Resource Management?

1. Resource Management? “I’ve got Excel and half a day a week thank you very much. What do I need to know?” Presented by David Dunning, Director, Corporate Project Solutions

2. Corporate Project Solutions • People P3O® Services • Creation, Support & Delivery Recruitment • Permanent • Interim positions Training • Planning • Process based • Microsoft Project • EPM Administration • Process Change Management P3RM Consulting • Technology Microsoft Platforms • Project Server • Project Portfolio Server • MOSS / SharePoint • CPS Solutions

3. Agenda • Progressing • (Ongoing) Portfolio Management • An example of why this is difficult • A Definition • Challenges • Organisational • Operational • Prioritisation – BAU and Projects • Plan and Plan Structure • Key Players to Engage • Where does the answer lie?

4. What is Resource Management? “In organizational studies, resource management is the efficient and effective deployment for an organization's resources when they are needed” http://en.wikipedia.org/wiki/Resource_management

5. Organisational Issues – Functional Structure Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]

6. Organisational Issues – Divisional Structure Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]

7. Organisational Issues – Matrix Structure Mubeena (2010) Organisation Design and Structure [online] Available at: http://www.slideshare.net/mubeena/org-design [Accessed 14 April 2010]

8. Operational Issues • Skill pool management • What competencies do we have? • Who has them? • What do we need (now / soon / eventually), and how do we fill the gaps? • Availability management • Holidays / absence • Training / Professional Development • Organisation operation (admin)

9. Prioritisation • Big projects, medium projects, small projects? • Low priority <> No priority? • Business Case, Benefits Management

10. 10 3 2 15 Allocating effort between BAU and Change Example – LOB “A” - HR Needs 15 people to carry out HR duties Corporate Direction - Is tasked with expanding capability (3 people), and implementing processes from new legislation (2 people) Has internal 5 projects which need 10 Holidays, training, absence How do we prioritise? What is required to fulfil line responsibilities? How we prioritise between local and corporate changes? Cut services, say no to the Corporate workload, do less internal projects, or abolish holiday?

11. Pipeline Management • Pipeline Review - Options, possibilities, probabilities, make or buy? • Effort estimation and likelihood? • Headcount, then generic, then people? • Risk and contingency?

12. Plan and Plan Structure • Assuming plans… (But we love Excel…) • Estimating – are we any good? • Stages / Gates / Cross Project dependencies? 3 1 2

13. Progressing • Time accounting – is it accurate / are people spending the right time on the right things? • Achievement and remaining work • Oh dear, I’ve created an overload? • Cross Project Dependency issue? • Issue handling • Adverse event • Change request

14. A simple yet messy example Project Plan? My Plan IT Task Project and line manager schedule in a task Department Spreadsheet? Ongoing IT BAU Tasks IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task

15. Something comes up…. My Plan IT Task IT Task Project and line manager have to communicate. OK in this simple scenario Ongoing IT BAU Tasks IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task

16. Knock on effects…. My Plan IT Task Another Plan What if there is another Project? IT Task IT Task Ongoing IT BAU Tasks IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task This comes back around to the Line Manager?

17. Utilisation issues… My Plan IT Task Another Plan IT Task Ongoing IT BAU Tasks IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task Too late to use this availability hole?

18. Iceberg... My Plan What about this line manager? IT Task Another Plan IT Task Ongoing IT BAU Tasks IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task IT Task

19. Conclusion Coordination of this is not simple. If all this information was in one place, the immediate impacts could be seen avoided, or dealt with without having to update numerous plans and spreadsheets to keep on top of things.

20. Portfolio Management (PfM) The Bigger Picture

21. Why is Portfolio ManagementImportant? “It is shocking that some organisations continue to waste effort and resources by delivering the wrong projects and programmes” - Portfolio Management Guide, Final Public Consultation Draft

22. Portfolio Management enables organisations to identify and select the investments that will maximise business value – RIGHT THINGS Portfolio Management 100% Prog. / Project Mgt. Programme and Project Management enables organizations to successfully deliver the selected business value opportunities - THINGS RIGHT 60% Value Realised (average company today?) 100% 0% Value Lost Ability to Identify Business Value Potential (Portfolio Management) Ability to Deliver and Realise Business Benefits (Programme / Project Management)

23. Ongoing Portfolio Management Is the balance of projects right? What if we didn’t do, what if we did do? Ongoing Business case viability – hold or kill? Learning, Bettering our estimating

24. Problems if not done well • Wasted resources, slippage and overrun. Operational disruption? • Wasted management effort on ‘politicing’, as there is no clarity of direction • Excessive resource issue resolution time • De - motivated people, recruitment / retention issues?

25. Key Players Is the structure right? What is our pipeline? Prioritisation? Are we operating correctly? Competencies mapped? Skill transformation? Are we planning? Priority Balance? Actuals? CXO / Portfolio Managers Line Managers Project / Programme Managers Resources Am I in a pipeline? Plan structure? Resource Allocation? Control Cycles operating? Is my role clear? Am I developing? Absence booking? Can I do this work? Am I recording time?

26. What first? • “Hot topics”? • Resource Management • Portfolio Management • Earned Value • Collaboration • Estimating… • These topics are not really an end in themselves, they are aspects of a solution which perhaps define the sequence in which the solution components “are best” (?) provided.

27. Where does the answer lie? People Organisation Process Technology Strategy

28. EPM Solutions

29. Suggested definitions Resource Planning – creating a model of resource demand, maintaining it, reporting off it. Resource Management – using the model of resource demand in the context of emerging requirements, priority, progress and capability in order to carry out planned work.

30. Resource Workstreams Resource Management Consolidated Resource Management Initiated Resource Planning Initiated Skill Pool maintenance Skill Pool creation, clean up Availability maintenance Availability creation, clean up Portfolio Review Process Pipeline Process Prioritisation Model Revised Processes / Plan Structure Allocation guidelines Extend new / existing plans Resource Allocation guidelines Plan structure guidelines Clean up existing plans Update Process II Update Process I Organisation Structure Review

31. Senior Management Commitment • To start with: • Senior Management Board (SMB) member owns the “change” • Needs current situation capture – alignment on objectives / changes which support objectives • Process, roles and responsibilities understood • Agree to resource P3O office • Ongoing: • SMB categorises and prioritises – with decision support • Portfolio Dashboard reporting – progress, issues, risks, dependencies, costs • Collaboratively work in SMB, P3O, projects, programmes. • Governance is part of the day job, not an overhead

32. Conclusions • Organisation Structure is a limiting factor • Pipeline management will define how effective any other measures to manage resource will be • BAU and Projects need balancing • Planning ideally needs common consistent tools on a database • Capabilities, Support roles and Controls need to be sorted • Implementation is a change programme – simple first step to the richest process • Engage the right stakeholders at the right levels • Treat symptoms – but deal with the underlying problem too

33. Thank you for listening David.Dunning@CPS.co.uk 01628 895600 Seminars www.cps.co.uk/events