Increasing the Value of PPM with Financial Management

Marilou Conklin, Olympus

ICT05P #CAWorld

Ilana Sprongl, TD Bank Group

ca Intellicenter

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Panel Session

Ilana Sprongl

TD Bank Group

AVP, Tools and Methodology | Enterprise Office of Project Management and Enabling Services (EPMO & EES)

Marilou Conklin

Olympus Corporation of the Americas

Sr. Mgr., Program Management

Medical Systems Group

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Abstract

Are you taking full advantage of the financial management capabilities in CA PPM?

This session is an opportunity to learn from two CA PPM customers, TD Bank Group and Olympus, to increase the value of your PPM investment by utilizing Financial Management. From executive financial reporting to defining cost plans, you'll learn the value of adding financials to your projects and how to take advantage of Financial Management in your implementation.

Marilou Conklin

Olympus

Ilana Sprongl

TD Bank Group

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Exceeds $7 Billion in annual global revenue

Is publicly traded on the Tokyo Stock Exchange

Employs more than 36,000 people worldwide

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Challenges: You want what?

Manually tracked resource time

project costs

project budget, actuals and estimate to complete

Lack of reporting and global visibility

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CA PPM: Implementation

Out of the box functionality

Project Management

Resource Management

Time Sheets

Project Financial Management

CA Project & Portfolio Management SaaS

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CA PPM: Project Financial Visibility

Costs by Phase

Costs by Resource

Costs by Task

Financial Reports

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CA PPM: Project Financial Setup

Source: Olympus Pricing and Economic Analysis

GroupResource

class

Blended salary

hourly rate(A)

Hourly benefit factor

(B)

Hourly overhead

factor(C)

Hourly Transfer pricing (TP)

markup(D)

Fully loaded hourly rate

(intercompany)

Fully loaded hourly ratewithout TP

(intracompany)

Directors and Group Managers

MgmtAverage

Salary / Net Hours

Blended Rate* Benefit Factor %

Blended Rate* Overhead

Factor %

(Blended Rate + Hourly Benefit +

Hourly Overhead) * TP %

A + B + C + D A + B + C

Developers, TestEngineers, System Engineers

Non-MgmtAverage

Salary / Net Hours

Blended Rate* Benefit Factor %

Blended Rate* Overhead

Factor %

(Blended Rate + Hourly Benefit +

Hourly Overhead) * TP %

A + B + C + D A + B + C

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CA PPM: Financial Setup

Investment classes

Input type codes of billable, non billable

Rate matrix

INTERNAL LABOR per Finance

EXTERNAL LABOR per legal agreements

Non labor of hardware, software and travel

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Olympus Key Benefits and Lessons Learned

Reduced administrator assistant time; 12 days to 4 hours per month

Consistent and accurate project costs

Streamlined intercompany invoice creation and quarterly R&D reporting

Standardized project templates

Uncomplicated rate matrixHigh-level project cost estimation with team roles

Detailed project cost est. using project tasks and team resources

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TD Bank Group – Company Overview

Headquartered in Toronto, Canada, with more than 85,000 employees in offices around the world

TD offers a full range of financial products and services to approximately 22 million customers worldwide

As of July 31, 2014, TD had $922 billion (CAD) in assets

TD also ranks among the world’s leading online financial services firms, with more than 8.8 million online and mobile customers

Federated business environment

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Business ChallengeGrowth in demand for projects with regulatory requirements, acquisitions and technology initiatives as significant drivers

0

100

200

300

400

500

600

700

800

1 2 3 4

Nu

mb

er o

f P

roje

cts

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Project Investment Lifecycle in CA PPM

Costs over the entire project investment lifecycle from fiscal plan through ongoing tail

Project Management LifecycleOn-going

CostsTail

Fiscal Planning

Annual planning exercise to identify projects in line with budget

Maintenance costs, license

fees, etc.

Capitalization, amortization, depreciation

Seed funding approval

Business case approval

PIR

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Understanding Project Financials

Project financials are categorized to allow costs to be analyzed in different ways

The cost categories are consistent across project accounting processes and between CA PPM and the other systems and tools

Project Financials Classified into Cost

Categories

Costs vs. Benefits

One-Time vs. Ongoing

Technology vs. Business

Resource vs. Non-Resource

Cost Category Area# of Cost Categories

One-Time Cash Costs 21

Capitalization and Amortization/Depreciation

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Ongoing Costs 21

Benefits 7

Metrics and Summary Measures

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Monthly EAC Update Cycle

Actual costs updated via automated feeds and manual transaction entry

1

2

3

Legacy Timesheet

Systems

Fixed Assets

Accounts Payable

Manual Transactions

Project Managers update cash view forecast

Segment Finance updates P&L forecast

4

In-year spend tracked to fiscal plan

Total project spend tracked to approved funding

CA PPM

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Change Management

Aligning to common standards and definitions

What is a "project"?

What costs should be included as part of the project?

Roles and responsibilities

EPMO, PMOs, PMs, Segment Finance, Corporate Finance

Standardizing processes across business segments

Aligning segments and PMOs to a common reporting cycle and cutoff dates

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Key Benefits

Consistent definitions, standards and reporting cycles

Single, authoritative source with a comprehensive view of all project costs

across the enterprise

Improved decision making

Elimination of problems arising from inconsistent project financials being

reported from different sources

Elimination of "surprises" from projects exceeding approved funding

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Future Plans

Migrate legacy timesheet systems to CA PPM

Track non-project costs (for technology groups)

Chargeback to sponsoring segments

Data rationalization

Resource demand/capacity planning

Portfolio Management

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Takeaways and Lessons Learned

Strong executive support is critical

Use a progressive approach to implementation

Ability to stand-up the capability in CA PPM does not mean adoption

Must align with the organization's capacity to change

Use out-of-the-box capabilities first

Learn how CA PPM works and adapt processes to fit

Use customized additions where needed but don't alter built-in

functionality

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For More Information

To learn more about Management Cloud,

please visit:

http://bit.ly/1wEnPhz

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ensure it links to correct pageManagement Cloud

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