©UXC Consulting

When Portfolio Governance goes bad –A story of getting back on trackIan Sharpe MAIPM CPPD PMP 1 November 2012

©UXC Consulting

Today’s story

• Getting senior management involvement• Report overload! • Effective governance meetings• IT Portfolio governance - what happens when

the rest of the organisation gets involved.... • The Mega Project - what happens when

more than 2/3 of all effort is one project/program

©UXC Consulting

Getting senior management involvementSometimes we need to disturb people for their own good

©UXC Consulting

Getting senior management involvement Where ‘Organisation X’ was prior to Enterprise Portfolio Management

©UXC Consulting

Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul

H +90 d

E +213 d

F +151 d

G +91 d

B +349 d

C +151 d

D +457 d

Y1 Y2 Y3 Y4

A +546 d

Getting senior management involvementAverage time slippage was +96%, pr nearly 1 year beyond ;’planned’

©UXC Consulting

$12407 B udgeted Spend

$13915 K , Forecasted Spend

$5000

$6000

$7000

$8000

$9000

$10000

$11000

$12000

$13000

$14000

$15000

Jan-05 Apr-05 Ju l-05 O ct-05 Jan-06 Apr-06 Ju l-06

Sp

en

d (

K)

$1508 K over B udget

Orig

ina

l Da

te o

f La

tes

t Co

mp

letio

n

Es

tima

ted

Da

te o

f Co

mp

letio

n

* Not including hidden overspend from inadequately budgeting (over-estimating costs, cross-subsidising and misuse of contingencies)

Getting senior management involvementForecasting a $1.5M capital overspend in 6 months*

©UXC Consulting

Getting senior management involvementStaff time - the hidden portfolio investment cost

•Adding an average of +1 working year ‘beyond planned’, per project

•63 staff typically engaged full-time across the planned project portfolio (PMs, BAs, Program Managers, testers, etc)

• Average base salary cost was $103,000

• The salaried burn rate was $540,750 per month!

• Opportunity missed was capitalisation of Opex

The business stopped calling staff time ‘cost neutral’

©UXC Consulting

Getting senior management involvementThe real forecast slippage in 6 months

•1.5m forecast Capital

•3.2m forecast Opex (previously hidden)

•Likelihood of being able to capitalise some of this, but not until asset is into production (up to a year away in most cases)

•Benefits -‘soft and fully absorbent’•Treated as 4.7m loss off bottom line, until able to

proven otherwise

And then it got complicated ...

©UXC Consulting

Getting senior management involvementBought out by the Americans

©UXC Consulting

Getting senior management involvementAcquisition and the Sarbanes-Oxley (SOX) Act

•As a result of SOX, top management must now individually certify the accuracy of financial information

•SOX increased the independence of the outside auditors who review the accuracy of corporate financial statements, and increased the oversight role of boards of directors

• In addition, penalties for fraudulent financial activity are much more severe ...

©UXC Consulting

Getting senior management involvementAcquisition and the Sarbanes-Oxley (SOX) Act

©UXC Consulting

Reporting overload! Kept it simple, consistent and congruent

•Called out what really matters for decisioning to Executives

• Does this still make sense, strategically?

• Is this still achievable with what we’ll have?

•Worshiped meaningfultraffic lights

• Measure the future, not the past

• Scope, Time, Cost, Risk, Benefits• No subjectivity - simple rules

basis for status

©UXC Consulting

The TruthFortnightly releases prompted effective risk mitigating intervention & performance management

Choose a portfolio section to view:

Choose a Project Summary to view:

Drill down to the source data for the project:

Overview - Making the best use of this report

This report provides a hierarchy of data for each current project (the 'closed project register' can be found under the APO homepage under 'Dashboards'). Each level

can be 'drilled down' to the data supporting it (by using the drop-down arrow choices in the cells below), enabling the journey from 'Traffic light' summation to root

cause(s), quickly and efficiently.

Please ensure Macros are enabled in Excel, when opening this file, otherwise the navigation buttons and certain calculations will not function. The attached pdf file

shows how to easily enable Macros, if they are not already enabled (this is a 'do once' change).

