Business Transformation and IT
© Copyright IBM Corporation 2009
IPMT Operations and Tiers Management System
August 4th, 2009Gem Mitchell / Tom Deegan / Frank Benintende
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Objectives of this Presentation
Audience
– IPMT coordinators
– Initiative leads; solution leads
– SPMs, asset owners
– Deployed Portfolio Managers
At the completion of this material you will
– Recognize the characteristics of a well-defined, well-managed Initiative
– Understand how to use Initiative tiers in Initiative governance
– Build competency to govern by Initiative and to ensure Initiatives meet their business goals• Oversee Initiative and Solution health using Initiative Topsheet and health indicators• Monitor Initiative progress in delivering business value• Follow through on accountability for realizing intended value from Initiative
investments– Ensure clear understanding of decision-making structure, authorities and accountabilities
– Use BTMT and Cognos reporting capabilities to communicate status with management
– Understand IPMT compliance requirements
– Understand the 2010 Fall Plan process and timeline
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
IPMT Training Topics
BOLD Organization Overview
Initiative Tiers and the IPMT
Managing by Initiative
Tiers Management System and Operating Principles
Roles related to the IPMT
The IPMT Review– Health Indicators– Using Cognos with BTMT
Compliance requirements
Value of Transformation by Initiative
Fall Plan Process and Calendar– Financial Business Intelligence– 2010 Reporting
Appendix- additional information
Page 3
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009Page 4
Tiers in Initiative Management
Pre BOLD Post BOLD
Tier 1
(selected Tier 2s)
EIT
Highest Strategic Importance, business value and investment
CIO OT
Highest Strategic Importance, business value and investment
Tier 2 PTE IPMT
Cross-process, cross-enterprise, strategic
TE/Run IPMT
Common consistent process based
Tier 3 BTE IPMT
Business Unit specific
PPR*
Process based, integrated worldwide view, consolidated funding through the Transformation or Run executive
Tier 4
Eliminated as an option for 2010 Funding
Geo specific management system; tactical
*For organizations with large portfolio’s of initiatives, the role of the Program Portfolio Manager is being increasingly used to provide oversight to sets of related (EPF) initiatives. For organizations with smaller portfolios, the IPMT will provide that role.
Tiers are used to align management oversight and accountability with the relative strategic importance of initiatives. The BOLD Consolidation provided the opportunity to streamline tiers in Initiative Management in BTMS
•BOLD Tiers Simplification from four to three, is being deployed throughout the CIO
•Goals–More effective management oversight and accountability–Greater financial transparency and improved portfolio management–Alignment of Tiers and management system (reviews) with financial reporting requirements
Business Transformation and IT
5 © Copyright IBM Corporation 2009
Finance, Supply Chain & Technical Support
Processes P. Scorza
Global Workforce and Web Process Enablement
C. Sormilic
GISP Process Name
Opportunity to Order
Kathy Colucci*
Order to Cash Barbara Martin*
Hardware Product Management Transformation
Mark Dunham
Incentives Karen Salinaro
Services Labor Management Transformation
Joanne Olsen
•GISP and EPO•** Partial Ownership
Updated 7/30
We have had the opportunity to simplify BTMS Tiers and Initiative Management as a result of the consolidated organization
EPF Level 1 Processes EPO
1.0 Idea to Market (Develop)
Alan Ganek
Rod Adkins
Colleen Arnold
Liz Smith
2.0 Market to Opportunity Buell Duncan
3.0 Opportunity to Order Kathy Colucci*
4.0 Order to Cash (Customer Fulfilment) Barbara Martin*
7.0 Manage Client Relationship Dan Bennewitz
8.0 Manage Sales & Channels Kathy Butler
4.0 Order to Cash (Plan to Deliver) Barbara Martin
5.0 Support Paul Loftus
9.0 Procure to Pay John Paterson
11.0 Manage Financial Res Carlos Passi
6.0 Develop Strategy /Execute Mike Giersch
10.0 Manage Human Resources Joe Severi
12.0 Manage BT/IT Susan Watson
13.0 Manage Business Support Pat Toole**
14.0 IBM Global Financing Mark Andrews
GISPTransformation ExecEPO
Client Facing & Order Management Processes
S. Calta
IBM Global FinancingJoe Kaschak
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
All IPMTs in the new organization will implement the new Tiers structure
ITD
C. SweeneyAS
P. Howard
CIO
Finance
Geos
HRBusiness Operations
Enterprise Integration
BT/IT Geography Integration
Communication
GBS Integration
GTS/IGF Integration
SWG Integration
Blue Harmony
S. Watson
B. Greiner
J. Horan
Application & Infrastructure Service Management
L. Gordon
T. Lostaglio
S. McMillan
L. Potter
F. Capstick
B. Gibson
H. Babcock
M. Sader
Client Facing & Order Management Processes S. Calta, Jr.
