From Boom to Bust and Back Project Portfolio Management & Organization wide Re-Engineered Process In a Recession Driven Ec...
“ Irrational Exuberance” Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller <ul><li>In the era of economic b...
System Failure Has Corporate American lost its way? <ul><li>“ Investors Running Scared—NASDAQ 5 Year Low”  (Wall Street Jo...
Party’s Over. . .   What to do?
DUMP <ul><li>Strategic Projects </li></ul><ul><li>Core Assets </li></ul><ul><li>Strategic initiatives (R&D) </li></ul><ul>...
The Corporate Ship:  High Tide Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller Inefficiencies
The Corporate Ship:  Low Tide Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller Inefficiencies
The Corporate Ship:  Busted! Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller Sell strategic units Layoffs...
“ Dump the Weight” <ul><li>Employee layoffs  are routine . . . </li></ul><ul><li>Budgets are  cut to the bone  . . . </li>...
Expose & Eliminate Inefficiencies Expose & Eliminate Inefficiencies
The Corporate Ship:  High and Dry Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller STRATEGIC INVESTMENTS I...
Is there really a “New” Economy?   <ul><li>YES:   There really is a GLOBAL market now, and national economies are more int...
New Economy continued. . . <ul><li>Technology =  more choices for customers </li></ul><ul><li>Technology = more informatio...
GOOD TIMES ARE HERE;   Better Times are Coming! <ul><li>“ Paradigm Shift” </li></ul><ul><li>Take advantage of  POSITIVE RI...
“ Risk” <ul><li>Unplanned occurrences that can affect the project for  good  or  bad   (PMBOK definition) </li></ul><ul><l...
Stakeholder Expectations <ul><li>Manage them! </li></ul><ul><li>Customers:  what’s more important, cost or features, or se...
“ How would you like to. . .   <ul><li>see your organization weather the recession in  excellent financial health  . . .” ...
It’s not a dream! It’s a  CHOICE. Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller
Examples from   “Real Life” Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller
Example #2: Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller Dedicated to Father of Knowledge Management “...
Who is. . .  Buckman Laboratories? <ul><li>Provides  specialty chemicals and solutions   </li></ul><ul><li>Employs 1300 lo...
<ul><li>When Economy going South, One company’s strategy has paid off! </li></ul><ul><li>8% Sales Growth— in 2nd Qtr &  re...
How ?   “ Global Business System Point” <ul><li>ORP  = Organization-wide Re-engineered Process & BS Project Portfolio Mana...
Traditional  Multinational Organization’s Business System: <ul><li>Run by a group of feudal Autonomous Managers. </li></ul...
Traditional   Global Corporations vs.   Buckman Labs <ul><li>Scenario Traditional Buckman* </li></ul>Unpublished work,copy...
Buckman Laboratories’ Global Business System <ul><li>One  Business System for one organization! </li></ul><ul><li>Global B...
Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller Buckman’s Global Business System  Global BS PPM Team, Sol...
Global   Core Knowledge Project Portfolio Team <ul><li>Based in Memphis </li></ul><ul><li>Supports the worldwide Buckman o...
Global  Infrastructure <ul><li>Business System  server  based in Memphis & taking the advantage of  Time Zone differences ...
Risk Management <ul><li>World Class  Business Continuation plan developed even before 9/11. </li></ul><ul><li>In case of D...
Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller ERP Project Scenario BOOM   vs.  Bust BaaN Implementation...
Dig More about  GBS & ORP? <ul><li>Please Visit </li></ul><ul><ul><li>“ The Mystery of Irrational Exuberance to Fast & Fur...
Wrapping Up. . .  Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller
“ The Moral” <ul><li>Executive Sponsorship : </li></ul><ul><ul><li>Alignment of project with strategic vision </li></ul></...
The End   Unpublished work,copyright 2002  Saji Madapat & Gertrude Moeller
About the Author <ul><li>Saji K Madapat  CPIM, CIERP, PMP </li></ul><ul><li>Saji has rich experience in most aspects of ER...
