Leveraging MS Project in an Integrated Portfolio Management Solution

1
Leveraging MS Project in an Integrated Portfolio
Management Solution

• MSPUG- Phoenix Chapter

2
Agenda

• Pacific Edge Background
• Portfolio Management Overview
• Leveraging MS Project in PE Portfolio Management
• Customer Examples
• EPM Processes Enterprise interdependencies
• Product Demonstration
• Visor Drawing

3
Corporate History

• Founded in 1998
• Privately Held Company
• Headquartered in Bellevue, WA
• Numerous Industry Accolades
• Early Pioneer of Project Portfolio Management
  Software
• An Industry Leader of Enterprise Portfolio
  Management Software

4
Customers
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Portfolio Management Vs Project Management
Strategic
Tactical
Project Management Are we doing projects
well? Are projects on time and budget? Do
resources know what they are doing?
Project Portfolio Management Are we doing the
RIGHT projects Do we have the RIGHT resources Are
we spending in the RIGHT areas
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Portfolio Management Definition
PORTFOLIO MANAGEMENT is the continuous process of
selecting, prioritizing and managing the optimum
mix of corporate investment in products, RD,
projects, hardware/software, assets, operations,
etc. to deliver maximum business value. In this
decision making process, management can focus
their limited resources on investments that are
achievable and strategically aligned with
business goals. The resulting portfolio delivers
a balance of what is possible and what is needed.
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Business Drivers for Portfolio Management

• Agility in a Rapidly Changing Marketplace
• Monitor business performance
• React to sudden environmental shocks
• Multiple planning cycles
• Risk mitigation
• Decrease organizational reaction time

It is not the strongest of the species that
survive, nor the most intelligent, but the ones
most responsive to change. Charles Darwin
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Business Drivers for Portfolio Management

• Manage Complexity
• Reduce 75 failure rate for complex projects
  through better selection
• Improve visibility of investments across
  organizations
• Reduce costs by consolidating legacy and
  duplicate investments

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Business Drivers for Portfolio Management

• Optimize Resources
• Remove high cost, low performance, and
  off-strategy investments
• Re-allocate, re-balance, and re-sequence
  portfolio of investments for maximum effectiveness

More than 40 pared back budgets at some point in
2002. Morgan Stanley CIO Survey
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Business Benefits of Portfolio Management

• Reduce costs by identifying low value,
  non-strategic, redundant, or poorly performing
  assets and projects.
• Increase return on enterprise portfolios through
  improved selection, prioritization, sequencing,
  and governance of corporate investments.
• Optimize the use of critical resources by
  balancing risk and focusing on the most valuable
  investments.
• Achieve competitive advantage by reducing the
  time required to realign the enterprise
  investment portfolio with rapidly changing
  business needs.

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How are Enterprises doing Portfolio Management
Today?

• Spreadsheets
• Presentations
• E-Mails
• Planning Meetings
• Microsoft Project
• Accounting Apps
• Custom DB Apps
• Lotus Notes/Groupware

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MS Project in Pacific Edge Portfolio Management

• Top down project planning to ascertain value and
  risk
• Build the tactical plan that executes the project
• Provide estimate dates, actual dates and
  assignments
• As project progresses, updated information is
  provided back to Project Office Portfolio
• Up to date information regarding execution is
  visible in Portfolio Edge

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Project Office 4.0

• Top down planning create a project without
  defining all of the work items.
• Centralized Document Management Provides a
  central repository for managing project documents
  with check-in/out and versioning.
• Project Team Collaboration Capture lists of
  information related to a project, like risks,
  issues, changes, or requirements and enable
  project teams to collaborate on them.

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Project Office 4.0

• My Projects Enables project managers and
  projects teams to access the project profile,
  documents, logs, links, and project summaries
  rolled up from Microsoft Project.
• Centralized Document Management Provides a
  central repository for managing project documents
  with check-in/out and versioning.
• Project Team Collaboration Capture lists of
  information related to a project, like risks,
  issues, changes, or requirements and enable
  project teams to collaborate on them.

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Project Office 4.0 Connectors

• Together with the Project Office Connector,
  Project Office 4.0 links detailed project
  planning and portfolio management for a complete
  closed-loop solution.

• XML-based Data Exchange New Project Office
  Connector allows project managers to manage task
  plans with MS Project 98, 2000, and 2002.
• Summary Level Publishing Publish task summary
  information to Project Office while managing the
  details offline.
• Assign Pool Resources Assign resources to tasks
  and synchronize project resources with the
  Project Office resource pool.

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- Pacific Edge

• Portfolio Edge provides instant, high-level
  visibility into the program and project
  information managed by the Pacific Edges Project
  Office Suite?

• 100 web-based, zero-client architecture
• User-maintained, personalized dashboard
• Chart history
• On-demand and scheduled publishing
• Custom charts and indicators.
• Multiple chart formats

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Portfolio Management Results

• 4 million savings within 18 months
• Reduced IT resources by 20 while maintaining
  customer satisfaction

• Eliminated or consolidated off-strategy or
  duplicate projects
• 9 million savings within 18 months

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Mercy Health Results

• Situation
• Project users, but many areas using spreadsheets,
  white boards etc
• Lack of strategic focus
• Poor project inventory methods
• Constrained resources
• Inconsistent reporting
• Alignment
• Projects are strategically aligned with
  organizational goals.
• Enhanced project approval and prioritization
  process for management.
• Improved resource allocation.
• Increased customer satisfaction.
• Value
• 4 million savings after 18 months.
• Reduced IT resources by 20.

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Schlumberger Results

• Situation
• MS Project Users
• Poor strategic alignment
• Millions wasted on duplicate investments
• Alignment
• Alignment of investments to strategy visible to
  management
• Resource utilization and alignment through better
  time capture
• Eliminated or consolidated off-strategy or
  duplicate activities
• Value
• 9 million savings after 18 months

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Steps to Business Value
25 Return
Step 4
Value
Step 3
2-5 Return

• Portfolio Balancing
• Investment lifecycle Cost/ROI
• Investment Risk and Value
• Resource capacity/demand

Step 2

• Portfolio Alignment / Pipeline Management
• Proposals
• Scoring and Ranking
• Phase Gate / Approval Processing

Step 1

• Portfolio Clean-up
• Data Clean-up
• Redundant Programs/Investments
• Off Strategy Investments
• Low value/high risk investments

• Portfolio Inventory
• Configuration
• Data Capture
• Visibility Communication

90 Days
9-18 Months
45 Days
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Enterprise Portfolio Management Process
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Enterprise Portfolio Management

• May 2003