MPA

1
MPA GTA August 24, 2006

• Understanding Portfolio Project Management
• A Case Study for Implementation

2
Agenda

• Welcome and introductions
• Agora Overview
• PPM and Portfolio Server Overview
• PPM Implementation Case Study
• Questions and Answers

3
What Youll Learn Today

• An overview of Project Portfolio Management
  Concepts
• Introduction to Microsofts new solution
• Case Study review of a PPM Pilot
• How this can help your organization better align
  your project portfolio with the objectives of the
  organization

4
Introductions

• Name, Title, Company
• What are your top issues?
• What do you hope to get out of this seminar?

5
Agenda

• Welcome and introductions
• Agora Overview
• PPM and Portfolio Server Overview
• PPM Implementation Case Study
• Questions and Answers

6
Agora Consulting Partners

• Agora Gr. 'agora. An assembly hence, the
  place of assembly, especially the market place,
  in an ancient Greek city.
• Where Business Meets Technology

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Agora Consulting Partners

• We have been in business for 9 years
• We are located in Toronto and Guelph and have
  clients throughout Southern Ontario, New York and
  the UK

8
Microsoft Gold Certified Partner

• Certified in
• .Net Web Application Development
• Enterprise Project Management
• Advanced Infrastructure

9
Guiding Principles

• Create a collaborative relationship with the
  customer
• Deliver every project On Time/On Budget
• Maintain excellence through ongoing training and
  skill renewal
• Act with integrity in all interactions

10
Agora EPM/PPM Practice

• Industry leaders and consultants on Enterprise
  Project Management
• Services
• Process Assessment and Re-engineering
• EPM Design
• MS Project Server Implementation
• Project Server Customization and Integration
• Current EPM clients include
• Sanofi Pasteur
• Apotex
• Canadian Institute of Health Information
• Royal Bank
• SSHA
• RIM
• BNS
• Moneris

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Agora EPM Practice - The factors to a successful
implementation of MS Project Server
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Agora EPM Implementation Methodology
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Agenda

• Welcome and introductions
• Agora Overview
• PPM and Portfolio Server Overview
• PPM Implementation Case Study
• Questions and Answers

14
What is Project Portfolio Management (PPM)?
Alignment is the essence of management Fred
Smith, Chairman Federal Express
Management Discipline improves alignment
between strategy planning and business/IT
strengthens governance improves project
definition, portfolio selection, resource
planning and executive reporting Comprehensive
Project Inventory develops and captures new,
ongoing and carryover work centrally to provide
transparency around how key Business Drivers are
supported and how resources (/FTE) are
dispersed Transparent Actionable Decisioning
Framework provides ongoing and actionable
portfolio analysis and reports to the
decision-makers to enable improved investment
viability and accountability Workflow With Roles
Responsibilities provides clearly defined
roles and responsibilities throughout the process
and Governance framework Analytical software
toolset leverages toolsets to capture project
inventory and to ensure optimal, consistent and
fact-based portfolio selection and planning
decisions by simultaneously evaluating and
comparing competing project ideas and resource
needs (e.g., what-if, sensitivity analysis,
optimization, etc.)
PPM is a management discipline that helps
organizations achieve maximum project portfolio
value through the continuous process of
evaluating and managing projects against key
performance metrics and strategic business
objectives.
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History of PPM

• Not New
• There has always been some form of project
  portfolio management roots are in large program
  development and management
• Around for the last 20 years in PM, but only
  recently more formalized and linked up and down
  stream
• Expected significant focus
• This will be a significant growth area for the
  next 5-8 years
• Microsoft acquired UMT Portfolio Manager, Q1
  2006.
• To be rebranded Q1FY07 as Microsoft Project
  Portfolio Server 2006, ...becoming Project
  Portfolio Server 2007 in December.
• Fully integrates TODAY with the current Microsoft
  Project 2003 and Microsoft Project Server 2003
  tools.

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Why Project Portfolios?

• Traditional Project Management Gaps
• Financial benefit metrics prove insufficient
• More project ideas than resources ( and people)
• Conflicting, dependent and redundant efforts
• Evolution
• Measure alignment to business strategy
• Approval subject to resource constraints
• Standardize processes and aggregate visibility

Efficient Frontier
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Portfolio and Project Management
Portfolio Management enables organizations to
identify and select the investments that will
maximize business value
100
40 Value Lost
Portfolio Management
Project Mgt.

Project Management enables organizations to
successfully deliver the selected business value
opportunities
Ability to Identify Business Value
Potential (Portfolio Management)
60 Value Realized (average company today)
100
0
Ability to Realize Business Value
Potential (Project Management)
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Successful Organizations Utilize Both
Project/Program and Portfolio Management

• Project Management answers
• Whos available to staff our new projects?
• When will the project really finish and what will
  it cost?
• What am I supposed to be delivering this week?

