Скачать презентацию Project Portfolio Management Tom Westcott CEO Project Solutions Скачать презентацию Project Portfolio Management Tom Westcott CEO Project Solutions

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Project Portfolio Management Tom Westcott, CEO Project Solutions Group Project Portfolio Management Tom Westcott, CEO Project Solutions Group

Agenda What is Portfolio Management? Aligning projects to business strategy The project selection process Agenda What is Portfolio Management? Aligning projects to business strategy The project selection process When do you terminate an existing project? Demonstration of Microsoft UMT product Becoming a PPM Organization

What is Project Portfolio Management? Project Portfolio Management (PPM) is a discipline used to What is Project Portfolio Management? Project Portfolio Management (PPM) is a discipline used to manage a grouping of projects, resources and assets, to effectively achieve organizational goals.

PPM is a Solution to a Problem The biggest problems organizations face in achieving PPM is a Solution to a Problem The biggest problems organizations face in achieving their objectives: Not realizing the benefits promised from projects Competing and changing priorities on projects Not enough resources to complete all projects Project delays and budget overruns

PPM is a Solution to a Problem PPM should help organizations: Maximize organizational benefits PPM is a Solution to a Problem PPM should help organizations: Maximize organizational benefits from projects Choose the right projects Ensure adequate resources to complete projects Increase project success rate

Defining Strategic Goals/Objectives Defining strategic goals and objectives is critical to being able to Defining Strategic Goals/Objectives Defining strategic goals and objectives is critical to being able to effectively manage a project portfolio. Strategic goals and objectives help to: • determine which project work should and should not be done • Prioritize project work • Establish metrics for measuring portfolio success

Linking Strategy to Portfolio Management Goals Strategies Projects Buy and integrate Company X Buy Linking Strategy to Portfolio Management Goals Strategies Projects Buy and integrate Company X Buy and integrate Company Y Acquisitions Grow to $2 B Develop Sales Channels in Europe Implement 3 additional sales channels Establish survey programs Improve Customer Satisfaction Build Customer Survey Program Increase Market Share Build industry leading competency in X Increase direct marketing efforts Build online survey tools Fund university collaborative Build recruitment program Develop catalog Execute direct marketing campaign

Symptoms of Defective Strategic Planning Project and resource managers often fight over resources Project Symptoms of Defective Strategic Planning Project and resource managers often fight over resources Project priorities and resource assignments change frequently Managers have authority to unilaterally start projects Projects are started without regard to resource availability Completed projects do not produce expected results By the time change is implemented, it is obsolete There is no single view of all projects how they relate to strategic goals Significant turnover at the senior management level The strategic objectives are a list of initiatives without priorities, benefit analysis, dates or sequencing

Symptoms of Defective Strategic Planning If an organization is constantly changing project priorities, this Symptoms of Defective Strategic Planning If an organization is constantly changing project priorities, this is a red flag that the entire strategic planning process is out of control!

Defining the Portfolio The portfolio of projects exists only to deliver results for the Defining the Portfolio The portfolio of projects exists only to deliver results for the strategic goals of the organization. This involves a top-down planning approach. When project are identified outside of the strategic planning process, they must be evaluated against the strategic objectives and then against the current portfolio.

Project Portfolio Prioritization (forced) Purpose of prioritizing your project portfolio is to determine which Project Portfolio Prioritization (forced) Purpose of prioritizing your project portfolio is to determine which projects: should be done can be done get funded start when get terminated get strategic (scarce) resources

Align Investment to Strategy Optimization of project selection promotes strategic priorities Optimized Unaligned Align Investment to Strategy Optimization of project selection promotes strategic priorities Optimized Unaligned

Resource Constrained Project Scheduling Consider these 2 scenarios: Scenario 1 – Resource A is Resource Constrained Project Scheduling Consider these 2 scenarios: Scenario 1 – Resource A is working on 2 projects simultaneously (50% on each). Scenario 2 – Resource A works on one project (at 100%) and then begins the second project when the first is complete. Resource A (50%) Resource A (100%)

Ongoing Measurement & Analysis ‘Just by observing a system, you change its behavior’ – Ongoing Measurement & Analysis ‘Just by observing a system, you change its behavior’ – the Observer Effect, Heisenberg's Uncertainty Principle “The purpose of a measurement system is to drive the parts to do what is good for the system as a whole. ” – Dr. Eli Goldratt, Theory of Constraints “To be able to manage, you must be able to control, and to be able to control, you must be able to measure. Thus, if you cannot measure, you cannot control and if you cannot control you cannot manage!”

