Wk 10 Portfolio Management

7/29/2019 Wk 10 Portfolio Management

1/19

Project PortfolioManagement

The beauty of portfolio management isthat ultimately, the prioritization processwill allow you to fund the projects that

most closely align with your companysstrategic objectives


2/19

2

Why? Align IT resources with business objectives

Build strong IT governance structure

Ensure proper executive & business supportof IT projects

Maximize IT investments

Reduce # of redundant projects

Make it easier to cancel projects Set expectations

Develop IT plan and IT budget


3/19

Steps to SuccessfulProject Portfolio

Management

There is no single right

way to do portfolio

management.


4/19

4

Steps

Gather a detailed inventory of all projects

Set strategic objectives for the company

Align projects with objectives

Score and categorize projects

Actively manage portfolio

1

2

3

4

5

IT Plan, Budget


5/19

5

Inventory of Projects

Some companies using PPM, begin with taking acomplete inventory of current requested projects.

Other companies benefit from starting from scratchwith the process and require that all projects be re-requested and re-assessed through PPM.

This presentation outlines the process for startingfrom the beginning with all projects being requestedas new and therefore we skip to the next step SetStrategic Objectives.

1

Software upgrades

New systems

Policy changes

Product

development

Internal controls

Workflow

automation

Infrastructure

Facilities


6/19

6

Set Strategic Objectives

One 3 hour meeting with all company Vice Presidents and President/CEO

Operating Plan structure is set at 3 levels

Objectives (Why?)

Initiatives (What?)

Projects (How?)

Objectives are brainstormed and decided upon in this meeting with allattendees prepared with 3-5 recommended objectives.

Discussion serves as kick-off to next year and a chance to openly, informallydiscuss company strategies and challenges.

2

CEO, CFO, CIO, EVP, VP HR, Division President,

VP Books, VP Journals, VP Reference, VP Sales/Mktg


7/19

7

Set Strategic Objectives2

Sample Operating Plan Objectives

(Publishing Company)

1 Create specific competitive advantages to attract and retain the best co-workers,authors, editors and societies

2 Develop global business practices and systems to increase revenue, reduce costs andimprove coordination between sites

3 Ensure our book product lines are coherently organized and effectively resourced togenerate substantial growth in our markets

4 Position company to take greatest advantage of growth opportunities in journalsbusiness

5 Develop Marketing and Sales organization in line with changing product needs,customer relations and technology opportunities

6 Grow through the purchase of lists and/or companies

7 Develop local infrastructure to mitigate risk and obtain operational efficiencies


8/19

8

Set Strategic Objectives

VPs brainstorm initiatives in support of the objectives with direct

reports (directors and senior managers) within their department.

Another 3 hour meeting is held with all VPs and direct reports to

review all recommended initiatives by department. Initiatives arediscussed and agreed upon in this meeting.

A good amount of cleanup is required on this list after the meeting

(deleting duplicates, merging similar initiatives, etc.

Finalized list is distributed to all VPs and direct reports (now referred

to as the Operating Plan Team). Involvement of direct reports at this level serves the purpose of

generating early buy in to the Operating Plan process by senior

management.

21.Objective

2.Initiative

3.Project


9/19

9

Set Strategic Objectives21.Objective

2.Initiative

3.Project

Ensure our book product lines are coherently organized and

effectively resourced to generate substantial growth

Improve process for managing the rollover of adoptionsto new editions

VP Books

Improve integration of the Reference line throughout the

organization

VP Reference

Reduce costs and improve transactional efficiencies in

the book life cycle

CFO

Grow the XYZ brand Division

President


10/19

10

Align Projects

1. Department VPs and their direct reports are responsible forrecommending projects that will support each initiative in alignment withthe company objectives.

2. Each senior manager must enter recommended projects into the

Operating Plan system. Only VP approved projects are entered into thesystem, cutting down drastically on frivolous project requests.

3. Each project entry requires a high level justification including projectdescription, business benefits, executive sponsor, business manager,estimated quarter of completion, etc.

4. The projects are then turned over to IT to assign IT owners and estimatecosts for all projects requiring IT support.

5. All proposed projects are then reviewed in individual departmentalmeetings chaired by the CIO, CFO and EVP with attendees being thedepartment VP and their direct reports.

