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Does your organization initiate more IT projects than they have the capacity to handle efficiently with limited budgets and resources? Do your organization’s IT projects align properly with the goals and objectives of the organization? Are your IT budgets being expended on the projects that deliver the best value to the organization? Does a lack of focus sometimes lead to poorly executed projects? If any of this sounds familiar, you are not alone. Many organizations, agencies and companies, large and small, are experiencing these growth-killing issues every day, especially in this era of higher organizational expectations, smaller budgets, shorter projects, limited resources, and narrowly focused skills. There is a solution, however -- Research has shown that top performing organizations that practice project portfolio management (PPM) and IT Governance have a 40% greater return on IT investments than their competitors (IT Governance by Peter Weill).
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(800) 556-2506 www.Edwards-Ind.com
EDWARDS PROJECT SOLUTIONS Phone: (800) 556-2506
Email: [email protected]
Web: www.EdwPS.com
What, Why & How?
Portfolio Management & Governance
Portfolio Management and Governance
Revised: August 2012
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
EDWARDS PROJECT SOLUTIONS
2
Poor Portfolio Management & Governance Starts At The Project Level
Courtesy of www.projectcartoon.com
The Customer…
…and the project…
…a “typical” project lifecycle…
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
3
What was described
Courtesy of www.projectcartoon.com
What was understood
Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
What was designed
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
4
What was developed
Courtesy of www.projectcartoon.com
What was initially
installed
Courtesy of www.projectcartoon.com
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Courtesy of www.projectcartoon.com
What Operations
FINALLY Delivered
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
5
What the Customer was
charged for
Courtesy of www.projectcartoon.com
…and how the project
was supported…
Courtesy of www.projectcartoon.com
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Courtesy of www.projectcartoon.com
When it was Delivered
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
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Now take that approach and multiply it by 10, 100, 1000…
Add in no Enterprise Management…
No Portfolio Management…
No Governance and…
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
7
You get insurmountable problems
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Agenda
What is Portfolio Management and Governance?
Why is Portfolio Management and Governance Important?
How do you implement Portfolio Management and Governance?
Case Studies – What others are achieving
Call to Action
8 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
What? Why? How? Now
What?
What is Portfolio Management and Governance?
9 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
What is Portfolio Management and Governance?
10
Portfolio Management is a capability that enables organizations to analyze, select and manage a collection of project investments that are aligned with your company’s goals and objectives within a data driven decision making framework.
Portfolio Management also coordinates the acceptance, approval, postponement, rejection or cancelation of a project which will not realize the proposed benefits or the corporation’s strategic outcomes.
Governance is the process of putting policies, procedures and processes in place to guide organizational operational activities and changes.
Governance warrants the achievement of an organization’s objectives by strategically aligning daily activities, setting direction, providing guidance on decision making and monitoring performance.
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
What? Why? How? Now
What?
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Why is Portfolio Management and Governance Important?
11 Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Why is Portfolio Management and Governance Important?
Organizations that practice Portfolio Management
and Governance are 20% more profitable than their competitors. (IT Governance, Peter Weill)
Portfolio Management and Governance is important because it addresses the following organization concerns, issues and trends.
PwC Global PPM Survey Findings
Misaligned Organizational Behaviors
Technical and Enterprise Debt
Future Technologies and Trends
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 12 Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
PwC Global PPM Survey Findings
The survey included some 1,524 respondents from 38 countries and within 34 industries.
2/3’s of organizations that deployed PPM reported that 90% of their projects perform to expectations.
Higher PM and PPM maturity yields higher business performance.
Higher levels of portfolio alignment increase stakeholder satisfaction.
Adoption of PPM has not increase since 2007 remaining at around 53%, but organizations using PPM have seen an increase in performance.
13 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
http://www.pwc.com/en_US/us/public-sector/assets/pwc-global-
project-management-report-2012.pdf
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Misaligned Organizational Behaviors
Too much concurrent demand in the same window of time.
Bad Multi-tasking
Conflicting Priorities – Resource contention
Behavior misalignment
Student Syndrome
Parkinson’s Law
14 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Enterprise Debt
15 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Requested
Projects Approved
Projects
Project
Debt
Enterprise Debt
increases
Increased
Cost to
Support
surfaces as
pays interest on
Increased
Work to
Change
surfaces as increases
Remedial
Work
surfaces as reduces
Source: www.pragmaticEA.com
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Technical Debt
16 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Increase cost of maintenance
Duplicate organizational functions
Bad business processes
Cost of rework
Cost of poor execution
Cost of poor data quality
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
IT project debts are killing business profits
IT failure costs the U.S. economy an estimated $1.2 trillion+ a year.
