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Strict quantification of value provided by some software solution is very difficult. That’s especially true in the case of software which is supposed to increase value of project management discipline whose benefits are itself difficult to quantify. Difficulty to quantify doesn’t imply that such value doesn’t exist. It only means that we need to add an extra effort to recognize it. The purpose of this presentation is to make that extra effort and, by examining different attributes like; industry, character and size of projects, maturity of the organization – recognize patterns that lead to value realization. The key Project Server capabilities will be discussed in context of how they provide value in specific usage scenarios. As always, realized value have to be contrasted with required investment so we will estimate the cost of EPM implementation in on-premise and cloud model. The target audience for the presentation are all of you who believe that projects could and should be better managed in your organizations, and you have a vote on decision on using software for such an improvement.
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SHAREPOINT AND PROJECT CONFERENCE ADRIATICS 2013
ZAGREB, NOVEMBER 27-28 2013
Project Server – Who Can Benefit From It And How?IGOR SLIŠKOVIĆ, PROTERON CONSULTING
sponsors
About The Presentation - Thesis• EPM solution can show positive ROI• The source of value will differ from organization to
organization. • Yet there are clear conditions which, if satisfied, ensure
EPM system value realization. • We would like to discuss those.
The Scale of ROI Approaches
This presentationCalculate but with sanity
check
EPM Improves employee
productivity and projects success
rate
EPM provides ROI of 275% with
payback period of 13 months
assuming Level 2 PM maturity of the
organization, …
„Excel” ROI approach
• Logic• We don’t need to find exact value of improvement. It’s enough
to find credible/believable assumptions• Exact math we do with assumptions serves the purpose of
giving the reader necessary confidence
List all the areas of
improvement
Estimate current
effort, cost and risk
Estimate potential
improvement
• Guess• Survey
Calculate benefits
• ROI• Payback
period
Areas Of Improvements
15%
10%
10%
10%
25%
Improvements Quantification
Number of Project users 30
Organization size 1000
Average annual cost per employee
40.000 $
Costs
PRICE YEARLY COST (3 year horizon)
LICENSES 14.000 USD
Project Online 33 USD per user per month
Project Online With Project Pro
58 USD per user per month
SERVICES 12.000 USD
Implementation Cost 20k USD (one time)
Support 5k USD per year
TOTAL 26.000 USD
Investment in internal change management
??Total Number of Project users
30
Number of Project Pro users 5
Challenge• Company with 30 PMs and delivery resources would
deliver 2-3M USD worth of projects a year• Cost for tool and training is 25k USD
Would you bet your own 25k USD in exchange for savings that tool might
produce?
Source Of Improvements
Aligning Projects With
Resources Capacity
Benefit
Synchronizing Projects With
Highest ImpactAligning
Projects To Strategic Goals
Providing Estimation
Tools And Best Practice
Methodologies Assigning The Right Skills To
The Right Projects
Providing Workflow And Visibility Into
Project Performance Capturing
Planned And Active Projects
Providing Portfolio
Reporting And Analyses
Providing Automated
Report Generation
And Analysis
Feature
Team Planner View
Portfolio Analyses
Resource Plan
Resource Levelling
Demand Management
with Templates and Workflow
Centralized Resources with Role and Skills
Rich Reporting
Centralized Projects
Simple and Process Driven
Status and Time Reporting
Project Pro Schedule
Development!
WOULD THIS HELP?
Black Swan• The black swan theory or theory of black swan events is
a metaphor that describes an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight.• The theory was developed by Nassim Nicholas Taleb
We don’t want to exhaust ourselves in saving worthless minutes while missing major opportunities or risks!
Source: Wikipedia
What Does A Manager Do?• A manager makes decisions and sees them through!• What do you need to make good decisions?• Experience• Intuition• Guts• Data• Luck
The main value of EPM system is: • Fresh, accurate and relevant data that can be used to make short
term steering• Historical data that shows trends (or lack of those)In other words – give a tool to a few the most expensive resources instead of many with small impact.
Influence Of Company Type
Services Company• Projects are delivered for external customer project
have a clear price, cost and profitability attached.• Demand for resources comes from • External billable projects• External non-billable projects and engagements• Internal projects
• The ultimate goal is to have the supply of projects that exactly matches the full capacity Resource Management is the most important capability• Typically, you don’t skip the sale because resources are
overloaded portfolio selection is not that important in it’s basic form
Want to have a tight control of those by many dimensions
You don’t waist time in questioning the value of PM tools for Services
company. It’s there! Use it!
Idemo delat!
Level of usage in Microsoft partner companies (with licenses on hand) shows that, considering implementation, maintenance and organizational change perspectives – EPM is worth using
Non Services Company• Demand for projects and resources comes from business units• Constant change in demand and project priorities is a business
fact• Agendas other than company interest might drive the project
selection and priorities• Effects of poor project management are not visible in a short
term• Project resources worth managing are mostly located in IT (at
least in Financial and Telecom sector) • There is no implementation if resource department’s management
doesn’t support it
• Business units are not interested in resource management! Tracking costs, collaboration and transparency are typically their main drivers.
The Discipline• The same question asked by every customer – “How can we make sure
employees will feed the system?”• Organization that doesn’t have a lever to make employees do their job
is not likely to have potential of making changes based on EPM system so it cannot benefit from it• Team member’s responsibility is not only to do the job but also to
provide necessary data for others to do theirs• What can be done to address the “discipline issue”?
• Compliance reporting• Data quality role• Employee’s individual targets• Make the system as usable as possible (“are you telling me that there is an
issue with entering 10 numbers per week in your Outlook calendar?”)• Project assistant role• Make EPM system data the source of other system/process dependency (e.g.
invoicing)
Scope Of Implementation
• Must cover all capabilities with appropriate depth• It’s impossible to manage resources
without a level of certainty in demand • For managing the demand there must
be a filter with criteria and decision• It’s impossible to manage resource
supply without planning and tracking work done
• It’s impossible to track status without planning and tracking work done
• …
Implementation Requirements
Provide Project Status
Manage Resources
Manage Demand Manage Supply
Standardize planning Standardize Status Reporting
Select Based on objective criteria and capacity Dilligent Planning and Tracking
The worst possible approach is: “Let’s try it on one project”
The Planning And Tracking Process• Proficiency in developing and maintaining Project Schedule
is essential yet typically very rare• It’s difficult to get “experienced” project manager for a basic MS
Project training It’s the single most important “soft” implementation blocker
• If you have PS-skilful project managers agile implementation possible (finally found opportunity to use that popular word!)• Years of experience in managing individual projects provides
very little competence in organizing EPM environment it will not happen by itself and external help is necessary
• Pleas visit 10:15 session tomorrow “It’s Not A Bug. It’s A Feature” for discussion on possible adoption blockers
questions?
thank you.
SHAREPOINT AND PROJECT CONFERENCE ADRIATICS 2013
ZAGREB, NOVEMBER 27-28 2013