Utilizing Portfolio Management to Enable Cost
Savings and Minimize Resource Overallocations.
1
Larry Mead, PMP, MCP – Pcubed - Atlanta, GA
(www.pcubed.com) Direct: 404-784-9469
Agenda
Introduction
Portfolio Overview - Framework
EPM
EPTs, PDPs
Workflow
Stages/Phases
Live Demo – Microsoft PPM
Unified Project and Portfolio Management Capture all work in a central repository
Pcubed at a Glance
• The world’s leading provider of full-service project and portfolio management solutions.
• More than 15 offices and 350 people worldwide, supporting over 2,500 client initiatives since ‘94.
• Enterprise Premier Microsoft Project Solutions Provider, and Microsoft Certified Gold Partner.
• A pragmatic, results-oriented culture driven by the maxim… every project successful
Hong Kong
Chicago
Ann Arbor
London Cologne
Paris
Boston
New York
Atlanta
Wash., DC
Los Angeles
Seattle
San Francisco
Denver
Sydney
Toronto
Mexico City
What We Do Portfolio Management
• Pipeline Management
• Analysis and Optimization
• Capacity and Resource Management
• Governance and Delivery Management
• Business Case & Benefits Realization
Program Leadership
• Setup
• Lean PMO Setup and Delivery
• Assurance
• Governance and Control
• Delivery Resourcing
• Turnaround
Disciplined Delivery
• Planning, Earned Value and Reporting
• Cost, Change, Risk and Issue Management
• Capability Support – Process/Tool Implementation
9/23/2011
5
Drive Stakeholder
Alignment
Integrate Cross-
Functional Teams
Deliver Programs
Results:
• Select and drive the right project
initiatives
• Reduce the cost and risk of key
programs
• Drive efficiency into operations
Portfolio Management Framework
6
Portfolio Management is an integrated, continuous process of identifying, prioritizing and managing a portfolio of projects in alignment with key performance metrics and strategic business objectives
Categorize Project Inventory
Mandatory legal, safety, tax or
other Regulatory requirements
The minimum amount of spend
to maintain current operations
Adding or improving capability
that generates long term
competitive advantage
Risk Based Asset Life-Cycle
Management investment
Non-Discretionary Discretionary
REDUCE COST & OPERATE
EFFICIENTLY
REDUCE RISK & ENHANCE
ASSETS
COMPLY WITH LAW &
CORPORATE POLICY
INCREASE COMPETITIVE ADVANTAGE
Clearly defined spend categories enable optimized allocation of funding and
resources across the portfolio and allow external benchmarking.
Analyze, Optimize, and Select Project Portfolio
Executive
Involvement
Improvement Projects Impact on
Weighted Strategic Drivers:
Selected Portfolio
Portfolio
Optimization
Review
Strategic
Value Financial
Value
Regulatory
Replacement
Improvement
Yes
No
Yes
No
“Force in”
to portfolio
“Force in”
to portfolio
Driver 1
Driver 2
Driver 3 Low
Impact
Extreme
Impact
Sco
re
Strong
Impact
Yes
No
Yes
No
Regulatory
Classification
Process
Completed?
Business Risk Score
Indicates High Impact, High
Probability?
Replacement
Classification
Process Completed?
Specific Regulation?
Not Deferrable?
e.g., SOX
e.g., New CAD
system
e.g., Module Upgrade
Co
ns
train
ts s
et
by e
xecu
tive m
an
ag
em
en
t LEGEND
Portfolio Optimization Objectives
List of Submittals Optimized Portfolio
Base Case:
20% Reduction
Forced-in
Regulatory
Forced-in
Replacement
Optimal set of
Improvement
projects
Strategic Drivers
Achieve Governance
Board Portfolio Constraints
(cost & resource)
Maximize Strategic Value
Ensure the right set of
projects to mitigate risk are
in the portfolio
Ensure the right set of
projects to comply with
Regulatory requirements
are in the portfolio
Maximize spend available
for Improvement projects
Weight Project Inventory Against Business Drivers
11
Enterprise Strategy
Driver 8
Driver 4
Driver 6
Driver 7
Driver 5
Business Drivers:
Driver 1
Driver 3
Driver 2
Sample
Discrete, Measurable
Drivers
Driver
Weightings
Pa
ir-W
ise
Co
mp
aris
on
s
%
%
%
%
%
%
%
%
Executive involvement is critical in selecting and weighting the relative importance of the strategic drivers
against which projects should be assessed for alignment to business strategy.
