IS Portfolio Management

1
Enterprise Project Portfolio Management at
Horizon BCBSNJ
Daniel E. Fishter Director Data Management
Division PMO March 11, 2004
2
Agenda

• Horizons Project Portfolio Management Approach
• Enterprise Program Management Office (PMO)
• IT PMO
• Tools
• Suggestions and Lessons Learned

3
Horizons Project Portfolio Approach
4
Early Project Definition
A Key Issue in Portfolio and Multi-Project
Management - Reality
Cost per Week
Time
5
Strategic Balance Project Pipeline
Service

• Business Needs

MBU
HCM
IT
Support
Decision Point decisions for individual
projects must be balanced with Business
Portfolio needs and objectives
6
Portfolio Project Risk
Project Requirements
Stable with low probability of substantive
change
Evolving high probability of substantive change
I
II
High
Capability
III
IV
Low
7
Enterprise PMOManaging the Pipeline
8
Creating the Portfolio

• Create the planning calendar first!
• set expectations and rules of the road
• Quarterly reviews of new initiatives and health
  checks on works in progress
• dont start if the pipeline is full
• Project Definition Documents
• clear explanations of the business case and
• NOT the technical solution/vendor!
• seed projects to define solution

9
the Portfolio (continued)

• Division PMO guidance coordination
• assists Sponsors with process
• honors IT PMO process
• ROI Committee review
• Enterprise Planning Group review
• quality/health criteria
• Recommendation to Operating Committee
• final approval by President/CEO

10
IT PMO

• From Idea through solution Delivery

11
I/S and the Business

• Business Unit Interface (BUI)
• One point of contact
• Knowledgeable of business direction, focus and
  work efforts
• Represents senior management of I/S
• Key decision makers who control the work
• Upfront exposure to idea generation or initial
  concepts..at the table
• Leaders of the IT PMO
• Assisted by I/S Liaison Team

12
Opportunity Assessment

• The vetting process..
• IT standards, architecture and infrastructure
  considered
• Product/tool lifecycle implications
• Reuse, Partner, Buy, Build
• RD, Invest, Maintain, Disinvest, Exit
• IT resource requirements assessed

13
Opportunity Assessment. . . continued

• Gating decisions made by Business along the way
  as solution framework is built
• IT PMO monitoring and communication as assessment
  progresses
• Formal commitment to final assessment findings
• Signals entry into project initiation cycle

14
IT Project Assessment Process
1
4
NO
Business Owner IDs idea or operational
problem, or proposed solution develops high
business requirements
2
3
DPMO refers project to I/S PMO (if tech
component) to assess needs (2-5 days)
DPMO Agrees to Proceed?
Business Owner brings Proposal to DPMO for
financial and business audit/prioritization
logs project into BEN
Business Owner works with Business Unit
Interface in a supporting role for guidance
YES
5
6
7
I/S PMO has sufficient info to proceed?
I/S PMO reviews proposal for financial
feasibility compatibility with I/S Guidelines
(cost risk assessment). (1-5 days)
I/S PMO Assigns SME to work with Business
Owner to translate business needs to
technological terms Shop for options. (1-5
days)
Technology SME will research with Business Owner
available technology choices and
discuss implications of each. (1-10 days)
NO
YES
8
10
9
I/S PMO presents Business Owner DPMO
with impact of choices, including problems and
suggest alternatives
Implementation/ Business Owner Satisfaction
Verified
Business Owner Acquires Resources (Purchasing
phase if Applicable)
DPMO decides to proceed?
YES
NO
At this point idea may be abandoned, sent back
to Business Owner or modified with help of I/S
PMO
STOP
15
Tools
16
Tools

• An integrated collaborative project management
  tool such as Business Engine Network (BEN) is
  extremely helpful
• Expect to modify the tool to meet your needs
• Do NOT expect to use all functionality out of the
  box!
• A project scheduler tool like Microsoft Project
  is essential
• Must capture dependencies, dates, durations,
  resources and deliverables

17
The Look and Feel
18
Work the Plan

• Update project schedules at least weekly
• Tasks
• Durations
• Resources
• Resource Allocation
• Account for Release Schedules Ongoing System
  Activities

19
Sharing the Outcome

• Posting the Project Calendar
• Evaluating/resolving resource contentions
• Enter Project Summary Status in BEN

20
Suggestions andLessons Learned
21
It Took Three Years

• Year One Grappling with the basics
• Senior Management Education
• Senior Management Commitment
• Tool evaluation selection
• Getting the word out, basic training
• Year Two Formalize the process
• Enterprise wide PM procedures
• Tools in place
• Tweak the process

22
The Third Year

• Keep your eye on the ball
• Deal with the squeaky wheels
• Update/refine roles responsibilities
• Celebrate successes
• Refocus efforts as needed

23
Going Forward

• Tighter integration of Strategic and Tactical
  project planning
• Improving the Corporations Project Management
  Maturity Level

24
Questions?

• Daniel E. Fishter
• [phone]
• Daniel_E_Fishter_at_Horizonblue.com