Leading practices in Project Planning
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Transcript of Leading practices in Project Planning
June 10th, 2013
New England OAUG:
Leading Practices in Project Planning
Tom Gargas, Edgewater Ranzal
Agenda
4
• Introductions • Project Financial Planning Overview • Product Demonstration • Leading Practices • Q&A
Focus
Services
People
Methodology
Customers
Partnership
About Edgewater Ranzal
15+ Years
700+ clients
1000+ projects
2
About Edgewater-Ranzal
► One of the largest Full-Service Oracle/Hyperion EPM and BI practices.
► Oracle Platinum Partner presented with numerous awards and recognitions by Oracle including multiple Partner of the Year awards.
► Premier Consulting Services in North America, and a regional European office located in the United Kingdom.
Edgewater
Founded in 1996
Essbase Acquired by Edgewater
2004 Data
Integration & Warehousing/
CRM/ Web 2.0
Development
Acquired Vertical Pitch
2007 HFM/ FDM
► Publicly Traded as: EDGW
► One of The Boston Globe’s Top 100 businesses
► Ranked as one of the 500 fastest-growing stocks on Wall Street
Acquired Meridian
2010 HSF
Planning 2001
Planning
Build OBI Team
2011 OBIEE
Ranzal
Build DRM & HPCM Teams
2009 DRM & HPCM
Dashboards & Scorecards, Profitability &
Cost Mgmt, Financial Analytics & Reporting,
Operational Analytics, What-if Analysis,
Query & Reporting, Visual Exploration
Financial performance, Legal,
Segment & Mgmt Reporting, Financial Close
HFM Optimization, Performance Lab
SOX Compliance Support
Planning, Budgeting, Forecasting,
Workforce Planning, Capital Planning,
Project Planning, Campaign Planning,
Strategic Finance
Data Integration, Financial Data
Management, Data Warehousing, Master
Data Management, ETL Services,
Performance Tuning, Automation
Project/Program Mgmt, EPM
Road Maps, Application
Reviews, Business
Requirements, Process
Change, Documentation
Installation, Upgrades,
Migration, System
Monitoring, Backup and
Recovery, Disaster
Recovery, Load Testing,
Hardware Sizing
Consolidation
Business
Intelligence
Planning
Infrastructure
Training
Support
Services
Data
Services
Project
Management
Support Services - Project/Program
Mgmt, EPM Road Maps, Application
Reviews, Business Requirements,
Process Change, Documentation
Dashboards/Scorecards, Profitability Cost
Mgmt, Financial Analytics & Reporting,
Operational Analytics, What-if Analysis,
Query & Reporting, Visual Exploration
Our Services
3
I could try to execute on all submitted Business Initiatives
I should ensure I have the budget needed to fund the projects
I would want to ensure alignment with Strategic Objectives
Why financial planning for projects?
Planning for my Hyperion Project…
Internal Labor & Rates
External Labor, HW, Other
Steering Committee
Approved CR’s
How can organizations define the optimal mix of strategic initiatives with limited time, funding and resources given the constraints in the process?
I clearly needed Hyperion Planning/PFP!!!
• Multiple sources of information • Numerous tools to utilize • Many manual touch-points • No tracking or versioning • No financial intelligence • Limited reporting
My “Ahaaaa” Moment
Where is the money
going?
Is this the optimal
mix of
investments?
Would we do anything
different with more or
less budget?
Should we pull or alter
any initiatives?
Are we choosing the
right initiatives?
What does Hyperion provide?
Oracle's
Project Financial Planning
Solution
Oracle EPM Connects Management
Common Integration & Analysis Data Quality and Consistent Dimensions
Common Reporting & Interaction
Strategy Management
Financial Close
Planning & Forecasting
Profitability Management
Oracle Connects Planning Processes
Capital Assets Planning
Workforce Planning
Strategic Planning
Financial Detail
Operational Detail
Predictive Modeling & Simulation
Cost
Analysis
Planning, Budgeting & Forecasting
Project Financial Planning
Project Planning
• Custom
Workforce Planning
• Custom
• Pre-Packaged Module
Capital Planning
• Custom
• Pre-Packaged Module
Project Financial Planning
• The Benefits to Implementing Project Financial Planning:
Pre-configured with detailed capabilities and process flow to support a rapid deployment.
Customizable framework for configuring around a client’s unique needs.
Proven Hyperion Planning platform
Oracle-supported application.
Maximize Value
Minimize Risk
13
Forged from Leading Practices!!!
• 11 Task lists (including Tasks) • 220 Data forms • 76 Menus • 216 Business rules • 111 Smart Lists • 11 Financial Reports • Prebuilt & Configurable Dimensionality • Validation rules • Essbase substitution variables • User variables
Pre-Built PFP Application Artifacts
Maximize Value
Minimize Risk
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Financial Planning for Projects
Assess and Manage Risk
Steps to managing the full financial performance
Financial Planning for Projects
Propose & Plan
• Propose new projects – Contract: Plan Revenue/Billing
– Capital: only BS & P&L Impact
– Indirect: only P&L impact
• Plan Expenses – Labor
– Equipment
– Materials
– Other Expenses
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Steps to managing the full financial performance
Rank & Fund
• Review project proposals
• Rank and prioritize projects
• Request funding
Financial Planning for Projects
Steps to managing the full financial performance
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Financial Planning for Projects
Steps to managing the full financial performance
Approve Projects
• Review approval status for projects
• Submit project(s) for approval
Financial Planning for Projects
Steps to managing the full financial performance
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Monitor & Report
• Monitor & report on financial performance of projects
Compare actual vs. plan
Compare forecast vs. plan
• Monitor & report on approved financial plans
Financial Planning for Projects
Steps to managing the full financial performance
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Update & Forecast
• Update project plans with actual and forecast out remaining months
• Compare original plan to forecast
Financial Planning for Projects
Steps to managing the full financial performance
Model Strategic Initiatives
Propose & Plan Projects
Rank & Fund
Approve
Monitor and Report
Update & Forecast
Model Strategic Initiatives
• Evaluate financial return on potential key initiatives
• Assess and manage risk
• Select initiatives with best return
Rank & Fund
• Evaluate funding alternatives based on forecasted project cash flows
Short Product Demonstration
Leading Practices in Project Planning
Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
24
Copyright © 2012, Oracle and/or its affiliates. All rights reserved.1
Project Financial Planning (PFP)20+ Customers
– Background:
• Leading high-tech company headquartered in Silicon Valley, CA.
