Project Portfolio Management as a Project Portfolio Management as a Form of Collaborative Value Form of Collaborative Value Management Management

Apply RulesApply RulesIT Budget AllocationIT Budget Allocation

Collaborative Collaborative Decision Decision MakingMaking

Manage Cost, Manage Cost, Risk and Time.Risk and Time.

Manage Manage Benefits/ValueBenefits/Value

Enterprise Project ManagementEnterprise Project Management

Projects Portfolio ManagementProjects Portfolio Management

By Giuseppe Mascarella

Collaborative Challenges in IT Collaborative Challenges in IT Portfolio Decision MakingPortfolio Decision Making

IT Groups &

SuppliersC I O

B O A R D

Business Unit Managers

USERS

Rules/Rules/ProcessProcess

Organizational Organizational Decision MechanismDecision MechanismRights/DutiesRights/Duties

Projects Managers Need Projects Managers Need Governance!Governance!

Five Major IT Decisions Need Five Major IT Decisions Need To Be MadeTo Be Made

High level statements about how IT is used in the business

Strategies for the base foundation for IT capability (both technical and human), shared throughout the firm as reliable services, and centrally coordinated (e.g., network, help desk, shared data)

An integrated set of technical choices to guide the organization in satisfying business needs. The architecture is a set of policies and rules that govern the use of IT and plot a migration path to the way business will be done (includes data, technology, and applications)

Decisions about how much and where to invest in IT including project approvals and justification techniques

Specifying the business need for purchased or internally developed IT applications

Center for Information Systems Research

IT investment and IT investment and prioritizationprioritization

BusinessBusiness

application needsapplication needs

IT architectureIT architecture

IT infrastructure IT infrastructure strategiesstrategies

IT principlesIT principles

ROB (Rithm Of Business) for ODMROB (Rithm Of Business) for ODM

Week1 Week2 Week3Week4

Production Month

W1Week4Process / Tasks

BizOpportunity

Management

ORB CommeeteMeeting

PortfolioReview

Resource Mngt

Time /Budget Controlg

DeploymentTeamo

Q&A

VRF

Financial Month

PRB

3. Service LevelObjectives

4. MeasureMonitor

6. Negotiate& Communicate Benefit Realization Plan

5. OptimizePortfolio

1. DefineValue

2. Define Rules & ODE of Portfolio

INFRASTRUCTUREINFRASTRUCTURE

MIT

Process and Capabilities:Process and Capabilities: 6 Step6 Step WorkflowWorkflow to Maximize Projects Valueto Maximize Projects Value

Step 1 : Define ValueStep 1 : Define Value

5 Pillars/Parameters

Value Assessment

0

20

40

601

2

3

4

5

6

PilarsPilars

1. Strategic Alignment 1. Strategic Alignment

2. Impact on Processes 2. Impact on Processes

3. Infrastructure Agility3. Infrastructure Agility 4. Cost/Benefit (ROI)4. Cost/Benefit (ROI)

5. Risk5. Risk

Steps 2Steps 2

3. Service LevelObjectives

4. MeasureMonitor

6. Negotiate& Communicate Benefit Realization Plan

5. OptimizePortfolio

1. DefineValue

2. Define Rules & ODE

of Portfolio

INFRASTRUCTUREINFRASTRUCTURE

MIT

Step Step 2. Define Rules & ODE 2. Define Rules & ODE

of Projects Portfolioof Projects Portfolio

Project 1PilarPilar ODEODE WeightWeight

Strategic AlignmentStrategic Alignment Balance Balance Scorecard BoardScorecard Board

35%35%

Impact on ProcessesImpact on Processes Biz Analysts Biz Analysts CouncilCouncil

15%15%

Infrastructure AgilityInfrastructure Agility IT Architect IT Architect CoucilCoucil

15%15%

Cost/Benefit (ROI)Cost/Benefit (ROI) EVA EVA Benchmarking Benchmarking TeamTeam

25%25%

RiskRisk SOX SME, Risk SOX SME, Risk CommitteeCommittee

10%10%

Step 5Step 53. Negotiate Service Level Objectives

4. MeasureMonitor

6. Negotiate& Communicate Benefit Realization Plan

5. OptimizePortfolio

1. DefineValue

2. Define Rules and Decision Mechanism for Portfolio

INFRASTRUCTUREINFRASTRUCTURE

MIT

Deep Personalized InsightDeep Personalized Insight Immediate access to analysis and unstructured data Immediate access to analysis and unstructured data Drill down through KPIs for deeper insightDrill down through KPIs for deeper insight

Empowerment and ProductivityEmpowerment and ProductivityScorecard authoring and editing toolScorecard authoring and editing toolReduce reliance on IT for changes Reduce reliance on IT for changes and customization and customization

Action-Driven and CollaborativeAction-Driven and CollaborativeWork as a team to analyze issuesWork as a team to analyze issuesAdd annotations and alerts to scorecards Add annotations and alerts to scorecards Tight integration with Microsoft Tight integration with Microsoft collaboration platform collaboration platform

Integrated and Extensible Integrated and Extensible Add custom data to dashboardsAdd custom data to dashboardsIntegrate into LOB applications Integrate into LOB applications Extend through SharePoint Web Parts Extend through SharePoint Web Parts

ScorecardScorecard

Charting and Charting and AnalysisAnalysisReportsReports

Technologies:Technologies:Integration with Business Scorecard ManagerIntegration with Business Scorecard ManagerAction-driven and collaborative applicationAction-driven and collaborative application

4. RAI Television Case Study4. RAI Television Case Study

CIO Challenges:CIO Challenges:

Move IT from Cost Center to Value Move IT from Cost Center to Value Building CenterBuilding Center

Do More Project with LessDo More Project with Less

Television