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Unifying for success The UK & Ireland Customer Conference How to rationalise your project portfolios & reduce IT complexity Keith Rackley Director, Solutions Consulting BearingPoint, LTD Add company or user group logo here
Set the stage… What are portfolios? What do we mean by complexity in this context? What are the interactions between the two? What do we mean when we say rationalize? Unifying for success The UK & Ireland Customer Conference
The Project Challenge Poor success rates  Inconsistent management information  (metrics, success criteria) Distributed information repositories Ineffective governance Unifying for success The UK & Ireland Customer Conference IT organizations are seriously challenged with improving the efficiency of individual projects and the effectiveness of the project portfolio. Successful Failed Challenged Challenged:  Over time, over budget,  and/or didn’t meet requirements. Failed:  Project cancelled Project Success Rates Standish Group CHAOS Study 2004 51% 15%
Identifying the Issues Unifying for success The UK & Ireland Customer Conference Management Domain Questions Project Management Does your firm have inconsistent project  execution? Does you firm have incomplete project baselines and metrics? Portfolio Management Does your firm have difficulty rationalizing resource usage supporting project and service delivery? Does your firm have difficulty performing “air traffic control”? Program Governance Does your firm have difficulty evaluating alternative portfolio strategies? Does your firm have difficulty relating project deliverables to achieving firm strategy? People - Organization and Governance Does your firm have accountability problems for IT project issues? Does your firm have ineffective business-driven project investment prioritization? Process - IT Process Is your firm’s project delivery unacceptable with labor costs higher than the competition? Are metrics and life-cycles missing to support continuous process improvement? Technology - IT Process Automation Does your firm have technology implementations which do not meet value expectations? Does your firm have more than one tool or incomplete tool implementations for a given space? Maturity Questions If you answer “yes” to any of these questions, you may have a need…
Project Portfolio Management Unifying for success The UK & Ireland Customer Conference Maximum Business Value Project Management Portfolio Management Program Governance Maximize the efficiency of each project Maximize efficiency across projects Maximize effectiveness of investment planning
Project Portfolio Management (PPM) provides a set of IT Management capabilities that helps  IT  organize and govern their projects as a unified program to improve project success rates and ensure investments are going to the highest value initiatives.  Solution Approach Unifying for success The UK & Ireland Customer Conference Alignment Integration Maturity Project Portfolio Management  (PPM) Understand your  Projects (Project Management) Organize your projects (Portfolio Management) Maximize value of your investments  (Program Governance) Common Metrics/Methods Improved Success Rates Comprehensive Management Information Business Value Create a baseline   Assess current state   Create a heat map   Develop the target state   Perform a gap analysis   Create the transition plan   Execute the plan   Assess the business requirements  Create a project taxonomy  Create a data schema  Create the enterprise portfolio  Organize project data in a common repository  Create management visualizations and scenarios  Integrate/automate processes and workflows  Establish the governance framework  Review business goals and strategy  Assess investment and resource plans  Establish policies and high level processes for project proposals/approvals  Baseline the enterprise portfolio  Continually evaluate and adjust
Constructing/Managing the Portfolio Unifying for success The UK & Ireland Customer Conference Conduct project inventory. Create the baseline. (work with LOB to create understanding) Create high level policies and selection criteria Assess planning and performance. Organize projects. Create common policies, methodologies, PLC and metrics Manage the portfolio to maximize value to the business R I B Request Management Integration, e.g., resource & financial management Automation A life cycle evolves for the portfolio itself as maturity increases.
Business Driver Linkage Unifying for success The UK & Ireland Customer Conference SAMPLE
Portfolio Analysis Unifying for success The UK & Ireland Customer Conference SAMPLE Ease of Implementation Risk High Low High Bubble size:  represents relative savings amount Low Data Center  Consolidation Telco Rates Optimization Storage Consoli- dation Out- source  Email Wireless LANs Consolidate  Backup 7 Digit Dialing Helpdesk to  India Application  Server Consolidation Outsource  Application Maint. Common Application Software Platforms File Server Consolidation Standard MS Server Configuration Eliminate Effort Duplication Desk Side to ITS Shared Services GDC 70/70/70 Consolidate GDC Agreements Streamline Organization Inter Business Bandwidth
Getting Started: Strategy Assessment Unifying for success The UK & Ireland Customer Conference Sources Activities Key Deliverables Information  Gathering Current State Review &    Benchmarking Target State   Development GAP Analysis Business  Case Questionnaires & Surveys Existing Documentation BE & ITIL “ Best Practices” Tech. Research & Industry Trends ROI Research “ Current State” Assessment Operating Model  Processes Technology Organization Facilities Current State Survey Templates Future State Vision Principles Architecture Technology Business Case Scope GAP Addressed  Requirements Benefits Deliverables Risk Analysis Return On Investment GAP Analysis Implementation Maturity Roadmap Target Maturity GAP Analysis Process Technology Organization Facilities Transition Planning Strategic Roadmap Scope Plateau Definitions Implementation Plan Dependencies Timeline/Resources  Past Implementations & Research The results of the assessment describe specific ways in which value is created
Better planning and scoping Improved alignment to business goals and strategy Consistent policies and selection of projects  Holistic, easier, more accurate investment planning Improved communications: project sponsors, stakeholders, managers,  staff Optimal resource utilization and productivity On-demand availability of management information Increased transparency of financials and performance PPM Results Unifying for success The UK & Ireland Customer Conference Reduced Complexity Rationalized Portfolio Dramatically improved success rates Maximum value from investments
Unifying for success The UK & Ireland Customer Conference Q&A Keith Rackley Director, Solutions Consulting BearingPoint, LTD Add company or user group logo here

