Transcript Selling PMO to Your Organization

PMO Tools & Techniques
PMI-MN Breakfast Series
November 9, 2004
Orrin Butterfield, PMP
Project Management Office, Office of Technology
State of Minnesota
Agenda
Requirements

Review several points from first two sessions

Type of “PMO”
Process (Techniques)

PMO Conceptual Model

“PM101” basics

Enterprise Portfolio Management

Investment Management
Solutions (Tools)

Portfolio Approach

Measures

Scorecards & Dashboards

Selection Criteria

Gartner’s Magic Quadrant
PMO Tools & Techniques
November 9, 2004
2
“Requirements”
Selling the PMO – (Extracts)
Process and efficiency areas must present and justify
their operations in terms valued by the organization

Value propositions need to be succinct and measurable, in
spite of limited resources to provide metrics or prove value
PMOs must find a way to contribute to the company
in terms which are



Measurable
Understood by management
Aligned with stated corporate strategies
PMOs must be able to contribute


For regular, expected activities
For unscheduled, emergency situations
PMO Tools & Techniques
November 9, 2004
3
“Requirements”
PMO Sales Objectives
Value measured in contribution to other
critical objectives. Examples:





Reduction of administrative time
Swifter communication of actionable issues
Improved satisfaction
Consistency of project execution
Improvement in projects’ ‘success criteria’
Demonstrate value regularly and visibly
Risk: Promoting value without over promising
the benefits and results
PMO Tools & Techniques
November 9, 2004
4
“Requirements”
PMO Defined
What does the ‘P’ mean?
Project Management Office
 Program Management Office
 Portfolio Management Office

