rego university: portfolio management, ca ppm (ca clarity ppm)

www.regoconsulting.com Phone: 1-888-813-0444

Portfolio Management, CA PPM (CA Clarity PPM)

Portfolio Management for CA PPM v13.2

2

Objectives

• Complete an overview of portfolio management functionality in CA PPM.

• Provide the knowledge needed to:– Prepare for Portfolio Management.– Create a portfolio inventory.– Evaluate possible investments via budget, business case or alignment

to corporate goals.– Categorize and score your portfolio. – Implement decisions to add, continue or cease investments. – Create and apply investment and Resource Capacity Planning

scenarios.

• Portfolio Implementation– Citrix- Erich Kissel– North Shore – LIJ – Sara Strock

3

Section 1

Getting Started with Portfolio Management

4

What is Portfolio Management?

• The process of deciding which Projects to start, continue, discontinue, or postpone.

• Portlet data derived from Financials and Resource Capacity based on primary role.

• Out-of-the-box portlet key components include risks, issues, and alignment.

• Provides tools to scope, plan, limit, and distribute funds.

• Enables creation of a detailed inventory of projects and views.

• Allows for analysis of data via portlets and views.

5

Keys to Portfolio Management Success

• A solid foundation of

– Demand

– Project

– Resource

– Financial Management

• Consistency, consistency, consistency

6

Investment Types

• Portfolios are collections of Investments housed within the CA PPM application

• Eight investment types exist– Application– Asset– Idea– Product– Project– Service– Other Work

• Projects and Other Work are used the most • You can add and analyze Instances of each investment type

within a Portfolio.

7

OrganizingEstablish the portfolio requirements

8

Organizing Portfolios

• Decide how you will organize– Investment Type

• Applications only• New product development investments

– Specific Investments• All active projects• Projects that start and finish within a specific time period

– Organizationally• All marketing related projects• Projects related to a specific line of business

– Interest/Goal• Projects that will grow the business• Investments considered to be innovation vehicles

9

Monitoring Investments• Identify the information

available in each portfolio

• Monitor the Investments– Establish the information of

interest within the portfolio

– Configure the portfolio to display the necessary information

• Create more portfolios if you need to see the investments in different ways

How to get Started with Portfolio Management

Monitor the Investments

Prioritize the Investments

Plan and Manage

Investments Using Targets

Explore the Alternative for

Investments

Set up Monitoring Criteria for

Investments

Configure Views,

Reports, and Workflows

Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r

Evaluate Your Portfolio

Requirements

Prepare to Use Portfolios

Ready to create

portfolios

10

Prioritizing Investments• Understand the relative

prioritization of investments• Use the default Waterline

view to see and rank your investments– By default, investments rank by

approval status then finish date– Approved investments appear

higher in the list– Investments with more recent

finish dates appear higher in the list

– Approved investments with the most recent finish date sort to the top of the list.




Plan and Manage



Investments


Investments

Configure Views,


Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r


Requirements


Ready to create

portfolios

11

Prioritizing Investments – Manually Ranking Investments

• You can manually rank investments or set up rule-based rankings using the Waterline view.

• Larger organizations benefit the most from manual ranking rules

• Keeping the number of investments small makes it easier to rank them manually

• Manual ranking works best when there are no preset guidelines for ranking investments, and ranking is done on a case-by-case basis

12

Prioritizing Investments – Rule Based Ranking

• Determine the attributes you will use to rank your investments

• Define the ranking logic for each key attribute

• Give an overall weighted ranking for each investment attribute

13

Plan and Manage – Setting Portfolio Targets• Set the boundaries and guidelines

you need to plan and manage the portfolio investments

• Create targets to analyze the portfolio investments

• Financial and Resource targets are available for any portfolio– Financial Targets

• Total costs, capital costs, operating costs

• Benefit and planned benefits coming from the investments

– Resource Targets• By Unit (either Hour or FTE)• Resource Capacity or Role Capacity




Plan and Manage



Investments


Investments

Configure Views,


Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r


Requirements


Ready to create

portfolios

14

Plan and Manage – Alternative Scenarios for Investments

• Define plans to determine the best scenario to accomplish the portfolio goal

• When you find a desirable plan, set it as the ‘Plan of Record’ in the portfolio

