PPM Maturity Value Assessment for Your Company

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1 PPM Maturity Value Assessment for Your Company Date Sponsored by: Prepared For: Valued Customer Name Third party model, methodology and data provided by: Disclaimer: NOTICE - THIS INFORMATION IS PROVIDED TO YOU AS A TOOL 'AS IS' WITH THE UNDERSTANDING THAT THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. ALINEAN, IDC, AND CA DISCLAIM ALL WARRANTIES INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. ALINEAN, IDC, AND CA DO NOT WARRANT OR MAKE ANY REPRESENTATIONS REGARDING THE USE, VALIDITY, ACCURACY OR RELIABILITY OF THE TOOL OR THE RESULTS OF THE USE OF THE TOOL. IN NO EVENT SHALL ALINEAN, IDC OR CA BE LIABLE FOR ANY DAMAGES, INCLUDING THOSE ARISING AS A RESULT OF ALINEAN'S, IDC'S, OR CA'S NEGLIGENCE, WHETHER THOSE DAMAGES ARE DIRECT, CONSEQUENTIAL, INCIDENTAL, OR SPECIAL, FLOWING FROM YOUR USE OF OR INABILITY TO USE THE TOOL OR INFORMATION PROVIDED HEREWITH OR RESULTS OF THE TOOL'S USE EVEN IF ALINEAN, IDC AND CA HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE ULTIMATE RESPONSIBILITY FOR ACHIEVING THE CALCULATED RESULTS REMAINS WITH YOU. THIS TOOL IS NOT FOR USE BY OR FOR INDIVIDUAL/CONSUMER PURPOSES.

2 Executive Summary PPM Maturity Value Assessment Results for Your Company Based on your self assessment, Your Company is rated overall as Ad-Hoc in its current PPM Maturity Index. Based on the IDC Alinean PPM Maturity Assessment, your current overall PPM maturity is at the Ad-Hoc level. Ad-Hoc Standardized Optimized Your Current Maturity Level IT Governance IT Demand Assessment IT Demand Prioritization and Selection Business Relationship Management Project Management Resource Management Total Random procedures and processes Automated procedures and processes, but not standardized Standardized procedures and processes Continuous and automated improvement Comparing Your Company's current level of maturity with the average of participants in the Banking industry, located in Location Error, and with 3000 to employees illustrates that Your Company is above the average overall, including the following individual capability assessments: Your Company's Current Maturity Level Compared to Peer Average IT Governance Ad-Hoc Below Average IT Demand Assessment Above Average IT Demand Prioritization and Selection Ad-Hoc Equal to Average Business Relationship Management Ad-Hoc Above Average Project Management Ad-Hoc Above Average Resource Management Above Average

3 PPM Maturity Comparison

4 Recommended Improvements for Your Company To improve to in the categories for which you responded, it is recommended that Your Company implement the following improvements: Recommended Next Steps for Improvement IT Governance Automate budget, spending and project planning management and governance Automate a balanced scorecard approach to keep IT and project investments and organizational strategy aligned. Establish basic portfolio review boards to begin a centralized budgeting, spend management, planning and governance process. Implement management tools and processes to assess organizational change and the impact this has on budget, spending and project plans. IT Demand Assessment Standardize submitting, reviewing, prioritizing and managing opportunities for improvement. Make lists available to all stakeholders, organization wide. Across the organization, define in a standardized way the roles and responsibilities for opportunity assessment and management. Standardize the tools and processes to track and manage project business needs, providing tracking and management information to all stakeholders. IT Demand Prioritization and Selection Business strategy, goals, opportunities and needs priorities should be tracked and ranked for each project, as an integral part of the selection process. Begin measurement of project business value in order to determine the return on investments (ROI). Standardize the assessment of project costs, benefit, schedule and risks to assure that project approval and funding is optimized to invest in the right projects. Across the organization, define in a standardized way the roles and responsibilities for project prioritization, assessment and selection. The enterprise process review board should be standardized organization wide. Business Relationship Management Collect, communicate and track the list of approved projects and detailed schedule and portfolio information to stakeholders Standardize the collection, aggregation and tracking of project data, integrating the data into the enterprise wide portfolio management system and process. Standardize organization wide the tracking and management of project and portfolio information in order to ease the audit burden. Standardize the collection, aggregation and tracking of asset inventory, integrating the data into the enterprise wide portfolio management system and process.

5 Project Management Define common objectives for performance management. Automate the collection and measurement of project outcome metrics in order to identify performance and review lessons learned. With sponsor organizations and stakeholders, create an organizational standard for reporting and review process for portfolio performance management. Standardize the collection, management and reporting of project cost and schedule data versus expectations. Create a standardized set of tools and processes in order to continuously analyze and balance the portfolio performance versus expectations. Standardize the tools and processes to track and manage project benefit and risk analysis and management. Resource Management You should implement a standardized process to track resource utilization / availability and assure that the right resources are assigned to the right projects. Standardize across the organization the management of resources based on organization wide project priority tracking and management. An organizational standard exists for managing resources in pools so they can be shared across projects. The management of resources should be standardized organization wide beyond people to include equipment and other key resources for project success. Reports should be available organization wide in order to measure and improve enterprise and division performance. Benefits of Improving PPM Maturity for Your Company By implementing these recommended improvements and moving to your company is expected to gain annual financial benefits of $6,418,326, including: Improving productivity of managing projects and portfolio by 17%, savings $268,985 annually. Improving project team utilization by $349,263, saving annually. Implementing IT consolidation savings of 4.30% ($2,308,800 annually) via optimized governance and consolidation of software applications, hardware vendors and service suppliers, operations and data center ongoing operations spending and IT budget overruns / overtime. Reducing average project costs by 61.4% saving your company $589,380 annually via the reduction in project risks: o Reduce the frequency of project failures by 61.8% o Reduce project redundancies and overlap by 79.6% o Improve project / business alignment by 43.8% o Reduce the need for overtime by 50.0% o Reduce the frequency of over budget / behind schedule projects by 52.0%