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Project Portfolio Managment in a Recession Driven Economy - YR2002

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This is the presentation I had given to PMI Audience in the backdrop of 2002 recession

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  • Project Portfolio Managment in a Recession Driven Economy - YR2002

    1. 1. From Boom to Bust and Back Project Portfolio Management & Organization wide Re-Engineered Process In a Recession Driven Economy Saji Madapat, CPIM, PMP, CIERP Buckman Laboratories PMI Professional Development Day - 2002
    2. 2. “ Irrational Exuberance” Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller <ul><li>In the era of economic boom: </li></ul><ul><li>Exciting new investments and acquisitions! </li></ul><ul><li>BIG PERKS! (e.g. private jets for executives; BMW’s as joining bonuses to programmers) </li></ul><ul><li>“ Creative Accounting” (book cooking) </li></ul>
    3. 3. System Failure Has Corporate American lost its way? <ul><li>“ Investors Running Scared—NASDAQ 5 Year Low” (Wall Street Journal) </li></ul><ul><li>“ Energy Firm Executive Kills Self” (Washington Post) </li></ul><ul><li>“ Castro to US: I told you so— As U.S. stock markets wither, Cuban leader questions whether the world can sustain capitalism” (CNNFN July 26, 2002) </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    4. 4. Party’s Over. . . What to do?
    5. 5. DUMP <ul><li>Strategic Projects </li></ul><ul><li>Core Assets </li></ul><ul><li>Strategic initiatives (R&D) </li></ul><ul><li>Vendors </li></ul><ul><li>Knowledge Capital -Employees </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller OR . . .
    6. 6. The Corporate Ship: High Tide Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller Inefficiencies
    7. 7. The Corporate Ship: Low Tide Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller Inefficiencies
    8. 8. The Corporate Ship: Busted! Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller Sell strategic units Layoffs Cut projects Strategic budget cuts Inefficiencies
    9. 9. “ Dump the Weight” <ul><li>Employee layoffs are routine . . . </li></ul><ul><li>Budgets are cut to the bone . . . </li></ul><ul><li>Strategic projects are cancelled . . . </li></ul><ul><li>BUT the underlying inefficiencies aren’t touched! </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    10. 10. Expose & Eliminate Inefficiencies Expose & Eliminate Inefficiencies
    11. 11. The Corporate Ship: High and Dry Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller STRATEGIC INVESTMENTS Inefficiencies
    12. 12. Is there really a “New” Economy? <ul><li>YES: There really is a GLOBAL market now, and national economies are more interconnected than ever </li></ul><ul><li>YES: Leading corporations abandoned financial disciplines and well-grounded ROI (STAY TUNED ON THIS! </li></ul><ul><li>NO: Same, rickety old management techniques! </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller The New Economy
    13. 13. New Economy continued. . . <ul><li>Technology = more choices for customers </li></ul><ul><li>Technology = more information for customers </li></ul><ul><li>(and competitors!) </li></ul><ul><li>Speed to market is accelerating </li></ul><ul><li>Unprecedented competitive intensity </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    14. 14. GOOD TIMES ARE HERE; Better Times are Coming! <ul><li>“ Paradigm Shift” </li></ul><ul><li>Take advantage of POSITIVE RISK </li></ul><ul><li>Manage Stakeholder Expectations </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    15. 15. “ Risk” <ul><li>Unplanned occurrences that can affect the project for good or bad (PMBOK definition) </li></ul><ul><li>“ For bad” </li></ul><ul><ul><li>Sales declines; volume loss </li></ul></ul><ul><li>“ For good” </li></ul><ul><ul><li>Low cost of capital </li></ul></ul><ul><li>Slump produces: freed up time, skills, newly motivated employees, opportunities for integration, rationalization, and culture change! </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    16. 16. Stakeholder Expectations <ul><li>Manage them! </li></ul><ul><li>Customers: what’s more important, cost or features, or service level? Reevaluate! </li></ul><ul><li>Management: politics, “SOP” </li></ul><ul><li>Employees: perks, position/R&R, CULTURE CHANGE </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    17. 