• You can save other plan versions and scenarios for future use




Plan and Manage



Investments


Investments

Configure Views,


Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r


Requirements


Ready to create

portfolios

15

Prepare . . Prepare to use portfolios

16

Preparing to build portfolios

• Prepare your CA PPM system

– Set up the monitoring criteria

– Configure views, reports and workflows

– Set up investment and resource data

17

Set Up Monitoring Criteria• Portfolios provide a snapshot

of investment data.• Portfolios update with actual

investment data on a schedule you define

• Only data you specify is held in the portfolio snapshot

• You select the attributes you want to monitor for each portfolio investment

• You can select either stock attributes or custom attributes




Plan and Manage



Investments


Investments

Configure Views,


Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r


Requirements


Ready to create

portfolios

18

Configuring Views, Reports and Workflows• You must configure CA PPM to

support the investment data you want to monitor in a portfolio

• Configuring CA PPM allows you to view the desired data on portletsand reports

• Examples– To view detailed project cost data

by period, you must have generated cost plans on projects

– To surface risks and issues for projects, you must configure the project object to surface risks and issues

– To record actual time spent on projects, you must set up timesheets




Plan and Manage



Investments


Investments

Configure Views,


Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r


Requirements


Ready to create

portfolios

19

Set Up Investment and Resource Data• Verify that the investments and

the resources are setup • Examples

– To manage a portfolio associated with different currencies, verify you have mutli-currency enabled

– To break down total cost by capital and operating, verify you have set up those cost types

– To plan resource capacity using role-specific breakdowns, verify you have defined roles for your investments

– To create and manage a portfolio of investments, verify you have set up the investments in CA PPM and have assigned resources to them




Plan and Manage



Investments


Investments

Configure Views,


Set up Investment

and Resource Data

Portfolio Manager

System Administrato

r

Portfolio Manager

System Administrato

r


Requirements


Ready to create

portfolios

20

Section 2Creating Portfolios within CA PPM

21

Topics

• Defining portfolio properties

• Defining portfolio sync properties

• Building portfolio content

• Defining detailed planning targets

• Reviewing waterline views for investments

22

General Portfolio Properties

• When creating a new portfolio, there are several fields that may be required based on your current configuration and portfolio needs.

• Common stock fields in the General Section– Owner: The portfolio owner or creator

• Typically an operations manager or director • Has rights to view and edit content• A portfolio can have multiple owners

– Stakeholder: An individual who wants to view and possibly edit portfolio contents• Has rights to view the portfolio and its contents• A portfolio can have multiple stakeholders

23

General Portfolio Properties, cont.

• Start Date/Finish Date: The planning range of data for the portfolio– Portfolio data is clipped to stay within the date range– Dashboard View specifies the default portfolio view or page layout

• Currency: The portfolio currency.• Capacity Unit Type: The resource unit (hours or FTE) for measuring

resource capacity for investments in the portfolio– You can set this only once for a portfolio

• Sync Schedule: How often to refresh portfolio data and associated plans with actual investment data– Appears after you define the initial portfolio properties – You can set up a schedule to refresh the portfolio automatically– You can also sync manually

24

Target Portfolio Attributes

• Total Cost: The total cost the portfolio is targeting to spend during the planning horizon– Aggregate of the capital and operating costs– You cannot set total cost directly

• Capital Cost: The capital cost the portfolio is targeting to spend during the planning horizon

• Operating Cost: The operating cost the portfolio is targeting to spend during the planning horizon

• Currency: The portfolio currency or the currency to use for all investment cost and benefit amounts – If portfolio investments use different currencies, all costs

and benefits roll up and present in the portfolio currency

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Target Portfolio Attributes, cont.

• Benefits: The total benefit the portfolio is targeting to gain during the planning horizon

• Roles: The effort the portfolio is targeting to use during the planning horizon

• Capacity Unit Type: The unit you want to use for the roles target– FTE: An average number based on resources and

• Example – for a two month planning horizon with one FTE planned in month one, and 3 FTE planned in month two, total target resources for the planning horizon is 2 FTE

– Hours: A total number applying to the portfolio planning horizon• Example – if you set a target of 1000 hours for a two-month planning

horizon, you can use a total of 1000 hours for the whole portfolio

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Accessing Portfolios• Click the Portfolios link under Portfolio Management in the

top navigation menu– Link or section names may be different within your CA PPM

instance

• Portfolio “shells” (the portfolio structure) can be maintained by the PMO, PM, RM or Portfolio Managers, depending on the company’s organization

27

Creating Portfolios• When you click Portfolios in the navigation menu, CA

PPM shows the Portfolio List and shows all portfolios you can access.

