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Bio-Doug McCutcheon

Bio-Doug McCutcheon. NZ for 3 years Won the Computerworld Best Project Implementation 2005 Europe and USA for 5 years, SAP Project Manager, in manufacturing, retail,energy and telecommunications Project managed the rollout of Microsoft client/server to Shell UK, 2 years.

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Bio-Doug McCutcheon

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  1. Bio-Doug McCutcheon • NZ for 3 years • Won the Computerworld Best Project Implementation 2005 • Europe and USA for 5 years, SAP Project Manager, in manufacturing, retail,energy and telecommunications • Project managed the rollout of Microsoft client/server to Shell UK, 2 years. • Banking industry, HSBC, 5 years • I.T. Hardware/Software vendors 3 years Prime/Wang

  2. Organisational Objective To generate sustainable growth in shareholder value through successful business change .

  3. Current Value of Organisation Changing Markets Increasing Competition Finance Customers Processes People & Tools Technical Advances Economic/Regulatory Pressures Future Value of Organisation Business Challenges Faced by the Organization Strategy Business

  4. Strategic Management • Define objectives from strategic goals Setting of Strategic Goals Priortising delivery of Objectives • Optimise investment decisions based on objectives against and capability and maturity Integrated Delivery Portfolio Management Program Management Program Management • Manage project inter-dependencies & resources Project Management • Manage time, resource & scope Enterprise Project ManagementFramework for Meeting Challenges

  5. “Welcome to the new economy where most of the world’s work will be done in semi- permanent networks of small project oriented teams.” Project Work - Tom Peters Liberation Management

  6. New Product DevelopmentThe best, the rest… “the right focus on management of the product development process combined with the best technology and tools to support that will enable more new product introductions, higher profits and a better “hit” rate” Source: PDMA Foundation Comparative Performance Assessment Study, 2004

  7. The pain, without an approach • STRATEGY. • .. a strategy that can not be implemented is of little use — many times the link between investments in programmes and projects and the direction of strategy is often weak or invisible. • 89% of companies are flying blind, with virtually no metrics in place except for finance • PORTFOLIO. • 84% of companies are unable to adjust and align their budgets with business needs more than once or twice a year • PROJECTS. • Over 50% of organisations, in recent surveys, have experienced project failures in the last 12 months….. the average cost of a project failure is $US10M • 84% of companies either do not do business cases for any of their IT projects or do them only on select/key projects Metagroup/Deloitte Ltd

  8. STRATGEY : Sometimes strategic direction is lost

  9. Enhance Customer value Expand revenue opportunities FINANCE Improve cost structure Increase asset utilization CUSTOMERS Price Quality Availability Selection Functionality Service Partnership Brand PROCESSES (INTERNAL) Operations Management Customer Management Innovation Regulatory and Social • Human Capital • Skills • Training • Knowledge • Information Capital • Systems • Databases • Networks • Organization Capital • Culture • Leadership • Alignment • Teamwork PEOPLE AND TOOLS Strategy Map – Balanced Scorecard Kaplan, R., Norton, D. (February, 2004)Measuring the strategic readiness of intangible assets. Harvard Business Review, 52 - 63

  10. STRATEGY MAP TRANSPARENCY

  11. You tell him we want our resource back PORTFOLIO Sometimes portfolio management and strategic direction are not aligned and carried out by the wrong person PM

  12. PORTFOLIO ARTICULATION $ FY0x PROPOSED BUDGET

  13. Gaining Control: Portfolio Optimization Led to Gains of $137mm EBIT, 24% Strategic Value for Same Budget 1 2 3 2 3 1 Strategic Value Gain = 24% EBIT Increase = $137 MM

  14. Integration Management Scope Management Quality Management H R Management Cost Management Time Management Communications Management Procurement Management Risk Management PROGRAM ARTICULATION Nine Knowledge areas PMI

  15. PROGRAM TRANSPARENCY russellf@datacom.co.nz

  16. PROJECTS: Are your Projects Behind Schedule? Dilbert: Scott Adams

  17. PROJECT ARTICULATION RESOURCE TIME QUALITY

  18. PROJECT TRANSPARENCY

  19. PROJECT TRANSPARENCY

  20. Why Microsoft for Enterprise Project Management? • Microsoft has never had stronger proposition in the area of Enterprise Project Management processes as it does now. • The products be aligned EPM areas as a stand alone or in an integrated stack. • The products are scalable and can be grown both technically and from a user capability point of view. • The products competitively priced

  21. Strategic Management Setting of Strategic Goals Priortising delivery of Objectives Integrated Delivery Portfolio Management Program Management Program Management Project Management The ProductsFramework for Meeting Challenges PROFIT Office Project Portfolio Manager COST

  22. The pleasure: Business Strategy + Enterprise Project Management = Sustainable Shareholder Growth “Organisations with enterprise PM standards will experience half the project cost overuns, delays and cancellations of those that don’t” – Gartner Group “In large “projectised” organisations, the lead time to market has been reduced by as much as 60%, development costs have declined, and forecasting accuracy has increased” – PMI “Best Practises” Benchmarking Report “Existing project costs can be reduced 10 – 30% by eliminating redundancies, conflicting initiatives, and projects not paying dividends” - PMI “Best Practises” Benchmarking Report A minimum 2% (often 2-5%) improvement in the total annual costs of project-related resources. - Aberdeen Group

  23. References: Web Sites Balanced Score Carding, http://www.microsoft.com/office/previous/xp/business/intelligence/scorecard.asp Portfolio Management. http:// www.pmi.org, http:// www.microsoft.com/epm, http://www.mpug.org/ Program management http:// www.pmi.org, http:// www.microsoft.com/epm, http://www.mpug.org/ Project Management http:// www.pmi.org, http:// www.microsoft.com/epm, http://www.mpug.org/ Books Strategy Maps Robert S. Kaplan, David P. NortonEnterprise Programme Management – Delivering Value, Tim Parr, David Williams Thank You – there will be a lunch time session that demonstrates aspects of the EPM solution, please attend it will be the best session Doug McCutcheondoug.mccutcheon@microsoft.com 021-749-151

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