Seminar in PM Week 4 Assignment

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Using the Balanced Scorecard to Enhance the PPM Methodology

James Norrie, B.Com, M.Ed, M.A.Sc., CHRP, PMP Director, School of Information & Technology

Management Ryerson University, Toronto, Ontario, Canada

When You Measure Project Results… Do You Fail?

The Boston Consulting Group released a study that says two-thirds of their big projects were pegged as unsuccessful overall.

Because companies do not invest in Program Management: Over 85% of organizations do not train their project managers or support them with a “project office”

According to THE WALL STREET JOURNAL, 42% of all technology projects launched in the U.S. are abandoned before completion. With more than $250 billion spent on IT every year, that means $105 billion goes down the drain.

The VISION Barrier Strategy is not understood by those who must implement it…and not translated into clear objectives

The MANAGEMENT Barrier Management systems are designed for operational control and tied to budgets; not to strategy and projects

The OPERATIONAL Barrier Key processes and projects are not designed to connect to and leverage the real drivers of your business strategy

The PEOPLE Barrier Personal goals, knowledge building, and competencies are not linked to strategy implementation

STRATEGY

My Own Research Identifies Four Major Barriers To Strategic Success…

The Original “Time-Cost-Quality” Triangle

On-Time

On- Budget

On- Quality

Sources: Various including PMBOK. PMI Inc.

But Isn’t There a Dimension Missing?

What About On Strategy?

It doesn't matter if your project or program is on- budget and on-time if the company doesn’t need it. All too often, the intended strategic outcomes planned for a project or program are not fully achieved or are not all that important if achieved. And, if you face limited resources, how do you pick the projects that will have the most strategic impact?

The Program/Project Strategy Challenge...

Program Managers struggle with answering whether or not their projects are “on strategy” because companies struggle with executing strategy.

The key is to link project results to business strategy in a tangible and visible way that everyone understands.

Revised Triangle: Adds “On-Strategy” Dimension

On- Strategy

On-Time

On- Budget

On- Quality

Source: J. Norrie, Ryerson University, c. 2002

The Balanced Scorecard Provides a Framework to Translate the Vision and Strategy Into Operational Terms

Measurement is the language that gives clarity to vague concepts.

Measurement must be used to communicate, not to control.

Building a scorecard develops consensus and teamwork throughout the organization and across strategic projects.

Balanced measurement across all perspectives, including projects, is fundamental to the methodology’s ability to influence results.

"If we succeed, how will we look to our

investors?”

The Vision

Financial PerspectiveFinancial Perspective

"To achieve my vision, how must I look to my

clients?”

Customer PerspectiveCustomer Perspective

"To satisfy my clients, at which processes must I

excel?”

Internal PerspectiveInternal Perspective

"To achieve my vision, how must my organization learn

and improve?”

Organization LearningOrganization Learning

How the BSC Works to Improve Strategy

The Balanced Scorecard methodology captures linkages between objectives and effort across multiple perspectives…

FINANCIAL PERSPECTIVE

CUSTOMER PERSPECTIVE

INTERNAL PERSPECTIVE

LEARNING AND GROWTH PERSPECTIVE

Increase Revenues

Increase Customer

Satisfaction

Provide Appropriate CRM Tools

Reduce Response

Time

Improve Training

Increase Staff

Knowledge

Workshops

Key Stakeholder Interviews

Strategy Mapping & Measures

Creating a Project Balanced Scorecard

The methodology of creating a P-BSC assures all key issues and stakeholders are addressed to build support for the program, reduce the risks and assure organization alignment and strategic outcomes.

