It’s a daunting task to answer the question “which project?” The number of requests, different stakeholders and their demands, you can quickly get immersed in lists longer than your arm and have queues of frustrated stakeholders too. This presentation provides some frameworks and tools to help you triage requests and justify why one project is more important than another. A focus on strategy and governance is required to make project prioritisation work

1. Baxter
Thompson
Associates
We are specialists in business relationship
management. We provide Reconnaissance for IT.

2. 2
! Formed in 2009, Baxter Thompson Associates has always
specialised in Information Technology Services. We bring
together a blend of experienced, Interim Managers and
Consultants who have delivered tangible results while
working as Business Relationship Managers.
! Our aim is to be an industry innovator, respected as a
thought leader by our peers and seen as a trusted partner by
our clients. Helping you gain competitive advantage through
enabling IT Business Relationship Management. We do this
through an approach we call "Reconnaissance for IT”™. This
helps us identify the opportunities, plan and deliver with you
the deliverables required to improve the shared value of
information technology with business strategy.
! We typically help corporate companies on an European
basis but are equally at home with smaller growing
companies.

3. Baxter
Thompson
Associates
PROJECT PRIORITISATION
Jon Baxter
Managing Associate
www.baxterthompson.com
3

4. Baxter
Thompson
Associates
! It’s a daunting task to answer the question “which project?” The number of requests, different
stakeholders and their demands, you can quickly get immersed in lists longer than your arm and have
queues of frustrated stakeholders too.
! This presentation provides some simple frameworks and tools to help you triage requests and justify
why one project is more important than another. They don’t provide the complete answer, nor are they
applicable in every situation. In fact, some concepts are very quickly summarised.
! We believe simple is better. Its easier to implement, understand and be consistent. Finally it allows you
to stay focused! Based on experience, we believe that consistently applying equivalent models and
tools, the IT organisation will be seen as a more capable partner and reduce the risk of project failure
AND incentivise being invited earlier to discuss the big ticket business projects.
! This presentation is aimed at a broad audience, from Directors to IT professionals who engage with
business partners and need a quick “aide memoire” on what’s important.
! If you have found this useful or if you want a digital copy of the tools outlined, please contact us at
info@baxterthompson.com or visit our website www.baxterthompson.com.
17 July 2015 4
Preface
© All Rights reserved Baxter Thompson Ltd

5. Baxter
Thompson
Associates
! Project Prioritisation requires sufficient feasibility assessment and delivery capability. The point at
which an initiative becomes a project is decided at the Business Case stage. This requires
Governance. An outline project charter in this presentation for simple small scale projects can contain
sufficient information to present a Business Case. A Governance meeting agenda is also included.
! Project Prioritisation is dependent on planning. If no planning occurs, the only prioritisation would be as
one would manage a crisis – very operational and tactical. Here, planning is scheduling projects onto a
roadmap. Planning needs an understanding of strategy whereby we understand the benefits and risks
to the company. To do this, we need to collaborate and engage with business partners and figure out
which business capabilities require most attention vis à vis the strategy.
! The Governance decision and scheduling of a project is based on criteria driven by the business
strategy. A simple matrix template is included to illustrate this.
! If we don’t do sufficient due diligence, we’re storing problems for later in project delivery. Feasibility
assessments, option research and vendor selection need to be properly budgeted for.
! Cancelling a project early when there is not sufficient Business Case (despite the sunk cost of
feasibility) is better than stopping a project halfway through because of cost over-runs etc. and doing
more projects than feasibly possible.
July 17, 2015 5
Executive Summary
© All Rights reserved Baxter Thompson Ltd

6. Baxter
Thompson
Associates
! We look at capability maturity – People,
processes and tools (often systems). There are
many capabilities, of which project management
is just one in the broader context of IT
Management. We have adopted a 5 step model
to identify where a function, company or
department is.
! Typically, If capabilities need to improve then
organisational change is required to bring them
into life.
17 July 2015 6
Capability Maturity
Level 1
Initial
Level 2
Managed
Level 3
Defined
Level 4
Quantitively
Managed
Level 5
Optimising
Processes
unpredictable,
poorly controlled
and reactive.
Processes often
characterised
for projects and
is often
reactive.
Processes
characterised for
the organisation
and is proactive.
(Project tailor
their processes
from
organisation’s
standards).
Processes
measured and
controlled.
Focus on
process
improvement.
Characteristics of the
Maturity Levels
© All Rights reserved Baxter Thompson Ltd

