Paper Title: Ubiquitous and Integrated Portfolio management of Federal & State projects

Transcription

1 Paper Title: Ubiquitous and Integrated Portfolio management of Federal & State projects Conference Theme : ARCHITECTING PROJECT MANAGEMENT for Redefining India.. Sub Theme - Strategic & Innovative Practices Portfolio, Programs & Project (PPP) Management for redefining India Author: Sreejith N.T. PMP Chief Officer, Software Development and Program Delivery ntsreejith@gmail.com, sreejith@netscitus.com Netscitus India Private Limited 6/17/2015

2 Keywords: Portfolio, Program management, Project, India, PMI, Integration, Internet of Things, Collaboration, dashboard, business score card, earned value, risks, dependencies, planning, aggregation, data analysis Abstract Every year central and state governments brings in the budgets and key projects and they are executed. We need federal portfolios to be defined and declared like Infrastructure, Defense, Health, Education etc based on the government's vision and road-map. All key programs and projects of state and central governments need to mapped to federal portfolio. Each project execution need to be managed and tracked as per the set timeline, cost, quality, risk etc. and will reflect in a scaled up fashion in the federal portfolio for the long term forecasting of completion of projects, milestone achievements, impacts of delays on other projects and portfolios and budget forecasting at country level and state level. Using the latest technologies like "Internet of Everything", intelligent project progress tracking points and projects' connection hubs can be created to monitor and track these projects. Best practices and learning from implementation of one project can be easily shared to another project. This paper envisages a uniform portfolio management by encompassing federal and state projects to a common vision, monitor and track to meet the objectives. This paper illustrates how the technological advancements, project management methodologies, existing data and information resources can be used effectively to continuously build projects for national development, prosperity and integration.

3 Contents Introduction... 4 Methodology... 5 Portfolio at Central Government Level - An example... 5 Program setup by integrating all linked projects An example... 5 Program level dashboards for stakeholders... 8 Dashboard design... 9 Integration of Programs at Portfolio level Best practices for Portfolio dashboards: Balanced score card : Earned value methodologies: Mobility and status Reporting in projects Innovations in automated data capture Internet of Things Data analytics Key challenges and critical success factors: Quantified benefits to business Lessons learnt Conclusion References Paper Author(s) Name... 16

4 Introduction India s GDP is growing at 7 to 7.5% level and that makes us one of the fastest growing economy in the world. India's GDP is at US$ 2.3 trillion in Our nation is in the focus of world leaders and economists for several years now. World bank suggests that India need to improve in public sector reforms, infrastructure, rural development, agriculture etc. India's Human Development Index is which is medium and India stands at 55 th out of 76 countries in Global Hunger Index. This indicates we have to travel more to become a developed nation. Transformation of a country to a developed nation with expected Human Development Indexes(HDI) has dependency on timely and cost effective execution of public and private projects in most efficient manner. To execute any project efficiently, the key control factors of the projects need to be known upfront during initiation and planning stage, then executed, monitored and controlled efficiently and effectively and closed with sharing best practices to other projects. India is progressing towards becoming a developed nation. But due to various challenges such as population growth, unplanned urbanization, resource availability, project delays etc, we are still away from the vision set by our national leaders and need to catch up to reach the set goals. According to McKinsey, population in cities in India are expected to reach 590 million in 2030!. We need disciplined but giant leaps to achieve the social indexes and make food, shelter, water and health available to all. Having proper project management system will help to predict when a project will get completed and what action need to be taken and what dependencies need to be highlighted for support to get the project on track. Today world is inter-connected like never before through people and devices. We have access to technologies and processes that will help to accelerate our journey towards eradication of ill health, poverty and lack of education. NITI Aayog (National Institution for Transforming India) envisions cooperative federalism through structured support initiatives and mechanisms among central government and states. NITI Aayog envisions to develop mechanisms that will develop executable plans at village level and aggregate these progressively to higher levels. This paper is aligned with that vision. Optimization of human talent, raw materials usage, resources like time, money etc is a must to get the expected project results. We have to transform public governance by leveraging best practices from corporate governance. Technologies and processes will enable leadership, instill disciplined approach, enable predictability and will energize public entrepreneurship for social development.