Corporate Strategic Plan Customer & Employee

Issues Technology Issues

Program Charter

Project Scorecard

Init iatives

Organizational Enabler

Internal Process

Customer

Financial

Program Vision

Objectives M

easures

Objectives M

easures Initiatives

Objectives M

easures Initiatives

Objectives M

easures Initiatives

The Balanced Scorecard Approach Changes the Premise Upon Which the Management System Is Based

Strategy and

Vision

Planning and

Capital Allocation

Personal Incentives

Review & ReorientBudget

Designed around a shortDesigned around a short--term term controlcontrol-- oriented financial frameworkoriented financial framework

Translating the

Vision and Strategy

Business Planning

Balanced Scorecard

Communicating and

Linking

Feedback and

Learning

From a Management Control System

To a Balanced Management System

Designed around a longer term Designed around a longer term strategic viewstrategic view

The Optimal ‘Order of Operations’

CapacityProjectsStrategy

In this instance, the organization determines its strategy, project plans are developed and then capacity planning processes are used to determine resourcing options and alternatives that will accomplish the strategic agenda at optimal cost and efficiency. Capacity is seen as a potentially “limiting factor” in strategy execution but not as a pre-determined constraint (i.e. capacity is treated as a flexible input to strategy development).

DEFINING PROJECT PORTFOLIO MANAGEMENT (PPM)

“The art and science of applying a set of knowledge, skills, tools and techniques to a collection of projects in order to meet or exceed the needs and expectations of an organization’s investment strategy”

- Source: PMI Knowledge Wire, March 2003

• Speed to Market? • Quality? • Cost? • Service? • Market Share? • Technology Advances? • Product Innovation? • Customer Intimacy? • Vertical Expertise? • Revenue Growth? • Profits? • Share Price?

A company’s processes must be tailored to its business drivers and strategy. There is no “one size fits all” approach. However, there are clear best practices that work for each and that should be incorporated into a company’s strategic process design,including business cases and any project management methodologies.

What Drives Your Company/Organization?

Screen Checklist (Gate 1)

1 2

5 Project

Requests

Screening

Prioritization

Registered Project List

Project Activation (Gate 3)

Project Cycle Time

Project Outputs

Master Project

Schedule

Priority Matrix

(Gate 2)

PROJECT PORTFOLIO MANAGEMENT PROCESS

Source: SPM Group, March 5, 2003

Originating Initiating Planning Executing/ Monitoring Closing

Capacity Planning

People Project A

Project B

Project C

Project D

Project E

Project F

Project G

Project H

PRIORITIZATION MODEL Customer

Service Financial Size of bubble indicates strength of strategic contribution.

Color of bubble varies by project.

Return

R I S k

Very Direct Direct Indirect Weak

Return

REGISTERED PROJECT LIST

A listing of projects in priority order: 1. _____________________ 2. _____________________ 3. _____________________ 4. _____________________ 5. _____________________ 6. _____________________ 7. _____________________ 8. ___________________ ...

Water Line

• largest agriculture lending institution in Canada • approximately $11B portfolio and 1300 employees nationwide • considered by its clients to be very customer-oriented • launch many new products/offerings every year • considerable emphasis on IT to enable the business (web, etc.)

Program Performance Measures

(M1.1) EVA for harmonisation/integration activities of OoT Operational expense budget on Target

(M1.2) % o f customised solutions vs. global solutions (C1.1) % o f projects co mpleted on-time

% o f co mpleted projects meeting 90%+ of functionality expectations (C1.2) % o f solutions designed to be scalable for 5x capacity

% o f solutions with capacity & design signoff by business % o f solutions with unit-cost savings when additional users are brought onto platform

(C1.3) # of C&W network outages (testing: “ meshed”) # of occurrences o f single-point-of- failure % o f SLAs guaranteeing end-to-end network performance, including responsibility for 3rd party partner per formance

(C1.4) Customer service results on “ proactive service” query # of solution teams that deliver monthly update to client

(P1.1) Products implemented across multiple geog., with minor modification # of functional elements (of products) that conform to standards

(P1.2) # of maintenance tasks performed ac ross multiple geographies Product towers covered by global service centres # of initial 35 products developed by cross-geographic teams

(P1.3) P roject milestones met P roject Budgets met

(P1.4) # of interfaces is less than number of customers/channel partners % CRB approved projects complying with IT/Engr. Global Roadmap

% o f CRB approved OoT project through Standards review process

(P1.5) % o f 35 products developed using collaborative tools & technology (using existing tools)

