PPM and Governance Workshop

(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…






3

What was described


What was understood

Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com



What was designed




4

What was developed


What was initially

installed





What Operations

FINALLY Delivered




5

What the Customer was

charged for


…and how the project

was supported…





When it was Delivered




6

Now take that approach and multiply it by 10, 100, 1000…

Add in no Enterprise Management…

No Portfolio Management…

No Governance and…






7

You get insurmountable problems


Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Portfolio Management and Governance



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.




What? Why? How? Now

What?








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.






What? Why? How? Now

What?




11 Portfolio Management and Governance




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


Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 12 Portfolio Management and Governance



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.



http://www.pwc.com/en_US/us/public-sector/assets/pwc-global-

project-management-report-2012.pdf



http://www.pwc.com/en_US/us/public-sector/assets/pwc-global-project-management-report-2012.pdf














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





Enterprise Debt



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




Technical Debt



Increase cost of maintenance

Duplicate organizational functions

Bad business processes

Cost of rework

Cost of poor execution

Cost of poor data quality




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





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



Gartner Predicts 2012: Four Forces Combine to Transform the IT Landscape



EDWARDS PROJECT SOLUTIONS ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.


What? Why? How? Now

What?

How do you address these issues and implement a Portfolio Management and Governance capability?




How Do You Move Forward?



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




Governance Framework: Finding the Right Balance



Avoid Burdensome process

Drive engagement

Ensure appropriate ownership

Appropriate forums for communications and engagement

Right Data Right People

Right Decisions




Create A Centralized Repository



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




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





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

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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



What Others Are Achieving




What? Why? How? Now

What?



Case Study and Call to Action?




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




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





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