7. Baxter
Thompson
Associates
17 July 2015 7
Improving Capability
Current Operating
Model
Target Operating
ModelOrganisational
Change
People
Process
Technology
Capabilities
People
Process
Technology
Capabilities
Manage change
through projects,
programmes
etc.
© All Rights reserved Baxter Thompson Ltd

8. Baxter
Thompson
Associates
17 July 2015 8
IT Management Capabilities
Infrastructure
Provisioning
Infrastructure
Planning
Infrastructure
Service
Delivery
Vendor
Management
End User
Service
Delivery
Policy and
Control
Management
Risk
Management
Security
Threat
Management
Change and
Configuration
Management
Application
Development
Application
Testing
Application
Provisioning
Application
Service
Delivery
Application
Planning Architecture
Business
Relationship
Management
Solution
Design
IT Business
Consulting
Capacity
Planning
Strategic
Governance
Project
Management
BAU
Department
Management
Project
Management
Office
Demand
Management
Finance
Management
© All Rights reserved Baxter Thompson Ltd

9. Baxter
Thompson
Associates
! Strategy is:
! Seizing hold of opportunities.
! Maximising your strengths.
! Minimising your weaknesses.
! Avoiding / mitigating threats.
1. What’s the company strategy?
2. How can IT add value?
3. What specific capabilities (strengths) will you be
implementing over the next 3 years?
4. What’s the IT strategy?
5. How aligned are the IT and company strategies?
9
Strategy Definition
Benefits to the company
Risks to the company
Requires business partner engagement!
Projects aim to fulfill
the strategy. Project
benefits describe how.
© All Rights reserved Baxter Thompson Ltd

10. Baxter
Thompson
Associates
10
Example Business Roadmap
© All Rights
reserved
Baxter
Thompson Ltd
Finance
Func)on
Roadmap
2014
Define
Finance
Target
Opera)ng
Model
Q1
Q2
Q3
Q4
Update
Finance
Strategy
X
Short
list
opportuni5es
and
threats
X
Scope
changes
to
the
way
we
work
X
Develop
itera5on
2015
capability
Map
X
Improve
Accounts
Payable
capability
Increase
Produc5vity
Iden5fy
process
enhancements
X
Shortlist
and
define
system
requirements
X
Prepare
business
case
X
Deliver
system
and
process
changes
X
X
Improve
Finance
Repor)ng
Capability
Enable
improved
strategic
decision
making
Iden5fy
data
enhancements
X
Review
BI
systems
and
integra5on
requirements
X
Prepare
business
case
X
Deliver
system
and
process
changes
X
X
Improve
Budget
Management
Capability
Reduce
lead5me
and
improve
produc5vity
Streamline
Business
case
approvals
X
Review
recommenda5ons
X
Implement
changes
X

11. Baxter
Thompson
Associates
11
Example IT Roadmap
© All Rights
reserved
Baxter
Thompson Ltd

12. Baxter
Thompson
Associates
! Typical agenda items to consider at Governance meeting (board level say quarterly):
1. Strategic Business roadmap and IT roadmap outline of initiatives and projects.
! Emerging opportunities and threats.
! Alignment of initiatives to Strategy by function.
! Capability delivery update
2. Next tranche of initiatives to be called off roadmap and developed into Project
Proposals (3 month planning window) – Funding requirements for analysis and
coordination.
3. Business Case approvals for scoped initiatives to become projects (sometimes
separate meeting monthly say with delegated authority (volume of decisions)).
4. Portfolio status update on Benefit Delivery.
5. Capacity Planning and budget update.
17 July 2015 12
Governance
© All Rights reserved Baxter Thompson Ltd

13. Baxter
Thompson
Associates
17 July 2015 13
Broader Project Context
Business Case Service Handover
Project becomes a Managed
Service in catalogue
Project
Proposal
Time
“Initiative” “Project” “Service ”
Ideas
Project Production Line
Project
Planning
Service Management
Change Request
© All Rights reserved Baxter Thompson Ltd

14. Baxter
Thompson
Associates
17 July 2015 14
Typical Project Lifecycle
Business Case Project Handover
Time
“Initiative” “Project” “Service ”
Man-daysEffort
“BAU”
Feasibility,
High Level
Assessment,
Supplier
Assessment
Detail Design,
Service Design,
Develop, Install
Sprint 0,1,2,3…n
Training,
Handover
© All Rights reserved Baxter Thompson Ltd