(O1.1) Is methodology defined, and in-place? (Y/N) Are case tools/development tools available? (Y/N)

(O1.2) % value o f OoT purchases made o ff pre ferred-vendor list

(O1.3) # of products that can accept a 4x volume increase over sales forecast within 90 days (i.e., 90 days to ramp-up for change)

(O1.4) eGo Milestones met (Y/N) Desktop video rolled out to level 3 staff Role definition provided within 10 days of new assignment 100% Rollout Global Messaging System

% o f attach ments on emails % o f level 2 & 3 positions filled on permanent basis

(O1.5) Representation on strategic supplier advisory boards Limitations for technologies formally documented for 35 products -

Standard - Non standard -

(O1.6) # of project plans targeting legacy decommissioning roadmap % o f systems/applic. covered by system deco mmissioning roadmap

75% - 10/31/00 100% - 6/30/02 12 - 12/31/00 3/5 by 12/31/00 12 by 10/31/00 80% - 12/31/00 60% - 12/31/00 by 12/31/00 30% - 12/31/00 60% - 12/31/01

Y - 12/31/00 Y- 12/31/00 35% - 3/31/01 70% - 3/31/02 100% - 12/31/00 30 days - 12/31/01 Yes - always

15% - 12/31/00 80% - 12/21/01

100% - 10/31/00

80% - 12/31/00 100% always 250 - 7/31/00 100% - 2/28/01 ↓50% - 12/31/00 90% always 60% by 3/31/01

TBD 100% - 12/31/00

Yellow

Yellow Green

Yellow

Green Yellow

Green

100% - 12/31/00 50% -12/31/00

Red Yellow

Green Yellow Yellow

Yellow

Yellow Yellow

Yellow

Yellow Yellow

Yellow

Yellow Yellow

Yellow

Yellow Yellow

Yellow

Page 1

Strategic Measure Target Current Performance OwnerStrategic Measure Target Current Performance Owner

£165M FY00 Yellow

Delivery Strategies & Objectives

Program ExecutionProgram Execution

… by managing all as pects of the program execution to successfully deliver global data

management

Manage risk to assure

business benefit

Manage risk to assure

business benefit

Deliver program on-time, on-budget and on-

strategy

Deliver program on-time,

on-budget and on- strategy

Meet client expectations Meet client expectations

Effectively communicate between PXO & business on all

pert inent issues

Effect ively communicate between PXO & business on all

pertinent issues

Plan ProgramPlan Program

Manage Scope and change

requirements

Manage Scope and change

requirements

Align program activities with

business objectives

Align program activities with

business objectives

Share knowledge and leverage best

practices

Share knowledge and leverage best

practices

Fully define PMO process

O1.2

C1.1

M1.1

M1.2

O1.3

Initiate Program Initiate

Program

Monitor program execution

Monitor program execut ion

P1.1

P1.2

P1.3

P1.4

P1.5

Identify and resolve key

issues

Identify and resolve key

issues

C1.3

C1.2

O1.1

Identify internal and external skilled implementation

resources

Identify internal and external skilled implementation

resources

Fully define PMO organisation

Fully define PMO organisat ion

O1.4

Strategic Themes: Perspectives:

Mission (What are the desired strategic outcomes we are striving for?)

Customer (What are the expectations of our customers? What is the end result they are looking for?)

Inte rnal Process (To satisfy our customers, at what Management process must we

excel?)

Organisational Enablers (To excel at our processes, how must our organisation learn and improve?)

Program Execution Measures

Program Plan

S am p le W o rk P lan fo r IR T P ro jec t a t H P

R en aiss an ce L ea d ing a ll S c orec ards

R en aiss an ce L e a d ing a ll S c orec ards

9 10 11 1 2 13 14 1 5 1 6

A pril

1 2 3 4 5 6 7 8

M ay Ju n e J u ly

R en aiss an ce a n d H P L ea d ing

S c orec ards

R en aiss an ce a n d H P L ea d ing

S c orec ards

R e naissanc e L ea ds B S C

H P In terna l T ea m L ea ds B S C

O P T IO N # 1

O P T IO N # 2

K ic koff M e eting

IR T L ev e l B SC

In fra stru c ture B SC # 1

In fra stru c ture B SC # 2

In fra stru c ture B SC # 3

In fra stru c ture B SC # 4

In fra stru c ture B SC # 5

P ro to typ e & D o cum en t.