Ongoing Measurement & Analysis Since measurement changes and affects behavior, it is critical to Ongoing Measurement & Analysis Since measurement changes and affects behavior, it is critical to choose the right measures and apply them in the right way to achieve the desired results. One of the biggest failures of organizations is measuring the wrong factors. “Tell me how you measure me, and I will tell you how I will behave. If my measurements are unclear, then no one can predict how I will behave, not even me!” – Dr. Eli Goldratt

What is Project Portfolio Management? “Alignment is the essence of management” Fred Smith, Chairman What is Project Portfolio Management? “Alignment is the essence of management” Fred Smith, Chairman Federal Express Management Discipline – improves alignment between strategy planning and business/IT; strengthens governance; improves project definition, portfolio selection, resource planning and executive reporting Comprehensive Project Inventory – develops and captures new, ongoing and carryover work centrally to provide transparency around how key Business Drivers are supported and how resources ($/FTE) are dispersed Transparent & Actionable Decisioning Framework – provides ongoing and actionable portfolio analysis and reports to the PPM is a management discipline that helps organizations achieve maximum project portfolio value through the continuous process of evaluating and managing projects against key performance metrics and strategic business objectives. decision-makers to enable improved investment viability and accountability Workflow With Roles & Responsibilities – provides clearly defined Analytical software toolset – leverages toolsets to capture project inventory and to ensure optimal, roles and responsibilities throughout the process and Governance framework consistent and fact-based portfolio selection and planning decisions by simultaneously evaluating and comparing competing project ideas and resource needs (e. g. , what-if, sensitivity analysis, optimization, etc. )

Request Management Business Case Development Portfolio Prioritization / Valuation Portfolio Optimization / Selection Project Request Management Business Case Development Portfolio Prioritization / Valuation Portfolio Optimization / Selection Project Planning Cost Management Resource Management Time Reporting Change Management Issue Management Risk Management Status Reporting Earned Value Analysis Program & Portfolio Reporting Benefits Realization Portfolio & Program Management Governance Process Definition Project Management Business & Technology Stakeholders Organizations Utilize Both Disciplines Portfolio Management answers the following questions: Have I selected the right investments? Do the investments align with the strategic objectives? Do I have sufficient resources to deliver the selected investments? Will the investments be delivered on time and within budget? Are my investments delivering the forecasted benefits?

Investment Effectiveness Even with the advent of portfolio management, in use by over 50% Investment Effectiveness Even with the advent of portfolio management, in use by over 50% of organizations today and better project management techniques, 40% of the value of projects is lost. 100% 40 % Value Lost Portfolio Management 60% Value Realized 0% Project Mgt. Ability to Realize Business Value Potential 100% Best Practice Company Today 100% Effective Use of Resources <10 % Value Lost >90% Value Realized 0% Efficient Project Delivery Ability to Identify Business Value Potential Average Company Today Ability to Identify Business Value Potential However companies that have put their focus on “selecting the right projects, the right way, at the right time” are attaining a yield of 90% or more from their projects 1. Ability to Realize Business Value Potential 1 Source: Dr. Howard Rubin Meta Group 100%

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Determine Selection Criteria Gather C-level personnel and identify goals and strategies – Goals should Determine Selection Criteria Gather C-level personnel and identify goals and strategies – Goals should be quantifiable – Strategies should be ‘objective’ – Projects should be specific plans to achieve objectives 1) 2) 3) 4) Improve Financial Performance a) Expand into new markets and segments b) Increase market share in existing markets c) Reduce expense base Maximize Organizational Efficiency a) Expand into new markets and segments Improve Customer Satisfaction a) Improve customer satisfaction score b) Improve product quality Reduce Turnover a) Improve employee satisfaction

Prioritize Selection Criteria Conduct ‘Pairwise Comparison’ session with C-Level personnel Consistency Rate is important! Prioritize Selection Criteria Conduct ‘Pairwise Comparison’ session with C-Level personnel Consistency Rate is important!

