stage

Schedule

Committee Outcome

Committee Date

Proposed Cost

Implement Implement Project Details

Strategic Drivers

Committee Outcome

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Workflow Phases Stages

Email Content

Required Fields to Enter Stage

Committee

Outcomes PDP Displayed Read-Only Content Notes

* Read only

at this stage

Schedule

Committee Date

Proposed Cost

Complete Complete Project Details

Strategic Drivers

* Read only at

this stage

Schedule

All workflow controlled fields and drivers

Complete Cancelled Project Details

Strategic Drivers

*Read only at this stage

All workflow controlled fields and drivers

A project can be moved to Cancelled if it is

Rejected by Committee, or

Inactive Status = Cancelled at any time

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2.4.3 Project Level Custom Fields

PGW expects the PIF will require the following custom data fields.

Table 2.2. New PIF Custom Fields

Field Label Field Type Stage Where Field is Required

Business Need Multi-line Text Define

Estimated Annual Benefit

Cost

Project Size Single-select from Project Sizes lookup table Note: Lookup Table to be created

Define

Fiscal Year Single-select from Fiscal Years lookup table Note: Lookup Table to be created

Define

Non-Discretionary

Single-select drop down from Yes/No lookup Table

Define

Proposed Cost Cost Define

Proposed Start Date

Date Define

Proposed Finish Date

Date Define

Payback # years

Number Define

SAS Score Number Define

Risk Score Number Define

Committee Date Date Select

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Field Label Field Type Stage Where Field is Required

Committee Outcome

Single value selected from Committee Outcome Values lookup table

Select

Reviewing Committee

Single value selected from Committees lookup table

Select

Committee Comments

Multi-line Text

Spending Expiration Date

Calculated as follows:

Formula:

If Project Budget Type = Capital,

display 8/31/FiscalYear+1;

If Project Budget Type = Operating,

display 8/31/Fiscal Year.

Example:

If a project has a Project Budget Type of

Capital and a Fiscal Year of 2015, the

Spending Expiration Date is 8/31/17.

If the project has a Project Budget Type of

Operating, the Spending Expiration date is

8/31/16.

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2.4.4 Lookup Tables

PGW’s Information Services project methodology will require creating new Lookup

Tables. PGW anticipates the need for the tables shown below.

Table 2.3. Lookup Tables and Fields

Lookup Table Name Field Type Field Values

Project Sizes Text Under $50,000

$50,000-$249,999

$250,000 and above

Fiscal Year Number 2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Committee Outcome Values Text Approved

Deferred

Rejected

Committees Text Local Steering Committee

Enterprise Strategic Planning Committee

2.5 Project Detail Pages (PDP)

PGW anticipates that Enterprise Projects will require a new Project Detail Page.

The Project Detail Page must display a link to the PIF used to create the

Enterprise Project.

Fields will be grouped in associated sections and columns as shown in the

page mockup in Figure 2.3 below.

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Figure 2.2. Project Detail Page Fields

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3. Project Prioritization and Portfolio Analysis

PGW will be implementing Portfolio Analysis functions using Microsoft Project Server.

This functionality requires four new components.

Driver Library

Prioritization Process

Strategic Alignment PDP

Portfolio Analysis Views

These are discussed in the sections below.

3.1 Driver Library

PGW has selected drivers that align with corporate initiatives. See Table 3.1 below for

descriptions of the drivers in the Driver Library.

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Table 3.1. Driver Library

Driver Name Description None Low Moderate Strong Extreme

Time to Market

Overall project 1 year or more 9-12 months 6-8 months 3-5 months 0-2 months

Lifecycle Replacement

Maintain critical infrastructure to ensure safety, reliability and support

No lifecycle replacement requirement

Should be done to meet ongoing support

Consumer Satisfaction

Improve consumer satisfaction through implementing standardized customer service processes, grow the number of customer service relationships and improve the nature of each relationship.

Does not impact consumer satisfaction

Small increase in consumer satisfaction

Moderate increase in consumer satisfaction

High increase in consumer satisfaction

Extreme increase in consumer satisfaction

Project Risk Level of risk as determined by Risk Calculator

131 and higher 101-130 61-100 31-60 0-30 risk factor

Improve Product Quality

Implement process improvements and best practices in order to improve

Reduces defects by less than 5%, or attains a service-level agreement of 90% or less.