M ajo r C hec kpo in t

The methodology and structure of creating and using the Project Balanced Scorecard was designed to assure that any program and all its underlying projects and initiatives remain on strategy with an “early warning” system within FCC for high risk areas that may need senior management attention.

Program Objectives Strategies & Objectives Ubiquitous data

to help enable the globalisation of the Corporation

Program ExecutionProgram Execution

Manage risk to assure

business benefit

Manage risk to assure

business benefit

Deliver program on-time,

on-budget and on- strategy

Deliver program on-time,

on-budget and on- strategy

Meet client expectations Meet client expectations

Effectively communicate between PXO & business on all

pert inent issues

Effectively communicate between PXO & business on all

pert inent issues

Plan ProgramPlan Program

Manage Scope and change

requirements

Manage Scope and change

requirements

Align program activit ies with

business objectives

Align program activit ies with

business objectives

Share knowledge and leverage best

practices

Share knowledge and leverage best

practices

Fully define PMO process

O1.2

C1.1

M1.1

M1.2

O1.3

Init iate Program Init iate

Program

Monitor program execution

… by managing all as pects of the program execution to successfully deliver global data

management

P1.1

P1.2

P1.3

P1.4

P1.5

Identify and resolve key

issues

Identify and resolve key

issues

C1.3

C1.2

O1.1

Identify internal and external skilled implementation

resources

Identify internal and external skilled implementation

resources

C2.1

… by enabling globalisation with high quality and accessible business information delivered

in a global common business language

Program ResultsProgram Results

C2.2

Global interaction based on a language

with global data definitions

Global interaction based on a language

with global data definit ions

Enable well informed decisions

Access trusted and t imely data

at all levels

Access trusted and t imely data

at all levels

Flexibility to support future

changes

Flexibility to support future

changes

Create team of internal and external skilled operational

resources

Create team of internal and external skilled operational

resources

Maintain institutional repository

of common global language

Maintain institutional repository

of common global language

Develop standards in cooperation with the Standards Group

M2.1

M2.2

O2.1

O2.2

Maintain continuous

improvement of data quality, process and

results

Maintain continuous

improvement of data quality, process and

results

Sustain consistent

definit ion and high quality of

data

Sustain consistent

definit ion and high quality of

data

Continuously monitor program

results

Continuously monitor program

results

Change control and resolution

P2.1

P2.2

P2.3 P2.4

O2.3

Fully define PMO organisation

O1.4

Strategic Themes: Perspectives:

Mission (What are the desired strategic outcomes we are striving for?)

Customer (What are the expectations of our customers? What is the end result they are looking for?)

Internal Process (To satisfy our customers, at what Management process must we

excel?)

Organisational Enablers (To excel at our processes, how must our organisation learn and improve?)

Mitigating Project Risk Through the P-BSC at FCC…

Define Innovation Strategy

Prior itize Opportunities for

Innovative Solut ions

Prioritize Opportunities for

Innovative Solut ions

Serving Canada’s Ag Industry through Self-Sustaining Growth

…by prudent financial management and continuous efficiency improvement

…by serving the full ‘life cycle’ and “retaining”? customers

…by developing, packaging, and delivering solutions in new ways

…by serving the full spectrum of the agricultural industry

…by attaining an enduring market presence with our stakeholders

Broaden Revenue Mix with New Products and

Serv ices

Broaden Revenue Mix with New Products and

Serv ices

Enhance I.T. for Improved Speed,

Timeliness, Integration,

Reliability , and Cost

Enhance I.T. for Improved Speed,

Timeliness, Integration,

Reliability , and Cost

Solve Value Adding Problems

(Opportunities)

Solve Value Adding Problems

(Opportunities)

