Project Portfolio Management PPM Microsoft Office Project Portfolio

Project Portfolio Management (PPM) Microsoft Office Project Portfolio Server Ann-Charlotte Arrhenius anarrhen@microsoft. com

UMT have a Proven Track Record UMT, established in 1989, specializes in project portfolio management, and deploys the most sophisticated software tools available today. With offices in New York and London, UMT’s consulting services enable companies to manage their project portfolios throughout their lifecycle. Our software was recently sold to Microsoft to be added onto the Enterprise Project Management Solution. We have implemented PPM solutions in over 50 clients within Fortune 1000 type companies. Our solution enables companies to Create, Select, Plan and Manage their project portfolios at all levels. As the pioneers and thought leaders of this area we believe we are genuinely the best at what we do, which is making your strategy work effectively. Voted World #1 in the 2004 Meta. Spectrum Review of PPM Portfolio Management Overview 1/6/2022 2

Project Portfolio Management PMO / Enterprise Resource Management Real-time Executive Decision Support Alignment with Business Objectives Integrated Delivery Framework Corporate Strategy Programs and Initiatives Investment, Resource and Prioritization Decisions Integrated Portfolio of Managed Projects Consistent, Repeatable Project Delivery Project Management Projects Portfolio Management Overview 1/6/2022 3

Select & Deliver the Right Investments… Portfolio Management enables organizations identify and select the investments that will maximise Business Value Select the Right Projects 100% 50 % Value Lost Portfolio Management 66% 50% Value Realized 0% Project Management 75% Deliver the Projects Successfully Portfolio Management Overview Project Management ensures organizations to successfully deliver the investments and realise the Business Value 100% 1/6/2022 4

To Be Successful Organizations Require Both Disciplines PORTFOLIO MGT, Process Definition Governance Benefits Forecasting Prioritization / Valuation Portfolio Optimization Adv Portfolio Analytics Capacity Planning PROJECT MGT. Project Planning Cost Management Resource Management Time Reporting Change Management Issue Management Status Reporting Earned Value Analysis PPM answers the following questions: I selected the right Have investments? the investments align with the Do strategic objectives? Do I have sufficient resources to deliver the selected investments? Will the investments be delivered on time and within budget? Are my investments delivering the forecasted benefits? Portfolio Reporting Benefits Realization Portfolio Management Overview 1/6/2022 5

What is Project Portfolio Management (PPM)? “Alignment is the essence of management” Fred Smith, Chairman Federal Express 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. 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 Workflow With Roles & Responsibilities – provides clearly -makers to enable improved investment viability and accountability 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. ) Portfolio Management Overview 1/6/2022 6

Overview • Reasons for project failure are plentiful; emphasis on execution failure and / or lack of project management capabilities • Is this the only - or even the primary - dimension to reduce value of the project portfolio? • This presentation suggests that when selecting projects, it is essential to take a portfolio view, rather than a project by project view • It will discuss how effective selection techniques can be applied in practice Portfolio Management Overview 1/6/2022 7

Benefits of a Portfolio Management Approach: Confidence, Transparency and Flexibility Key Benefits Specific Examples Creates a common currency for comparing investments and making better-informed decisions Ensures decisions made according to supportable data, not politics or ‘noise’ Reduces senior management time spent on decision-making Reduces overall spend by eliminating low value investments Uses a benefits-led approach to delivering strategic projects Enables greater focus on highvalue initiatives Promotes organisational agility through modelling of ‘what-ifs’ and other detailed scenario analysis “. . we saved $5 to 10 mm (out of a budget of £ 50 mm) in the first year alone, on projects that would have gone through automatically before” – Paul Bateman, Director of Enterprise Governance, Axa Financial “UMT’s solution led our Senior Executive Team to increase the 2004 budget to allow additional projects to be funded, based on their proven strategic value” – Frank La. Rocca, CIO Keyspan Energy “Capable of solving exceptional business problems” – MIT Sloan Review, May 2004 Portfolio Management Overview 1/6/2022 8

Success Comes With Iteration & Increasing Sophistication Moving Up The Portfolio Maturity Curve Enterprise Value to Organization PPM Maturity Stages lue P Project Inventory Ad hoc No Portfolio Inventory or Process -“Just Do It/FIFO” -Success is random -Poor transparency Basic Crawl x. A to R Project Portfolio analysis is repeatable, predictable, and consistently used to evaluate and optimize project portfolio selection i fol rt Po a o. V a =V al nti e t o ity bil e liz ea Processes are defined & documented, and most projects are aligned to Business Driver Portfolio Management teams are able to understand, analyze, & recommend optimal portfolio bundles and schedules to technology and business partners Cross Portfolio PPM is adopted and used consistently across multiple organizations and portfolios Portfolio Analysts can compare and leverage portfolio analysis information across multiple departments Consistent measures enable cross portfolio analysis, selection, planning and management that supports predictive modeling and internal / external benchmarking PPM is optimized across the enterprise with a focus on continuous risk mitigation and value creation Project portfolio performance and risk data is understood and can be compared at the individual, cross-LOB, and enterprise levels Senior leadership is able to leverage PPM analysis when allocating funds to various portfolios Ability to measure and benchmark entire portfolio lifecycle All projects are consistently captured in a project inventory Stages of Excellence World-Class Walk Portfolio Management Overview Run 1/6/2022 9