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Ppm V6 Ca User Conferance 20061013

  • 1. Unifying for success The UK & Ireland Customer Conference How to rationalise your project portfolios & reduce IT complexity Keith Rackley Director, Solutions Consulting BearingPoint, LTD Add company or user group logo here
  • 2. Set the stage… What are portfolios? What do we mean by complexity in this context? What are the interactions between the two? What do we mean when we say rationalize? Unifying for success The UK & Ireland Customer Conference
  • 3. The Project Challenge Poor success rates Inconsistent management information (metrics, success criteria) Distributed information repositories Ineffective governance Unifying for success The UK & Ireland Customer Conference IT organizations are seriously challenged with improving the efficiency of individual projects and the effectiveness of the project portfolio. Successful Failed Challenged Challenged: Over time, over budget, and/or didn’t meet requirements. Failed: Project cancelled Project Success Rates Standish Group CHAOS Study 2004 51% 15%
  • 4. Identifying the Issues Unifying for success The UK & Ireland Customer Conference Management Domain Questions Project Management Does your firm have inconsistent project execution? Does you firm have incomplete project baselines and metrics? Portfolio Management Does your firm have difficulty rationalizing resource usage supporting project and service delivery? Does your firm have difficulty performing “air traffic control”? Program Governance Does your firm have difficulty evaluating alternative portfolio strategies? Does your firm have difficulty relating project deliverables to achieving firm strategy? People - Organization and Governance Does your firm have accountability problems for IT project issues? Does your firm have ineffective business-driven project investment prioritization? Process - IT Process Is your firm’s project delivery unacceptable with labor costs higher than the competition? Are metrics and life-cycles missing to support continuous process improvement? Technology - IT Process Automation Does your firm have technology implementations which do not meet value expectations? Does your firm have more than one tool or incomplete tool implementations for a given space? Maturity Questions If you answer “yes” to any of these questions, you may have a need…
  • 5. Project Portfolio Management Unifying for success The UK & Ireland Customer Conference Maximum Business Value Project Management Portfolio Management Program Governance Maximize the efficiency of each project Maximize efficiency across projects Maximize effectiveness of investment planning
  • 6. Project Portfolio Management (PPM) provides a set of IT Management capabilities that helps IT organize and govern their projects as a unified program to improve project success rates and ensure investments are going to the highest value initiatives. Solution Approach Unifying for success The UK & Ireland Customer Conference Alignment Integration Maturity Project Portfolio Management (PPM) Understand your Projects (Project Management) Organize your projects (Portfolio Management) Maximize value of your investments (Program Governance) Common Metrics/Methods Improved Success Rates Comprehensive Management Information Business Value Create a baseline Assess current state Create a heat map Develop the target state Perform a gap analysis Create the transition plan Execute the plan Assess the business requirements Create a project taxonomy Create a data schema Create the enterprise portfolio Organize project data in a common repository Create management visualizations and scenarios Integrate/automate processes and workflows Establish the governance framework Review business goals and strategy Assess investment and resource plans Establish policies and high level processes for project proposals/approvals Baseline the enterprise portfolio Continually evaluate and adjust
  • 7. Constructing/Managing the Portfolio Unifying for success The UK & Ireland Customer Conference Conduct project inventory. Create the baseline. (work with LOB to create understanding) Create high level policies and selection criteria Assess planning and performance. Organize projects. Create common policies, methodologies, PLC and metrics Manage the portfolio to maximize value to the business R I B Request Management Integration, e.g., resource & financial management Automation A life cycle evolves for the portfolio itself as maturity increases.
  • 8. Business Driver Linkage Unifying for success The UK & Ireland Customer Conference SAMPLE
  • 9. Portfolio Analysis Unifying for success The UK & Ireland Customer Conference SAMPLE Ease of Implementation Risk High Low High Bubble size: represents relative savings amount Low Data Center Consolidation Telco Rates Optimization Storage Consoli- dation Out- source Email Wireless LANs Consolidate Backup 7 Digit Dialing Helpdesk to India Application Server Consolidation Outsource Application Maint. Common Application Software Platforms File Server Consolidation Standard MS Server Configuration Eliminate Effort Duplication Desk Side to ITS Shared Services GDC 70/70/70 Consolidate GDC Agreements Streamline Organization Inter Business Bandwidth
  • 10. Getting Started: Strategy Assessment Unifying for success The UK & Ireland Customer Conference Sources Activities Key Deliverables Information Gathering Current State Review & Benchmarking Target State Development GAP Analysis Business Case Questionnaires & Surveys Existing Documentation BE & ITIL “ Best Practices” Tech. Research & Industry Trends ROI Research “ Current State” Assessment Operating Model Processes Technology Organization Facilities Current State Survey Templates Future State Vision Principles Architecture Technology Business Case Scope GAP Addressed Requirements Benefits Deliverables Risk Analysis Return On Investment GAP Analysis Implementation Maturity Roadmap Target Maturity GAP Analysis Process Technology Organization Facilities Transition Planning Strategic Roadmap Scope Plateau Definitions Implementation Plan Dependencies Timeline/Resources Past Implementations & Research The results of the assessment describe specific ways in which value is created
  • 11. Better planning and scoping Improved alignment to business goals and strategy Consistent policies and selection of projects Holistic, easier, more accurate investment planning Improved communications: project sponsors, stakeholders, managers, staff Optimal resource utilization and productivity On-demand availability of management information Increased transparency of financials and performance PPM Results Unifying for success The UK & Ireland Customer Conference Reduced Complexity Rationalized Portfolio Dramatically improved success rates Maximum value from investments
  • 12. Unifying for success The UK & Ireland Customer Conference Q&A Keith Rackley Director, Solutions Consulting BearingPoint, LTD Add company or user group logo here