1. Program Management The Financial Sector Presented by Bob Walker 3 shaping the future of program management www.pcubed.com

2. 3 Program Planning Professionals Page 2 shaping the future of program management The Financial Sector Two Case Studies  Merger Between Two International Banks  Organisational Change and Project Management Project Management Supporting Change

3. 3 Program Planning Professionals Page 3 shaping the future of program management Project Management Processes Supporting Technology The Financial Sector Technology can be utilised without processes –Small operations –No/few links to other organisations or projects Long term planning at portfolio level requires processes Integration of projects in a consistent manner requires processes

4. 3 Program Planning Professionals Page 4 shaping the future of program management Project Management Processes Supporting Technology The Financial Sector Both case studies revolve around the processes required to meet specific tasks Technology is an integral part of the processes and Microsoft products feature within both solutions

5. 3 Program Planning Professionals Page 5 shaping the future of program management The Financial Sector Two Case Studies  Merger Between Two International Banks  Organisational Change and Project Management Project Management Supporting Change

6. 3 Program Planning Professionals Page 6 shaping the future of program management Introduction - The Merger The Project The acquisition of a major US Investment Bank by a European Bank The integration of two organizations in a four month period New Organization of 95,000 employees The Challenge Ensure that all the necessary steps to integration are taken Co-ordinate activities between companies, business lines and geographically Identify Risks Identify the key information required for decision making Initial work coincided with preparations for euro conversion

7. 3 Program Planning Professionals Page 7 Detailed Analysis and Mapping 450 Nov 98 Integration 1 May 99 Planning Approach Workstream Testing 200 Integration Testing 25

8. 3 Program Planning Professionals Page 8 shaping the future of program management Planning Approach Build a project plan, consisting primarily of a series of milestones per Business Stream - approximately 8000 milestones Update weekly via Email and Excel Amber Publish Red Amber Green (RAG) status weekly Issues Management Database, built in Access

9. 3 Program Planning Professionals Page 9 shaping the future of program management MS Access DataExport Pcubed Process Excel Four week look-aheadUpdatedRAGStatus Activities To be updated UpdateWorksheet(s) EMAIL Project Plans Scheduled weekly

10. 3 Program Planning Professionals Page 10 shaping the future of program management RAG Status Report

11. 3 Program Planning Professionals Page 11 shaping the future of program management RAG Status Progress

12. 3 Program Planning Professionals Page 12 shaping the future of program management Milestone Measurement

13. 3 Program Planning Professionals Page 13 shaping the future of program management Integration Weekend Two Dress rehearsals over weekends –24-Hour Coverage –Logistics Co-ordinate Activities World-wide Identification of Critical Activities and Risks Final Integration Weekend

14. 3 Program Planning Professionals Page 14 shaping the future of program management Real time Update of Plans - Start and Finish Times TaskOwnersTaskOwnersDatabase Project Plan Database Hourly Schedule IIS Web Publishing Hourly Publication Access Interface Population via Excel Integration Weekend - Planning Infrastructure

15. 3 Program Planning Professionals Page 15 shaping the future of program management Integration Weekend - Command and Control Structure Global Command and Control New York Hub London Hub Business Lines

16. 3 Program Planning Professionals Page 16 shaping the future of program management Summary - The Merger The Challenge Two diverse Organisations and cultures Identify what work needed to be completed, when, how and who by Provide a technical solution to allow information to be entered from anywhere in the Banks, worldwide, for central decision making The Solution Red, Amber Green milestone tracking and reporting on a weekly cycle Planning support where required to identify resource shortages and risk Final technical solution based upon the standard bank software tools

17. 3 Program Planning Professionals Page 17 shaping the future of program management The Financial Sector Project Management Supporting Change Two Case Studies  Merger Between Two International Banks  Organisational Change and Project Management

