Rise and Fall of Project PortfolioManagement. Triumph & Collapse:a case studySession: EM13CAS01Luca Romano, PMPNexen Busin...
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2012 Permission is granted to PMI f...
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2012 Permission is granted to PMI f...
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2012 Permission is granted to PMI f...
5In the next hour…1. We’ll do an overview on Project PortfolioManagement (PPM) to introduce the matter2. Some PPM implemen...
6Some Conclusions1. The aim of a PPM is to finish moreprojects doing less (right) projects2. You need a Top Management inv...
7Project Portfolio Management“A portfolio is a componentcollection of programs, projects, oroperations managed as a groupt...
8Project Portfolio Management“If you want to find out where yourcompany is going to be three to five yearsfrom now, don’t ...
9Project Portfolio Management
10Project Portfolio ManagementStrategy can be defined as:"the direction and scope of an organization(…) which achieves adv...
11ReviewStrategic PlanningCorporatePlanStrategicDirectionProject Portfolio ManagementFore-castsMarketOppor-tunitiesBU Stra...
12Project Portfolio Management
13Project Portfolio ManagementX
14Project Portfolio ManagementX
15Project Portfolio ManagementStrategic PlanningPortfolio Management
16Project Portfolio ManagementWere Strategic Planning IS in placeProject Portfolio Management creates atighter connection ...
17Project Portfolio ManagementWere Strategic Planning IS NOT in placeProject Portfolio Management showswhere the company i...
18A simplified path toward PPMimplementation1. The optimal process2. The normal process3. The bottom-up process
19A simplified path toward PPMimplementationInspired by Archer and GhasemzadehThe optimal processOpportunities&StrategicDi...
20A simplified path toward PPMimplementationOpportunities&StrategicDirection1. We have a Strategic Direction thatshows the...
21A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposals2. We can ...
22A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection ...
23A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection ...
24A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection ...
25A simplified path toward PPMimplementationThe optimal process:Very beneficialprojects could be veryriskyLow-risk project...
26A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection ...
27A simplified path toward PPMimplementation1. The optimal process2. The normal process3. The bottom-up process
28A simplified path toward PPMimplementationThe normal processOpportunities&StrategicDirectionSelection MethodScreeningPro...
29A simplified path toward PPMimplementationThe normal processOpportunities&StrategicDirectionSelection MethodScreeningPro...
30A simplified path toward PPMimplementation1. The optimal process2. The normal process3. The bottom-up process
31We don’t have a StrategicDirection to refer to.It might be that there’s NO Strategic planningprocess in place or maybe…....
32A simplified path toward PPMimplementationThe “bottom-up” processScreeningProjectsdevelopmentPortfolioSelectionandAdjust...
33A simplified path toward PPMimplementationThe “bottom-up” processScreeningProjectsdevelopmentPortfolioSelectionandAdjust...
34The Case StudyAll happened during Christmas 2010.We were struggling to find a good reason tokeep our Client satisfied (B...
35The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
36The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
37The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
38The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
39The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
40The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
41The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
42The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
43January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December201...
44The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
45The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
46The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
47The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
48The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
49The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
50The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
51Success!
52The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
53The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
54The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
55The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
56We worked 16 daysInterviewed 8 DirectorsCollected 104 projectsProducing several deliverables..
57The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
58The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
59The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
60The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
61The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
62The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
63The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
64The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
65The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
66The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
67The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
68The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
69The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
70The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011Jan...
71The Case StudyThe PPMbottom-upideaThe PPM PilotThe PPM ITdepartmentThe PPMwholecompanyThe Rept &Ctrl SystemUn-experience...
72ConclusionsDuring the first PPM implementation, therewill be a lot of enthusiasmThis enthusiasm has to be exploited as i...
73ConclusionsThe PPM system has to be connected assoon as possible to the pre-existingprocesses and tools.If managed as a ...
74ConclusionsProject Managers are very important in aPPM systemThey will collaborate if you involve themCreate as many per...
75ConclusionsStrategy might change during the year,markets are very unstable and dynamic.Applying what was decided without...
76The third law of thermodynamicsstated that: “The entropy of a systemapproaches a constant value as thetemperature approa...