• If you can create new portfolios, you will see a New button on screen. Click the New button to create a new portfolio.

28

Portfolio Details• After clicking New, CA PPM shows you the Create Portfolio Screen• Populate the data for your new portfolio

– Items with a red star are required– Items with a green arrow can only be entered once

• The fields you see depend on your corporation’s CA PPM configuration

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Set Up a Portfolio Sync Schedule (1)• After you create and save your portfolio, the Sync

Schedule option appears

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Set Up a Portfolio Sync Schedule (2)• Portfolio data is a snapshot of

actual investment data• You can update the snapshot with

actual data on a specific schedule– Manually – Updates the portfolio

data when you click Sync Now– Weekly – Lets you tell CA PPM to

automatically update the portfolio at a specific time on one or more days of the week during specified months• Example – If you select 3 AM,

Wednesday and then all months, CA PPM updates the portfolio snapshot every Wednesday of every week for all months at 3 AM

31

Set Up a Portfolio Sync Schedule (3)• Monthly – Lets you tell CA

PPM to automatically update the portfolio on a specific day or days of a month for one or more specified months

– Example – If you enter 1, 15, 30 and select all months, CA PPM updates the portfolio snapshot on the 1st, 15th and 30th of every month

32

Set Up a Portfolio Sync Schedule (4)• After you set the sync properties, the sync schedule

displays your settings and the last sync date– Note: CA PPM syncrhonizes a portfolio any time you

modify and save the sync schedule

33

Building Portfolio Content• Select the investments that you want to include

• You can preview the contents as you build the portfolio

• There are two ways to include investments:– Based on specific selection/filter criteria

– Manual selection

IMPORTANT NOTE: You cannot have more than 100 investments or 25 roles in a portfolio

34

Portfolio Contents• Navigate to the Contents Editor tab to view/add Investments• You can include all CA PPM investment types • You do not need to build separate portfolios for each Investment

type

35

Portfolio Contents, cont.

• Add/remove contents to/from a portfolio in three ways:– Include investments of a particular investment type

• Adds all instances of the Investment type to the portfolio• Only adds instances you have access to

– Build a Power Filter associated with an investment type in the portfolio• Example – Filter for Projects with a start date of 1/1/12 or later

– Add individual investments• Allows you to manually select the individual items that comprise

the portfolio

• You can combine the methods above when adding/removing contents to/from a portfolio

36

Include / Exclude (1)• To include an investment type, check the box next to it and click

Include• To Exclude an investment type, check the box next to it, then click

Exclude.

IMPORTANT NOTE: If you add a Project and a Program containing the same project to your portfolio, CA PPM will add the Project twice. CA PPM will not warn you the project has been added twice. Having a project added twice will corrupt your portfolio data since the project is now being double-counted.

37

Include / Exclude (2)• After you add the Investment Type to the portfolio, CA

PPM displays a checkmark in the Included column

38

Build a Power Filter (1)• Power filters allow you to further refine the individual

investments added to a portfolio when an investment type is included

• Power filters let you identify specific criteria the investment must meet in order to appear in the portfolio

39

Build a Power Filter (2)• Select the field you want to filter on in the Left

pull-down, then set the set the condition to be met by utilizing the Operator andRight fields.

40

Build a Power Filter (3)• The filters shown below display projects for which a

particular resource is the Project Manager, and that have start dates later than 1/1/12

• To add more than one criterion to the filter, you must utilize the And/Or operand, and add the criteria one by one.

41

Build a Power Filter (4)• Click Save once the Power Filter is complete• CA PPM adds the filter details alongside your

included investment type

42

Adding Individual Investments (1)• Click Add in the Individual Investments section

• CA PPM displays the Investment Filter

43

Adding Individual Investments (2)• Search for the

desired investment(s)– Use the Investment

Type drop-down to help you search

• Check the box next to each investment you want to add, then click Add or Add and Select More

44

View Matching Investments (1)• Check the box next to the Investment Type, then click

View Matching Investments– You may only view the results for one Investment Type at a

time

45

Defining Detailed Planning Targets

• You can view, edit, and distribute the high-level portfolio targets for cost, resource, and benefit in a time-scaled view

• These period-based targets show up on the waterlines view where you can analyze your portfolio performance

• Planning targets may have been set up when the portfolio was created

46

Defining Detailed Planning Targets, cont.

