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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
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
(416) 304-1338 x11
Kevin WalkerTechnology Director
(416) 304-1338 x12
David WrightPresident
(416) 304-1338 x14