PPM and Governance Workshop

(800) 556-2506 www.Edwards-Ind.com

Portfolio Management & Governance

What, Why & How?

EDWARDS PROJECT SOLUTIONS
Portfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Phone: (800) 556-2506
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. Email: Info@EdwPS.com
Revised: August 2012 Web: www.EdwPS.com

Poor Portfolio Management &
Governance Starts At The Project
Level
…a “typical” project lifecycle…

Courtesy of www.projectcartoon.com

…and the project…

The Customer…

Portfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. 2
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC.
Revised: August 2012

Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com Courtesy of www.projectcartoon.com

What was described What was understood What was designed



What was developed What was initially What Operations
installed FINALLY Delivered
Portfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved.
Edwards Project Solutions is a registered trade name of Edwards Industries, LLC. 4


When it was Delivered What the Customer was …and how the project
charged for was supported…

Now take that approach and multiply it by 10, 100, 1000…

Add in no Enterprise Management…

No Portfolio Management…

No Governance and…


You get insurmountable problems


Agenda
What is Portfolio Management and Governance?

Why is Portfolio Management and Governance Important?

How do you implement Portfolio Management and Governance?

Case Studies – What others are achieving

Call to Action


Now
What? Why? How?
What?


9

Portfolio Management is a capability that enables organizations to analyze,
select and manage a collection of project investments that are aligned with
your company’s goals and objectives within a data driven decision making
framework.
Portfolio Management also coordinates the acceptance, approval,
postponement, rejection or cancelation of a project which will not realize
the proposed benefits or the corporation’s strategic outcomes.
Governance is the process of putting policies, procedures and processes in
place to guide organizational operational activities and changes.
Governance warrants the achievement of an organization’s objectives by
strategically aligning daily activities, setting direction, providing guidance on
decision making and monitoring performance.

10

Now
What? Why? How?
What?




Organizations that practice Portfolio Management
and Governance are 20% more profitable than their
competitors. (IT Governance, Peter Weill)
Portfolio Management and Governance is
important because it addresses the following
organization concerns, issues and trends.
PwC Global PPM Survey Findings
Misaligned Organizational Behaviors
Technical and Enterprise Debt
Future Technologies and Trends EDWARDS PROJECT SOLUTIONS

PwC Global PPM Survey Findings
The survey included some 1,524
respondents from 38 countries and
within 34 industries.
2/3’s of organizations that deployed
PPM reported that 90% of their
projects perform to expectations.
Higher PM and PPM maturity yields
higher business performance.
Higher levels of portfolio alignment
increase stakeholder satisfaction.
Adoption of PPM has not increase since
2007 remaining at around 53%, but
organizations using PPM have seen an
increase in performance.
http://www.pwc.com/en_US/us/public-sector/assets/pwc-global-
project-management-report-2012.pdf


Misaligned Organizational Behaviors
Too much concurrent demand in the same window of time.
Bad Multi-tasking
Conflicting Priorities – Resource contention
Behavior misalignment
Student Syndrome
Parkinson’s Law


Enterprise Debt

Remedial
Work

increases surfaces as reduces surfaces as

Project Enterprise Debt Increased
Requested Debt
Approved Cost to
Projects
Projects Support

increases surfaces as pays interest
on
Increased
Work to
Source: www.pragmaticEA.com
Change


Technical Debt

Increase cost of maintenance
Duplicate organizational
functions
Bad business processes
Cost of rework
Cost of poor execution
Cost of poor data quality


IT project debts are killing business profits
IT failure costs the U.S. economy
an estimated $1.2 trillion+ a year.
And, the global economy $6.2
trillion a year.
52% all projects will have costs
overruns at a staggering 189%
of the original cost estimate,
62% of projects have time
overruns at a rate of 222% over
the original time estimate.
41% of IT projects failed to
deliver the expected business
value and/or ROI.