• Navigate to the ‘Targets’ tab within the portfolio• Set the targets and distribute the costs within the

duration of the specified portfolio timeline

47

Portfolio Cost Targets• Target: The aggregated planned cost for the portfolio

investments, including capital and operating costs• Distributed Target: The planned cost for the portfolio

investments as it scales over time within the portfolio horizon

• Variance: The difference between the distributed and approved target amounts

• Distributed Target (Total)• When you edit values, CA PPM places a red tick by the

changed value until you save

48

Portfolio Benefit Targets• Target: The aggregated planned benefit for the portfolio

investments including capital and operating benefits– You initially set this value in the portfolio properties

• Distributed Target: The planned benefit for the portfolio investments as it accrues over time within the portfolio horizon

• Variance The difference between the distributed and approved benefit amount

• Distributed Target (Total)• When you edit values, CA PPM places a red tick by the changed

value until you save

49

Define Role Targets• When you create a

portfolio you can indicate the total overall effort in FTE units or hours

• You can further define the overall effort by specific targets by individual roles.

• To indicate specific roles, navigate to the ‘Targets’ tab and locate the Role Totals section

50

Defining Role Targets, cont.• To specify individual roles, click the ‘Add Roles’

button

• CA PPM displays a list of roles you can include in your portfolio

51

Defining Role Targets, cont.• Target: The planned resource capacity in hours or FTE units for the

portfolio investments over time within the portfolio horizon• Distributed Target: The planned roles for the portfolio investments as it

accrues over time within the portfolio horizon• Variance: The difference between the distributed and approved target

amounts for resource• Distributed Target Total• When you edit values, CA PPM places a red tick by the changed value until

you save

52

Portfolio Waterlines

• Lets you see how planned targets match up with the investments in the portfolio

• By default, approved investments with the most recent finish dates sort to the top of the list

• Lets you analyze your portfolio– Prioritized work with investment attributes, including data

about budget, resources, and benefits– How the portfolio targets spread over the portfolio horizon – Approved and unapproved investments– Initial alignment of the portfolio with the goals– Actual amounts spent on investments compared to the initial

targets of capital and operating costs– Where and when demands exceed targets

53

Portfolio Waterlines, cont.• Use the waterline view as a “what-if” environment to

manipulate items and see the impact• To view the

waterlines, clickthe ‘Waterlines’ tab in the portfolio.

Note: The Waterlinesview is the only viewavailable as part of the portfolio management. To access the remaining portfolio views, install and apply the PMO Accelerator add-in.

54

Configuring the Waterline

• To configure the waterline, start by configuring the columns and adding the information that you want to see within the waterline.

– Click the Options icon and click Configure. The List Column Layout appears.

– Add the items you want to include in the waterline view and click ‘Save’

55

Define Ranking Rules

• Ranking rules determine where investments aper in the waterline view

• Rankings are assigned weights to specific investment attributes

• When ranking calculations are made for all of the investments, approved investments will appear higher in the list ranking.

IMPORTANT NOTE: It is important to think about how you want to build your ranking rules. The more you include the more complex the calculations get and this can become confusing to interpret.

56

Define Ranking Rules, cont.

• The steps to setup ranking rules – Select the primary portfolio constraint for the

waterline

– Select the investment attributes available at the portfolio level and assign weights to the attributes. You can select from all available attributes for all investment types that are included in the portfolio.

– To indicate more importance, assign an attribute greater weight.

57

Defining Ranking Rules, cont.

• To set the rankings, navigate to the Define Ranking Rules (above)

58

Selecting Ranking Attributes• Add rules by

clicking on the ‘Add’ button. You will be presented with all of the investment attributes that are available.

59

Setting The Attribute Ranking• Once you have the attributes selected, set their individual ranking.• For each attribute you can select:

– Ranking Method• Lower is better• Higher is better

– Attribute Weighting (numeric value)– If you select an attribute that is a lookup, you can assign weights to

the individual values of the lookup (highlighted below)

60

Running Ranking Rules

• Once the ranking rules have been set, it is necessary to run the ranking rules.