Enabling Macros in Excel

Passport Portfolio

(Includes all projects. Traffic

light driven – key messages)

Project

Summaries

(Project-specific, summary

report)

Source Data

(Detailed data for each

project)

MY PORTFOLIO(Recommended level of

detail for Corporate /

Senior Executive Review

of current projects)

MY PROJECT

(Recommended level of

detail for Project

Sponsors)

(Recommended level of

detail for Project

Manager use)

Drill-down

Drill-down

On Hold' Projects

Projects that are

presently on hold due

to other Business

requirements

Date last

actionedProject name Date Closed Project name

Anticipated

PP0 Date

AIMS Pronto DRP 10-Mar-06 Mastermind TBD

Apollo Server Consolidation 10-Mar-06 Maestro 02-Jun-06

Code Red

Pegasus

Rolecall

Customer Service

Comcare

IPCC

Recently Closed Projects Pending Projects

Forthcoming Projects in the pipeline

Current Projects

Active Passport-

governed projects

On Hold' Projects

Projects that are presently on hold

due to other Business requirements

Portfolio Time Tracking Matrix as at 26-May-06

Choose a portfolio section to

view:

Go to a Project Summary:

Drill down to the source data

for a project:

Project Name Date Project

Commenced

Original Target Date for

completion

Latest Estimated Date

for completion

Total slippage (to

forecast date, in months)

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AIMS Pronto 01-Nov-04 31-Aug-05 31-May-06 9.1

Apollo 01-Jun-03 30-Nov-04 16-Jun-06 18.8

Pegasus 04-Mar-05 30-Sep-05 30-Jun-06 9.1

RoleCall 01-Apr-04 01-Mar-05 29-Sep-06 19.2

Code Red 05-Dec-04 29-Oct-05 15-Aug-06 9.7

Customer Service 13-Mar-06 31-Dec-06 31-Dec-06 0.0

Comcare 15-Mar-06 30-Jun-07 30-Jun-07 0.0

IPCC TBD TBD TBD TBD

Planned Project Duration

Actual slippage to date:

Forecast slippage

ForecastActual

2003 2004 2005 2006

Average Timeline Slippage -

To Date

Average Timeline Slippage -

Forecasted for Completion

78% 90%

Portfolio Spend Chart as at 26-May-06

Choose a portfolio section to

view:

Go to a Project Summary:

Drill down to the source data

for a project:

$275

$2385

$ $

$3111

$2360

$874

$

$

$63

$1923

$3965

$2235

$20

$138

$709

$

$709

$2235

$138

$ $

$4404

$2147

$

$1000

$2000

$3000

$4000

$5000

AIMS Pronto Apollo Pegasus RoleCall Code Red Customer Service Comcare IPCC

(K)

Total Budget

Actual Spent To Date

Estimated cost at Completion

MY PORTFOLIO - EXECUTIVE SUMMARY

Choose a portfolio section to

view:

Go to a Project Summary:

Drill down to the source data for

a project:

APO Commentary Perceived

PerformanceR - Immediate

intervention requ'd,

Y - close monitoring

requ'd

Current

performance

trend

Date

Dashboard last

updated by

PM?

Date of last

PRB

Planned %

Complete

Actual %

Complete

Major and Strategic Issues Tactical Issues Stakeholder Issues

Ownership and Reporting:

Sound ownership is demonstrated by obtaining leadership's agreement to put this project on hold rather than to push ahead with roll-out

in view of anticipated change of business processes. The critical milestone of UAT signoff to which this agreement was conditional has

been achieved.

No further dashboard reporting is planned for until new directions are obtained regarding this project's priority and/or other emerging

business initiatives.

GREEN g

Scope and Progress:

It is a great achievement to finally have obtained UAT sign-off.

Completion of the upload into production will make variable payments viable and readily available functionality for when the business is

ready and stable enough to justify a roll-out.

However, the agreed freeze on the project can be overruled by new directions from leadership at any time in which case the business

continues to be obliged to progress remaining scope and/or report to the PRB.

GREEN k

Issues and Risks:

It is important to complete the final outstanding task (production upload) to ensure the current solution's viability regardless of further

Pronto development.

As no commitment towards a currently proposed business initiative has been made yet, the anticipated change processes (which

justified a 'hold') have not yet eventuated. Should the business not undergo significant change at all, the ongoing 'hold' status will not be

warranted and a revival needs to be initiated to benefit the business from the additional functionality.

YELLOW g

Metrics:

May deliverables are near completion without additional cost or time requirements.

Hopefully, the roll-out of variable payment functionality (including training of staff) will eventually be undertaken (at no or minimal costs)

to deliver the targeted benefits to the business and its customers.

