MEASURING THE VALUE BEHIND YOUR PPM SYSTEM Build, Measure & Deliver © Mill Beck Consulting

Speakers Mark Woodward Director Mill Beck Consulting 2 Rebecca Leadbitter Sales Director Sciforma

Agenda  Introduction  The Business Case  Building the business case  Delivery considerations  Measuring the results  PPM Capability for end-users © Mill Beck Consulting

Sciforma  1980 : USA / PSN  1986 : Europe  2003 : PSNext  2013 : Sciforma 6.0  150 employees / 30M$  users worldwide  1000 customers  Publisher, consultancy, training, support © Mill Beck Consulting

Sciforma functional scope 5

Building the Business Case 6 © Mill Beck Consulting 2014

Business Case © Mill Beck Consulting  Explicit attention to benefits  Define  Achieve  Prove “A business case is a contract between the sponsors of an initiative and the organisation – give us these resources and we will deliver these benefits.”

Efficiency gains  Reduced time in capturing information  Timesheets  Status  Risks, issues, etc.  Less time reconciling conflicting documents  Ease of generating reports  Consistency across reporting © Mill Beck Consulting 2014

Operational Reasons  Drive a project culture change  Free up PM/PMO time for added value  Distributed locations  Large or growing portfolios © Mill Beck Consulting 2014

Strategic Support  Projects and programmes deliver strategic change  Absorb large amounts of capital and resource  Ability to view and analyse status and performance of initiatives is critical © Mill Beck Consulting 2014

Benefits 11 Must make sense to the decision makers and be measurable Will be looking for guaranteed delivery Strategic managers Will be looking for control and visibility Delivery managers Cost control Visibility, early warnings Finance and governance

Delivery Considerations 12 © Mill Beck Consulting 2014

It’s a Change Initiative  Are you targeting  Outputs?  Behaviours?  Values?  New policies?  Need for organisational structure changes? New job/role descriptions? Don’t forget to include time and effort for communication, training

Measure the benefits 14 © Mill Beck Consulting 2014

Get the measure of measures  Units  How is it measured?  Baselines  Targets and tolerances  When to start, when to stop 15 © Mill Beck Consulting 2014 Honeymoon Ramp-up Intermediate targets Transition

Possible Measures © Mill Beck Consulting EfficiencyOperationalStrategic Time reportingImmediacy of reportsImproved project delivery Data entryFrequency of projects in amber/red No. of benefits successfully realised Report generationRecovery time for troubled projects Value of benefits realised Projects going over budget/time

PPM Capability for end users 17 © Mill Beck Consulting 2014

18 Will be looking for guaranteed delivery Strategic managers Portfolio Manager  Live project health across the portfolio  Are projects aligned with company strategy?  Quick identification of pinch points  Ability to stop the wrong projects

Project health check 19

Where are the pinch points? 20

21 Will be looking for control and visibility Delivery managers PMO  Ease of generating portfolio reports.  Ease of project assurance activities.  Consistent project processes.

Portfolio shift 22

23 Will be looking for control and visibility Delivery managers PMO Time / Financial impacts Project initialisation Time impact : 1 person x 4 hours × 100 projects = 400 hours Align the 2 systems Time impact : 2 people x 2 hours × 16 weeks x 100 projects = 6400 hours Financial impact : £350 daily rate x 400 hrs hrs/7.5 hrs per day = £

24 Will be looking for control and visibility Delivery managers  Ability to provide timely status reports  Is project on target (time, cost, effort)?  Real time project progress  Real time consolidated budget reports Project Manager

Real time project financials 25

26 Will be looking for control and visibility Delivery managers Project Manager Preparing the status report Time impact : 1 person x 2 hours x 16 weeks × 100 projects = 3200 hours Financial impact : £350 daily rate x 3200 hrs/7.5 hrs per day = £149,333 Time Entry Time impact : 300 people x 15 minutes × 48 weeks = 3600 hours Financial impact : £350 daily rate x 3600 hrs/7.5 hrs per day = £168,000 Time / Financial impacts

27 Will be looking for control and visibility Delivery managers  Control over supply & demand  Quickly identify teams under and over capacity allowing quick decision making Resource Manager

Identify under / over capacity 28

29 Will be looking for control and visibility Delivery managers Resource Manager Schedule Synchronisation Time impact : 2 people x 30 minutes × 16 weeks x 100 projects = 1600 hours Financial impact : £350 daily rate x 1600 hrs/7.5 hrs per day = £74,666 Time / Financial impacts

30 Cost control Visibility, early warnings Finance & governance Cost Control  Earned Value Management  Aggregation of all project costs  Workflow to enforce decision gates

Earned Value reporting 31

Enforce decision gates 32

Conclusion 33 © Mill Beck Consulting 2014

34 Mark Woodward Mill Beck Consulting Limited +44 (0) Any Questions? Rebecca Leadbitter Sciforma +44 (0)