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Evaluate Project Portfolio Coordinate with SME’s and middle managers to align projects to strategies Evaluate Project Portfolio Coordinate with SME’s and middle managers to align projects to strategies

Result: Project Priorities Result: Project Priorities

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

We’re not done yet. . . Model portfolio based on constraints (i. e. cost, We’re not done yet. . . Model portfolio based on constraints (i. e. cost, resource, etc)

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Project Portfolio Lifecycle Identify New ideas Initiatives Enhancements Regulation Mandates PPS Define Benefits Strategic Alignment Resources Budget Ownership Dependencies PPS Prioritize Select Strategic Value Financial Value Risk Value Criteria Weighting Mapping Optimization Constraint Force I/O Risk PPS Stage Sequence Capacity Max ROI Baseline PPS/EPM Plan Tasks Milestones Schedule Leveling Resources Budget Risks EPM Execute/ Track Baseline Actuals Variances EVM Reporting Utilization Work Auth Issues Risks EPM Close % Comp Approval Final Docs Historicals EPM Measure Cost Time ROI Quality Success PPS 1

Terminating Projects Just because a project has been initiated, doesn’t mean it should never Terminating Projects Just because a project has been initiated, doesn’t mean it should never die! At each stage-gate, evalute project against strategies and criteria. What is th be com e probability mercia t lly succ hat the projec essful? t will ategies? ligned with str t still a Is the projec Ho at the t w is the proje bability th arget c c hat is the pro W riteria? t performing ally technic agains t project will be successful? Does the project still represent effective use of the firm’s resources? Ask questions:

PPM Stakeholders Project Portfolio Server’s PPM features address executive concerns, opening doors CEO/Strategy Mgt. PPM Stakeholders Project Portfolio Server’s PPM features address executive concerns, opening doors CEO/Strategy Mgt. Officer • Operationalize Chief Information Officerstrategy CFO PPMO Strategy Mgt Officer • Executive level strategic • Business value-based • Optimize investment consensus LOB Executives • Real-time visibility prioritization allocation • Project Life • Business benefit linkage Cycle framework CFO CIO LOB Executive A LOB Executive B PMO • Resource commitment • Standardized financial • Reportable repository • Higher strategic ROI control / budgeting tool forecast and tracking • Inter-project • Clear resource demands coordination • Often the starting point for • Project Sponsor visibility • Skill leverage & escalation PPM maturity growth

MS PPM Solution Architecture Integration with Tools People Know Team Participation Executive Reporting Project MS PPM Solution Architecture Integration with Tools People Know Team Participation Executive Reporting Project Web Access Easily Create Enterprise Project Plans Project Professional XML-based API Project Documents, Issues/Risks & Tasks

UMT Demonstration UMT Demonstration

PPM Maturity? How are projects currently selected in your organization? 1. Ad Hoc or PPM Maturity? How are projects currently selected in your organization? 1. Ad Hoc or Random 2. Selected individually on a case by case basis 3. Evaluated against other projects based on financial ROI OR against other projects based on strategic goals 4. Evaluated against other projects based on financial ROI and strategic goals 5. Financial ROI, strategic goals AND optimized, given budget and resource constraints What is your biggest PPM-related concern? 1. Governance (inconsistent PPM governance processes across organization) 2. Monitoring (Lack of reporting/monitoring capabilities) 3. Consistent Valuation (Difficult to compare projects because of inconsistent valuation framework) 4. Alignment (Ineffective processes to align investment ideas to business strategies) 5. Transparency (Poor visibility and missed opportunities)

Roadmap to PPM Maturity in the Organization Enterprise Our Opportunity Value to Organization lize Roadmap to PPM Maturity in the Organization Enterprise Our Opportunity Value to Organization lize lx e. P alu io fol ort V e= alu a nti ote V P Project Inventory Ad hoc No Portfolio Inventory or Process -“Just Do It/FIFO” -Success is random -Poor transparency Basic Crawl Processes are defined & documented, and most projects are aligned to Business Driver y ilit Ab to a Re Project 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 Cross Portfolio 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 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 All projects are consistently captured in a project inventory Stages of Excellence Walk World-Class Run

Implementing a PPM Process Gain Senior Management buy-in Take a phased approach Develop governance Implementing a PPM Process Gain Senior Management buy-in Take a phased approach Develop governance process Use proven PPM tools Develop consistent set of strategies and drivers and weight their importance Optimize the portfolio against constraints Continue to monitor portfolio execution and benefits realization