61

Section 3Evaluating Portfolios

62

Creating Multiple Plans

• You can create multiple plans within a single portfolio that can contain different:

– Start and Finish dates

– Rankings

– Targets

• This allows you to explore portfolio alternatives and save them for future reference

63

Creating Portfolio Plans

• Open your portfolio and click on ‘Plans’

• Select the plan for which you want to create a version and click Copy.

64

Creating a Plan Copy, cont.• Enter the plan

attributes and click on Save.

65

Creating a Plan Copy, cont.• You can now edit the plan properties based on the new

requirements:– I.E. There may be a new Planned Capital cost, or operating cost.

66

Comparing Plans

• Once you change plans, analyze and evaluate those changes to understand the implications of the changes as if the plans are real.

• To compare different versions of a plan by the following factors, use portfolio reports:

– Portfolio constraints

– Investment counts

– Financial metrics (for example, NPV, ROI)

IMPORTANT NOTE: To access and view the portfolio reports that you can use to compare your portfolio plans, install and apply the PMO Accelerator add-in.

67

Section 4Portfolio Scenarios

68

Scenarios (1)Suzy wants to create a new Portfolio spanning the year 2013 that allows her to look at all the active projects as well as any Ideas with the goal of ‘Grow the Business’

– Step 1 – From the Portfolio List view, select New and name the new Portfolio (Scenario 1)

– Step 2 – Enter the details, including the Start Date of 1/1/2013 and Finish Date of 12/31/2013, then Save.

– Step 3 – Leave the Sync Schedule at ‘Manual’– Step 4 - Navigate to the Contents Editor tab, check the box in

front of Projects & Ideas, then click Include– Step 5 – Choose the Build Power Filter link next to Idea, then

choose Left = Goal and Right = Grow the Business. – Step 6 – Add the filter and click Save and Return– Step 7 – Click Sync Now and navigate to the Waterlines tab to

evaluate the Scenario 1 Portfolio

69

Scenarios (2)Sam wants to create a new Portfolio that includes any active 2013 Investment whose name begins with letters between C and H

– Step 1 – From the Portfolio List view, select New and name the new Portfolio (Scenario 2)

– Step 2 – Enter details, including Start Date of 1/1/2013 and Finish Date of 12/31/2013,then Save.

– Step 3 – Leave the Sync Schedule at ‘Manual’– Step 4 - Navigate to the Contents Editor tab and in the

Individual Investments section click Add– Step 5 – Verify the filter is set for all active Investments of any

type, then check the box in front of all investments whose Name starts with the letters between C and H to manually select them and click Add.

– Step 6 – Click Sync Now and navigate to the Waterlines tab to evaluate the Scenario 2 Portfolio.

70

Portfolio Reports

• CA PPM v13.2 includes a set of Portfolio Reports within the PMO Accelerator Solution Pack. Three of these standard reports are new in this version:– Project Portfolio Summary with Charts and Detail

– Portfolio Plan Comparison*

– Portfolio Plan Changes*

– Portfolio Plan Changes - Waterline and Rank*

*= new report for r13.2

71

Section 5PMO Accelerator

72

Project Portfolio Summary - Charts

73

Project Portfolio Summary - Detail

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Portfolio Plan Comparison

75

Portfolio Plan Changes

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Portfolio Plan Changes – Waterline and Rank

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Section 3Evaluating Portfolios

78

Additional Items To Be Aware Of

• ETCs vs. Allocations

• Portfolio Date Ranges

• Adding Custom Attributes To The Portfolio

• Sub-Portfolios

• Cost Type


IT Portfolio Management -the initial Citrix attempt

Erich Kissel Q1, 2014


8080

Often times I find the function and adoption are more difficult than the technology:

1. Promoted Value of IT PPM within the Organization

2. Educated/Simple Demos

3. Inserted self into the current processes (not documented) and added initial data to system

4. Next

Citrix Attempt – Value from OOB


8181

Promoted Value of IT PPM within Org


8282



8383


CA PPM is our main tool, however, we now focus on the PPM processes and not the tool.

