Project Management And Accounting For ProjectDriven Organizations

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Project Management And Accounting For
Project-Driven Organizations

• Kevin Finn - Queue Associates
• Chris Marriot - Intellient

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Session Objectives

• Build a compelling business case that Project
  Management and Accounting is the backbone of any
  service-intensive organizations
• Explore Project Management and Accounting as a
  powerful integrated solution that goes far beyond
  the traditional role of project management or
  accounting
• Understand why Project Management and Accounting
  is a wise choice for your business

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What are we facing?

• Top 10 issues facing Project orientated
  businesses
• Ensuring profitability with optimal resource
  utilization
• Costs runaway
• No detailed visibility into the entire
  organization
• Dislocated and inefficient billing cycles
• Revenue leakage
• Complicated and dislocated processes across the
  product/service life cycle
• Slow to recognize and deal with change (internal
  and external)
• Dealing effectively with competitors
• Gathering data from diverse sources systems
• Systems inhibit growth and change

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Building the Foundations for Project Management
Accounting

• Aligning your Project Management with your
  Finance Accounting
• Chris Marriott - Intellient

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Enterprise Project Management Accounting Enablers

• Consistent Project, Resource Performance
  information
• Central storage management of Project, Resource
  Performance information

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Project Management Information Standards

• Business Challenge
• Effective Project Portfolio Reporting based on
  inconsistent terminology, structure and metrics
• Objectives
• Consistent terminology
• Consistent structure
• Consistent performance metrics
• Any form of project performance measure relies on
  a level of consistency

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Finance Accounting vs. Project Management
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Project Management Maturity Models

• Harold Kerzners Project Management Maturity
  Model
• Project Management Institutes OPM3
• Organisational Project Management Maturity Model

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Enterprise Project Resource Information
Management

• Business Challenge
• Accessing and reporting on a project portfolio
  when information is stored in a variety of
  formats in various locations
• Information format storage location
• Objectives
• Central storage of project, resource
  performance information
• Targeted consolidated information

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Accounting Finance vs. Project Management
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Microsoft Office Project Server 2003

• Provides central storage
• Integrated reporting tools
• Dynamic security model
• Supports project management standards
• Enables standardised project resource profiles
• Embedded project structures with project
  templates
• Naturally integrates with Dynamics SL

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Summary

• With organisation wide project management
  standards in place and enterprise project and
  resource information management in place .
• You are positioned to adopt and benefit from
  Project Management Accounting
• Project Management is a Business Function treat
  it like one.
• I have really skimmed through this I will be
  around after the presentation if anyone would
  like to know more.

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Three Enduring Myths

• Services are inherently creative and,
  therefore, not well suited to the rigour of
  project management (PM)
• Our top service priorities are improved
  efficiency, profitability, and customer
  satisfaction PM simply doesnt play a key role
  in this equation
• Management wants bottom-line financial impact,
  and PM has not been able to convincingly deliver
  on that expectation

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Common Business Challenges

• Project management activities disconnected from
  company financials
• High administrative costs from redundant and
  error-prone data entry Too much time spent
  collecting and sharing of information between
  people and departments (e.g., time, expenses,
  draft invoices, change orders, etc.)
• Manual billing processes for unique client
  requirements Long billing cycle time leads to
  decreased cash flow
• Lack of management visibility into project
  profitability and status
• Reports are difficult to obtain, limited and not
  standardized Information is often available too
  late for managers to solve problems

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Dawning Of A New Era

• What is Project Management and Accounting (PMA)?
• An end-to-end business solution that integrates
  project, financial and resource management for
  the purpose of improving profitability,
  efficiency, and customer service, while adapting
  more quickly to changing business conditions
• In Other Words
• PMA is about putting the right people and skills
  on the right projects at the right time in order
  to deliver a valued and profitable service

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Conceptual Model For PMA
() Budgeted Hours, Cost, Revenue Resource Data
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Typical Customers

• Business Services, Consulting, IT and Computer
  Services, Engineering, Government Contractors,
  Construction
• All size companies in the mid-market spectrum
  typically 5-500M Revenue and 25-1000 employees
• Project-centric divisions and departments in
  large enterprise

