Attachment 1 1. Introduction 1.1 Overview Philadelphia Gas Works (PGW) has used Microsoft Project and Project Server to manage Information Services (IS) Projects since 2006. In 2014, PGW upgraded its Project Server environment to Project Server 2013, but did not implement the Demand Management and Portfolio Analysis capabilities. PGW would now like to implement these capabilities with the assistance of a Certified Microsoft Partner. This document explains how the outlined Demand Management and Project Prioritization objectives, vision, and requirements provide PGW with demand management and portfolio analysis using the existing onpremises Microsoft Project Server 2013 implementation. 1.2 Vision PGW IS expects to use the Demand Management and Project Prioritization tools and methodologies to: Provide a standard project format and methodology. Provide procedures to standardize and efficiently manage project intake and approval. Ensure projects are evaluated according to corporate goals, possible risks, cost factors and any other relevant business drivers. Provide tools for selecting and analyzing projects according to cost and resource limits. Create and implement a web-based project request form and automated workflow to create and track projects through PGW s IS project lifecycle. 1.3 Scope The scope of this project will include implementing the capabilities existing in Microsoft Project Server 2013 to facilitate intake of projects requests and review and approval of requests utilizing the demand management and portfolio analysis capabilities available in the software. 1
Microsoft Project Server s Portfolio Analysis Project Prioritization and Driver Libraries functions will be enabled and configured in accordance with PGW requirements. A single Project Initiation Form (PIF) will be created to handle new project intake, create the project organization, and make a formal project approval request. PGW s existing Risk Calculator and Strategic Alignment (SAS) Calculator spreadsheets will be converted into web-based applications. These will be included as part of the Project Initiation process and also function as stand-alone applications. It is anticipated that projects may require creating additional Active Directory groups. No other changes to PGW systems are expected. 1.4 System Overview PGW s project management system uses Microsoft Project Server 2013. In addition, PGW implemented a third party add-on solution that provides significant pre-programmed additional functionality and dashboards to the on premise threetier Project Server environment. PGW has two project environments: Production and Development. All new functionality must be deployed, configured, and tested in Development before moving to Production. Portfolio Analysis, Project Prioritization, and Driver Libraries on the Project Server are enabled and configured according to PGW requirements. 1.5 Governance Before project definition and planning begin a business case must be submitted by the requesting department that describes the business need or opportunity being addressed. Before the project can move forward, the following elements are required: Defined project scope and size Business need or justification Executive sponsor Steering committee approval 2
Budget approval IS Project Governance includes local steering committees and an Executive Steering Committee (ESC). The ESC has three primary responsibilities; review and approve new projects, review and cancel projects that no longer meet objectives, review post implementation assessments to determine if objectives were met. ESC approval is required for projects that are deemed high risk, are estimated to cost at least $250,000, or will likely result in significant resource conflicts. All other initiatives are ranked and prioritized by local steering committees using the same methodology. 3
2. Demand Management 2.1 Project Initiation Form Requirements Project Managers and Portfolio Managers can initiate a project through the Project Center. In addition, all other Project Web Apps (PWA) users will use the Project Initiation Form. 2.1.1 Project Initiation Form Description PGW s PIF will incorporate the following features: Includes three tabs: Request Details, Strategic Alignment, and Review. - Request Details supplies all fields to describe the request. - Strategic Alignment includes all of the drivers and provides access to the Strategic Alignment and Risk calculators. - Review documents and tracks the project approval process. Includes access to two calculators: Strategic Alignment Calculator and Risk Assessment Calculator. - Each project must be evaluated by these calculators. - The outcome of the calculations allows the system to automatically select the appropriate driver(s) for the Strategic Alignment tab. Includes four phases to track and report on form progress: Draft, Submitted, Rejected, and Approved. Allows users to save a draft project form before formally submitting the project. Provides a historical record of all project submissions Creates an Enterprise Project type upon approval. An Enterprise Project includes the data from the Project Initiation Form. Will use values from Project Server where available (i.e. drivers, related Enterprise Custom Fields (ECFs) such as department, etc.) for ease of maintenance. Will be printable. 4