Strong Extreme
None None
Moderate None
Extreme None
None Moderate
None None
None Strong
None None
Project 1 Project 2
Impact Evaluation
By Owner
Y X
Strategic Alignment Score
Iden
tify
Str
ateg
ic D
rive
rs
Use enterprise strategy
Portfolio Optimization Well Executed
Strategic
Value
Constraint
($’s Capital, Resources, Risk)
Cut
Resource
Constrained
Projects
Cut High
Execution
Risk
Projects
Initial
Budget
Revised
Budget
Efficient Frontier
Very little loss
of strategic impact!
Effective portfolio prioritization delivers intelligent cost reduction
How to get there - Portfolio Optimization Process
Define Business Drivers Based on Strategy
Identify Project Inventory
Categorize Project Inventory
Align Project Inventory Against Business Drivers
Assess Project Specific Risks
Identify Project Budgets
Define Project Specific Resource Requirements
Identify Project Interdependencies
Analyze, Optimize, Select
PPM Solution
13
The Enterprise Project Management
Solution
14
Enterprise Project Management
Manage
Collaboration & Reporting
Plan
Work Planning
Select
Portfolio Selection
Create
Demand Management
Four typical phases of demand management lifecycle
Central Admin
Configuration
Project Web
Access Admin
Configuration
Post
Configuration
Install Project
Server
Run SharePoint
Configuration
Wizard
Project Server
2010
Run Pre-
Requisite
Installer
Install
SharePoint
Server 2010
SharePoint
Server 2010
Install Windows
Server
Run Windows
Update
Base
Installation
Install SQL
Server and
Components
Install Software
Updates
SQL Server
Project Server
Clients
SQL Server
PWA Server
Project Server 2010
Client Tier
Database Tier
Web Tier
Project Professi
onal
Published
Active Cache
PSI Forward
er
Project Server Interface (PSI)
Internet Explorer
Microsoft SharePoint Foundation 2010
Microsoft SharePoint Server 2010
Microsoft SharePoint Foundation
2010
Microsoft SharePoint Server 2010
Draft Archive Reporting Config
LOB Applicati
ons
3rd Party Applicati
ons
Data Access Layer (DAL)
Business Objects
ASPX Pages
Eve
ntin
g S
yste
m
Qu
eu
ing
S
yste
m
Sch
ed
uling
En
gin
e
Pro
ject
Se
rve
r W
ork
flow
Syste
m
PWA
Server ASPX Pages
Content
Application Tier
ENTERPRISE PROJECT TYPES
(EPTs)
18
Demand Management Concepts EPTs
Enterprise Project Types
Workflows
Stages/Phases
Project Detail Pages
SharePoint/Custom Web-parts
Enterprise Custom Fields
19
Enterprise Project Type (EPT)
PWA uses EPTs to group:
Project Detail Pages
Phases
Stages
Required business case artifacts
Projects created using Project Professional will automatically be
associated to the default EPT
21
Out-Of-the-Box EPTs
Sample Proposal
Workflow driven
Basic Project Plan
Non workflow driven
22
How to Create New Project Site Template:
PROJECT WORKFLOWS
24
Demand Management Concepts EPTs
Enterprise Project Types
Workflows
Stages/Phases
Project Detail Pages
SharePoint/Custom Web-parts
Enterprise Custom Fields
25
Unified Project and Portfolio Management Capture all work in a central repository
Out of the box, Project Server 2010 is
preconfigured with the following Phases:
Select
Portfolio Selection
Resource Planning
Plan
Reporting / Assessment
Finished
Collaboration / Execution
Manage
Capture Requests
Create
But in order to be beneficial to an organization, custom configuration is required!
27
New Project with Workflow Initiated
1. Define the Project Lifecycle
30
Create
Phase
Select
Phase
Manage
Phase
Finished
Phase
Plan
Phase
Example Process aligned to Phases:
OOB Sample Proposal Workflow
31
“If budget cost falls within
range”, the “Range” for
Public Beta is less than
1,000,000. It means that
any project that cost less
than one million dollars will
be automatically approved.