Global Workforce-Web Process Enablement
C. Sormilic
P. Toole
Finance, Incentives, Supply Chain, & Tech Spt Processes
P. Scorza
Run Transform Business Units GeographiesInnovation
Innovation Programs
F. Legoues
Enterprise Process Owners
By Process
Updated 4/16
IBM Global Financing
Joe Kaschak
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© 2005 IBM CorporationPage 7
Tiers in Initiative Management- Before/After BOLD Consolidation
Pre BOLD Post BOLD
Tier 1
(selected Tier 2s)
EIT
Highest Strategic Importance, business value and investment
CIO OT
Highest Strategic Importance, business value and investment
Tier 2 PTE IPMT
Cross-process, cross-enterprise, strategic
TE/Run IPMT
Common consistent process based
Tier 3 BTE IPMT
Business Unit specific
PPR*
Process based, integrated worldwide view, consolidated funding through the Transformation or Run executive
Tier 4Eliminated as an option for 2010 Funding
Geo specific management system; tactical
*For organizations with large portfolio’s of initiatives, the role of the Program Portfolio Manager is being increasingly used to provide oversight to sets of related (EPF) initiatives. For organizations with smaller portfolios, the IPMT will provide that role.
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Page 7
Page 7
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Tiers have been redesigned to leverage management system involvement and align financial reporting
Tier
Financial threshold
($ total investment)*
Highest level of Reporting Review
Business Case requirement
Cross-TE/Run prioritization
Financial analysis DB
1 >$5M CIO OT EISC & OT Full business case 100% BTAPEX
2
<$5M
and
>$0.5M
IPMT
Self-assessment against EISC
criteria
Cost / Benefit analysis100% via
streamlined methodology
Separate variant of BTAPEX
3 <$0.5M PPR
Self-assessment Prioritization only Bottom 10% only none
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
IPMT and Initiative Management Tiers and Operating Principles
Tier Summary
Initiative Tier Selection
Guidelines
Highest Level of
ReportingManagement System
ExpectationsReporting
ReqtsDeliverables and Reviews Required
Tier 1 Highest Investment generally $5M or greater total investment over 5 year time horizon
IPMTAdditionally EI SC and CIO OT Periodic Reviews
Led by the initiative lead Performance reviews by CIO OT Supports OT / SLT Strategic priorities Significant impact to the company/ Sr VP would
say ‘yes’ we need to address Warrants some protection from business as
usual budget challenges Must be advocated by multiple EPO Team
members Business Direction from CIO and EPO Businesses share the benefits Must leverage SOA+, BPM, VR
Detailed reviews by CIO OT, EI SC and IPMT with updates to the OT
Status of initiative health: business value, cost, schedule, risk, process, architecture, adoption/utilization, and standards.
Validation of direction based on business environment dynamics
Detailed Business Case required in BT/APEX
Fall Plan Topsheet
Full Business Case
Self-evaluation against EI SC Criteria
EI SC transformation review
BTMT Initiative Record
Cognos reporting
Tier 2 Less than $5M and great than $500K IPMT Led by initiative lead May assign initiative lead or Init level solution
lead (determined by size and complexity) Owned by (TE) Supports an enterprise priority at the TE level
and EPO specific priorities Degree of rigor and phase-end reviews
determined by the initiative lead and unit architecture team
Businesses share the benefit Significant impact to the company Must leverage SOA+, BPM, VR
Detailed reviews by IPMT Status of initiative health: business value,
cost, schedule, risk, process, architecture, adoption/utilization, and standards
Validation of direction based on business environment dynamics
Fall Plan Topsheet
Cost/Benefit Analysis$4.9M-$500K
Self-evaluation against EI SC Criteria
BTMT Initiative Record
Cognos reporting
Tier 3Under $500K total investment Program Portfolio
Manager with Finance/Ops
Portfolio Review with IPMT as needed
Short term initiatives- Led by initiative leads assigned by PPMs
Project coordination rather than project management
Outcomes are short term strategic or tactical upgrades to deployed portfolio
Program Portfolio Manager ensures alignment to Tier 1&2 objectives
Quality, Cost, schedule
Below $500K, budget process is sufficient
BTMT Initiative Record
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© 2005 IBM CorporationPage 10
The basic process remains the same, where the IPMT, PPM and Initiative and Solution Leads must work together to deliver transformation results
Plan Implementation
Plan Implementation
Measure and Close
Measure and Close
Implement Initiative
Oversee projects
Implement Initiative
Oversee projects
PDTL
Oversee Initiative
Init
iati
ve M
an
agem
ent
Monitor value realized
Complete Initiative Definition
Complete Initiative Definition
Assign Initiative Lead
Assign Initiative Lead
So
luti
on
D
evel
op
men
t
SPM
SPM
SPM
Manage projects E2EManage projects E2E
Concept Plan Develop Qualify Rollout
Concept Plan Develop Qualify Rollout
Concept Plan Develop Qualify Rollout
Concept Plan Develop Qualify Rollout
