IT Portfolio Management Proposal

RR VogueMARK WILSON RAMSAY

Aim(s) Overview Background Approach Implementation

Portfolio Management of IT

Seeks to address some fundamental questions: Are we doing the right things? Are we doing these things right? Are we realising the benefits from changes?

Definitions

Efficiently - In an efficient manner; so as to produce an effect; with adequate success; effectively. OED (2016)

Effectively - So as to produce an effect, esp. a desired effect; (emphatically) with powerful effect; decisively, completely. OED (2016)

Benefits Realisation “For a project to be judged a success, potential benefits need to be identified as early as possible and realised either during or after the lifespan of the portfolio.” Remenyi & Sherwood-Smith, (1998)

Success

Levine (2005 p.22) offers a broad definition of PPM: “Project portfolio management is the management of the project portfolio so as to maximize the contribution of projects to the overall welfare and success of the enterprise.

Success Factors include: Portfolio Sponsor selected &

engaged Governance methodology Full time resources A method of prioritisation Top executive total commitment and

support

Background Issues

Cocoa price Digital and mobile technology Political changes

RRVogue Vision We will be a national leader in chocolate

manufacture and retail. A trailblazer in innovation and customer experience that operates an integrated vertical supply chain.

What projects?RRVogue

Vision Led – White Chocolate

New Factory

Factory

ProcurementIntegrationMarketing

Sales

IT spans all these areas

Vending Machines

ProcurementDeploymentRetail Outlet

Closure

Systems, Testing etc

RedevelopFactory

DisposalRefit

Remove or replace

Compliance - Dark Chocolate

Address Quality Issues

Quality Improvement

Lean or Six Sigma Process Introduction

Software or hardware changes, training

Business As Usual (BAU) - Milk Chocolate

Maintain Revenue

Renovate current factory

Maintenance of legacy systems

and others

Other Emergent or Vision Led

Alternatives to retail outlets

Wrapping Manufacture

Project Selection Process Financial

ValueStrategi

c Success

Selection and

Balance

Individual

Project Success

Net Present Value NPVvsInternal Rate of Return vsPayback Period

Sunk cost effect

Framing

Evidence

Strengthse.g. Approval received, access new business, revenues, market foothold

Weaknessese.g. Old factory not fit for purpose,

quality issues, new product

Opportunitiese.g. New Market, focus groups suggest

strong sales, growth

Threatse.g. Market trends, government interest & oversight, timeline, competitors, planning

applications

SWOT

A project example:

Benefits (Vending Machine Project)

Better customer access Reduced wastage

Less customer interaction No sales data or track record Other measures of performance needed New operating processes need trained

people

Available 24/7Controlled temperatureReduce retail outlet costs75% Initial Rate of ReturnNew operating model

Assumptions

Organisational• Focus is to maximise revenue

before shareholder value• Success is measured

throughout the portfolio life• Financial support to realise

the benefits from the project

Portfolio• Portfolio compared with

comparative metrics• Real time information

available to Portfolio Manager• Common reporting platform

and requirements defined• Portfolio Management Office

(PMO) and Management Information System (MIS) Ready

Programme / Project• Time, not quality or price is

the critical factor• Approval received to start• All programme and project

managers are assigned• Each project has an

associated and updated Business Case

• Extra resources will be made available as requested

Portfolio Management Proposal Management Maturity Model

Standardise Define Manage Optimise

Gate Reviews – Condition Based Steering Committees – Fortnightly Audits

Monthly – Overall portfolio performance Quarterly – Judge against success criteria

Programme TimelineNew Factory (estimated)

14 Dec 17 STANDARDISE•Proposal•Benefits identified and agreed

Jan 17DEFINE•Prepare•Manage•New Factory being built

Feb 17MANAGE•Deliver•New Factory Ready

Mar 17MANAGE•Manufacture started•End Mar 17 -White chocolate on sale

Apr 17 onwardsOPTIMISE•Realising benefits already•Learn and Adapt

Apr 18 onwards•Realise Benefits

•FY End

Apr 19•Closure•Conditions Based

Potential Projects

Hardware – Network configuration, legacy replacement Software – New tools, training, AI Marketing – Big Data, Customer Analytics Manufacture – Process automation, AI, 3-D modelling Business – Quick wins such as email simplification

Work remaining Portfolio Analysis

Work remaining Delivery Journey

RisksExternalInternalSystems & Technology

What is the total risk of the portfolio?

Summary

Overview Background Approach Implementation

Portfolio Management Proposal Management Maturity Model

Standardise Define Manage Optimise

Gate Reviews – Condition Based Steering Committees – Fortnightly Audits

Monthly – Overall portfolio performance Quarterly – Judge against success criteria

Any questions?

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IT Portfolio Manager CandidateMark Wilson Ramsay

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