Post on 08-Mar-2018
PROJECT PRIORITISATION
Alignment to Business Drivers
PROJECT PRIORITISATION
APPROACH
2
Determine your prioritisation criteria and
input constraints and threshold
Collect project data with standardised template
Determine most relevant costs and benefits for each project type with
business case
Consolidate information and produce reports to highlight key portfolio and project data in support of the prioritisation process
High Value
Low Value High Risk
Risk/Value Matrix : All Projects
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
A11 A12
A13
I1
I2
I3
I4
I5
I6
I7
I8
O1 O2
O3
O4
O5 O6
O7
O8
T1
T2
T3 T4
T5 T6
T7
T8
0
1
2
3
4
5
6
0 1 2 3 4 5 6
Valu
e
Innovation Maintenance Productivity Growth
Low Risk
1 2
3
4
5
6
3
1 Setting up of Client’s Portfolio entailed the following:
Stakeholder Value Map
Business Sustainability Reliable Supply Provide Electricity for the Future Developmental Objectives
E&FS T HPS OFS
• Cost Mgt
• ROI/Cost Savings
• Invest in Core Business
• Debtors Days
• Resource utilisation
• Borrowing
• Abide by Tariff
Regulations
• Effective IT
• Customer Centricity
• Operational Excellence
• Process Mgt
• Internal Energy
Efficiency
E&FS T HPS OFS
• Coal Stock & Transport
• Plant Age
• Reduce Losses & Theft
• Regulation
• Power Delivery
Reliability
• Power Source
Reliability
• Outage, Maintenance
and Operations
• Innovation
• Monitoring
• Smart Grid
• Mobility
• Workforce Mgt
• Asset Maintenance
• Demand Side Mgt
• Manage Load
Shedding
E&FS T HPS OFS
• Carbon Reduction
(Environment)
• Secure Resources
• Capital Programme
• Water (Environment)
• Integrated Resource
Planning
• Electrification
• Coal & Bio Sourcing
• Coal & Bio Transport
• Fuel & Gas Sourcing
• IPP
• Plan for Tomorrow
E&FS T HPS OFS
• Productivity
• Growth & Employment
Contribution to Society
• Local Content
• Free Basic Electricity
• Talent Development
• Safety
• Behaviour & Culture
• Critical Skills
• Organisation
E&FS – Economic & Financial Sustainability
T – Tariffs
HPS – High Performance Shift
OFS – Organise for Success
Legend
1
SAMPLE DATA ONLY
CLIENT CASE STUDY
4
Cost Categories (Client Standard):
Capital Expenditure (CAPEX)
• Manpower - Internal
• Manpower Overtime – Internal
• Manpower – Contractors
• Hardware Purchases and
Maintenance
• Software Package Purchases and
Maintenance
• Software License Purchases and
Maintenance
• Training Course / Seminar Cost
• Travel & Subsistence (T&S) – Airfare
• T&S – Vehicle Hire
• T&S – Meal and Hotel
• T&S – Local Daily Allowance
• T&S -
• Specifically for attending Training and
Seminars
• T&S – Overseas Airfare
• T&S – Overseas Meals, Hotel,
Transport
• T&S –Overseas Daily Allowance
• T&S – Venue costs
• T&S – Catering costs
1 Setting up of Client’s Portfolio entailed the following (continued):
Business Processes:
The business processes were aligned with 5 High
Performance Areas (Level 0) and Business
Functions (Level 1)
Process Impacts were measured in terms of
following criteria:
• 1 – Weak
• 2 – Low
• 3 – Medium
• 4 – High
• 5 – Very High
Project Types:
• Strategic
• Maintenance
• Efficiency
• Regulatory/Mandatory
Dependency Types:
• Successor
• Predecessor
• Interdependency
Project Life Cycle Phases:
1. Prioritisation and Approval
2. Concept Phase
3. Design Phase
4. Execution Phase: Build & Test Stage
5. Execution Phase: Implementation Stage
6. Execution Phase: Stabilisation Stage
7. Finalisation Phase: Close out