Gaining Control: Success Stories “UMT’s solution led our Senior Executive Team to increase the Gaining Control: Success Stories “UMT’s solution led our Senior Executive Team to increase the 2004 IT Budget to allow additional projects to be funded based on their proven Strategic Value. ” “Wachovia is using UMT Portfolio Manager™ … by using the specialized tools, it allows a much higher degree of interactivity and participation. ” “…there was much less skepticism about the value of the projects and a richer dialogue about IT and business strategy. …it's re-established our credibility and trust and has allowed senior officers to get engaged with IT at a much more strategic level. " “It’s been extremely well received by our business partners. Some business units are even using the tools on non-technology projects. It isn’t fundamentally about cost savings. It’s about resource allocation. ” Frank La Rocca – CIO Key. Span Energy "…we saved $5 to $10 mm [out of a $50 mm budget] in the first year alone on projects that would have automatically gone through before. ” Paul Bateman – Dir. Enterprise Governance AXA Financial Allan Shub – VP Retail Wachovia UMT Portfolio Manager™ “helps agency heads and IT managers to have a greater awareness of all IT projects that are being worked on. “ Tom Runkle – Dir. Enterprise Projects State of North Carolina

What’s Next? On-Site Executive Briefing on Project Portfolio Management In this two-hour briefing we What’s Next? On-Site Executive Briefing on Project Portfolio Management In this two-hour briefing we will discuss how your organization can take advantage of one or more of the following benefits: Determining appropriate project selection criteria Connecting your business strategy to the project selection criteria Preventing “problem projects” from making it into the pipeline Identifying & terminating non-strategic projects Using technology to optimize your portfolio and gain real-time visibility Determine ROI on current and future projects Properly staging projects for the highest ROI Includes an interactive demonstration of Microsoft’s PPS solution

What’s Next? Strategic Project Portfolio Management Training This 3 -day intensive training class will What’s Next? Strategic Project Portfolio Management Training This 3 -day intensive training class will cover: • Fundamentals of Project Portfolio Management – – – Understanding why managers need to care about strategy Understanding the process of value realization from projects Knowing your organization’s strategy through three market disciplines Linking an organization’s strategy with enterprise project management strategy Knowing, leading and working within your organization’s strategy Developing and managing the project business case • Implementing Project Portfolio Management – – Using a process to implement project strategic alignment Assessing project alignment with the organization’s strategy – – – – Using financial success criteria measures for projects Leading and communicating project strategy with project sponsors Linking business and project management strategy with a PMO Examining best practices of a project executive governance board Developing and effectively using a skill-based resource pool Using an effective project management information system Leading and working with business unit directors and managers » Leading and managing when the organizational strategy is fuzzy or does not exist • Managing Control of Strategic & Tactical Projects – – – Using MS Project 2003 Server and MS Project Portfolio Server to convert data to information Managing project risks across a program/portfolio of projects Monitoring and tracking a program/portfolio performance Analyzing data and making decisions about project delays and terminations Assessing the value realized proposed in the project business case

What’s Next? Project Portfolio Management Webcast For everyone who would like to share this What’s Next? Project Portfolio Management Webcast For everyone who would like to share this information with others at your organization, Project Solutions Group will be holding two webcasts of our Executive Seminar on Project Portfolio Management. • November 21, 2006 10: 00 AM - 11: 30 AM (ET) to register: https: //lra 100. livemeeting. com/LRSRegistration/EC/microsoft/185379199. aspx • December 19, 2006 10: 00 AM - 11: 30 AM (ET) to register: https: //lra 100. livemeeting. com/LRSRegistration/EC/microsoft/185379199. aspx

Contact Information Project Solutions Group – Tom Westcott, CEO – – – twestcott@psgus. com Contact Information Project Solutions Group – Tom Westcott, CEO – – – [email protected] com 508 -579 -1112 Tod Monchecourt, VP Sales [email protected] com (617) 448 -5674 Andy La. Garde, Senior Account Manager, New England [email protected] com (617) 448 -5119 Kristin Hanley, Practice Manager, New England [email protected] com (781) 883 -4415 Microsoft – Alban de. Bergevin [email protected] com