SAP Benchmarking for Capital Project and Portfolio Management. Horst Hönig March 2012

Transcription

1 SAP Benchmarking for Capital Project and Portfolio Management Horst Hönig March 2012

2 SAP Benchmarking for Capital Project & Portfolio Mgmt Overview SAP Benchmarking for Capital Project & Portfolio Management provides a comprehensive framework to measure an organization s performance and maturity in managing its capital projects and portfolio. Performance Maturity Average Deviation of ROI (%) Bottom 25% Average Top 25% Align Capital Project Portfolio To Support Growth Strategy Enable Effective And Efficient Project Management Decisions Integrate And Harmonize Project And Portfolio Management Process Projects On Time, Budget and Scope (%) Propose Approve Setup Assign Resources Confirm Milestones Close and Handover Bottom 25% Average Top 25% Portfolio Planning & Management Project Administration Cost (% of Revenue) Project Management Bottom 25% Average Top 25% Resource Management 2012 SAP AG. All rights reserved. 2

3 SAP s Benchmarking Program Established end of 2004 Overview Complimentary service Available to SAP and non-sap customers Over 12,000 participants from over 3,000 companies Reach Partnerships with ASUG and other user groups Studies available in 12 languages Content Coverage Over 20 business process assessments Over 700 KPIs, over 1,000 Best Practices Over 300 peer groups 2012 SAP AG. All rights reserved. 3

4 Benchmarking Can Be Used in Many Ways Across the Business Transformation Lifecycle Opportunity Identification/Prioritization Identify key areas of process improvement opportunity Business Case Foundation Measure KPIs & best practices maturity to uncover value gaps Value Realization KPI and process measurement before or during a transformation On-going Performance Management Comparison of current performance to past performance Simpler, cost-effective benchmarking options are enabling customers to benchmark more broadly and proactively 2012 SAP AG. All rights reserved. 4

5 Capital Project and Portfolio Management Benchmarking Results - Sample Report

6 Executive Summary ILLUSTRATIVE DATA Average Deviation of ROI (in %) Avg. 5 Year Profit Growth (in %) Top 25% Average Bottom 25% Company Top 25% Average Bottom 25% Company % Of Projects On Time, Budget and Scope Project Administration Cost (% of Revenue) Top 25% Average Bottom 25% Company Top 25% Average Bottom 25% Company 2012 SAP AG. All rights reserved. 6

7 Effectiveness Metrics ILLUSTRATIVE DATA Performance Results Metrics Key Metrics Company Value Peer Group Average Top 25% Average Deviation of ROI (in %) 15.2 XX XX % of Projects On Time, Budget and Scope 50 XX XX % of Approved Projects with Business Case 90 XX XX % of Projects (by Portfolio Value) at Risk 20 XX XX % of Non-Compliant Projects (by Portfolio Value) 30 XX XX % of Non-Compliant Projects (by # of Projects in Portfolio) 5 XX XX Number of Portfolio Optimization Reviews/ Year 1 XX XX # Of Regulatory Citations / Year / B Rev 5 XX XX Ranking: Below Average Between Average and First Quartile First Quartile Outlier 2012 SAP AG. All rights reserved. 7

8 Efficiency Metrics ILLUSTRATIVE DATA Performance Results Metrics Company Peer Group Resource Utilization Rate (in %) 75.0 XX XX Profit Growth (in %) 2.5 XX XX Project Administration Cost (% of Revenue) 0.7 XX XX Time Spent on Project Reporting (in %) 20 XX XX Project Audit Cycle Time (in days) 10 XX XX Project Management FTE Cost (% of Project Admin. Cost) 20 XX XX Project Management IT Cost (% of Revenue) 0.1 XX XX # of Risk Management Application per Billion in Revenue 7 XX XX # of Standalone Systems and Manual Interfaces per Billion in Revenue 30 XX XX Ranking: Below Average Between Average and First Quartile First Quartile Outlier 2012 SAP AG. All rights reserved. 8

9 Best Practices ILLUSTRATIVE DATA Company Best Practice Importance Compared to Coverage Contrasted Against Peer Responses Portfolio Evaluation Portfolio Risk Management Portfolio Optimization Project Execution Resource Management Project and Portfolio Governance System Integration Top 25% Average Customer Coverage Customer Importance 1 = No Coverage 5 = Full Coverage 2012 SAP AG. All rights reserved. 9

