NorthPoint Initiative Asssement Overview_2013

Maximizing the Value of Project ROI with a
Software-based Assessment Solution
Initiative Assessment Overview

 Based on current course and speed of the most critical factors for a projects success, predict the
project duration and cost with 90+% accuracy

 Reduce the time and budget overruns with prescriptive actions to alter the current course and speed

 Increase the value obtained from the desired process, system and knowledge improvements

Predictive Insights for Actionable Decisions
1992 – 2013 Confidential to The NorthPoint Group © www.thenorthpointgroup.net All Rights Reserved
Atlanta - Boston – Cleveland – Detroit - NYC
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All initiatives have risks… the key is to identify which risks to leverage
and which risks to minimize

Risk essentially comes from two factors:
• Not doing something (missing a key step, task, process…)
• Not doing something well (poor execution)

Risk Index Benchmark 
• Additional risks typically seep
Copyright NorthPoint Software Ventures Inc. All rights reserved.
into projects over time as
Very High Risk High Risk Medium Risk Best In Class
teams identify and attack
known issues
120

• Project value is enhanced by
100
proactively leveraging /
managing risks to minimize
80
cost and time overruns
60 • To do this, these questions
must be answered:
40
• Where are the risks?
• What are the risks?
20
• What is their impact?
• How do I leverage or
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
minimize their impact?

NorthPoint’s Initiative Assessment software-based product identifies project risks
and opportunities to maximize ROI providing answers to these questions and more
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NorthPoint’s Initiative Assessment software-based solution helps project
teams deliver on committed time, cost and business value…
 NorthPoint research indicates that effective implementation is still a challenge…
 Greater than 50% of projects incur 2x overrun or more
 Less than 40% of originally committed functionality and business value is actually delivered
 Significant gaps between committed delivery and actual implementation – with limited improvement over the last decade
 72-80% of failed initiatives are due to lack of business knowledge
 20-28% of the business knowledge to effectively manage initiatives is missing from the team
 27-42% of the critical knowledge required to manage to “Best-in-Class” is missing
 Cost and risk grow exponentially over the first 55% of a project’s life when knowledge is low
 Initiatives with a high Knowledge Index (Knowledge, Experience and Performance) are 4.4 - 6.3 times more successful as those
with “Needs Change”
 24% of the time new problems are created as a result of the implementation

 Significant ROI delivered with use of NorthPoint’s Initiative Assessment software-based solution
 Identifies the root cause of issues and therefore reduces the project expenditure by 20-31%
 Identified budget overruns on 81% of the assessments (overruns averaged between 41% and 2X of the budget)
 Identified schedule overruns on 86% of the assessments (overruns averaged between 55% and 150% of the schedule)
 Root cause for budget and schedule overruns: insufficient project plan, knowledge of users to effectively and efficiently use
new capabilities, issues with infrastructure installation
 Reduces the plan and delivery time by 40+%
 Improves the implementation value by 17%-43%- improvement impacted most by: (1) ability to identify unmet and unidentified
needs, (2) integration of old and new data
 Skills and Knowledge, Experience and Performance (KEPTM) in IT improves by 21%
 Skills and KEPTM for the Business Leadership improves by 36% - 58% - improvement impacted most by: alignment of unmet and
unidentified needs to new capabilities

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NorthPoint’s Initiative Assessment software-based assessment
solution identifies project risks and opportunities to maximize ROI
 NorthPoint’s software-based Initiative Assessment product & proprietary database
 250+ fundamental elements of project success scored by the project team on a consensus basis
 The “right” statements weighted based on impact to the success of the initiative
 Methodology that is complete and accurate
 Records and shares the answers with current and new team members
 Focuses on risk to realizing committed business value, not just on-time & on-budget
 Assesses the KEPTM (Knowledge, Experience and Performance) of the organization to maximize initiative ROI – KEPTM
is a leveragable asset
Examples of the areas covered in the Initiative Assessment include:

Team knowledge of Scope and size of project / team
Process Management
requirements for company Team knowledge of who the Management team strategy to to support
(knowledge, effectiveness,
to gain industry real customer / user is leverage new solution
efficiency, metrics, etc.)
leadership position

Management team knowledge Knowledge & delivery of
Management team KEP customers / users adoption
Knowledge & status of Knowledge of managing of the market segment
to ensure effective criteria
Business Model projects in the industry (customers & competitors
leadership
vision)

Team KEP in successfully Team knowledge of the new
Knowledge of current / future Value propositions committed
Improvement & value implementing projects in value delivered compared to
computing environment to be delivered
the market segment current solution

Knowledge of how the Team knowledge of potential
Knowledge & support for
business problem / Knowledge of solution Team knowledge of operating impacts
team within the
opportunity can be solved requirements and risk system
organization
with the new solution

