Dirk Lupien, Sr. Constultant Oakwood Systems Group.
-
Upload
godwin-hood -
Category
Documents
-
view
234 -
download
6
Transcript of Dirk Lupien, Sr. Constultant Oakwood Systems Group.
Dirk Lupien, Sr. ConstultantOakwood Systems Group
Project and Portfolio Management disciplines directly affect IT’s ability to align with and support strategic company goals. In this session, we will discuss executive visibility and control required in a Business Enabled Enterprise. This includes reviewing the critical success factors, KPI development, processes and management concepts required to optimize business performance.
PPM level set and financial advantagesPortfolio visibility is key to project selection The Dashboard concept What are KPI’s – What to include in your dashboard Business and IT alignmentManagement insight and control to optimize business performance
Six critical success factors of PPM
Supporting and evolving Project Management processes
Project Management Institute:
“The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.”
Po
rtfo
lio &
Pro
gra
m M
an
age
me
nt
Po
rtfo
lio &
Pro
gra
m M
an
age
me
ntRequest ManagementRequest Management
Business Case DevelopmentBusiness Case Development
Portfolio Prioritization / ValuationPortfolio Prioritization / Valuation
Governance Process DefinitionGovernance Process Definition
Portfolio Optimization / SelectionPortfolio Optimization / Selection
Program & Portfolio ReportingProgram & Portfolio Reporting
Benefits RealizationBenefits Realization
Project PlanningProject Planning
Status ReportingStatus Reporting
Resource ManagementResource Management
Time ReportingTime Reporting
Change ManagementChange Management
Earned Value AnalysisEarned Value Analysis
Cost ManagementCost Management
Issue ManagementIssue Management
Risk ManagementRisk Management
Pro
jec
t M
an
age
me
nt
Pro
jec
t M
an
age
me
nt
Bu
sin
es
s &
Te
chn
olo
gy
Sta
ke
ho
lder
sB
us
ine
ss
& T
ech
no
log
y S
tak
eh
old
ers
Have I selected the right project
investments?
Do the project investments align with our
strategic objectives?
Do I have sufficient resources to deliver
the selected project investments?
Are my project investments delivering the
forecasted benefits?
Portfolio Management answers:
Project Management answers:
Who’s available to staff our new projects?
When will we really finish and what will it
cost?
What am I supposed to be delivering this
week?
Can we link project data with our front & back
office?
In order for project portfolio management to be successful, project management, resource management, reporting, and organizational processes must be well established. Similarly, if processes have not
evolved to allow individual projects to be managed in a standard way, or if the team members are not fully participating in the Enterprise Project
Management Solution initiative, accurate analysis of project portfolio data is not possible.
Financial Benefit:
10%-25% Cost Reductions by Companies Implementing PPM Processes & Tools
Common Sources of Financial Benefit:
Increase of 5%-20% in Cost Avoidance against IT discretionary budgets
Increase of 5%-40% in projected return for global IT budget (IRR, NPV, EBIT)
Increase of 5%-15% in resource utilization
(Gartner PPM show, 2005)
PPM Advantages:
Over 80% of organizations utilizing accurate portfolio valuation could be able to reduce waste or increase value creation opportunity by 20% to 40%
With Sarbanes-Oxley and similar legislation, PPM provides the statistical rational for large project investments and the transparency and accountability to know where investments are flowing in the organization
Improved communication & alignment between IS and business leaders - strategic corporate direction
Reduces the number of redundant projects and makes it easier to kill projects
The mantraIf you can not identify it, you can not prioritize it, If you can not prioritize it, you should not authorize it,If you authorize it, you expect it to be controlled,If it is not controlled, how do you know if your selection is meeting your strategic objectives?
It’s simple, isn’t it?
Just provide consolidated project data in an easy to read format that lets management drill down and investigate when there are problems
KPI – Key Performance Indicators or Indices
What are the important factors affecting your business today and how do you determine if those items are in trouble?
What is important to your business?
Cost (CV, CPI, Budget, Actual?)
Schedule (SV, SPI, Status?)
Closed Sales, Sales Cycle Duration, Project Phase
Revenue Generated, Profit Margin
Dashboards are a way to view summary business data
They can include charts and graphs for trend analysis, issues, risks or any pertinent data that provides a clear picture on the health of projects or the business
You should start with those items that define success
Lagging Indicator Leading Indicator(s) Resulting Change
Sales Revenue Calls per Week Optimize Behavior ofSales Team
Customer High First Call Raise Sense of UrgencySatisfaction Resolution PLUS of Customer ServiceWith Call Low Rate of Representatives (CSR’s)Center Abandonment
MISSION
FUNCTIONALPERSPECTIVE
OBJECTIVES
GOALS
CSF’s
KPI’s
BUSINESSPROCESS
DASHBOARDVIEWS
VALUE
DATAUSAGE
BUSINESSDATA
To what extent do the business processes and data support corporate objectives and
goals?