The type of PMO desired impacts the
strategy on how to sell the PMO and
choice of tools and techniques
PMO Tools & Techniques
November 9, 2004
5
“Requirements”
PMO Function Landscape
Examples
Planning
Prioritization &
alignment
Delivery and
execution
Mentoring
Reporting and
visibility
Resource Mgmt.
PMO Tools & Techniques
Monitoring and/or
tracking
Quality assurance
Risk management
Issue resolution
Governance
Tools, best practices
November 9, 2004
6
“Requirements”
PMO Customer Landscape
Project
Team
Owners
Executives
PSOs*
Support &
Maintenance
PMO
Sponsors
Operational
Strategic
* Project Support Organization
PMO Tools & Techniques
November 9, 2004
7
“Requirements”
Value Category -->
To Whom
Executives
Sponsors
Owners
Users/Consumers
Project Team
PMO
PSOs
Support &
Maintenance
Pla
nn
ing
Pr
ior
itiz
ati
De
on
liv
ery
an
To
de
ols
xe
,b
cu
e
st
tio
Me
pr
n
nt o
a
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rin
t ic
g
es
Mo
nit
ori
ng
Re
an
po
d/o
rti
ng
rt
rac
Qu
a
nd
ali
kin
vis
ty
g
as
i
b
Ri
ilit
su
sk
y
ran
ma
c
e
na
Iss
g
e
ue
me
r es
nt
olu
t io
n
Customer/Function Alignment
X
X
X
X
X
X
X
X
X
X
PMO Tools & Techniques
X
X
X
X
X
X
X
X
X
X
X
X
X
X
November 9, 2004
8
“Requirements”
Organization Tactics
Sample Roadmap
2004
2005
Benefits
Capabilities
Features
• Develop project portfolio (Visibility)
• Capture project work plans and time
2006
• Integrate portfolio with annual
planning (planning)
Repository of project artifacts
(Mentoring, Execution)
Triage and Demand Management
(planning)
Scorecards (Reporting, visibility)
PM Competency Model & Training
(mentoring, quality)
tracking (Resource Management)
• Basic project health summary
(Reporting)
• Project / Methodology (Quality,
Mentoring)
• Estimating Tools & Templates
(execution)
•
• Ability to demonstrate improved Project
• PM Metrics
• Forecasting - Capacity Analysis
• Proactive management of resource
Management competency
• Consistency of process and language
• Comparison of key projects using
consistent and impartial measures
• Reduce confusion of how project shown
be run
• Single point of
Reporting/Communication
• Enabled fact-based discussions with
CIO’s
• Single point for reporting
• Clarification of Roles & Responsibilities
•
•
•
conflicts
• Measurable & repeatable use of
methodology, tools & artifacts
• Prediction of project health
• Compressed time to “Ramp up” new
employees
• Fact-based Customer Interaction
• Improved cycle times for estimates
• Trained, competent PMs and
Functional Managers
PMO Tools & Techniques
• Financial/PM Integration
• Self-service reporting (Visibility)
• Single point intake of projects and
service requests (planning,
prioritization)
• Earned Value Management (quality)
• Repository of best practices (tools)
• Robust IT planning & integration
• Predictable, manageable & repeatable
estimation
• Transparency of Status Reporting
• Understanding of TCO
• Financial Chargeback
• Clearly defined, easier-to-use
processes for all stakeholders
• Immediate responses to inquiries on
project status, health and issues
• Defensible alignment of projects to
strategic goals
November 9, 2004
9
Project Management Office
“Technique”
• Support Project Management and
Project Oversight
• Provide Project Management “Best
Practices” Training and Coaching
• Establish Project Manager as a Critical
Skill Professional
• Project Manager Mentoring and
Coaching
• Review Statement of Work and
Request for Proposal
• Assist in setting up Agency Project
Management Offices
• Phase and Project Reviews
• Provide Methodology
• Provide Templates
• Provide Tools
• Provide a PMO web-site that allows
convenient access to Project
Management information as well as the
Enterprise PMO methodology, templates
and tools
• Project Management Collaboration
through the Web Site
• Assist agencies in integrating project
management practices into agency processes
and projects
• Build efficiency across state projects and
avoid redundancy across the enterprise.
PMO Tools & Techniques
• Implement a consistent approach to
project data collection and reporting that
agencies may follow
• Support Agency Program/ Project reviews
• Help agencies measure anticipated project
benefits by providing project outcomes
evaluation methodology, templates and
tools
November 9, 2004
10
“Technique”
Oversight Techniques – a little “PM101”
Approved Budget
Business Case
Market Analysis
Product Development
Projects
Jan
Feb
Take To Market
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral
8.
Outcomes
9. Archive, Extract,
Project
Status
Update
10. Business
Development
11. Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
•
•
•
•
•
•
Additions
15. Specialty
Guidelines
16. User defined
LOS
17. BHS
Cost
Schedule
Scope
Issues
Change control
Plans
Critical
Outcomes
Assessment
 Color is red
 Four wheels
 Owners manual
 Maintenance
manual
end
date
 Within budget
 On time
What’s a
project?
start date
Specific tangible
deliverables are produced:
For example a “red car”
Resources
PMO Tools & Techniques
November 9, 2004
11
“Technique”
So what’s the problem?
? ?
?
?
?
Approved Budget
Approved Budget
Business Case
Approved Budget
Approved BudgetBusiness Case
Approved Budget
Market Analysis
Product Development Take To Market
Projects
Jan
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral
8.
Outcomes
9. Archive, Extract,
Update
10. Business
Development
11. Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
Additions
15. Specialty
Guidelines
16. User defined
LOS
17. BHS
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Proj
ect
• Cost
Outcom
Stat
• Schedule
 Color
es is
Proje • Scope
us
red
Assess
• Issues
ct
Critical
 end
Four
ment
• Cost
start
Statu • Change
wheels
Outcome
control
date
Specific tangible
• Schedule
s

Projec • Scope
date
s
• Planes
 Color Owners
is
manual
deliverables
t
Assessm
• Issues
redare
 Mainten
Status • Change
Critical
 Four
ent
produced:
ance
end
Project
• Cost
control
Resources
wheels
manual
• Schedule
ForOutcomes
example
a
Status
• Planes
 date
Owners

Within
• Scope
Assessme
Project
Specific tangible
manual
Critical
“red
car”

Color
is
red
budget
•
Issues
nt
Status
• Cost
areMaintenan
deliverables
• Change

Four
wheels

On time
Outcomes
• Schedule
ce manual
 Owners
• Scopecontrol Critical
produced:
Assessmen