Business Transformation Management Tool (BTMT)
Initiative Lead
(IL)
IPMT
Manage Initiative
Select Initiatives Release Funding
Select Initiatives Release Funding
Solution Lead
(PDTL or SPM)
Assign Initiative Lead
PPM
Assign Initiative Lead
Oversee Initiative
Page 10 © 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009Page 10
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
IPMTs focus on Initiatives and their business results, providing strategic leadership for the portfolio and leaving the tactical decision-making on projects to the PPMs and Initiative leads
Role of the IPMT
• Use Program Portfolio Managers as required by the size and scope of the IPMT to provide business and technical integration across a set of similar initiatives and other duties as assigned
• Input to strategic business transformation planning
• Review and approve Transformation Roadmap
• Assign ILs to participate in Initiative Definitions with EPOs
• When funded, authorize IL to begin Initiative execution
• Oversee individual Initiatives - progress, health, issues, risks, dependencies, value accrual
– Review Initiatives on agreed schedule and provide feedback to IIMs
– Assist in resolving issues, conflicts, risks, dependencies
– Take corrective action, spot duplication or unnecessary spending
– Adapt to changes in financial or business climate
– Monitor business results achieved
• Ensure investments achieve promised business results and stay in strategy / goal alignment
• Leverage best practices
• Monitor operational spending on deployed portfolio for effectiveness and strategic alignment
• Communicate status of transformation efforts
Portfolio Initiative Project
IPMTBusiness Results
Oversight
IL InputBusiness Results
Oversight
SL or SPM InputBusiness Results
Who’s Accountable
IPMT Overall performance of strategic BT investments
Optimal use of BT resources
Transformation Roadmap meeting strategic needs
Effective and efficient support of the business process by the deployed portfolio
PPM and/or
Initiative Lead (IL)
Overall performance of assigned Initiative investments
Optimal use of Initiative resources
Initiative execution addressing strategic capability and goals
Solution Lead or SPM)
Delivering on project commitments
Quality and compliance to standards
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Roles involved in IPMT OperationsRole Summary of Responsibilities Competency Required
IPMT ChairDescribe and carry-out mission, scope, objectives of IPMT in support of IBM EPO strategy
Establish membership criteria, form/restructure IPMT
Determine IPMT operating model, management system
Chair sessions, ensure appropriate representation and participation, actively lead decision-making
Ensure compliance with BTMS
Use of Initiative tiering
BTMS compliance requirements
IPMT Members
Maintain focus on getting the most value from investments, balance between optimizing EPO and enterprise objectives, level of risk
Contribute to decisions on Initiative funding & investment priorities representing own organization’s stakeholders
Monitor Initiative health, recommend or take action
Review status of Initiatives and share within own organization
Influence Initiative outcome
Elements of a well-defined / managed Initiative
Measuring performance / realized value & adjusting when opportunities arise or business conditions change
Initiative Topsheet and Health Indicators
Patterns/causes of value erosion, what to look for to pre-empt trouble
Program Portfolio Manager
Provides recommendations and advice to the TE regarding strategy, initiative management and application portfolio management for their assigned initiatives/programs
Provides Portfolio oversight, integration and prioritization for a subset/collection of related initiatives/programs
Elements of a well-defined / managed Initiative
Measuring performance / realized value & adjusting when opportunities arise or business conditions change
Initiative Topsheet and Health Indicators
Patterns/causes of value erosion, what to look for to pre-empt trouble
Specific knowledge of EPO areas they support
IPMT Coordinator
Support IPMT operations (meeting schedule/agenda, action item tracking, member pre-briefs, minutes)
Maintain IPMT member roster, identify coverage issues, track attendance
Coordinate IPMT communications, capture/report on decisions/outcomes
Support transformation planning process
Initiative tiering
Initiative Topsheet and Health Indicators
BTMS compliance requirements
Initiative Leads (IL)
Lead Initiative definition and review with IPMT stakeholders
Once funded, establish cadence of Initiative reviews with IPMT
Review Initiative with IPMT as required
Accountable for tracking and demonstrating Initiative value attainment and adoption
Ensure projects are meeting Initiative objectives
Executive communications
Initiative Topsheet and Health Indicators
Initiative Definition and Management processes
Solution Development phases and BTMS compliance requirements
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Health indicators, give visibility into the overall condition of an Initiative.