8. Benefits Tracking Stage
Non Capital Expenditure (OPEX)
• Manpower - Internal
• Manpower Overtime – Internal
• Manpower – Contractors
• Hardware Purchases and
Maintenance
• Software Package Purchases and
Maintenance
• Software License Purchases and
Maintenance
• Training Course / Seminar Cost
• Travel & Subsistence (T&S) – Airfare
• T&S – Vehicle Hire
• T&S – Meal and Hotel
• T&S – Local Daily Allowance
• T&S -
• Specifically for attending Training and
Seminars
• T&S – Overseas Airfare
• T&S – Overseas Meals, Hotel,
Transport
• T&S –Overseas Daily Allowance
• T&S – Venue costs
• T&S – Catering costs
• Project Marketing / Advertising Costs
SAMPLE DATA ONLY
CLIENT CASE STUDY 1
5
1 Setting up of Client’s Portfolio entailed the following (continued):
Organisational Structure:
IT
Business Process Management
IT Strategy Execution &
Architecture
Solution Delivery
Service Delivery
Business Enablement
Governance, Risk & Compliance
Information Asset Management
Information Management
Resources:
Resource Category: Type: Expertise:
Project Delivery Manager Internal Senior
Portfolio Manager External Junior
Programme Manager Intermediate
Project Manager
Project Coordinator
Enterprise Architect
Solution Architect
System Analyst
Business Analyst
Developer
Project Office Manager
Project Services Manager
Project Services Officer
Project Administrators
SAMPLE DATA ONLY
CLIENT CASE STUDY 1
PROJECT PRIORITISATION
APPROACH
6
Determine your prioritisation criteria and
input constraints and threshold
Collect project data with standardised template
Determine most relevant costs and benefits for each project type with
business case
Consolidate information and produce reports to highlight key portfolio and project data in support of the prioritisation process
High Value
Low Value High Risk
Risk/Value Matrix : All Projects
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
A11 A12
A13
I1
I2
I3
I4
I5
I6
I7
I8
O1 O2
O3
O4
O5 O6
O7
O8
T1
T2
T3 T4
T5 T6
T7
T8
0
1
2
3
4
5
6
0 1 2 3 4 5 6
Valu
e
Innovation Maintenance Productivity Growth
Low Risk
1 2
3
4
5
6
7
Risk Criteria Assessment:
A weighting is allocated against each Risk Criteria against the 4 different Investment Categories: TO
TAL
Clie
nt
Pro
cure
me
nt
Pro
cess
B
en
efi
ts R
eal
isat
ion
P
lan
(B
RP
) ap
pro
ved
Bu
sin
ess
Cas
e
Sen
siti
vity
Stak
eh
old
er
Alig
nm
en
t an
d
Sup
po
rt
Tech
no
logy
C
om
ple
xity
Pro
ject
Co
mp
lexi
ty
Envi
ron
me
nt
Stab
ility
Ava
ilab
ilit
y o
f Sk
ille
d
Re
sou
rce
s
De
gre
e o
f C
han
ge
Stat
em
en
t o
f W
ork
(S
OW
) in
pla
ce
Efficiency 100 10 15 15 10 5 10 10 5 10 10
Maintenance 100 10 10 10 10 10 10 10 10 10 10
Strategic 100 5 15 15 10 5 10 10 10 10 10
Regulatory/ Mandatory
100 10 0 0 10 10 15 15 15 15 10
Value Criteria Assessment:
A weighting is allocated against each Value Criteria against the 4 different Investment Categories:
TOTA
L
Fin
anci
al B
en
efi
ts
Cre
ate
d
Qu
alit
ativ
e B
en
efi
ts
Cre
ate
d
Tim
e t
o B
en
efi
ts
Cre
atio
n
Imp
acts
on
th
e
Pri
ori
ty V
alu
e D
rive
rs
Val
ue
at
Ris
k A
dd
ress
ed
Fou
nd
atio
n-b
uil
de
r
Win
do
w o
f O
pp
ort
un
ity
Urg
en
cy o
f St
art
Efficiency 100 10 10 10 10 15 10 20 15
Maintenance 100 10 10 10 10 10 10 20 20
Strategic 100 10 10 15 10 15 10 20 10
Regulatory/ Mandatory
100 10 10 10 10 20 15 10 15
2
SAMPLE DATA ONLY
CLIENT CASE STUDY
High-numbers =
Filter Through
High-numbers =
Catch
8
2
SAMPLE DATA ONLY
CLIENT CASE STUDY
PROJECT PRIORITISATION
APPROACH
9
