The Benefits

1
The Benefits Challenges of Enterprise Portfolio
Management

• Michael S. Belk, MEM, CEI, CEM, MCP
• Manager IT Projects
• International Paper Company

MAESC Christian Brothers University, Memphis 11
May 2005
2
Agenda

• Introduction
• Background
• Benefits
• Challenges
• Next Steps

3
Introduction

• EPM is a management process used to select,
  control, and evaluate investments within and
  across asset and project portfolios. The primary
  focus of technical portfolio management is to
  ensure alignment between business goals and
  technical investments.

4
Introduction

• EPM works by centralizing the information
  platform, by standardizing project processes, and
  by providing a common enterprise governance
  process for optimal business technology
  decisions, ensuring successful execution on the
  corporate enterprise strategy

5
Background of IT

• International Paper Company 1999
• Decentralized
• No enterprise view of projects planned or in
  progress
• Unknown costs vague strategic alignment
• Informal project processes
• Multiple processes, most undocumented
• Few, if any, best practices being followed
• No historical records of projects
• Fragmented project management staff
• Few full time PMs
• Many people doing PM work 5-50 of time
• No Center of Excellence (COE)

6
Background of IT

• International Paper Company 2003
• Decentralized
• No enterprise view of projects planned or in
  progress
• Unknown costs or strategic alignment
• Formalized project processes
• One process for all projects
• Common terminology
• Dedicated project management staff
• Many more identified full time PMs
• Fewer people dabbling in PM work
• Still no COE

7
Background of IT

• International Paper Company 2005
• Centralized
• Organization re-alignment
• EPM process enablements implemented
• A view of all projects proposals
• Including costs, resources, and time
• Formalized project processes
• Integrated with EPM processes
• Dedicated project management staff
• All key PM staff identified and part of the COE

8
Benefits

• Improve funding allocations decisions
• Maximize value of technical investments while
  minimizing the risk
• Improve communication and alignment between
  technical and business leaders
• Greater business accountability for investments
• Allow planners to schedule resources more
  efficiently
• Reduce the number of redundant projects and make
  it easier to kill projects

9
Challenges

• Commitment from Top Management
• Communication of Decision
• Dedicated Team Members
• Research Solution Selection
• Communication To Management
• Organizational Change Management
• Communication to Organization
• Training of Processes Enablements
• Communication to Stakeholders

10
Challenges

• Keep the Big Picture
• 100 of all technical work is visible, planned
  and managed in one place
• Goal is to balance Budgeted Work against Planned
  Work against the Supply
• Productivity Dip
• Process Enablements Owner/Support

11
Next Steps

• Baselining Earned Value Metrics
• Mature Governance Processes
• Implement Globally
• Integrate Business Stakeholders