enterprise portfolio vs. governance - acs sa branch...

Enterprise Portfolio vs. Governance

1

Independent consulting firm specialising in Enterprise Portfolio Project Management

SEA-JTP (Software Engineering and Architecture Joint Technical Program)

ACS and Engineers Australia

28.4.2011

Sir Robert Chapman Theatre

L11, 108 King William Street

Agenda • Enterprise Portfolio Management – Drivers

– History

– Definition

– Challenges

– Impact

• Governance – Definition

– Challenges

• Convergence

– Means

– Impact

2

Enterprise Portfolio

Management

drivers

3

Organisational benefits

identify redundant

investments,

focus on critical, strategic

investments, and

avoid those that have

unacceptably high risk

or low returns

4

What stakeholders want?

Overcome key challenges

– Doing the right things,

at the right time

– With the right people

– Getting control

– Mitigating risk

And they expect…

– Accurate and enterprise-

wide visibility

– Locate and capitalise

on talent

– Real-time programme and

project management

– Full life-cycle, risk

analytics

5

Today’s reality…

6

Management policy,

processes, systems and their

respective consequent

linkages are fragmented...

• No accountability

• Slow reaction time

• Squandered resources

• Escalating costs

Risk Mitigation Strategy

Strategic Goals

Programs and Projects

Financial Reporting

Monitoring Performance

Talent Search

Planning & Execution

Distributed Information

Profitability

$ € £ ¥

Cost Controls


Management

history

7

Discipline evolution

8

Individual Collective

Circa 1980 institute control methods and procedures to ensure projects met their objectives. Circa 1990 crafting the best financial investment today referred to as project portfolio management. Interaction via spread sheets and flat file transfer Circa 2005 software capable of linking data from many, integrated source business systems. Circa 2010 starts of integration beyond organisational boundaries into the value chain. Source systems securely share dynamic information.

single user projects

1xdatabase

many projects same

database

convergence with source

business data

convergence with value

chain

Market reality Business Value

Strategy

PROJECT CONTROLS

Planners

Project Managers

Project Controls

PROJECT MANAGEMENT (PM)

PROJECT PORTFOLIO MANAGEMENT (PPM) DIVISION/LOB Planners Project Managers Project Controls Resource Managers Program Managers

ENTERPRISE PORTFOLIO

PROJECT MANAGEMENT (EPPM)

ENTERPRISEWIDE

Planners

Project Managers

Project Controls

Resource Managers

Program Managers

Team Members

Executives

single user projects

1xdatabase

many projects same

database

convergence with source

business data

convergence with value

chain

Business reality

10


Management

definition

11

Intention

12

Keeping lights on

Keeping our promises

Doing things better

Doing more things

Doing better things

Transform business

Run business

Inventory and select projects and business as usual activities based on what is:

Mandatory vs. non-discretionary

Discretionary vs. growth

Scope

13

Organisational

process

Top Down

Decision

Specialist

Bottom Up

Tools & Techniques Methods

Approach

Style

Portfolio Spectrum

Finance Assets Products &

Services Transformation

Change ICT

Processes

Portfolio

Analysis

Programme & Project

Delivery

Define Financial Criteria

Manage costs

Select, prioritise, analyse Execute

Data

‘Draw string’ ...

… finds the data sources & combines...

- People = Org development, HR & payroll

- Processes • Accounting = budgets, commitments, actuals

• Authority = delegation of authority

• Procurement = purchase orders

• Planning = strategic, corporate, business unit

– Systems = ERP’s, specialist applications

15


Management

challenges

16

Data integrity

• Problems

– Consistency

• budget; actual; cost business rules

– Ability • where are the skills?

• what is the availability?

– Clarity • multiple spreadsheets

looking for the right answer

– Ownership • who owns it & why?

17

• Sensitivities

– Legacy

– Accountability

– Transparency

– Leadership

Confidentiality

• Problems

– Data exchange • Design drawings including

mark-ups

• Schedules

• Budgets

– Between • Prime and Client

• Prime and sub-contractors

and Client

18

• Sensitivities – Contract

• Business rule

• System integration

– Security • T&C’s

• Monitoring

– Document control • Naming conventions

• Access rights

Synthesis

ERP

Services

Billing

Documents

Specialist

specialist

specialist

19

Enterprise centric

Portfolio & Program,

project mgt

Sales & marketing

Engineering

Demand to delivery

ERP


Mgt

Hard work point to point Competitive advantage Seamless synthesis

customer

JV project Alliance project

Supplier agreement

Reporting Value proposition

Contract mgt

Business improvemt

customer

JV project Alliance project

Supplier agreement

Reporting Value proposition

Contract mgt

Business improvemt


Management

impact

20

Structure

• Organisational

design – Strategy team

– Evaluation team

– Monitoring team

• Organisational

behaviour – Proactive vs. reactive

– Coaching vs. policing

– Enabling vs. restricting

• Roles – Process gatekeepers - new

– Internal auditors - reinventing

– External auditors - reinventing

• Form v Substance • Form doesn’t change much,

little visible difference as it

becomes less significant

• Substance changes,

becomes significantly different

as information becomes visible

& transparent

Integration

22

Redesign / Reinvent Underpinning business

& organisational structures

Define & align operating methods

Connect plans, budgets & forecasts

with Strategy, Benefit,

Risk, Performance

Strategy

... Draws together:

– Strategy

– Capability

– Payback

Strategic

Planning

Demand

Management

Capacity

Planning

Financial

Planning

Road mapping

Requirement

Management

Resource

Management

Projects

Ongoing

Operations

Forecasts &

Actuals

Benefit

Strategic ROI

Total Cost of

Ownership

Total Cost of

Development

Cultural

Alignment

Analytics Performance Metrics Reporting

Governance

definition

24

definition

• Governance is the act of governing – define expectations,

grant power, or verify performance

• Relates to – consistent management

– cohesive policies, guidance, processes

– decision-rights for a given area of responsibility

• IT Governance – assure the investment in

IT to generate business value

• Corporate governance – processes, customs,

policies, laws and institutions affecting the way people direct, administer or control a corporation

25

history

• 1960 Richard Eells – first documented use of the word

• "corporate governance"

– to denote • "the structure and functioning of the

corporate polity"

• 2002 ASX Corporate Governance Council

• 2003 1st edition Principles & Recommendations

• 2007 2nd edition Principles & Recommendations

26

Governance

challenges

27

environment

Chart of Accounts

LOB

Division

LOB

Country

LOB

28

data

29

Consistency

Ability

Clarity

Ownership

Data exchange

Security

Convergence

means

30

reinvention

• Multi- dimensional vs. single focussed reporting – Budget; Profit; Expense;

Return

– Strategy; Risk; Benefit; Performance

• Domain shift – Finance, accounting

– Operations, customer

– Risk, environment

1. What are we funding?

2. What value is the investment returning to the business?

3. What other alternatives investments could generate higher value?

31

structure

• Executive Secretariat – Multi-disciplinary team

– Strategy

– Risk

– Performance

– Growth

• Business designed – Vs. $’s or IT

• Roles – Process gatekeepers

– Internal auditors

– Portfolio analysts

• Skills – Data mining

– Information analysis

– Mathematics

– Psychology

– Cross functional

impact

receive cross functional

integrated …

– Accurate and enterprise-

wide visibility

– Locate and capitalise on

talent

– Real-time programme

and project management

– Full life-cycle, risk

analytics

33

Independent consulting firm specialising in

Enterprise Portfolio Project Management