• Portfolio Management answers
• Have I selected the right project investments?
• Do the project investments align with our
  strategic objectives?
• Do I have sufficient funds and resources to
  deliver the selected project investments?
• Are my project investments delivering the
  forecasted benefits?

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PPM Participant Industries
Banking Fin. Services
Government
Energy Utilities
Manufacturing
Professional Services
Pharmaceutical
Technology
Insurance
Other
Transportation
Healthcare
Food Beverage
Chemicals
Media Entertainment
0
2
4
6
8
10
12
14
Source February 17, 2006 survey of UMT PPM
Webinar Participants
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PPM Selection Today

How are Projects Currently Selected in Your
Organization?
Ad hoc or random
Selected individually on case by case basis
Evaluated against other projects based on
financial ROI
Evaluated against other projects based on
strategic goals
Evaluated against other projects based on
financial ROI AND strategic goals
Financial ROI, strategic goals AND optimized
given budget and resource constraints
0
5
10
15
20
25
30
35
Source UMT Poll Responses from 128 Webcast
Attendees, February 7th, 2006
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PPM Concerns Today
Which of the Following is the Biggest Pain Point
in Your Organization?
Governance Inconsistent Portfolio Management
governance processes across the organization
Monitoring Lack of reporting/monitoring
capabilities around portfolio execution and post
deployment value realization
Consistent Valuation Difficult to compare
projects because of inconsistent valuation
framework
Alignment Ineffective process to align
investment ideas to business strategies
Transparency Poor visibility and missed
opportunities
0
5
10
15
20
25
30
35
Source UMT Poll Responses from 94 Webcast
Attendees, February 7th, 2006
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Alignment of Strategy

• Different perspectives with an SBU can conflict
• In direction
• And in priorities

CEO
Strategy Mgt Office
CFO
CIO
LOB A Executive
Human Resources
COO
LOB B Executive
Job Security
Outsourcing
Middle Market
Luxury Branding
Platform Renewal
Expense Reduction
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Strategic Consensus

• Clear articulation of the enterprise strategy
• Fosters executive consensus on strategic
  priorities
• Focuses project idea generation

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Align Investment to Strategy

• Optimization of project selection promotes
  strategic priorities

Optimized
Unaligned
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The PPM Organization Strengths

• Centralized goals for alignment
• Pooled financial and human resources for scale
  economy
• Standardized processes and metrics for visibility
• Leveraged project management expertise/experience
• Resource, schedule and scope controls

The issue is Governance
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EPM Solution PPM Process Architecture

Create
Select
Manage

Plan
Gov Phases

Complete Project Request Form
Portfolio Prioritization
Detailed Planning
1st Review
Portfolio Tracking
2nd Review
Strategic Value
1
Develop Project Plan
1
Change Request Mgt
1
Financial Value
2
Assign Named Resources
2
Status Reporting
2
Risk Value
3
Define Inter-dependencies
3
Portfolio Re-Optimization
3
PPM Lifecycle Steps
Business Case Development
Portfolio Optimization
Resource Requirements
1
Project Tracking
Cost Estimates
2
Project Tracking
Charting Analysis
1
1
Final Approval
Baseline
Benefit Forecasts
3
Resource Mgt
Constraint Analysis
2
2
Strategic Alignment Assessment
4
Time Reporting
Adv Portfolio Analytics
3
3
Completed
Risk Assessment
5
Issues Risk Mgt
4
Portfolio Selection
Phase Milestone Planning
6
Document Mgt
5
Team Collaboration
6
Microsoft EPM Solution
Portfolio Optimizer
Portfolio Dashboard
Portfolio Builder
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Portfolio BuilderCreate Business Case
Development
Capture all project requests within a central
repository and define business case templates to
standardize the data collection across the
organization.
1
Pre-defined workflows ensure the projects are
subjected to the appropriate governance controls
throughout their lifecycle (i.e. proposal to
post-implementation).
2
Capture Project Requests / Ideas
Governance Workflow
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Portfolio OptimizerSelect Portfolio
Prioritization
Assess the impact of each project request against
the prioritized business drivers
Use proven techniques to define and prioritize
business drivers
Business Drivers
4
3
Projects
Strategic Impact Assessment
Prioritize Business Drivers
Analyze the project portfolio before attempting
to make funding decisions
Derive a priority score to evaluate each project
request (i.e. Strategic Value, Financial Value,
Risk)
6
5
L - Priority - H
Prioritize Projects
Investment Maps
Cost
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Portfolio OptimizerSelect Portfolio
Optimization Advanced Analytics
Benchmark the selected portfolio against the
Efficient Frontier
Utilize sophisticated optimization algorithms to
maximize the portfolios strategic value under
varying budget constraints (i.e. cost, resource
etc.)
8
7
Efficient Frontier Modeling
Calculate and communicate the selected
portfolios alignment with the organizations
strategic priorities
9
What If Analysis
Business Alignment Analysis
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Portfolio DashboardManage Track Measure the
Portfolio Performance
Create real-time project and portfolio
performance scorecards to ensure Executives and
PMOs gain visibility, insight and control across
project portfolios within the organization.
Automatically drill down to the project to view
periodic status reports.
11
10
Portfolio Scorecard
Project Status Report
Utilize intuitive generators to define and
publish report templates to standardize and
streamline the reporting process across the
organization.
12
Portfolio Reporting
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Gaining Control Portfolio Optimization Led to
Gains of 137mm EBIT, 24 Strategic Value for
Same Budget
Portfolio Strategic Value Total EBIT
Original Selection 51 389 M
Optimal Selection 82 564 M
Final Selection (includes mandated projects) 75 526 M
1
2
3
2
3
1
Strategic Value Gain 24 EBIT Increase 137
MM
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Competitive Strengths

