www.AgoraInc.com

MPA – GTA August 24, 2006MPA – GTA August 24, 2006

Understanding Portfolio Project ManagementA Case Study for Implementation

Agenda

• Welcome and introductions• Agora Overview• PPM and Portfolio Server Overview• PPM Implementation Case Study• Questions and Answers

What You’ll Learn Today

• An overview of Project Portfolio Management Concepts

• Introduction to Microsoft’s new solution

• Case Study review of a PPM Pilot

• How this can help your organization better align your project portfolio with the objectives of the organization

Agenda

• Welcome and introductions• Agora Overview• PPM and Portfolio Server Overview• PPM Implementation Case Study• Questions and Answers

Agora Consulting Partners

Agora [Gr. 'agora`.] An assembly; hence, the place of assembly,

especially the market place, in an ancient Greek city.

“Where Business Meets Technology”

Agora Consulting Partners• We have been in business for 9 years• We are located in Toronto and Guelph and have

clients throughout Southern Ontario, New York and the UK

Microsoft Gold Certified Partner• Certified in

• .Net Web Application Development• Enterprise Project Management• Advanced Infrastructure

Guiding Principles

• Create a collaborative relationship with the customer

• Deliver every project “On Time/On Budget”

• Maintain excellence through ongoing training and skill renewal

• Act with integrity in all interactions

Agora EPM/PPM Practice• Industry leaders and consultants on Enterprise Project

Management• Services

• Process Assessment and Re-engineering• EPM Design• MS Project Server Implementation• Project Server Customization and Integration

• Current EPM clients include:• Sanofi Pasteur• Apotex• Canadian Institute of Health Information• Royal Bank• SSHA• RIM• BNS• Moneris

Agora EPM Practice - The factors to a successful implementation of MS Project Server

Agora EPM Implementation Methodology

Agenda

• Welcome and introductions• Agora Overview• PPM and Portfolio Server Overview• PPM Implementation Case Study• Questions and Answers

Management Discipline – improves alignment between strategy

planning and business/IT; strengthens governance; improves project

definition, portfolio selection, resource planning and executive reporting

Comprehensive Project Inventory – develops and captures

new, ongoing and carryover work centrally to provide transparency around

how key Business Drivers are supported and how resources ($/FTE) are

dispersed

Transparent & Actionable Decisioning Framework – provides ongoing and actionable portfolio analysis and reports to the

decision-makers to enable improved investment viability and accountability

Workflow With Roles & Responsibilities – provides clearly

defined roles and responsibilities throughout the process and Governance framework

Analytical software toolset – leverages toolsets to capture

project inventory and to ensure optimal, consistent and fact-based portfolio selection and planning decisions by simultaneously evaluating and comparing competing project ideas and resource needs (e.g., what-if, sensitivity analysis, optimization, etc.)

PPM is: a management

discipline that helps organizations achieve

maximum project portfolio value

through the continuous process of

evaluating and managing projects

against key performance metrics

and strategic business objectives.

PPM is: a management

discipline that helps organizations achieve

maximum project portfolio value

through the continuous process of

evaluating and managing projects

against key performance metrics

and strategic business objectives.

“Alignment is the essence of management” Fred Smith, Chairman Federal Express

What is Project Portfolio Management (PPM)?

History of PPM• Not New

• There has always been some form of project portfolio management; roots are in large program development and management

• Around for the last 20 years in PM, but only recently more formalized and linked up and down stream

• Expected significant focus • This will be a significant growth area for the next 5-8 years

• Microsoft acquired UMT Portfolio Manager, Q1 2006. • To be rebranded Q1FY07 as Microsoft Project Portfolio

Server 2006, ...becoming Project Portfolio Server 2007 in December.

• Fully integrates TODAY with the current Microsoft Project 2003 and Microsoft Project Server 2003 tools.

Why Project Portfolios?

• Traditional Project Management Gaps:

• Financial benefit metrics prove insufficient

• More project ideas than resources ($ and people)

• Conflicting, dependent and redundant efforts

• Evolution:• Measure alignment to

business strategy• Approval subject to

resource constraints• Standardize processes

and aggregate visibility

Efficient Frontier

Ab

ilit

y t

o I

den

tify

Bu

sin

ess V

alu

e

Pote

nti

al

(Port

folio

Managem

ent)

Ability to Realize Business Value Potential(Project Management)

100%

100%

0%

Portfolio Management

Project Mgt.

60%Value Realized

(average company today)

40 % Value Lost

Portfolio Management enables organizations to identify and select the investments that will maximize business value

Project Management enables organizations to successfully deliver the selected business value opportunities

Portfolio and Project Management

Successful Organizations Utilize Both Project/Program and Portfolio Management

Portfolio ReportingBenefits Realization

PROJECT MGT.Project PlanningCost ManagementResource ManagementTime ReportingChange ManagementIssue ManagementProject ReportingCollaboration

Portfolio Management answers :

• Have I selected the right project investments?