2.1.2 Security and Access All PGW projects: Can be created by any PWA user. Can only be edited by the project s creator and administrator. Can be viewed by all users. Must be deleted by an administrator. Are accessed by a tile on the PWA homepage (instead of the current Training Materials tile). 2.1.3 Pages and Views The PIF will contain a landing page with a button to create a new Initiation Form and a list view web part. Four views will be available: All forms, By Status (the default view), By Requester, and My Requests. - All Forms displays all forms without groupings or filters. Columns include: Project Name Program Requester Project Sponsor Requester Department Request Date Estimated Annual Benefit Budget Fiscal Year Non-Discretionary Status - By Status shows forms grouped by the Project Status field Proposed Start Date Proposed Finish Date - By Requester displays forms grouped by the person requesting the project 5
2.2 Strategic Alignment Calculator Business Requirements PGW currently utilizes a Strategic Alignment Calculator for business planning and evaluation purposes. The calculator is currently an Excel spreadsheet. The selected vendor will program the calculator to be available as an interactive web application. The calculator provides the functionality shown below. The Strategic Alignment Calculator will be available as a standalone web form. It can also be accessed from the Project Initiation Form. All categories, strategic options, and weightings are configurable by PGW administrators. For Categories and Strategic Options, the Active/Inactive status displays only current values. Inactive values will be available for historical reference. An administrator view is available to ensure that active weightings total 100% in each category. Selections and SAS Scores from the Calculator will be stored for historical purposes. A landing page will be provided for users to access saved SAS Results. The Calculator form will be printable If the Calculator is accessed through the Project Initiation Form, the total SAS score is populated on the Project Initiation Form. The Project Initiation workflow also uses the total SAS score to populate the SAS Score ECF and the related Strategic Alignment driver. Calculations are as follows: - Category Scores = Sum of (selected strategic options x Category weighting for each option) - SAS Score = Sum of all Category Scores A visual wireframe will be created. Technical requirements will be gathered for the application. 6
Attachment 1 Figure 2.1. PGW Strategic Alignment Calculator Strategic Alignment Calculator V4.0 Save Score Print SAS Score Project Name Storage Virtualization Your SAS Score 17% Reset Clear SAS Commercial Strategies Change Total 100% Customer 10% Financial 35% Internal Process 45% Learning & Growth 10% Information Technology Strategies Category Value 1 Change 4% Category Value 2 Change 9% Category Value 3 Change 2% Category Value 4 Change 2% y Customer Satisfaction 40% Yr End Cash Flow w /w o Loan & Storage 30% Stakehold relationship Management 15% Executive Development Program 15% Social Cost Index 30% Rolling 12 month collection rate 15% Increase 1st Call Resolution (Call Cntr) 5% Succession Plan 10% Quarterly Cost of GCR 30% Labor Cost per Customer 5% Improve FSD Completion Rate 5% New Hire Success Rate 15% y Operating Expense per Customer 5% Increase Appointments Kept 5% Time to Fill 10% Corporate Headcount 5% Reduce Cost per Foot of Gas Main 20% Implement Performance Mgmt Plan 15% y 2% O&M reduction 20% Reduce Cost Per Service Install 14% Internal Communications 15% Net Accounts Rec as a % of total billings 10% Maintain Number of miles of CI 5% y Progress on DW Project 10% Net w rite-offs as a % of toal billings 10% Emergency Response w ithin 1 hour 5% y % of depts utilizing new reporting tools 10% Employee Lost Time Incidents 5% y % Business Continuity Plan Completed 5% Increase Total New Sales Volume 5% Increase Interruptable Vol to Trans 3% Stabilize PLP Sales in FY06 3% Increase $ from OSS, LNG, Capacity 5% Total 100% Total 100% Total 100% Total 100% *** Be sure to hit the Reset button after performing any Change operations *** 7
Attachment 1 2.3 Risk Assessment Calculator Business Requirements PGW currently utilizes a Risk Assessment Calculator for business planning and evaluation purposes. The calculator is currently an Excel spreadsheet. The selected vendor will program the calculator to be available as an interactive web application. The calculator provides the functionality shown below. The Risk Assessment Calculator Excel spreadsheet will be created as an interactive web application. It will also be available as a standalone web form. All Risk Categories, Risk Values and weightings are configurable by PGW administrators Active/Inactive status is required for all Risk Categories and Risk Values Calculator results will be stored for historical purposes A landing page will be available for users to access saved Risk Assessment Results The calculator form will be printable When the calculator is accessed from the Project Initiation Form, the total Risk Score will be populated on the Project Initiation Form. The Project Initiation workflow also uses the total Risk Score to populate the Risk Score ECF and the related Risk driver. 8
