umt360webinar_project and portfolio financial controls for microsoft project server webinar...
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Complete Perspective. Smart Decisions.
www.UMT360.com
@UMT360
LinkedIn.com/company/umt360/
Project & Portfolio Financial Controls for Microsoft Project Server
Ben Chamberlain
UMT360 Chief Product & Marketing Officer
ben.chamberlain@umt360.com
#financialintel
2010
Partner of the
YearIn Program and
Portfolio Management
2012
Visionary
In the Magic Quadrant
for Integrated IT Portfolio Analysis
2012
Cool Vendor
In Program andPortfolio
Management
2013
Visionary
In the Magic Quadrant
for Integrated IT Portfolio Analysis
2013
Partner of the Year
In Project and Portfolio
Management
Leaders in Enterprise Portfolio ManagementDigitalizing investment planning and controls across portfolios
to drive smarter business decisions.
What is Portfolio Management?A question I have struggled with over the years!
Aggregate reporting across one or more portfolios?Alignment of spend with strategic priorities?
Portfolio Management is…Integration of all Portfolios to drive better business
decisions and value… Better business decisions require Financial due diligence.
Is It…
Agenda & Key Takeaways
• What’s Wrong with Traditional PPM?• Trifecta of Business Value Erosion• Steps to Effectively Integrate Financial
Mgmt. and PPM• UMT360 In Action (Demonstration)• Expected Payback!• Questions & Answers
Takeaways:1. Traditional PPM is failing to deliver the
anticipated results!
2. PMOs must view projects as business investments and take responsibility for optimizing spend and maximizing portfolio value.
3. Built on SharePoint and with seamless integration with Project Server, UMT360 helps companies realize more value from their Microsoft platform investment.
[ poll 1 ]
What PPM solution are you using?
#financialintel
The Statistics Are AlarmingTraditional PPM is Failing to Deliver Anticipated Results
33%of projects fail to get completed or implemented
of completed projects experience cost overruns
54%46%Unrealized Business
ValueRealized
Business Value
43%of all projects are delivered late or over budget
Standish Group
Standish Group PMI
33%of projects do not meet their goals or business intent
Gartner
18%
The Statistics Are AlarmingThe Trifecta of Business Value Erosion
54%46%Unrealized Business
ValueRealized
Business Value
Gartner
Innovation & Estimating
Project Success Rates
Budget Utilization
1.
2.
3.
[ poll 2 ]
How much of the project budget did your organization utilize last year?
#financialintel
Tactical Focus
• Schedule
• Resource
• Issues & Risks
• Templates
• Etc..
Strategic Focus
• Business Value
• Financials
• Benefits
An Important Mindset Change for PMOsToo Focused on Tactical Aspects of Project Delivery
Tactical Focus• Schedule• Resource• Issues & Risks• Templates• Etc..
Strategic Focus• Business Value• Financials• Benefits
An Important Mindset Change for PMOsMust Start to View Projects as Business Investments
Inadequate Software ToolsFailure to Integrate Financial Mgmt. & PPM
• Disconnected, error prone and cumbersome
• Difficult to standardize & govern project budgeting & tracking
ERP
PPM
• Provides the ‘chart of accounts’ view needed by the finance team
• Fails to deliver the complete financial transparency needed by PPM teams
• Provides strong project & resource management capabilities
• Lacks the sophistication needed to effectively control project and portfolio financials
X
[ poll 3 ]
Which software tools do you currently use to manage Project Financials?