6 o Reduce projects that fail to deliver on promised features and functions by 88.2% o Reduce compliance issues by 31.0% o Reduce SLA penalties and fines by 15.0% Improving project velocity by 31.2% on projects, delivering benefits of $7,200,000 annually Improving service levels, helping to drive end-user satisfaction and responsiveness, delivering $693,000 in annual benefits. Accelerating the value of portfolio management benefits versus other methods or offerings by 3.3 FTEs Implementing the proposed improvements, over the next three years your company can experience total benefits of $12,772,469. PPM Maturity Overview Portfolio project management Maturity is combining enabling technology with best practices to most cost efficiently manage multiple IT projects and deliver the highest degree of on-time, on budget, completion. Companies are assessed on their level of maturity across six capabilities. IT Governance - The process to manage budget, spending and IT project planning and oversight. IT Demand Assessment The process for submitting, reviewing, prioritizing and managing opportunities. IT Demand Prioritization and Selection The processes for: o Using priorities to rank and select projects o The review of cost, benefit, schedule, and risk before selection and funding o The definition of roles and responsibilities for prioritizing, assessing business value, and selection? Business relationship Management - The processes for auditing aggregating and communication of portfolio information to stakeholders and the tracking and management of asset inventory. Project Management - The processes of creating and collecting critical project metrics (i.e., cost and delivery schedule) comparing with actual project results, communicating with stakeholders and vendors and using results for project improvement. Resource Management - The assignment and management of resources to projects. Each capability is assessed on a 1-4 scale 1 - Ad Hoc -No strategy/policy

7 2 - - have established policies but not used consistently throughout the organization or for all projects 3 - Standardized - have established policies - standardized throughout the organization and for all projects meeting your criteria 4 - Optimized - standardized PPM with an ongoing process to learn from each project and use knowledge to improve Moving to higher levels of maturity across the capabilities will yield the following benefits: Improve Project Governance and Productivity reduce the costs of all IT projects and eliminate redundant and low yield projects as well as projects with a high risk of being non-compliant, over budget, behind schedule or a total failure. Improve IT Demand Assessment increase integration and resource utilization which will reduce hardware software, infrastructure and IT operations costs Improve IT Demand Prioritization and Selection Productivity increase the number of projects each IT staff can manage, and increase the utilization of resources across all projects thereby lowering average cost per project. Improve Project Velocity increases speed of project completion which reduces labor costs, and quickens the recognition of the business cost savings or revenue generation associated with the project Improve service levels decreases time and errors associated with projects enhancing user productivity and increases end-user satisfaction -. Accelerate Value of Portfolio Management increases the speed of adoption of portfolio management which reduces the total costs of IT projects and increases the productivity of the IT staff. The Value of Improving: IDC Research Results In IDCs research the overall assessment showed that initially companies are almost 50/50 between ad-hoc (no established processes) and structured (some processes but not consistent across the organization). After deployment of PPM solutions for 2-3 years over 60% move to level 3- standardized which means they have standardized best PPM practices across their organizations and 15% can be considered optimized meaning they had adopted feedback mechanisms to continuously improve their project management processes. Summary results for the surveyed respondents yielded the following metrics:

8 Manage 35% more projects Cost per project was reduced 37% Redundant projects dropped 78% IT staff productivity increased by an average of 14% Project failure rate dropped 59 percentage points On average, the total annual benefit per 100 users is $83,500 Payback in 7 months How PPM delivers Business Value Aligning projects with the business goals: At a high level view, PPM solutions equip IT management with the ability to organize their workload by grouping independent projects into initiatives or portfolios. Managing projects independently often results in defined silos that are more internally focused and not synchronized with the higher level business goals. PPM solutions allow the organization to position resources where needed, in a manner that is consistent with the overall business strategy. Reducing the number of redundant projects or projects failing: Setting governance for the entire organization, and reporting on project progress to all stake holders, reduces the incidence of redundant projects or projects failing to meet schedule, costs or requirements. The managers had no way of knowing who was working on what project. They had no way to control it. There was no roll up hierarchy for them, a respondent said. Identifying and allocating resources: Managing with PPM can decentralize the organization s resources, creating a greater ability to perform business critical work. In a typical hierarchy, several technicians wait for instructions from their manager. In this setting, it is difficult to know who is available and how much time they have. In a decentralized environment, PPM helps to show management what technicians are booked and others that can perform the required tasks. Benefits The financial benefits generated by PPM solutions are realized in the following areas: Cost reduction from resources consolidation, improved IT staff productivity and project optimization - $67,600 per 100 users annually (81% of total benefits); User productivity increase through reducing help desk issues associated with initial project deployments (first 30 days) - $700 per 100 users annually or 1% of total benefits;