GREEN g

Ownership and Reporting:

Lack of owner-/leadership at state level is evident with stagnating usage levels and insufficient use of state improvement plans as either

no responsible persons are assigned or close out dates are well overdue. This raises questions as to the sustainability of day to day

management by states only without the continued drive of a central project team.

The continued need to drive HHT usage centrally versus the limited value add of an actual project environment will need to be taken into

consideration when deciding on criteria for project closure.

YELLOW m

Scope and Progress:

Final outstanding project tasks including ELS savings analysis and the report on Monitoring software benefits are overdue and need to

be completed.

HHT usage levels are stagnating again.

Preparation of the 5 June PRB meeting has effectively stalled with the absence of the PM.

YELLOW m

Issues and Risks:

Leadership and state ownership issues continue to affect targeted accomplishments.

The risk of potentially adverse developments as the business faces other change/priorities will need to be mitigated by continued

resourcing of a national driver and/or continued inclusion in SGM agendas regardless of whether project closure will be obtained at PRB

or not.

YELLOW g

Metrics:

Following the negative conclusion from assessment of optional monitoring software, the project is not expected to incur any more costs

and tracks favourably against budget.

Besides the principal goal of compliance achievement no more savings are anticipated (pending a final report from the ELS review).

With project closure still being questionable at the 5 June PRB review, further time slippage is anticipated.

GREEN m

Ownership and Reporting:

A PRB scheduled for 5 June may bring this project to closure provided that the PM will be able to adquately prepare for it.

Besides the obvious question around project scope, of particular interest will be data analysis around NOC performance and further

improvement opportunities (including savings as per the Mastermind business case).

The PRB/NOC SC will provide a forum to share realistic views (fact based) with all stakeholders involved (incl. CES, SMC and CPS).

YELLOW g

Scope and Progress:

Project closure in June will require a solid preparation of the PRB5 which will be a challenge given the PM's return from A/L with only 5

days left and many other commitments. YELLOW m

Issues and Risks:

Key risks include

- PM's inability to prepare sufficiently for the PRB leading to yet another 'Redirect' with action items that are likely to be dragged out.

- Pursuit of further improvement potential being mandated as part of Pegasus although it is not part of the original scope

- Error of inflated business case assumptions (overstated synergy/consolidation effects) being repeated in other emerging business

cases including Mastermind

YELLOW g

Metrics:

The delay in closing this project out is merely due to the inability to resource the final effort required for a final PRB presentation.

Apart from the issue around falling short of planned NOC savings by 50% (inflated business case), the project is likely to be closed

below budget (pending the PM's clarifications of the actual spend).

These metrics do however not reflect the detrimental effects suffered by the business (i.e. customer attrition, extra resourcing etc.) from

previous failures during the initial Go-Live period.

YELLOW g

Ownership and Reporting:

A concerted effort is underway to bring RoleCall back on track. With leadership dedicating substantial time to this recovery process it is

important not to let 'politics' get in the way and to 'cut to the chase' at all times.

Regional business ownership has been bumped up substantially with increased involvement/hands-on-management from FD to

application user level. Integration is strengthened with SMEs from invoiving and payroll.

Daily project review meetings are now in place to intervene as needed with weekly SCs providing a forum to escalate WIPRO

performance issues.

YELLOW k

Scope and Progress:

Parallel processing in the SA pilot is still on hold for until the following primary criteria are met:

- Requote bug fixed (nearly complete)

- Auto Time Card change delivered or viable workaround identified

- Proven ability from WIPRO to perform against SLAs to cope with more unexpected challenges in roll-out.

Piloting may be resumed in approx. one week.

RED k

Issues and Risks:

Following weeks of stagnation, there is now first evidence for real issue resolution and effective risk mitigation.

Strong sponsorship by the business' FD and other leaders helped with initiating remedial interventions. Following this recovery, the no

doubt still 'bumpy' road going forward will continue to require close management attention and hence substantial time investments.

WIPRO performance remains the single biggest risk factor which we can only manage effectively with adequate backing from WHQ

YELLOW k

Metrics:

Whilst there are early signs of recovery, the still stagnating piloting (status red) remains and for until solid traction has been regained, no

specific deltas/implications can be estimated yet.

