Project Prioritization Business Case

1. Project Prioritization Business Case Best Practices to get a strong buy-in from stakeholders

2. About Today’s Webinar Today’s webinar is intended to help you present the business case for project prioritization. We’ve given you lots of ways of telling the story, so you can pick and choose those that apply to you. In fact, we expect you to only use the parts of this deck that are most valuable in your environment. We’d recommend focusing on telling the story using your own organization’s challenges and opportunities.

3. Making your case Putting in place strong project prioritization allows you to: • Understand which projects are worth investing in • Get a strong buy-in from the stakeholders • Get past the ‘he who shouts the loudest’ phenomena • Kill the pet and obsolete projects More than anything else it brings the stakeholders and everyone else involved in the team together on one platform. This way everyone understands their responsibilities clearly and coherently contribute to the success of the overall project portfolio. Raison d'etre! Let’s get started….

4. This guide will show you how to deliver more successful projects using project prioritization.

5. Prioritization Increases Value Take a look at your current portfolio of projects. Flag the projects which are succeeding and failing, but many organizations have only a weak idea of which projects really are strategic. This means that portfolios are driven more by politics and “flavour of the month” as by rational decision-making. This tends to lead to portfolios with too many projects… and with the wrong projects. Current Portfolio: • Has projects in all boxes • Has too many projects for the resources available (increases project failure) Successful Invest De-prioritize Kill Support Failing Low value/ non-aligned High value/ strategically aligned

6. If culturally appropriate, put data/names/values in Projects consuming resources, but not strategically aligned. Good project @risk due to “saturation” Successful Proj. E Proj. A Proj. F Take the projects you are working on and put real project names in here. You will get clarity where each project stands. Proj. C Proj. B Proj. D Failing Low value/ non-aligned High value/ strategically aligned

7. If culturally appropriate, put data/names/values in Value of projects in Low value / non-aligned column: Successful Proj. E Proj. A Proj. F INSERT YOUR NUMBERS. Use this year’s projects, or a previous year. The goal is to show that resources are not being used efficiently. Proj. C Proj. B Proj. D Failing Low value/ non-aligned High value/ strategically aligned Worksheet 1

8. There is nothing so useless as doing efficiently that which should not be done at all. - Peter Drucker

10. Best Practice We use/expect best practice in areas like: • Accounting • Manufacturing • Safety • Customer Service • Quality control So, why neglect the most important piece in project management? Let’s adopt best practice for project prioritization.

11. Fiduciary Responsibility and Project Prioritization The portfolio represents an investment of $$ X • We have fiduciary responsibility to use best practice to make investments. • Only 2 methodologies for prioritization are “valid”*. • We propose to use one of those, AHP. • Anything else is “just made up” and that would not be acceptable when preparing annual accounts -- why should it be acceptable when planning investments? • TransparentChoice – Best practice based on 40 years decision science • - TransparentChoice + Accountable • Value based prioritization • Combines hard and soft benefits *A systematic comparison of multi-criteria decision making methods for the improvement of project portfolio management in complex organisations -- Danesh, Ryan and Abbasi

12. Research • Over 100 methodologies studied • 2 were identified as being the “best” AHP and DEA TransparentChoice uses a modified version of AHP that directly addresses the “concerns” that Danesh, Ryan and Abbasi voice making it a very robust solution! This page is a back-up page to give you the info to confidently present the previous slide.

13. Collaboration Quicker Decisions Better cross-stakeholder support Less politics Better communication of strategy + project context Structured Process

14. How does it work? Execs use AHP to define goals and priorities The Perfect Portfolio! Reporting and Analysis Streamlined process to consistently collect and assess ideas/projects

15. The TransparentChoice difference TransparentChoice delivers the insight that executives need to make better project portfolio selection decisions. Unlike most other portfolio selection tools (e.g. those embedded in PPM tools), TransparentChoice is based on 40 years of decision science research. This means executives get the information they actually need to make good decisions. TransparentChoice delivers a whole suite of tools to help you make better decisions. Despite the breadth of capabilities, our focus is on building software that people find easy and fun to use. This means that you can get results quickly and without having to rely on heavy and expensive consulting services to get you up and running. Cost is another important factor. By delivering great software that our customers can use without professional services, we reduce our costs. That means we can offer TransparentChoice at a lower cost to you, our customers – enjoy! Sample customers of TransparentChoice