#financialintel
Establish Investment Controls across the
PPM Lifecycle
Phase 1 Phase 2 Phase 3 Phase 4
Incr
ease
Fin
anci
al M
atur
ity L
evel
(1 to
5)
Level 5 -
Level 4 -
Level 3 -
Level 2 –
Level 1 -
Steps to Drive Financial TransparencyA Phased Approach to Integrate Financial Mgmt. & PPM
Phase 1: Financial TransparencyEstablish Investment Controls Across the PPM Lifecycle
High Level Business Case
Detailed Planning Execution MeasurePortfolio
SelectionFinal
Approval
Close-out
Create Select Plan Manage Evaluate
• Project Details• Costs by Quarter• Benefits by Year• Strategic Impact• Risk• Resources
• Phase 1 Snapshot (Business Case)
• Phase 2 Snapshot (Business Case)
Recurring Status
Reporting & Variance
• Project Details• Costs by Month• Benefits by
Quarter• Strategic Impact• Risk• Resources• Schedule
Establish Approval Authorities
Establish Investment Controls across the
PPM Lifecycle
Integrate with LoB Systems &
Automate Reports
Agile Reallocation of Funds to Maximize ROI
Phase 1 Phase 2 Phase 3 Phase 4
Incr
ease
Fin
anci
al M
atur
ity L
evel
(1 to
5)
Level 5 -
Level 4 -
Level 3 -
Level 2 –
Level 1 -
Steps to Drive Financial TransparencyA Phased Approach to Integrate Financial Mgmt. & PPM
Open Monthly Status Report
Project Level Monthly Status Report
Project Manager Completes Status Report
Raise Change Requests for Redirects & Releases
Portfolio Level – Monthly Dynamic Reallocation Process
Redirects ReleasesNew Requests
Approved
Portfolio & Project Budgets Updated Release New Redirect
Quarter 2 $188,096,540 ($17,813,000) $8,278,491 $7,853,662 ($1,680,847)
Quarter 3 $186,415,693 ($8,655,000) $3,104,000 $2,804,000 ($4,427,847)
Quarter 4 $183,668,693 ($9,099,260) $6,167,318 $4,359,839 ($2,999,950)
($35,567,260) $17,549,809 $15,017,501 -19% 9% 8%
(Surplus) / Deficit
Total Sweep for the year
Quarter Start Budget
2012 Common Portfolio
Sweep Process
Phase 3: Agile Reallocation Reallocate Funds to Maximize Portfolio Value
Establish Investment Controls across the
PPM Lifecycle
Integrate with LoB Systems &
Automate Reports
Agile Reallocation of Funds to Maximize ROI
Establish Benefits Realization Framework
Phase 1 Phase 2 Phase 3 Phase 4
Incr
ease
Fin
anci
al M
atur
ity L
evel
(1 to
5)
Level 5 -
Level 4 -
Level 3 -
Level 2 –
Level 1 -
Steps to Drive Financial TransparencyA Phased Approach to Integrate Financial Mgmt. & PPM
Investment Governance & Controls
Business Case
Analysis
Allocation & Funding
Cost Tracking& Variance Analysis
Change Request Mgmt.
ERP Connector / Integration
Program Mgmt.
Chargeback Reporting
Benefits Realization
PerformanceMetrics
Cross Portfolio
Mappings
UMT360 - Project Financial IntelligenceIntegrated Project & Portfolio Financial Controls
Agile Reallocation
of Funds
Demo
90 Day Fast Start A Phased Approach for Project Financial Intelligence
16%Avg. more ROI from your strategic portfolios
Ok, but what’s the Payback?Based on $200m Project Portfolio
2. Cost Savings / Efficiencies (Across PMO, Finance Team & Business Units)
• 10% more Benefits = $9,500,000• 5% more Benefits = $4,250,000• 1% more Benefits = $ 950,000
1. Project Portfolio Size & ROI • Size of Project Portfolio = $200,000,000• Estimated Benefits
• Revenue Growth = $350,000,000• Cost Savings = $125,000,000• Total Benefit Estimates = $475,000,000• Benefits at Risk (46%) = $218,000,000• Minimum Benefits at Risk (20%) = $95,000,000
3. More Benefits from Portfolio per year
ROI• Streamline Capital Planning (2 FTE) = $275,000• Automate Status Reporting (2 FTE) = $275,000• Reduce time creating Mgmt. Reports (1 FTE) = $135,000• Total Savings = $685,000
Between $1.7m and $10m per annum
Action PlanWhat Should I Do Next?• Next 7 Days – Assess how your
company is currently managing project financials
• Next 30 Days – Schedule an envisioning workshop with UMT360 experts
• Next 90 Days– Kick off a Proof of Concept to gain complete Financial Transparency across your project portfolio
Complete Perspective. Smart Decisions.
www.UMT360.com
@UMT360
LinkedIn.com/company/umt360/
Thank YouVisit www.UMT360.com to learn more.
Ben Chamberlain
UMT360 Chief Product & Marketing Officer
ben.chamberlain@umt360.com
#financialintel
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