6. Department VPs and direct reports are given this opportunity to introducethe project and sell it to the chairs for approval.

31.Objective

2.Initiative

3.Project

!


11/19

11

Align Projects31.Objective

2.Initiative

3.Project

Ensure our book product lines are coherently organized and

effectively resourced to generate substantial growth

Improve integration of the Reference line throughout the organization

Develop reference production tracking module withinexisting books production tracking system

Director ofBooks

Production

Develop and implement plan for electronic reference

databases as part of the on-line journals platform

VP Reference

Provide Reference editors with a project management

tool for managing reference works in development

Reference

Manager

Objective

Initiative

Projects


12/19

12

Score Projects

During the project review meetings, each project is assessed based on

strength of support for initiative/objective, estimated business benefits, and

estimated costs.

As a closing to the discussion on each project, the project is assigned a

status and an action level. The action level is assigned first and drives the status and next steps, as

outlined below:

41.Objective

2.Initiative

3.Project

Action Level: Status: Next Steps:

1. Start Project Accepted Begin projects in order of priority

2. Start after validation* Proposed Begin validation process3. More research needed Proposed Continue research and propose again

4. Unlikely to start this year Proposed Hold (candidate for Q4 if resources allow)

5. Do not start this year Deferred Hold for next year and propose again

* Validation refers to a more in-depth cost/benefit analysis required of thebusiness owner before a project is formally accepted or deferred


13/19

Page 1 of Project Proposal Form in Operating Plan System


14/19

Assigned by IT

Status:

Proposed

Accepted

Deferred

(All project requests default to

proposed. Only Department

VPs can change this field)

Action Level:

1 Start Project

2 Start after validation

3 More research needed

4 Unlikely to start this year

5 Do not start this year

Page 2 of Project Proposal Form in Operating Plan System


15/19

15

IT Plan and Budget

After all projects are reviewed and scored, the Department VPs are

tasked with prioritizing all action level 1 and 2 projects for their

department. The priorities are simply high, medium and low.

The Operating Plan is then handed over to IT to schedule all actionlevel 1 and 2 projects that require IT support into the four quarters of

the year with estimated start and complete quarters. This scheduling

is based on priority and action level with the high priority, action level

1 projects at the top. IT resource leveling is done at this time.

This schedule is the first draft of the IT plan for the coming year. It is

then tweaked as needed when looked at on paper for anomalies,

special considerations, etc. This schedule will also become the basis

for the IT budget.

4.5

1.Objective

2.Initiative

3.Project


16/19

16

Actively Manage Portfolio

Monthly IT Steering Committee (ITSC) chaired by CIO. Members of

committee include CEO, CFO and EVP. All other VPs attend asneeded based on agenda of items to be discussed.

Purpose of committee:

Business owners and department VPs present projects requiringvalidation before approval. ITSC approves or denies these projects.

Monthly status given on large-scale, strategic IT projects from theOperating Plan. Provides forum for strategic IT spending decisions and updates on

critical system issues/concerns.

Provides forum for reprioritizing projects based on mid-year changes incompany priorities/strategies.

5

Portfolio Management without governance is an empty concept


17/19

17

Actively Manage Portfolio

Quarterly review of entire Operating Plan at standing Executive

Committee meetings. All VPs are required to give status of

initiatives and projects quarterly.

Quarterly review by CEO of high-level Operating Plan at Board of

Directors Meetings.

5


18/19

Hurdles to PortfolioManagement

Democracy aint easy


19/19

19

Hurdles

Team: Many executives are initially uncomfortable having theirdecisions scrutinized. It requires real teamwork at theexecutive level to support portfolio management andgovernance. Executive buy-in is absolutely required up front.

Complexity: The desire to overcomplicate this process withcomplex scoring and red tape is overwhelming. Keep it simpleat first then improve upon the process as participants becomefamiliar with the steps.

Software: Do not rely on project portfolio management tools tomanage this process for you. No one tool does everything andmany tools complicate the process. Sage wrote their own tool

in an attempt to keep it simple. Time: This requires an additional time commitment from

executives above and beyond their usual constraints. Comingto meetings prepared is the key to keeping this process timesensitive.

Wk 10 Portfolio Management

Documents

Transcript of Wk 10 Portfolio Management