Portfolio Mgmt: Synergies Between APM & PPM The Task of Continuously Renewing the Company Assets Capabilities is the Greatest Challenge Facing any CEO and CIO Business Strategy Current Investments Application Analysis & Renewal Strategy IT Strategy New Project Requests Application Portfolio Management Application Operations & Maintenance New Investments Portfolio Valuation & Selection Project Portfolio Management New / Enhanced Applications Portfolio Management Overview Portfolio Execution 1/6/2022 10

Portfolio Prioritization & Optimization Ensure the selected project portfolio aligns with the organization’s strategic priorities Create Select Plan Manage The next slides provide an overview of the Business Alignment Framework embedded in the Portfolio Optimizer Portfolio Management Overview 1/6/2022 11

Business Alignment Framework: Business Driver Definition ‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’ Define 1 Prioritize Optimize Select 2 Define Business Drivers & Impact Statements Prioritize Business Drivers 4 3 New Project Requests • Assess the Portfolio Prioritize Requests • Strategic Value Carry-Over Requests Optimize Project Requests 5 Select Portfolio • Constraint Analysis • Advanced Analysis • Financial Value • Risk Portfolio Management Overview 1/6/2022 12

Portfolio Builder Create: 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 Portfolio Management Overview 1/6/2022 13

Business Alignment Framework: Business Driver Definition (Theory) Business Drivers are a series of short, sharp statements that express the shared focus of the organization in actionable terms Strategic Goal 1 Strategic Goal 2 Business Driver 1 Business Driver 3 Business Driver 2 Business Driver 4 Business Driver Criteria: § They Address a Strategic Goal § They Are Actionable § They Are Measurable § They Are Attainable § They Are Unique § They Are Clear to Decision Makers Portfolio Management Overview 1/6/2022 14

Business Alignment Framework: Business Driver Definition (Example) Strategic Goal: Dedicate our resources to those market areas where we can maintain our existing client base and increase share of market of current clients Business Driver Name: Retain existing clients Grow Customer Share of Wallet Business Driver Definition: Maintain clients and remain competitive in existing markets Sell additional products to existing clients KPI’s: • Client Satisfaction Rates • Client Retention Rates • Variance in % Market Share • % Increase of Market Share • Increase in Revenue Portfolio Management Overview 1/6/2022 15

Business Alignment Framework: Impact Statement Definition (Theory) Impact Statements are derived from KPI’s and used to quantify the impact of each project request against each of the Business Drivers Business Driver 1 Business Driver 2 Extreme Strong Project Moderate Strong Moderate Low No Impact The Impact Statements should clearly communicate the metrics that define the level of impact a project request may have on Business Drivers. The Role of Impact Measures: • Impact Statements are defined by the Executive team • Impact Statements provide a quantifiable link between the measurable Business Drivers and the project requests. Note: Existing KPI's / Balanced Scorecard/ Other metrics may be used Impact Statements ensure that each project requests impact on the Business Drivers are evaluated consistently using the same metrics. Portfolio Management Overview 1/6/2022 16

Business Alignment Framework: Impact Statement Definition (Example) Driver Name: Grow Customer Share of Wallet Definition: Sell additional products to existing clients Associated KPI’s Thresholds Extreme • % Increase of Market Share Strong • Increase in Revenue Moderate Low Impact Statements Increases Revenue per client by more than 15% and increases Market Share by 5% Increases Revenue per client by between 8% -14. 99% and increases Market Share by 2% - 4. 99% Increases Revenue per client by between 3% - 7. 99% and increases Market Share by up to 1. 99% Increases Revenue per client up to 2. 99% and increases Market Share up to 1. 99% Portfolio Management Overview 1/6/2022 17

Business Alignment Framework Prioritization & Optimization ‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’ Define 1 Prioritize Optimize Select 2 Define Business Drivers & Impact Statements Prioritize Business Drivers 4 3 New Project Requests • Assess the Portfolio Prioritize Requests • Strategic Value Carry-Over Requests Optimize Project Requests 5 Select Portfolio • Constraint Analysis • Advanced Analysis • Financial Value • Risk Portfolio Management Overview 1/6/2022 18

Business Alignment Framework: Business Driver Prioritization The Pairwise Comparison is a proven technique for deriving relative priorities or weights for Business Drivers through performing one-to-one comparisons. Compares the relative importance of Driver B vs. Driver C (row to column) Indicates relative importance of Driver A vs. Driver B (row vs. column) Steps to Success: Assess Divergence of Opinion: Each Stakeholder involved in the Business Driver Definition should prioritize the drivers independently The same stakeholders who defined the Business Drivers Build Consensus: Invite all stakeholders to a Prioritization Workshop and collaboratively complete the should prioritize them. This Pairwise Comparison Matrix. Encourage the group to openly discuss the importance of each Business ensures consistent Driver pairing for the upcoming planning period. understanding and better buy -in to the priority assessment conclusions. Portfolio Management Overview 1/6/2022 19