New BTMT Initiative Top
Sheet
Initiative Health Scorecard
Risk Schedule Cost Value ProcessAdoption/ Utilization
Architecture Standards Overall
YR G
Health Indicators
– Dynamically reflect the state of an Initiative
– Represent critical factors affecting success– Common between an Initiative and its associated solutions– Consistent across all Initiatives regardless of tier– Specific evaluation criteria for an Initiative and for each phase
of a project Initiative Health Scorecard
– Eight health indicators plus an overall health indicator
– Available on the BTMT Initiative topsheet
– Each indicator defaults to worst case of any associated project
– Initiative Lead can override default
– Health of associated solutions also available on topsheet
Using Health Indicators
– Aid in assessing the well-being of an Initiative
– Provide better “headlights” for troubled projects
– Early warning allows corrective action to be taken in timely fashion
Criteria available in
backup
YR G
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Business Transformation and IT
© Copyright IBM Corporation 2009
Cognos Reporting
Objectives:
– Showcase IBM's Cognos Business Intelligence
– Use BTMT / Cognos Automated Reporting to:• Effectively reduce the overhead in IPMT preparation and reviews• Support CIO OT and EODT reporting requirements
– Automation of two reports for BTMT / IPMT Reporting: Initiative Top Sheet & Initiative Detail
– Identify additional requirements for future releases
Benefits:
– Reduce the dependency of manually creating Symphony Charts at the IPMT level
– Reports are generated “On Demand” – Used for lower level project reviews – detailed report
• Fully Encapsulated HTML Posted in Standard IPMT Teamroom– Batch Job for easy of consolidation – Allows for swift movement through multiple Initiative Top Sheets– Allows for backup if Cognos online reports became unavailable – Allows for point in time stamped reports (e.g. What was shown to IPMT vs what the
report indicates now) – Enforces the use of BTMT as the trusted source, the timely updating of BTMT data, and
compliance to the Corporate Instruction 129
– Proactively drove the source system (BTMT) data clean up
– Consistent format across CIO
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Business Transformation and IT
© Copyright IBM Corporation 2009
•BTM T – C ognos Autom ated R eporting- “The Basics”
BT M T Fields are the source for the roll up reporting in the C ognos form at- Fie lds that drive inc lus ion/exc lus ion of data within the report
Ensure that BT M T In itiative data is ready for use by C ognos
- F ree fo rm text des c riptions mus t be C lear and C onc is e and A c c urate due to s pace limita tions .
- F or the report to be generated the R eport to C IO as key initia tive flag s hould be s et to yes . S o lutions s hould ro ll up to initia tive indica ted in o rder to be s een in the initia tive deta il report
- If any o f your hea lth indicators a re in a non-G reen S tatus then you mus t have at leas t one D ependency, Is s ue or R is k identified and the flag s et to “R eport to M gmt” - C urrently report to E IT (change planned 5/8)
- T o generate the T O P s heet Inves tment and B enefit line items in the upper right hand corner o f the top s heet report you mus t have the firs t M etric as s oc ia ted with the initia tive s pec ifica lly labe led 'Inves tment' and the s econd M etric as s oc ia ted with the initia tive s pec ifica lly labe led 'B enefit'. O ther metrics can fo llow. T his will a llow the S Q L and C ognos s o lution to pars e the data and conform to quadrant fo rmatting on the top s heet.
A couple of O perational C ons iderations mus t be kept in m ind- K eep in mind that updates to the D B 2 trans action tables will appear in the report each morning at 8 am as we
are us ing s taging tables to s hie ld the B T M T trans action tables fo r performance reas ons .
- A s this is a pilo t fo r the IP M T reporting, there will be a requirement to provide the current S ymphony materia ls to s upport the O T . T he intent is however to leverage the T op S heet report in a iding in that effort.
- F ormatting T ip - "M onthly P rogres s R eport", "A ccomplis hments P as t 30 D ays ", "M iles tones and D e liverables N ext 30 D ays " you can us e an * to fo rce a carriage return fo r lis ts a fter the firs t line . (N o ̂in firs t line)
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
C ognos Top Sheet exam ple
T E A ss ignme nt v ia B T M T R o le s
Inve s tm e nt B e ne f i t s f i r s t two M e tr ic s in B TM T C o nf ide n t ial page
B efo re U pda ting C urren t S ta tu s M ust m ove cu rren t s ta tu s to P rev ious in
B T M T
In itia tive D escrip tion L atest S ta tus and C om m ents
C om m itm en ts in B T M T C ou ld be a t In itia tive o r S o lu tion L evel
Issues R isks and D ependencies in B T M T C ou ld be a t In itia tive o r S o lu tion L evel
Accom plishm en ts T h is M on th in B T M T
* C auses C arriage R etu rn
In itia tive L ead
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Compliance will check for the following to ensure that a Business Unit and their IPMT are following Initiative Management
1.1 Are there no active solutions remaining in the BTMT Fastpath Placeholder Initiative?
1.2 Is a review of the tier 1 and 2 initiatives conducted by the IPMT in a regular cadence at least 3 times per year?
For health indicators with a status other than green, does the reviewing body require and approve corrective action plans during the review?