Attachment 1 Figure 2.2. Risk Assessment Calculator Risk Assessment Calculator Project Name Collections -- Rack & Dispatch 28 28 28 Score 28 16 12 0 Save Score Clear Score Category Low Risk Characteristics L M H High Risk Characteristics The business benefit of the project is: Well defined Y Poorly defined The scope of the project is: Well defined Y Poorly defined The project sponsor is: Identified, committed, and enthusiastic Y Not identified or not enthusiastic The business customer commitment level is: Passionate and enthusiastic Y Passive and hard to engage The project manager has: Similar experience on multiple projects Y Little experience on similar projects The project team is: Located together Y Dispersed at multiple sites Project management processes and procedures are: Familiar and will be utilized Y Not familiar and will not be utilized The business requirements of the project are: Understood and straightforward Y Very vague or very complex The system availability requirements include: Windows of availability and downtime Y Availability on a 24/7 basis The technical requirements are: Similar to others in the company Y New and complex The data requirements are: Simple Y Complex The number of locations to deploy to is: One Y More than four The number of system interfaces are: One or none Y More than five The number of organizations this will affect is: One or two Y More than five The total estimated effort hours are: Less than 1,000 Y Greater than 5,000 The total estimated project duration is: Less than three months Y Longer than one year The subject matter is: Well known by the project team Y Not well known by the project team The project is dependent on: Zero or one outside project or team Y Three or more outside teams or projects Business processes, procedures, policies require: Little or no change Y Substantial change Changes to the organizational structure require: Little or no change Y Substantial change The technology being utilized consists of: Existing software, hardware, languages, databases, and tools Y New software, hardware, languages, databases, or tools (or new releases) The quality of current data is: Well defined and simple to convert Y Poor or complex to convert If a package implementation: No (or minimal) customization is needed Heavy customization is needed If a package implementation: The product or release is stable The product or release is new to the market If a package implementation: The vendor is familiar in this market The vendor is new to this market 9
Attachment 1 2.4 Project Governance and Workflow 2.4.1 Project Initiation Workflow The PIF will use a SharePoint workflow to support the submittal and approval process. This workflow will be activated by a Create Project command and follows the process explained here. 1. The project requestor or submitter may save the PIF in a Draft status when this form is created. 2. When the requestor or submitter submits the PIF, the form s Status is set to Submitted and an email notification of the submission is sent to the project approver. 3. If the approver rejects the PIF, the form s status is set to Rejected and an e-mail notification of the rejection, including the rejection reason, is sent to the Requestor/ Submitter and sponsor. The rejected form is saved for historical reference. 4. When the PIF is approved: The form s status is set to Approved. A project is created in PWA based on the value that the Approver selected in the Project Type field on the PIF. E-mail notifications are sent to the Requester, Sponsor, and Project Manager. The Project ID is created on the PIF. The PIF is saved for historical reference. 2.4.2 Project Workflow Requirements A project will include the following Workflow Phases: Initiate, Analysis, Design, Build Test, Implement, and Complete. Certain Phases may include more than one Stage. Table 2.2, Project Phases and Stages, provides extended descriptions of each Workflow Phase and its associated Stage(s). 10
All projects will use a standard project server workflow to ensure compliance and data integrity. The requirements for the workflow are as follows: A project may be created in PWA manually using the Project Center or automatically using the Project Initiation Form. Projects created in PWA begin in the Define stage of the Initiate phase. - All required fields except Committee Date, Outcome and Reviewing Committee must be populated to enter the Select stage of the Initiate phase. Committee Date, Outcome, and Reviewing Committee fields must be populated to move the project into the Analysis phase. All Strategic Drivers, including the SAS and Risk Scores, must be populated by the Select stage of the Initiate phase. IT PMO leadership will update projects to include the outcome of committee meetings and any related committee comments. - If the committee decides to defer the project, the project remains in the Select stage - If the committee decides to cancel the project, the project moves to the Cancelled stage. - If the committee decides to approve the project, the project moves to the Analysis phase. Committee Date, Outcome, and Reviewing Committee fields must be also completed to move to the Analysis phase. Email notifications will be sent to Project Managers after committee results are submitted. If the Inactive Status is set to Cancelled at any time during the project approval process, the project workflow moves to the Complete Cancelled phase. Projects may be placed in On Hold status and resume process flow. Phases and Stages will be configured as shown in Table 2.2 below. 11