Determine your prioritisation criteria and
input constraints and threshold
Collect project data with standardised template
Determine most relevant costs and benefits for each project type with
business case
Consolidate information and produce reports to highlight key portfolio and project data in support of the prioritisation process
High Value
Low Value High Risk
Risk/Value Matrix : All Projects
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
A11 A12
A13
I1
I2
I3
I4
I5
I6
I7
I8
O1 O2
O3
O4
O5 O6
O7
O8
T1
T2
T3 T4
T5 T6
T7
T8
0
1
2
3
4
5
6
0 1 2 3 4 5 6
Valu
e
Innovation Maintenance Productivity Growth
Low Risk
1 2
3
4
5
6
10
Thresholds: 2012 2013 2014 2015 2016 …
Scenario 1 – Costs / Risks Threshold 30 000 000 30 000 000 30 000 000 30 000 000 30 000 000
Scenario 2 – Benefits / Value Threshold
70 000 000 70 000 000 70 000 000 70 000 000 70 000 000
Scenario 3 - Resources 1 000 1 000 1 000 1 000 1 000 FTE
Organisational constraints are defined for each year in terms of working capital, expenses and resources. These constraints are used in some reports to highlight budget/resource limits.
Total Costs 2012 2013 2014 2015 2016
Threshold: Scenario 1 – Costs / Risks 30 000 000 30 000 000 30 000 000 30 000 000 30 000 000
All Projects 20 000 000 50 000 000 0 0 0
Prioritized projects 10 000 000 40 000 000 0 0 0
Value threshold: > 40
Risk threshold: < 100
Cost Tolerance: 10%
Project ABC
Network analysis
GIS Solution
System Replacement Project
++
++
1. GIS Solution
2. System Replacement Project
3. Project ABC
Prioritised or scenario planned
projects:
All Projects:
• The projected annual project costs are
MAZ30m (predicted for 5 year period)
• For 2012: the projected project costs for the selected as well as
the prioritised projects are: MAZ10 000 000.
• The project costs for the 2012 prioritised projects are shown in
green, indicating project costs are less than projected
• For 2013: the projected project costs for selected as well as
the prioritised projects are MAZ50 000 000
• The project costs for the 2013 prioritised projects are shown
in red, indicating project costs are more than projected
Sa
mp
le
prio
ritisa
tio
n:
SAMPLE DATA ONLY
CLIENT CASE STUDY 4&5
11
Financial Benefits Created
Qualitative Benefits Created
Time to Benefits Creation
Impacts on the Priority Value Drivers
Value at Risk Addressed
Windows of Opportunity
Procurement Process
Benefits Realisation Plan (BRP) approved
Business Case Sensitivity
Stakeholder Alignment and Support
Technology Complexity
Project Complexity
Environment Stability
Availability of Skilled Resources
Degree of Change
Statement of Work (SOW) in place
Value Criteria: Risk Criteria:
Foundation-builder
4&5
SAMPLE DATA ONLY
CLIENT CASE STUDY
12
Rev
iew
ed a
nd
ad
just
ed a
nn
ual
ly
Portfolio Setup (A)
Projects Prioritised (C)
Costs (Risks), Benefits (Value) and Resources Thresholds (D)
Investment Categories Mapped to Risk and Value (B)
List of
prioritised
projects
Cost S
ce
na
rio
Be
ne
fits
Sce
na
rio
Res
ou
rces
Sce
nar
io
Projects are now prioritised
based on direct business value
Project A
Project B
Project C
Project D
The solution allows projects to be prioritised on 3 different scenarios:
• Costs / Risks
• Benefits / Value
• Resources
Your prioritisation of projects will be based on the changing business and economic variables and it also allows
for a save environment to plan based on the changing business and economic environment.