18. 3 Program Planning Professionals Page 18 shaping the future of program management Introduction - Program Management The Client IT and Operations for a major world-wide Bank Recently subject of a merger of two Banks 8400 resources The Challenge Improve visibility of projects Recommend a program designed to introduce a Project Management culture for the organization Design and develop the structure and processes to manage the projects Identify the key information required for decision making

19. 3 Program Planning Professionals Page 19 shaping the future of program management Introduction Themes Global vs. regional Financial control Relationship to the business Standardization Roles and responsibilities Culture Transparency Accountability Optimization Consistency Key opportunitiesInterview sections Roles & resp. of the organization Project Management Process People Environment Current Projects Senior Management Interviews

20. 3 Program Planning Professionals Page 20 shaping the future of program management Changing Environment ORGANIZATION BUSINESS COST CONTROL PLANNING CROSS PRODUCT CO-OPERATION PROACTIVE CONTROLLED GROWTH (DOWNTURN?) INCREASED COMPETITION (top 4) NEW TECHNOLOGY (e-COMMERCE) COST REDUCTION Tomorrow FLEXIBILITY DELIVERY FOCUS BUSINESS USER EMPOWERED REACTIVE TREMENDOUS REVENUE GROWTH GREAT SPEED TO MARKET 7th LARGEST INVESTMENT BANK Today EFFECTIVE OPPORTUNISTIC EFFICENT PLANNED Project Management Culture

21. 3 Program Planning Professionals Page 21 shaping the future of program management CUSTOMER CUSTOMER COST COST CONTROL CONTROL COMPETENCY COMPETENCY Changing Environment Tomorrow CUSTOMER CUSTOMER COST CONTROL COMPETENCY Today Strategy Project Management

22. 3 Program Planning Professionals Page 22 shaping the future of program management Operational Model Lack of: D M L K J B C D M L K J B C D M L K J B C D M L K J B C Autonomous +- Entrepreneurial Successful Transparency Accountability Optimization Consistency Today

23. 3 Program Planning Professionals Page 23 shaping the future of program management Business Strategy Business Strategy Operational Model E Z N M K J I A B F G H E Z N M K J I A B F G H E Z N M K J I A B F G H E Z N M K J I A B F G H Education, Training and Development Portfolio Mgt. MIS Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. Cross product co-operation Cross product co-operation Better management of priorities Better management of priorities Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Portfolio Management Process Project Management Process CommunIcatIonCommunIcatIon Tomorrow Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement Service MIS

24. 3 Program Planning Professionals Page 24 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. PORTFOLIO MANAGEMENT MIS Better management of priorities Better management of priorities Cross product co-operation Cross product co-operation Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement SERVICE MIS PORTFOLIO MANAGEMENT PROCESS

25. 3 Program Planning Professionals Page 25 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. PORTFOLIO MANAGEMENT MIS Better management of priorities Better management of priorities Cross product co-operation Cross product co-operation Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement SERVICE MIS PORTFOLIO MANAGEMENT PROCESS Project Slate Resources Timelines Milestones Priorities Cost Example

26. 3 Program Planning Professionals Page 26 shaping the future of program managementIssues Cost Tracking Plan Documentation Project 1 - Documentation - Plan - Cost Tracking - Issues Business Strategy - Cost Reduction - New Market Development - Market Development - E-Commerce Integration - Integration (Day 2) Business Strategy - Cost Reduction - New Market Development - Market Development - E-Commerce Integration - Integration (Day 2) Cost Reduction AABBBAABBB Project 1 Project 2 Project 3 Project 4 Project 5 25 3 1 12 4 25.8 3.4.8 13.2 3.5  Budget ($m) Forecast ($m) Project List Cost Reduction Project 1 Project 2 Project 3 Project 4 Project 5 Schedule Cost Reduction AAABBAAABB Project 1 Project 9 Project 12 Project 15 Project 6 25 4.3 8 1 25.8 10.4 8.2 1.3  Budget ($m) Forecast ($m) Project List Portfolio Management MIS