Attachment 1 Table 2.1. Project Phases and Stages Workflow Phases Stages Email Content Initiate Define Email notification sent upon moving to Initiate- Select phase Initiate Select Email sent to PM notifying about Committee Outcome Required Fields to Enter Stage Project Name Start Date Owner (Project Manager) Project Sponsor Client Project Sponsor Description Project Size Project Class Project Budget Type Fiscal Year Payback Proposed Cost Proposed Start Date Proposed Finish Date Committee Outcomes Approved (move to Analysis) Rejected (move to Cancelled) Deferred (remain in this stage PDP Displayed Project Details Strategic Drivers Schedule Project Details Strategic Drivers *Required completion at this stage Schedule Read-Only Content Notes 12
Workflow Phases Stages Email Content Required Fields to Enter Stage SAS Score Risk Score Analysis Analysis Committee Outcome Committee Date Committee Outcomes PDP Displayed Project Details Strategic Drivers Schedule Design Design Project Details Strategic Drivers *Read only at this stage Schedule Build Build Project Details Strategic Drivers *Read only at this stage Schedule Test Test Project Details Strategic Drivers *Read only at this stage Schedule Implement Implement Project Details Strategic Drivers Read-Only Content Committee Outcome, Committee Date, Proposed Cost Committee Outcome, Committee Date, Proposed Cost Committee Outcome, Committee Date, Proposed Cost Committee Outcome Committee Date Proposed Cost Committee Outcome Notes 13
Workflow Phases Stages Email Content Required Fields to Enter Stage Committee Outcomes PDP Displayed * Read only at this stage Schedule Complete Complete Project Details Strategic Drivers * Read only at this stage Schedule Complete Cancelled Project Details Strategic Drivers *Read only at this stage Read-Only Content Committee Date Proposed Cost All workflow controlled fields and drivers All workflow controlled fields and drivers Notes A project can be moved to Cancelled if it is Rejected by Committee, or Inactive Status = Cancelled at any time 14
2.4.3 Project Level Custom Fields PGW expects the PIF will require the following custom data fields. Table 2.2. New PIF Custom Fields Field Label Field Type Stage Where Field is Required Business Need Multi-line Text Define Estimated Annual Benefit Project Size Fiscal Year Non- Discretionary Cost Single-select from Project Sizes lookup table Note: Lookup Table to be created Single-select from Fiscal Years lookup table Note: Lookup Table to be created Single-select drop down from Yes/No lookup Table Define Define Define Proposed Cost Cost Define Proposed Start Date Proposed Finish Date Payback # years Date Date Number Define Define Define SAS Score Number Define Risk Score Number Define Committee Date Date Select 15
Field Label Committee Outcome Reviewing Committee Committee Comments Spending Expiration Date Field Type Single value selected from Committee Outcome Values lookup table Single value selected from Committees lookup table Multi-line Text Calculated as follows: Formula: If Project Budget Type = Capital, display 8/31/FiscalYear+1; If Project Budget Type = Operating, display 8/31/Fiscal Year. Example: If a project has a Project Budget Type of Capital and a Fiscal Year of 2015, the Spending Expiration Date is 8/31/17. If the project has a Project Budget Type of Operating, the Spending Expiration date is 8/31/16. Stage Where Field is Required Select Select 16
2.4.4 Lookup Tables PGW s Information Services project methodology will require creating new Lookup Tables. PGW anticipates the need for the tables shown below. Table 2.3. Lookup Tables and Fields Lookup Table Name Field Type Field Values Project Sizes Fiscal Year Committee Outcome Values Committees Text Number Text Text Under $50,000 $50,000-$249,999 $250,000 and above 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Approved Deferred Rejected Local Steering Committee Enterprise Strategic Planning Committee 2.5 Project Detail Pages (PDP) PGW anticipates that Enterprise Projects will require a new Project Detail Page. The Project Detail Page must display a link to the PIF used to create the Enterprise Project. Fields will be grouped in associated sections and columns as shown in the page mockup in Figure 2.3 below. 17
Figure 2.2. Project Detail Page Fields 18
3. Project Prioritization and Portfolio Analysis PGW will be implementing Portfolio Analysis functions using Microsoft Project Server. This functionality requires four new components. Driver Library Prioritization Process Strategic Alignment PDP Portfolio Analysis Views These are discussed in the sections below. 3.1 Driver Library PGW has selected drivers that align with corporate initiatives. See Table 3.1 below for descriptions of the drivers in the Driver Library. 19
Table 3.1. Driver Library Driver Name Description None Low Moderate Strong Extreme Time to Overall project 1 year or more 9-12 months 6-8 months 3-5 months 0-2 months Market Lifecycle Replacement Consumer Satisfaction Project Risk Improve Product Quality Maintain critical infrastructure to ensure safety, reliability and support Improve consumer satisfaction through implementing standardized customer service processes, grow the number of customer service relationships and improve the nature of each relationship. Level of risk as determined by Risk Calculator Implement process improvements and best practices in order to improve No lifecycle replacement requirement Does not impact consumer satisfaction Small increase in consumer satisfaction 20 Should be done to meet ongoing support Moderate increase in consumer satisfaction High increase in consumer satisfaction Extreme increase in consumer satisfaction 131 and higher 101-130 61-100 31-60 0-30 risk factor Reduces defects by less than 5%, or attains a service-level agreement of 90% or less. Reduces defects by up to 10% or attains a service-level agreement Reduces defects by up to 15% or attains a service-level agreement between 95% Reduces defects by up to 20% or attains a service-level agreement Reduces defects by more than 20% or attains a service-level