9 Revenue increase from delivering revenue generating business applications to market faster - $15,200 per 100 users annually (18% of total benefits). Value of Improving PPM Maturity for Your Company Improving from Ad-Hoc to, Your Company can achieve $6,418,326 in estimated annual benefits including productivity improvements, reduced business risks and improved business agility. These benefits in summary are as follows: Ideal Estimated Annual Benefits of Optimizing with PPM Benefits Improve Productivity and Resource Utilization $618,248 Improve Integration $2,308,800 Improve Project Management and Governance (Indirect) $1,669,380 Improve Project Cycle Time (Indirect) $720,000 Improve Customer Satisfaction Levels (Indirect) $693,000 Accelerate Value of Portfolio Management $408,898 Total $6,418,326 Estimated Annual Benefits Estimated Annual Benefits (As % of Total)

10 Over a three year period, the improvement value is expected to total over $6,418,326, as follows: Three Year Benefits of PPM Maturity These benefits are detailed as follows:

11 Benefits Estimated Annual Value Improve Productivity and Resource Utilization $618,248 Improve Governance Productivity $32,022 Improve IT Demand Assessment $19,213 Improve IT Demand Prioritization and Selection Productivity $32,022 Improve Business Relationship Management Productivity $32,022 Improve Project Management Productivity $96,066 Improve Resource Management Productivity $57,640 Improve Resource Utilization $60,300 Improve Project Team's Time Management Productivity $6,306 Better Utilization of Global Sourcing $282,657 Improve Integration $2,308,800 Consolidating Applications $1,080,800 Consolidating Vendors and Software Suppliers $384,000 Consolidating Operations and Data Centers $422,000 Reducing Ongoing IT Operations Budget Overruns $422,000 Improve Project Management and Governance (Indirect) $1,669,380 Reduce IT Project Failures $92,700 Reduce Redundant IT Projects $191,040 Avoidance of IT Spend on Non-Strategic Projects $52,560 Reduce IT Project Time Overruns $120,000 Reduce IT Project Budget Overruns $46,800 Reduce Projects Needing Additional Development Cycles $79,380 Reduce SLA Penalties and Fines $4,650 Reduce the Risk of Regulatory Non-compliance $2,250 Additional ROI through Better Alignment and Portfolio Management $1,080,000 Improve Project Cycle Time (Indirect) $720,000 Reduce Internal IT Project Cycle Time $720,000 Improve Customer Satisfaction Levels (Indirect) $693,000 Increase in End-user Satisfaction $213,000 Improve Demand Management Responsiveness $480,000 Accelerate Value of Portfolio Management $408,898 Time to Portfolio Management Excellence $204,449 Time to Value $204,449 Total Annual Benefits from PPM Maturity $6,418,326 Average Annual Benefits per Project $16,046 Annual Benefits as Percentage of Total Annual Projects Budget 21.4% Note - Indirect benefits are scaled to 10.0% of estimated value. Next Steps PPM solutions can help the company implement the recommended improvements to achieve and $6,418,326 in annual benefits: Based on analyzing your responses, to get to the level, the following improvement actions are recommended for the categories that you completed: IT Governance Capability Response Recommended Next Steps for Improvement Manage the IT budget, spend, project planning, Ad-Hoc Automate budget, spending and project planning How PPM Can Help A PPM solution provides an automated scheduling tool (client or Web based) to translate

12 and governance process management and governance the project Work Breakdown Structure (WBS), roles and estimates into a time based schedule. The solution also integrates with external project scheduling tools and be able to calculate critical path. A PPM solution provides an environment to record project and program data aligning them to business objectives. These facilities should allow projects and programs to be grouped into portfolios and scenarios. A solution provides a standard process for capturing, storing and reporting project management plan information plus a process for routing Project Management Plans to business management for approval. A solution provides a standard process for capturing, storing and reporting project risk and issues management information plus a process for routing Project Risk and Issue Management Plans to business management for approval. Also, it provides on-screen and reporting analysis of project risks, issues and containment actions. Evaluate alignment of IT project spend with strategic initiatives Ad-Hoc Automate a balanced scorecard approach to keep IT and project investments and organizational strategy aligned. Establish basic portfolio review boards to begin a centralized budgeting, spend management, planning and governance process. Implement management tools and processes to assess organizational change and the impact this has on budget, spending and project plans. Establish a project management board Ad-Hoc Assess organizational changes and its impact on plans Ad-Hoc IT Demand Assessment Capability Response Recommended Next Steps for Improvement Systematically capture and catalog IT demand Define roles and responsibilities for assessing IT demand Identify business justification for each IT project Standardize submitting, reviewing, prioritizing and managing opportunities for improvement. Make lists available to all stakeholders, organization wide. Across the organization, define in a standardized way the roles and responsibilities for opportunity assessment and management. Standardize the tools and processes to track and manage project business needs, providing tracking and management information to all stakeholders. How PPM Can Help A PPM solution provides a standard process for capturing, storing and reporting program feasibility study information plus a process for routing this information to sponsors and business management for approval. The tool also has a document management feature. A PPM solution uses standard program profiling templates to generate a Program Work Breakdown Structure (PWBS), associated roles and effort estimates on each program task plus links to plans for projects within the program. A PPM solution provides a standard process for capturing, storing and reporting project charter information plus a process for routing Project Charters to sponsors and business management for approval. The tool also has a document management feature. IT Demand Prioritization and Selection Capability Response Recommended Next Steps for Improvement Assess business value for each IT project Review the business plan prior to funding a project Evaluate and prioritize IT demand Ad-Hoc Ad-Hoc Business strategy, goals, opportunities and needs priorities should be tracked and ranked for each project, as an integral part of the selection process. Begin measurement of project business value in order to determine the return on investments (ROI). Standardize the assessment of project costs, How PPM Can Help A PPM solution provides a standard process for capturing, storing and reporting program feasibility study information plus a process for routing this information to sponsors and business management for approval. The tool also has a document management feature. A PPM solution provides an environment to record program status and Key Performance Indicators (KPIs) such as Earned Value Analysis (EVA) or which can derive this information from program and project schedule data. Also, it provides on-screen and reporting analysis of program status and KPI information. A PPM solution provides a standard process for capturing, storing and reporting program risk and

