- peace of mind in a complex world - doing more with less: effective and efficient programme &...

- PEACE OF MIND IN A COMPLEX WORLD -

Doing More with Less:

Effective and Efficient Programme & Project Management

Jonathan Ward

26th September 2006

Severn., London page 2

Agenda

An introduction to the Severn and Nextret Clarity capabilities

Where are we now?

What does effectiveness mean for us?

How do we execute more efficiently?

Q&A


Introduction to Severn

Severn Group plc is recognised internationally as being a results-oriented management consulting firm

delivering Business Change; Project; and Programme Management within Financial Services and Retail Industry sectors

and in Local Government and other Public Sector organisations.


Severn’s Background and History

Severn was founded in 1988 with a focus Deliver projects to fulfil corporate strategy

Add value - Deliver results not reports

We have completed in excess of 100 major projects delivering significant improvements

+70% level of repeat business — demonstrable client satisfaction

Alliance with companies in London, Barcelona, Paris and Frankfurt

CA Enterprise Solution Provider

We currently have more than 100 consultants

Turnover in excess of €15.2 million

New York

Milton Keynes

Stockholm

London

Tokyo

LuxembourgFrankfurt

Zurich/Geneva

Port HarcourtWarri

Columbus


Experience gained from leading organisations


An accredited provider of services and support

A creditable track record of implementations

Our Implementation Process is subject to our ISO 9001:2000accreditation

We have the largest number of certified Clarity Consultants in Europe

We provide hosting and a 24hr a day 5 days per week service desk to help and support end users

- PEACE OF MIND IN A COMPLEX WORLD -

Doing more with less

Efficient and Effective Business Change


Effectiveness and Efficiency Defined………..

“Even the healthiest business, the business with the greatest effectiveness, can well die of poor efficiency. But even the most efficient business cannot survive, let alone succeed, if it is efficient in doing the wrong things, that is, if it lacks effectiveness.

“Effectiveness is the foundation of success - efficiency is a minimum condition for survival after success has been achieved. Efficiency is concerned with doing things right. Effectiveness is doing the right things.”

Source: Peter Drucker, Management: Tasks, Responsibilities, Practices (New York, 1973)


Agenda

Where are we now?



Q&A


Project Management Effectiveness and Efficiency in Action…

In a single UK Government Department, 225 projects in-flight/planned; 60% had no business case

“The project was two years late and three years in development. We delivered an application the user didn’t need. They had stopped selling the product over a year before.”

33% of investment in IT projects is written off before completion

“We have 500 projects. None are on-time and on-budget. This year 40% will get cancelled.”

In a study of UK projects, 38% overran costs by >50%, 24% overran schedule by >50%

Sources: The Standish Group, Mantix, Forrester Research


Why is the Problem So Acute Now?

Current economic climate is that budgets are constrained but the desire for improvement is high Financial Services looking for new products, cross border consolidations, cost reduction

and increased regulation

Retail sector looks increasingly problematic

Huge backlog of technology change requirements Markets are changing in all sectors and this required efficient business change

Recent trends are that business managers are more sophisticated in their investment decisions and less tolerant of the “invisible projects” or investment strategy by “stealth”


Agenda

Where are we now?



Q&A


Business CaseManagement

BenefitsManagement

PortfolioManagement

ProjectManagement

ProgrammeManagement

ChangeManagement

StrategyManagement

ExecutionManagement

ChangeDrivers

Internal

External

SolutionDelivery

The Context for Efficiency and Effectiveness

An organisation committed to the EFFICIENT use of its strategic investment and EFFECTIVE management of its Project Portfolio will have these elements in place

Efficiency Doing the right things

Effectiveness Doing things right


Acid Tests for Effectiveness

Are there explicit links between all project activity and the company’s objectives?

Are project business cases “live documents” for all project initiatives?

Is there a managed process to ensure tangible delivery of benefits?


Portfolio ManagerEffective Decision-Making at a Single Glance

Visualize tradeoffs and select optimal investments with scenario generating and planning

Visualize tradeoffs and select optimal investments with scenario generating and planning

Quickly determine portfolio status and easily customize investment criteria

Quickly determine portfolio status and easily customize investment criteria


Agenda

Where are we now?



Q&A


How to Improve Effectiveness?