• Offers customers products and services involving networking, infrastructure, and system optimization.
– Pain Points:
• Engineering and FP&A departments planned on legacy application:
– Internally developed solution was reaching end-of-life; costly and risky to maintain
• Existing process and tools were cumbersome and tasks were not efficiently executed
• No web-based interface.
• Lack of automated interfaces to Oracle Projects and iProcurement
– Ranzal’s Solution:
• Built a labor & non-labor project planning application for 150 users:
– Plan Capex and Opex for all projects
– Forecast Labor plans by Department and Project or Initiative.
– Allocate plan H/C and labor expenses by dept. and project based on allocation matrix.
• Integrated with Oracle Projects, iProcurement and HR modules
– Benefits:
• Ability to track project spending by project, by multple dimensions & attributes (account, by segment, etc)
• Ability to report against that data
• Relative ease of input for the engineering team
• Ability to forecast spend by project- a HUGE milestone for LCM and product portfolio decisions
Client Example 1
Oracle Projects
Oracle iProcurement
Project Planning
Oracle HR
• Build non-labor expenses by Dept. • HC & Avg. Labor Rate by Dept by month • Input factors for Driver based calculations for TBH • (Actual & Forecast)
• Opex & Capex Actuals • In-service Depreciation • (Actual & Forecast)
1x load of historical Forecast & Plan
• HC% Manual Input by users • Forecast of Capex, HC & Labor Costs to Projects
Legacy Planning
Oracle GL
Corporate Planning
Dimensions & Labor Data
Opex & Capex Data
Dimension metadata & properties
• Opex Commitments • Capex Commitments
Client Example 1
– Background: • Leading investment management and services company operated by nearly 50,000 employees in 36
countries worldwide and serving more than 100 global markets. • Provides services to institutions and corporations, private clients, and consultants and advisors. • Headquarters in New York, NY
– Pain Points:
• Major Expenditures division had difficulty with the process of creating proposed capital projects for review and approval.
• Difficulty tracking the approved budget compared to the actual costs of the project. • Systems did not interact or integrate effectively. • Great deal of manual effort was required to manage the overall process.
– Ranzal’s All-In-One, Closed-Loop Solution: • Built a capital expenditures planning application to create a financial plan • Integrated Planning with external workflow to review and approve projects • Integrated systems for data flow and for comparative reporting of actuals.
– Benefits:
• Tighter controls of project planning and analysis • Improved productivity toward value-added activities by automating manual efforts. • Active project track built up user and executive confidence of the entire process. • Subsequent application enhancements led to improvements in ERP and Master Data Management systems.
Client Example 2
PC
Proj. Workflow
Project Planning
• Project plans are created and data is entered via webforms. • Planned projects are aggregated • Planned project reports are generated
PPM
T&E
AP
GL
Plan project activities, attributes & plan dollar amount
Approved project activities, attributes & budget dollar amount
Approved project information
HR
AM
• Labor & Capital Asset related dimensions, properties and data. •Actual spend dollar amount.
Client Example 2
Pre-Built in PFP Configurable in PFP
Establish a closed loop feedback to address the process disconnect between project management decisions and financial decisions
Establish Project Hierarchies and attributes to support workflow, security, reporting, and key business logic. Key examples include Project Owning Organization, Project Type, and Program.
Link demand based project plans with supply side workforce and capital plans to ensure resourcing is level based
For global implementations, recognize impact of transaction currencies. Not just the typical functional and reporting currencies typically associated with Hyperion implementations.
Since project planning is tightly integrated with capital and labor processes, leverage multiple plan types in 1 application to improve integration between them.
If project planning is at the activity level, standardize on common activities and keep them as a separate dimension.
Try to incorporate ranking and priority into your application to give management visibility into critical and non-critical projects.
Minimize alerting capabilities and track the status within the application. This will significantly lessen the number of emails being burst out.
Don't forget about "unplanned" or "emergency" projects. These are projects that surface after "planned projects" were approved.
Consider a tailored currency conversion methodology to offer greater flexibility and time to delivery.
Leading Practices in Project Planning
– Be cognizant of internal IT and EPM Strategies: • How does PFP fit into current EPM (planning and reporting) processes for users and
support staff?
• How is PFP impacted by other strategic initiatives?
– Compile and Secure Your Requirements
– Develop Your Future State Processes
– Map Requirements & Process to PFP
• Determine Alignments
• Identify Gaps
• Mitigation: Do Nothing, Customization, Work-Arounds, Training
– Data Integration – Full inventory of data sources and any deficiencies
– Big Bang Doesn’t Always Work – seriously consider a phased approach given your understanding of future state requirements and process
Leading Practices in EPM Projects