13 benefit, schedule and risks to assure that project approval and funding is optimized to invest in the right projects. issues management information plus a process for routing Program Risk and Issues Management Plans to business management for approval. Also, it provides on-screen and reporting analysis of program risks, issues and associated containment actions. The integrated risk and issues management process will associate risks and issues to program management artifacts. A PPM solution uses standard program profiling templates to generate a Program Work Breakdown Structure (PWBS), associated roles and effort estimates on each program task plus links to plans for projects within the program. A PPM solution provides an environment and standard process for program closure and signoff. Also, it provides on-screen and reporting facilities to identify lessons learned and a mechanism for reflecting these lessons back into the program profiling and estimating templates. Define roles and responsibilities for prioritizing IT demand and selecting projects Across the organization, define in a standardized way the roles and responsibilities for project prioritization, assessment and selection. The enterprise process review board should be standardized organization wide. Establish a process review board Business Relationship Management Capability Response Recommended Next Steps for Improvement Communicate project data (strategic decisions and project performance) to appropriate stakeholders Capture and catalog project data Audit real-time portfolio data Track and manage inventory of assets (i.e. applications, servers) Ad-Hoc Collect, communicate and track the list of approved projects and detailed schedule and portfolio information to stakeholders Standardize the collection, aggregation and tracking of project data, integrating the data into the enterprise wide portfolio management system and process. Standardize organization wide the tracking and management of project and portfolio information in order to ease the audit burden. Standardize the collection, aggregation and tracking of asset inventory, integrating the data into the enterprise wide portfolio management system and process. How PPM Can Help A PPM solution provides mechanisms to run "what if" scenarios related to portfolio balancing. The solution should also have a portfolio maturity feature such as efficient frontier. A PPM solution provides a standard process for capturing, storing and reporting project change management information plus a process for routing Project Change Management Plans and project changes to business management for approval. Also, provide on-screen and reporting analysis of project changes and associated actions. The integrated change management process will associate project change requests to project management artifacts. A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. A PPM solution uses an automated scheduling tool (client or Web based) to translate the project Work Breakdown Structure (WBS), roles and estimates into a time based schedule. The solution should also integrate with external project scheduling tools and be able to calculate critical path. Project Management Capability Response Recommended Next Steps for Improvement Review lessons learned from each completed project Ad-Hoc Define common objectives for performance management. Automate the collection and measurement of project outcome metrics in order to identify performance and review lessons learned. How PPM Can Help A PPM solution provides an environment and standard process for project closure and signoff. Also, it provides on-screen and reporting facilities to identify lessons learned and a mechanism for reflecting these lessons back into the project profiling and estimating templates.

14 Review project data with sponsor organizations With sponsor organizations and stakeholders, create an organizational standard for reporting and review process for portfolio performance management. Standardize the collection, management and reporting of project cost and schedule data versus expectations. A PPM solution provides mechanisms to run "what if" scenarios related to portfolio balancing. The solution should also have a portfolio maturity feature such as efficient frontier. Compare project actuals versus planned A PPM solution provides a standard process for capturing, storing and reporting project risk and issues management information plus a process for routing Project Risk and Issues Management Plans to business management for approval. Also, provide on-screen and reporting analysis of project risks, issues and associated containment actions. The integrated project risk and issues management process will associate risks and issues to project management artifacts. Monitor and track realtime portfolio data Create a standardized set of tools and processes in order to continuously analyze and balance the portfolio performance versus expectations. A PPM solution provides an environment to record project and program data aligning them to business objectives. These facilities should allow projects and programs to be grouped into portfolios and scenarios. Integrate benefit and risk management into the control process Standardize the tools and processes to track and manage project benefit and risk analysis and management. A PPM solution provides an environment and standard process for project closure and signoff. Also, it provides on-screen and reporting facilities to identify lessons learned and a mechanism for reflecting these lessons back into the project profiling and estimating templates. Resource Management Capability Response Recommended Next Steps for Improvement Match people to work requirements based on skills and availability Manage resources based on project priorities Manage resource capacity and balance it against IT work demand Manage resources other than people Analyze enterprise and division performance against schedule You should implement a standardized process to track resource utilization / availability and assure that the right resources are assigned to the right projects. Standardize across the organization the management of resources based on organization wide project priority tracking and management. An organizational standard exists for managing resources in pools so they can be shared across projects. The management of resources should be standardized organization wide beyond people to include equipment and other key resources for project success. Reports should be available organization wide in order to measure and improve enterprise and division performance. How PPM Can Help A PPM solution uses standard project profiling and estimating templates to generate a project Work Breakdown Structure (WBS), associated roles and effort estimates on each task. A PPM solution uses an automated scheduling tool (client or Web based) to translate the project Work Breakdown Structure (WBS), roles and estimates into a time based schedule. The solution should also integrate with external project scheduling tools and be able to calculate critical path. A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be