Besides the obvious cost implications from time slippage, extra costs may be added by proceeding with work arounds (e.g. Citrix)

YELLOW g

-

$114 -

PROJECT

AIMS Pronto

Apollo

Pegasus

RoleCall

-

Latest Projection of

annually recurring benefits

($K)

Estimated cost at Completion

of Project ($K)

OVERALL COST

RED$162$138 GREEN NIL

% Time variance from

original schedule

Latest Projection of once

off benefits ($K)

TIME BENEFITSPHASE COST

Estimated cost at Completion

of Phase ($K)

26-May-06

APO PERFORMANCE ASSESSMENT

22-May-06 100%

OWNERSHIP AND

REPORTING

29-Oct-05

RED100%

ISSUES AND RISKSSCOPE AND PROGRESS

None at present. None at present

-90% RED100%

This project is now at a stage where

it can be put on hold status pending

the decision on another emrging

business initiative.

#VALUE!$2235 GREEN NIL -

1. Further software upgrades to be

rolled out to States to further

improve 'functionality'

2. Continued lack of user

acceptance reflected in usage

levels

3. GPRS Network unplanned

downtime - lack of improvement

4. Blackbay Software and Server

support not on a 24/7 basis,

currently contracted to 24/5.

Weekend coverage to be

negotiated during final signoff of

contract.

5. Apollo server setup has not met

UTC Security standards review.

Upon server compliance testing the

server lost connectivity to the

HHTs. The system was immediately

restored and server compliance

testing will be resumed on 22 May

06, with Blackbay on site to assist

with addressing any IP /

connectivity settings.

-103%

100%

1.Financial targets for 2006 will not

be in line with initial project

estimations . Joint SMC/CMS NOC

management with cost reduction

initiatives implemented to mitigate.

2. Resource limitations on project

management continues.

1. ALT Leadership will require a

PRB presentation recommending

closure based on findings around

financial expectations and current

NOC performance to previous pre

consolidation performance.

-130%

1. Ability to gain sufficient

information on original project

outcomes.

1. Contractor user acceptance,

particularly regional areas (SNG)

2. Engagement/ consistent

involvement of SNG representation

into project Steering Committee

3. ALT Leadership require further

improvement in the key usage

metric, with particular focus on

provider use.

4. Completion of pre PRB 5 tasks,

particularly contract sign off

5. State Ops completion of the

metric improvement plan

1.need to ensure that the Business

has taken ongoing ownership of

HHT Usage Levels

2.Blackbay contract review and sign

off yet to be completed, including

after-hours support - Jose on

annual leave

4.Delay in managing poorly

performing providers out of the

operation

95%

$575 REDRED $709 GREEN NIL -TBD -

$1200 GREENRED $4404 RED NIL -TBD -

No issues at this time

-173%78%

1. System performance over the

network will drive the decision for

parallel.

2. Sustenance of parallel will

depend on the application

knowledge within the SA team.

3. Quality of bug fixes received from

Wipro will influence the progress of

the Pilot. Steps put in place to

ensure rigorous testing offshore

before code is released onsite.

73%

75%

1. The Rollout plan needs to be

critically evaluated to ensure the

process for rollout is smooth and

easy with respect to business

resources required for setup and

parallel data entry.

08-May-06

19-May-06

21-Mar-06

30-Jun-05

13-Apr-06

19-May-06

Choose a portfolio section to view:

Choose a Project Summary to view:

Drill down to the source data for the project:

Overview - Making the best use of this report

This report provides a hierarchy of data for each current project (the 'closed project register' can be found under the APO homepage under 'Dashboards'). Each level

can be 'drilled down' to the data supporting it (by using the drop-down arrow choices in the cells below), enabling the journey from 'Traffic light' summation to root

cause(s), quickly and efficiently.

Please ensure Macros are enabled in Excel, when opening this file, otherwise the navigation buttons and certain calculations will not function. The attached pdf file

shows how to easily enable Macros, if they are not already enabled (this is a 'do once' change).

Enabling Macros in Excel

Passport Portfolio

(Includes all projects. Traffic

light driven – key messages)

Project

Summaries

(Project-specific, summary

report)

Source Data

(Detailed data for each

project)

MY PORTFOLIO(Recommended level of

detail for Corporate /

Senior Executive Review

of current projects)

MY PROJECT

(Recommended level of

detail for Project

Sponsors)

(Recommended level of

detail for Project

Manager use)