SAMPLE DATA ONLY
CLIENT CASE STUDY Portfolio Maintenance
© 2011 Deloitte Consulting (Pty) Ltd 13
Alignment to Client’s Stakeholder Value Map
PROJECT PRIORITISATION
APPROACH
14
Determine your prioritisation criteria and
input constraints and threshold
Collect project data with standardised template
Determine most relevant costs and benefits for each project type with
business case
Consolidate information and produce reports to highlight key portfolio and project data in support of the prioritisation process
High Value
Low Value High Risk
Risk/Value Matrix : All Projects
A1
A2
A3
A4
A5
A6
A7
A8
A9
A10
A11 A12
A13
I1
I2
I3
I4
I5
I6
I7
I8
O1 O2
O3
O4
O5 O6
O7
O8
T1
T2
T3 T4
T5 T6
T7
T8
0
1
2
3
4
5
6
0 1 2 3 4 5 6
Valu
e
Innovation Maintenance Productivity Growth
Low Risk
1 2
3
4
5
6
15
Issues
Management
System Refresh
System
Stabilisation
Efficiency
Efficiency
Efficiency
1,234,000 0
4,321,000
0
Pro
ject N
am
e
Cate
gory
Tota
l C
osts
Tota
l B
enefits
Data Lock Efficiency 0
System Upgrade Maintenance 0
Project ABC Regulatory /
Mandatory 0
Equipment Reliability
Process System Strategic 0
Business
Sustainability
Reliable
Supply
Provide
Electricity for
the Future
Development
al Objectives
Stakeholder Value Map
For projects with total costs less than MAZ15m:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
1,234,000
1,234,000
1,234,000
1,234,000
1,234,000
1,234,000
16
Fuel Oil Management
System
Integrated
Control Centre
Transmission
Inventory Mgt System
Efficiency
Efficiency
Efficiency
12345
12345
12345
0
0
321
Pro
ject N
am
e
Cate
gory
Tota
l C
osts
Tota
l B
enefits
Telecom Inventory
Management System Efficiency 12345 321
System 2 Upgrade Maintenance 12345 0
Application Roll-out Regulatory /
Mandatory 12345 0
Generation
Application Roll-out 12345 0
Application
Framework 12345 321
Systems Replacement 12345 321
GIS Solution 12345 321
Business
Sustainability
Reliable
Supply
Provide
Electricity for
the Future
Development
al Objectives
Stakeholder Value Map
Systems Services 12345 321
Regulatory /
Mandatory
Regulatory /
Mandatory
Regulatory /
Mandatory
Regulatory /
Mandatory
Regulatory /
Mandatory
For projects with total costs between MAZ15m and MAZ80m:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
17
Online Condition
Monitoring System
Hardware
Refresh
IT Infrastructure
Provisioning
Efficiency
Efficiency
Efficiency
12345
12345
12345
0
0
0
Pro
ject N
am
e
Cate
gory
Tota
l C
osts
Tota
l B
enefits
Client Stakeholder Value Map
OT Security Efficiency 12345 321
Advanced Distribution
Mgt System Efficiency 12345 0
Mobile Design &
Infrastructure Efficiency 12345 321
Unified
Communications Maintenance 12345 321
Business
Sustainability
Reliable
Supply
Provide
Electricity for
the Future
Development
al Objectives
Stakeholder Value Map
Advanced Metering
Infrastructure
Regulatory /
Mandatory 12345 321
System 3 Regulatory /
Mandatory 12345 321
For projects with total costs greater than MAZ80m:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
18
Considering all of the projects, the following analysis can be made regarding alignment to the Client Stakeholder
Value Map:
• The majority of the projects activate the ‘Business Sustainability’ value driver.