77Luca Romanoluca.romano@nexen.it+39 347 41 75 473http://it.linkedin.com/in/lucaromanoSession EM13CAS01Contact Information
Upcoming SlideShare
Loading in …5
×

Rise and fall of project portfolio management triumph&collapse a case study

561 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
561
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Rise and fall of project portfolio management triumph&collapse a case study

  1. 1. Rise and Fall of Project PortfolioManagement. Triumph & Collapse:a case studySession: EM13CAS01Luca Romano, PMPNexen Business Consultants – Roma Tre University“PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2013 Permission is granted to PMI for PMI® Marketplace use only.
  2. 2. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2012 Permission is granted to PMI for PMI® Marketplace use only.My name is Luca Romano• Degree in Economics, Senior Manager in Nexen since 2006• 20 years of professional experience in Italy and UK• Expert in Portfolio, Project and Change Management• Senior Manager / Project Director in Nexen Business Consultants• Professor in International Project Management, PortfolioManagement, Corporate Strategy and Operations Management
  3. 3. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2012 Permission is granted to PMI for PMI® Marketplace use only.Nexen Business Consultants“Management consulting firmowned 95% by 6,000 employeesEngineering Group, the largestItalian IT Services brand”Since 2011 we participate the PMI Registered ConsultantProgram
  4. 4. “PMI” is a registered trade and service mark of the Project Management Institute, Inc.©2012 Permission is granted to PMI for PMI® Marketplace use only.Nexen Business Consultants Marketing and Strategy Project and Program Management Agile Project Management Portfolio Management Change Management IT Startegy and Governance Cobit5, ITIL, CMMI, Business Process Modeling Business Process Rengineering Enterprise Governance and Compliance Enterprise Risk Management
  5. 5. 5In the next hour…1. We’ll do an overview on Project PortfolioManagement (PPM) to introduce the matter2. Some PPM implementations paths will bediscussed together3. The case study will be presented4. Some conclusions will be discussed
  6. 6. 6Some Conclusions1. The aim of a PPM is to finish moreprojects doing less (right) projects2. You need a Top Management involvementto implement a PPM but you can startwithout it3. If you want to know the strategy of acompany don’t look at the stated strategylook at the Project Portfolio
  7. 7. 7Project Portfolio Management“A portfolio is a componentcollection of programs, projects, oroperations managed as a groupto achieve strategic objectivesPMI the Standard for Portfolio Management – Third EditionAt any given moment, a portfolio(…) reflects the organizationalstrategy and objectivesPortfolio management is thecoordinated management of oneor more portfolios(…) processes by which anorganization evaluates, selects,prioritizes, and allocates its (..)internal resources to (…) accomplishorganizational strategies
  8. 8. 8Project Portfolio Management“If you want to find out where yourcompany is going to be three to five yearsfrom now, don’t look at your stated strategy.Instead, look at your Project Portfolio.That’s where you’re making your investments,and it’s those investments that determine yourfirm’s direction”(Warren McFarlan and Cathleen Benko)
  9. 9. 9Project Portfolio Management
  10. 10. 10Project Portfolio ManagementStrategy can be defined as:"the direction and scope of an organization(…) which achieves advantage (…)through its configuration of resources(…) to meet the needs of markets and tofulfil stakeholders expectations"Johnson, Scholes and Whittington
  11. 11. 11ReviewStrategic PlanningCorporatePlanStrategicDirectionProject Portfolio ManagementFore-castsMarketOppor-tunitiesBU Strategic Plans
  12. 12. 12Project Portfolio Management
  13. 13. 13Project Portfolio ManagementX
  14. 14. 14Project Portfolio ManagementX
  15. 15. 15Project Portfolio ManagementStrategic PlanningPortfolio Management
  16. 16. 16Project Portfolio ManagementWere Strategic Planning IS in placeProject Portfolio Management creates atighter connection with what the company isreally doing
  17. 17. 17Project Portfolio ManagementWere Strategic Planning IS NOT in placeProject Portfolio Management showswhere the company is going and is astrategic thinking enabler
  18. 18. 18A simplified path toward PPMimplementation1. The optimal process2. The normal process3. The bottom-up process
  19. 19. 19A simplified path toward PPMimplementationInspired by Archer and GhasemzadehThe optimal processOpportunities&StrategicDirectionProjectsproposalsSelection MethodScreeningPortfolioSelectionandAdjustmentProjectsdevelopment
  20. 20. 20A simplified path toward PPMimplementationOpportunities&StrategicDirection1. We have a Strategic Direction thatshows the where the companywants to goThe optimal process
  21. 21. 21A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposals2. We can now gather Ideas,Proposals and Projects.Usually all the proposals usemore than the resourcesavailable….…..some could go towardthe wrong direction….