Drill-down

Drill-down

On Hold' Projects

Projects that are

presently on hold due

to other Business

requirements

Date last

actionedProject name Date Closed Project name

Anticipated

PP0 Date

AIMS Pronto DRP 10-Mar-06 Mastermind TBD

Apollo Server Consolidation 10-Mar-06 Maestro 02-Jun-06

Code Red

Pegasus

Rolecall

Customer Service

Comcare

IPCC

Recently Closed Projects Pending Projects

Forthcoming Projects in the pipeline

Current Projects

Active Passport-

governed projects

On Hold' Projects

Projects that are presently on hold

due to other Business requirements

Portfolio Time Tracking Matrix as at 26-May-06

Choose a portfolio section to

view:

Go to a Project Summary:

Drill down to the source data

for a project:

Project Name Date Project

Commenced

Original Target Date for

completion

Latest Estimated Date

for completion

Total slippage (to

forecast date, in months)

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

AIMS Pronto 01-Nov-04 31-Aug-05 31-May-06 9.1

Apollo 01-Jun-03 30-Nov-04 16-Jun-06 18.8

Pegasus 04-Mar-05 30-Sep-05 30-Jun-06 9.1

RoleCall 01-Apr-04 01-Mar-05 29-Sep-06 19.2

Code Red 05-Dec-04 29-Oct-05 15-Aug-06 9.7

Customer Service 13-Mar-06 31-Dec-06 31-Dec-06 0.0

Comcare 15-Mar-06 30-Jun-07 30-Jun-07 0.0

IPCC TBD TBD TBD TBD

Planned Project Duration

Actual slippage to date:

Forecast slippage

ForecastActual

2003 2004 2005 2006

Average Timeline Slippage -

To Date

Average Timeline Slippage -

Forecasted for Completion

78% 90%

Portfolio Spend Chart as at 26-May-06

Choose a portfolio section to

view:

Go to a Project Summary:

Drill down to the source data

for a project:

$275

$2385

$ $

$3111

$2360

$874

$

$

$63

$1923

$3965

$2235

$20

$138

$709

$

$709

$2235

$138

$ $

$4404

$2147

$

$1000

$2000

$3000

$4000

$5000

AIMS Pronto Apollo Pegasus RoleCall Code Red Customer Service Comcare IPCC

(K)

Total Budget

Actual Spent To Date

Estimated cost at Completion

MY PORTFOLIO - EXECUTIVE SUMMARY

Choose a portfolio section to

view:

Go to a Project Summary:

Drill down to the source data for

a project:

APO Commentary Perceived

PerformanceR - Immediate

intervention requ'd,

Y - close monitoring

requ'd

Current

performance

trend

Date

Dashboard last

updated by

PM?

Date of last

PRB

Planned %

Complete

Actual %

Complete

Major and Strategic Issues Tactical Issues Stakeholder Issues

Ownership and Reporting:

Sound ownership is demonstrated by obtaining leadership's agreement to put this project on hold rather than to push ahead with roll-out

in view of anticipated change of business processes. The critical milestone of UAT signoff to which this agreement was conditional has

been achieved.

No further dashboard reporting is planned for until new directions are obtained regarding this project's priority and/or other emerging

business initiatives.

GREEN g

Scope and Progress:

It is a great achievement to finally have obtained UAT sign-off.

Completion of the upload into production will make variable payments viable and readily available functionality for when the business is

ready and stable enough to justify a roll-out.

However, the agreed freeze on the project can be overruled by new directions from leadership at any time in which case the business

continues to be obliged to progress remaining scope and/or report to the PRB.

GREEN k

Issues and Risks:

It is important to complete the final outstanding task (production upload) to ensure the current solution's viability regardless of further

Pronto development.

As no commitment towards a currently proposed business initiative has been made yet, the anticipated change processes (which

justified a 'hold') have not yet eventuated. Should the business not undergo significant change at all, the ongoing 'hold' status will not be

warranted and a revival needs to be initiated to benefit the business from the additional functionality.

YELLOW g

Metrics:

May deliverables are near completion without additional cost or time requirements.

Hopefully, the roll-out of variable payment functionality (including training of staff) will eventually be undertaken (at no or minimal costs)

to deliver the targeted benefits to the business and its customers.

GREEN g

Ownership and Reporting:

Lack of owner-/leadership at state level is evident with stagnating usage levels and insufficient use of state improvement plans as either

no responsible persons are assigned or close out dates are well overdue. This raises questions as to the sustainability of day to day

management by states only without the continued drive of a central project team.

The continued need to drive HHT usage centrally versus the limited value add of an actual project environment will need to be taken into

consideration when deciding on criteria for project closure.

YELLOW m

Scope and Progress:

Final outstanding project tasks including ELS savings analysis and the report on Monitoring software benefits are overdue and need to

be completed.

