1. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom11 Tips and Techniques Upgrade vs. Migrate: Lessons Learned Using “Management Risk & Compliance” to justify CA Clarity PPM Jeffrey Bloom, PLC Secretary Senior Clarity Solutions Architect jeff.bloom@xinify.com www.clarityexpertiseondemand.com

2. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom2 Upgrade vs. Migrate: Lessons Learned  High Risk standard NIKU 6 to Clarity 8.1.1 upgrade path 6.1.5 -> 7.5 -> 7.5.1 -> 7.5.2 -> 7.5.3 -> 8.1 -> FP02 High probability of failure due to data corruption High probability of taking more than a nominal two-day weekend typically allocated for upgrade  Low risk “Migration” Alternative Configure “Out of the Box” Clarity 8.1.1 Before the “Migration Weekend”  Migrate all objects as “open” and process financially Migration Weekend  Migrate & financially process only “open” projects and new timesheets/transactions 2

3. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom3 NIKU 6 To Clarity 8.1.1 Migration Technical Details  Proven, low risk “Migration” Alternative Configure “out of the box” Clarity 8.1.1 Reconstruct items that cannot be XOGed out of NIKU 6  Groups, permissions, passwords, etc. In advance of migration – with no impact on operations  XOG Users, Resources, Projects, Timesheets, Transactions out of NIKU 6  Modify/Add attributes not XOGed out of NIKU 6  XOG into Clarity 8.1.1 as all “active” & “open”  Full financial processing to get Actuals and ETCs  Confirm correct data by comparing systems Migration Weekend – system unavailable to users  Refresh User & Resource attributes  Refresh “Open” projects, add new timesheets/transactions, process financially, confirm correct data by comparing systems  Adjust resource & project status attributes to reflect NIKU 6 status

4. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom4 Using “Management Risk & Compliance” to justify CA Clarity PPM  What is “Management’s” purpose? MAXIMIZE Shareholder and/or Stakeholder Value  How does Management do this? MINIMIZE Risk  How is Risk minimized? Identify & mitigate risks as soon as possible  How are Risks identified? Identify deviations from plan  How are Risks mitigated? Discover deviations early enough to correct the plan thereby mitigating the risk!  How can Clarity Help? Provide an enhanced PLANNING environment that tracks & reports activities, deliverables, forecasts, budgets, costs, benefits, Return on Investment & RISKS

5. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom5 The Case for enhanced PLANNING If we really thought our plans were “perfect” we could “fire” all the Managers & just follow the plan!

6. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom6 Activity Based Costing (Planning) “Activity Based Costing” Definition from Wikipedia, the free encyclopedia “The Activity Based Costing methodology assigns an organization's resource costs through activities to the products and services provided to its customers. “It is generally used as a tool for understanding product and customer cost and profitability. “As such, ABC has predominantly been used to support strategic decisions such as pricing, outsourcing and identification and measurement of process improvement initiatives.”

7. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom7 Without Activity Based Costing …  Annual Budget Allocations are made to departments Based mainly on prior period expenditures Adjusted manually to reflect “gross” estimates of changing resource demand and/or availability Rarely supported by detailed resource plans relating to results promised in the Business Case -> Resources are allocated to organizations not RESULTS!

8. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom8 How is “Activity-based” planning better?  Activity-based Plans: ACTIVITIES are specified as scheduled “Tasks” for Change Projects & Baseline Operations with  Start date & End date  Task Schedule interdependencies  Assigned Resources (Labor & non-labor) at specified Loading (% commitment to this task) Hourly Rate per resource & situation Availability (not assigned to other tasks at the same time) COSTS  Summarized by time period for all resources assigned  Charged to multiple funding business units (with Profit & Loss responsibility) BENEFITS are also summarized by  time period  recipient busines units  “Real-time” Return on Investment: “Service investments” schedule provides an auditable forecast of the size & the timing of Expenditures to deliver RESULTS/PRODUCTS BENEFITS received by the Business Units Building the Business Case from Day One!

9. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom9 How “Activity-based” can benefit Compliance  Resource Allocations are an OUTPUT of the activity-based planning process fed to Finance rather than an INPUT from Finance  The Finance Governance Process is enhanced Operating units must submit defensible Forecasts that comply with Compliance policies & procedures Forecasts must pass Finance compliance review before the activity can expend funds as specified in the approved BUDGET Budget Revisions are accomplished by the submission & approval of a revised Forecast & the revised Business Case Expenditures of resources have specific dates and rates as in the Business Case

10. 08 JAN 09Clarity PLC Winter WebConference Copyright 2009 Jeffrey A. Bloom10 How to achieve Enhanced Risk Management & Compliance through “Activity Base Planning”? “Out of the Box” Clarity  Proven Portfolio & Financial Management Over 950 clients world-wide  Activity Based Management to Minimize RISK MAXIMIZE VALUE: Track RESULT/PRODUCT delivery costs & benefits over the life of the change project or baseline operation as described in the approved Business Case (ROI) MINIMIZE RISK:  Early identification and management of risks by focusing on deviations from plan  Enforcement of Governance policies & procedures through automated workflows ENHANCE GOVERNANCE: Leverage Prince2 Accelerator, PMBOK, StageGate and/or other Compliance methodologies to  Comply with industry standard governance practices  Enforce strict approval policies & procedures as required by SOX, HIPPA, etc.  Real-time Business Case to Enhance Compliance Improved transparency, justification, auditability Leverage “Out of the Box” functionality  Continuous, real-time cost and benefit Business Case data exported to Finance systems  Business Unit’s optimization of budgets generates the Cost Plans - including ROI  Orderly Governance process is ensured through active management of documents & approvals