15. Baxter
Thompson
Associates
17 July 2015 15
Typical Project Lifecycle –
Level 1 Capability
Business Case
if done
Project Handover
if done
Time
“Initiative” “Project” “Service ”
Man-daysEffort
“BAU”
Lack of planning, conception,
scope creep, poor
Governance, poor alignment
to benefits / outcomes and
loose risk controls leads to
cost and time over-runs
Past examples: 100%+ variance
from initial budget forecast
© All Rights reserved Baxter Thompson Ltd

16. Baxter
Thompson
Associates
17 July 2015 16
Typical Project Lifecycle
(Traditional) Level 3 Capability
Business Case Project Handover
Time
“Initiative” “Project” “Service ”
Man-daysEffort
“BAU”
More effort planning, solution
design, improved Governance
increases predictability
Ideal -/+ 10% variance from initial
budget forecast approved at
Business Case
! If we don’t do sufficient
due diligence, we’re
storing problems for later
in project delivery.
Feasibility assessments,
option research and
vendor selection need to
be properly budgeted for.
! Cancelling a project early
when there is not
sufficient Business Case
(despite the sunk cost of
feasibility is better than
stopping a project
halfway through because
of cost over-runs etc.
and doing more projects
than feasibly possible.
© All Rights reserved Baxter Thompson Ltd

17. Baxter
Thompson
Associates
17 July 2015 17
Foundations Of A Successful
Project
Successful
Project
Enablement
Good Pre-
Project
Planning
Business
Requirements
defined
Sufficient
Feasibility
and Option
Research
Activity, Cost,
Quality
investigated
Strong
Business Case
Benefits &
Outcome
Assessment
Cost and ROI
Analysis
Strong
Executive
Sponsorship
Alignment to
Business
Strategy
Good
Governance
“Initiative” stage
ID the right project
ID the right solution
ID the right scope
ID the right approach
I want to stay
warm this
winter. How
shall I heat my
home?
© All Rights reserved Baxter Thompson Ltd

18. Baxter
Thompson
Associates
17 July 2015 18
Capabilities Within Project Management That
Contribute To Ongoing Successful Delivery
Successful
Project Delivery
Manage
Risk &
Issues
Manage
Scope
Manage
Benefits &
Outcomes
Manage
Quality
Manage
Activities
Manage
Cost
Manage
Expectations
(comms.)
“Project” stage
Deliver Outcome
Deliver on Time
Deliver on Budget
Deliver on Scope
Deliver on Quality
© All Rights reserved Baxter Thompson Ltd

19. Baxter
Thompson
Associates
17 July 2015
Simple Project Management
Create
Project
Charter
Is it likely
to be a
project?
Governance
approval
Develop
Project
detail
Consider:
Policy,
Solution Design,
Business Requirements,
System Features,
Alternatives,
Detail Design,
Sprints,
Procurement,
Development
Pen.
Unit, User, Integration Testing,
QA,
Budget
Business Case,
Training, Comms, Transition,
Benefits and Risk Analysis
Manage Activities, risk,
issues, costs, resources,
comms, quality
Update documents
Series of linked activities
achieve a common aim with a
start and end date. Fixed
scope, benefits and outcomes
It’s a project!
Prioritise / Schedule
project and plan detail
Achieve Benefits and
Outcomes
Update
Project
Charter
Big idea
Consider strategy
alignment,
Business Case,
priorities, capacity,
external demand
Got a
solid
Business
Case?
Notyet
STOP
Change
Request /
Service
Catalogue
Celebrate!
No Yes
Yes
Yes
No No
© All Rights reserved
Baxter Thompson Ltd 18