HHT usage levels are stagnating again.

Preparation of the 5 June PRB meeting has effectively stalled with the absence of the PM.

YELLOW m

Issues and Risks:

Leadership and state ownership issues continue to affect targeted accomplishments.

The risk of potentially adverse developments as the business faces other change/priorities will need to be mitigated by continued

resourcing of a national driver and/or continued inclusion in SGM agendas regardless of whether project closure will be obtained at PRB

or not.

YELLOW g

Metrics:

Following the negative conclusion from assessment of optional monitoring software, the project is not expected to incur any more costs

and tracks favourably against budget.

Besides the principal goal of compliance achievement no more savings are anticipated (pending a final report from the ELS review).

With project closure still being questionable at the 5 June PRB review, further time slippage is anticipated.

GREEN m

Ownership and Reporting:

A PRB scheduled for 5 June may bring this project to closure provided that the PM will be able to adquately prepare for it.

Besides the obvious question around project scope, of particular interest will be data analysis around NOC performance and further

improvement opportunities (including savings as per the Mastermind business case).

The PRB/NOC SC will provide a forum to share realistic views (fact based) with all stakeholders involved (incl. CES, SMC and CPS).

YELLOW g

Scope and Progress:

Project closure in June will require a solid preparation of the PRB5 which will be a challenge given the PM's return from A/L with only 5

days left and many other commitments. YELLOW m

Issues and Risks:

Key risks include

- PM's inability to prepare sufficiently for the PRB leading to yet another 'Redirect' with action items that are likely to be dragged out.

- Pursuit of further improvement potential being mandated as part of Pegasus although it is not part of the original scope

- Error of inflated business case assumptions (overstated synergy/consolidation effects) being repeated in other emerging business

cases including Mastermind

YELLOW g

Metrics:

The delay in closing this project out is merely due to the inability to resource the final effort required for a final PRB presentation.

Apart from the issue around falling short of planned NOC savings by 50% (inflated business case), the project is likely to be closed

below budget (pending the PM's clarifications of the actual spend).

These metrics do however not reflect the detrimental effects suffered by the business (i.e. customer attrition, extra resourcing etc.) from

previous failures during the initial Go-Live period.

YELLOW g

Ownership and Reporting:

A concerted effort is underway to bring RoleCall back on track. With leadership dedicating substantial time to this recovery process it is

important not to let 'politics' get in the way and to 'cut to the chase' at all times.

Regional business ownership has been bumped up substantially with increased involvement/hands-on-management from FD to

application user level. Integration is strengthened with SMEs from invoiving and payroll.

Daily project review meetings are now in place to intervene as needed with weekly SCs providing a forum to escalate WIPRO

performance issues.

YELLOW k

Scope and Progress:

Parallel processing in the SA pilot is still on hold for until the following primary criteria are met:

- Requote bug fixed (nearly complete)

- Auto Time Card change delivered or viable workaround identified

- Proven ability from WIPRO to perform against SLAs to cope with more unexpected challenges in roll-out.

Piloting may be resumed in approx. one week.

RED k

Issues and Risks:

Following weeks of stagnation, there is now first evidence for real issue resolution and effective risk mitigation.

Strong sponsorship by the business' FD and other leaders helped with initiating remedial interventions. Following this recovery, the no

doubt still 'bumpy' road going forward will continue to require close management attention and hence substantial time investments.

WIPRO performance remains the single biggest risk factor which we can only manage effectively with adequate backing from WHQ

YELLOW k

Metrics:

Whilst there are early signs of recovery, the still stagnating piloting (status red) remains and for until solid traction has been regained, no

specific deltas/implications can be estimated yet.

Besides the obvious cost implications from time slippage, extra costs may be added by proceeding with work arounds (e.g. Citrix)

YELLOW g

-

$114 -

PROJECT

AIMS Pronto

Apollo

Pegasus

RoleCall

-

Latest Projection of

annually recurring benefits

($K)

Estimated cost at Completion

of Project ($K)

OVERALL COST

RED$162$138 GREEN NIL

% Time variance from

original schedule

Latest Projection of once

off benefits ($K)

TIME BENEFITSPHASE COST

Estimated cost at Completion

of Phase ($K)

26-May-06

APO PERFORMANCE ASSESSMENT

22-May-06 100%

OWNERSHIP AND

REPORTING

29-Oct-05

RED100%

ISSUES AND RISKSSCOPE AND PROGRESS

None at present. None at present

-90% RED100%

This project is now at a stage where

it can be put on hold status pending

the decision on another emrging

business initiative.