• Do the project investments align with our strategic objectives?

• Do I have sufficient funds and resources to deliver the selected project investments?

• Are my project investments delivering the forecasted benefits?

Project Management answers :

• Who’s available to staff our new projects?• When will the project really finish and

what will it cost?• What am I supposed to be delivering this

week?

PORTFOLIO MGT.Portfolio GovernanceBusiness Case DevelopmentBenefits ForecastingPrioritization / ValuationPortfolio OptimizationAdv Portfolio AnalyticsCapacity Planning

0% 2% 4% 6% 8% 10% 12% 14%

Media & Entertainment

Chemicals

Food & Beverage

Healthcare

Transportation

Other

Insurance

Technology

Pharmaceutical

Professional Services

Manufacturing

Energy & Utilities

Government

Banking & Fin. Services

Source: February 17, 2006 survey of UMT PPM Webinar ParticipantsSource: February 17, 2006 survey of UMT PPM Webinar Participants

PPM Participant Industries

PPM Selection Today

Source: UMT Poll Responses from 128 Webcast Attendees, February 7Source: UMT Poll Responses from 128 Webcast Attendees, February 7 thth, 2006, 2006

0% 5% 10% 15% 20% 25% 30% 35%

Financial ROI, strategic goals AND optimized given budget

and resource constraints

Evaluated against other projects based on

financial ROI AND strategic goals

Evaluated against other projects based on

strategic goals

Evaluated against other projects based on financial ROI

Selected individually on case by case

basis

Ad hoc or random

How are Projects Currently Selected in Your Organization?

PPM Concerns Today

Source: UMT Poll Responses from 94 Webcast Attendees, February 7Source: UMT Poll Responses from 94 Webcast Attendees, February 7 thth, 2006, 2006

0% 5% 10% 15% 20% 25% 30% 35%

Transparency –Poor visibility and missed opportunities

Alignment – Ineffective process to align investment ideas to

business strategies

Consistent Valuation – Difficult to compare projects because of

inconsistent valuation framework

Monitoring – Lack of reporting/monitoring capabilities

around portfolio execution and post deployment value

realization

Governance –Inconsistent Portfolio Management

governance processes across the organization

Which of the Following is the Biggest Pain Point in Your Organization?

Alignment of Strategy

• Different perspectives with an SBU can conflict• In direction • And in priorities

Job Security Outsourcing

Middle Market Luxury Branding

Platform Renewal Expense Reduction

CEOStrategy Mgt

Office

CFOCIO LOB A Executiv

e

Human Resource

s

COOLOB B Executiv

e

Strategic Consensus• Clear articulation of the enterprise strategy;

• Fosters executive consensus on strategic priorities• Focuses project idea generation

Align Investment to Strategy

• Optimization of project selection promotes strategic priorities

UnalignedUnaligned

OptimizedOptimized

The PPM Organization Strengths

• Centralized goals for alignment• Pooled financial and human resources for scale economy• Standardized processes and metrics for visibility• Leveraged project management expertise/experience• Resource, schedule and scope controls

The issue isThe issue is

GovernanceGovernance

CreateCreate SelectSelect PlanPlan ManageManage

PPMLifecycle Steps:

Gov Phases:

EPM Solution PPM Process & Architecture

Final Approval Baseline

Microsoft EPM Solution:

Portfolio DashboardPortfolio OptimizerPortfolio Builder

CompleteProject Request

Form

1st Review

2nd Review

Resource RequirementsBusiness Case Development

Cost Estimates

Risk Assessment

Phase & Milestone Planning

Strategic Alignment Assessment

2

1

4

5

6

Benefit Forecasts3

Portfolio PrioritizationStrategic Value

Financial Value

Risk Value

Portfolio Optimization

Charting Analysis

Constraint Analysis

Adv Portfolio Analytics

1

2

3

1

2

3

Portfolio Selection

Detailed Planning

Develop Project Plan

Assign Named Resources

Define Inter-dependencies

1

2

3

Project TrackingProject Tracking

Time Reporting

1

3Issues & Risk Mgt

Document Mgt 4

5Team Collaboration 6

Resource Mgt2

Portfolio TrackingChange Request Mgt

Status Reporting

Portfolio Re-Optimization

1

2

3

Completed

Pre-defined workflows ensure the projects are subjected to the appropriate governance controls throughout their lifecycle (i.e. proposal to post-implementation).

Capture all project requests within a central repository and define business case templates to standardize the data collection across the organization.

