1. © 2007 EPK Group, LLC. All Rights Reserved

2. Fast Track ROI For Portfolio, Project, And Resource Management Rich Murphy Founding Partner EPK Group LLC

3. © 2007 EPK Group, LLC. All Rights Reserved Prioritizing Initiatives across the organization Do we have the right people working on the right things? Are we spending effort on projects that should be cancelled? Do we have the skills and capacity to achieve our long term goals? Do we have the right mix of “operational efforts vs. major projects”

4. © 2007 EPK Group, LLC. All Rights Reserved Foundation47% Utility21% Enhancement21% Frontier11% Bill Rosser – Gartner PPM Summit Keynote, June 2007 32% produces identifiable business value

5. © 2007 EPK Group, LLC. All Rights Reserved “Resource Allocation Effectiveness” is the key

6. © 2007 EPK Group, LLC. All Rights Reserved Which projects best support the corporate strategy? Where should the resources from a project nearing completion best be allocated? Which programs, projects, and infrastructure support efforts are currently behind schedule, over budget, and why? Do we have enough of the right people to successfully take on a key initiative? How is the resource plan impacted when a new project is added to the portfolio? …is a process …something we do, to answer questions like:

7. © 2007 EPK Group, LLC. All Rights Reserved Source: PMI draft Portfolio Management Standard Vision, Mission Strategic plan Portfolio Performance review Identification, categorization, evaluation, selection, prioritization, balance and authorization of Portfolio components Project / Program performance review Project / Program management process Delivering completed Project / Program to operations Project Program Requests Strategic Objectives Operations StrategicPlanning PortfolioManagement Project/ProgramManagement

8. © 2007 EPK Group, LLC. All Rights Reserved Governance People, Process & Technology Project Mgmt. Project Mgmt. Consistent, Repeatable Delivery Integrated Delivery Portfolio Mgmt. Investment & Prioritization Decisions Alignment with Objectives Program Mgmt. Program Mgmt. Program & Project Dependencies

9. © 2007 EPK Group, LLC. All Rights Reserved Project Management Challenges (what worries you most?):IssuesFY1FY2 Changing Organizational Priorities 43%50% Change Management 35%40% Risk Assessment and Management 37%36%* Alignment between project and organizational goals 20%21% Project Management Skill Level 34%33%* Scope Clarity 50%49%* Source: BIA and Giga Information Group * Showed slight improvement (just 1% year on year)

10. © 2007 EPK Group, LLC. All Rights Reserved There have been slight improvements in PM practices But, most still aren’t buying into the concept of organizational project management Result is that reactive behaviors stemming from habit and external pressures tend to preside over proactive ones. Personal and political preferences decide priorities more than alignment with business goals

11. © 2007 EPK Group, LLC. All Rights Reserved Selection Criteria & Categorization Projects “Killed” for risk and non- strategic alignment Portfolio Performance Oversight Business Needs Driven Project Scoring Financial Justification Authorization Board Stage 1Stage 2Stage 3Stage 4 Strategic Roadmap (Business/IT) Balanced Portfolio Clear and communicated ROI and business benefits Politically Driven Ad hoc Fire Fighting Budgeting Process

12. © 2007 EPK Group, LLC. All Rights Reserved Source: PMI draft Portfolio Management Standard

13. © 2007 EPK Group, LLC. All Rights Reserved

14. Lack of executive support – ineffective Governance Organizational Barriers – incentives lead business unit leaders to compete for resources rather than optimize Lack of clear objectives – strategy not articulated Lack of IT awareness – business not understanding technology impacts on business Reactionary mindset – fire fighting rather than planning

15. © 2007 EPK Group, LLC. All Rights Reserved It’s about much more than “project” management Its about more than a “tool”

16. © 2007 EPK Group, LLC. All Rights Reserved Portfolio management Identify all the efforts Establish a stage-gate control process Budgeting/cost management Resource planning, “capacity vs. demand” Project Management Timekeeping Approach the first 3 in that order. Timesheets can come anywhere in your implementation.

17. © 2007 EPK Group, LLC. All Rights Reserved Don’t assume you have a complete list because management has a list they use Categorize as: Major projects (approved) Operations/support New initiatives (not yet approved) Gather some common information about every effort: Planned start and finish Overall manpower budget (must be time-phased) What business goals does it support? Who’s in charge?

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19. What type of costs? Budget Project Forecast Actuals Cost categories Labor In-house Contract Hardware Overhead Contingency Fiscal reporting periods

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21. “Stage-gates” are NOT “phases” of a project They are the approval/review process steps that all major efforts should pass through Each “stage-gate” has business rules regarding the required data to move to the next stage. IT Governance Board should be directly involved in certain stage-gate reviews based on a published criteria.

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23. Start with resource planning at high level Institute a formal “negotiation” process Maintain “commitments” and detail project assignments separately

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26. Carefully consider reporting needs Exception based reporting Orient reports to management levels Extensive graphical views Limit number of reports any person receives

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31. Don’t go for the “big-bang” approach to implementation. Start with an inventory Introduce stage-gates for all efforts Everyone does NOT have to become a project manager Timesheet (if required) can be introduced at any point in the overall implementation Implementing a system requires review of your processes and change management Resource management is the key problem for most organizations

32. © 2007 EPK Group, LLC. All Rights Reserved

33. © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.