Knowledge & support New knowledge that must be
Knowledge of customer Required support & service New knowledge provided for
within customer / user acquired for successful
business process organizations customers / users
organizations completion

Team KEP (Knowledge,
Knowledge requirements Management awareness of the
Experience and Knowledge of training services Knowledge of partners the team
and how to schedule into missing knowledge required for
Performance) of the required is dependent upon
project plan success
technology

Knowledge to develop and Team knowledge gained Management team focus on
Team knowledge of systems
implement a performance through working with factors that drive success
integration and
management and tracking competitive / alternative
implementation methods
system solutions

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Our process is rapid, knowledge based, and inclusive of all critical
stakeholders impacted by the project…

Compare
Assess Risk Develop Establish Identify
Results
Factors Risk Mitigation Checkpoint Rate of
To
(1-Day Session) Plan Cycle Improvement
“Best-in-Class”

Typically 1 - 2 week period to
complete Assessment & Plan

 Research shows that initiatives not utilizing a software-based tool with the capabilities of
NorthPoint’s Initiative Assessment:
 Exceeded the implementation schedule by a factor of 2.1 – 3.7
 Exceeded the initiative budget by a factor of 1.8 – 3.2
 Company’s using Initiative Assessment have limited budget overruns to:
 8.6% with strong execution and follow through on the prescriptive analytics and insights
 19.4 – 24.4% with less effective execution follow through
 NorthPoint Initiative Assessment software & proprietary database has been used:
 Over 100 times to assess risks on product and process initiatives
 Over 70 times to assess risks on SAP/ Oracle, etc. implementation projects (prior to and
during implementations)

4

By leveraging Initiative Assessment in a regular performance review cycle, project
teams can systematically mitigate unwanted risks and increase project value

Principles are …
 If the organization knows all of the required Steps, Tasks
and Processes (STP’s) and executes them well…. then
they can achieve a higher ROI on the initiative investment. Facilitated
 Risk with any investment is that the organization is not Stakeholder
aware of all of the required STP’s and/or does not have
the necessary KEP™ (Knowledge, Experience and Sessions
Performance) to execute them.
 NorthPoint analytical process and database has the STP’s
required and the level of KEP™ necessary for success

NorthPoint process overview…
 Step 1: Value-Risk Assessment (VRA) Session
 Facilitated session with key stakeholders (1-day)
 Analyze and score statements comprised of the
Fundamental Business Activities (FBA’s), as well as the
supporting Steps, Tasks and Processes (STP’s)
 Drive stakeholder alignment through facilitator-led
consensus scoring for each FBA/STP
 Capture key discussion points / issues
 Analytics and management report completed by
NorthPoint based on proprietary “Best-in-Class” database
(<5 days) Consensus
 Step 2: Value-Risk Solution (VRS) Session
 Facilitated session with key stakeholders (1-day) to
Driven
develop action plan / solutions from assessment results
 Gain deep understanding, buy-in and follow through
Results
across the organization from collaborative methodology
 Step 3- Establish Checkpoint Cycle

5

Step 1: Value-Risk Assessment (VRA) Session

Value-Risk Assessment Session (1-Day)

 Simple – 250+ statements that a cross
functional group of IT and business
professionals score

 Fast - takes one day

 Accurate - every statement is weighted in
terms of importance to success

 Provides prescriptive and predictive
value based on NorthPoint’s “Best-in-Class”
database

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Step 2: Value-Risk Solution (VRS) Session

Value-Risk Solution Session (1-day)

 Team reconvenes and reviews the assessment output to identify the areas of greatest opportunities for improvement
and risk by looking at the highest level Indexes.

• Technology elements often
receive a disproportionate
amount of focus

• Missing or underperforming
Communications and
Management elements are
often difficult to identify and
address

Examples of Specific Risks Measured
Technology Marketing (Communications) Management
 Team experience with technology  Team’s experience in  Management team’s focus on
solution e.g. identifying and communicating financial objectives for project
• Development tools value propositions required to  Management team’s commitment to
• Database tools maximize user adoption change management as part of the
 Analysis / identification of what  Internal and external project delivery and implementation
technologies to develop, acquire communication process  Management team’s connectivity to
or license to provide solution
 Project success metrics customers / user adoption criteria
 Team’s knowledge, experience continuously monitored and  Management team’s focus on
and performance (KEP) with communicated to stakeholders overall project risk management
appropriate technology needed to
provide solution

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Step 2: Value-Risk Solution Session (continued)

Initiative Assessment has 16 categories of performance Results from the Value-Risk
metrics that are decomposed to identify the root cause Assessment Session – baseline
Performance Index
Current
(Customer) Performance
Index