Overall Project Workflow Process
EPT’s are the starting point, PM initiates a project by
picking an EPT in PWA
A series of one or more Stages need to be followed in
sequence. Each Stage displays one or more PDP’s
to collect/display info
Phases logically group sets of Stages
A Workflow, built in Visual Studio, must be associated
with at least one Stage, exerting control on the
sequence through definition of Approvals
33
Workflow Stages and Phases
Vital component of the Project Lifecycle
Stage controls behavior
Visible Pages
Read Only, Required Custom Fields
Phase groups stages
Current phase, stage of project available in Project Center, Reports
34
Demand Management Concepts EPTs
Enterprise Project Types
Workflows
Stages/Phases
Project Detail Pages
SharePoint/Custom Web-parts
Enterprise Custom Fields
35
PHASES AND STAGES
36
Phases
Out Of The Box Phases:
Create
Plan
Select
Manage
Finished
37
Stages
Each Stage is one step in the project lifecycle
Stages are managed in PWA
Stage is composed of one or more PDP’s
Workflows may be linked to Stages within
Visual Studio
38
PROJECT DETAIL PAGES
39
New Project request form
42
43
44
Customizations by Configuration
Available Feature Areas for Custom
Configuration:
45
Demo
Phases
Stages
PDPs
Workflow
46
Utilizing Portfolio Management to Enable
Cost savings and Minimize Resource
Overallocations
Enterprise Project Types
Workflows
Stages/Phases
Project Detail Pages
SharePoint/Custom Web-
parts
Enterprise Custom Fields
Summary
Project Server 2010’s Demand
Management:
Supports Work Management and
Governance
Flexible and Extensible
Based On SharePoint
QUESTIONS?
48
APPENDIX
49
Portfolio Optimization Process
Define Business Drivers Based on Strategy
Identify Project Inventory
Categorize Project Inventory
Align Project Inventory Against Business Drivers
Assess Project Specific Risks
Identify Project Budgets
Define Project Specific Resource Requirements
Identify Project Interdependencies
Analyze, Optimize, Select
50
Weight Project Inventory Against Business Drivers
51
Enterprise Strategy
Driver 8
Driver 4
Driver 6
Driver 7
Driver 5
Business Drivers:
Driver 1
Driver 3
Driver 2
Sample
Discrete, Measurable
Drivers
Driver
Weightings
Pa
ir-W
ise
Co
mp
aris
on
s
%
%
%
%
%
%
%
%
Executive involvement is critical in selecting and weighting the relative importance of the strategic drivers
against which projects should be assessed for alignment to business strategy.
Strong Extreme
None None
Moderate None
Extreme None
None Moderate
None None
None Strong
None None
Project 1 Project 2
Impact Evaluation
By Owner
Y X
Strategic Alignment Score
Iden
tify
Str
ateg
ic D
rive
rs
Use enterprise strategy
www.microsoft.com/project
blogs.msdn.com/project
http://office2010.microsoft.com/project-help
http://office2010.microsoft.com/project-server-help
www.microsoft.com/showcase/en/US/channels/microsoftproject
www.microsoft.com/events/series/epm.aspx
http://go.microsoft.com/?linkid=9713956
http://go.microsoft.com/?linkid=9713654
http://sharepoint.microsoft.com
http://technet.microsoft.com/ProjectServer
http://blogs.technet.com/projectadministration
http://blogs.msdn.com/brismith
http://msdn.microsoft.com/Project
http://blogs.msdn.com/project_programmability
http://social.msdn.microsoft.com/Forums/en-US/category/projectserver2010,projectprofessional2010
Medium Dataset Component Minimum requirement
Processor 64-bit, four-core, 2.5 GHz minimum per core
RAM 8 GB for single server and multiple server farm installation for production use
Hard disk 80 GB Processor 64-bit, four-core, 2.5 GHz minimum per core
RAM 8 GB for single server and multiple server farm installation for production use
Hard disk 80 GB Processor 64-bit, four-core, 2.5 GHz minimum per core
RAM 16 GB for single server and multiple server farm installation for production use
Hard disk Refer to TechNet for Recommendations
for Project Server 2010
or higher or higher
or higher
or higher or higher
Exchange 2007
SP2 or later
Top Related