Leveraging MS Project in an Integrated Portfolio Management Solution MSPUG- Phoenix Chapter

Agenda Pacific Edge Background Portfolio Management Overview Leveraging MS Project in PE Portfolio Management Customer Examples EPM Processes – Enterprise interdependencies Product Demonstration Visor Drawing

Corporate History Founded in 1998 Privately Held Company Headquartered in Bellevue, WA Numerous Industry Accolades Early Pioneer of Project Portfolio Management Software An Industry Leader of Enterprise Portfolio Management Software

Customers

Portfolio Management Vs Project Management Project Portfolio Management Are we doing the RIGHT projects Do we have the RIGHT resources Are we spending in the RIGHT areas Project Management Are we doing projects well? Are projects on time and budget? Do resources know what they are doing? StrategicTactical

Portfolio Management Definition PORTFOLIO MANAGEMENT is the continuous process of selecting, prioritizing and managing the optimum mix of corporate investment in products, R&D, projects, hardware/software, assets, operations, etc. to deliver maximum business value. In this decision making process, management can focus their limited resources on investments that are achievable and strategically aligned with business goals. The resulting portfolio delivers a balance of what is possible and what is needed.

Business Drivers for Portfolio Management  Agility in a Rapidly Changing Marketplace Monitor business performance React to sudden environmental shocks Multiple planning cycles Risk mitigation Decrease organizational reaction time “It is not the strongest of the species that survive, nor the most intelligent, but the ones most responsive to change.” – Charles Darwin

 Manage Complexity Reduce 75% failure rate for complex projects through better selection Improve visibility of investments across organizations Reduce costs by consolidating legacy and duplicate investments Business Drivers for Portfolio Management

 Optimize Resources Remove high cost, low performance, and off-strategy investments Re-allocate, re-balance, and re-sequence portfolio of investments for maximum effectiveness More than 40% pared back budgets at some point in – Morgan Stanley CIO Survey

Business Benefits of Portfolio Management  Reduce costs by identifying low value, non-strategic, redundant, or poorly performing assets and projects.  Increase return on enterprise portfolios through improved selection, prioritization, sequencing, and governance of corporate investments.  Optimize the use of critical resources by balancing risk and focusing on the most valuable investments.  Achieve competitive advantage by reducing the time required to realign the enterprise investment portfolio with rapidly changing business needs.

How are Enterprises doing Portfolio Management Today?  Spreadsheets  Presentations  s  Planning Meetings  Microsoft Project  Accounting Apps  Custom DB Apps  Lotus Notes/Groupware

MS Project in Pacific Edge Portfolio Management  Top down project planning to ascertain value and risk  Build the tactical plan that executes the project  Provide estimate dates, actual dates and assignments  As project progresses, updated information is provided back to Project Office Portfolio  Up to date information regarding execution is visible in Portfolio Edge

Project Office 4.0  Top down planning: create a project without defining all of the work items.  Centralized Document Management: Provides a central repository for managing project documents with check-in/out and versioning.  Project Team Collaboration: Capture lists of information related to a project, like risks, issues, changes, or requirements and enable project teams to collaborate on them.

Project Office 4.0  My Projects: Enables project managers and projects teams to access the project profile, documents, logs, links, and project summaries rolled up from Microsoft Project.  Centralized Document Management: Provides a central repository for managing project documents with check-in/out and versioning.  Project Team Collaboration: Capture lists of information related to a project, like risks, issues, changes, or requirements and enable project teams to collaborate on them.

Project Office 4.0 Connectors Together with the Project Office Connector, Project Office 4.0 links detailed project planning and portfolio management for a complete closed-loop solution.  XML-based Data Exchange: New Project Office Connector allows project managers to manage task plans with MS Project 98, 2000, and  Summary Level Publishing: Publish task summary information to Project Office while managing the details offline.  Assign Pool Resources: Assign resources to tasks and synchronize project resources with the Project Office resource pool.

- Pacific Edge Portfolio Edge provides instant, high-level visibility into the program and project information managed by the Pacific Edge’s Project Office Suite   100% web-based, zero- client architecture  User-maintained, personalized dashboard  Chart history  On-demand and scheduled publishing  Custom charts and indicators.  Multiple chart formats

Portfolio Management Results  $4 million savings within 18 months  Reduced IT resources by 20% while maintaining customer satisfaction  Eliminated or consolidated off-strategy or duplicate projects  $9 million savings within 18 months

Mercy Health Results  Situation  Project users, but many areas using spreadsheets, white boards etc  Lack of strategic focus  Poor project inventory methods  Constrained resources  Inconsistent reporting  Alignment  Projects are strategically aligned with organizational goals.  Enhanced project approval and prioritization process for management.  Improved resource allocation.  Increased customer satisfaction.  Value  $4 million savings after 18 months.  Reduced IT resources by 20%.

Schlumberger Results  Situation  MS Project Users  Poor strategic alignment  Millions wasted on duplicate investments  Alignment  Alignment of investments to strategy visible to management  Resource utilization and alignment through better time capture  Eliminated or consolidated off- strategy or duplicate activities  Value  $9 million savings after 18 months

Step 1 Value Steps to Business Value Step 4 Step 3 Step 2 Portfolio Balancing Investment lifecycle Cost/ROI Investment Risk and Value Resource capacity/demand Portfolio Clean-up Data Clean-up Redundant Programs/Investments Off Strategy Investments Low value/high risk investments Portfolio Alignment / Pipeline Management Proposals Scoring and Ranking Phase Gate / Approval Processing 45 Days 90 Days9-18 Months Portfolio Inventory Configuration Data Capture Visibility & Communication 2%-5% Return 25% Return

Enterprise Portfolio Management Process

Enterprise Portfolio Management May 2003