Leveraging MS Project in an Integrated Portfolio Management Solution

MSPUG- Phoenix Chapter

Agenda

• Pacific Edge Background

• Portfolio Management Overview

• Leveraging MS Project in PE Portfolio Management

• Customer Examples

• EPM Processes – Enterprise interdependencies

• Product Demonstration

• Visor Drawing

Corporate History

• Founded in 1998

• Privately Held Company

• Headquartered in Bellevue, WA

• Numerous Industry Accolades

• Early Pioneer of Project

Portfolio Management Software

• An Industry Leader of

Enterprise Portfolio

Management Software

Customers

Portfolio Management Vs Project Management

Project Portfolio Management

Are we doing the RIGHT projects

Do we have the RIGHT resources

Are we spending in the RIGHT areas

Project Management

Are we doing projects well?

Are projects on time and budget?

Do resources know what they are doing?

Strategic Tactical

Portfolio Management Definition

PORTFOLIO MANAGEMENT is the continuous process of selecting, prioritizing and managing the optimum mix of corporate investment in products, R&D, projects, hardware/software, assets, operations, etc. to deliver maximum business value.

In this decision making process, management can focus their limited resources on investments that are achievable and strategically aligned with business goals.

The resulting portfolio delivers a balance of what is possible and what is needed.

Business Drivers for Portfolio Management

Agility in a Rapidly Changing Marketplace

• Monitor business performance

• React to sudden environmental shocks

• Multiple planning cycles

• Risk mitigation

• Decrease organizational reaction time

“It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.”– Charles Darwin

Manage Complexity

• Reduce 75% failure rate for complex projects through better selection

• Improve visibility of investments across organizations

• Reduce costs by consolidating legacy and duplicate investments

Business Drivers for Portfolio Management

Business Drivers for Portfolio Management

Optimize Resources

• Remove high cost, low performance, and off-strategy investments

• Re-allocate, re-balance, and re-sequence portfolio of investments for maximum effectiveness

More than 40% pared back budgets at some point in 2002.– Morgan Stanley CIO Survey

Business Benefits of Portfolio Management

Reduce costs by identifying low value, non-strategic, redundant, or poorly performing assets and projects.

Increase return on enterprise portfolios through improved selection, prioritization, sequencing, and governance of corporate investments.

Optimize the use of critical resources by balancing risk and focusing on the most valuable investments.

Achieve competitive advantage by reducing the time required to realign the enterprise investment portfolio with rapidly changing business needs.

How are Enterprises doing Portfolio Management Today?

Spreadsheets Presentations E-Mails Planning Meetings Microsoft Project Accounting Apps Custom DB Apps Lotus Notes/Groupware

MS Project in Pacific Edge Portfolio Management

Top down project planning to ascertain value and risk

Build the tactical plan that executes the project Provide estimate dates, actual dates and

assignments As project progresses, updated information is

provided back to Project Office Portfolio Up to date information regarding execution is

visible in Portfolio Edge

Project Office 4.0

Top down planning: create a project without defining all of the work items.

Centralized Document Management: Provides a central repository for managing project documents with check-in/out and versioning.

Project Team Collaboration: Capture lists of information related to a project, like risks, issues, changes, or requirements and enable project teams to collaborate on them.

Project Office 4.0

My Projects: Enables project managers and projects teams to access the project profile, documents, logs, links, and project summaries rolled up from Microsoft Project.

Centralized Document Management: Provides a central repository for managing project documents with check-in/out and versioning.

Project Team Collaboration: Capture lists of information related to a project, like risks, issues, changes, or requirements and enable project teams to collaborate on them.

Project Office 4.0 Connectors

Together with the Project Office Connector, Project Office 4.0 links detailed project planning and portfolio management for a complete closed-loop solution.

XML-based Data Exchange: New Project Office Connector allows project managers to manage task plans with MS Project 98, 2000, and 2002.

Summary Level Publishing: Publish task summary information to Project Office while managing the details offline.

Assign Pool Resources: Assign resources to tasks and synchronize project resources with the Project Office resource pool.

- Pacific Edge

Portfolio Edge provides instant, high-level visibility into the program and project information managed by the Pacific Edge’s Project Office Suite

100% web-based, zero-client architecture

User-maintained, personalized dashboard

Chart history

On-demand and scheduled publishing

Custom charts and indicators.

Multiple chart formats

Portfolio Management Results

$4 million savings within 18 months

Reduced IT resources by 20% while maintaining customer satisfaction

Eliminated or consolidated off-strategy or duplicate projects

$9 million savings within 18 months

Mercy Health Results

Situation Project users, but many areas using spreadsheets,

white boards etc Lack of strategic focus Poor project inventory methods Constrained resources Inconsistent reporting

Alignment Projects are strategically aligned with organizational

goals. Enhanced project approval and prioritization process

for management. Improved resource allocation. Increased customer satisfaction.

Value $4 million savings after 18 months. Reduced IT resources by 20%.

Schlumberger Results

Situation

MS Project Users

Poor strategic alignment

Millions wasted on duplicate investments

Alignment Alignment of investments to strategy

visible to management Resource utilization and alignment

through better time capture Eliminated or consolidated off-

strategy or duplicate activities

Value $9 million savings after 18 months

Step 1Step 1

ValueValue

Steps to Business Value

Step 4Step 4

Step 3Step 3

Step 2Step 2

Portfolio Balancing Investment lifecycle Cost/ROI Investment Risk and Value Resource capacity/demand

Portfolio Clean-up Data Clean-up Redundant Programs/Investments Off Strategy Investments Low value/high risk investments

Portfolio Alignment / Pipeline Management Proposals Scoring and Ranking Phase Gate / Approval Processing

45 Days 90 Days 9-18 Months

Portfolio Inventory Configuration Data Capture Visibility & Communication

2%-5% Return

25% Return

Enterprise Portfolio Management Process

Enterprise Portfolio ManagementMay 2003