© 2007 epk group, llc. all rights reserved. fast track roi for portfolio, project, and resource...


Fast Track ROI For Fast Track ROI For Portfolio, Project, And Portfolio, Project, And Resource Resource ManagementManagementRich MurphyFounding PartnerEPK Group LLC


Prioritizing Initiatives across the organizationDo we have the right people working on the right things?Are we spending effort on projects that should be cancelled?Do we have the skills and capacity to achieve our long term goals?Do we have the right mix of “operational efforts vs. major projects”


Foundation 47%Utility 21%Enhancement 21%Frontier 11%

Bill Rosser – Gartner PPM Summit Keynote, June 2007

32% produces identifiable business value


Which projects best support the corporate strategy? Where should the resources from a project nearing completion best be allocated?Which programs, projects, and infrastructure support efforts are currently behind schedule, over budget , and why?Do we have enough of the right people to successfully take on a key initiative?How is the resource plan impacted when a new project is added to the portfolio?

……is a is a processprocess …something we do, to answer …something we do, to answer questions like:questions like:

© 2007 EPK Group, LLC. All Rights ReservedSource: PMI draft Portfolio Management

Standard

Vision, MissionStrategic plan

Portfolio Performance review

Identification, categorization, evaluation, selection, prioritization, balance and authorization of Portfolio components

Project / Program performance reviewProject / Program

management process

Delivering completed Project / Program to operations

Project ProgramRequests

Strategic Objectives

OperationsOperations

StrategicStrategicPlanningPlanning

PortfolioPortfolioManagementManagement

Project/ProgramProject/ProgramManagementManagement


G

overn

an

ce

Govern

an

ce

People, Process & TechnologyPeople, Process & Technology

ProjectMgmt.ProjectMgmt.

Consistent, Repeatable Delivery

Integrated Delivery

Portfolio Mgmt.

Portfolio Mgmt.

Investment & Prioritization Decisions

Alignment with Objectives

ProgramMgmt.

ProgramMgmt.

Program & Project Dependencies


Project Management Challenges (what worries you most?):

IssuesIssues FY1FY1 FY2FY2

Changing Organizational PrioritiesChanging Organizational Priorities 43%43% 50%50%

Change ManagementChange Management 35%35% 40%40%

Risk Assessment and ManagementRisk Assessment and Management 37%37% 36%*36%*

Alignment between project and Alignment between project and organizational goalsorganizational goals

20%20% 21%21%

Project Management Skill LevelProject Management Skill Level 34%34% 33%*33%*

Scope ClarityScope Clarity 50%50% 49%*49%*

Source: BIA and Giga Information Group

* Showed slight improvement (just 1% year on year)* Showed slight improvement (just 1% year on year)


There have been slight improvements in PM practicesBut, most still aren’t buying into the concept of organizational project managementResult is that reactive behaviors stemming from habit and external pressures tend to preside over proactive ones.Personal and political preferences decide priorities more than alignment with business goals


Selection Selection Criteria & Criteria & CategorizatioCategorizationn

Projects Projects ““Killed” for Killed” for risk and non-risk and non-strategic strategic alignmentalignment

Portfolio Portfolio Performance Performance Oversight Oversight

Business Business Needs Needs DrivenDriven

Project Project ScoringScoring

Financial Financial Justification Justification

AuthorizatioAuthorization Board n Board

Stage 1

Stage 2 Stage 3 Stage 4

Strategic Strategic Roadmap Roadmap (Business/IT)(Business/IT)

Balanced Balanced PortfolioPortfolio

Clear and Clear and communicatecommunicated ROI and d ROI and business business benefitsbenefits

Politically Politically DrivenDriven

Ad hoc Ad hoc

Fire FightingFire Fighting

Budgeting Budgeting ProcessProcess


SCORING MODEL EXAMPLE

List of Criteria Weight Low Medium High Score Total

Financial Return 20% 0 5 10 10 2

Asset Leverage 20% 0 5 10 10 2

Operational Impact 10% 0 5 10 5 0.5

Strategic Alignment 15% 0 5 10 10 1.5IT Standards Alignment

10% 0 5 10 5 0.5

Project Complexity 10% 0 5 10 10 -1

Risk of Failure 15% 0 5 10 5 -0.75

100% 6.50

-1.75

4.75

Evaluation

Va

lue

Ris

k

Total Score

Value

Risk

Source: PMI draft Portfolio Management Source: PMI draft Portfolio Management StandardStandard


Lack of executive support – ineffective GovernanceOrganizational Barriers – incentives lead business unit leaders to compete for resources rather than optimizeLack of clear objectives – strategy not articulatedLack of IT awareness – business not understanding technology impacts on businessReactionary mindset – fire fighting rather than planning


It’s about much more than “project” managementIts about more than a “tool”


Portfolio managementIdentify all the effortsEstablish a stage-gate control process

Budgeting/cost managementResource planning, “capacity vs. demand”Project ManagementTimekeeping

Approach the first 3 in that order.Timesheets can come anywhere in your implementation.


Don’t assume you have a complete list because management has a list they useCategorize as:

Major projects (approved)Operations/supportNew initiatives (not yet approved)

Gather some common information about every effort:

Planned start and finishOverall manpower budget (must be time-phased)What business goals does it support?Who’s in charge?


What type of costs?BudgetProject ForecastActuals

Cost categoriesLabor

In-houseContract

HardwareOverheadContingency

Fiscal reporting periods


“Stage-gates” are NOT “phases” of a projectThey are the approval/review process steps that all major efforts should pass throughEach “stage-gate” has business rules regarding the required data to move to the next stage.IT Governance Board should be directly involved in certain stage-gate reviews based on a published criteria.


Start with resource planning at high levelInstitute a formal “negotiation” processMaintain “commitments” and detail project assignments separately


Carefully consider reporting needsException based reportingOrient reports to management levelsExtensive graphical viewsLimit number of reports any person receives


Don’t go for the “big-bang” approach to implementation.

Start with an inventoryIntroduce stage-gates for all effortsEveryone does NOT have to become a project managerTimesheet (if required) can be introduced at any point in the overall implementation

Implementing a system requires review of your processes and change managementResource management is the key problem for most organizations


© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S.

and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be

interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation.

MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

© 2007 epk group, llc. all rights reserved. fast track roi for portfolio, project, and resource...

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