• The least active value driver is the ‘Provide Electricity for the Future’.
• The ‘Advanced Metering Infrastructure’ project provides the largest total benefit (MAZ 12345) and activates
the ‘Reliable Supply’ value driver.
• The ‘System 3’ project is the project with the greatest total costs (MAZ 321) and it activates the ‘Business
Sustainability’ value driver.
• The following indicate the number of project per Investment Category:
‒ Strategic: 1
‒ Maintenance: 3
‒ Efficiency: 14
‒ Regulatory/Mandatory: 9
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
© 2011 Deloitte Consulting (Pty) Ltd 19
Alignment to Client’s Business Process Groups
20
Process Impact: Great Medium Small
Legend
Pro
ject N
am
e
Cate
gory
Tota
l C
osts
Tota
l B
enefits
Business Process Alignment
Issues
Management
System Refresh
System
Stabilisation
Efficiency
Efficiency
Efficiency
12345
12345
12345
0
321
0
Data Lock Efficiency 12345 0
System Upgrade Maintenance 12345 0
Project A Regulatory /
Mandatory 12345 0
Equipment Reliability
Process System Strategic 12345 0
Tra
nsm
it a
nd
Dis
trib
ute
Ele
ctr
icity
Genera
te &
Supply
Environm
ent
Enable
the
Ente
rprise
Reta
il and
Custo
mer
Opera
tions
Manage the
Ente
rprise
For projects with total costs less than MAZ100m:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
21
Pro
ject N
am
e
Cate
gory
Tota
l C
osts
Tota
l B
enefits
Business Process Alignment
Tra
nsm
it a
nd
Dis
trib
ute
Ele
ctr
icity
Genera
te &
Supply
Environm
ent
Enable
the
Ente
rprise
Reta
il and
Custo
mer
Opera
tions
Manage the
Ente
rprise
Fuel Oil Management
System
Integrated
Control Centre
Transmission
Inventory Mgt System
Efficiency
Efficiency
Efficiency
12345
12345
12345
0
0
321
Telecom Inventory
Management System Efficiency 12345 321
System Upgrade Maintenance 12345 0
Application Roll-out Regulatory /
Mandatory 12345 0
Generation
Application Roll-out 12345 0
Application
Framework 12345 321
Systems Replacement 12345 321
GIS Solution 12345 321
Systems Services 12345 321
Regulatory /
Mandatory
Regulatory /
Mandatory
Regulatory /
Mandatory
Regulatory /
Mandatory
Regulatory /
Mandatory
Process Impact: Great Medium Small
Legend
For projects with total costs between MAZ100m and MAZ200m:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
22
Process Impact: Great Medium Small
Legend
Pro
ject N
am
e
Cate
gory
Tota
l C
osts
Tota
l B
enefits
Business Process Alignment
Tra
nsm
it a
nd
Dis
trib
ute
Ele
ctr
icity
Genera
te &
Supply
Environm
ent
Enable
the
Ente
rprise
Reta
il and
Custo
mer
Opera
tions
Manage the
Ente
rprise
Online Condition
Monitoring System
Hardware
Refresh
IT Infrastructure
Provisioning
Efficiency
Efficiency
Efficiency
12345
12345
12345
0
0
0
OT Security Efficiency 12345 321
Advanced Distribution
Mgt System Efficiency 12345 0
Mobile Design &
Infrastructure Efficiency 12345 321
Unified
Communications Maintenance 12345 321
Advanced Metering
Infrastructure
Regulatory /
Mandatory 12345 321
System C Regulatory /
Mandatory 12345 321
For projects with total costs greater than MAZ200m:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
23
Considering all of the projects, the following analysis can be made regarding alignment to Client ‘s process
groups:
• 50% of the projects indicated a process impact specific to the ‘Enable the Enterprise’ process group.