And, the global economy $6.2 trillion a year.
52% all projects will have costs overruns at a staggering 189% of the original cost estimate,
62% of projects have time overruns at a rate of 222% over the original time estimate.
41% of IT projects failed to deliver the expected business value and/or ROI.
17
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Future Technologies and Trends
Cloud Computing
Consumerization of IT
Social Media (LinkedIn, Facebook, Twitter, etc…)
Mobility or device agnostic anywhere access demands
Big Data: Ability to analyze large volumes of structured and un-structured data
IT must respond quickly while addressing organizational data security concerns
18 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Gartner Predicts 2012: Four Forces Combine to Transform the IT Landscape
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
What? Why? How? Now
What?
How do you address these issues and implement a Portfolio Management and Governance capability?
19 Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
How Do You Move Forward?
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Acknowledge a need for a holistic Governance approach
Capture projects and resources demand in a centralized repository.
Make data driven decisions on project investments
Measure progress with leading indicators
20 Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Governance Framework: Finding the Right Balance
21 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Avoid Burdensome process
Drive engagement
Ensure appropriate ownership
Appropriate forums for communications and engagement
Right Data Right People
Right Decisions
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Create A Centralized Repository
22 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Publish Projects
Central location for project information
Update task information via the Web
Project Collaboration
Issues
Risks
Communications plan
Change orders
Project Workspaces
Single place for all project information
Document Management
Meeting workspaces
Manage Issues and Risks
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Data Driven Portfolio Strategy
Force in/out projects
Change total cost constraint and click “Recalculate” to view the what if scenario and results
Unselected projects
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 23 Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Implement a Performance Management and BI Capability
You can’t manage what you don’t measure or describe.
Determining KPIs
Mission: What are they missions your department has targeted?
Strategy: What are the policies, procedures or approaches being used to accomplish these missions?
Objective: What are the key objectives of the mission?
KPI: What indicators can you measure to determine if you are meeting these objectives?
• Do you currently track metrics? Inventory
• Does the metric provide actionable data? Actionable
• Does the metrics enables you to make business decisions? Decision
• Does the metrics provide directional guidance? Predictive
• Does the metric capture historical trend in performance? Trending
• Can the metric features be integrated with other metrics? Integrated
Course Correction - 90% Rule
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 24
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Organization Challenge Solution Results
EPA Office of Water • Scored 1.3 out of 5 on OPMs maturity model
• Lacked PPM Capabilities
• Implemented Project Server 2010
• Implement Dashboard for monitoring progress
• Generated saving of 1.9 Million per year
• Increase score to 2.8
Marquette • Tracking only schedule data was not sufficient.
• Lack of standards
• Standardize PM process and templates
• Implement Enterprise PPM solution
• Ability to track capital projects across the University
Verizon Communication • 75 PM to oversee 150,000 projects
• Inefficient collaboration processes
• Automate the development of their WBS (schedules)
• Implement Enterprise Reporting
• Increase PM efficiencies by > $20 Million productivity saving
• > $25 Million reduced conference calls
Ingresoll –Rand • Need to increase PM skills
• Lack Financial insights on projects
• Capture project demand
• Training continuously • Establish a world class
governance model • Standardize across
departments with PPM
• Enabled the firm to support an end to end Project Lifecycle (from Proposal to Selection to Execution)
1000 Lawyer – Law Firm • Standardize PM Methodology
• Lack of Governance Processes
• Implement Standardize PM & Governance processes
• Train PM to become(PMPs)
• Increase EA maturity • Increase project
completion throughput from 10 to 65 projects a year
25 ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
What Others Are Achieving
Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
What? Why? How? Now
What?
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Case Study and Call to Action?
26 Portfolio Management and Governance
Revised: August 2012
EDWARDS PROJECT SOLUTIONS
Call to Action
Commit To The Journey
Senior Management Must Drive The Change And Remove Barriers.
Use Architecture As A Compass
Increase EA Maturity One Project At A Time
Hire A Tour Guide (Outsource to Experts with Experience)
Increase Your Employee’s Capabilities
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 27 Portfolio Management and Governance
Revised: August 2012
Thank you for your time!
For more information on how we can provide your organization with comprehensive project management solutions, please contact:
EDWARDS PROJECT SOLUTIONS Gerald Leonard PMP, MCTS, ITIL
7250 Parkway Drive • Suite 200 • Hanover, MD 21076-1388 Office: (800) 556-2506 • (443) 561-1315
Fax: (443) 561-0199 Email: [email protected]
Also visit our website at: www.EdwPS.com
©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
28 Portfolio Management and Governance
Revised: August 2012