Significant knowledge gaps identified
– this project will not meet ROI
expectations

Many risks and low knowledge

 Team reviews the assessment output at the
Fundamental Business Activity level to
identify areas with significant performance
issues (a level of detail underneath the
Technology, Marketing and Management
Indexes)

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 Baseline Performance Index
 Software identifies the risk and missing knowledge and it’s importance to
the success of the initiative

Performance Index –
(Customer)
 Identifies a program’s
baseline and compares the
delivery process of an
initiative against “Best-in-
Class” using NorthPoint’s
proprietary database.
 It enables early and full
disclosure of risk and a risk
management process
through an initiative’s
lifecycle.
 Designed to measure and
track either internal or
external performance
(e.g., partners, dependent
functions), optimum
performance is 95+ percent.

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 The team can now review the assessment output at the next level of detail (in this case we are reviewing the
“Knowledge of the Management, Administrator’s & Teachers Business Process” FBA)
 For each of the major areas assessed (component level-Fundamental Business Activity scoring) there is a
detailed statement with the Team’s score of the related the Steps, Tasks and Processes.
 Team scoring of the Steps, Tasks and Processes is the input to the Performance Score
 Lowest Performance Scores may indicate areas with the most significant ROI’s for improvements

(Customer)

Team Step, Task, Process
score
1.00 Project team has identified the solutions
and services that will improve the
constituencies business process.

0.00 Anticipated financial impact to the MNPS
business due to the use of the solution (0,5,
15,35,45,>55%).

1.50 Project team has identified the appropriate
adoption criteria for project through direct
communication with management.

-3.00 The management team endorses the value
delivered by the project.

-3.00 Completeness of the internal and external
marketing / communications strategy for the
project (55,65,80,90,95%).

1.00 Evaluation of any direct competing /
alternative solutions by the project team.

1.00 Project team has implemented a strategy
for MNPS project that will raise the barriers
to entry for alternative / competing
solutions.

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 The team can now identify the prescriptive improvements required to improve performance for each Step, Task
and Process
 Leaders are identified to address the areas of low performance. The Steps, Tasks and Processes in conjunction
with the notes recorded in the software from the facilitated session (scoring of the statements) provides the
knowledge required to commission the teams.

Team Step, Task, Process
score
1.00 Project team has identified the solutions • The project team has identified some of the solutions that will improve business processes .
and services that will improve the • A detailed analysis of the impact on the core business processes must be completed
constituencies business process. based on the improvements from the solutions and services .

0.00 Anticipated financial impact to the MNPS • A detailed analysis for each functional / process area impacted by the solution has not
business due to the use of the solution (0,5, been performed.
15,35,45,>55%). • Anticipated financial impact completed at a high level-detail level required.
1.50 Project team has identified the appropriate
adoption criteria for project through direct • Facilitated session on adoption criteria with process owners and key stakeholders
communication with management. has not been completed.

-3.00 The management team endorses the value
delivered by the project. • Value propositions need to be refined as detail is lacking.

-3.00 Completeness of the internal and external • Internal communications focused on additional capabilities not required training, time
marketing / communications strategy for the saved, reduction is reporting requirements, etc..
project (55,65,80,90,95%). • External communications have not included value propositions to customers.

1.00 Evaluation of any direct competing / • Evaluation completed of alternative solutions, but financial metrics not included in the
alternative solutions by the project team. business case.
• Gaps in future solution as compared to alternative solutions need to be documented and
1.00 Project team has implemented a strategy schedule created to address with new software provider.
for MNPS project that will raise the barriers
to entry for alternative / competing • Strategy is being worked on, but not completed.
solutions. • Barriers to entry have not been agreed to by executive management.

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 Budget Impact by Performance Category
 This table is a breakdown of the budget multiplier projections for this project by Performance
Category. It essentially identifies the budget variance projections by major category, assuming
this project stays on current course. Note that the category of management, the project’s
business model, financial case, business planning and performance factors.

Note: TTP stands for Time to Profitability

12


 Value Proposition Performance Scorecard
 As part of its risk assessment process, NorthPoint developed a method for analyzing the need/support
criteria of users and value offered to the user groups. It is critical for organizations to understand why
their internal customers desire certain capabilities, what value their solutions deliver to their internal
customers, from the internal customer’s perspective, and how to continually improve the number and
quality of value propositions through future use of the solution.
 An analysis of the initiative was performed against the twenty-two (22) value propositions defined by
NorthPoint for value creation in the enterprise. This process provides a repeatable method for
developing the financial business case of an initiative and quantifies value for the internal customer.
MPNS’s overall score of 62.17% for its initiative indicates some room for improvement.

