Doing More with Less: Effective and Efficient Programme & Project Management

1. Doing More with Less: Effective and Efficient Programme & Project Management Jonathan Ward 26th September 2006

2. Agenda • An introduction to the Severn and Nextret Clarity capabilities • Where are we now? • What does effectiveness mean for us? • How do we execute more efficiently? • Q&A

3. Introduction to Severn Severn Group plc is recognised internationally as being a results-oriented management consulting firm delivering Business Change; Project; and Programme Management within Financial Services and Retail Industry sectors and in Local Government and other Public Sector organisations.

4. Stockholm Milton Keynes London Luxembourg Frankfurt Zurich/Geneva Tokyo New York Columbus Port Harcourt Warri Severn’s Background and History • Severn was founded in 1988 with a focus • Deliver projects to fulfil corporate strategy • Add value - Deliver results not reports • We have completed in excess of 100 major projects delivering significant improvements • +70% level of repeat business — demonstrable client satisfaction • Alliance with companies in London, Barcelona, Paris and Frankfurt • CA Enterprise Solution Provider • We currently have more than 100 consultants • Turnover in excess of €15.2 million

5. Experience gained from leading organisations

6. An accredited provider of services and support A creditable track record of implementations Our Implementation Process is subject to our ISO 9001:2000 accreditation We have the largest number of certified Clarity Consultants in Europe We provide hosting and a 24hr a day 5 days per week service desk to help and support end users

7. Doing more with less Efficient and Effective Business Change

8. Effectiveness and Efficiency Defined……….. • “Even the healthiest business, the business with the greatest effectiveness, can well die of poor efficiency. But even the most efficient business cannot survive, let alone succeed, if it is efficient in doing the wrong things, that is, if it lacks effectiveness. • “Effectiveness is the foundation of success - efficiency is a minimum condition for survival after success has been achieved. Efficiency is concerned with doing things right. Effectiveness is doing the right things.” • Source: Peter Drucker, Management: Tasks, Responsibilities, Practices (New York, 1973)

9. Agenda • Where are we now? • What does effectiveness mean for us? • How do we execute more efficiently? • Q&A

10. Project Management Effectiveness and Efficiency in Action… • In a single UK Government Department, 225 projects in-flight/planned; 60% had no business case • “The project was two years late and three years in development. We delivered an application the user didn’t need. They had stopped selling the product over a year before.” • 33% of investment in IT projects is written off before completion • “We have 500 projects. None are on-time and on-budget. This year 40% will get cancelled.” • In a study of UK projects, 38% overran costs by >50%, 24% overran schedule by >50% Sources: The Standish Group, Mantix, Forrester Research

11. Why is the Problem So Acute Now? • Current economic climate is that budgets are constrained but the desire for improvement is high • Financial Services looking for new products, cross border consolidations, cost reduction and increased regulation • Retail sector looks increasingly problematic • Huge backlog of technology change requirements • Markets are changing in all sectors and this required efficient business change • Recent trends are that business managers are more sophisticated in their investment decisions and less tolerant of the “invisible projects” or investment strategy by “stealth”

12. Agenda • Where are we now? • What does effectiveness mean for us? • How do we execute more efficiently? • Q&A

13. Effectiveness Doing things right Efficiency Doing the right things Change Drivers Solution Delivery External Strategy Management Change Management Execution Management Internal Project Management Programme Management The Context for Efficiency and Effectiveness Benefits Management Portfolio Management Business Case Management An organisation committed to the EFFICIENT use of its strategic investment and EFFECTIVE management of its Project Portfolio will have these elements in place

14. Acid Tests for Effectiveness • Are there explicit links between all project activity and the company’s objectives? • Are project business cases “live documents” for all project initiatives? • Is there a managed process to ensure tangible delivery of benefits?