17. “ How would you like to. . . <ul><li>see your organization weather the recession in excellent financial health . . .” </li></ul><ul><li>with increased sales . . .” </li></ul><ul><li>an improved competitive position . . .” </li></ul><ul><li>and enhanced employee loyalty ?” </li></ul><ul><li>How would you like to see costs for business system projects drop by over 70%? </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    18. 18. It’s not a dream! It’s a CHOICE. Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    19. 19. Examples from “Real Life” Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    20. 20. Example #2: Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller Dedicated to Father of Knowledge Management “ Communications is human nature; Knowledge sharing is human nurture!”*
    21. 21. Who is. . . Buckman Laboratories? <ul><li>Provides specialty chemicals and solutions </li></ul><ul><li>Employs 1300 loyal associates (no layoffs since its inception in 1945 ) </li></ul><ul><li>Global operations (90+ countries) </li></ul><ul><li>Speaks more than 15 languages ! </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    22. 22. <ul><li>When Economy going South, One company’s strategy has paid off! </li></ul><ul><li>8% Sales Growth— in 2nd Qtr & record-breaking year across the board! </li></ul><ul><li>Fifth Consecutive— Most Admired Knowledge Enterprise – ahead of other Global Hall of Fame members - GE, British Petroleum, HP, and Xerox. </li></ul>If you can believe. . . . Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller &quot;My father taught me many things ... keep your friends close, but your enemies closer.&quot; - The Godfather
    23. 23. How ? “ Global Business System Point” <ul><li>ORP = Organization-wide Re-engineered Process & BS Project Portfolio Management : </li></ul><ul><li>One Flexible Global Business System </li></ul><ul><li>One Global Core Knowledge Project Team </li></ul><ul><li>One Global Infrastructure </li></ul><ul><li>Project Portfolio Management & Outsourcing non-core Business Processes. </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    24. 24. Traditional Multinational Organization’s Business System: <ul><li>Run by a group of feudal Autonomous Managers. </li></ul><ul><li>Each Organization sets its own objectives and business processes, using its own System. </li></ul><ul><li>RESULT: </li></ul><ul><li>fragmented data, lack of visibility, impossible to co-ordinate Organization as a whole. </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    25. 25. Traditional Global Corporations vs. Buckman Labs <ul><li>Scenario Traditional Buckman* </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller Business System (BS) Islands One Global Project Portfolio Team Islands One Global BS Infrastructure Islands One Global BS Risk Management ??? One Global Integration and Consolidation Hell One BS
    26. 26. Buckman Laboratories’ Global Business System <ul><li>One Business System for one organization! </li></ul><ul><li>Global Buckman BS Model Implemented through ERP – BaaN </li></ul><ul><li>In Twelve nations around the globe </li></ul><ul><li>Global Consolidation & Reporting (Hyperion) </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    27. 27. Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller Buckman’s Global Business System Global BS PPM Team, Solution & Infrastructure Buckman Laboratories, Inc. Memphis, Tennessee, U.S.A. Buckman Laboratories, Inc. Cadet, Missouri, U.S.A. Buckman Laboratories, S.A. DE C.V. Cuernavaca, Mexico Buckman Laboratorios LTDA Campinas, Brasil Laboratorios Buckman S.A. Buenos Aires, Argentina Buckman Laboratories (PTY.) LTD. Hammarsdale, South Africa Buckman Laboratories PTE LTD Singapore Buckman Laboratories,K.K. Tokyo, Japan Buckman Laboratories PTY. LTD. Wagga Wagga, Australia Buckman Laboratories,LTD. Auckland, New Zealand Buckman Laboratories Italiana,S.r.l., LTD. Milano, Italy Buckman Laboratories Quimica, LDA Parede, Portugal Buckman Laboratories, S.A.M. Principaute de Monaco Buckman Laboratories, Iberica Barcelona, Spain Buckman Laboratories, S.A. Ghent, Belgium Buckman Laboratories,Gesellschaft Vienna, Austria Buckman Laboratories Gmbh Bad Homburg v.d.H.,Germany BaaN & Hyperion