15 configured to report portfolio, program and project status. About the Methodology and Research IDC conducted research on 13 companies that implemented project and portfolio management (PPM) solutions in order to uncover the pain points leading to deployment as well as the benefits that PPM offers. This study includes data and qualitative information from companies representing finance, insurance, research, public sector, manufacturing and leisure industries. Each participant was interviewed about their experience since deploying project and portfolio management tools (PPM) from CA, Microsoft, Compuware and SAP. The 13 surveyed companies from across the North America, Europe, and Asia Pacific regions averaged 32,004 IT users with an average of 2,879 IT staff. In general they took approximately 4.1 months to fully deploy PPM, and on average had been utilizing those deployments for 37 months. Across and average of 143 concurrent projects, the population experienced a typical reduction of project labor from 20 FTEs down to 18. About IDC IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting Clients can access IDC's technology intelligence through: Individual research documents More than 500 subscription research services One-on-one relationships with industry experts Custom consulting engagements World-class conferences and events

16 The IDC business value methodology is based on gathering data from current PPM users which is the foundation for the analysis. Based on these interviews, IDC performs a three-step process to calculate the ROI and payback period: 1. Measure the financial benefits from reduced costs (operations and infrastructure), user and IT staff productivity increases and increased revenue. 2. Ascertain the investment made in deploying the PPM solution and the associated training and support costs. 3. Project the costs and savings over a three-year period and calculate the ROI and payback for the deployed solution. Because the full benefits of the solution are not available during the deployment period, IDC prorates the benefits on a monthly basis and subtracts the appropriate amount for the deployment time from the first-year savings. IDC uses a discounted cash flow methodology to calculate the ROI and payback period. ROI is the ratio of the NPV and discounted investment. Payback period is the point at which cumulative benefits equal the initial investment. IDC uses a standard 12% discount factor (allows for risk and the missed opportunity cost that could have been realized using that capital). About Alinean This software tool and metrics were developed by Alinean, the leading developer of research, methodologies and software tools to measure and quantify the value and return on investment (ROI) from Information Technology (IT) solutions. Since 1994, the Alinean team has been researching the ROI and Total Cost of Ownership (TCO) of IT, and building tools to help quantify and improve the value in IT investments. Alinean's name comes from the Spanish word for "Alignment", highlighting Alinean's mission to be the leading provider of solutions that help IT vendors, consultants and business executives align IT investments with business strategies. With a database of over 20,000 IT organizations, Alinean has the unique capabilities to analyze and compare costs, and predict the impact of best practices and projects on organization financial performance and budget savings. Alinean's team has over a decade of experience in the practical development and application of ROI and TCO methodologies, models and IT value optimization tools including the first industry standard products (TCO Manager and TCO Analyst software) developed by Alinean's predecessor company (Interpose) that was sold to Gartner Group in In response to market demand for "next generation" IT Value solutions, the Alinean

17 team was reunited in Since its 2001 inception, Alinean solutions have been used for more than $32 billion of IT purchase decisions. Current customers are nine of the top ten global IT vendors, leading consultancies and Global 1000 companies. Additional information about Alinean and IT Value optimization resources can be found at

18 Appendix A: PPM Maturity Assessment Capability Responses and Comparisons for Your Company IT Governance IT Governance addresses the following questions: What are the processes that manage budget, spending, project planning and governance? How does the organization evaluate IT spending and projects versus organizational strategy? Are review boards established? How are the organization s changes and the impact assessed? Comparing Your Company s IT Governance Maturity with those of the peer group, illustrates that Your Company is below the peer average. PPM Maturity Comparison for IT Governance Your Company s responses for IT Governance were as follows: IT Governance Your Company s Response How would you best describe your organization s ability to: Manage the IT budget, spend, project planning, and governance process Evaluate alignment of IT project spend with strategic initiatives Establish a Project Management Board Assess organizational changes and its impact on plans Ad-Hoc Ad-Hoc Ad-Hoc Ad-Hoc

19 Demographic Responses for IT Governance IT Demand Assessment IT Demand Assessment addresses the questions: How does the organization collect and manage opportunities? How are roles and responsibilities defined for opportunity assessment and management? How are the business needs for projects identified? Comparing Your Company s IT Demand Assessment with those of the peer group, illustrates that Your Company is below the peer average. PPM Maturity Comparison for IT Demand Assessment

20 Your Company s responses for IT Demand Assessment were as follows: IT Demand Assessment Your Company s Response How would you best describe your organization s ability to: Systematically capture and catalog IT demand Define roles and responsibilities for managing IT demand Identify business justification for each IT project Demographic Responses for IT Demand Assessment IT Demand Prioritization and Selection IT Demand Prioritization and Selection address the questions: How are priorities managed, ranked and used for selecting projects? How is the business value of the project assessed? What is the process for reviewing cost, benefit, schedule, and risk before selection and funding? What are the definitions of roles and responsibilities for prioritizing, assessing business value, and selection? Have enterprise priority review boards been established? Comparing Your Company s Prioritization and Selection Maturity with those of the peer group, illustrates that Your Company is below the peer average.