Within
• Cost• Planes
manual
• Issues
Color
red
budget
t ais“red
• Schedule
Outcomes
end
For 
example

Maintenanc
• Change

Four
wheels

On time
•
Scope
Resources
Assessment
e manual
control
date
 car”
Owners
• Issues

Color is red

Within
• Planes
manual
• Change control

Four wheels
Specific
tangible
budget
end
 Maintenance
• Plans


On
time manual
manual
deliverables
areOwners
date
Maintenance
 Within
manual
produced:budget
end
date
Specific tangible

Within
budget

On
time
For example 
a “red
On
time
deliverables are
Market Analysis
Product Development
Projects
Jan
Feb
Critical
Take To Market
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral
8.
Outcomes
9. Archive, Extract,
Update
10. Business
Development
11. Critical
Pathway
12. CCM
Business Case
What’s a
project?
13.
Reporting
14. Med / Surg
Additions
15. Specialty
Guidelines
16. User defined
LOS
17. BHS
Market Analysis
Product Development
Projects
Jan
Feb
Take To Market
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Business Case
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral
8.
Outcomes
9. Archive, Extract,
Update
10. Business
Market Analysis
Business Case
Product Development
Projects
Jan
Feb
Development
11. Critical
Take To Market
Pathway
12. CCM
Mar
Apr
1. Testing /
May
Jun
Reporting
14. Med / Surg
Jul
Aug
Sep
Oct
Nov
Dec
Guidelines
16. User defined
Support
3. Med /Surg
start
date
13.
Additions
15. Specialty
QA
2. Customer
LOS
17. BHS
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
Market Analysis
7. Physician
Product Development
Take To Market
Referral
8.
Projects
Outcomes
9. Archive, Extract,
1. Testing
Update /
10. Business
QA
Development
2. Customer
11. Critical
Pathway
Support
3. Med
/Surg
12. CCM
Updates
13.
4. Disability
Reporting
14. Med / Surg
5. Distributed
Data
Additions
Arch 15. Specialty
6. Remote Dial In
Guidelines
(IMS)16. User defined
7. Physician
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
What’s a
project?
LOS
17. BHS
Referral
8.
Outcomes
9. Archive, Extract,
Update
10. Business
Development
11. Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
Additions
15. Specialty
Guidelines
16. User defined
LOS
17. BHS
start
date
start
date
start date
Resources
What’s a
project?
What’s a
project?
What’s a
project?
car”
produced:
Specific
tangible
For
example
a
“red
car”
deliverables are produced:
For example a “red car”
Resources
Resources
PMO Tools
& Techniques
November 9, 2004
12
“Technique”
So what’s the problem?
Enterprise Project
Portfolio Management
? ?
?
?
?
Approved Budget
Approved Budget
Business Case
Approved Budget
Market Anal ysis Product DevelopmentTake To Market
Proj ects
Jan
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral
8.
Outcomes
9. Archive, Extract,
Update
10.
Business
Development
11.
Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
Additions
15.
Specialty
Guidelines
16.
User defined
LOS
17. BHS
Feb
Mar
Apr
May
Jun
Jul
Approved BudgetBusiness Case
Approved Budget
Market Anal ysis
Product Development Take To Market
Proj ects
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Updates
4. Disability
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
7. Physician
Referral
8.
Outcomes
9. Archive, Extract,
Update
10.
Business
Development
11. Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
Additions
15. Specialty
Guidelines
16.
User defined
LOS
17. BHS
Business Case
Market Anal ysis
Product Development
Proj ects
Jan
Feb
Take To Market
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
1. Testing /
QA
2. Customer
Support
3. Med /Surg
Business Case
Updates
4. Disability
P
r
o
j
e
c
u
s
5. Distributed Data
Arch
6. Remote Dial In
Outcomes
9. Archive, Extract,
t
Update
10. Business
Business Case
Product Development
Proj ects
Jan
Feb
Development
11. Critical
Take To Market
Pathway
12. CCM
Mar
Apr
1. Testing /
QA
2. Customer
13.
May
Jun
Reporting
14. Med / Surg
Additions
15. Specialty
Jul
Aug
S
Sep
Oct
t
Nov
a
Dec
t
Guidelines
16. User defined
Support
3. Med /Surg
LOS
17. BHS
Updates
4. Disability
5. Distributed Data
Arch
6. Remote Dial In
(IMS)
Market Anal
7. ysis
Physician
Product Development
Take To Market
Referral
8.
Outcomes
Proj ects
9. Archive, Extract,
1. Testing
Update
/
10. Business
QA
Development
2. Customer
11. Critical
Pathway
Support
3. Med
/Surg
12. CCM
Updates
13.
4. Disability
Reporting
14. Med / Surg
5. Distributed Data
Additions
Arch15. Specialty
6. Remote Dial In
Guidelines
(IMS)16. User defined
7. Physician
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
What’s a
project?
LOS
17. BHS
Referral
8.
Outcomes
9. Archive, Extract,
Update
10. Business
Development
11. Critical
Pathway
12. CCM
13.
Reporting
14. Med / Surg
What’s a
project?
What’s a
• Plans
project?a
What’s
Additions
15. Specialty
Guidelines
16. User defined
LOS
17. BHS
start
date
Scope
Stateme
nt
Scope
n
Stateme
t
Scope
nt
Stateme
Sep
Oct
Nov
Dec
project?
Resources
R
e
s
o
u
r
c
e
s
C r itic a l
Outcom
 Color
es is
red
Assess
 end
Four
ment
wheels
Outcome
Specific tangible
date
s Owners
 Color
is
manual
deliverables
Assessm
redare

