PPM and Governance Workshop

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Does your organization initiate more IT projects than they have the capacity to handle efficiently with limited budgets and resources? Do your organization’s IT projects align properly with the goals and objectives of the organization? Are your IT budgets being expended on the projects that deliver the best value to the organization? Does a lack of focus sometimes lead to poorly executed projects? If any of this sounds familiar, you are not alone. Many organizations, agencies and companies, large and small, are experiencing these growth-killing issues every day, especially in this era of higher organizational expectations, smaller budgets, shorter projects, limited resources, and narrowly focused skills.

There is a solution, however -- Research has shown that top performing organizations that practice project portfolio management (PPM) and IT Governance have a 40% greater return on IT investments than their competitors (IT Governance by Peter Weill).

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PPM and Governance Workshop

  1. 1. (800) 556-2506 www.Edwards-Ind.com Portfolio Management & Governance What, Why & How? EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Phone: (800) 556-2506 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Email: Info@EdwPS.comRevised: August 2012 Web: www.EdwPS.com
  2. 2. Poor Portfolio Management & Governance Starts At The Project Level …a “typical” project lifecycle… Courtesy of www.projectcartoon.com …and the project… The Customer… EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 2 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012
  3. 3. Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com What was described What was understood What was designed EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 3 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012
  4. 4. Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com What was developed What was initially What Operations installed FINALLY Delivered EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 4Revised: August 2012
  5. 5. Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com When it was Delivered What the Customer was …and how the project charged for was supported… EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 5 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012
  6. 6. Now take that approach and multiply it by 10, 100, 1000… Add in no Enterprise Management… No Portfolio Management… No Governance and… EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 6 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012
  7. 7. You get insurmountable problems EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 7Revised: August 2012
  8. 8. Agenda What is Portfolio Management and Governance? Why is Portfolio Management and Governance Important? How do you implement Portfolio Management and Governance? Case Studies – What others are achieving Call to Action EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 8Revised: August 2012
  9. 9. Now What? Why? How? What? What is Portfolio Management and Governance? EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 9 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012
  10. 10. What is Portfolio Management and Governance? Portfolio Management is a capability that enables organizations to analyze, select and manage a collection of project investments that are aligned with your company’s goals and objectives within a data driven decision making framework. Portfolio Management also coordinates the acceptance, approval, postponement, rejection or cancelation of a project which will not realize the proposed benefits or the corporation’s strategic outcomes. Governance is the process of putting policies, procedures and processes in place to guide organizational operational activities and changes. Governance warrants the achievement of an organization’s objectives by strategically aligning daily activities, setting direction, providing guidance on decision making and monitoring performance. EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 10 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012
  11. 11. Now What? Why? How? What? Why is Portfolio Management and Governance Important? EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 11Revised: August 2012
  12. 12. Why is Portfolio Management and Governance Important? Organizations that practice Portfolio Management and Governance are 20% more profitable than their competitors. (IT Governance, Peter Weill) Portfolio Management and Governance is important because it addresses the following organization concerns, issues and trends. PwC Global PPM Survey Findings Misaligned Organizational Behaviors Technical and Enterprise Debt Future Technologies and Trends EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 12Revised: August 2012
  13. 13. PwC Global PPM Survey Findings The survey included some 1,524 respondents from 38 countries and within 34 industries. 2/3’s of organizations that deployed PPM reported that 90% of their projects perform to expectations. Higher PM and PPM maturity yields higher business performance. Higher levels of portfolio alignment increase stakeholder satisfaction. Adoption of PPM has not increase since 2007 remaining at around 53%, but organizations using PPM have seen an increase in performance. http://www.pwc.com/en_US/us/public-sector/assets/pwc-global- project-management-report-2012.pdf EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 13Revised: August 2012
  14. 14. Misaligned Organizational Behaviors Too much concurrent demand in the same window of time. Bad Multi-tasking Conflicting Priorities – Resource contention Behavior misalignment Student Syndrome Parkinson’s Law EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 14Revised: August 2012
  15. 15. Enterprise Debt Remedial Work increases surfaces as reduces surfaces as Project Enterprise Debt Increased Requested Debt Approved Cost to Projects Projects Support increases surfaces as pays interest on Increased Work to Source: www.pragmaticEA.com Change EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 15Revised: August 2012