SOLUTION (SELLING?)INN OVATIVE CULTU RECUSTOMER FOCUS

Give Back to the Communities in Which

we Operate –Community Investment

Give Back to the Communities in Which

we Operate –Community Investment

Grow the Value of FCC Brand Equity

Financial

Serv ice/Process

People

Grow Revenue Through Customer

Extension and Expansion

Grow Revenue Through Customer

Extension and Expansion

Dif ferent iate FCC by offering solut ions integrat ing Farm

Finance and Business Services

Dif ferent iate FCC by offering solut ions integrat ing Farm

Finance and Business Serv ices

Grow Returns by Serving Customers so they

Choose t o Stay

Grow Returns by S erving Cust omers so they

Choose to Stay

Make FCC Easy to Do Business With

Implement Retent ion Planning

Leverage Financial Asset s

(Leverage equity? Manage f in asset s?)

Leverage Financial Assets

(Leverage equity? Manage f in assets?)

Increase Customer Satisf action

(Loyalty) through Superior Execution

Increase Customer Satisfaction

(Loyalty) through Superior Execution

Lead Integrated Sales/Financial PD&I Teams

Lead Integrated Sales/Financial PD& I Teams

Be Known as Provider of Choice for Innovative A gri-

Finance

Be Known as Provider of Choice for Innovative Agri-

Finance

Customer

Capture and Deepen Agricultural Sector Expert ise (identify

the needs)

Capture and Deepen Agricultural Sector Expert ise (identif y

the needs)

Develop Dynamic Leadership of Cross-Functional Agri-Finance Solutions Teams

Perform a Clear Public Policy Role Furthering Govrnmnt s Agricultural

Policy Framework

Perf orm a Clear Public Policy Role Furthering Govrnmnts Agricultural

Policy Framework

Enhance Customer

Segmentat ion

Enhance Cust omer

Segmentat ion

Shift Customers to Best Channel

Improve Risk Management

Practices

Improve Risk Management

Practices

Identify P rofitable Customers, Channels, Products. (Understand Customer Profit ablity)

Identify Profitable Customers, Channels, Products. (Understand Customer Profitablity)

Identify E xternal Sources of

Cutt ing Edge Agri-Expertise

Identify External Sources of

Cutt ing Edge Agri-Expertise

Develop and Implement a Partnering /

Alliance Process

Develop and Implement a Part nering /

Alliance Process

Stimulate ‘High Risk ’ Funds for Agri-Vent ures

Beyond FCC’s Public Policy Risk Prof ile via VC

Relationships

Stimulate ‘High Risk ’ Funds f or Agri-Ventures

Beyond FCC’s Public Policy Risk Prof ile via VC

Relationships

Opt imize Productivit y Through Cont inuous

Process Improvement , (Channels & Partnering)

Opt imize Productivity Through Cont inuous

Process Improvement , (Channels & Partnering)

Celebrate ‘Small’

Innovations

Celebrate ‘Small’

Innovations

Create Centers of Expert ise for

Creative Solut ions

Create Centers of Expert ise for

Creative Solut ions

Improve Operat ing Eff iciency

Provide Rapid Response

Minimize Problems

Develop New Products & Serv ices

Cross-sell the Product Line

Mine Strategic Customer

Information

Mine Strategic Cust omer

Information

Implement COE Program Process

Build Partner / Alliance Systems Infrastructure &

Applicat ions

Build Partner / Alliance Systems Infrastructure &

Applicat ions

Integrate Solutions Offerings via Best

Practices ‘WorkBench’

Integrate Solutions Offer ings v ia Best

Practices ‘WorkBench’

Understand Who to Talk t o and What to Say

Understand Who to Talk to and What t o Say

Build Industry & Competitor

Knowledge Base

Build Industry & Competitor

Knowledge Base

Develop & Groom FCC Ambassador(s)

Build Risk Management

Expert ise

Build Risk Management

Expert ise Understand Community

Needs

Understand Community

Needs

Develop Community

Listening Posts & Knowledge

Base

Develop Community

Listening Posts & K nowledge

Base

Leadership

Offer Targeted Products (includes

pricing)

Offer Targeted Products (includes

pric ing)

Adjust Processes to Foster

Discussion and New Thinking

Adjust Processes to Foster

Discussion and New Thinking

Introduce Products for Addit ional Segments

Introduce Products for Addit ional Segments Proact ively Manage

Indust ry and Media Relations /

Communications

Proact ively Manage Indust ry and Media

Relations / Communications

Grow Awareness of FCC Brand

With All Publics

Grow Awareness of FCC Brand

With All Publics

VISIBILITY LEVERA GE R ES OU RCES

(Optimize Ops)?

