Complete Perspective. Smart Decisions.

www.UMT360.com

@UMT360

LinkedIn.com/company/umt360/

Project & Portfolio Financial Controls for Microsoft Project Server

Ben Chamberlain

UMT360 Chief Product & Marketing Officer

ben.chamberlain@umt360.com

#financialintel

2010

Partner of the

YearIn Program and

Portfolio Management

2012

Visionary

In the Magic Quadrant

for Integrated IT Portfolio Analysis

2012

Cool Vendor

In Program andPortfolio

Management

2013

Visionary

In the Magic Quadrant

for Integrated IT Portfolio Analysis

2013

Partner of the Year

In Project and Portfolio

Management

Leaders in Enterprise Portfolio ManagementDigitalizing investment planning and controls across portfolios

to drive smarter business decisions.

What is Portfolio Management?A question I have struggled with over the years!

Aggregate reporting across one or more portfolios?Alignment of spend with strategic priorities?

Portfolio Management is…Integration of all Portfolios to drive better business

decisions and value… Better business decisions require Financial due diligence.

Is It…

Agenda & Key Takeaways

• What’s Wrong with Traditional PPM?• Trifecta of Business Value Erosion• Steps to Effectively Integrate Financial

Mgmt. and PPM• UMT360 In Action (Demonstration)• Expected Payback!• Questions & Answers

Takeaways:1. Traditional PPM is failing to deliver the

anticipated results!

2. PMOs must view projects as business investments and take responsibility for optimizing spend and maximizing portfolio value.

3. Built on SharePoint and with seamless integration with Project Server, UMT360 helps companies realize more value from their Microsoft platform investment.

[ poll 1 ]

What PPM solution are you using?

#financialintel

The Statistics Are AlarmingTraditional PPM is Failing to Deliver Anticipated Results

33%of projects fail to get completed or implemented

of completed projects experience cost overruns

54%46%Unrealized Business

ValueRealized

Business Value

43%of all projects are delivered late or over budget

Standish Group

Standish Group PMI

33%of projects do not meet their goals or business intent

Gartner

18%

The Statistics Are AlarmingThe Trifecta of Business Value Erosion

54%46%Unrealized Business

ValueRealized

Business Value

Gartner

Innovation & Estimating

Project Success Rates

Budget Utilization

1.

2.

3.

[ poll 2 ]

How much of the project budget did your organization utilize last year?

#financialintel

Tactical Focus

• Schedule

• Resource

• Issues & Risks

• Templates

• Etc..

Strategic Focus

• Business Value

• Financials

• Benefits

An Important Mindset Change for PMOsToo Focused on Tactical Aspects of Project Delivery

Tactical Focus• Schedule• Resource• Issues & Risks• Templates• Etc..

Strategic Focus• Business Value• Financials• Benefits

An Important Mindset Change for PMOsMust Start to View Projects as Business Investments

Inadequate Software ToolsFailure to Integrate Financial Mgmt. & PPM

• Disconnected, error prone and cumbersome

• Difficult to standardize & govern project budgeting & tracking

ERP

PPM

• Provides the ‘chart of accounts’ view needed by the finance team

• Fails to deliver the complete financial transparency needed by PPM teams

• Provides strong project & resource management capabilities

• Lacks the sophistication needed to effectively control project and portfolio financials

X

[ poll 3 ]

Which software tools do you currently use to manage Project Financials?

#financialintel

Establish Investment Controls across the

PPM Lifecycle

Phase 1 Phase 2 Phase 3 Phase 4

Incr

ease

Fin

anci

al M

atur

ity L

evel

(1 to

5)

Level 5 -

Level 4 -

Level 3 -

Level 2 –

Level 1 -

Steps to Drive Financial TransparencyA Phased Approach to Integrate Financial Mgmt. & PPM

Phase 1: Financial TransparencyEstablish Investment Controls Across the PPM Lifecycle

High Level Business Case

Detailed Planning Execution MeasurePortfolio

SelectionFinal

Approval

Close-out

Create Select Plan Manage Evaluate

• Project Details• Costs by Quarter• Benefits by Year• Strategic Impact• Risk• Resources

• Phase 1 Snapshot (Business Case)

• Phase 2 Snapshot (Business Case)