Reduces defects by up to 10% or attains a service-level agreement

Reduces defects by up to 15% or attains a service-level agreement between 95%

Reduces defects by up to 20% or attains a service-level agreement

Reduces defects by more than 20% or attains a service-level

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Driver Name Description None Low Moderate Strong Extreme

product quality as measured by SLA levels

between 90% and 95%

and 97% between 97% and 98%

agreement of 99% or more

Improve employee work life

Implement approved morale-boosting techniques in order to measurably improve employee work life

No improvement in employee work life

Small improvement in employee work life

Moderate improvement in employee work life

Significant improvement in employee work life

No improvement in employee work life

Standardize

and

streamline

cross-

functional

processes

Implement a

library of

standardized

functions across

processes, in

order to reduce

the cycle time of

processes across

the organization

as a whole and

increase

consistency in

operations.

Does not improve

process cycle

time for any

processes.

Improves

process

cycle time for

up to 2

processes

Improves

process cycle

time for up to 3

processes

Improves

process

cycle time for

up to 4

processes

Improves

process cycle

time for more

than 5

processes

Expand into new markets and segments

Expand revenue growth aggressively by penetrating new

Does not grow revenue from any markets and segments

Grows revenue from new markets and

Grows revenue from new markets and segments by

Grows revenue from new markets and

Grows revenue from new markets and segments

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Driver Name Description None Low Moderate Strong Extreme

markets and expanding reach to segments of penetrated markets.

segments by up to $100k

$100k - $500k segments by $500k - $1M

by more than $1M

Financial

Benefit

Level of financial

impact or number

of years for

Simple Payback

Indirect

impact/benefit

difficult to quantify

or Simple

Payback is more

than 5 years

Low financial

benefit or

Simple

Payback is

more than 3-

4 years

Moderate

financial benefit

or Simple

Payback is more

than 2-3 years

Low financial

benefit or

Simple

Payback is

1-2 years

Low financial

benefit or

Simple

Payback is

less than 1

year

Strategic

alignment

Project alignment

with corporate

goals and

strategic metrics

as determined by

the Strategic

Alignment

Calculator

0-20 21-40 41-60 61-80 81-100

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3.2 Driver Prioritization

The successful proposer should expect that default driver prioritizations will be

configured after the drivers are implemented. Additional prioritizations will be

conducted on an as-needed basis by Portfolio Managers. Department filtering is not

necessary as drivers apply to all projects and departments. Since there is no existing

prioritization model, PGW will use the calculated prioritization method.

3.3 Portfolio Analysis

Portfolio Analyses will be used monthly for Steering Committee meetings and twice a

year (approx. September and March) for Capital or Operating Budget project proposals.

Proposed Cost will be the primary cost constraint value. Total Cost may be used as a

secondary constraint.

3.4 Views

The following views will be created:

Projects in Select Phase

Projects by Phase

Projects by Project Budget Type

Projects by Non-Discretionary

Columns in these views will include Project Name, Department, Budget Type, Client, %

Complete and Duration, Non- Discretionary

The Summary view for Portfolio Analysis will be modified to include the following field:

Start, Finish, Project Budget Type, Non-Discretionary flag, Proposed Cost, % Complete,

and Duration.

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4. Security

The existing Portfolio Managers group will be the only group with rights to perform

Portfolio Analyses, define drivers, and create driver prioritizations.

Portfolio Managers group members will be required to update projects with the results of

Steering Committee meetings. Therefore, this group must be updated to allow the

editing and saving of projects.

The existing Active Directory group that populates Portfolio Manager Security group

users must be updated.

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5. Additional Requirements

5.1 Project Site Requirements

The Project Phases web part must be updated to use Workflow Phases.

5.2 Testing Requirements

All workflows, forms, views, and configuration settings will be unit tested in the

Development environment.

User Acceptance Testing will be conducted by designated PGW testers prior to rollout

to Production.

5.3 Training Requirements

Both Project Manager and Administrator training will be conducted.

Project Managers will need training to understand and utilize the new Strategic

Alignment and Risk Calculators and move projects through the complete project

lifecycle.

Administrators will need to understand how the PIF and workflows are configured and

how to restart and move projects to a particular stage within a workflow.

5.4 Implementation Requirements and Impacts

5.4.1 Requirements

Changes to Production will be scheduled per PGW requirements. These changes will include:

Upload and activate Project Initiation Solution

Upload and configure Project Server Workflow

Create Custom Fields, PDP, Workflow Phases and Stages

Create Project Center and Portfolio Analysis views

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5.4.2 Impacts

Projects in progress will be impacted by this rollout. Impacts are described below.

All projects currently in Initiation Phase will be moved to the appropriate Define

or Select phase. All required fields and drivers must be completed.

Projects in existing phases will be moved to the appropriate Workflow phase.