  22. 22. 22A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection Method3. So we need a SelectionMethod to evaluate theproposalsThis evaluation & selectionmust be done following theStrategic Direction“BenefITs Generation”
  23. 23. 23A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection MethodScreening4. During theScreening weapply theSelection Methodto the proposalsand rank them
  24. 24. 24A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection MethodScreening5. We now need to balance our Portfolio before we choose.Multiple Choices in multi dimensions is a complex matterPortfolioSelectionandAdjustment
  25. 25. 25A simplified path toward PPMimplementationThe optimal process:Very beneficialprojects could be veryriskyLow-risk projects couldproduce benefits butbeing also veryexpensiveBRIFFirst ranked projectscould start all togetherusing same pool ofresources
  26. 26. 26A simplified path toward PPMimplementationOpportunities&StrategicDirectionThe optimal processProjectsproposalsSelection MethodScreening6. Project will be then Developed following its plans.It’s time to do the projects in the right way!PortfolioSelectionandAdjustmentProjectsdevelopment
  27. 27. 27A simplified path toward PPMimplementation1. The optimal process2. The normal process3. The bottom-up process
  28. 28. 28A simplified path toward PPMimplementationThe normal processOpportunities&StrategicDirectionSelection MethodScreeningProjectsdevelopmentPortfolioSelectionandAdjustmentPre - ScreeningProjectsproposals
  29. 29. 29A simplified path toward PPMimplementationThe normal processOpportunities&StrategicDirectionSelection MethodScreeningProjectsdevelopmentPortfolioSelectionandAdjustmentPre - ScreeningProjectsproposalsThe purpose of Pre-screening is to stopproposals before the screening process ifthey are not aligned with the actual StrategicDirection. Handle with care…
  30. 30. 30A simplified path toward PPMimplementation1. The optimal process2. The normal process3. The bottom-up process
  31. 31. 31We don’t have a StrategicDirection to refer to.It might be that there’s NO Strategic planningprocess in place or maybe….…. we are just starting a PPM within a Business Unitwithout the sponsorship of the Top Management…
  32. 32. 32A simplified path toward PPMimplementationThe “bottom-up” processScreeningProjectsdevelopmentPortfolioSelectionandAdjustmentPre - ScreeningProject Proposals
  33. 33. 33A simplified path toward PPMimplementationThe “bottom-up” processScreeningProjectsdevelopmentPortfolioSelectionandAdjustmentPre - ScreeningProject ProposalsBottom-up PPM could create aPositive FeedbackPositive feedback is a process in whichthe effects of a small disturbance on asystem include an increase in themagnitude of the perturbationShows the distance between “whatwe are doing” and “what we shoulddo”
  34. 34. 34The Case StudyAll happened during Christmas 2010.We were struggling to find a good reason tokeep our Client satisfied (Banking & InsuranceMultinational Company)We had been doing PMO for some of the ITDepartment projects since 2008….
  35. 35. 35The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012..a presentation on a PPM Systemimplementation project for theIT DirectorWe used only 7 slides
  36. 36. 36The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012We also presented a personalized projectselection process:1. Identificationo 2011 Projectscollectiono 2011 Projectscategorization2. Assessmento Selection methoddefinitiono Selection criteriadefinitiono Projects assessment3. Selectiono Ranking analysiso Portfolio evaluationand balanceo Selection methodimprovemento 2011 Portfolioselection
  37. 37. 37The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012the IT director allowed us to apply PPM to arestricted pool of projectsWithout excitement
  38. 38. 38The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012There were 23 projects in our first poolWe decided to focus our attention on theselection model and… postpone theprojects information collection
  39. 39. 39The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012The selection model was based on theAnalytic Hierarchical Process (AHP)technique (T.Saaty, 1970)Is a technique for organizing and analyzingcomplex decisionsIt’s based on quantitative and qualitative criteria