Future Technologies and Trends
Cloud Computing
Consumerization of IT
Social Media (LinkedIn, Facebook, Twitter, etc…)
Mobility or device agnostic anywhere access demands
Big Data: Ability to analyze large volumes of structured and
un-structured data
IT must respond quickly while addressing organizational
data security concerns

Gartner Predicts 2012: Four Forces Combine to Transform the IT Landscape


Now
What? Why? How?
What?

How do you address these issues and implement a Portfolio
Management and Governance capability?


How Do You Move Forward?

Acknowledge a need for a holistic
Governance approach
Capture projects and resources
demand in a centralized repository.
Make data driven decisions on
project investments
Measure progress with leading
indicators


Governance Framework: Finding the Right Balance

Avoid Burdensome process
Drive engagement
Ensure appropriate ownership
Appropriate forums for
communications and engagement

 Right Data  Right People


 Right Decisions 


Create A Centralized Repository
Publish Projects
 Central location for project information
 Update task information via the Web
Project Collaboration
 Issues
 Risks
 Communications plan
 Change orders
Project Workspaces
 Single place for all project information
 Document Management
 Meeting workspaces
 Manage Issues and Risks


Data Driven Portfolio Strategy
Change total cost constraint and
click “Recalculate” to view the Force
what if scenario and results in/out
projects

Unselected
projects


Implement a Performance Management and BI Capability

You can’t manage what you don’t
measure or describe. Inventory • Do you currently track metrics?
Determining KPIs
 Mission: What are they missions • Does the metric provide
your department has targeted? Actionable actionable data?
 Strategy: What are the policies,
procedures or approaches being
used to accomplish these • Does the metrics enables you to
missions? Decision make business decisions?
 Objective: What are the key
objectives of the mission?
 KPI: What indicators can you • Does the metrics provide
measure to determine if you are
Predictive directional guidance?
meeting these objectives?
• Does the metric capture
Trending historical trend in performance?

• Can the metric features be
Integrated integrated with other metrics?
Course Correction - 90% Rule
Portfolio Management and Governance ©Copyright 2012 Edwards Industries, LLC. All Rights Reserved. Edwards Project
Solutions is a registered trade name of Edwards Industries, LLC. 24

What Others Are Achieving
Organization Challenge Solution Results
EPA Office of Water • Scored 1.3 out of 5 on • Implemented Project • Generated saving of 1.9
OPMs maturity model Server 2010 Million per year
• Lacked PPM Capabilities • Implement Dashboard • Increase score to 2.8
for monitoring progress
Marquette • Tracking only schedule • Standardize PM process • Ability to track capital
data was not sufficient. and templates projects across the
• Lack of standards • Implement Enterprise University
PPM solution
Verizon Communication • 75 PM to oversee • Automate the • Increase PM efficiencies
150,000 projects development of their by > $20 Million
• Inefficient collaboration WBS (schedules) productivity saving
processes • Implement Enterprise • > $25 Million reduced
Reporting conference calls
Ingresoll –Rand • Need to increase PM • Training continuously • Enabled the firm to
skills • Establish a world class support an end to end
• Lack Financial insights governance model Project Lifecycle (from
on projects • Standardize across Proposal to Selection to
• Capture project demand departments with PPM Execution)
1000 Lawyer – Law Firm • Standardize PM • Implement Standardize • Increase EA maturity
Methodology PM & Governance • Increase project
• Lack of Governance processes completion throughput
Processes • Train PM to from 10 to 65 projects a
become(PMPs) year

Now
What? Why? How?
What?

Case Study and Call to Action?


Call to Action
Commit To The Journey

Senior Management Must Drive The Change And Remove Barriers.

Use Architecture As A Compass

Increase EA Maturity One Project At A Time

Hire A Tour Guide (Outsource to Experts with Experience)

Increase Your Employee’s Capabilities


Thank you for your time!
For more information on how we can provide your organization with comprehensive
project management solutions, please contact:

Gerald Leonard PMP, MCTS, ITIL
7250 Parkway Drive • Suite 200 • Hanover, MD 21076-1388
Office: (800) 556-2506 • (443) 561-1315
Fax: (443) 561-0199
Email: gleonard@EdwPS.com

Also visit our website at:
www.EdwPS.com


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