Mainten
 Four
ent
produced:
ance
end
wheels
Outcomes
For example
amanual
 date
Owners
 Within
Assessme
Specific tangible
manual
car”
budget
 “red
Color
is red
nt
Maintenan
deliverables
are
On time

Four wheels
Outcomes
cemanual
 Owners
produced:
Assessmen
 Within
manual
Color
red
budget
t ais“red
end
Outcomes
For 
example
Maintenanc
 
Four
wheels

On time
Assessment
e manual
date
 car”
Owners

Within

Color is red
manual
Specific 
tangible

Four wheels
endbudget
Maintenance
On
time manual

Owners
manual
deliverables
are
dateMaintenance
 
Within
manual
produced:budget
end
date
Specific tangible

Within

On
time budget
For example 
a “red
deliverables are On time
What’s a
project?
(IMS)
7. Physician
Referral
8.
Market Anal ysis
start
date
start date
Aug
Proj
ect
• Cost
Stat
• Schedule
Proje • Scope
us
C r it ic a l
• Issues
ct
• Cost
start
Statu • Change
control
• Schedule
s
Projec • Scope
date
• Planes
Scope
t
• Issues
State
Critical
Status
• Change
t
n
me Project
• Cost
Resources
control
start
• Schedule
Status
• Planes
• Scope Critical
Project
date
• Issues
Status
• Cost
Scope
• Change
•
Schedule
control Critical
Statem
•
Scope
• Cost• Planes
ent
Issues
•• Schedule
Change
•• Scope
Resources
control
• Issues
Planes control
•• Change
R
O
n
t
i
m
e
car”
produced:
Specific
tangible
For exampleare
a “red
deliverables
produced:
car” a “red car”
For example
Resources
PMO
Tools & Techniques
Resources
November 9, 2004
13
“Technique”
Enterprise Portfolio Management
Budget
Approval
“Stuff”
Budget
Review
Strategic
“Ideas”
Agency IT
Strategic
Planning
Agency
Strategic
Planning
Agency
Strategic
Plan
SIRMP
Prepare
for Budget
Review
Agency IT
Strategic
Plan
Project
Project
Concept
Concept
Business
Case
Budget
Approval
Finance
Recommendations
Approved
Budget
Strategic Planning
Process
Enterprise
Architecture
Business
Case
Scope
Statement
Enhancements
The Handshake
Project
Initiation
Project
Planning
Project Management
Process
PMO Tools & Techniques
• Project Manager
• Project Sponsor
• Steering Committee
November 9, 2004
14
“Technique”
Project Tracking & Outcomes Evaluation
Project
Management
Office
Finance
Approved
Budget
Project Management Methodology
Scope
Business
Statement
Case
Project
Initiation
Status
Outcomes
Report
Assessment
Project
Execution
Project
Planning
Project
Closeout
Project Discipline Methodology (software example)
Business
Assessment
Analysis

