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James T. Heires Consulting1
Software Software Portfolio Portfolio
ManagementManagementEastern Iowa PMI Chapter
ProgramMarch, 2002James T. Heires
James T. Heires Consulting2
“Embarking on a development project is like taking a trip down the Amazon.
You don’t do it without careful planning and a steady guide.
Unless of course you enjoy pain.”
James T. Heires Consulting3
What is Portfolio Management?• An abstraction of project management
(PMBOK)>Cost Management>Schedule Management>Quality Management>Scope Management
• A method to fulfill commitments• A strategic planning technique• A consistent, broad communication
mechanism
James T. Heires Consulting4
Risk Management
•Software Portfolio Management
IDENTIFY RISKEARLY & OFTEN
Schedule Cost Quality
Resources Tasks
Staffing
Timelines Defects
James T. Heires Consulting5
Software Portfolio Management
Estimation & Planning•Proposal response•Bid evaluation•What-if analysis•Calibrate to environment•Model uncertainty•Make commitments
Control & Forecasting•Monitor project status•Forecast with real-time data• Intervene early, redirect•Protect cost & schedule•Manage commitments
Analyze Performance•Populate corporate repository•Evaluate performance•Assess strengths & weaknesses•Produce close-out review•Support future commitments
James T. Heires Consulting6
Statistical Models
Experienced “Guides”
Knowledgebase
INPUTS
SEI/CMMCore Measures
Constraints/Targets
Custom Metrics
Client StakeholdersProject Management
SPM PROCESS OUTPUTS
Probability Reporting
Management “Heatmaps”
Analytical Assessments
Software Portfolio Management
Main Build Time vs. Size
Effective SLOC (thousands)
1 10 100 1000
Months
0.1
1
10
100 Main Build Effort vs. Size
Effective SLOC (thousands)
1 10 100 1000
Person-M
onths
0.1
1
10
100
1000
10000
MTTD - 60 Days vs Size
Effective SLOC (thousands)
1 10 100 1000
MT
TD
- 60 Days
0.01
0.1
1
10
100
1000 Productivity Index vs Size
Effective SLOC (thousands)
1 10 100 1000
PI
0
5
10
15
20
25
30
BASE YEAR + 1 Base Year Projects Avg. Line Style 1 Sigma Line Style
James T. Heires Consulting7
Manage Your Portfolio
James T. Heires Consulting8
Monitor IT by the Numbers
Schedule/MilestonesAppear on Target
Cost is Closeto the Plan
Product is BeingConstructed at a SlowerRate than Planned
Defect Rates areHigher than Planned
Yellow
YellowGreen
James T. Heires Consulting9
Forecast the Impact of Changes
Forecasted Schedule:+5.5 Months
Forecasted Cost:+$620K
Forecasted Code Production:Planned PI 10.8, Actual PI 9.1
40 Total Defects WillBe Remaining at theInitial Production Date
James T. Heires Consulting10
Demonstration...
James T. Heires Consulting11
Reducing the “$ Out of Control”
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
% o
f P
roje
cts
Ove
r B
ud
get
& S
che
du
le
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
Do
llar
s o
ut
of
Fin
an
cial
Co
ntr
ol
Percent ofProjects overBudget &Schedule
Dollars out ofFinancialControl
1993 - 1994(12 Projects)
1995(15 Projects)
1996(10 Projects)
Before SPM
1st YearResults Using SPM
Full Implementation
of SPM
James T. Heires Consulting12
Process Improvement Over Time
10
15
20
25
30
35
1990 1995 2000
PI* Industry Leader(1 PI/1.5 Years)
Industry Avg Rate(1 PI/2.5 Years)
Level 1
Level 2
Level 3
Level 4
Level 5
CM
M
Industry Leader Picks up Extra 3%- 4% $ Savings/Year
* PI = Size/(Time4/3 * Effort1/3)
James T. Heires Consulting13
Value Proposition
• Quantitative plan/bid evaluation
• Software visibility and accountability
• Intervention for troubled projects
• Results in powerful corporate
repository
• Reduce and eliminate risk!
James T. Heires Consulting14
Outsourced Portfolio Management• Team approach:
>Work with stakeholders to define project goals
>Work with project managers to define metrics
• Outsourcer handles data validation and
analysis:
>Continuous weekly/monthly feedback reports
>Qualitative and quantitative factors
>Early warning indicators documented
• Your portfolio is actively managed
James T. Heires Consulting15
“Success in the marketplace today is directly proportional to the knowledge an organization can bring to bear, how fast it can bring the knowledge to bear, and the rate at which it accumulates knowledge.”
— Tom Peters
James T. Heires Consulting16
Questions?
James T. Heires Consulting17
• Privately Held (growth funded)• Specialists in Metrics Niche with 15 Year
Legacy• Exclusive Rights to Modeling Tools in
North America• Experienced Objective Broker in Software
Management
Who is Emergeon?
Emergeon is a professional servicescompany with a penchant for metrics and
a passion for methodology.
James T. Heires Consulting18
Quick Start Service Offering• 50% Discount for 1st Project – 6 Month Commitment
>$4k $2k for Baseline, Benchmark, and Forecast>$2.5k $1.25k/mos. For Variance Analysis and
Continuous Early Warning & Forecast-to-Complete• Immediate Value
>Plans validated /Expectations “sanity checked”>Probability and risk analysis>Forecast-to-complete>Customized to your environment and
nomenclature
James T. Heires Consulting19
Our ClientsOur Clients
These companies have benefited from our services and quantitative methodology
165 Jordan RoadTroy, NY 12180518-283-7241
518-283-0532 (fax)www.emergeonsystems.com