  40. 40. 40The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012AHP steps:1. Breakdown your decision / objective /strategy in criteria and sub-criteriaBUY ACARINITIALCOSTMAINTE-NANCEInsurance Fuel ServicePRESTIGE QUALITYSafetyPerfor-manceDesign Comfort
  41. 41. 41The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012AHP steps:1. Breakdown your decision / objective /strategy in criteria and sub-criteria2. Evaluate the importance of each criterionrelative to the general objectiveBUY ACARINITIALCOSTMAINTE-NANCEInsurance Fuel ServicePRESTIGE QUALITYSafetyPerfor-manceDesign Comfort30% 10% 25% 35%
  42. 42. 42The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012AHP steps:1. Breakdown your decision / objective /strategy in criteria and sub-criteria2. Assess the importance of each criterionrelative to the general objective3. Evaluate each alternative (projects) inrespect of each criterion and general objective4. Establish the priority among the alternatives(projects ranking)
  43. 43. 43January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012StrategicalignmentNew productsdevelopment?Customers servicesimproved?Internal competenciesimproved?Customer accessibilityimproved?Multichanneldeveloped?Alignment with Groupstrategies?Group Pilot project?Costs /BenefitsPayback periodCost savingCostInitial investmentManagement costEase ofimplementationInternal FeasibilityDurationLevel of RiskN° of departmentsinvolvedClearness of the finalobjectiveLevel of EffortContribute tothe companyN° of structuresfavouredContribute to brandimageProcessessimplificationLevel of sponsorshipDealers networkdevelopmentIT innovation level
  44. 44. 44The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012We assessed the importance of eachcriterion relative to the general objectiveweight100%R1 Strategic Alignment 40%R2 Costs / Benefits 25%R3 Ease of implementation 15%R4 Contribute to the company 20%Criteria
  45. 45. 45The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012R1 Strategic Alignment 40%R1.1 New product development? 25%R1.2 Customers services improved? 25%R1.3 Internal competencies improved? 10%R1.4 Customer accessibility improved? 15%R1.5 Multichannel developed? 5%R1.6 Alignment with Group strategies? 15%R1.7 Group Pilot project? 5%….and Sub-criteria to the criterion
  46. 46. 46The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012R2 Costs / Benefits 25%R2.1 Payback period 30%R2.2 Cost saving 30%R2.3 Cost 10%R2.4 Initial investment 15%R2.5 Management cost 15%….and Sub-criteria to the criterion
  47. 47. 47The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Our strategic directionweight100%R1 Strategic Alignment 40%R2 Costs / Benefits 25%R3 Ease of implementation 15%R4 Contribute to the company 20%R1 Strategic Alignment 40% R3 Ease of implementation 15%R1.1 New product development? 25% R3.1 Internal feasibility 20%R1.2 Customers services improved? 25% R3.2 Duration 10%R1.3 Internal competencies improved? 10% R3.3 Level of Risk 25%R1.4 Customer accessibility improved? 15% R3.4 N° of departments involved 10%R1.5 Multichannel developed? 5% R3.5 Clearness of the final objective 30%R1.6 Alignment with Group strategies? 15% R3.6 Level of Effort 5%R1.7 Group Pilot project? 5%R2 Costs / Benefits 25% R4 Contribute to the Company 20%R2.1 Payback period 30% R4.1 N° of structures favoured 15%R2.2 Cost saving 30% R4.2 Contribute to brand image 10%R2.3 Cost 10% R4.3 Processes simplification 35%R2.4 Initial investment 15% R4.4 Level of sponsorship 5%R2.5 Management cost 15% R4.5 Dealers network development 25%R4.6 IT innovation level 10%Criteria
  48. 48. 48The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012… Evaluated each project for each sub-criterion using a quali-quantitative scaleStrategic Alignment 40% 6,8%R1.1 New product development? No 0,00R1.2 Customers services improved? Low 0,01R1.3 Internal competencies improved? Low 0,00R1.4 Customer accessibility improved? Medium 0,02R1.5 Multichannel developed? No 0,00R1.6 Alignment with Group strategies? High 0,04R1.7 Group Pilot project? No 0,00