10 Portfolio Evaluation ILLUSTRATIVE DATA Best Practice Listing 1 Organization has enterprise wide framework to evaluate and create balanced project portfolio ( based on risk, value, strategic criteria) Best Practice Ranking 1 = No Coverage 5 = Full Coverage 2 Comprehensive and documented criteria are used to evaluate, prioritize and finalize project requirements and build project roadmaps Organization has automated workflow and information flow from investment proposal to project closing Top 25% Customer Coverage Average Customer Importance 2012 SAP AG. All rights reserved. 10

11 Recommended Improvement Strategies ILLUSTRATIVE DATA Recommended Improvement Strategies and Current Capabilities Average Deviation of ROI (in %) Align Capital Project Portfolio To Support Growth Strategy R T T Utilize clear and consistent process for evaluating and comparing investment opportunities Drive real time monitoring and risk management processes Continually evaluate and govern the portfolio to optimize investments Avg. 5 Year Profit Growth (in %) % Of Projects On Time, Budget and Scope Enable Effective And Efficient Project Management Decisions T Adopt phase gate/ milestone process for project execution throughout the lifecycle Manage project information and processes in a single environment to maximize efficiency Optimize usage of operational project resources Project Administration Cost (% of Revenue) Integrate And Harmonize Project And Portfolio Management Process T T Standardized portfolio & project management processes and integrate with enterprise operations Establish corporate governance to ensure compliance with internal policies and external regulations R T Top 25% performance for supporting best practices and KPIs Between average and top 25% performance for supporting best practices and KPIs Strategies to focus: below average performance for supporting best practices, KPIs 2012 SAP AG. All rights reserved. 11

12 Benchmarking Process and Other Surveys

13 SAP Participant Benchmarking Process ½ to 1 day Normally 1 week ~1 hour session Survey Registration & Completion Data Validation, Analysis & Report Creation Validate Draft Report Finalize Report & Determine Next Steps Identify owner to complete survey Register and complete survey at nt.sap.com Clarify inputs where necessary Complete survey questionnaire Answer validation questions if needed Review draft report Clarify any outliers Highlight any inconsistencies Review final report & recommendations Agree (any) next steps Clarify survey and provide guidance as needed Validate data provided in the survey Analyze input and compare to peer groups (industry and organization size ) Present draft report to owner Revise report if inconsistencies found Revise analysis to zoom in if necessary Present final report to owner Highlight relevant findings Agree (any) next steps 2012 SAP AG. All rights reserved. 13

14 Available Benchmarking and Best Practices Surveys 1 Financial Excellence Responsive Supply Networks Strategic IT End to End Processes Finance Financial Compliance Financial Performance and Risk Management Public Sector: Finance Finance Shared Services Superior Customer Value Sales Effectiveness Customer Contact Center Customer Service and Support Consumer Products: Trade Promotions Mgt. Product and Service Leadership Product Lifecycle Mgt. Supply Chain Planning Warehouse Mgt. Transportation Mgt. Retail: Integr. Demand and Replenishm. Plan. Oil and Gas: Primary Distribution Fashion: Supply Chain Planning Professional Business Networks Operational Excellence Manufacturing Procurement Fashion: Procurement Lean Enterprise Healthcare: Accountable Care Organizations Business Intelligence Enterprise Information Management High Performance Analytics Enterprise Mobility Total Cost of Ownership Best Run IT Value Management Enterprise Architecture Implementation Services High Performing Assets EH&S Compliance Enterprise Asset Mgt. Utilities: Optimized Asset Mgt and Operations Capital Project and Portfolio Mgt. Enterprise Healthcheck - Manufacturing Enterprise Healthcheck - Services Public Sector Healthcheck Order to Cash Fashion: Order to Cash Retail: Merchandising Private Equity: Operational Assessment Best People and Talent 2012 SAP AG. All rights reserved. 14 HCM Talent Management HR Shared Services Benchmarking Survey Best Practices Survey Industry Specific Benchmarking Survey