  16. 16. Technical Debt Increase cost of maintenance Duplicate organizational functions Bad business processes Cost of rework Cost of poor execution Cost of poor data quality EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 16Revised: August 2012
  17. 17. IT project debts are killing business profits IT failure costs the U.S. economy an estimated $1.2 trillion+ a year. And, the global economy $6.2 trillion a year. 52% all projects will have costs overruns at a staggering 189% of the original cost estimate, 62% of projects have time overruns at a rate of 222% over the original time estimate. 41% of IT projects failed to deliver the expected business value and/or ROI. EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 17Revised: August 2012
  18. 18. Future Technologies and Trends Cloud Computing Consumerization of IT Social Media (LinkedIn, Facebook, Twitter, etc…) Mobility or device agnostic anywhere access demands Big Data: Ability to analyze large volumes of structured and un-structured data IT must respond quickly while addressing organizational data security concerns Gartner Predicts 2012: Four Forces Combine to Transform the IT Landscape EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 18Revised: August 2012
  19. 19. Now What? Why? How? What? How do you address these issues and implement a Portfolio Management and Governance capability? EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 19Revised: August 2012
  20. 20. How Do You Move Forward? Acknowledge a need for a holistic Governance approach Capture projects and resources demand in a centralized repository. Make data driven decisions on project investments Measure progress with leading indicators EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 20Revised: August 2012
  21. 21. Governance Framework: Finding the Right Balance Avoid Burdensome process Drive engagement Ensure appropriate ownership Appropriate forums for communications and engagement  Right Data  Right People   Right Decisions  EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 21Revised: August 2012
  22. 22. Create A Centralized Repository Publish Projects  Central location for project information  Update task information via the Web Project Collaboration  Issues  Risks  Communications plan  Change orders Project Workspaces  Single place for all project information  Document Management  Meeting workspaces  Manage Issues and Risks EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 22Revised: August 2012
  23. 23. Data Driven Portfolio Strategy Change total cost constraint and click “Recalculate” to view the Force what if scenario and results in/out projectsUnselectedprojects EDWARDS PROJECT SOLUTIONS Portfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 23 Revised: August 2012
  24. 24. Implement a Performance Management and BI Capability You can’t manage what you don’t measure or describe. Inventory • Do you currently track metrics? Determining KPIs  Mission: What are they missions • Does the metric provide your department has targeted? Actionable actionable data?  Strategy: What are the policies, procedures or approaches being used to accomplish these • Does the metrics enables you to missions? Decision make business decisions?  Objective: What are the key objectives of the mission?  KPI: What indicators can you • Does the metrics provide measure to determine if you are Predictive directional guidance? meeting these objectives? • Does the metric capture Trending historical trend in performance? • Can the metric features be Integrated integrated with other metrics? Course Correction - 90% Rule EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 24Revised: August 2012
  25. 25. What Others Are Achieving Organization Challenge Solution Results EPA Office of Water • Scored 1.3 out of 5 on • Implemented Project • Generated saving of 1.9 OPMs maturity model Server 2010 Million per year • Lacked PPM Capabilities • Implement Dashboard • Increase score to 2.8 for monitoring progress Marquette • Tracking only schedule • Standardize PM process • Ability to track capital data was not sufficient. and templates projects across the • Lack of standards • Implement Enterprise University PPM solution Verizon Communication • 75 PM to oversee • Automate the • Increase PM efficiencies 150,000 projects development of their by > $20 Million • Inefficient collaboration WBS (schedules) productivity saving processes • Implement Enterprise • > $25 Million reduced Reporting conference calls Ingresoll –Rand • Need to increase PM • Training continuously • Enabled the firm to skills • Establish a world class support an end to end • Lack Financial insights governance model Project Lifecycle (from on projects • Standardize across Proposal to Selection to • Capture project demand departments with PPM Execution) 1000 Lawyer – Law Firm • Standardize PM • Implement Standardize • Increase EA maturity Methodology PM & Governance • Increase project • Lack of Governance processes completion throughput Processes • Train PM to from 10 to 65 projects a become(PMPs) year EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 25Revised: August 2012
  26. 26. Now What? Why? How? What? Case Study and Call to Action? EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 26Revised: August 2012
  27. 27. Call to Action Commit To The Journey Senior Management Must Drive The Change And Remove Barriers. Use Architecture As A Compass Increase EA Maturity One Project At A Time Hire A Tour Guide (Outsource to Experts with Experience) Increase Your Employee’s Capabilities EDWARDS PROJECT SOLUTIONSPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 27Revised: August 2012
  28. 28. Thank you for your time! For more information on how we can provide your organization with comprehensive project management solutions, please contact: EDWARDS PROJECT SOLUTIONS Gerald Leonard PMP, MCTS, ITIL 7250 Parkway Drive • Suite 200 • Hanover, MD 21076-1388 Office: (800) 556-2506 • (443) 561-1315 Fax: (443) 561-0199 Email: gleonard@EdwPS.com Also visit our website at: www.EdwPS.comPortfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 28 Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.Revised: August 2012

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