Is the status of previously assigned corrective action items reviewed at each meeting?
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009Page 18
Transformation by Initiative increases the opportunity of transformation success, allows for greater synergy and alignment with business strategy, and enables higher returns
Goals Higher and more
rapid return on investments
Greater synergy and business strategy alignment
Better odds of success
Goals Higher and more
rapid return on investments
Greater synergy and business strategy alignment
Better odds of success
Maximizing potential value– Easier to stay on course and manage to the end result with an overall view of the Initiative– Better visibility into progress on commitments and accrued value of an Initiative– Shift in executive dialog from cost to value and closing the loop– Change in emphasis from project management to realizing full value potential – Focus on accurately describing, anticipating and measuring value during/post deployment – Informed trade-offs to maximize value when business conditions change or opportunities arise– Single focal point (PPM, IL) clearly accountable for delivering results
Faster deployment, earlier payback– Flexibility for Initiative leadership to customize plans, manage risk based on Initiative characteristics– Removal of constraints on project plans and workload associated with DCP reviews
– Streamlined solution development and coordination at Initiative level
Reduced cost – Less overhead, less overlap, less rework, more effective resource usage
– Elimination of non-strategic projects by associating all project investments to an Initiative
Minimized upstream and downstream impact of changes, project delays – Tighter control of dependencies between related projects – Improved collaboration and integration between related projects
Faster problem resolution with better “headlights” – Better visibility to Initiative /project health with early warning problem detection & consistent indicators – Common standard health indicators including new focus areas such as process, adoption/utilization
Better integration across related solutions– End-to-end, enterprise view– Leadership continuity from definition to results and consist management across related projects– More cohesive schedules, deliverables– Single voice to stakeholders for expectation management– Enhanced collaboration between project teams
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
2010 Fall Plan Calendar
Page 19
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
1. Training for the IPMT coordinator
2. Roles/Responsibilities of an IPMT
3. Characteristics of a good Initiative
4. Initiative and solution relationships
5. Overview of IPMT reviews, Team, and Initiative Lead R&R during Initiative Management
6. BTMT Initiative Topsheet
7. Initiative Health Indicator criteria
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Program Portfolio Manager/Executive
Purpose– Provides recommendations and advice to the TE regarding strategy, initiative management and application portfolio
management for their assigned initiatives/programs– Provides Portfolio oversight, integration and prioritization for a subset/collection of related initiatives/programs
Roles and Responsibilities– Prioritizing and reprioritizing initiative requirements for the subset/collection of related initiatives and programs
within the TE area• Provide input to the TE on the consolidation of EPO, BU and Geo requirements for their Initiatives/Programs• Identify cross-EPO dependencies and gaps related to initiative portfolio for EPOs assigned• Identify cross-TE dependencies and gaps needed to achieve overall BT/IT objectives within Portfolio area• Evaluate & recommend initiative priorities to achieve TE/EPO strategy and integrated roadmap• Develop integrated view of business cases for the TE for EPO areas assigned and provide input to overall IT strategy
– Manage BT/IT transformations for the Initiatives assigned • Assign Initiative Leads • Conduct timely Program Portfolio Reviews to address the following
– Review and take corrective action to address individual initiatives/programs progress, status, compliance to standards, including results of architecture review council meetings and issues
– Ensure individual initiatives/programs progress against approved business cases, identify gaps, take corrective actions, and track to closure, drive value realization and identify / address barriers
– Outlook and budget matching for IT spend– Monitor and optimize initiative portfolio performance for Initiative Portfolio– Financial and BTMT data integrity
• Communicate initiatives/programs progress and status to the IPMT and individual member constituents (Geos/BUIEs )• TE/Run maintains Fastpath budget for legal/mandatory items in the Geos
– Establish & maintain TE/EPO service model for the assets in their portfolio • Define, measure and track customer sat /TE performance metrics/BC-value attainment for EPO areas assigned• Approve ongoing maintenance and support for the assets associated with their area; ensure Non-strategic spend
process is followed; Partner with Run organization regarding ITSM• Manage compliance to ASCA, Corporate Stds and Instructions
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Business Transformation and IT
© Copyright IBM Corporation 2009
Initiative reviews enable stakeholders to gain greater visibility into an Initiative as a whole, its health and progress toward objectives, and optimize investment performance.
What to look for Review Initiative progress and what has changed since the last review
– What has deployed? Which projects have been launched? advanced a phase? – What projects are on the critical path? Has this changed? Have all solutions deployed?
