5 steps to optimize capacity for digital transformation
TRANSCRIPT
: Creating : IT Capacity
To Transform Business
5 Steps to Optimize Capacity for Digital Transformation
Based on the 2016 Resource Management and Capacity Planning Benchmark Study
Maureen Carlson, Study Chief Researcher, Appleseed Partners Jerry Manas, Senior Research Analyst, Planview '
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The BIG Picture
What companies need to solve for right now ....
'To have the capacity (people) to improve customer experience and meet growth objectives'
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Demographics
Job Level
Number of !Employees Worldwide
Annual Worldwide Revenues
Industry
1% 2%
Breakdown by Region
(n=408)
• United States or Canada
Europe/ Middlle East/ Africa
Asia Pacific ind. Australia and New Zealand
Other
Today's presentation is focused on 167 IT and IT PMO leaders
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Study and Methodology
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Trends: High Level (Qualitative & Quantitative)
Lower Maturity
Annual planning
Incoming demand, limited process
Lack of visibility into demand, capacity
IT PMO perceived as schedule/process keeper, receives wish list
Continue to get overcommitted
IT PMO unclear about role
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Higher Maturity
Ongoing, continuous planning
Constant incoming demand, established process
Awareness that visibility into demand, capacity is important
Repositioning IT PMO to provide capacity data what-if scenarios and tradeoffs
Agile and adaptable
Becoming part of the business; headed to establish EPMO; change
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Lower maturity
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Listening in to the IT PMO
"Considering capacity in the
project approval process is crucial
but hard."
Mid maturity
"We always consider capacity now. We're trying to get people to look at it and make decisions on it.
It's a culture shift."
Higher maturity
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What if ...
IT PMOs could drive prioritization and capacity planning?
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Low Maturity (n= 54)
Mid Maturity (n =60)
High Maturity (n = 52)
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Resource Management Pain Points By Capacity Planning Maturity Level
Overcommitted resources
Constant change that affectsassignments and availability
Inability to prioritize shared resources
Inability to access real-time reports onresources
Inaccurate resource estimates
25%
25%
48%
72% 68%
63% 70%
56% 61%
] 47% 36%
37% 57% J 32%
56% 40%
37%
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Capacity Planning Pain Points By Capacity Planning Maturity Level
Lack of combined, holistic view of both resource capacity and pipeline demand
Ineffective demand prioritization and governance process
Unable to run what-if scenarios
Insufficient visibility into resource capacity
Insufficient visibility into pipeline demand
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69%
43%35%
29%
67%]48% 38%
10%
23%
45% 67%
] 29%38%
35%59%
56%47%
• Low Maturity (n = 54)
• Mid Maturity (n =60)
• High Maturity (n = 52)
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Everyone views capacity Prlanning as important, some find it difficult
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Low Maturity (n=39)
High Maturity (n=45)
Importance and Difficulty of Considering Capacity in Planning Process
Extremely Important Extremely Difficult
74%
73% 22%
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5 Steps to Optimize Capacity
Becoming capacity-centered as a way of life
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Poll question #1: Which best describes how resource capacity is considered in your project approval process? -We never consider capacity-We sometimes consider capacity-We consider capacity most of the time-We consider capacity all of the time
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Poll question #2: How long does it take your group to evaluate whether your company has the ability to take on a new, unplanned project? -Minutes-Hours-Days-Weeks-Months
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Trend: Expanding the scope of the PMO
• Low Maturity (n=54)
• Mid Maturity (n=60)• High Maturity (n=52)
Does your organization have an Project Management Office or Center of Excellence for Capacity Planning?
Yes - established
In process of establishing
Considering or evaluating
No, not at this time
-17%-15%
12%
-15%• 7%
2%
39% 50%
60%
30% 28%
23%
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"We thought we had supply and demand meetings, but we did not really have the
facts. The PMO is key to this II now.
-Program Manager, GlobalInsurance Company
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Risk of Inaction
Top Business Risks of Not Addressing Resource Management and Capacity Planning with Improved Processes and Tools
Inability to complete projects on time 53%
Increased project costs 43%
Inability to innovate fast enough 41%
Dissatisfied customers or clients 38%
Missed business opportunities 31%
* n = 167
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"The risk of poor capacity planning is not maximizing our resources. Our focus is on the innovative use of technology. We're refocusing our PMO to be involved in the beginning, not as an afterthought."
-IT Resource PlanningAnalyst, State Agency
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"We have seen a shift in PMOs being administrative function to a high value function. It's hard to do when it is a silo'd function with shared resources. We must look at all the investments across the business to identify conflicts to meet strategic objectives.
We are establishing an enterprise PMO and we'll have people embedded within the business." -Program Manager,
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Global Insurance Company
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Questions and Answers
Please use the O&A window to ask questions.
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Learn More about the Resaerch & Download the Guidebook
planview.com/rmcp
: Creating : IT Capacity
To Transform Business
Executive Summary
Whil • bu.ineuu ••• •mb<•cing digit•I tr•n.,orm•ti on, Jt'oimportanttoconoi&orth ••p,,c,fieimp•cbot oll
IT ia going through rb own t ranaformation within th•bu1inH1.ITiae�..dto1uppon:ui11ing •nd l�acytechnologywhil•innova ting and t.oking onn.w a<:h nology. •II in t h• f•c. of r•lantlNa, digital chang•. lf,.,,.,the,,.wn•n•edtob• nimbl•,•ndconfide nt ,....,.,...,,.. ••• w orl<ing on th• right pr;.,,,.,iH, it io now
Ra,11ord,aliOW11thot lT ha1alway1 hadtoo mi;ch d.m•nd,,u.tchingitor•1ourc.1thin;but
dignalieat;on ra'lui ramenuhanp uah • dthia toa n a ll-tim ahi9h.Thagoodnewa i1 t ha10,ganizat1onoa t a highe,maturitylavel int e,maofcapacjtypla nning ar•38'1.bett•1•bl•1oprio,;fu•d•m•ndthrou9h comin�ou• planning •nd ••• � b.tt•r •quipp•d torunaccurat..what-ifoc:+narioato optimi:c•their r&1ourc••· Th .y improve p roject tim • linM1 a nd ...duca buain ... nab th at th1Hl•n innovation ap e ad b<>eaua•th•yhavethe data1oh•lpth a bu1in .. 1m11<a amerttradeoff,,
It's safe to say there will always be high demand causing overcommitted resources, but how IT ev11luirtes dem,.nd could free up capacity to tr11nsfonn the business. IT needs" c11pacity-centered approach, so that ev11IU11ting resources 11r.dtheir &v.11il,,.,bility, &s part of the portfolio prioritization process, becomes" w&y of life.
a 5 Steps to Optimize
Capacity for Digital Transformation
For more information about the study, visit: rmcp.planview.com
2 Understand resource capacity
It's not uncommon for organizations to commit to new projects without taking into account capacity- in other words, the people needed to do the work.
For lTor9ania t,<>no.<>nly 31'l'<>flow•r metYrity<ompan1Htak+upacityintca<coYnt m<>tt or all o f thet,ma,a1ignifican1d,lf+rence from72"ofhigh•rmetYritynrga niationalhet t+Ucapacityintoaccount mos\orall ofth•
Orgeni.a tion1that ar+c•pecity--c:ant+redin th ai,gat,ngproc•u-aremoreli>Calytodaliver projact>on-tim•
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26 PLAN VIE We
Thank You
Maureen Carlson [email protected] @mocarlson
© 2016 Planview, Inc. I 27
: Creating : IT Capacity
Jerry Manas [email protected] @jerrymanas
To Transform Business
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PLAN VIEW®