#VALUE!$2235 GREEN NIL -

1. Further software upgrades to be

rolled out to States to further

improve 'functionality'

2. Continued lack of user

acceptance reflected in usage

levels

3. GPRS Network unplanned

downtime - lack of improvement

4. Blackbay Software and Server

support not on a 24/7 basis,

currently contracted to 24/5.

Weekend coverage to be

negotiated during final signoff of

contract.

5. Apollo server setup has not met

UTC Security standards review.

Upon server compliance testing the

server lost connectivity to the

HHTs. The system was immediately

restored and server compliance

testing will be resumed on 22 May

06, with Blackbay on site to assist

with addressing any IP /

connectivity settings.

-103%

100%

1.Financial targets for 2006 will not

be in line with initial project

estimations . Joint SMC/CMS NOC

management with cost reduction

initiatives implemented to mitigate.

2. Resource limitations on project

management continues.

1. ALT Leadership will require a

PRB presentation recommending

closure based on findings around

financial expectations and current

NOC performance to previous pre

consolidation performance.

-130%

1. Ability to gain sufficient

information on original project

outcomes.

1. Contractor user acceptance,

particularly regional areas (SNG)

2. Engagement/ consistent

involvement of SNG representation

into project Steering Committee

3. ALT Leadership require further

improvement in the key usage

metric, with particular focus on

provider use.

4. Completion of pre PRB 5 tasks,

particularly contract sign off

5. State Ops completion of the

metric improvement plan

1.need to ensure that the Business

has taken ongoing ownership of

HHT Usage Levels

2.Blackbay contract review and sign

off yet to be completed, including

after-hours support - Jose on

annual leave

4.Delay in managing poorly

performing providers out of the

operation

95%

$575 REDRED $709 GREEN NIL -TBD -

$1200 GREENRED $4404 RED NIL -TBD -

No issues at this time

-173%78%

1. System performance over the

network will drive the decision for

parallel.

2. Sustenance of parallel will

depend on the application

knowledge within the SA team.

3. Quality of bug fixes received from

Wipro will influence the progress of

the Pilot. Steps put in place to

ensure rigorous testing offshore

before code is released onsite.

73%

75%

1. The Rollout plan needs to be

critically evaluated to ensure the

process for rollout is smooth and

easy with respect to business

resources required for setup and

parallel data entry.

08-May-06

19-May-06

21-Mar-06

30-Jun-05

13-Apr-06

19-May-06

©UXC Consulting

Value achieved 6 months in... Fortnightly cost slippage down from $31K to $0.4K

Actual Ǿ budget overruns per fortnight: $0.4K

Apollo

-$31

Apollo

$72

Code Red

$87

Pegasus

-$165

Quickcomm

-$23

RoleCall

$90

$63

$94

$126

$189

$220

$252

$283

$315

$346

$105

$378

$409

$157

$72

$30$30$49

$136 $136

$195

$136

$105

-$200

-$100

$

$100

$200

$300

$400

$500

DB 2 DB 3 DB 4 DB 5 DB 6 DB 7 DB 8 DB 9 DB 10 DB 11 DB 12 DB 13

Agreggate effect of Pre-APO

cost performance trend

Aggregate effect

of actual cost

slippage to date

since handover

Fortnightly Dashboard Releases, showing those projects suffered cost over/underruns

Cost overruns as per increased Estimates for Cost at Completion

Pre-APO Ǿ budget overruns per fortnight: $31K

ENDQ1YE 2005

©UXC Consulting

Actual Ǿ schedule overruns per fortnight: 4.2 days

Apollo, -11

Apollo, 47

Apollo, 16

Apollo, 15 Apollo, 30

Code Red, 14Code Red, 89

Code Red, 65 Pegasus, 32

Pegasus, 60

RoleCall, 59

129

194

258

387

452

516

581

645

710

0 0

89

169185 185

247

306

427 427

323

839

774

89

391

-100

0

100

200

300

400

500

600

700

800

900

DB 2 DB 3 DB 4 DB 5 DB 6 DB 7 DB 8 DB 9 DB 10 DB 11 DB 12 DB 13

Agreggate effect of Pre-APO

schedule performance trend

Aggregate effect

of actual schedule

slippage to date

since handover

Fortnightly Dashboard Releases, showing those projects suffered schedule over/underruns