How well do we use our corporate data assets to measure business performance?
What does the KPI value chain look like for your organization?
In defining your portfolio, review initiatives and determine which company goal they support.
If the initiative can not be aligned to a company goal, why are you doing it?
The trick is to define all projects being worked so a true picture can be assembled.
If projects are left out, resources allocation will be faulty.
Stages of ExcellenceBasic World-Class
Opportunity Factor
Ad Hoc
No Portfolio Inventory or Repeatable
Processes
-“Just Do It/FIFO”-Success is random-Little/no business driver alignment
Project
Inventory
Processes are defined & documented, and most projects are aligned to a consistent PMM & business drivers
All projects are consistently captured in some form of a project inventory
Project
Portfolio
Portfolio analysis is repeatable, predictable, and consistently used to evaluate and optimize project portfolio selection
Portfolio Management teams are able to understand, analyze, & recommend optimal portfolio bundles and schedules to technology and business partners
CrossPortfolio
PPM is adopted and used consistently across multiple organizations and portfolios
Portfolio Analysts can compare and leverage portfolio analysis information across multiple departments
Consistent measures enable cross portfolio analysis, selection, planning and management that supports predictive modeling and internal / external benchmarking
Enterprise
PPM is optimized across the enterprise with a focus on continuous risk mitigation and value creation
Project portfolio performance and risk data is understood and can be compared at the individual, cross-LOB, and enterprise levels
Senior leadership is able to leverage PPM analysis when allocating funds to various portfolios
Ability to measure and benchmark entire portfolio lifecycle
Portfolio Value = Value Potential x Ability
to Realize
Crawl Walk Run
Abili
ty t
o Identi
fy B
usi
ness
Valu
e P
ote
nti
al
(Pro
ject
Port
folio
Serv
er
20
07
)
Ability to Realize Business-Value Potential(Project Server 2007)
75% 100%
66%
100%
0%
Portfolio Management
Project Management
50%Value Realized
50% Value Lost
Project Management helps ensure organizations successfully deliver the selected investments and realize the business value
Select and Deliver the Right InvestmentsPortfolio Management enables organizations to identify and select the investments that will maximize business value
As an organization, you must understand your organizational strategic goals and be able to clearly articulate them. KPI’s must be clearly defined.11
Do you know how every project measures up against the strategic goals of the organization?
How do you weight and score projects today?
Are you able to consistently weight your portfolio against your organizational KPI’s and business objectives?
Can a project be easily rescored as it progresses, or if there are changes in scope?
CompleteProject Request
Form
Resource Requirements
Business Case Development
Cost Estimates
Risk Assessment & Mitigation
Macro Schedule Assessment
ID Inter Project Dependencies
Go / Kill
Initiate Select Plan Manage
Strategic Alignment Assessment
Portfolio Prioritization
Strategic Value
Financial Value
Risk Value
Portfolio Optimization
Charting Analysis
Constraint Analysis
Adv Portfolio Analytics
Portfolio Sequencing
Assess Surplus & Deficit
Sequence Portfolio
Run Staffing Scenarios
Select Portfolio
Develop Detailed Project Plan
---------------------ScheduleResources
BudgetRisks Abatement
ProcurementReporting
etc.
21
4567
123
123
123
Portfolio Tracking
Change Request Mgt
Status Reporting
Portfolio Optimization
123
Port
folio M
an
ag
em
en
tP
roje
ct
Man
ag
em
en
t
Send Project to Microsoft
Project Server
Go / Kill
PPM Governance Phases
Go / Kill
Project Planning
Project Tracking
Project Tracking
Time Reporting
Portfolio Reporting
1
34
Issues & Risk Mgt
Document Mgt 56
Team Collaboration
7
Complete
Resource Mgt2
Benefit Forecasts3
Close
8 Procurement Mgt
9
Financial Reporting
ProjectClosure
PortfolioUpdates
Initial and on-going organizational change communication and education programs are required to ensure process improvement and cultural acceptance.22
How well is the change control process defined, understood, and used?
Is your organization prepared to make the cultural and process changes necessary to ensure adoption of and adherence to a PPM initiative?