“A fool with a tool is still a fool”

- Zen Wisdom


8484


8585


8686


8787


8888

Simple Demo (QA) to Process Actors


8989

Simple Demo (QA) to Process Actors


9090

Current Process in XL1. Listed Investments by Portfolio: GoToMarket, BackOffice and

Foundational

2. Set Priority of all

3. Sequenced/Scheduled

a. System Impact

b. Capital Impact

c. Resources Impact

Inserted Self Into Planning Meetings


9191

● Put available data into CA PPM PPM Production “Combined Portfolio” (unapproved . . . hidden)

● Showed CA PPM PPM Single Source views

● Updated data as plans changed/iterated

● Quality support when users wanted to access Portfolio module

Inserted Self Into Planning Meetings


9292

Added data to system, from disbursed spreadsheets to Single Source

CONTENT REMOVED FOR CONFIDENTIALITY PURPOSES


9393

● Upon CLEAR approvals○ Enter Role Demand

○ Enter Actual Costs

○ Activate Projects

● Implement Financial Management

● Attend quarterly “Re-Alignment” sessions, leveraging and updating system data

Maturing Next


9494

Questions . . .


Use of CA PPM Portfolios atNorth Shore-LIJ

Rego University 2014Sara Strock

February 2014

Page


Portfolios at NSLIJ

Page

• Background – NSLIJ History• Our Solution – New in 2014

• Process – workflow• Portfolio structure – Financial structure• CA PPM Portfolios – Business structure

• Benefits – Short and Long Term


9797

● Developed new PMO processes:

○ Project Lifecycle

○ Project Governance Process

● Project Lifecycle with CA PPM

○ Standard PMI type lifecycle

○ Gaining adoption

○ Executive support

● Project Governance

○ Unique at Hospital System

○ Changing from nearly all unplanned demand to more controlled process

○ Now have a Project Review Board (PRB) that approves new projects

○ Moving to include Capital planning – CA PPM Financials & Portfolios will help to enable this.

Past 2 Years

97


Financials Business Problem: Company Growth by Acquisition

Processes designed for a

small Hospital…

…do not work for a Hospital System

Acquiring new Hospitals and

Physician Practices


IS Capital Budget

And IS Detail Transactions

Business Problem: Non-Integrated Budgets Managed in Excel

Project Budgets in Excel in Project Folders

No ability to aggregate Programs, or Year over Year investments.

Manual Updates

$250 Million dollar budget tracked in Excel! Not integrated with Corp GL, or Purchasing

PeopleSoft Financials


Business Problem: Budget Funding is Complex

2014

2013

2012

2011

2011 2012 2013 2014

Budget Year

Project Execution Year


Multi-Year Cap PlanPortfolio

Cap Tracker (Actuals) Program Roadmap

CRW $1m Funding Program CRW Summary:CRM APPS 01.01.14 $1M

Detail:Hardware Project X 50kSoftware Project Y 150k

CardiologyMuseCRW 1m

Project X 250kProject Y 250kProject Z 500k

Syngo

Budget CommitmentsBalance


Key Success Factor: Adoption

Page

• New IT Finance VP• Fear of Process change “If it ain’t broke”• Had to prove CA PPM could do current process• Fear of Transparency• Then we could move to change

• Process• Organizational behavior


Capital Planning - High Level Workflow

Page

Capital Request

Capital Request

Capital Request (IDEA)

VP Review

IS Finance Rollup/

CIO Review

Finance Review/

Capital Release

Capital Budget Release Project

Funding to Service Lines


Capital Categories (Portfolios)

Page

Capital is categorized and released in one of three ways to NSLIJ IT:

• Corporate Strategic Initiatives - Release of a modest to significant capital to enable and deliver on a corporate mandate capital portfolios for these initiatives are often multi-year

• IT Refresh – Application Refresh and Technology Refresh budgets are large. Include maintenance and refresh of core application and infrastructure over middle term life cycles (3-5 years)

• Hospital– Technology dollars are sometimes reserved in hospital budgets which are independent of IT; These are unplanned projects – close to 15% of IT budget

Corporate

Hospital/ Service

Line funded Project

Requests

IT Refresh Budgets (“Core”)

Annual IT Budgets

Annual IT Capital Spend

Note: The actual capital expenditure of IT will always exceed its corporate allotment due to unplanned hospital requests which are never known until they are received


Alignment of (Portfolio/Program) Structure

Page

The Capital Plan is built on the foundation of a few key elements:

• VP-Aligned Capital Portfolios– Capital is budgeted by VP span of control typically for Applications and Technology Services; Corporate funded initiatives are aligned to a VP but separately accounted for due to their distinct business case/cost estimation

• Service Line (Business Unit) Structure - Services Lines organize their work into Programs with one to many projects based on the demand each period;

CIO

VP Apps

VP Tech Services

Clinical Informatics

Service Lines

Program

ProjectProject

ProjectProject

Project


CA PPM Structure

Page

Capital Request (CA PPM

IDEA)

Capital Portfolio

Rollup

• Capital Requests have been created in CA PPM as “Ideas”• This is the same concept that the Project Review Board (PRB) uses for un-

planned mid-year requests and allows for unfunded projects to be revisited if capital surfaces later in the year (canceled or deferred projects)

• It keeps all “queued approved” project requests in the same list.

