Unleash the power of your project management office with HP Project and Portfolio Management (PPM) Center software

Transcription

1 Unleash the power of your project management office with HP Project and Portfolio Management (PPM) Center software

2 Table of contents Introduction Why do projects fail? Business perspective IT perspective The HP approach to project and portfolio management Top-down approach, bottom-up execution Complete visibility Fine-grained controls Total flexibility HP PPM Center How it works Why it works Net results for the CIO Net results for the PMO Working with HP Answers to top five customer questions Summary For more information

3 Sixty-seven percent of companies feel their program/project management practices are in need of repair. - KPMG Introduction Today s project management office (PMO) struggles with time, cost and resource management challenges particularly at the aggregate level. With multiple operational and strategic projects under evaluation and in-flight at any given moment, it can be difficult to step back and see the forest through the trees. Identifying which projects and activities will meet business objectives requires a level of visibility and control many PMOs simply don t have. With HP Project and Portfolio Management (PPM) Center software, the PMO gains visibility into strategic and operational demand as well as in-flight projects and programs. Unlike approaches that offer only timereporting systems and project scheduling tools, HP PPM Center offers top-down planning capabilities that are supported by bottom-up detailed project plans. In addition, HP PPM Center is the only solution built on top of a powerful workflow process engine that can automate project and portfolio management processes. With these capabilities, HP can provide the PMO with the visibility, controls and flexibility required to align IT services with business objectives. Why do projects fail? You don t need a research report to tell you that IT projects fail too often. You know it. Whether you re a technical professional, an IT manager or the CEO, you see it. The customer relationship management (CRM) system still isn t working right. The new web-based ordering system is almost always down. Overworked IT employees are bringing sleeping bags to the office. But analysts can give you the hard data: Seventy percent of projects fail to meet schedule, cost and quality goals. (Gartner) Fifty-two percent of IT projects are canceled; 82 percent are delivered late. (CHAOS) Fifty percent of IT projects are delivered over budget. (Gartner) Fewer than 40 percent met business objectives one year later. (KPMG) The problem isn t just that the majority of IT projects fail to deliver the intended results. Even when projects are executed successfully, all too often they still fail to deliver business benefits. The real issue is that there is misalignment between business objectives and IT activities. Executive management and business units have limited visibility into what IT is doing, and IT has limited connection with business and strategic objectives. A closer look at this core issue from a business perspective and from a technical perspective reveals the root causes of project failure. 3

4 Figure1. The top reasons for project failure (Gartner) 62% DEFICIENCIES IN SYSTEM DELIVERY 45% POOR ORGANIZATIONAL CHANGE MANAGEMENT 35% CHANGES OUTSIDE THE SCOPE OF THE PROJECT 31% MAJOR PLANNING ERRORS Business perspective To executive management, the success or failure of a project is measured by its contribution to core business objectives and the bottom line. Executives want straight answers to simple questions. How will the proposed project improve our competitiveness? What s the net present value of Project A as opposed to Project B? If we invest $100,000 developing a new web-based customer-service application, what s the expected return and in what time frame? Yet, traditional project management tools are not designed or equipped to answer these questions. They do not aggregate project data across the IT portfolio, so they are not useful in making apples-to-apples comparisons between projects. They focus on success metrics for individual projects. They do not support clear, consistent communications among project stakeholders. And, they do not provide information in a format that is useful for executive decision-making. IT is taking on the character, rigor and practices of a business within a business. It won t be easy, but for CIOs it s a matter of survival. IT perspective A recent Gartner study reported that for today s project and service organizations, including IT departments, the struggle is at the aggregate level. Most of these organizations have time-reporting systems and projectscheduling tools, but with such tools these organizations cannot take a step or two away from the trees to see the forest. The lack of the big picture is at the heart of the IT PMO s challenge. There is no consolidated view into all the demand placed on IT, so there is no structured way to prioritize projects including evaluating new project proposals against current commitments. There is no integration of planning, financial and resource data across the project portfolio, so there is no way to fine-tune the processes. There are no enterprise-wide standards or methodologies, so there is no consistent way to measure or monitor success. Simply put, there is no way to align IT activities with business priorities. CIO Magazine, How to Run IT Like a Business 4

