IT Portfolio Management in State Government

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1 IT Portfolio Management in State Government

2 Agenda 1 Challenges 2 Approach & Solutions 3 Questions and Discussion 2

3 Challenges along the way

4 Alarming statistics from industry analysts 21% 33% of all projects fail to complete or get implemented 33% of all completed projects experience cost overruns of between 10% & 20% 42% Standish Group of all projects do not meet their goals or business intent Gartner Group of all projects are delivered late or over budget PMI Standish Group 4

5 Maturity assessment revealed pain points Demand Management & Planning Understanding Costs Efficient Execution Demand higher than capacity Unprioritized demand Unknown capacity No clarity on cost of labor, projects, applications and IT services Inconsistent time tracking analysis Disconnected financial reporting Projects often seem to never end Lack of visibility into key project data Inefficiencies in the SDLC 5

6 Demand exceeds capacity: are we doing the right work? The gap between demand and capacity was still increasing! +35% increase <1 month 16% <3 months 13% 1,600 1,200 InComplete 62% >3 months 9% Existing Completed Submitted Completed Remaining Initial Backlog New requests in End 6

7 Multiple, disconnected processes & tools Small Projects SharePoint list Large Projects MS Project & Excel Support tickets SharePoint list Portfolio Management MS Excel & Clarity Time Tracking Custom web app ALM (version control) TFS

8 Approach & Solutions

9 Transformational approach 1 Transformational Agile and iterative People Design & pilot one capability Process Train Tools Support Repeat for other capabilities 2 3 Integrate tools into one platform Project Server & Professional SharePoint TFS 2012 UMT360 4 Mature capabilities One source of the truth Demand & portfolio management Resource management Application lifecycle management APM & financial management 9

10 Design the investment selection and prioritization process flow Set the Strategic Prioritize the Final Portfolio Pillars 1 Strategic Pillars 2 Selection Strategic Direction CREATE SELECT PLAN & MANAGE Submit Evaluate Prioritize & Optimize Assign, Execute & Evaluate Pre-flight list Pull to in-flight Work submission Administrator Validation Business Effort and Strategic Impact Unit Validation ROI Analysis Prioritization and Optimization Pre-flight Gate In-flight execution Closure Gate Parking Lot Parking Lot Completed Portfolio Analysis and Constraint Analysis Prioritization & Optimization 10

11 Translated the process flow to the tool Build business case Optimize the portfolio before starting the execution This is where execution starts! 11

12 Investment priorities based on strategic value Metrics questions as part of the online charter building Score individual projects Strategic Pillars scores by project Define strategic pillars Compare project scores 12

13 Investment selection based on cost constraints Value Perspective Efficient Frontier Force-in or out projects 13

14 Investment selections based on resource constraints Understand where and why you have resource constraints 14

15 Analyze and track investment execution performance In-flight projects health All work in only one place 15

16 Analyze and track investment execution performance 16

17 Analyze and track investment execution performance 17

18 Application Portfolio Management TIME Analysis Analyze applications from multiple dimensions and commit transformation decisions (e.g. Maintain, Enhance and Retire) Application Portfolio Triage using Gartner s TIME analysis for APM 18

19 Investment selection & execution drives transformation 8% 12% Transformation 10% 20% 80% from REACTIVE to PROACTIVE 50% 20% 19

20 Challenges along the way Challenges Organizational Isn t this an IT thing? Waiting on new leadership before we can define strategy Solutions Organizational WIIFM gets right work done Governance and process not tools Different speeds for different teams IT Yet another tool! Tried this before! IT One source of the truth Re-organized IT delivery around services, not systems Implementation Resistance to change Limited internal traction Implementation Persistent change management Executive champions Inclusive - See it, feel it, do it 20

21 Questions and discussions

22 Thanks!!

23 Improved Application Portfolio Management

24 Build & Connect Asset and Project Portfolios Create an enterprise data model and inventory of key portfolios Maintain relationships & dependencies between entities Derive cost of ownership and analyze asset, product, process portfolios Build and communicate transformation roadmap 24

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