Annual Planning: From Miracle to Methodology Jon Hughes jhughes@umt.com 571-238-6565

1. Annual Planning: From Miracle to Methodology Jon Hughes jhughes@umt.com 571-238-6565 PMI Fairview Park Luncheon Series March 14, 2013

2. UMT – Overview With over 25 years of experience PPM Experts ‘Visionary’ in Integrated IT Portfolio Analysis Applications (IIPA 2013 MQ) ‘Cool Vendor’ in Gartner’s Cool Vendor Report 2012 ‘Winner of Microsoft Partner of the Year’ Gartner MQ Download: http://www.umt.com/en-us/community/pressreleases.aspx

3. UMT – Solutions/Services • CPIC & IT Governance • Pre-Select, Select, Control Evaluate • Comprehensive EPM • Resource / Demand Management • APM & PMO • PM Training • Innovation Process Management / New Product Development • Comprehensive EPM • Capacity Planning / Resource Management • PM CoE / CoP • Program / Corporate PMO • Project / Program Management • Budget Formulation & Execution • Reporting and Dashboard • Resource Management • PMO Services • Process Improvement Initiatives • Portfolio Selection and Management • Project / Program Management • Resource Management • UFR Prioritization • PM Training Solutions • UMT Services • Enterprise Project and Portfolio Management • Enterprise Application Portfolio Management and Analytics • Project and Portfolio Financial Management Consulting • New Product Development (NPD) Portfolio Management • Program Management Office (PMO) • UMT Product Offerings • UMT 360: • Financials • Portfolios • UMT Training Institute • Microsoft Project and Project Management Training • Microsoft Portfolio Server Training • Project and Portfolio Management Training Offerings

4. Getting to know you… by a show of hands How many of you are Public Sector (aka Government) employees? How many of you are Private Sector Employees? How many of you are Private Sector Employees that work for Government Customers (aka Contractors)? How many of you support the Annual Planning (aka CPIC) process?

5. Annual Planning Process (aka CPIC) • Capital Planning and Investment Control - OMB Definition:A process to structure budget formulation and execution, and to ensure that investments consistently support the strategic goals of the [organization]. [OMB] * http://www.whitehouse.gov/sites/default/files/omb/memoranda/2013/m-13-14.pdf

6. Pre-Select • Select • Control • Evaluate Core CPIC Disciplines & Capabilities • Initiate • Plan • Execute • Control • Close Business Needs Portfolio Selection Portfolio Tracking & Status Operational Analysis Portfolio Reporting Portfolio Management Resource Capacity Planning Resource Planning & Tracking Operational Analysis Budget Formulation Budget Execution Benefits Planning Benefits Realization Resource Management Operational Analysis Financial Management Project Scheduling Project Tracking, & Status Project Management Operational Analysis Team Collaboration, Cooperation and Communication

7. Quick Pollby a show of hands I would say that the solutions my <organization> has in place for enabling the management of the CPIC processes are: Easy to use Easy to use but not automated Requiring me to do a lot of duplicative effort and data entry Not easy to use and difficult to understand Downright cumbersome and disjointed Non-existent

8. Pre-Select • Select • Control • Evaluate The Miracle of CPIC … • Initiate • Plan • Execute • Control • Close Repeat Monthly or Quarterly Miracle 1 Government Schedule Miracle Games Prioritization Business Need $ Review Miracle Miracle Ranking Contractor Schedule Distribution # Creative Writing Miracle Hatchet n Reconciliation & Tracking Analysts, PMs, & Executives CO, PMs, CPIC Lead, Contractors Business or Operations team Advisory & Executive Teams Update eCPIC & IT Dashboard • Incomplete Investment Inventory • Difficulty in Rolling Up Data • Duplicate Data Entry • Data Integrity Issues • Ineffective Reporting • Versioning & Audit Challenges • Incomplete Business Cases • Wasted Time Chasing Old Data

9. Pre-Select • Select • Control • Evaluate Integrated CPIC Solution • Initiate • Plan • Execute • Control • Close Repeat Monthly or Quarterly (as Needed) Standardized Business Case Capture Consistent Investment Ranking Criteria Portfolio Level What-If Analysis Cost, Schedule & Perf. On Demand Reporting & Operational Analysis IMS Enterprise Governing Workflow Strategic Alignment Score Budget Formulation Risk, Issue, Decision, Action Item Collaboration Visibility, Insight & Control Analysts, PMs, & Executives CO, PMs, CPIC Lead, Contractors Business or Operations team Advisory & Executive Teams Update eCPIC & IT Dashboards • Centralized Data Store • Integrated Governance Workflow • Standardized Ranking Criteria • Portfolio Optimization Engine • Detailed Budget Capture • Enhanced Collaboration • Visibility of Actuals/Forecast • On Demand Reporting

10. Solution Walkthrough Areas of Focus • Information Architecture • Concept Definition • Business Case Build Out • Rollup/Drill Down Capability • Portfolio Selection & What If Analysis

11. Business Needs Flexibility Targeted Content:Centralized reminders and tasks Ease of Use:Simple to use familiar SharePoint interface

12. Information Accessibility Visibility:Single click access to a list of your organizations data

13. Enterprise Types Governance 1 Collaboration 2 Standardization 3

14. Enterprise Process Types Configurability:Set up the solution to collect data in standard formats

15. Investment Overview Investment with related metadata and governance workflow

16. Investment Metadata Examples

17. Investment Relationships One picture of an Investment and all components from inception to close out

18. Program/Project Process & Data

19. Portfolio Analytics Establish a repeatable process for what-if analysis … start with a name and some constraints

20. Reviewing the Rankings Investment Review Boards can review the portfolio scoring against business drivers in one place Provides sanity check on scoring criteria and the scoring itself

21. Prioritize Project List 1 n Governed processes suggest the prioritize list of investments, objectively

22. Baseline Scenario Constraint : 38M Project Count : 13 Strategic Value : 100%

23. ~10% Cut from 38M to 34M What If Scenario Planning Constraint : 34M Project Count : 11 Strategic Value : 88.68%

24. ~20% Cut from 38M to 30M Optimization of the Portfolio occurs here as we move two items in and move one larger item out of the portfolio. Constraint : 30M Project Count : 12 Strategic Value : 82.56%

25. ~20% Cut with Force In Constraint : 30M Project Count : 9 Strategic Value : 78.68% Force In: FHA Transformation As we force items in the portfolio things have to drop out to make room.

26. Scenario Comparison Report A single view to present and review all the portfolio scenarios at one time.

27. Formulation Using Selected Portfolio More granular reporting of Budget request Visibility in to where the money is going

28. Solution Walkthrough Areas of Focus • Information Architecture • Concept Definition • Business Case Build Out • Rollup/Drill Down Capability • Portfolio Selection & What If Analysis

29. Pre-Select • Select • Control • Evaluate Tips for More Successful Annual Planning • Centralize Your Data • Establish a Governance Process • Harmonize Ranking Criteria • Automate What You Can to Promote a Repeatable Process • Financials Matter So Push for More Detail & Better Estimates • Promote Collaboration & Reward Transparency • Initiate • Plan • Execute • Control • Close Standardized Business Case Capture Consistent Investment Ranking Criteria Portfolio Level What-If Analysis Cost, Schedule & Perf. On Demand Reporting & Operational Analysis IMS Enterprise Governing Workflow Strategic Alignment Score Budget Formulation Risk, Issue, Decision, Action Collaboration Visibility, Insight & Control

30. Thank You! – Q&A http://pages.umt.com/FedEPPM (First Come First Serve, Limited Space & PDUs Are Available)