5 The HP approach to project and portfolio management We believe it s time to stop managing projects and start optimizing business outcomes. Effective project and portfolio management requires a focus on business-level benefits at the aggregate level, not just success at the project level. Top-down approach, bottom-up execution What s needed is an integrated, top-down view of all IT activities so that management has more visibility into the portfolio, better controls to enforce processes and greater flexibility in applying processes, standards and methodologies. At the same time, an effective project and portfolio management solution should support the execution of projects and oversight of the project methodology from the bottom up. In other words, the details of the day-today work of delivering projects should be captured by the system and used to support decision-making. Complete visibility Your organization needs visibility into everything IT is working on, including project health metrics, non-project work, resource allocations and overall costs. You need the ability to aggregate both strategic and operational projects and see the critical interdependencies among projects for example, whether the resource demands of an operational project might prevent you from undertaking a proposed strategic project. This capability will enable you to manage and prioritize the collected work so that you make sure that the right people are working on the right things at the right time. Fine-grained controls Integrated, top-down project and portfolio management can help you define and enforce control points throughout the process. This enables management to make more informed decisions about actions to take and heightens the level of confidence in those decisions. Controls can also help cut costs by automating and enforcing project, program and portfolio processes. An effective solution will provide field-level audit trails for all changes to critical applications and projects and make your data accurate, helping you maintain regulatory compliance. Once the PMO becomes more agile, business processes can be adapted more quickly to respond to changing market conditions. IDC forecasts strong continuing growth in the IT project and portfolio management (ITPPM) segment, with expected revenue approaching the magical $1 billion mark around the end of the decade. Demand should remain strong for ITPPM tools throughout our forecast period, and there is further, strong market and product evolution that will occur as larger vendors deliver more complete ITLM solutions. Melinda Ballou, IDC Total flexibility A project and portfolio management solution should allow you to adopt either a top-down or bottom-up project planning approach. It should let you bring in project plans from Microsoft Project and other data sources and gain an aggregate view across strategic projects and operational activities. It should enable you to implement standards and methodologies across the enterprise and bring order out of chaos. And, it should allow you to achieve rapid time-to-value without customization, so you can get started quickly and adopt new capabilities at your own pace. 5

6 Figure 2. Our integrated approach to project and portfolio management HP Project and Portfolio Management (PPM) Center software Dashboard Project Management Financial Management Portfolio Management Time Management Demand Management Program Management Resource Management CPIC Accelerator Foundation Portfolio Optimization Workflow Administration Security Open APIs HP PPM Center We provide the best-practice templates and processes you need to get beyond today s failed project management methods and get started on your road to optimized project and portfolio management. HP PPM Center integrates and unifies all of the discrete elements that make up the IT workload from IT demand management to financial management, time management and resource management, to project management, portfolio management and program management so you have real-time visibility into all IT activities, when you need it. Unlike approaches that offer only time-reporting systems and project scheduling tools, our solution offers top-down planning capabilities that are tightly coupled with bottom-up details of the project execution. In addition, HP PPM Center is built on top of a powerful workflow process engine that can automate project and portfolio management processes. These capabilities enable HP PPM Center to provide the PMO with the visibility, controls and flexibility needed to align IT services with business objectives. 6

7 Figure 3. Consolidated top-down planning and bottom-up execution Visibility Controls Flexibility Workflow Audit trail Notifications Escalations Governance structures Business rules Project proposals Operational work Budgeting/costing Resource capacity analysis Project scheduling HP Project and Portfolio Management (PPM) Center software Issues, risks, scope, changes Time tracking Time tracking Testing issues (defects) Change management Service desk or third-party integrations How it works With HP PPM Center, you can step back and see the forest and the trees. You can see it all every piece of information related to your IT workload on one dashboard, in real time. Project proposals. Project schedules. Budgets. Routine service requests. Resource capacities. Testing issues. Risks. It all comes together here. And, once you have a top-down view of all IT activities, you can begin to make more informed decisions about individual projects. Which has the highest net present value? Which can be accomplished quickly given current staffing constraints? Which will contribute more to customer satisfaction and loyalty? Which will deliver a new competitive advantage? Equally important, HP PPM Center aggregates operational activities and strategic projects along with in-flight projects and programs. This gives you a complete view of what is going on now, what is planned and what is being evaluated. Why it works HP PPM Center works, because it delivers the level of visibility, controls and flexibility required by executive management and technical professionals. Visibility: You can consolidate the management of all work, including strategic projects and operational work. You can optimize your IT portfolio based on business objectives. You can manage by exception with easy-to-comprehend, real-time dashboards and automated alerts. You can manage proposals, projects and assets across their lifecycle, end-to-end. Controls: You can enforce an enterprise-wide baseline for standards and methodologies. A drag-and-drop workflow process engine simplifies configuration without custom coding. Advanced audit trails are provided for all critical changes. And, the solution provides enterprise-class document management with full version control, check-in/check-out and full contentsearch capabilities. 7