    28. 28. Global Core Knowledge Project Portfolio Team <ul><li>Based in Memphis </li></ul><ul><li>Supports the worldwide Buckman organization. </li></ul><ul><li>Responsible for: </li></ul><ul><ul><li>developing a Global Business Model </li></ul></ul><ul><ul><li>implementation, </li></ul></ul><ul><ul><li>support and optimization </li></ul></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    29. 29. Global Infrastructure <ul><li>Business System server based in Memphis & taking the advantage of Time Zone differences by sharing: </li></ul><ul><ul><li>Concurrent Licenses </li></ul></ul><ul><ul><li>Support Infrastructure </li></ul></ul><ul><ul><li>Specialized Professionals. </li></ul></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    30. 30. Risk Management <ul><li>World Class Business Continuation plan developed even before 9/11. </li></ul><ul><li>In case of Disaster, all our IT operations will shift to Philadelphia. </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    31. 31. Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller ERP Project Scenario BOOM vs. Bust BaaN Implementation USA (1998) Canadian (Planned 2003) Cost of Capital (Fed Rt) Consultancy Expenses Hardware/software Project Duration Support, Maint., Optimization Implementation Team Customization Percent of Business Practices in Business System post-impl Bonus Systems Business Continuity Plans Probability of Success pre-impl Global Business System Global Consolidation & Reporting 7-8% +$3 M +$0.5 M 1.5 Years Many Consultants Inexperienced Heavy 70% Nil Nil 20-40% 9 SW systems* No 2-3% Nil Nil 4 months Internal resources Experienced Not needed 95% Hyperion etc.* Fully equipped 90% One system* Yes
    32. 32. Dig More about GBS & ORP? <ul><li>Please Visit </li></ul><ul><ul><li>“ The Mystery of Irrational Exuberance to Fast & Furious ” Journal Of Research Findings Of ERP Systems And Enterprise Resource Management , June 2002. </li></ul></ul><ul><ul><li>“ Excelling in A Recession Driven Economy – Project Portfolio Management and Business System Investment ” : “ Milestone ”, Project Management Institute, Memphis, April 2002 issue . http://www.pmimemphis.org/files/milestone_0302.pdf </li></ul></ul><ul><ul><li>&quot; Organization-wide Re-Engineered Process (ORP) -RIP to ERP: Buckman’s Holistic Approach ,” Journal Of Research Findings Of ERP Systems And Enterprise Resource Management , June 2001. (Later published on CIBRES.COM as featured paper http://www.cibres.com/articles/20011001-rip to orp.htm.) </li></ul></ul><ul><ul><li>&quot;In the Whirlpool ERP Horror Stories: The Classic Buckman Success Story ,” Journal Of Research Findings Of ERP Systems And Enterprise Resource Management , January 2001. (Later published on CIBRES.COM as featured paper http://www.cibres.com/articles/20010501 .) </li></ul></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    33. 33. Wrapping Up. . . Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    34. 34. “ The Moral” <ul><li>Executive Sponsorship : </li></ul><ul><ul><li>Alignment of project with strategic vision </li></ul></ul><ul><ul><li>Project protected </li></ul></ul><ul><li>Small teams with aligned support personnel </li></ul><ul><li>Professional project management </li></ul><ul><li>Quick turnaround </li></ul><ul><li>Dramatic results </li></ul>Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    35. 35. The End Unpublished work,copyright 2002 Saji Madapat & Gertrude Moeller
    36. 36. About the Author <ul><li>Saji K Madapat CPIM, CIERP, PMP </li></ul><ul><li>Saji has rich experience in most aspects of ERP including all major functionalities and Technical area in BaaN ERP & Hyperion. Before venturing into ERP, he was involved in Project Feasibility studies, Appraisals, Industry Analysis, Company analysis, Financial Reporting etc. areas. He has a BS in Production Engineering and MBA in Finance. He is certified in Project Management Professional (PMP) of PMI, CPIM of APICS and CIERP of CIBRES. He has represented or worked with leading Consulting firms including E & Y, Arthur Anderson, BaaN (Vanenburg) Business System and CroweChizek in leading ERP Projects in USA. Presently, he is working as Business System Specialist (BaaN & Hyperion) in International Business Division of Buckman Laboratories, Memphis, USA. He is responsible for BaaN Finance & Hyperion implementation/support of over a dozen Buckman Companies around the world. Saji is active in various PMI (Project Management Institute) and APICS activities. </li></ul>Unpublished work,copyright 2002 Saji Madapat

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