Maximize Resource and Investment: Project Portfolio Management (PPM) Case Study: Design and Delivery of a Global PPM Solution
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1 Maximize Resource and Investment: Project Portfolio Management (PPM) Case Study: Design and Delivery of a Global PPM Solution BBC 2013 November 13, 2013 Presenters: Randy Somermeyer : Managing Partner, BLCN Consulting Brian OReilly : Executive Consultant, Springbok Solutions Group
2 Agenda 0:00 Business Theme - Project Portfolio Management (PPM) What is it? Why do it? 0:25 Case Study Designing and Implementing a PPM Solution Overview and Scope Approach Benefits Lessons Learned 0:45 Open Questions
3 Project Portfolio Management Intake Initial Idea Framing / Features and Functions Business Vetting / Business Case Weighting / Prioritization Resource allocation and funding Project Management Project Lifecycle / Execution Business Case True-up Change Management (CM) Portfolio Management IDEA CONCEPT PROPOSAL DISCOVERY PRODUCT IMPLEMENT RESOURCE RISKS/ISSUES/ACTIONS / DECISIONS CHANGE STRATEGY ALIGNMENT MARKET CHALLENGES RISK/REWARD GROWTH/MAINTAIN
4 Business Problem People Process Technology Most PMO operations are tactical in nature, not strategic. Most know project management, not portfolio management. Poorly defined roles, accountability and ownership (common theme) Built up over time as CYA processes. No intake process defined No measurement or metrics. No executive involvement Silo-ed approach (throw over the wall). Reactive Sophisticated tools, complex implementation (as complex as ERP) PMOs tend to pick tools based on project capabilities, not capacity management (do I have people to do the work) or portfolio weighting as a priority (am I working on the most valuable stuff)
5 Industry Insight Typical PPM Solutions Most businesses implement PPM tool without understanding process or organizational impacts Vendor approach is usually a fast-tracked tool-based approach (C-level driven) PPM has a 70% failure rate (Gartner and Forrester) within the first year Day to day operations more complex with many manual workarounds Change not anticipated or managed Missed opportunities (integration, finance, procurement, business-value) Adoption is usually faster and less complex Gives PPM a bad name Survey of CIO's on PPM Adoption 10% Not mature enough Past experience Don t understand PPM value Don't know what PPM is Misc/Error 34% 9% 1% 46%
6 Business Value of a PPM Solution Many of the PPM benefits can be defined as bringing business value to the process and implementation PROCESS VALUE Do the right projects Organizational CM Organizational view Business workflow Cycle time metrics Accountability IMPLEMENTATION VALUE Fund the right projects Maximize resources Transparency Business Case Project CM Proactive alerts Auditable CM = Change Management
7 Case Study Global Operations - Challenges Property-Focused, Property P&L No clear understanding of country-specific accounting rules 1 CIO and 4 location-it VP s, 400 IT staff in 3 countries 4 different PM processes for 4 locations Average time for Intake is 206 days, not including project time! Some locations have partially separate IT teams 250+ project documents, 100 that were mandatory Duplication of effort by roles and locations No global view or standards One finance approval process, with local variation No project change management process Lack of job role ownership and accountability Tool Focused