  49. 49. 49The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Project A contributes the General Objective• 34,6 out of 100Strategic Alignment 40% 6,8% Costs / Benefits 25% 11,6%R1.1 New product development? No 0,00 R2.1 Payback period Low 0,05R1.2 Customers services improved? Low 0,01 R2.2 Cost saving High 0,02R1.3 Internal competencies improved? Low 0,00 R2.3 Cost Low 0,02R1.4 Customer accessibility improved? Medium 0,02 R2.4 Initial investment Medium 0,01R1.5 Multichannel developed? No 0,00 R2.5 Management cost Low 0,02R1.6 Alignment with Group strategies? High 0,04R1.7 Group Pilot project? No 0,00Ease of implementation 15% 7,4% Contribute to the Company 20% 8,7%R3.1 Internal feasibility Medium 0,01 R4.1 N° of structures favoured Very high 0,03R3.2 Duration Low 0,01 R4.2 Contribute to brand image Very high 0,02R3.3 Level of Risk Medium 0,01 R4.3 Processes simplification Medium 0,02R3.4 N° of departments involved Very high 0,00 R4.4 Level of sponsorship Very high 0,01R3.5 Clearness of the final objective Very high 0,05 R4.5 Dealers network development No 0,00R3.6 Level of Effort Very high 0,00 R4.6 IT innovation level Medium 0,01PROJECT A 34,6%Project:
  50. 50. 50The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December20121 PROJECT L 37,48%2 PROJECT Q 34,60%3 PROJECT A 34,55%4 PROJECT S 34,38%5 PROJECT W 34,08%6 PROJECT G 33,33%7 PROJECT H 32,73%8 PROJECT I 32,73%9 PROJECT O 32,70%10 PROJECT T 32,40%11 PROJECT U 31,58%12 PROJECT B 31,33%13 PROJECT E 30,90%14 PROJECT D 29,80%15 PROJECT F 28,70%16 PROJECT C 28,15%17 PROJECT K 27,95%18 PROJECT J 26,50%19 PROJECT N 26,28%20 PROJECT M 26,20%21 PROJECT P 25,78%22 PROJECT R 25,70%23 PROJECT Z 23,55%…This way was possibleto establish a rankingamong the projects“BenefITs Generation”
  51. 51. 51Success!
  52. 52. 52The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012IT Director decided to:1. Extend the application to all the ITprojects (32) proposed for 20112. Present the results to the “2011 ActionPlan” board of Directors meeting on 19thJanuary 2011…………..
  53. 53. 53The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012On 19th of January, the IT directorpresented the results to theBoard of Directors
  54. 54. 54The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Compared to what prepared by theothers our documents wereScience FictionThe IT Director did his presentationfirst, and the next presenters QUIT…
  55. 55. 55The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012No wonder the ManagingDirector asked toapply the methodto the entire Company
  56. 56. 56We worked 16 daysInterviewed 8 DirectorsCollected 104 projectsProducing several deliverables..
  57. 57. 57The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Portfolio interdependencies mapAuto Cross Country ClaimsAntifrodeAuto CrossCountry:nuovosistemaantifrodePortaleMediciAuto CrossCountry:portale webmedicifiduciariAuto CrossCountry:leakage eclose filesrevuePrevinetInsorcingprevinetMigrazioneportafoglioPrevinet inLifeGroupama TelevisionLancio Web TV Web TVRiserve SinistriData BaseRiserveSinistriCriteri diRiservazioneScadenzarioScadenzarioEfficprocessiliquidativi:scadenzariopagamentisinistriProgetto CARD 2011ProgettoCARD 2011Efficientazione processiliquidativAcquistiSinergieacquisti conGRLOGISTIQUERiorganizzazione AcquistiSistemaQualitàFornitori(SQF)SAP Core ModelSAP CoreModelSAP CoreModelDWH e Indicatori GestionaliSistema direporting PbaDWHIncrementoFunzionalitàIndicatoriGestionaliDanniAntiriciclaggioNexusRolloutUnificazioneinfrastruttura MainframeVDIOttimizzazione stampantiNuova SedeDossierDigitaleNuova SedeDocumentale2011TransferpricingBourgesFase IIMigrazioneRiass sullapiattaformaSIGREGEDISolvency IIRisk Policy& GovernanceData QualityProcess +Pillar I def.piattaformaGruppoGap AnalysisPillar IIProcessMappingSolvency IIRegolamento36ProgettoimmobiliareGIROCoass / EntiesterniDismissioneCVKMIFID percanalebancarioCompletam.Gammaprodotti VitaLifewebCompletamlife webNexus +rolloutagenzieLifewebPostVenditaLifeWebBancassicurazione Danni su NexusBancassicuraz su NEXUSCatalogoprodotti danniperbancassicurazRealizz.prodottibancasslinea personae abitazioneIntegrazioneEasyBanca-NexusRiorganizzazione ProcessiProcessi eNorme diAgenziaMagellanoDir CommercialeDir DanniDir. IT & OrgDir VitaDir ComuDir FinDir RiskDir HRFFCommercializzazioneNuovoprodottoCommercioCommercializzazione nuoviprodottoIncendio ROCommercializzazione nuoviprodottoIncendio RCGTercass-CaripeAttribuzioneautonomieassuntivePrografforzamento competitivo(ambito comnel ruoloAM-DM)Nuovo atto dinominaNuoveapertureNuovosistemainformativoHREfficienza Vendite VitaSTEP 1 -Progetto aumcapacitàdistributivarete agentivitaSTEP 2 -Progettocrescitaqualitàconsulenzavita reteagentiAuto Cross Country PricingBenchmarkBehavioralpricingDiscountManagementPortfolio interdependencies map