Develop St rong Financial Thinking Skills

in Staff (KM & LD)

Develop St rong Financial Thinking Skills

in Staff (KM & LD)

Enhance port folio dat a info

management capabilities

Enhance port folio data info

management capabilities

Leverage Human Capital?

Implement Customer Relationship

Management?

Implement Customer Relationship

Management?

Implement CRM

Processes

Implement CRM

Processes

Create New Markets

Alliances & Partnering

Alliances & Part nering

Build Risk Management

Database

Build Risk Management

Database

Ensure Customers

Perceive V alue in The Relationship

Ensure Customers

Perceive V alue in The Relationship

Att ract & Retain Agri-Content

Expert ise

Att ract & Retain Agri-Content

Expert ise

D l L d hi Skill t All L l fM t Enhance Bench St rength & Succession PlanningSuccessful

Strategy Execution

Successful Strategy

Execution

The First Step was Value-Add of a Centralized PMO Function…

Project 1

Project 2Project N

Project 4

Coordination

Oversight

Tracking & Monitoring

Reporting

Project 3

Resource pool Deliverables

Deliverables

Next…Design of a Two Phase PPM Process for Immediate Implementation

Capacity Planning & Activation

Project Registered

List & Process

Strategy Statements &

Measures

We are tracking as planned at this point. FCC’s internal team is now moving towards the design and implementation of the individual project management methodology, activation and capacity planning processes (including a master project plan), and project reporting templates. PMC is learning to manage the registered list and deal with new project requests. PPM is also being seamlessly integrated into the current IPP and FMCR processes (where appropriate)

WHAT IS THE BIG DEAL? Balance!!

•5. Project E ••2. Project D

••••1. Project C •4. Project B

••3. Project A

PeopleServiceCustomerFinancialRegistered Project List (Risk/Reward)

Taking a “balanced” (across all four perspectives of the balanced scorecard) and also “on-strategy” view (risk/reward trade-off’s) into account when setting project priorities and making project activation decisions improves outcomes and enhances strategic results.

Strategy Formulation

Goals & Measures (Balanced Scorecard/

Strategic Plan)

Project Portfolio Management

Process

Capacity & Capability Planning

Financial Management Disciplines

Project Management Methodology

HOW PROJECT PORTFOLIO MANAGMENT

FITS at FCC

“Middle ware” between the integrated planning process and project management process(es)

Aligned with capacity/capability planning and financial management disciplines

Concept

Plan

Execute

Managing Project Portfolio Risk

STAGE 1: PROJECT SUBMISSION

“Doing projects that provide the greatest strategic value to FCC”

PROJECT PORTFOLIO MANAGEMENT Strategic Fit

ProjectProject

Alignment

Making sure your projects are on the “radar screen”

MAJOR PROCESS ‘PAY-OFFS’ • Enhance strategy execution (more complete

information available for decision making) • Increase probability of attaining the resources

required to complete a project successfully • Reduce project duration • Implement leading-edge “best practices” in

project portfolio management and project management

• Balance portfolio of projects • Reduce project risk through strategic alignment

and integration

STAGE 2: PROJECT SCREENING

“Screening out projects that are not strategically aligned”

PROJECT SCREENING

• Alignment with FCC’s Vision, Mission and Values

• Linkage to the strategic outcomes in the balanced scorecard: – Very Direct – Direct – Indirect – Weak