5 Pervasive and Integrated project, program and portfolio management will help our national programs and missions to convert vision to reality. This paper is envisaging and outlining a model on how project management and latest technological innovations in connectivity of humans and devices, collaboration technologies, availability of data and data management systems can help to achieve our national goals. Methodology In this paper, projects, programs and portfolio are linked together in hierarchical order based on relationship and dependencies. Every project will go through regular project life cycle of initiation, planning, execution, monitoring, control and closure. Once hierarchical order is established, during initiation and planning phase project status data collection frequency, data collection points and methods are established. This acts as the fundamental connectivity to ensure meaningful information flow happens across the projects to provide meaningful status and enables stakeholders to manage the dependencies and execute the project meeting Scope, Quality, Schedule, Budget, Resources, and Risk. Portfolio at Central Government Level - An example Diagram-1 is a demonstration of how a portfolio can be built at Federal government level comprising of various allocations in a financial year budget. In this example, three programs are shown as component programs of the portfolio taking each from health sector, Rural development and Human Resource Development sector. Each of these programs will be having numerous interlinked projects. Diagram-1 A Program setup by integrating all linked projects An example

6 Diagram-2 Diagram-2 is an illustration of how a Health mission program can be integrated across all the levels of execution starting from the lowest execution block (in this case a district) and how it can be aggregated to state level and from state level to country level. There will be bi-directional data flow in the system as directions, feedback, status update etc which will get summarized for reporting and actions at the appropriate levels. In this example, federal government s budget allocations are shown as the central government portfolio. The district level data is aggregated at state level and from state level, project is integrated to national level. Lowest level of execution can be brought further down to village level if necessary.

7 Following are the steps identified to plan and execute such a program. 1. Requirement analysis is done at micro unit level and determine the social / citizens needs, executive needs, legislature needs a. Required outcomes b. Key indicators to know the project direction and progress c. Data collection points to track d. Data integration points to the state level e. State level aggregation points f. Central level aggregation points g. Data points and devices in the system that can automatically update the progress to the National Information System h. Rules engine definition to determine communication and alert points 2. Requirements are consolidated at State level to determine top priority projects 3. State level projects are again consolidated at national level to build the program. 4. Key performance indicators, milestones, risks, issues, dependencies, critical success factors of the program are identified. 5. Automatable system status updates points are determined and integrated into the system. 6. Program is defined in the national information system with milestones and released for access to stakeholders for timely updates and views. 7. System is built in with necessary tracking mechanisms based on defined rules. Eg: If key parameters are below a threshold, system will be able to alert the stakeholders.

8 Program level dashboards for stakeholders Today s technology and communication mechanisms enables any Information management system to provide required alerts to stakeholders and initiate Call to Actions/decisions/approvals by stakeholders and decision makers with the help of information delivered on various computer devices or smart phones. With the increased mobile device usage, IT tools are readily available to provide information on mobile device and stakeholder can initiate required action through smart mobile device itself using touch screens. To get the benefit of ubiquitous and integrated portfolio management of government projects, we need to have all the projects connected to manage interdependencies. Stakeholders should be having any time access to the latest information about the projects as summarized dashboards which will help to take necessary steps based on reported data. Information and communication technology systems (ICT systems) are capable of providing these actionable reports at various hierarchy level with the required security and access control. This helps to increase the speed of execution and also eases the monitoring and controlling effort required. With faster decisions, easier monitoring and controlling, we will be able to execute projects more efficiently. Diagram-3 and Diagram-4