• Capital will be managed in “Portfolios”• Portfolios are hierarchical so that individual capital pools can rollup to a larger

IS Capital total to which IS Finance must reconcile for Finance• Portfolios enable “what if scenarios” to allow for separate rollups.

• Portfolio views were refined from CA PPM “Out of the Box” views to meet NSLIJ needs

• Portfolio Views can be exported to Excel natively in CA PPM and PDF reports can be written to provide real-time “polished” reports of the capital portfolios.


Projects & Ideas

PortfolioPortfolio

Portfolio

ProgramsPrograms

Programs

VP VP VP

VP Budget & Control

Multi-Year Forecasts

Strategic Initiative

Implementation

ITMaintenance

Hospital Customizing

Application/Function Master & TCO

Multi-Year Planning

1

2

3

4 45


Sample Program/Project Structure


Selling the Benefits – Prove the transition

Page

• Had to show past process modeled in CA PPM to gain adoption.• Expensive effort• Automating a poorly designed process• However, showed CA PPM capabilities!


Selling the Benefits - Capabilities

Page

• Project budget accountability • Actuals now together with the budget in CA PPM so analysis can take

place.• CA PPM Project number reinforces the budget process.

• Provides traceability of a transaction. • Cost to project, budget to all costs

• Budget status more transparent – view in CA PPM• (Used to be a single individual with a spreadsheet)

• Lifetime cost on Initiatives and deeper analysis• Effort to get this was high……data entry & scrubbing of the hierarchy• More cohesive program structure within our Business Units• Spend patterns, Lifetime cost, etc. Not available through spreadsheets etc.


Selling the Benefits - Future

Page

• Future Integration with PeopleSoft Financials• Eliminate duplicate data entry• Will have a better understanding of budget status (Currently 6wks, should

become 1 to 2 days)• May influence changes to IS budgeting and accounting processes• Hope to improve the Capital Planning process and cycle

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Portfolio Management Terms and Definitions (1)

Term Definition

Alignment How well an investment complies with the business goals of a corporation.

Cost Performance Index (CPI)

The ratio of Budgeted Cost of Work Performed (BCWP) to Actual Cost of Work Performed (ACWP). Equals BCWP divided by ACWP.

Cost Variance (CV)

The difference between how much a task or a project should have cost (Budgeted cost of Work Scheduled minus BCWS) and how much it has actually cost (ACWP).

Investments The Projects, Programs and Other Work a business funds to help achieve its goals. Investments make up a portfolio’s inventory.

Net Present Value (NPV)

The benefit of an investment, minus the cost.

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Term Definition

Portfolio A detailed inventory of Investments used to determine where to invest funds, or when to delay or cancel investments. The financial health of Investments in Portfolios and their alignment to corporate goals can be evaluated via scorecards and scenarios.

Remaining Capacity

Represents the capacity from today through the portfolio finish date.

Remaining Cost Defined by the portfolio start and finish dates based on today.

Return on Investment (ROI)

The profit or loss that results from an investment transaction. ROI is calculated by dividing costs by Net Present Value (NPV).

Risk A measurement of an investment’s likelihood of meeting expectations (for example, finishing on time, within budget, and with the expected quality level).

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Term Definition

Scenarios A model of different sets of portfolio investments and capacity planning based on corporate planning decisions. Scenarios allow you to make “what-if” evaluations for portfolio investments.

Schedule PerformanceIndex (SPI)

The ratio of Budgeted/Planned Cost of Work Performed (BCWP) to Budgeted/Planned Cost of Work Scheduled (BCWS). A value greater than 1 indicates the work is ahead of schedule. A value less than 1 indicates the work is behind schedule.

Schedule Variance The value of what you have accomplished to date versus what you planned to have accomplished to date. SV is calculated as BCWP minus BCWS.

Total Cost The Planned Cost of all investments in the portfolio used to derive the total cost of the portfolio.

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