PROJECT SCREENING

LEGEND Degree of

contribution to measures in

strategy statements PROJECT

PEOPLE People Index,

Innovation Index, Learning Index

CUSTOMER Customer Loyalty Index, Loan Portfolio, Venture

Captial, Management Practices

SERVICE Customer Experience

Index, Service Provision

Index/Efficiency Ratio

FINANCIAL Return on Equity, Debt-to-

equity Ratio, Efficiency Ratio Total

Very Direct 25 Direct 12 Project A 25 2 27 Indirect 5 Weak 2 Project B 5 12 2 25 44

Project C 12 2 25 39

Project D 25 25

Project E 12 5 17

Project F 2 2

Project G 25 25

Project H 5 5

STAGE 3: PROJECT PRIORITIZAITON

PRIORITIZATION MATRIX

Strategy + Return - Risk = Priority Result (from screening)

With a BALANCED view across all quadrants of the balanced scorecard

PRIORITIZATION MATRIX - RETURN Project Return

Project A 30

Project B 30

Project C 23

Project D 6

Project E 22

Project F 6

Project G 6

Project H 12

>= $251K 5 <= 1 year 5 Augments

Current 5 <= 6 5 <= 6 months 5 <= $250K 5 > $0 and <=

$250K 3 > 1year and <=

2years 3 Protects Existing 3 >7 and <= 18 3

>7 and <= 24 months 3

>= $251K and <= $1M 3

<= $0 1 > 2 years 1 None 1 > 19 1 > 25 months 1 > $1M 1

Unique Competitive Advantage

Unique Competitive

1 1

111

Project Budget (cost)

Project Duration Project Budget (cost)

Project Duration Effort Months (FTE Time x

Duration)

Payback Period

Effort Months (FTE Time x

5 Year NPV Payback Period

5 Year NPV

PRIORITIZATION MATRIX - RISK

Project Risk

Project A (37)

Project B (9)

Project C (17)

Project D (45)

Project E (37)

Project F (45)

Project G (11)

Project H (37)

26-45% (5) >5 (5) >15 (5)

Scarcity outside

FCC (5) >one (5)

involves new

systems (5) >2 Projects (5)

Very Unique - Never been done before (5)

Impacts 2 Core or

Enabling Processes (5)

16-25% (3) >1 <=4 (3) >4 <=15 (3) Scarcity

within FCC (3) one (3)

involves major

changes to existing (3) 2 Projects (3)

Some aspects have never been done (3)

Impacts 1 or 2 Core or

Enabling Processes (3)

5-15% (1) 1 (1) <=3 (1) No Scarcity (1) none (1)

involves existing systems (1) 1 Project (1)

Similar to other FCC projects (1)

Impacts 0 or 1 Core or

Enabling (1)

Scarcity of Key Person(s)

(1)

(5)

(1)

(3)

(1)

(3)(3)

(3) (1)

(5)(5)

(5) (5)

(1)(1)

(5)(5) (5)(5)

(3)

(1)

(5)

(1) (1)

(5)

Technology

(5)

Technology Organizational Impact

(3)

(1) (1)

(5)

(3)

(5)(5)

(1)

(5)

(1)

Organizational Impact

(5)

Inter- Dependencies

Uniqueness

(5)

(1)

(5)(1) (1)

Estimate Uncertainty

Inter- Dependencies

(5)

(1)(1)

(1)

(5)

Estimating Uncertainty

(1)

External Business Partners involved

(1)

(3)

(5)

(5)(5)

External Business Partners involved

# of People Involved

(3)

(5)

(1)

# of People Involved

(5)

(1)

Uniqueness

# of Business Units Involved

(5)

(1)

(5)

STAGE 4: PROJECT REGISTRATION

“Is the project official?”

REGISTERED PROJECT LIST

STAGE 5: PROJECT ACTIVATION

“Do you have authority to spend?”

PROJECT ACTIVATION

• Project activation request and intial project plan to support the approval and allocation of resources to a project

• Links each project to: – the master project schedule – specific project resources (internal or

external) – project budget – project expense tracker

STAGE 6: PROJECT EXECUTION & COMPLETION

“Execute, monitor, measure and communicate results. Document lessons learned.”