Assess conditions using Initiative Health Indicators – If an indicator is red/yellow, what’s the impact on promised value within the expected timeframe?– What actions are being taken on red/yellow indicators to get to green?– Are there projects on the critical path that are red/yellow? What is plan to green?– What actions by the IPMT are recommended / warranted on issues, dependencies, risks?– Are there recognizable patterns that result in value erosion, cost increases, delays? How can you
anticipate / plan for them?
Look out for Initiative challenges– Stakeholders involvement in change management– Understated requirements or scope creep– Investment growth with no increase in benefits– Conflicting stakeholder priorities or objectives– Cultural transformation, resistance to change – Linkage between process transformation and IT
Examine Initiative finances– What is overall budget, funding allocated to projects, actual vs. planned expenses, forecast?– At what point is the Initiative business case exposed?– Should we pull the plug or downsize the Initiative?– What is our exit strategy? How should we redirect Initiative funding?– Are business conditions changing? How can we focus spending on the right priorities?
Focus on the Initiative bottom line (bus value, metrics, strategy)– What are key business drivers and value needed / derived from the Initiative?– Are we measuring business value against identified targets? – Are performance metrics in line with expectations? Are they trending up/down?– Are we getting acceptable value from the investment – can we get more?– Are we optimizing performance of an EPO vs. the enterprise at large?– What are the long-term prospects for the Initiative? Does it still align with business strategy?– Are we ready to close the Initiative? Reset the cadence?
How can we leverage success/experience of one project / Initiative into the next?
PortfolioPortfolio
InitiativesInitiatives
ProjectsProjects
Pro
cess
Tran
sfor
mat
ion
Information Technology
Organization/ C
ulture
Multiple Perspectives of IPMT Oversight
Sample IPMT Agenda
Administrative Topics
Initiative Review
Initiative Recap/Status
Health Scorecard
Issues, Risks, Dependencies
Financial Summary
Value Metrics
Action Items
Sample IPMT Agenda
Administrative Topics
Initiative Review
Initiative Recap/Status
Health Scorecard
Issues, Risks, Dependencies
Financial Summary
Value Metrics
Action Items
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
The IPMT is accountable for the overall performance of strategic BT investments within the portfolio: process changes, culture changes, user satisfaction, value realization
Integrated Portfolio Management Team (IPMT)
The IPMT: The focus of IPMTs will be directed to initiatives and their collective business results providing an enhanced strategic leadership role for its portfolio and leaving much of the tactical decision-making on solution projects to the IL leading the Initiative
Responsibilities Structure & Membership
• Input to strategic business transformation planning
• Review and approve Transformation roadmap
• Assign IIMs to undertake Initiative Definition
• Review, select and approve Initiative Definitions
• When funded, authorize IIM to begin Initiative execution
• Oversee individual Initiatives – progress, health, issues, risks, dependencies, value realized
• Review Initiatives on agreed schedule and provide feedback to IIMs
• Assist in resolving issues, conflicts, risks, dependencies
• Take corrective action, spot duplication or unnecessary spending
• Adapt to changes I financial or business climate
• Monitor business results achieved
• Ensure investments achieve promised business results and stay in strategy/goal alignment
• Leverage best practices and encourage innovation
• Monitor operational spending on deployed portfolio for effectiveness and strategic spending
• Scoped to specific portfolio of BT investments and deployed assets aligning to a key corporate strategy or enterprise process
• Chaired by Transformation or Run Executive
• Restricted to executives with major stake in transformation plus AS and Finance
• Required when a strategic capability or portfolio is enterprise-wide or fundamentally cross-organizational and funding is shared
• Optional when capabilities and portfolio primarily contained within a single BU and transformation is self-funded. The PPM performs IPMT responsibilities where no IPMT exists
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
Initiative Lead• Ensure all dependencies, issues, risks resolved • Coordinate all project deliverables and dependencies• Ensure all metrics and baselines are in place to track value• Ensure process and organization changes are planned / executed• Report Initiative health (and project health) and status to IPMT• Make recommendations on scope, schedule, cost changes based onbusiness needs
Team Members• Execute projects • Track and report project health using indicators• Ensure projects are on track for key commitments• Inform Initiative lead of project dependencies, issues and risks• Manage project dependencies, issues and risks
Initiative Lead• Execute and controlWork• Gain commitment andFunding from IPMT
Team Members• Define process changes, org changes,architecture, data,business case, commitments, KPIs• Timeline, deploymentstrategy
Initiative Lead:• Report on valueattainment as projectsdeploy.• Ensure corrective action Is taken if needed• Monitor adoption
Team Members• Track metrics in support of Key Performance Indicators• Perform root cause analysis if value is notbeing achieved
Initiative Definition
Value Realization
The IPMT must be involved end to end
IPMT commits and funds the Initiative that most strongly support strategy and will deliver the most results to the business
Review What are we doing?
Periodic Initiative reviewson Initiative health andprogress toward Initiativecommitment
ReviewHow are we doing
IPMT monitors value attainment
ReviewHow did we do?
