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