Schedule overruns as per increased Estimated Date at Completion

Pre-APO Ǿ schedule overruns per fortnight: 64.5 days

ENDQ1YE 2005

Pegasus, -25

Value achieved 6 months in...Fortnightly time slippage down from 64.5 days to 4.2 days

©UXC Consulting

EBIT / P&L

Effect

Budget compliance*3% less spend (within or

above budget) -$252K

OR

Benefits/Savings

performance*Actual recurring savings

being 5% greater

-$252K

OR

Time performance*Average 11 days less

time slippage in project

delivery (recent Ø=225

days)

-$252K

OR

Time performance*5 weeks less time in

business case

preparation

-$252K

Portfolio Cost EffectivenessEffective portfolio governance can have a high return

Delivering Value

* Portfolio with $15M budget (50%

CAPEX), ØIRR 33% and approx.

$252K p.a. Portfolio management

costs PA

SG&A

Effect

Actual contributions

by BU to fund the

APO: $252 K

Break-even point ($0 P&L

effect) only required ONE of

the following, modest

achievements

BU % of

cost

AU$ PA

(K)

A 2.90% $7

B 18.80% $47

C 5.90% $15

D 15.00% $38

E 4.20% $11

F 29.00% $73

G 22.70% $57

H 1.50% $4

?

300% ROI on annual investment already achieved, 6 months in

©UXC Consulting

Governance meetingsDespite Portfolio rationalisation, Governance behaviours were still broken

•Power games were normal

•No trust

•New projects and programs were kicked off, without consultation between Executives ( Portfolio analysis caught and shut down a duplicate asset management system and saved $7m)

•Some real behaviours observed in meetings...

©UXC Consulting

I find your lack of faith disturbing

©UXC Consulting

Shoot-outs

©UXC Consulting

Tantrums

©UXC Consulting

Executive Tantrums

Governance meetingsResource hoarding was the norm

An Executive ‘of very little brain’ cost the company $3m of benefit to preserve a $50k bonus, by refusing to allow their staff to be seconded for a project that helped another Executive

©UXC Consulting

… Working together without friction or unnecessary stress

Governance meetingsWhat they really wanted to experience...

©UXC Consulting

Governance meetingsWhat it was really like for them

… I asked them

‘Do you want more of this?’

©UXC Consulting

Fixing itWorked with the Executive team on several fronts

• Realigned vision, strategy and investment

• Aligned their KPIs to organisational level goals, and remove war-causingKPIs

• Implemented a performance management system that tied performance of the portfolio to a significant component of the Executive bonus

• Measured the effectiveness of collaborative behaviours anonymously, every three months

• Relocated all PM resources to the Portfolio Office’s control (reported directly to CEO)

And then it became even more complicated ...

©UXC Consulting

The Mega Project Global outsourcing opportunity

US purchase accounting window was a major chance to transform and claim most back ...

©UXC Consulting

The Mega Project Global outsourcing program becomes ‘the game’

• Global outsourcing program

• During SOX implementation!

• Australia picked to ‘go first’ (largest operations globally)

• Initial 3 year ‘consolidate, fix, outsource’ program

• Becomes 18 month ‘consolidate via outsource, fix while lifting’ program

• Initially seen as a major distraction in Portfolio (eats 2/3 of the resources, top Executive priority)

• Executive reframing presents this as a chance to fix long-term frustrations

Suddenly, the Executive behaviour changed...

©UXC Consulting

The Mega Project Major Lolly-Scramble for a slice of the program budget to ‘fix their woes’!

©UXC Consulting

The Mega Project Restoring sanity

• You must control the money and resource time, to choke off bad ideas

• ‘Game keeper’ program office established to prevent poaching

• Executive Program board established

• Governance meetings at this level tracked progression towards value and future business state, not just ‘spend’

• Supported by Change Configuration Board to keep investment safe and promote ‘governance of ICT’, not ‘ICT Governance’

• Additional tangible benefits sought by changing scope required phased operational budget reductions factoring the promised gains

An orderly queue was restored

©UXC Consulting

A much easier journeyRestoring sanity via VAL-IT – Are we doing the right things?

©UXC Consulting

A much easier journeyMaintaining sanity via COBIT5 – Are we doing them in the right way?

©UXC Consulting

Closure

Never doubt that a small group of thoughtful, committed people can change a Business.

Indeed, it’s the only thing that ever has.

Margaret Mead, Anthropologist

©UXC Consulting

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