8 Project Portfolio Scope Part of an overall IT Transformation Effort Originally focused on PPM system stand-up and the process work around Portfolio Management Program and Project Management, SDLC and Intake (BRM) were struggling to get off the ground This was added to our scope We utilized LEAN for ERP techniques, facilitation and process documentation Defined Intake, Project Management and Portfolio Management as an end to end design Performed As-Is, To-Be, then Optimized workflow and decision points Reduced data entry to just what was needed to get through each decision step no more, no less. Needed to integrate with other work efforts
9 Project Strategy Secured Leadership Commitment Was not performed prior to effort, as was stated CIO and CFO were key sponsors of the project Work stream leaders committed to success IT transformation Program Leader committed and Insistent Model and Streamline the Process As-Is, To-Be using Integrated Lean Aligned the Process and PPM tool to make sure it worked Planned multiple releases (Base operations, add finance, add Singapore, Add Macau) Imbed the new Process with Training, Work Instructions, CBTs and automation of approvals
10 Performed Intake and Project Lifecycle process analysis for all locations to understand process, issues and desires R1 Scope Work Scope Work Dev. Concept Desgn Disapprove scope TL1 Scope Work R2 Use Existing Dsgn DE1 Dev. Concept Desgn Disapprove scope Dev. Concept Desgn Disapprove scope Check Concept Dev. Concept Desgn Disapprove scope R2 Reject Approve R1 TL3 R3 EA1 EA1 TW1 Develop Spec. Create/Modify RN0-1 Design Model EA1 Check Concept Reject Approve R2 Reject Approve R3 DE2 DE3 Multithread Reqts Cgng Approve Results Model OK Change Concept Model not OK Change Design R2 A1 Submit Analysis D1 Doc. Detail Dwg TL3 TL3 C1 Check Drwgs Reject R3 R3 TL3 R3 Develop Spec. Multithread Reqts Cgng Model OK Model not OK Multithread Reqts Cgng Model OK Model not OK DE2 DE2 Submit Analysis Submit Analysis Multithread Reqts Cgng Model OK Model not OK D1 D1 R3 DE2 Approve Results Change Concept Change Design Check Drwgs Approve Results Change Concept Change Design Check Drwgs C1 C1 DE3 DE3 Approve Results Change Concept Change Design Check Drwgs C1 DE3 Scope Work Dev. Concept Desgn Disapprove scope EA1 Reject Approve R2 TL3 R3 Multithread Reqts Cgng Model OK Model not OK DE2 Submit Analysis D1 Approve Results Change Concept Change Design Check Drwgs C1 DE3 Design Eng R4 R4 Eng. Administrator Team Leader Analyst Drafter Technical Writer Eng Designer Checker Assign Number TL2 Approve R2 TW1 RN0-1 Create/Modify Design Model A1 Submit Analysis D1 Doc. Detail Dwg US Location Consolidated As-Is Design Eng Eng. Administrator TL1 Team Leader Analyst Drafter Technical Writer Eng Designer R3 R2 DE1 Use Existing Dsgn R1 R1 Assign Number TL2 Check Concept R4 R4 TW1 Develop Spec. RN0-1 Create/Modify Design Model Doc. Detail Dwg A1 Asia #1 WebEx Design Eng Eng. Administrator TL1 Team Leader Analyst Drafter Technical Writer Eng Designer R3 R2 DE1 Use Existing Dsgn R1 R1 Assign Number TL2 Check Concept R4 R4 TW1 Develop Spec. RN0-1 Create/Modify Design Model Doc. Detail Dwg A1 Checker Checker Design Eng Eng. Administrator TL1 Team Leader Analyst Drafter Technical Writer Eng Designer R3 R2 DE1 Use Existing Dsgn R1 R1 Assign Number TL2 Check Concept R4 R4 TW1 Develop Spec. RN0-1 Create/Modify Design Model Doc. Detail Dwg A1 Asia #2 - WebEx Checker R2 DE1 R4 Design Eng Use Existing Dsgn R1 EA1 Assign Number Eng. Administrator R4 R1 TL1 Scope TL2 Work Leader Team Analyst Drafter Technical Writer Eng Designer Checker Small US Loc. Identified process deltas, naming differences, metrics, skills, etc.