16. Let’s see how project prioritization saves you money by Streamlining PMO process Reducing waste in failing projects Re-allocating resources from non-aligned projects Insert Saving Insert Saving Insert Saving

17. You need further assurance that Project Prioritization works? “In my opinion, all of the project failures start at project prioritization. Everybody is so focused on delivery these days that the project prioritization process is not given enough time. I’d like to see some time spent planning and prioritizing so that we get it right in the beginning.” Amanda Oakenfull Director Deloitte Australia

18. Streamline PMO process Collect project requests online Document and have ‘experts’ evaluate the projects Always have up-to-date data Est. Saving

19. Reduce project failure

20. Case Study - Energinet Danish power-grid - 5m customers - $1.6bn revenue - 20m Euro Portfolio CHALLENGE - All projects “top priority” - High failure rate - 30% obsolete - Difficulty allocating resources day-to-day • Political process RESULTS - Eliminated 30% obsolete projects - Every project aligned - Clear priorities, allocation of resources €6+ million saving

21. Summary Increase in value from better alignment Increased value / project success Direct admin savings in the PMO $ X $ Y $ Z $ A Cost: $A

22. What is the Direct Value to the Execs? • Explicit agreement on Goals and Priorities • Clear commitment to plan of action • Faster, less political decisions • Clear language to communicate and coordinate portfolio • Clear data-driven decisions • Real-time analysis of scenarios • Collaboration of distributed teams

24. NOTE: Selecting portfolios is an INVESTMENT decision and, like all investment decisions, there is a responsibility to act with due care. This fiduciary responsibility should be supported by a research-proven methodology, not by some made-up process.

25. The voice of experience Roberto Camanho has used all the major project prioritization tools including and now he’s a user of TransparentChoice. “These days I only use TransparentChoice for this kind of decision. Their software makes my clients feel very comfortable as they start to use a methodology for decision making. Roberto teaches decision making at Brazil’s leading business school (ESPM). He has consulted with companies like Embraer, Whirpool, McDonalds and Banco do Brazil. The experience for the decision stakeholders is nothing short of magical. They can join online meetings simply by clicking on a web-link and then they participate in real-time, highly collaborative meetings that inevitably lead to deeper strategic insight. With over 20 years of experience working with AHP-based project prioritization, Roberto is an award-winning academic, a regular speaker at project management conferences and a go-to analyst for the Brazilian media on questions of politics, the economy and decision-making. The software provides, in a friendly interface, all the tools you need to select a value-added portfolio of projects. Not only do I find TransparentChoice’s software great to use, it’s also easier to set up. This means I can use it in more situations, helping deliver more value across the organization. The icing on the cake? The team is passionate, committed, friendly, supportive and smart. They listen to customers and work quickly to improve the product based on feedback… I guess that’s one of the reasons that it’s so good!” Roberto has worked with TransparentChocie at Kimbriki (Australia), The NSW Rural Fire Service ( Australia), Urban Mobility/World Bank (Brazil), Univeristy of Indianna (USA), Suzano Paper and Pulp (Brazil).

26. ADDITIONAL RESOURCES 2-minute TransparentChoice overview This page contains links to useful resources. Our online service is governed by our terms of service. You can find them here. To learn more about security of our online service, download this document. This webinar will give you an idea of why the project prioritization meeting is the most important meeting of the year for any PMO. To access our support centre, click here. To listen to Amanda Oakenfull of Deloitte in Australia talk about the importance of project prioritization to project success rates, click here. 15-minute TransparentChoice demonstration

27. Additional tools Insert your examples here Worksheet 2

28. 10 things that could happen list Write down 10 things or situations that could go wrong when you don’t prioritize projects? Repeat the exercise for 10 positive outcomes as a result of Project Prioritization. Worksheet 3 Source: HBR – improvised it for Project Prioritization