• Pure, top-down PPM functionality, not an add-on
• Analytics / What If scenario modeling very
  strong, can generate multiple Efficient Frontiers
• Business Driver prioritization and consensus
  building capabilities
• Ability to compare one Executive's opinion to
  another
• Governance workflow functionality
• Easy to use / intuitive

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Competitive Strengths

• Built on real, practical approaches to real
  client needs
• Strong customer references
• Bi-directional integration to MS Project
  Professional / MS Project Server 2003
• Users of Microsoft's Enterprise Project
  Management solution that require portfolio
  analytics should look no further than Microsoft's
  Project Portfolio Server
• Aggressive Microsoft pricing

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Agenda

• Welcome and introductions
• Agora Overview
• PPM and Portfolio Server Overview
• PPM Implementation Case Study
• Questions and Answers

35
Case Study Background

• Moneris Background
• Co-owned by Royal Bank and Bank of Montreal
• Processes more than 1.8 billion credit and debit
  card transactions a year,
• Over 350,000 merchant locations across North
  America.
• Engagement background
• Interested in piloting UMT Tool to improve
  Project Portfolio Management processes and
  reporting
• Hired Agora in early July to guide pilot
  engagement using UMT Portfolio Manager 3.3
  (Microsoft PPM solution)
• First UMT Implementation in Canada

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Pilot Objectives

• Scenario
• Had 4 portfolios organized by Business Objective
• Status Reporting was done using a variety tools
  and formats
• Project Selection was ad hoc based on individual
  project merits
• Do not use MS Project Server
• Objectives
• Optimize project selection within each portfolio
  to maximize business value
• Improve status reporting to senior management
• Optimize for upcoming budget cycle

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Pilot Outcomes

• One Caveat Still in progress
• Outcomes to date
• PPM Environment is implemented
• Business drivers are defined for the organization
• These drivers are used to help evaluate the
  relative business value of each proposed project
• Have identified Portfolio Risks
• Also used to assess relative project value
• Underway
• Profiling projects in the portfolios
• Assess portfolio mix based on drivers, risks and
  resource constraints

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Lessons Learned

• This is an implementation of process and
  procedure enabled by technology
• Never lose sight of the Process and People Change
  Management issues
• Do not let the technology drive the process
• Identify a strong internal champion
• Involve key stakeholders (Senior Management) from
  the beginning
• Buy-in and People Change Management is very
  important
• Build a common understanding and vision of
  Portfolio Management for your organization
• Prepare key stakeholders for a large time
  commitment
• Keep people focused on the tasks at hand

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Lessons Learned

• Work to the right level of detail to avoid
  getting bogged down
• Focus on key business drivers and try and limit
  the list to 5 to 8 essential measures
• Build consensus across business units and
  management levels
• Identify key information for evaluating projects
• Determine method of capturing this information
  about each project
• Be consistent with information across projects
• Make sure required information is feasible
• Structure the Portfolio Server implementation as
  a project
• Identify the project team
• Build and work a project plan
• Communicate, communicate, communicate

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Implementation Recommendations

• Do a pilot first
• Start small focus on key functionality to your
  business first
• Document the configuration thoroughly
• Train on use of tool and PPM concepts
• Manage the People Change Management process
  through the implementation

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David Wright President dwright_at_agorainc.com (416)
304-1338 x14

• Paul Estabrooks
• Vice President, Sales
• pestabrooks_at_agorainc.com
• [phone] x11

• Kevin Walker
• Technology Director
• kwalker_at_agorainc.com
• [phone] x12

Thank you