20. Baxter
Thompson
Associates
! Assuming there is sufficient information to present a Business Case, two questions to ask:
1. Should we do it? Consider:
! Risk vs Benefit.
! Risk – Roadblocks to project benefit delivery.
! Benefits – Outcomes in business language that contribute to the business strategy (which can include
mitigating a business risk).
! Relative benefits and risks of one project vs another can help schedule and therefore prioritise the project.
! Separate metric: Financial Return On Investment – revenue or costs savings over 3 years / cost of project
and ongoing costs for 3 years (check with Finance Department for their version of ROI). Indispensible for
Revenue / cost control strategies.
2. Can we do it? Consider:
! What’s the cost of the project? If fits in with CAPEX / OPEX costs for current year and is on strategic
roadmap - OK. If not, delay for next year’s budget (provides justification for next years budget planning).
! Rescheduling other projects on the roadmap if this project sufficiently important.
! If OK then plan for when resources are available. Or, if project more important than other projects, then
reschedule projects.
17 July 2015 20
Project Prioritisation
© All Rights reserved Baxter Thompson Ltd 19

21. Baxter
Thompson
Associates
Simple Project Prioritisation
21
17
July
2015
Preference for
projects that are
low risk and
high benefit
Project
Business Sensitivity
considers the likelihood of
the risk occurring given the
current business capability.
E.g. if Finance services
company then controls
highly sensitive.
© All Rights reserved Baxter Thompson Ltd 20

22. Baxter
Thompson
Associates
! For ideas and initiatives that are not yet ready to be presented as a Business Case, time
needs to be spent assessing them and indeed those ideas themselves need to be prioritised.
1. Create a list, in similar form to that of the project prioritiser (see last slide). Based on gut feel,
assess the idea / initiative on what you know.
2. Prioritise those initiatives that have the highest benefit and lowest risk (still gut feel).
3. Budget an amount of time per week to spend assessing ideas.
4. Assess the highest priorities first and start to fill in (say) a project charter to capture the most up to
date information to a point where:
a. The assessment becomes a much bigger piece of work and a decision needs to made on whether further
analysis takes priority over other work, or not.
b. The assessment is postponed to start work on another idea.
c. There is sufficient information to present as a Business Case and require a decision to see if it should
become a project.
17 July 2015 22
Initiatives Prioritisation
© All Rights reserved Baxter Thompson Ltd

23. Baxter
Thompson
Associates
! Designed to be a living document that gets
updated continuously as the project is
“shaped” or planned into life.
! Once there is sufficient information to
present a strong Business Case, document
gets presented for approval.
! Descriptions contained in the document.
! Suitable for small projects – £10k - £50k
! Larger - consider more detailed project
management approaches including the use
of a Project Initiation Document and formal
Business Case.
! Smaller - could be standard change
requests E.g. licence renewal
17 July 2015 23
Project Charter
© All Rights reserved Baxter Thompson Ltd

24. Baxter
Thompson
Associates
! Effective prioritisation of projects requires:
! Business and IT Strategy definition.
! Governance at Business Case stage
! Active portfolio management (planning) that drives the prioritisation process and the roadmap
output.
! Well developed project feasibility assessment capabilities.
! Well developed project delivery capabilities.
! Communication and engagement.
! Consistency in application.
! Tip: Avoid boiling the ocean. We’ve used phrases like ‘sufficient information to make a
decision’ deliberately.
! What’s needed in your organisation?
17 July 2015 24
Prioritisation Critical
Success Factors

25. Baxter
Thompson
Associates
! Phone + 44 20 33 84 94 63
! Email: info@baxterthompson.com
! www.baxterthompson.com
! Baxter Thompson Ltd
Dalton House
60 Windsor Avenue
London
SW19 2RR
United Kingdom
25
To find out more….
© All Rights reserved Baxter Thompson Ltd17 July 2015

26. Baxter
Thompson
Associates
The content of this slide deck is for information purposes only and does not constitute any advice. The
information and materials contained in this presentation are provided ‘as is’ and Baxter Thompson
Associates does not warrant the accuracy, adequacy or completeness of the information and materials and
expressly disclaims liability for any errors, omissions or for any consequential loss or damage of any
nature . This presentation is not intended to be, and shall not constitute in any way a binding or legal
agreement, or impose any legal obligation on Baxter Thompson Associates. Except as described, all
proprietary rights and interest in or connected with this publication shall vest in Baxter Thompson Ltd. No
part of it may be redistributed or reproduced without the prior written permission of Baxter Thompson
Associates. Portions of this presentation contain materials or information copyrighted, trademarked or
otherwise owned by a third party. No permission to use these third party materials should be inferred from
this presentation. Baxter Thompson Associates refers to Baxter Thompson Ltd.
26
Legal Notice
©
All
Rights
reserved
Baxter
Thompson
Ltd