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The Solution

• Microsoft Dynamics SL for Project Management and
  Accounting
• An integrated suite of modules that provide
  financial accounting, project management and
  resource management capabilities
• Key features include time and expense management,
  billing, revenue recognition, cost allocations,
  contract management, employee and resource
  utilization, and real-time project profitability
  analysis
• Optional integration with Microsoft Project
  combine real-time financial data with
  best-of-breed project planning, task scheduling,
  knowledge management, and skills management
  capabilities

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What the Solution Delivers

• Maximize your ROI with Business Portal
• Management by Exception with Communicator
• Up-to-date job PL with Analyzer and Reports
• Convenient time/expense collection/approval
• Contract/subcontract administration
• Flexible project accounting
• Auto allocations and invoicing

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Microsoft Solutions For Project Driven
Organizations
Executives, Resource and Project Managers,
Financial Managers, Team Members
Business Portal in Microsoft Dynamics
Project Managers
Financial Managers
Everyone
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Bringing People Together, Amplifying Their Impact
On Success
Project Managers/Teams Accurate status reporting,
resource/skill optimization, improved PM life
cycle controls and
IT alignment
Executive Stakeholders Project profitability,
ROI, portfolio and business alignment,
responsiveness to change
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Benefits Beyond The Norm

• Traditional
• Project Management
• On time versus original schedule estimate
• Within budget versus original cost estimate
• Within scope versus original deliverables
• Meet or exceed customer expectations
• Best available resource utilization

• Project Management
• Accounting
• Reduced time to market and/or cycle time
• Project revenue, cost, and profitability
• Business value of services delivered
• Alignment with business and client objectives
• Best fit skills-based resource optimization

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Other Measurable Benefits

• Better Prioritization of Projects and Services
  It
  is shocking how many projects operate below the
  radar screen with no plans, controls or
  accountability
• Shorten Billing Cycles
  
  Better allocation of resource TE to project
  schedules and invoicing, and faster resolution of
  billing disputes
• Minimize Revenue Leakage
  
  Eliminate errors from manual entry or
  redundant systems used to invoice client services
• Improved Service Agility
  
  Quicker response
  to sudden or unexpected changes in business
  priorities, competitive pressures, new
  technology, and economic downturns

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Expand Project-Driven Value Chain
Support
Collect
Deliver
Plan
Sell
Lead to SupportProcesses
Account Opportunity Management
Resource Project Management
Project Execution
Project Financials
Service Management

• Project Plan Schedule
• Resource availability and scheduling
• Skills matching
• Risk management
• Portfolio Management
• Performance Management
• Recruiting
• Training

• Profitability Analysis
• Project Status
• Shared Documents
• Issues tracking
• Collaboration
• Manage Sub-contractor deliverables
• Budgeting
• Cost Mgmt
• TE capture

• TE capture
• Billing, Invoicing
• Revenue Recognition
• Payroll
• Financial reporting, controls
• Payables
• Receivables
• Cash Mgmt

• Help Desk
• Service Contracts
• Warranty Management
• Service Scheduling
• Service Dispatch

• Identify and evaluate opportunities
• Manage pipeline
• Soft-book resources
• Manage contracts
• Assess costs, potential revenue
• Leverage past proposals learning's

Core Functions
MicrosoftAssets
Project Management Accounting
Microsoft Project
Knowledge Management with Windows SharePoint
Services
Reporting/Analytics with Excel, Financial
Analytics, SQL Analysis
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Why PMA Is A Wise Choice

• Top 10 reasons to buy a Project Management and
  Accounting Solution
• Drive increased revenue and profitability with
  optimal resource utilization
• Rein in costs
• Gain deep visibility into your organization
• Streamline billing cycles
• Minimize revenue leakage
• Optimize processes across the product/service
  life cycle
• Respond to change with agile efficiency
• Gain competitive advantage
• Connect data across your organization
• Work and grow the way you want with a flexible,
  consolidated platform

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Questions Answers