Recurring Status

Reporting & Variance

• Project Details• Costs by Month• Benefits by

Quarter• Strategic Impact• Risk• Resources• Schedule

Establish Approval Authorities

Establish Investment Controls across the

PPM Lifecycle

Integrate with LoB Systems &

Automate Reports

Agile Reallocation of Funds to Maximize ROI

Phase 1 Phase 2 Phase 3 Phase 4

Incr

ease

Fin

anci

al M

atur

ity L

evel

(1 to

5)

Level 5 -

Level 4 -

Level 3 -

Level 2 –

Level 1 -

Steps to Drive Financial TransparencyA Phased Approach to Integrate Financial Mgmt. & PPM

Open Monthly Status Report

Project Level Monthly Status Report

Project Manager Completes Status Report

Raise Change Requests for Redirects & Releases

Portfolio Level – Monthly Dynamic Reallocation Process

Redirects ReleasesNew Requests

Approved

Portfolio & Project Budgets Updated Release New Redirect

Quarter 2 $188,096,540 ($17,813,000) $8,278,491 $7,853,662 ($1,680,847)

Quarter 3 $186,415,693 ($8,655,000) $3,104,000 $2,804,000 ($4,427,847)

Quarter 4 $183,668,693 ($9,099,260) $6,167,318 $4,359,839 ($2,999,950)

($35,567,260) $17,549,809 $15,017,501 -19% 9% 8%

(Surplus) / Deficit

Total Sweep for the year

Quarter Start Budget

2012 Common Portfolio

Sweep Process

Phase 3: Agile Reallocation Reallocate Funds to Maximize Portfolio Value

Establish Investment Controls across the

PPM Lifecycle

Integrate with LoB Systems &

Automate Reports

Agile Reallocation of Funds to Maximize ROI

Establish Benefits Realization Framework

Phase 1 Phase 2 Phase 3 Phase 4

Incr

ease

Fin

anci

al M

atur

ity L

evel

(1 to

5)

Level 5 -

Level 4 -

Level 3 -

Level 2 –

Level 1 -

Steps to Drive Financial TransparencyA Phased Approach to Integrate Financial Mgmt. & PPM

Investment Governance & Controls

Business Case

Analysis

Allocation & Funding

Cost Tracking& Variance Analysis

Change Request Mgmt.

ERP Connector / Integration

Program Mgmt.

Chargeback Reporting

Benefits Realization

PerformanceMetrics

Cross Portfolio

Mappings

UMT360 - Project Financial IntelligenceIntegrated Project & Portfolio Financial Controls

Agile Reallocation

of Funds

Demo

90 Day Fast Start A Phased Approach for Project Financial Intelligence

16%Avg. more ROI from your strategic portfolios

Ok, but what’s the Payback?Based on $200m Project Portfolio

2. Cost Savings / Efficiencies (Across PMO, Finance Team & Business Units)

• 10% more Benefits = $9,500,000• 5% more Benefits = $4,250,000• 1% more Benefits = $ 950,000

1. Project Portfolio Size & ROI • Size of Project Portfolio = $200,000,000• Estimated Benefits

• Revenue Growth = $350,000,000• Cost Savings = $125,000,000• Total Benefit Estimates = $475,000,000• Benefits at Risk (46%) = $218,000,000• Minimum Benefits at Risk (20%) = $95,000,000

3. More Benefits from Portfolio per year

ROI• Streamline Capital Planning (2 FTE) = $275,000• Automate Status Reporting (2 FTE) = $275,000• Reduce time creating Mgmt. Reports (1 FTE) = $135,000• Total Savings = $685,000

Between $1.7m and $10m per annum

Action PlanWhat Should I Do Next?• Next 7 Days – Assess how your

company is currently managing project financials

• Next 30 Days – Schedule an envisioning workshop with UMT360 experts

• Next 90 Days– Kick off a Proof of Concept to gain complete Financial Transparency across your project portfolio

Complete Perspective. Smart Decisions.

www.UMT360.com

@UMT360

LinkedIn.com/company/umt360/

Thank YouVisit www.UMT360.com to learn more.

Ben Chamberlain

UMT360 Chief Product & Marketing Officer

ben.chamberlain@umt360.com

#financialintel