MEASURING THE VALUE BEHIND YOUR PPM SYSTEM Build, Measure &
Deliver Mill Beck Consulting 2014 1
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Speakers Mark Woodward Director Mill Beck Consulting 2 Rebecca
Leadbitter Sales Director Sciforma
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Agenda Introduction The Business Case Building the business
case Delivery considerations Measuring the results PPM Capability
for end-users Mill Beck Consulting 2014 3
Building the Business Case 6 Mill Beck Consulting 2014
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Business Case Mill Beck Consulting 2014 7 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.
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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
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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
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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
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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
Its a Change Initiative Are you targeting Outputs? Behaviours?
Values? New policies? Need for organisational structure changes?
New job/role descriptions? Dont forget to include time and effort
for communication, training
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Measure the benefits 14 Mill Beck Consulting 2014
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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
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Possible Measures Mill Beck Consulting 2014 16
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
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PPM Capability for end users 17 Mill Beck Consulting 2014
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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
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Project health check 19
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Where are the pinch points? 20
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21 Will be looking for control and visibility Delivery managers
PMO Ease of generating portfolio reports. Ease of project assurance
activities. Consistent project processes.
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Portfolio shift 22
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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 + 6400 hrs/7.5 hrs per
day = 317 333
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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
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Real time project financials 25
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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
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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
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Identify under / over capacity 28
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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
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30 Cost control Visibility, early warnings Finance &
governance Cost Control Earned Value Management Aggregation of all
project costs Workflow to enforce decision gates