27. 3 Program Planning Professionals Page 27 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. Project vs. maintenance activities Cost distribution Resource usage Service Levels SERVICE MIS Cross product co-operation Cross product co-operation Better management of priorities Better management of priorities Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement Example PORTFOLIO MANAGEMENT MIS PORTFOLIO MANAGEMENT PROCESS

28. 3 Program Planning Professionals Page 28 shaping the future of program management Service MIS BudgetHeadcount Development Maintenance 990001 Development Maintenance 990001 Problem reports Enhancements JFMAMJ 1 Hour 1 Day 1 Week JFMAMJ Resources Problem cost Enhancement cost Budget

29. 3 Program Planning Professionals Page 29 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. Budgeting Prioritizing Performance measurement Investment decisions PORTFOLIO MANAGEMENT PROCESS Cross product co-operation Cross product co-operation Better management of priorities Better management of priorities Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement SERVICE MIS PORTFOLIO MANAGEMENT MIS Example

30. 3 Program Planning Professionals Page 30 shaping the future of program management MANAGEMENT DECISION MAKING MONITORING WORK (PROJECT AND SERVICE EXECUTION) INPUT RESOURCES PROJECT OR SERVICE “CONTRACT” Management actions IT INVESTMENT DECISIONS BUSINESS STRATEGY IT STRATEGY STANDARDIZED PROCESSES, TOOLS AND ARCHITECTURES STRATEGIC ANALYSIS WORKMANAGEMENT CONTINUOUSIMPROVEMENT ASSETMANAGEMENT WORKMANAGEMENT Business Strategy Business Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. Portfolio Management Process

31. 3 Program Planning Professionals Page 31 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. EDUCATION, TRAINING AND DEVELOPMENT Better management of priorities Better management of priorities Cross product co-operation Cross product co-operation Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement PROJECT MANAGEMENT PROCESS

32. 3 Program Planning Professionals Page 32 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. Coaching, mentoring Customized courses Development centers Lessons learned EDUCATION, TRAINING AND DEVELOPMENT Better management of priorities Better management of priorities Better cost control and savings Better cost control and savings Cross product co-operation Cross product co-operation Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement PROJECT MANAGEMENT PROCESS

33. 3 Program Planning Professionals Page 33 shaping the future of program management Transition Components Business Strategy Business Strategy Division Strategy Portfolio Mgt. Portfolio Mgt. Project Mgt. Project Mgt. Project initiation Method “Lite” Life-cycles Industry best practices SAP Methodology PROJECT MANAGEMENT PROCESS Cross product co-operation Cross product co-operation Better management of priorities Better management of priorities Better cost control and savings Better cost control and savings Consistent delivery Consistent delivery Stronger Senior Mgt. Involvement Stronger Senior Mgt. Involvement EDUCATION, TRAINING AND DEVELOPMENT

34. 3 Program Planning Professionals Page 34 shaping the future of program management Way Forward 6 Months1-1.5 Years2-3 Years 0 Acceptable level of Project Management ExecutiveMiddleLine Portfolio Management MIS Portfolio Management Process Project Management Process Education, Training and Development Service MIS Level of effort Time

35. 3 Program Planning Professionals Page 35 shaping the future of program management Way Forward Design Build Validate Deploy Maintain MIS Intranet Life-cycles Method Lite Training PMO structure MIS Intranet Life-cycles Method Lite Training PMO Structure Training Lessons learned 1 Month 3 Months 2 Months 1 Month 3 Prototypes: - Low - Medium - High

36. 3 Program Planning Professionals Page 36 shaping the future of program management Summary - Program Management The Challenge New Organisation from two distinct Companies Improve the visibility of Projects for decision making purposes Identify the required structure and processes to manage these processes The Solution Phased approach to allow for level of PM maturity Process of Education and Knowledge Transfer Portfolio management of projects to enable the access to key decision making information