9 Diagram-3 and diagram-4 are examples of displaying programs and project status at aggregate level. In Diagram-3, aggregated status of required parameters are shown as Green, Yellow or Red for which definition is as following: Definitions Red = Beyond controllable threshold and will not be able to manage within the plan(may cause cost escalation or delayed completion), Yellow = Beyond threshold set, but recoverable to plan if actions are taken as identified by project team and stakeholders, Green=within the permissible threshold limit of the project. Dashboard system should allow user to do a driil-down and reach the project which caused the Red status for the program. System should have the mechanism to create alerts based on the rules defined in the system. Here Diagram-4 is a drill down to know which project is not on track. For example, if necessary, in an health mission program, system should allow to drill down to the state level and then to district level and show relevant data so that key stakeholders can take immediate action to bring the projects back to track. Once we have all the data in place and integrated across required projects, programs and portfolios dashboards can be designed and built for viewing and action by stakeholders at various authority levels. To build actionable drill-down for a system, relevant data should be collected in the system in the most easiest and consistent way. Following are the key aspects to be considered while building Executive level dashboards. Dashboard design To design an actionable dashboard, following points need to be taken into account Authorities and experts who will be the action takers and consumers need to be involved in deciding which factors are to be added to dashboards Use iterative approach, consult with stakeholders and develop dashboards. Must include relevant performance indicators in dashboard. Ensure consistent templates usage so that stakeholders will know where to look for required information faster. Ensure data is current by creating mechanisms in the system to collect status indicators at appropriate intervals.

10 Ensure direct status drill-down capabilitiese exist in dashboards to determine root causes and decide on action to be taken. At every stage in dashboard if the status is Yellow or Red indicators, Call to Action suggestion and suggested action owner is to be displayed based on the rules defined for the project. Integration of Programs at Portfolio level Once all the projects are linked at the program level to manage dependencies, risks and to take timely actions, next activity is to link the programs at portfolio level to determine inter-program dependencies and to manage these dependencies. In government sector there are lot of programs interlinked for dependencies and Diagram-5 is an example where a Hydro electric project and a rural electrification project are interlinked. Another example is National Mission for Clean Ganga Program which is interlinked and depending on many other programs from Central and state governments. Diagram-5

11 Best practices for Portfolio dashboards: As we improve in capturing and reporting project progress and status, we will be able to bring more and more insights into execution and it will help to develop proven models of score cards for further refinement of programs. Balanced score card : Balanced score card was developed by Robert S Kaplan, which focuses on attributes that create long term value for the customers in corporate context and in the context of public projects, citizens are the customers. Having measured project/program/portfolio outcomes helps the government and citizens to move to next level of nation building and Business score card helps for that. Mainly it focuses on following: Financial perspective, customer focus, Internal business processes, Organizational learning and growth. These factors can be defined well for government projects also. Eg:City of Charlotte. Business score card will help to understand how citizens should learn, communicate and work together to achieve national missions and it helps government to understand citizens expectations. Government machinery will understand what processes need to be changed to satisfy the citizens and missions needs. Earned value methodologies: Earned value analysis is a method that determines project's progress based on achieved results and forecasts completion schedule and estimates final cost. As we measure accurately the expenditure, completed work in an integrated portfolio management system, we will be able to calculate earned value of the project for the time elapsed. Since many infrastructure projects takes years, it is very important that earned value is calculated and final cost is reviewed regularly. Mobility and status Reporting in projects Today smart phones, latest project reporting software and mobile apps have made it possible to view, track, update and act on the project reports delivered on smart phones. Project data and status can be updated into the system from project work locations due to the smart phones. This trend will continue to increase and will become more pervasive as Digital India vision turns to reality, where more and more localities will get connected and come to the main stream communication channels of the nation. This communication easiness and ICT infrastructure is also helping to have communication among decision makers and accelerate decision taking where ever projects are waiting for key approvals.

12 Innovations in automated data capture Internet of Things Having the integrated and ubiquitous system alone cannot give expected results, unless there are efforts to provide latest data into the systems. So there should be sufficient automation to ensure latest data is entering into the system. This can be done through interfaces with other connected IT systems. For certain programs which are like missions, e.g data such as hospital records for Rural Health mission, number of students obtaining degree in a district for a skill India program, water quality parameters for clean water program etc will contribute to know the effectiveness of missions. Technology advancement is helping to increase more and more digital interfaces among people and devices. More and more intelligent devices are getting introduced day by day. It is estimated that number of connected devices will reach 50 billion by The ability to make smarter, more affordable and agile sensors coupled with easy access to the cloud is a major factor in this explosion.