21 PPM Maturity Comparison for IT Demand Prioritization and Selection Your Company s responses for Prioritization and Selection were as follows: Prioritization and Selection How would you best describe: How priorities are managed and ranked, used for selecting projects? The assessment of project business value? The review of cost, benefit, schedule, and risk before selection and funding? The definition of roles and responsibilities for prioritizing, assessing business value, and selection? The establishment of an enterprise process review board? Your Company s Response Ad-Hoc Ad-Hoc Demographic Responses for IT Demand Prioritization and Selection

22 Business Relationship Management Business Relationship Management addresses the questions: How does the organization communicate portfolio information to groups and stakeholders? How is project data aggregated? How are portfolios audited? How are assets/inventory tracked and managed? Comparing Your Company s Business Relationship Management Maturity with those of the peer group, illustrates that Your Company is below the peer average. PPM Maturity Comparison for Business Relationship Management Your Company s responses for Business Relationship Management were as follows: Business Relationship Management How would you best describe your organization s ability to: Communicate project data (strategic decisions and project performance) to appropriate stakeholders Capture and catalog project data Audit real-time portfolio data Track and manage inventory of assets (i.e. applications, servers) Your Company s Response Ad-Hoc

23 Demographic Responses for Business Relationship Mgmt Project Management Performance Management addresses the questions: How does the organization identify project outcomes and review best practices/lessons learned? Are sponsor organizations involved in the portfolio review process? How are actual cost and schedule data compared to forecasts/expectations? Are the portfolios actively analyzed and balanced? How are benefits and risk management integrated into the control process? Comparing Your Company s Project Management Maturity with those of the peer group, illustrates that Your Company is below the peer average. PPM Maturity Comparison for Project Management

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25 Your Company s responses for Project Management were as follows: Performance Management Your Company s Response How would you best describe your organization s ability to: Review lessons learned from each completed project Ad-Hoc Review project data with sponsor organizations Compare project actuals versus planned Monitor and track real-time portfolio data Integrate benefit and risk management into the control process Demographic Responses for Project Management Resource Management Resource Management addresses the questions: Are resources to projects assigned based on skill sets and availability? Is the management of resources based on project priorities? What are the processes to manage resource-pools? Does the organization consider resources other than people in the process? Is enterprise and division performance analyzed on a scheduled basis? Comparing Your Company s Resource Management Maturity with those of the peer group, illustrates that Your Company is below the peer average.

26 PPM Maturity Comparison for Resource Management Your Company s responses for Resource Management were as follows: Resource Management Your Company s Response How would you best describe your organization s ability to: Match people to work requirements based on skills and availability Manage resources based on project priorities Manage resource capacity and balance it against IT work demand Manage resources other than people Analyze enterprise and division performance against schedule Demographic Responses for Resource Management

27 Appendix B: Company Profile and Details for Your Company To create this analysis various data was collected to best profile Your Company and prepare a completely personalized analysis. For this assessment, defaults based on industry research from IDC (2008) were provided initially for all values. This information was reviewed and edited to create a more precise analysis. The information used in this analysis to assess the maturity, recommended improvements and value analysis is as follows: Your Profile Company Name Your Company n1 Company Industry Banking n2 Company Location United States n3 Number of Company Employees 3000 to n4 Annual IT Budget $100,000,000 n5 Number of IT Employees (FTEs) 254 n6 % of IT Budget Spent on Projects 30% n7 Number of IT Projects (annually) 400 n8 Number of IT Project Managers (FTEs) Number of IT Project Team Members (FTEs) Notes: 13 n9 51 n10 1. Enter your company name. 2. Select the industry that best matches your company. Based on the selected industry, default salary values will be provided. 3. Select the predominant country where your project management and IT teams operate. Based on the selected country, default salary and burdened labor rates will be provided. 4. Select the number of employees within your company. 5. Enter your company s annual IT budget. Spend should include costs on hardware, software, services, application development, QA labor and services, telecommunications and networking services, operations, and administration labor and overhead (facilities / power and cooling). Amount entered will be used to calculate the potential IT budget savings with increased PPM maturity. In order to modify your currency for this model, click the button to the left or select Currency Options from the Options drop down on the menu bar above. You may also set a default currency for your account. 6. Specify the total number of IT employees supporting this organization and employee group. The specification should include full time equivalents versus headcount, where a full time equivalent (FTE) is equivalent to the total number of person hours worked divided by the total hours worked by a full time equivalent over a year (usually 1880 person hours in the US). Used to estimate labor costs for IT and the opportunity for productivity improvements through PPM maturity. 7. Enter the percent spent on projects as a total of your company s annual IT budget. Projects include innovation, upgrade and update initiatives. 8. IT projects are initiatives targeted to drive innovation or perform a system update or upgrade to drive efficiency or to drive revenue. Projects are normally defined by a budget amount, typically $50,000+ in smaller organizations, $75,000+ in medium-sized organizations, and $100,000+ in large organizations.