Is senior management visible to the organization in support of the PPM initiatives?
Does your project office provide on-going education programs in support of PPM and PMM initiatives (i.e.; lunch-n-learns, internal seminars, templates, tools, etc.)?
Culture =
Value =
How easily the proposed change will be accepted.
+
Change will always challenge the existing culture of an organization. The greater that challenge, the greater the reliance on compliance metrics and the need for the organization’s management team to be actively and visibly supportive of the change. The greatest success to implementing
organizational change comes from tangible accountability in compliance to the change at all areas/levels of the organization impacted by the change, including management.
Justification to obtain perceived commitment to see the change through to successful completion - must be measurable!
Risk =Level of actual organizational/individual accountability to the value commitment (based on actual/measurable acceptance of the change).
AcceptanceMetric forChange
> 85% Compliance for a minimum of 3 Months to ALL change metrics.
=Acceptance
ofChange
=
Making a portfolio management process work requires strong governance, participant accountability, and relevant metrics.33
Does your team understand your project management methodology and adhere to it?
Do you use clearly understood and consistent metrics for measuring and managing projects?
Are project goals and associated measures communicated clearly and consistently?
What are your accountability standards for project participation, compliance, and management?
The project prioritization framework should include investment categories, risk-adjusted evaluation criteria, and strategic alignment.44
How do you prioritize projects – and how do you communicate the prioritization to your team?
What safeguards are in place to prevent “tag-along” projects from being improperly categorized / prioritized?
Can you dynamically re-prioritize projects based on your changing business climate, and communicate that change to your project office / team?
How do you prevent lower priority projects from keeping resources tied up that should be used for higher priority projects?
To facilitate the use of PPM, provide tools that make compliance easier. Tools ensure consistency and support group decision making.55
What tools are you using today? Are they meeting your needs for PPM?
Do you have ready access to tools that, with proper implementation planning, could meet these needs?
What framework can be structured around your toolset to provide high level visibility to the PPM?
Do your current tools provide you the best possibilities of projects that your organization can implement given the available budget and your organizational capabilities?
Prioritize projects by their business values as derived statistically
Select the best portfolio by optimizing against risk, budget, and resource constrains
Utilize “What If” analysis through advanced portfolio intelligence
Provide drill down capability as to the reasons why a project may not qualify for portfolio selection
Enable communication and sharing of portfolio data through automated, real-time distribution services
Provide practical graphics and representations that are easily interpreted and modified to reflect a project’s current state within the portfolio, including project change requests.
Through effective workflow management, insure and expedite scalable project governance
Portfolio Management is such a major undertaking that it needs to be treated as a strategic project to succeed. PPM needs a process owner and a qualified support team.66
At what level of the organization will PPM be utilized – Departmental, Divisional, Corporate?
How will oversight of the portfolio be governed and who will be accountable for the accuracy of data within the portfolio?
What is the perceived value of the portfolio by varying levels of the organization?
Does the business owner of the portfolio have the authority to determine and insure compliance to business processes that support the portfolio?
Where does the expertise lie within your organization in developing a Project Portfolio solution?
Can you field a qualified support team?
PMM PMM AnalysisAnalysis
MethodologiesMethodologies & Standards& Standards
PMM AuditPMM AuditServicesServices
InformationInformationDistributionDistribution
InformationInformationManagementManagement
SupportingSupportingBusinessBusiness
ProcessesProcesses
• Work Plan Storage• Deliverables Repository• Time Tracking Services• Resource Pool• Financial Data• Project Data Archives
• Earned Value• Financial• Time Reporting• Compliance Statistics• Resource Management• Trending
• Project Management• CMMI• PMI• Financial• COBIT
• Time Tracking• Business Compliance• Forecasting• Financial
• Data Distribution• Dashboards• Scorecards / Stoplight• Reporting• Portals
Project Portfolio Management Components
OCM
OCM
OCM
OCM
OCM
•Work Plan Storage•Deliverables Repository•Time Tracking Services•Resource Pool•Financial Data•Project Data Archives
Supporting
Business Processes
Perform a Maturity and Readiness AssessmentEvaluate your current Project Management maturity by reviewing existing process documentation and team usage.
Determine Future State Requirements of the Enterprise Project Management (EPM) solution to include process improvements as well as tool requirements.
Perform a Gap Analysis and make recommendations for a complete EPM solution with a Roadmap to get to the desired maturity level.
Determine if a Project Management Office (PMO) is needed to champion the development of your Project Management Processes.
It starts from Senior Management realizing the value.