• The following project generates the greatest process impacts:
• Systems Refresh (‘Enable the Enterprise’ process group)
• Integrated Control Centre (‘Generate & Supply Environment’)
• Advanced Metering Infrastructure (‘Transmit and Distribute Electricity’)
• The following project generated the smallest process impact:
• ‘Mobile Design & Infrastructure’ (‘Transmit and Distribute Electricity’)
• The ‘Application Framework’ project covers 80% of the process groups.
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
© 2011 Deloitte Consulting (Pty) Ltd 24
Risk vs Value Bubble Chart
Fuel Oil
Mgt System
25
100
Risk
0
Va
lue
0
100
Plan Do
Reassess Control
Risk-Value Matrix
Size of bubble
indicates project costs
Legend
Execution phase: Build & Test phase
Design phase
Prioritisation and Approval
phase
Execution phase: Implementation
phase
ABC
D
Online Condition
Monitoring Systems
Transmission Inv. Mgt System
System X Upgrade
Telecom Inventory
Management System
Unified Communications
Mobile Design and
Infrastructure
Application
Framework
GIS Solution
IT Infrastructure
Provisioning
Advanced Metering
Infrastructure
Advanced Distribution
Management System
OT Security
Hardware Refresh
Systems
Services
Systems
Replacement Project
Integrated Control
Centre
System
Refresh
Issues Mgt System Upgrade
Equipment Reliability Process System
ABC
Data
Lock
Stabilisation
All projects:
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
26
Considering all of the projects, the following risk and value analysis can be made:
• 30% of the projects are high risk and high value projects, which places a premium on resources
(timelines, budgets and staff) to manage these successfully.
• 37% of the projects lies within the ‘high value, low risk’ quadrant which indicates that these projects
should be implemented in the short term (‘quick wins’).
• The ‘Systems Refresh’ is the project with the highest value as well as highest risk.
• The ‘Application Framework’ project has the highest value and manageable implementation risk.
• The ‘Stabilisation’ and the ‘Data Lock’ projects has the lowest implementation risk.
• The following indicates number of projects by phase:
‒ Prioritisation and Approval phase: 9
‒ Design phase: 6
‒ Execution: Build and Test phase: 8
‒ Execution: Implementation phase: 4
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
© 2011 Deloitte Consulting (Pty) Ltd 27
Combined Stakeholder Value Map and Business
Process Group Alignment - Mash-up
28
Business
Sustainability Reliable Supply
Provide Electricity
for the Future
Developmental
Objectives
Stakeholder Value Map
123,456,000 12,345,000 123,456,000 123 3,800,000 543
123,000 0 12,3456,000 0
123,446,000 543,210,000 87,654,000 12,345,000 78,110,000 432
123,456,000 123,456,000 9,876,000 0
654,321,000 321,000,000 7,654,000 8,765,000 6,543,000 9,876,000
Legend
No projects reported
Sum Total of Reported
Benefits
Sum Total of Reported
Costs
• The least amount of
projects are aligned
with the ‘Provide
Electricity for the
Future’ value driver.
• The sum total of all
projects costs is
greater than the sum
total of the monetary
benefits gained from
the projects.
• The greatest benefits
are aligned with the
‘Business
Sustainability’ value
driver and within the
‘Transmit &
Distribute Electricity’
business processes.
SAMPLE DATA ONLY
CLIENT CASE STUDY 6
© 2011 Deloitte Consulting (Pty) Ltd 29
Question and Answers
Thank-You
John Karageorgiou (Linked In)
jkarageorgiou@deloitte.co.za
@Art_Of_Victory (Twitter)