Value of PPM

Nishanth Satheesan| MicrosoftCloud Productivity SolutionsProject and Portfolio Managementnisath@microsoft.com

PPM in an Organization Context

Organizational Transformation

Strategy

Business Products and Services

Systems and Applications

Technology and Infrastructure

Updated Strategic Initiatives

Improved Business Products and

Services

Integrated Systems and Applications

Optimized Technology and Infrastructure

Organization Transition Plan &

Initiatives

Capabilities Transformation

Capabilities of the

Current Enterprise

Capabilities of the Future

Enterprise

New Strategic Initiatives

(Leadership)

Emerging Technologies(Operations)

New Business Priorities

(Management)

Transition Plan &

Initiatives

Organizational Resource Alignment

Enterprise Strategic Initiatives

LOB Initiatives LOB Initiatives LOB Initiatives

LOB Programs LOB Programs LOB Programs

LOB

Pro

ject

1

LOB

Pro

ject

2

LOB

Pro

ject

3

LOB

Pro

ject

1

LOB

Pro

ject

2

LOB

Pro

ject

3

LOB

Pro

ject

1

LOB

Pro

ject

2

LOB

Pro

ject

3

So now what is PPM?

What is PPM?

Doing the Right Things• What are the right things?

• Are we doing things that we are not doing?

• Are there things that we should be doing that we’re not?

• How can we improve decision making?

Doing the Things Right• What is the right way to do something?

• How do I make sure we do the things right?

• How can we improve what we do?

Schedule Capacity vs.Demand

ResourceRequirements

Value of Project and Portfolio ManagementImpact of Improving Portfolio vs Project Mgmt

Realized benefits of PPM

• Risk• Quality

• Control• Productivit

y

• Value• Alignment

• Visibility• Innovation

Create Select

PlanManage

Initiatives Portfolio Lifecycle

Create: Demand management Select: Prioritize, optimize, and select portfolio

Custom Fields

Cost

Business Drivers

Schedule Capacity vs.Demand

ResourceRequirements

Input Demand

Cost Constraint Analysis

Final SelectedProject Portfolio

Resource Constraint Analysis

Portfolio Prioritization

Project DependenciesModeling complex project relationships

Dependency Project B is dependent

on Project A

If Project A is selected, Project B is selected

If Project A is rejected, Project B is rejected

Finish to Start Scheduling relationship

where Project B cannot start until Project A is completed

Drives capacity planning

Mutually Exclusive Only 1 project is selected

Represents a set of alternatives

Example: Three different software suites to address the same needs, where only one gets selected

Mutually Inclusive Project A, B, and C

are interdependent

Either all get selected or all get rejected

Projects that are part of the program and are pre-requisites of one another

Project B

Project A

Project B

Project A

Project C

Project A

Project BProject C

Project B

Project A

Portfolio Selection MethodologyC

OM

MIT

SC

EN

AR

IO T

O

WO

RK

FLO

W

REVIEW BASELIN

E SCENARI

O

COST CONSTRAINT ANALYSIS

MODIFY COSTS

APPLY COST

CONSTRAINT

EFFICIENT

FRONTIER

CHART AND

VISUAL ANALYSI

S

COMPARE

SCENARIOS

DEFINE STRATEGY AND SETUP ANALYSIS

DEFINE ANALYSI

S PARAMET

ERS

SELECT PROJECT

S FOR EVALUATI

ON

PROJECT IMPACT

ASSESSMENT REVIEW

PROJECT PRIORITI

ESPRIORITIZE USING CRITERIA FIELDS

DEFINE BUSINES

S DRIVERS

PRIORITIZE

BUSINESS

DRIVERS

DRIVE CONSEN

SUS

CAPACITY VS.

DEMAND ANALYSI

S

RESOURCE CONSTRAINT ANALYSIS

RESCHEDULE

PROJECT

CHANGE FORCE IN/OUT

MODEL HIRING RESOUR

CES

COMPARE

SCENARIOS

CHANGE FORCE IN/OUT

Initiatives Portfolio Lifecycle

Plan: Schedule, Resource & Risk Manage: Control, Orchestrate & Report

Project Schedule & Resource

Plan

Project Progress Updates

Reporting, Intervention & Control

Collaboration & Change

Management

Risk Planning & Mitigation

Who benefits from PPM?Who are the stakeholders?

Key Components of a PPM System

Core Project Management

Project Cost Control

Risk Management

ProjectDashboard/ Reporting

Project Document Management

ERP/Asset Management/ALM/etc

Reporting Data

View, Review Project Documents

Upload Documents

Actuals

Schedule & Cost Updates

Schedule & Cost

Post-Risk MitigatedSchedule

Cost/HR/Material Synchronization

Asset/Work PackageSynchronization

CorrectiveActions (offline)

Team MemberUpdates and

Work Management

Task/Work Assignment

ProgressUpdates

Capital Planning/Portfolio Management

Selected Projects Project Performance

Collab

ora

tion

an

d W

ork

flow

Man

ag

em

en

t

Integration Layer

Project Planning Resource Management Scheduling Last Mile Progress

Updates Central Database

Progress Updates Time Sheets Issues Document

Creation/Reviews

Demand Management Cash Flow Prioritization Portfolio Optimization Project/Program Dashboard

Integrated Business Dashboard

Document Control Revision Control Document Collaboration Record Management

Financial Integration Project Cost

Processes Project Actual Cost

End-to-end Project Process Social Collaboration Change Management Issues Management Document Reviews Etc..

Risk Register Risk Matrix Risk Simulation Post-Risk Mitigated

Schedules

Realized benefits of PPM

• Risk• Quality

• Control• Productivit

y

• Value• Alignment

• Visibility• Innovation

Create Select

PlanManage

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