Design

PMO Tools & Techniques

Implementation

Rollout
Testing
November 9, 2004


15
“Technique”
Enterprise Portfolio Summary
State of Minnesota Enterprise
Project Portfolio
Enterprise Summary (Projects > $1M)
Agency
Status
Project
Administration Department
NONE
Electronic Procurement
NONE
Technology Enterprise Fund
GREEN
North Star Enterprise Portal
NONE
EGS Security Infrastructure
NONE
EGS Directory Services
Agriculture Department
NONE
Compliance Enhancement - Project Unity
Children, Families, & Learning
NONE
School Academic and Financial Performance
NONE
Minnesota Electronic Child Care Information System
Economic Security Dept
GREEN
UI Technology Initiative
Employee Relations Dept
GREEN
SEMA4 Upgrade Phase II
Finance Dept
GREEN
SEMA4 Upgrade Phase II
Health Dept
COMPLETE Case Mix Automation
Higher Ed Services Office
NONE
Minnesota Library Information Network (MnLINK)
Human Services Dept
NONE
Shared Master Index/Common Access Protocols
Natural Resources Dept
NONE
Electronic Licensing System
Pollution Control Agency
GREEN
Environmental Information Access Initiative, Upper
PMO Tools & Techniques
Cost
Start
End
$14,925,000
$1,000,000
$1,500,000
$1,900,000
$2,075,000
07/01/2002
07/01/2001
07/01/2001
07/01/2000
07/01/2000
06/30/2007
06/30/2003
06/30/2003
06/30/2003
06/30/2003
$1,250,000
07/01/2001
06/30/2003
$1,400,000
$5,800,000
06/17/2002
09/29/2000
06/30/2003
09/30/2003
$3,449,763
11/01/2002
03/05/2002
$7,593,000
07/01/2001
06/30/2003
$7,593,000
07/01/2001
06/30/2003
$1,002,395
07/01/2001
01/01/2003
$12,000,000
07/01/1997
$3,600,000
01/03/2003
12/04/2003
$2,500,000
12/01/1999
12/31/2001
$1,436,308
07/01/2001
06/30/2003
November 9, 2004
16
“Technique”
Project Query
Monthly Status Report
Executive Summary
Agency:
Project Manager:
Overall Status:
Business Case:
CIO:
John Franks
Projects:
Project Name: New Business Application
Corrections
DNR
Human Services
Business
Transportation
Reporting Period: December 2001
Project Manager: David Clark
Project Owner: Mary Carson
Overall Status:
Red (caution)
Green
Yellow
Red
(controlled)
(caution)
(critical)
Sponsor:
Budget
David Clark
Red
Start:
Reason for Deviation
Steering Committee:
Mary Carson