13 Today these devises help to decide the energy requirements of buildings, smart cities etc. These devices also manage the lighting, heating, air conditioning requirements in real time. Connected and intelligent devices and sensors which can communicate to ICT systems and will also play a key role in providing automated reporting for large infrastructure projects like road, metro, rail transportation network etc. These devices can be configured for time bound updates and connecting to the network as per schedule and create alerts to the program management software. These will help to provide right information at the right time to make informed decisions. Data can be shared across systems and departments to avoid silos and disconnected work. Automated reporting will boost the efficiency and accuracy. We have a futuristic opportunity here to analyze the data from these devices using big data/analytics technologies and plan for the future expansions and automatically create expansion projects for cities and infrastructure like airports, metro network etc. This will help budgeting for capital expenditure of future years. Data analytics Digital India initiative will enable more and more rural India and it will create lots of data into the network. The envisaged portfolio management system will tap this data to create insights on futuristic projects required for social development and to measure effectiveness of implemented projects. Key challenges and critical success factors: India is a diverse country and connectivity is not homogeneous. Hence connecting and co-ordinating across various states, districts and villages will be a challenge. But Digital India initiative, National broadband network mission will be enabling to connect across the country seamlessly. Real time data capture for accurate progress reporting will be another challenge. Currently the program team visits the project locations and reviews the progress. But this is a siloed method and will not give adequate insights for faster proactive and reactive corrective measures required to keep the projects on track., corrective measures and decision making. Change management from existing methods to new model will be another challenge and can be managed with proper plan.

14 Quantified benefits to business Time and cost overruns have been a major problem affecting the implementation of Central Sector Projects. As per the report from Ministry of Statistics and Programme implementation, analysis of 749 projects at the end of March 2014 showed that 255 projects were running behind their original schedule. The time overrun ranged from 1 to 240 months for these projects. The cost overrun in the delayed projects has resulted 19.29% increase in original cost. The anticipated cost for all delayed projects together is Rs.`6,03, crore. When we consider similar statistics from states also, the tangible benefits and value from an integrated and ubiquitous portfolio management will be very clear. Lessons learnt From corporate world, Portfolio Management and Program Management Office have immensely helped organizations to manage their available resources to the best capacity and deliver the projects as per customer expectations. This also helps to quickly transfer best practices from one project to another one in related area and get the benefits. Projects in government sector have many more stakeholders involved and are complex and interdependent. Process driven and data driven project management approach will enable government projects also to execute efficiently and transfer the learning from one project to another faster. Execution of one project as per the expectation will motivate and enable other projects also to follow the path. Conclusion Jeffery K Liker, based on his 20 years of study of Toyota Motor Corporation describes 14 principles that are the foundation of the Toyota production system (TPS) in his book Toyota way. He categorized these principles into 4 P s Philosophy, Process, People/Partners and Problem solving. The Toyota way which is Toyota s internal training guide and Toyota Production system acts as the DNA for Toyota s continued and consistent success and customer satisfaction. Like that, our nation also can continuously improve in developing processes, growing people/partners and continuously increasing problem solving capabilities. This kind of consistent approach will help India to take the giant steps required to transform as developed nation.

15 Diagram-8 Every country and its people will have future aspirations and expectations. This diagram-8 depicts what India can achieve with proper integrated and ubiquitous portfolio management systems and futuristic integration systems in place. As mentioned in the innovative data collection options, integrated system will be able to leverage latest technologies like Internet of Things, Data Analytics etc to get the insights about the project activities, project progress, citizens responses. These insights will help to make our planning process much advanced by extrapolating the data to the future needs. This will help to have better planned cities, well connected villages and timely completed projects.

16 References [1] Liker Jeffrey K, The Toyota Way, 14 Management principles from the world s greatest manufacturer [2] N R Narayana Murthy, A Better India A Better World [3] Kaplan, Robert S, The Balanced Score Card [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] Paper Author(s) Name Sreejith N.T. PMP Chief Officer, Software Development and Program Delivery ntsreejith@gmail.com, sreejith@netscitus.com Netscitus India Private Limited Contact Phone number :