28 9. Enter the total number of full time equivalents (FTEs) that are required to manage your company s IT projects each year. By default, the number is set to 5% of total IT headcount. 10. Enter the total number of full time equivalents (FTEs) that are required to execute your company s IT projects each year. By default, the number is set to 15% of total IT headcount. Your Maturity Level Based on the IDC Alinean PPM Maturity Assessment, your current overall PPM maturity is at the Ad-Hoc level. Ad-Hoc Standardized Optimized n1 Your Current Maturity Level Random procedures and processes Automated procedures and processes, but not standardized Standardized procedures and processes Continuous and automated improvement IT Governance n2 IT Demand Assessment n3 IT Demand Prioritization and Selection n4 Business Relationship Management n5 Project Management n6 Resource Management n7 Total n8 Notes: 1. Use the following descriptions to evaluate your level for each process area: Ad Hoc: Random procedures and processes (i.e. spreadsheets) : Automated procedures and processes, but not standardized (i.e. non-integrated point solutions) Standardized: Standardized procedures and processes (i.e. some integrated point solutions) Optimized: Continuous and automated improvement (i.e. PPM solution) 2. Your level reflects the average of the responses in this category, no check mark indicates that you did not complete all the questions for this category and assessment cannot occur 3. Your level reflects the average of the responses in this category, no check mark indicates that you did not complete all the questions for this category and assessment cannot occur 4. Your level reflects the average of the responses in this category, no check mark indicates that you did not complete all the questions for this category and assessment cannot occur 5. Your level reflects the average of the responses in this category, no check mark indicates that you did not complete all the questions for this category and assessment cannot occur 6. Your level reflects the average of the responses in this category, no check mark indicates that you did not complete all the questions for this category and assessment cannot occur 7. Your level reflects the average of the responses in this category, no check mark indicates that you did not complete all the questions for this category and assessment cannot occur 8. Your overall level is set to lowest level in total across all capabilities, in the tradition of a typical capability and maturity model whereby you are only as good as your lowest score / achievements.

29 Your Maturity Value Benefits Improve Productivity and Resource Utilization Improve Governance Productivity Improve IT Demand Assessment Improve IT Demand Prioritization and Selection Productivity Improve Business Relationship Management Productivity Improve Project Management Productivity Improve Resource Management Productivity Improve Resource Utilization Improve Project Team's Time Management Productivity Better Utilization of Global Sourcing Improve Integration Consolidating Applications Consolidating Vendors and Software Suppliers Consolidating Operations and Data Centers Reducing Ongoing IT Operations Budget Overruns Improve Project Management and Governance (Indirect) Reduce IT Project Failures Reduce Redundant IT Projects Avoidance of IT Spend on Non-Strategic Projects Reduce IT Project Time Overruns Reduce IT Project Budget Overruns Reduce Projects Needing Additional Development Cycles Reduce SLA Penalties and Fines Reduce the Risk of Regulatory Non-compliance Additional ROI through Better Alignment and Portfolio Management Improve Project Cycle Time (Indirect) Reduce Internal IT Project Cycle Time Improve Customer Satisfaction Levels (Indirect) Increase in End-user Satisfaction Improve Demand Management Responsiveness Accelerate Value of Portfolio Management Time to Portfolio Management Excellence Time to Value Total Annual Benefits from PPM Maturity Average Annual Benefits per Project Annual Benefits as Percentage of Total Annual Projects Budget No te - Indirect benefits are scaled to 10.0% of estimated value. Notes: Estimated Annual Value $618,248 n1 $32,022 n2 $19,213 n3 $32,022 n4 $32,022 n5 $96,066 n6 $57,640 n7 $60,300 n8 $6,306 n9 $282,657 n10 $2,308,800 n11 $1,080,800 n12 $384,000 n13 $422,000 n14 $422,000 n15 $1,669,380 n16 $92,700 n17 $191,040 n18 $52,560 n19 $120,000 n20 $46,800 n21 $79,380 n22 $4,650 n23 $2,250 n24 $1,080,000 n25 $720,000 n26 $720,000 n27 $693,000 n28 $213,000 n29 $480,000 n30 $408,898 n31 $204,449 n32 $204,449 n33 $6,418,326 n34 $16,046 n % n36 1. Improving PPM maturity can help to drive productivity improvements of the project team. This improves the process of project and portfolio management capabilities, including governance, opportunity assessment, prioritization, business relationship, performance management, resource management. Greater maturity drives better resource utilization, improves a project team's time management and drives better utilization of global and flexible sourcing. Select this item to see the underlying benefit calculations. 2. Improve the productivity of project management governance staff in order to automate mundane tasks and reallocate resources to more value added tasks. PPM provides the following features to drive project management governance optimization and productivity: > A PPM solution uses an automated scheduling tool (client or Web based) to translate the project Work Breakdown Structure (WBS), roles and estimates into a time based schedule. The solution integrates with external project scheduling tools and be able to calculate critical path. > A PPM solution provides an environment to record project and program data aligning them to business objectives. These facilities should allow projects and programs to be grouped into portfolios and scenarios. > A PPM solution provides a standard process for capturing, storing and reporting project management plan information plus a process for routing Project Management Plans to business management for approval. > A PPM solution provides a standard process for capturing, storing and reporting project risk and issues management information plus a process for routing Project Risk and Issue Management Plans to business management for approval. Also, it provides on-screen and reporting analysis of project risks, issues and containment actions.