  58. 58. 58The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Portfolio interdependencies mapPortfolio aggregate analysis01020304050607080Nullo Basso Medio Alto EccellenteNew Products developmentLow Medium High Very highNoNew Products Development05101520253035Nullo Basso Medio Alto EccellenteCustomer service improvementLow Medium High Very highNoCustomer Service Improvement
  59. 59. 59The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Key findings:1. The initial 104 projects became 81 after thefirst optimization and at the end we had 732. The original budget declared by IT inOctober 2010 was 4 million Euros lowerthan the sum of the budgeted costs of theprojects collected
  60. 60. 60The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Key findings:3. The Executives asked about the selectionmodel, they touched and used it4. This time “only” 8 projects wereterminated the sum of their saved costs isthe fast payback of a PPM
  61. 61. 61The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberPortfolio ManagementProjects and PMOCONTROLLINGAND REPORTINGINITIATIVESIDENTIFICATIONINITIATIVESEVALUATION ANDSELECTIONPORTFOLIOADJUSTMENTSTRATEGYDEFINITIONThe Cake
  62. 62. 62The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012Portfolio reporting and control process– Monthly meetings with PMs– Monthly meetings with Directors– Coaching approach
  63. 63. 63The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012In September was created a PPM functionassigning as responsible a notexperienced internal person
  64. 64. 64The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012In September was created a PPM functionassigning as responsible a notexperienced internal personIn November the MD participated in thedefinition and weighing of the modelThe model was basically confirmed..
  65. 65. 65The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012In December the initiatives/projectscollection was completed
  66. 66. 66The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012In December the initiatives/projectscollection was completedin January this collection was presented tothe Board of Directors…
  67. 67. 67The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012In December the initiatives/projectscollection was completedin January this collection was presented tothe Board of Directors……but it took until April for the 2012 Portfolioto be approved and released with 58 projects
  68. 68. 68The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012From January to December the PPMsystem was in place.…. And still it is … butIn 2012 a Budget cut reduced thenumber and experience of the resourceson the PPM
  69. 69. 69The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012…due to this, Team spent less timewith project managersloosing the original…coaching approach
  70. 70. 70The Case StudyOctober 2010 November 2010 December 2010January2011February2011March2011May 2011July 2011September 2011January2012November 2011December 2011April2012December2012PM start considering PPM as a pretextto prepare nice and charming slidesfor the Directors…PM asked for support…PMO
  71. 71. 71The Case StudyThe PPMbottom-upideaThe PPM PilotThe PPM ITdepartmentThe PPMwholecompanyThe Rept &Ctrl SystemUn-experiencedresourcesTeam cutPMOactivitiesrequest2010 2011 2012 2013
  72. 72. 72ConclusionsDuring the first PPM implementation, therewill be a lot of enthusiasmThis enthusiasm has to be exploited as itwill taper offPeople will understand that a PPM systemwill decrease their personal choice
  73. 73. 73ConclusionsThe PPM system has to be connected assoon as possible to the pre-existingprocesses and tools.If managed as a stand-alone system, it willbecome obsolete and people will keep onusing what they used in past.
  74. 74. 74ConclusionsProject Managers are very important in aPPM systemThey will collaborate if you involve themCreate as many personal contact pointsas you can “finance”
  75. 75. 75ConclusionsStrategy might change during the year,markets are very unstable and dynamic.Applying what was decided withoutreviewing the strategic direction is ashort-sighted approach.3 times per year could be enough..
  76. 76. 76The third law of thermodynamicsstated that: “The entropy of a systemapproaches a constant value as thetemperature approaches zero”A PPM system like other complexsystems must be constantly heated..
  77. 77. 77Luca Romanoluca.romano@nexen.it+39 347 41 75 473http://it.linkedin.com/in/lucaromanoSession EM13CAS01Contact Information

×