Initiative Management
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Business Transformation and IT
© Copyright IBM Corporation 2009
The Initiative Lead will communicate to the IPMT about the Initiative Health through both the Initiative and Solution Health Indicators. They are calculated, but the Initiative Lead can override them. (REDO SCREEN SHOTS)
The Initiative Health Indicators default to a roll-up of the solution health indicators (default to worst case).
The Initiative Lead has the option to change the Initiative Health indicator, if the solution is not on the critical path.
There are very specific criteria of what each health indicator should represent.
It is good practice to update the comments section when overriding a calculated health indicator
The Initiative’s Overall Health is calculated from all the Initiative’s health indicators. (defaults to worst case) The Initiative Lead can override the calculation to the reflect the health of the Initiative.
This page does not contain complete information, and is a composite of important fields
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative Cost / Investment?
Green Yellow Red
The actual investment is not greater than what was approved
Actual investment is over plan but < 10% over plan,
Actual investment is > 10 % over plan
The forecasted budget is less than or equal to of original BC estimate
The forecasted budget does not exceed 10% of original BC estimate
The forecasted budget is greater than 10% of original BC estimate
Original budget has not been cut or has been challenged but will still be able to deliver original requirements or the business has agreed to reset the requirements
Budget has been challenged or is being underrun 5-10%, and the Initiative will not deliver some non-critical requirements
Budget has been challenged > 10%, and the Initiative will not deliver critical functional requirements
All projects in the critical path are green for cost/investment health in the current phase
Projects on the critical path are yellow for the cost/investment health in the current phase
Projects on the critical path are red for the investment in the current phase
If the answer to any statement is yellow or red, the health indicator must be yellow or redPage 26
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative’s Business Value?
Green Yellow Red
BC hard and soft benefits have remained the same or increased
Business Case hard and soft benefits has been diminished by <10% or business case is exposed because of increased costs, project delays, funding cuts, scope changes or benefit reduction
Business case is longer valid because of increased costs, project delays, funding cuts, scope changes or benefit reduction
Scope is as defined, has been agreed to by all stakeholders, and all dependencies are interlocked
Scope has decreased to meet schedule and cost, but all critical functions are being delivered
Scope has decreased to meet schedule and cost, but not all critical functions are being delivered
The Initiative’s Key Performance Indicators have been determined and agreed to by L1 process owners and there is a plan in place to track them
The Initiative’s KPIs have been determined, but there is no plan in place to track them
The Initiative’s KPIs have not been determined
Key Performance indicators for deployed solutions are on track to meet targets
Key Performance Indicators for deployed solutions are not on track to meet targets, but there is a plan in place to remediate
Key Performance Indicators for deployed solutions are not on track to meet targets, but there is no plan in place to remediate
All projects in the critical path are green for business value
Projects on the critical path are yellow for business value in the current phase
Projects on the critical path are red for business value in the current phase
If the answer to any statement is yellow or red, the health indicator must be yellow or redPage 27
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative's schedule?
Green Yellow Red
Schedule has been agreed to by all stakeholders, and all dependencies are interlocked
Schedule has moved to the right, but minimal impact on value delivery or dependencies
Schedule has moved to the right, has impacted value and/or dependencies on this Initiative
All projects in the critical path are green for schedule health in the current phase
Projects on the critical path are yellow for schedule health in the current phase
Projects on the critical path are red for schedule health in the current phase
If the answer to any statement is yellow or red, the health indicator must be yellow or redPage 28
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative’s risk?
Low Medium High
All risks have been identified with effective mitigations that will not impact cost or schedule
Potential risks have materialized but impacts to Initiative are being contained.
Potential risks have materialized and are significantly impacting the Initiative
All projects in the critical path are low for risk health in the current phase
Projects on the critical path are medium for risk health in the current phase
Projects on the critical path are high for risk health in the current phase
If the answer to any statement is yellow or red, the health indicator must be yellow or red
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative’s process transformation?
Green Yellow Red
To-Be Process requirements have been identified and stakeholders and the L1 process owners agree to the changes required
Some of the stakeholders and process owners agree to the process changes, or some may have conflicting priorities to the process changes, but plans are in place to address the other process owners or the conflicting priorities
To-Be process requirements have not been validated with the stakeholders or process owner, or the process owner does not agree to the changes required, or the process owners have unresolved conflicting priorities
The L1 process owners agree with the process performance targets of the to-be process
Some of the L1 process owners agree with the to-be process perf. targets and plans are in place to address the others
The L1 process owners do not agree with the process performance targets of the to-be process
All the necessary enablers to process change are identified and in progress including: IT changes, bus. rules, management system changes, skills and training, org. / roles, and culture
Some of the necessary enablers to process change are identified and plans are in place to address the others
Inhibitors exist that threaten the success of the process changes, or enablers have not been identified.