8 Flexibility: You can accelerate enterprise-wide usability with our zero-client, web-based interface. You can support both top-down and bottom-up planning and execution. You can aggregate data from existing project plans in Microsoft Project or other disparate data sources. And, you can achieve rapid time-to-value and phase in new capabilities at your own pace. In the face of regulatory compliance and complex new application environments, effective and sustainable governance is important. With the product suite as the foundation of our solution, we can work closely with the business to drive corporate goals and objectives, lower costs and reduce risks, while managing risks such as SOX compliance. Jeff Johnson, Vice President of Corporate Applications, Constellation Energy Net results for the CIO HP PPM Center delivers on the demands of executive management and the PMO at the same time. HP PPM Center enables the CIO to: Align IT activities with business goals. HP allows you to take incoming requests whether they re formal proposals or simply ideas and compare them against in-flight projects. This enables you to quickly evaluate and respond to new proposals without building out detailed project plans. It also allows you to balance projects, proposals and IT investments against your business objectives, so you can optimize your portfolio mix. And, with real-time visibility into everything from demand to resource trending and budget information, you can maintain IT alignment with business goals. Manage by exception. We can help you proactively mitigate risk by providing alerts and notifications when problems arise. You can quickly see all the issues associated with project schedules and costs and revise your plans accordingly. Become a trusted partner to IT. With a better understanding of what IT is working on, better communications with IT management and better data to support decision-making, CIOs can become key collaborators and partners with IT. Getting funding for new projects used to be a difficult, emotional process for a major online auto marketplace. Since the company began using HP PPM Center, it now has hard data to support project and budget decisions. The result: IT has added about 20 new initiatives to its project list and nearly $5 million in additional funding. Rapidly adapt to unforeseen business change. We provide the information and controls necessary to assess the impact of change and respond appropriately. You can quickly calculate the impact a given change will have on IT, and get the information needed to meet new requirements. And, you get visibility into project and non-project IT activities, including availability impact on project timelines, so you can quickly readjust budget and resource allocations as business conditions change. Xcel Energy, formed by the merger of two regional energy companies, needed to rapidly lower the cost of IT and also demonstrate the value of IT to executives. With HP PPM Center, Xcel was able to respond to this executive mandate quickly, saving $8 million by identifying at-risk or low-value projects. The company also improved the number of healthy projects by 70 percent all within eight months of implementation. Achieve and maintain compliance. HP PPM Center enables you to easily configure workflow processes and implement best practices to support regulatory compliance and industry standards such as ITIL, CMMi, CoBIT, PRINCE2 or Six Sigma. Our software lets you automate and enforce these methodologies, providing a solid foundation for effective governance and compliance. Constellation Energy reduced Sarbanes- Oxley audit sample points by more than 95 percent, driving a recurring tangible savings of more than $1 million per year in audit costs. 8