11 Findings from Process Analysis " Interactions were via paper, voice or ; many times requests are dropped, lost and / or require multiple follow-ups " There were no metrics or progress status on proposed work " Group interaction was not consistent and at times thrown over the wall " Projects were queued up and assumed by the business that projects are going to be worked on shortly which they were not " Projects could acquire funding, but not be worked on for some time - tying up capital due to pending IT resource capacity " Team members were performing detailed analysis for capital requests, vs. estimates. A project Capital True Up Analysis was not performed. " No global standard approach, terminology or tracking tools " Project portfolio visibility or awareness to impacts were not known " Project to project dependencies unknown until crisis discovery
12 A Single Conceptual To-Be Process was created iteratively with the Software Systems Integrator until the Final To-Be was completed As - Is Consolidated Process flows Ø Resolve issues root cause - solution Ø Address open items Ø New design points and metrics Ø Identify additional system opportunities Ø Identify system risks / issues address business issues Ø Identify process changes to reduce customization Conceptual To Final To - Be
13 Using the As-Is and To-Be processes, training requirements and job role impacts were defined to mitigate human risk Training Job role based needs Focused End User training Train the Trainer Use multiple trainings and support options to facilitate learning Work Instructions Role and Work-Segment Based Links process and technology Improve adoption by combining tool and process based documentation Organizational Change Normalize Job Roles / Descriptions Basis for Performance Plan validation Create a plan to address the job impacts prior to implementation Mitigate Stress with Role based transition
14 Success depends on an aligned collaboration between Business Analysis, Systems Integration, Project Management, Leadership and Business Representatives ALIGN ADOPT TRAIN GUIDE Process & Technology Alignment Process guidance Technical Configuration Hands on support Testing Project Management Policy / Procedure Communications Training Work instructions Leadership and User involvement Transition support and enforcement Managed through Daily Stand-Ups
15 Benefits of Integrated LEAN Reduction in process redesign over traditional approaches 2.5 weeks versus 12 weeks per work stream 8 weeks versus 6 months for end to end redesign Validation of process with chosen tools Validate new process to tool and tweaked Reduced overall configuration time by 50% 100% of complex application deployed in 3 months Lean proved to be successful in a couple of key areas Benefits to PPM Project 90% Reduction in Intake 20% Reduction in execution 12 times payback on investment 50% faster PPM deployment for same scope General Benefits 1 : 4 productivity gain over traditional process techniques Finds benefits outside of business case Faster to detail (devil is in the details) which means less gotchas in the configuration where it is more expensive to change LEAN is complimentary to an agile approach light appropriate Other Applications Accelerates agile design Light documentation documentation and timely to a typical iteration cycle.
16 Benefits of a PPM Solution (Tool and Process)
17 Lessons Learned Clearly define the problem, objective and strategy Clearly define stakeholders and their roles Lead with process As Is and To Be Perform faster, shorter and iterative process sessions Perform technology and process alignment Define business requirements where needed Maintain cultural awareness build into plan Manage the project plan and project scope Perform short daily standups with project team Develop a real communication plan, not just Ensure end user success with training and work instructions HAVE FUN
18 About your presenters Randy J Somermeyer Brian E.M. O Reilly 20+ years process consulting and training For Profit, Non-Profit and Government Transformation, process for system implementation and smaller scoped efforts Single location, multi-location, and global engagements Training: Integrated Lean, Facilitation, Business Analysis and communication IIBA Member Linked In rjs@blcn.net 20+ year consulting in Banking, Finance, Space, DoD, Construction, Manufacturing, Oil & Gas, O&G Exploration, Healthcare, Gaming, Games, Telecommunications, Hospitality, Distribution to name a few Currently certified in 8 industry-leading PPM tools Certified PMP, Scrum master, XP Coach and Facilitator 150+ PPM successful deployments Lived and worked in 19 countries Follow me on Follow me on LinkedIn: Brian O'Reilly boreilly@sboksolutions.com
19 Questions Open to questions on approach, case study and content
20 References Slide 5: Implementation Failure Rate Gartner, April 2012, Forrester, November CIO Survey of PPM Adoption - Lee Merkhofer, 2010 PPM user survey Slide 13: Work Instructions, High-Level Process, Process Overview HP Corporation, HP Discover 2012 Slide 15: Payback percentage, Process cycle time reduction, LEAN vs. traditional PDD, PPD, Case Study results March 2012, Accel Solutions Group and BLCN Inc. Payback ratio client confidential Slide 16: Case Study results, March 2012 client confidential
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