Yes
Schedule

Staffing, government shut down, strike
Scope

Magnitude of deliverable under estimated,
additional responsibility (e.g., TEF and similar
oversight efforts)
Completion:
10/15/2001
6/15/2002
Present Issues/ Concerns/ Risks
Budget
Variance
Current
Budget
Current
Forecast
$1,000,000
$5,400,000
$6,400,000
Yes
New Business Application
Strategic Planning for 2002
EGS Support
Project Sponsor: Mary Carson
Internet and Telephone Updates
Systems Support
Scope Statement:
Yes
PMO Tools & Techniques
Outcomes Assessment:
November 9, 2004
No
17
“Technique”
Enterprise Portfolio Status
FY03 Project Status
Total Projects
29
32
32
25
20
Projects
Red
Yellow
Green
None
Complete
15
10
5
0
1st Q 2nd Q 3rd Q 4th Q
PMO Tools & Techniques
November 9, 2004
18
ITIM Maturity Stages & Critical
Processes
“Technique”
Maturity Stages
Stage 5
Leveraging IT
for Strategic
Outcomes
Stage 4
Improving the
Investment
Process
Stage 3
Developing
A complete
Investment
Portfolio
Stage 2
Building the
Investment
Foundation
Stage 1
Creating
Investment
Awareness
Critical Processes
• Investment Process Benchmarking
• IT-Driven Strategic Business Change
• Post-Implementation Reviews & Feedback
• Portfolio Performance Evaluation & Improvement
• Systems & Technology Succession Management
• Authority Alignment of IT Investment Boards
• Portfolio Selection Criteria Definition
• Investment Analysis
• Portfolio Development
• Portfolio Performance Oversight
• IT Investment Board Operation
• IT Project Oversight
• IT Asset Tracking
• Business needs for IT Projects
• Proposal Selection
• IT Spending without Disciplined
• Investment Processes
GAO/AIMD ITIM Framework
PMO Tools & Techniques
November 9, 2004
19
ITIM Stages of Maturity & Critical
Maturation Steps
“Technique”
Maturity Stages
Stage 5
Leveraging IT
for Strategic
Outcomes
Stage 4
Improving the
Investment
Process
Stage 3
Developing
A complete
Investment
Portfolio
Stage 2
Building the
Investment
Foundation
Stage 1
Creating
Investment
Awareness
Critical Maturation Steps
• Focus on improving strategic outcomes
• Capability to change business processes to take
advantage of technology changes
•Learn from others by benchmarking processes
• Development of mature evaluation processes
• Capability to modify IT investment management
process resulting in more favorable outcomes
• Development of mature selection processes
• Movement from project-based to portfolio
based IT management
• Collection of cost, benefit, schedule, and risk
data for all projects
• Better understanding the IT investment approach
• Develop mature control process
• Maintenance of basic selection processes
GAO/AIMD ITIM Framework
PMO Tools & Techniques
November 9, 2004
20
Process: IT Investment
Management (ITIM)
“Technique”
Balanced
Scorecards
State
Strategic
Technology
Plan
Agency
Strategic
Technology
Plans
Select
Budget
Initiatives
Operations
Review
Outcomes
Assessment
Assess
Status
Select
Phase
Evaluate
Phase
Control
Phase
• Strategic Planning
• Conceptual Planning
• Requirements Definition
• Create/Maintain Inventory
• Get measures
• Pick process
• Prioritize
PMO Tools & Techniques
November 9, 2004
21
Process: IT Investment
Management (ITIM)
“Technique”
Balanced
Scorecards
State
Strategic
Technology
Plan
Agency
Strategic
Technology
Plans
Select
Budget
Initiatives
Operations
Review
Assess
Status
Select
Phase
Evaluate
Phase
Control
Phase
Outcomes
Assessment
PMO
• Project Execution, Management
& Oversight
• Apply Project Management Practices
• Monitor Progress
• Take Corrective Actions
PMO Tools & Techniques
November 9, 2004
22
Process: IT Investment
Management (ITIM)
“Technique”
Balanced
Scorecards
State
Strategic
Technology
Plan
Agency
Strategic
Technology
Plans
Select
Budget
Initiatives
Operations
Review
Outcomes
Assessment
Assess
Status
• Collect scorecards
• Conduct Reviews
• Make Adjustments
• Apply Lessons Learned
Select
Phase
Evaluate
Phase
Control
Phase
PMO Tools & Techniques
November 9, 2004
23
Process: IT Investment
Management (ITIM)
“Technique”
Balanced
Scorecards
State
Strategic
Technology
Plan
Agency
Strategic
Technology
Plans
Select
Budget
Initiatives
Operations
Review
Outcomes
Assessment
Assess
Status
Select
Phase
Evaluate
Phase
Control
Phase
Sample Processes
