enterprise portfolio vs. governance - acs sa branch...
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Enterprise Portfolio vs. Governance
1
Independent consulting firm specialising in Enterprise Portfolio Project Management
SEA-JTP (Software Engineering and Architecture Joint Technical Program)
ACS and Engineers Australia
28.4.2011
Sir Robert Chapman Theatre
L11, 108 King William Street
Agenda • Enterprise Portfolio Management – Drivers
– History
– Definition
– Challenges
– Impact
• Governance – Definition
– Challenges
• Convergence
– Means
– Impact
2
Enterprise Portfolio
Management
drivers
3
Organisational benefits
identify redundant
investments,
focus on critical, strategic
investments, and
avoid those that have
unacceptably high risk
or low returns
4
What stakeholders want?
Overcome key challenges
– Doing the right things,
at the right time
– With the right people
– Getting control
– Mitigating risk
And they expect…
– Accurate and enterprise-
wide visibility
– Locate and capitalise
on talent
– Real-time programme and
project management
– Full life-cycle, risk
analytics
5
Today’s reality…
6
Management policy,
processes, systems and their
respective consequent
linkages are fragmented...
• No accountability
• Slow reaction time
• Squandered resources
• Escalating costs
Risk Mitigation Strategy
Strategic Goals
Programs and Projects
Financial Reporting
Monitoring Performance
Talent Search
Planning & Execution
Distributed Information
Profitability
$ € £ ¥
Cost Controls
Enterprise Portfolio
Management
history
7
Discipline evolution
8
Individual Collective
Circa 1980 institute control methods and procedures to ensure projects met their objectives. Circa 1990 crafting the best financial investment today referred to as project portfolio management. Interaction via spread sheets and flat file transfer Circa 2005 software capable of linking data from many, integrated source business systems. Circa 2010 starts of integration beyond organisational boundaries into the value chain. Source systems securely share dynamic information.
single user projects
1xdatabase
many projects same
database
convergence with source
business data
convergence with value
chain
Market reality Business Value
Strategy
PROJECT CONTROLS
Planners
Project Managers
Project Controls
PROJECT MANAGEMENT (PM)
PROJECT PORTFOLIO MANAGEMENT (PPM) DIVISION/LOB Planners Project Managers Project Controls Resource Managers Program Managers
ENTERPRISE PORTFOLIO
PROJECT MANAGEMENT (EPPM)
ENTERPRISEWIDE
Planners
Project Managers
Project Controls
Resource Managers
Program Managers
Team Members
Executives
single user projects
1xdatabase
many projects same
database
convergence with source
business data
convergence with value
chain
Business reality
10
Enterprise Portfolio
Management
definition
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Intention
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Keeping lights on
Keeping our promises
Doing things better
Doing more things
Doing better things
Transform business
Run business
Inventory and select projects and business as usual activities based on what is:
Mandatory vs. non-discretionary
Discretionary vs. growth
Scope
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Organisational
process
Top Down
Decision
Specialist
Bottom Up
Tools & Techniques Methods
Approach
Style
Portfolio Spectrum
Finance Assets Products &
Services Transformation
Change ICT
Processes
Portfolio
Analysis
Programme & Project
Delivery
Define Financial Criteria
Manage costs
Select, prioritise, analyse Execute
Data
‘Draw string’ ...
… finds the data sources & combines...
- People = Org development, HR & payroll
- Processes • Accounting = budgets, commitments, actuals
• Authority = delegation of authority
• Procurement = purchase orders
• Planning = strategic, corporate, business unit
– Systems = ERP’s, specialist applications
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Enterprise Portfolio
Management
challenges
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Data integrity
• Problems
– Consistency
• budget; actual; cost business rules
– Ability • where are the skills?
• what is the availability?
– Clarity • multiple spreadsheets
looking for the right answer
– Ownership • who owns it & why?
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• Sensitivities
– Legacy
– Accountability
– Transparency
– Leadership
Confidentiality
• Problems
– Data exchange • Design drawings including
mark-ups
• Schedules
• Budgets
– Between • Prime and Client
• Prime and sub-contractors
and Client
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• Sensitivities – Contract
• Business rule
• System integration
– Security • T&C’s
• Monitoring
– Document control • Naming conventions
• Access rights
Synthesis
ERP
Services
Billing
Documents
Specialist
specialist
specialist
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Enterprise centric
Portfolio & Program,
project mgt
Sales & marketing
Engineering
Demand to delivery
ERP
Enterprise Portfolio
Mgt
Hard work point to point Competitive advantage Seamless synthesis
customer
JV project Alliance project
Supplier agreement
Reporting Value proposition
Contract mgt
Business improvemt
customer
JV project Alliance project
Supplier agreement
Reporting Value proposition
Contract mgt
Business improvemt
Enterprise Portfolio
Management
impact
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Structure
• Organisational
design – Strategy team
– Evaluation team
– Monitoring team
• Organisational
behaviour – Proactive vs. reactive
– Coaching vs. policing
– Enabling vs. restricting
• Roles – Process gatekeepers - new
– Internal auditors - reinventing
– External auditors - reinventing
• Form v Substance • Form doesn’t change much,
little visible difference as it
becomes less significant
• Substance changes,
becomes significantly different
as information becomes visible
& transparent
Integration
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Redesign / Reinvent Underpinning business
& organisational structures
Define & align operating methods
Connect plans, budgets & forecasts
with Strategy, Benefit,
Risk, Performance
Strategy
... Draws together:
– Strategy
– Capability
– Payback
Strategic
Planning
Demand
Management
Capacity
Planning
Financial
Planning
Road mapping
Requirement
Management
Resource
Management
Projects
Ongoing
Operations
Forecasts &
Actuals
Benefit
Strategic ROI
Total Cost of
Ownership
Total Cost of
Development
Cultural
Alignment
Analytics Performance Metrics Reporting
Governance
definition
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definition
• Governance is the act of governing – define expectations,
grant power, or verify performance
• Relates to – consistent management
– cohesive policies, guidance, processes
– decision-rights for a given area of responsibility
• IT Governance – assure the investment in
IT to generate business value
• Corporate governance – processes, customs,
policies, laws and institutions affecting the way people direct, administer or control a corporation
25
history
• 1960 Richard Eells – first documented use of the word
• "corporate governance"
– to denote • "the structure and functioning of the
corporate polity"
• 2002 ASX Corporate Governance Council
• 2003 1st edition Principles & Recommendations
• 2007 2nd edition Principles & Recommendations
26
Governance
challenges
27
environment
Chart of Accounts
LOB
Division
LOB
Country
LOB
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data
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Consistency
Ability
Clarity
Ownership
Data exchange
Security
Convergence
means
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reinvention
• Multi- dimensional vs. single focussed reporting – Budget; Profit; Expense;
Return
– Strategy; Risk; Benefit; Performance
• Domain shift – Finance, accounting
– Operations, customer
– Risk, environment
1. What are we funding?
2. What value is the investment returning to the business?
3. What other alternatives investments could generate higher value?
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structure
• Executive Secretariat – Multi-disciplinary team
– Strategy
– Risk
– Performance
– Growth
• Business designed – Vs. $’s or IT
• Roles – Process gatekeepers
– Internal auditors
– Portfolio analysts
• Skills – Data mining
– Information analysis
– Mathematics
– Psychology
– Cross functional
impact
receive cross functional
integrated …
– Accurate and enterprise-
wide visibility
– Locate and capitalise on
talent
– Real-time programme
and project management
– Full life-cycle, risk
analytics
33
Independent consulting firm specialising in
Enterprise Portfolio Project Management
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