9 Realize rapid time-to-value. Our integrated, flexible workflow expedites implementation timeframes. Built with a best-in-class workflow process platform, HP and our partners deliver out-of-the-box content with proven best practices to shorten time-to-deployment and reduce operational costs. Birlasoft, a global outsourcing firm, uses HP PPM Center to institute Six Sigma and CMM Level 5 best practices. By getting this process framework in place, Birlasoft has improved project team productivity by 30 percent, saved more than $2 million by avoiding costly project runs and reduced project management costs by 67 percent. One of the world s largest outsourcing firms has adopted HP PPM Center as the core of its own project management methodology. And, several boutique consulting firms have either embraced this solution or built their business around their expertise and accomplishments with HP PPM Center. Net results for the PMO HP PPM Center also addresses the core issues of the PMO. It enables the PMO to: Improve communications with executive management. With HP PPM Center, the PMO can clearly communicate the health and status of projects. And, with enforced project methodologies, real-time reports and dashboards summarize and evaluate the status of in-flight projects and operational activities. A 2006 study by the University of Quebec at Montreal reports that 42 percent of its respondents say the relevance of the PMO organization has been seriously questioned. Reduce the number and cost of failed projects. Our topdown planning focuses activities on achieving business objectives. This enables companies to stop redundant, low-value or high-risk projects. [HP PPM Center] has allowed us to bring IT back under control. The business is now part of the prioritization process. Director of IT Strategy, leading international holding company 9

10 Make sure the right people are working on the right projects at the right time. We help you analyze and compare skill sets, levels of proficiency, availability and projected resource utilization while staffing your projects. PAETEC Communications, one of the fastest-growing telecom companies in the United States, implemented HP PPM Center to gain full visibility and control over its IT activity. PAETEC has cut average troubleticket handling time almost in half during a one-year period, avoided a $1.3 million purchase by leveraging HP offerings to automate key HR processes, cut IT request handling time by 50 percent and reduced IT costs to approximately one-half of the industry average. Identify the right projects and execute to plan. With HP PPM Center, projects, proposals and IT investments can be balanced against business objectives to provide you with the recommended portfolio mix, so you can achieve optimal efficiency. Since a leading online auto marketplace began using HP PPM Center to accurately evaluate the business value of project proposals, the number of projects declined dropped from nearly 50 percent to less than 10 percent. Working with HP HP offers a flexible range of options to customers who are interested in making the move to more effective project and portfolio management. Our unique delivery model can help reduce risk, shorten time-to-value and decrease deployment costs. If you decide on a traditional, in-house deployment our HP Services team and partners are available to assist with implementation and full deployment. We also provide a full set of consulting, education and support offerings to help achieve success. If you choose HP Managed Software Solutions, we provide full deployment of your solution as a hosted service through the Internet and provide ongoing expertise to help you get the most from your software. If and when you desire, you can easily migrate your configuration and all your data to your own environment within a few weeks. With both approaches, you benefit from our best practices, which provide you faster timeto-value and lower overall deployment risk. 10

11 Answers to top five customer questions 1. Do I need to implement HP PPM Center software all at once, or can I purchase and deploy them as needed? Answer: We give you the flexibility to purchase HP PPM Center software as your needs dictate and implement them at your own pace. 2. Will I need to configure HP PPM Center to meet my specific requirements? Answer: This depends on your specific goals. HP PPM Center has been successfully deployed by our customers out of the box without configuration. Other customers do choose to take advantage of our highly configurable workflow engine to rapidly roll out processes. 3. Are HP Services required for implementation of HP PPM Center? Answer: Yes. You can leverage HP Services or services from our partner community if you choose. 4. Can you provide a more formalized assessment of my organization s readiness to implement HP PPM Center? 5. How do I avoid disrupting current operations and processes while I make the move to HP PPM Center? Answer: We have partnered with the very best vendors to offer guidance and support to our customers who are addressing organization change, helping to smooth the path to effective implementation and end-user adoption. HP Services can provide additional assistance in this area. Summary There is no question that today s project management practices are in need of repair. The problem lies in the approach, not in the tools and not with the talented professionals who use them. By focusing on optimizing business outcomes rather than just managing individual projects, companies can achieve a true breakthrough in bottom-line business results. As current customers have demonstrated, it is possible to make the move from ad hoc processes to integrated project and portfolio management without creating additional headaches for executive management or the PMO. Answer: Yes. HP or our diverse set of partners can prepare an assessment of your organization s maturity level and determine the right starting point for you. If you d like additional information and suggestions about how to get started with HP PPM Center, read the white paper titled Four Starting Points for Effective IT Project and Portfolio Management. 11

12 For more information visit Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. Microsoft is a U.S. registered trademark of Microsoft Corporation. 4AA1-1965ENW, April 2007