Business Alignment Framework Prioritization & Optimization ‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’ Define 1 Prioritize Optimize Select 2 Define Business Drivers & Impact Statements Prioritize Business Drivers 4 3 New Project Requests • Assess the Portfolio Prioritize Requests • Strategic Value Carry-Over Requests Optimize Project Requests 5 Select Portfolio • Constraint Analysis • Advanced Analysis • Financial Value • Risk Portfolio Management Overview 1/6/2022 20

Select: Portfolio Prioritization Use proven techniques to define and prioritize business drivers Assess the impact of each project request against the prioritized business drivers Business Drivers 3 Projects 4 Prioritize Business Drivers Strategic Impact Assessment erive a priority score to evaluate each project request (i. e. Strategic Value, Financial Value, Risk) Analyze the project portfolio before attempting to make funding decisions 6 L - Priority - H 5 Investment Maps Prioritize Projects Cost Portfolio Management Overview 1/6/2022 21

Business Alignment Framework Prioritization & Optimization ‘The Business Alignment Framework ensures a Rational rather than Emotional approach to project selection’ Define 1 Prioritize Optimize Select 2 Define Business Drivers & Impact Statements Prioritize Business Drivers 4 3 New Project Requests • Assess the Portfolio Prioritize Requests • Strategic Value Carry-Over Requests Optimize Project Requests 5 Select Portfolio • Constraint Analysis • Advanced Analysis • Financial Value • Risk Portfolio Management Overview 1/6/2022 22

Select: Portfolio Optimization & Analytics Benchmark the selected portfolio against the Efficient Frontier Utilize sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (i. e. cost, resource etc. ) 8 7 Efficient Frontier Modeling Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities 9 ‘What If’ Analysis Business Alignment Analysis Portfolio Management Overview 1/6/2022 23

Portfolio Planner & Dashboard Plan & Manage: Schedule and Track the Portfolio Identify resource surpluses and deficits across the planning horizon and maximize resource utilization by proactively scheduling the project portfolio to best fit the available resources. 10 11 Portfolio Scheduling Resource Surplus & Deficits Create real-time project and portfolio performance scorecards to ensure Executives and PMO’s gain visibility, insight and control across project portfolios within the organization. 12 Portfolio Dashboard Portfolio Management Overview 1/6/2022 24

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The UMT Portfolio Management architecture Modular, proven, leading-edge software Select Define projects to deliver strategy Prioritize & optimize portfolio on rational grounds using common currency Define Drivers Prioritize Drivers Develop Project Inventory Tools: Portfolio Builder. TM Prioritize Projects Define Impact Statements Optimize Portfolio Plan Manage ‘Roadmap’ start & end dates according to resource availability World-class PMO, track benefits, report progress, mitigate risk Define Competencies Competency Availability Project Requirements Analyze Supply vs. Demand Optimize Project Schedules Portfolio Optimizer. TM Gates Reporting Initiation Issues Design Construct Test Implement Portfolio Planner. TM Status Reporting Process: Create Select Portfolio Phase: Risks CR’s Resource Milestone Portfolio Dashboard. TM • SQL or Oracle Db Central Repository. TM Enterprise Integration: Financial (GL) Portfolio Management Overview • IIS Web Server • Thin Client Time Reporting 1/6/2022 34

MS Project Server Integration Synchronising Project Update with Portfolio Analysis UMT Portfolio Manager Microsoft Project Server Note: Workflow is configurable and customizable per client specification. UMT Portfolio Manager™ and MS Project Server integration points: § Project ideas are entered analyzed before being selected in the UMT Portfolio Manager and exported to MS Project Server to enable detailed project planning (e. g. , task level). § Detailed project plans can be synchronized with the projects in UMT Portfolio Manager in terms of schedule data (i. e. at the phase and milestone level only) and resource data (i. e. by competency or skill type) § Resource availability data can be uploaded to the UMT Portfolio Manager from the MS Project Server, and used for scheduling analysis § UMT’s Microsoft Gateway can be used on a periodic basis to synchronize Baseline, Actual & Forecast data with UMT Portfolio Manager for portfolio reporting and portfolio re-prioritization and optimization. Portfolio Management Overview 1/6/2022 35

Seamless Integration with Microsoft's EPM Solution UMT Project Portfolio Server integrates with the EPM Solution to allow organizations to quickly deploy ‘Top Down’ portfolio analytical techniques on top of the leading enterprise project management platform. Executives Portfolio Analysts Project Managers Application Managers Project Managers PMOs Resource Managers Team Members Line of Busines s Systems Portfolio Management Overview 1/6/2022 36