Capture Project Requests / Ideas

1

Portfolio BuilderCreate: Business Case Development

2

Governance Workflow

Use proven techniques to define and prioritize business drivers

Derive a priority score to evaluate each project request (i.e. Strategic Value,

Financial Value, Risk)

Prioritize Business Drivers

Prioritize Projects

3

Assess the impact of each project request against the prioritized business drivers

Strategic Impact Assessment

Business Drivers

Pro

ject

s

4

5

Analyze the project portfolio before attempting to make funding decisions

6

Cost

L -

Pri

ori

ty -

H

Investment Maps

Portfolio OptimizerSelect: Portfolio Prioritization

7

9

8Utilize sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (i.e. cost, resource

etc.)

‘What If’ Analysis

Efficient Frontier Modeling

Business Alignment Analysis

Benchmark the selected portfolio against the Efficient Frontier

Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities

Portfolio OptimizerSelect: Portfolio Optimization & Advanced Analytics

11

12

Create real-time project and portfolio performance scorecards to ensure Executives and PMO’s gain visibility, insight and control across project portfolios within the organization. Automatically drill down to

the project to view periodic status reports.

Project Status ReportPortfolio Scorecard

10

Portfolio DashboardManage: Track & Measure the Portfolio Performance

Portfolio Reporting

Utilize intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.

# PortfolioStrategic

ValueTotal EBIT

Original Selection 51% $389 M

Optimal Selection 82% $564 M

Final Selection (includes mandated projects) 75% $526 M

2

3

1

Strategic Value Gain = 24%

EBIT Increase = $137 MM

3

1

2

Gaining Control: Portfolio Optimization Led to Gains of $137mm EBIT, 24% Strategic Value for Same Budget

Competitive Strengths

• Pure, top-down PPM functionality, not an add-on

• Analytics / “What If” scenario modeling very strong, can generate multiple Efficient Frontiers

• Business Driver prioritization and consensus building capabilities

• Ability to compare one Executive's opinion to another

• Governance workflow functionality• Easy to use / intuitive

Competitive Strengths

• Built on real, practical approaches to real client needs

• Strong customer references• Bi-directional integration to MS Project

Professional / MS Project Server 2003• Users of Microsoft's Enterprise Project

Management solution that require portfolio analytics should look no further than Microsoft's Project Portfolio Server

• Aggressive Microsoft pricing

Agenda

• Welcome and introductions• Agora Overview• PPM and Portfolio Server Overview• PPM Implementation Case Study• Questions and Answers

Case Study Background• Moneris Background

• Co-owned by Royal Bank and Bank of Montreal• Processes more than 1.8 billion credit and debit

card transactions a year, • Over 350,000 merchant locations across North

America. • Engagement background

• Interested in piloting UMT Tool to improve Project Portfolio Management processes and reporting

• Hired Agora in early July to guide pilot engagement using UMT Portfolio Manager 3.3 (Microsoft PPM solution)

• First UMT Implementation in Canada

Pilot Objectives• Scenario

• Had 4 portfolios organized by Business Objective• Status Reporting was done using a variety tools

and formats• Project Selection was ad hoc based on individual

project merits• Do not use MS Project Server

• Objectives • Optimize project selection within each portfolio to

maximize business value• Improve status reporting to senior management• Optimize for upcoming budget cycle

Pilot Outcomes

• One Caveat: Still in progress• Outcomes to date

• PPM Environment is implemented• Business drivers are defined for the organization

• These drivers are used to help evaluate the relative business value of each proposed project

• Have identified Portfolio Risks• Also used to assess relative project value

• Underway• Profiling projects in the portfolios• Assess portfolio mix based on drivers, risks and

resource constraints

Lessons Learned• This is an implementation of process and

procedure enabled by technology• Never lose sight of the Process and People

Change Management issues• Do not let the technology drive the process

• Identify a strong internal champion• Involve key stakeholders (Senior Management)

from the beginning• Buy-in and People Change Management is very

important• Build a common understanding and vision of

Portfolio Management for your organization• Prepare key stakeholders for a large time

commitment• Keep people focused on the tasks at hand

Lessons Learned• Work to the right level of detail to avoid getting bogged

down • Focus on key business drivers and try and limit the list to 5

to 8 essential measures • Build consensus across business units and management

levels• Identify key information for evaluating projects

• Determine method of capturing this information about each project

• Be consistent with information across projects• Make sure required information is feasible

• Structure the Portfolio Server implementation as a project• Identify the project team• Build and work a project plan

• Communicate, communicate, communicate

Implementation Recommendations• Do a pilot first• Start small – focus on key functionality to your

business first• Document the configuration thoroughly• Train on use of tool and PPM concepts• Manage the People Change Management process

through the implementation

Thank youThank you

Paul EstabrooksVice President, Sales

pestabrooks@agorainc.com

(416) 304-1338 x11

Kevin WalkerTechnology Director

kwalker@agorainc.com

(416) 304-1338 x12

David WrightPresident

dwright@agorainc.com

(416) 304-1338 x14