Driver Name Description None Low Moderate Strong Extreme product quality as measured by SLA levels between 90% and 95% and 97% between 97% and 98% Improve employee work life Standardize and streamline crossfunctional processes Expand into new markets and segments Implement approved moraleboosting techniques in order to measurably improve employee work life Implement a library of standardized functions across processes, in order to reduce the cycle time of processes across the organization as a whole and increase consistency in operations. Expand revenue growth aggressively by penetrating new No improvement in employee work life Does not improve process cycle time for any processes. Does not grow revenue from any markets and segments Small improvement in employee work life Improves process cycle time for up to 2 processes Grows revenue from new markets and 21 Moderate improvement in employee work life Improves process cycle time for up to 3 processes Grows revenue from new markets and segments by Significant improvement in employee work life Improves process cycle time for up to 4 processes Grows revenue from new markets and agreement of 99% or more No improvement in employee work life Improves process cycle time for more than 5 processes Grows revenue from new markets and segments
Driver Name Description None Low Moderate Strong Extreme markets and expanding reach to segments of penetrated markets. segments by up to $100k $100k - $500k segments by $500k - $1M by more than $1M Financial Benefit Strategic alignment Level of financial impact or number of years for Simple Payback Project alignment with corporate goals and strategic metrics as determined by the Strategic Alignment Calculator Indirect impact/benefit difficult to quantify or Simple Payback is more than 5 years Low financial benefit or Simple Payback is more than 3-4 years Moderate financial benefit or Simple Payback is more than 2-3 years Low financial benefit or Simple Payback is 1-2 years Low financial benefit or Simple Payback is less than 1 year 0-20 21-40 41-60 61-80 81-100 22
3.2 Driver Prioritization The successful proposer should expect that default driver prioritizations will be configured after the drivers are implemented. Additional prioritizations will be conducted on an as-needed basis by Portfolio Managers. Department filtering is not necessary as drivers apply to all projects and departments. Since there is no existing prioritization model, PGW will use the calculated prioritization method. 3.3 Portfolio Analysis Portfolio Analyses will be used monthly for Steering Committee meetings and twice a year (approx. September and March) for Capital or Operating Budget project proposals. Proposed Cost will be the primary cost constraint value. Total Cost may be used as a secondary constraint. 3.4 Views The following views will be created: Projects in Select Phase Projects by Phase Projects by Project Budget Type Projects by Non-Discretionary Columns in these views will include Project Name, Department, Budget Type, Client, % Complete and Duration, Non- Discretionary The Summary view for Portfolio Analysis will be modified to include the following field: Start, Finish, Project Budget Type, Non-Discretionary flag, Proposed Cost, % Complete, and Duration. 23
4. Security The existing Portfolio Managers group will be the only group with rights to perform Portfolio Analyses, define drivers, and create driver prioritizations. Portfolio Managers group members will be required to update projects with the results of Steering Committee meetings. Therefore, this group must be updated to allow the editing and saving of projects. The existing Active Directory group that populates Portfolio Manager Security group users must be updated. 24
5. Additional Requirements 5.1 Project Site Requirements The Project Phases web part must be updated to use Workflow Phases. 5.2 Testing Requirements All workflows, forms, views, and configuration settings will be unit tested in the Development environment. User Acceptance Testing will be conducted by designated PGW testers prior to rollout to Production. 5.3 Training Requirements Both Project Manager and Administrator training will be conducted. Project Managers will need training to understand and utilize the new Strategic Alignment and Risk Calculators and move projects through the complete project lifecycle. Administrators will need to understand how the PIF and workflows are configured and how to restart and move projects to a particular stage within a workflow. 5.4 Implementation Requirements and Impacts 5.4.1 Requirements Changes to Production will be scheduled per PGW requirements. These changes will include: Upload and activate Project Initiation Solution Upload and configure Project Server Workflow Create Custom Fields, PDP, Workflow Phases and Stages Create Project Center and Portfolio Analysis views 25
5.4.2 Impacts Projects in progress will be impacted by this rollout. Impacts are described below. All projects currently in Initiation Phase will be moved to the appropriate Define or Select phase. All required fields and drivers must be completed. Projects in existing phases will be moved to the appropriate Workflow phase. 26