Comprehensive Resource ManagementDrive maximum utilization of in-houseand outsourced resources

Scalable, Transparent Status CaptureCapture time and cost of all activities in asingle repository for charge-backs and reporting

World-Class Project ExecutionLeverage best practices acrossentire project portfolio

Empower the PMOAutomate, enforce, and report on process compliance


Managing via “Gates”

Approach developed for internal use by IBM in the 1980s

Indicates critical “Go/No Go” management checkpoints Is the project viable?

Is the project a priority?

Can funding be obtained for the next stage?

Identifies entry and exit criteria between each phase Minimum deliverables

Intra-organisational hand-offs

Structured checklists to “manage the gaps”

Facilitates “sane” financial management

Analyse Design Develop Test Install


Project ManagerEffectively Deliver On-Time, On-Budget, On-Quality

Create and manage tasks and resources in the browser, in Open Workbench, or in MS Project

Create and manage tasks and resources in the browser, in Open Workbench, or in MS Project

Manage budgets, forecast, and actuals and view real-time project ROI

Manage budgets, forecast, and actuals and view real-time project ROI

Use pre-defined methodology or create from scratch

Use pre-defined methodology or create from scratch

View stoplights for project risk, status, and schedule

View stoplights for project risk, status, and schedule


A Model for Project Efficiency - CMMI

1. Initial

2. Repeatable

3. Defined

4. Managed

5. Optimized

Ad hoc, based on individual and team “heroics”

Basic management processes in place. Projects draw on documented previous experience.

Standardized, documented and integrated processes in place.

Detailed quantitative measures collected and controlled.

Quantitative feedback from the process is used for continuous improvement


Process ManagerMethodologies for Best Practice Execution

Develop and deploy templates…Develop and deploy templates…

… processes… processes

… and content… and content


The Opposite Ends of the Effectiveness Scale

19%78%2%1%

Automated Estimates

Automated Plans

Formal Tracking

Optimal Quality Control

EarlyOn TimeDelaysCancel

Probability of Selected Outcomes

Optimized

0%15%45%40%

Manual Estimates

Manual Plans

Informal Tracking

Minimal Quality Control

EarlyOn TimeDelaysCancel

Probability of Selected Outcomes

Initial


Frameworks

Reporting

• Status Reports• Progress Control• Cost Control

Fundamentals

• Business Case• Prioritisation• Approval• Sponsorship

Estimating & Planning

• Time• Costs• Dependencies

Scope Control

• Project Content• Requirements• Sub-projects• Change Control

• Acceptance• Test Strategies• Migration• Support

ImplementationQuality & Control

•Success Criteria •Config. Mgt• Problem-Mgmt.• QM-Measures

Organisation

• Project Structure• Roles • Resources• Communication

Risk Management

• Business Risk

• Project Risk• Fallback

scenarios


Optimizing - Quantitative Management

“You cannot manage what you cannot measure” (Deming)

“What I need is to get visibility so I can put things right before they become incorrectably wrong”

Project Reporting Metrics should include Cost

Schedule and Time

Delivery against Milestones

Quality and Defects

Risks and Issues

Change and Stability

Quantitative management requires significant investment in tools and technology to gather data and organisational ability to transform data into information


Improving Effectiveness the CMMI Roadmap

1. Initial

2. Repeatable

3. Defined

4. Managed

5. Optimized <1%

<10%

>50%

Likely F

ailure R

ates

19 mths

12 mths

8 mths

9 mths

4-ye

ar c

ycle


In Summary

Effectiveness and Efficiency are critical to project performance success

We tend as IT professionals to be happier in the “Efficiency” space

But without Effectiveness we are wasting our time and the organisation’s money

Effectiveness = Business Linkage, Prioritization and Benefits Management

Efficiency = What are your people doing now and what are they going to be doing?

GET EFFECTIVENESS RIGHT FIRST!


Q&A

Questions or comments?


Severn Group plc

Jonathan Ward

Bucklersbury House3 Queen Victoria StreetLondon EC4N 8ELUK

Tel: +44 207 653 0600Fax: +44 207 653 0601

Internet: www.severngroup.comEmail: [email protected]

Contact

- peace of mind in a complex world - doing more with less: effective and efficient programme &...

Documents

london page

history severn

severn severn group

qa slide

efficient business

greatest effectiveness

business change project

business case