• Project Portfolio Management
• Business Process Re-engineering
• Decommissioning
• SIRMP
PMO Tools & Techniques
November 9, 2004
Sample Measures
• Total Cost of Ownership
• Total Economic Impact
• Cost Benefit Analysis
• Value On Investment
• Risk
• Velocity
• Business Efficiency
• Business Effectiveness
• Useful Life
24
“Tool”
Results:
Investments aligned with strategic goals
Investments made using a formal
governance process
Decision makers prioritize investments
with a Enterprise-wide view (and good
data!)
PMO Tools & Techniques
November 9, 2004
25
How does a portfolio approach
get us there?
“Tool”
Employs a standardized set of
measures
Classifies investments
Tracks, categorizes, prioritizes
Uses periodic formal reviews to manage
for results, reassess and balance
PMO Tools & Techniques
November 9, 2004
26
“Tool”
Kinds of measures?
Government transformation
Improved service to citizens
Total Cost of Ownership
Total Economic Impact
Cost Benefit Analysis
Value on Investment
Velocity
Useful life
Risk
PMO Tools & Techniques
November 9, 2004
27
“Tool”
Balanced scorecard — Measure
financials, but not only financials
PMO Tools & Techniques
November 9, 2004
28
“Tool”
Why do it?
Save money
Get better results
Measures are based on core values
Decision-making is supported by data
PMO Tools & Techniques
November 9, 2004
29
“Tool”
What kinds of data?
Financial
Value expectations
Business impact
Benefit realization
Value delivered at each phase
Status
PMO Tools & Techniques
November 9, 2004
30
“Tool”
Portfolio Management Dashboard
Project Status
Lorum bspo
PMO Tools & Techniques
November 9, 2004
31
“Tool”
Manage portfolio by…
Risk
Investment type
New
High
Medium
Low
Enhancement
Maintenance
Strategic
Government
function
Government process
Public Safety
Tax Collection
Health
Permit
Issuance
Education
Grant Making
Economic
Development
PMO Tools & Techniques
November 9, 2004
32
“Tool”
Enterprise Portfolio Summary
State of Minnesota Enterprise
Project Portfolio
Enterprise Summary (Projects > $1M)
Agency
Status
Project
Administration Department
NONE
Electronic Procurement
NONE
Technology Enterprise Fund
GREEN
North Star Enterprise Portal
NONE
EGS Security Infrastructure
NONE
EGS Directory Services
Agriculture Department
NONE
Compliance Enhancement- Project Unity
Children, Families, & Learning
NONE
School Academic and Financial Performance
NONE
Minnesota Electronic Child Care Information System
Economic Security Dept
GREEN
UI Technology Initiative
Employee Relations Dept
GREEN
SEMA4 Upgrade Phase II
Finance Dept
GREEN
SEMA4 Upgrade Phase II
Health Dept
COMPLETE Case Mix Automation
Higher Ed Services Office
NONE
Minnesota Library Information Network (MnLINK)
Human Services Dept
NONE
Shared Master Index/Common Access Protoc
ols
Natural Resources Dept
NONE
Electronic Licensing System
Pollution Control Agency
GREEN
Environmental Information Access Initiative, Upper
PMO Tools & Techniques
Cost
Start
End
$14,925,000
$1,000,000
$1,500,000
$1,900,000
$2,075,000
07/01/2002
07/01/2001
07/01/2001
07/01/2000
07/01/2000
06/30/2007
06/30/2003
06/30/2003
06/30/2003
06/30/2003
$1,250,000
07/01/2001
06/30/2003
$1,400,000
$5,800,000
06/17/2002
09/29/2000
06/30/2003
09/30/2003
$3,449,763
11/01/2002
03/05/2002
$7,593,000
07/01/2001
06/30/2003
$7,593,000
07/01/2001
06/30/2003
$1,002,395
07/01/2001
01/01/2003
$12,000,000
07/01/1997
$3,600,000
01/03/2003
12/04/2003
$2,500,000
12/01/1999
12/31/2001
$1,436,308
07/01/2001
06/30/2003
November 9, 2004
33
“Tool”
Tool Choice Criteria
Vendor Viability
Industry Presence
Relationship to
Organization
Price & Performance
Required functionality
and features
PMO Tools & Techniques
Service & Support
Product maturity
Impact to environment
Organizational Impact
References
November 9, 2004
34
“Tool”
Gartner’s Magic Quadrant for PPM
PMO Tools & Techniques
November 9, 2004
35
“Tool”
Microsoft Office EPM Solution
Visibility into key
initiatives and resource
utilization across the entire
organization
Insight into how initiatives
and resources align with
business objectives and
performance
Control of projects and
resources to make smart
decisions as business
conditions change
PMO Tools & Techniques
November 9, 2004
36
Questions
PMO Tools & Techniques
November 9, 2004
37