16. Visualize tradeoffs and select optimal investments with scenario generating and planning Quickly determine portfolio status and easily customize investment criteria Portfolio ManagerEffective Decision-Making at a Single Glance

17. Agenda • Where are we now? • What does effectiveness mean for us? • How do we execute more efficiently? • Q&A

18. Empower the PMO • Automate, enforce, and report on process compliance • World-Class Project Execution • Leverage best practices acrossentire project portfolio • Comprehensive Resource Management • Drive maximum utilization of in-houseand outsourced resources • Scalable, Transparent Status Capture • Capture time and cost of all activities in asingle repository for charge-backs and reporting How to Improve Effectiveness?

19. Analyse Design Develop Test Install Managing via “Gates” • Approach developed for internal use by IBM in the 1980s • Indicates critical “Go/No Go” management checkpoints • Is the project viable? • Is the project a priority? • Can funding be obtained for the next stage? • Identifies entry and exit criteria between each phase • Minimum deliverables • Intra-organisational hand-offs • Structured checklists to “manage the gaps” • Facilitates “sane” financial management

20. Use pre-defined methodology or create from scratch Create and manage tasks and resources in the browser, in Open Workbench, or in MS Project Manage budgets, forecast, and actuals and view real-time project ROI View stoplights for project risk, status, and schedule Project ManagerEffectively Deliver On-Time, On-Budget, On-Quality

21. 5. Optimized 4. Managed 3. Defined 2. Repeatable 1. Initial A Model for Project Efficiency - CMMI Quantitative feedback from the process is used for continuous improvement Detailed quantitative measures collected and controlled. Standardized, documented and integrated processes in place. Basic management processes in place. Projects draw on documented previous experience. Ad hoc, based on individual and team “heroics”

22. Develop and deploy templates… … processes … and content Process ManagerMethodologies for Best Practice Execution

23. Probability of Selected Outcomes Cancel Delays On Time Early Initial Manual Estimates Manual Plans Informal Tracking Minimal Quality Control 40% 45% 15% 0% Probability of Selected Outcomes Cancel Delays On Time Early Automated Estimates Automated Plans Formal Tracking Optimal Quality Control 1% 2% 78% 19% Optimized The Opposite Ends of the Effectiveness Scale

24. Fundamentals Organisation Estimating & Planning Risk Management • Business Case • Prioritisation • Approval • Sponsorship • Business Risk • Project Risk • Fallback scenarios • Project Structure • Roles • Resources • Communication • Time • Costs • Dependencies • Project Content • Requirements • Sub-projects • Change Control • Status Reports • Progress Control • Cost Control • Success Criteria • Config. Mgt • Problem-Mgmt. • QM-Measures • Acceptance • Test Strategies • Migration • Support Scope Control Quality & Control Reporting Implementation Frameworks

25. Optimizing - Quantitative Management • “You cannot manage what you cannot measure” (Deming) • “What I need is to get visibility so I can put things right before they become incorrectably wrong” • Project Reporting Metrics should include • Cost • Schedule and Time • Delivery against Milestones • Quality and Defects • Risks and Issues • Change and Stability • Quantitative management requires significant investment in tools and technology to gather data and organisational ability to transform data into information

26. <1% 9 mths 8 mths 4-year cycle <10% 12 mths 19 mths Improving Effectiveness the CMMI Roadmap 5. Optimized 4. Managed 3. Defined Likely Failure Rates 2. Repeatable 1. Initial >50%

27. In Summary • Effectiveness and Efficiency are critical to project performance success • We tend as IT professionals to be happier in the “Efficiency” space • But without Effectiveness we are wasting our time and the organisation’s money Effectiveness = Business Linkage, Prioritization and Benefits Management Efficiency = What are your people doing now and what are they going to be doing? GET EFFECTIVENESS RIGHT FIRST!

28. Q&A • Questions or comments?

29. Contact Severn Group plc Jonathan Ward Bucklersbury House 3 Queen Victoria Street London EC4N 8EL UK Tel: +44 207 653 0600 Fax: +44 207 653 0601 Internet: www.severngroup.com Email: jward@Severngroup.com