All projects in the critical path are green for process health (project level processes and perf. targets are aligned and integrated with the Initiative process design and the process enabler plans are on schedule)
Projects on the critical path are yellow for process health. (not all of the project level processes and perf. targets are aligned and integrated with the Initiative process design and / or some of the process enabler plans will not meet schedule) Plans are in place to resolve.
Projects on the critical path are red for process health. (the project level processes and perf. targets are misaligned and / or not integrated with the Initiative process design and / or the process enabler plans will not meet schedule)
If the answer to any statement is yellow or red, the health indicator must be yellow or red
© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative’s Adoption/Utilization (culture) indicators?
Green Yellow Red
UCD has been engaged, and the solutions in the Initiative are evaluating, executing, and implementing the global UCD requirements and plans.
UCD has done an initial assessment, but has not been fully engaged
UCD has not been engaged for the Initiative, and there are not adequate funds for UCD
Pilots, prototypes, and proofs of concept are being used with appropriate global audiences to make changes based on user feedback
There are no pilots, prototypes or proofs of concepts currently planned, but plans are in place to use them.
There are no pilots, prototypes or proofs of concepts planned
Global Org Change/culture requirements have been defined and incorporated on schedule
Org change/culture requirements have not been fully identified, but there is a plan in place to do so
Org change/culture requirements have not been accounted for or are not on schedule, and there are not adequate funds or resource for org change
Education and Communication requirements have been identified for all key global audiences, and are being implemented on schedule
Education and Communication requirements have not been fully evaluated, but there is a plan place to do so.
Education and Communication is not being implemented on schedule to all audiences, and there are not adequate funds
Selected vendor solutions meet usability, globalization, and accessibility standards
The vendored selection meets some but not all usability, globalization, and accessibility standards.
The vendored solution does not meet usability, globalization, or accessibility standards
Geographies have signed-off on requirements Some geos have signed off, and there are plans in place to address the remaining
The geos have not signed off on the Initiative
Integrated testing has been planned for and executed in an environment that simulates the production.
Integrated testing has been planned for, but complete funding is not available.
There is no funding available for integrated testing in a production like environment, and there are no plans in place for additional funding
Post deployment adoption rates are being monitored and are meeting targets. The process has really been changed.
Post deployment adoption rates are being monitored and are not meeting targets, but there is a plan in place to correct
Post deployment adoption rates are either not being monitored, or being monitored and are not meeting targets, but there is no plan in place to correct
All projects in the critical path are green Projects on the critical path are yellow for adoption/utilization
Projects on the critical path are red for adoption/utilization
If the answer to any question is yellow or red, the health indicator must be yellow or red
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the health of the Initiative’s Standards?
Green Yellow Red
All applicable standards are known and are being complied to with no exceptions
Some exceptions are in place for non-critical standards (critical standards are security, privacy, accessibility, and ASCA)
There are critical standards that are not being complied with (critical standards are security, privacy, accessibility, and ASCA)
All projects in the critical path are green for standards
Projects on the critical path are yellow for standards in the current phase
Projects on the critical path are red for standards in the current phase
If the answer to any question is yellow or red, the health indicator must be yellow or red
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the overall health of the Initiative architectures?
Green Yellow Red
High confidence in meeting business value. Cost and schedule are on track to achieve business value.
Business Values has decreased. Cost and schedule are at risk, but recovery expected.
Value has decreased, unlikely to meet scheduled date, or spend over plan. Executive intervention required; business recovery not expected.
The business capabilities are being delivered as planned
All critical business capabilities are being delivered, but not all that were planned.
Some critical business capabilities are not being delivered.
All projects on the critical path are green in all Initiative health categories.
Some projects on the critical path are yellow in health categories, impacting the overall’s Initiative’s success.
Some critical projects are red in health categories, causing the Initiative to be red.
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© 2005 IBM Corporation
Business Transformation and IT
© Copyright IBM Corporation 2009
What is the Initiative’s overall Health?
Green Yellow Red
High confidence in meeting business value. Cost and schedule are on track to achieve business value.
Business Values has decreased. Cost and schedule are at risk, but recovery expected.
Value has decreased, unlikely to meet scheduled date, or spend over plan. Executive intervention required; business recovery not expected.
The business capabilities are being delivered as planned
All critical business capabilities are being delivered, but not all that were planned.
Some critical business capabilities are not being delivered.
All projects on the critical path are green in all Initiative health categories.
Some projects on the critical path are yellow in health categories, impacting the overall’s Initiative’s success.
Some critical projects are red in health categories, causing the Initiative to be red.
BTMT will default the overall health indicator to the ‘worst’ color of the 7 categories of Initiative Health. The Initiative lead can change based on the guidance provided here.
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