30 3. Improve the productivity of project management opportunity assessment staff in order to automate mundane tasks and reallocate resources to more value added tasks. PPM provides the following features to drive opportunity assessment optimization and productivity: > A PPM solution provides a standard process for capturing, storing and reporting program feasibility study information plus a process for routing this information to sponsors and business management for approval. The tool also has a document management feature. > A PPM solution uses standard program profiling templates to generate a Program Work Breakdown Structure (PWBS), associated roles and effort estimates on each program task plus links to plans for projects within the program. > A PPM solution provides a standard process for capturing, storing and reporting project charter information plus a process for routing Project Charters to sponsors and business management for approval. 4. Improve the productivity of prioritization and selection staff in order to automate mundane tasks and reallocate resources to more value added tasks. PPM provides the following additional features: > A PPM solution provides a standard process for capturing, storing and reporting program feasibility study information plus a process for routing this information to sponsors and business management for approval. The tool also has a document management feature. > A PPM solution provides an environment to record program status and Key Performance Indicators (KPIs) such as Earned Value Analysis (EVA) or which can derive this information from program and project schedule data. Also, it provides on-screen and reporting analysis of program status and KPI information. > A PPM solution provides a standard process for capturing, storing and reporting program risk and issues management information plus a process for routing Program Risk and Issues Management Plans to business management for approval. Also, it provides on-screen and reporting analysis of program risks, issues and associated containment actions. The integrated risk and issues management process will associate risks and issues to program management artifacts. > A PPM solution provides an environment and standard process for program closure and signoff. Also, it provides on-screen and reporting facilities to identify lessons learned and a mechanism for reflecting these lessons back into the program profiling and estimating templates. 5. Improve the productivity of business relationship management staff in order to automate mundane tasks and reallocate resources to more value added tasks. A PPM provides the following features to drive business relationship management optimization and productivity improvements: > A PPM solution provides a mechanisms to run "what if" scenarios related to portfolio balancing. The solution should also have a portfolio optimization feature such as efficient frontier. > A PPM solution provides a standard process for capturing, storing and reporting project change management information plus a process for routing Project Change Management Plans and project changes to business management for approval. Also, provide on-screen and reporting analysis of project changes and associated actions. The integrated change management process will associate project change requests to project management artifacts. > A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. > A PPM solution uses an automated scheduling tool (client or Web based) to translate the project Work Breakdown Structure (WBS), roles and estimates into a time based schedule. The solution should also integrate with external project scheduling tools and be able to calculate critical path. 6. Improve the productivity of performance management staff in order to automate mundane tasks and reallocate resources to more value added tasks. PPM provides the following features to improve performance management optimization and productivity: > A PPM solution provides an environment and standard process for project closure and signoff. Also, it provides on-screen and reporting facilities to identify lessons learned and a mechanism for reflecting these lessons back into the project profiling and estimating templates. > A PPM solution provides a mechanisms to run "what if" scenarios related to portfolio balancing. The solution should also have a portfolio optimization feature such as efficient frontier. > A PPM solution provides a standard process for capturing, storing and reporting project risk and issues management information plus a process for routing Project Risk and Issues Management Plans to business management for approval. Also, provide on-screen and reporting analysis of project risks, issues and associated containment actions. The integrated project risk and issues management process will associate risks and issues to project management artifacts. > A PPM solution provides an environment to record project and program data aligning them to business objectives. These facilities should allow projects and programs to be grouped into portfolios and scenarios. > A PPM solution provides an environment and standard process for project closure and signoff. Also, it provides on-screen and reporting facilities to identify lessons learned and a mechanism for reflecting these lessons back into the project profiling and estimating templates. 7. Improve the productivity of resource management staff in order to automate mundane tasks and reallocate resources to more value added tasks. PPM provides the following features to drive resource management optimization and productivity improvements: > A PPM solution uses standard project profiling and estimating templates to generate a project Work Breakdown Structure (WBS), associated roles and effort estimates on each task. > A PPM solution uses an automated scheduling tool (client or Web based) to translate the project Work Breakdown Structure (WBS), roles and estimates into a time based schedule. The solution should also integrate with external project scheduling tools and be able to calculate critical path. > A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. > A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. > A PPM solution provides an environment to automatically derive portfolio level performance data based on data collected from constituent projects and programs. The solution should also support dashboards and portlets which can be configured to report portfolio, program and project status. 8. Improved PPM maturity lets organizations identify optimal resource allocations to optimize utilization and reduce resource costs. 9. Optimizing PPM maturity can help to improve the ability to save time and effort on entering and tracking time. 10. Improved PPM maturity lets organizations identify optimal outsourcing opportunities, then manage the use of geographically dispersed outsourced

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