Note: “0.00%” indicates that these value propositions have not been identified or are irrelevant to the project.

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 Knowledge Performance Summary Graph:
 The knowledge quantification process includes experience and delivery performance capabilities and
provides management diagnostics to determine and assist in gap management of “value-at-risk.”
 The relative heights of each of the “Best-in-Class” bars indicates the importance of each factor in its
relationship to a given projects’ overall Risk Index and success factors.

Knowledge Performance Summary Graph Edusoft
ERP Beta
Best in Class
35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Customer/User
Knowledge of the

Knowledge of the

Knowledge of the

Knowledge of the
Technology in the

Value Proposition
Quality Program

Management

Planning and Control
Enterprise Support

Executive Support
Experience ITI & ITMS

Enterprise Strategy

Enterprise Business
Required Functionality
Knowledge of the

Market Segment

Knowledge of the
Team Knowledge &

Knowledge of the
Enterprise

Knowledge
Environment
Competition

Operating
Enterprise

Knowledge of

Industry

Model
FTP

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The analytics underlying Initiative Assessment enables a thorough assessment of current
project performance and an accurate prediction of the performance impact (project time
and cost).
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Project Cost
ORIGINAL COST REFORECAST
Cost Multiplier
12
COST TO MARKET ADJUSTMENT PLAN MULTIPLIER PLAN
Current Cost
10 Performance
FORECAST COST TO MARKET $1,000,000 6.93 $6,933,210
8

6.93
6

4

2

0
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Performance Index

6
Time to Profitability/Breakeven© ORIGINAL TIME REFORECAST
5 TIME TO PROFITABILITY ADJUSTMENT PLAN MULTIPLIER PLAN
Time Multiplier

4 FORECAST TIME TO PROFITABILITY 30.00 3.24 97.15
Current Time
Performance (Months)
3.24
3

2

In a similar fashion Initiative
1
Assessment is able to forecast the
0
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% impact of improvement actions
Performance Index

15

Step 3: Establish Checkpoint Cycle

Establish Checkpoint Cycle
 Every 60-90 days team convenes and reruns the assessment
 Identify projects current course and speed, new risks, new opportunities
 Identify needed remedial actions
 Update indices, risk curves, and cost to complete

Lowering the risk index yields higher probability of success
 “Best-in-Class” is single digit risk index

60 Actual Plan NorthPoint data base:
Management system changing curves
 Early warning, feedback system accomplished only
50  Predictive, prescriptive outcomes when re-provisioning of
NorthPoint Risk

 Converting risk & knowledge to value project occurs.
40  Staying connected to change
Index

30

20 Initiative Assessment
focuses on what needs to
10 Checkpoint 2 be addressed now, not
Checkpoint 1 just what the team knows
0 how to fix
Baseline Assessment

Time

16

Maximizing the value from the initiative….NorthPoint’s “J” curve

 Are we doing all the right things?
 Fundamental Business Activity and Step, Task & Process assessment
 Are we doing the right things well?
 Do we have the required Knowledge, Experience and Performance?
 Once we know the most important areas to address… we can rapidly define improvement
actions
 The software can rapidly and accurately predict the impact (value, timing and cost) of the
actions
Initiative performance and value increase

How do we move in this direction?

Best-in-Class
$$

Break-even point

Risk increases

Time

17

Significant ROI delivered with the use of the Initiative Assessment
software-based tool
 Prescriptive and predictive
 What has to be done, how to do it, how to measure how well it is done
 Identifies the root cause of issues and reduces the expenditure by 20+% to 31%
 Project cost and time to profitability
 Identified budget overruns on 81% of the assessments (overruns averaged between 41% and 2X of the
budget)
 Identified schedule overruns on 86% of the assessments (overruns averaged between 55% and 150% of
the schedule)
 Reduces the plan and delivery time by 40+%
 Increase the rate of success
 Management assurance
 Gain deep understanding, buy-in and follow through across the organization from collaborative methodology
 Shorten the decision cycle
 Detail to make the decisions
 What provisions required for project
 Early conversion of risk to economic value
 Reduces the risk of value achievement by 43%-71%
 Improves the implementation value by 17%-43%
 Identifies and measures the gaps in required knowledge
 Skills and Knowledge, Experience and Performance (KEPTM) in IT improves by 21%
 Skills and KEPTM for the Business Leadership improves by 36% - 58%
 Process is rapid, knowledge-based and inclusive of all critical stakeholders impacted by the project
 Customer/user, partners, vendors
 Significantly increases team commitment to:
 Risk priorities
 Risk activities
 Risk mitigation
 Process is repeatable, consistent and measurable

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NorthPoint Initiative Asssement Overview_2013

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