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SEMINAR ZONE A
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PORTFOLIO PLANNING PROCESS (3Ps) AT TRANSPORT FOR
LONDON

• How should businesses and application
  organisations measure, manage and prioritise
  their investments in new or existing application
  assets or functionality

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THREE Ps IN A POD

• Nick Youngs Head of Account Management, Surface
  IM

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TfL Operations
6 million passengers/day
3 million psg/day
155,000 psg/day
580km strategic roads
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Surface Transport What Do We Do

• Manage one of the largest bus networks in the
  world
• Manage and develop a strategic network of 580km
  of Londons busiest main roads
• Manage the Congestion Charging and Low Emissions
  Zones
• Operate all of Londons traffic signals
• Deliver transport policing and traffic
  enforcement
• Develop strategies for road safety,
  accessibility, walking, cycling, freight and the
  urban environment
• Regulate taxis and private car hire
• Co-ordinate schemes for mobility transport
• Provide other transport services VCS, River
  Services and Trams

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The Challenge for IM

• Rapid growth 50 projects up to 200 projects
• Overworked with poor control
• No justification for saying No
• Poor reputation for delivery
• Customers all thought they were most important.
• Taken by surprise by business demands

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The Challenge - Questions

• Why are we so busy?
• What are we doing?
• Will the demand stay the same?
• Are we in control?

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The Solution Consultant Speak!

• Portfolio Management is the
• Continuous process of selecting and managing the
  best set of enterprise investments, in terms of
• Projects,
• Resources,
• Assets, and
• Products
• that drive business and stakeholder value

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The Solution Consultant Drawing

• Portfolio Management is not only about Projects
  and Resources, its also managing the resulting
  change to assets over their lifecycle

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What it really means

• Ask customers what they want
• Size and Prioritise
• Plan
• Present and gain support
• Deliver
• Report

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How to do it

• New role IM Account Managers
• 8 Account Managars across 13 Directorates
• Business Planning vs IM Account Planning
• Prioritisation based on Strategy
• Quarterly IM Investment Committee (IMIC)
  Business and IM
• Bi-weekly Project Approval (CIMM)

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Key Business Processes Supported
Corporate process, governance infrastructure
that forges the link between strategic planning
and programme/project delivery
Strategy Planning Business Architecture
Project Portfolio Management
Programme/Project Delivery
Project Accounting
Initiative Screening
Business Plan Review
Task Management
Project Prioritisation
Strategy Formulation
Time Booking
Financial Planning
Account Planning
Deliverables Planning
Resource Capacity Planning
Initiative Development
Dependencies Planning
Dependencies Management
Portfolio Analysis
Risk/Issues Reporting
Progress Reporting
Stage Gate Tracking
Portfolio Reporting
Scenario Planning
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IM Project Portfolio Governance Framework
Project Managers and Team Members
Business Sponsors, Account Managers
IMIC, PPM
PAB, PMO
Quarterly Review
Bi-Weekly Review
0-3 Month Planning Horizon
1 Year Planning Horizon
Gate -1
Gates 0-4
Project Requests
Prioritization Selection
Project Planning
Approved Portfolio
Active Projects
Screened Ideas
Project Execution
Project Reporting
Portfolio Re-evaluation
Account Plan Review
Portfolio Reports
Project Controls
Portfolio Metrics
IM Project Portfolio Planning (3Ps)
SPEARMINT/CIMM
IMIC Information Management Investment
Committee PAB Project Approvals Board
PPM Project Portfolio Management PMO Project
Management Office
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Strategic Alignment
1. DELIVER A RELIABLE EFFECTIVE SERVICE 1.1
Deliver high performing help desktop
services 1.2 Drive down frequency duration of
disruptions 1.3 Deliver reliable connectivity
(eMail Internet) 1.4 Mitigate operational risk
6. IMPROVE IT CAPABILITY SUPPORT 6.1 Attract
retain high performing IT staff 6.2 Develop IT
staff technology and business skills 6.3 Lead on
innovation to help tackle TFLs transport issues
2. DELIVER TFLS STRATEGIC AIMS 2.1 Implements or
enhances a high-visibility system that delivers
a measurable performance improvement to TFL 2.2
Develop IM environment that supports the
emerging Surface Strategy
Surface Transport IM Strategies
5. INCREASE EFFICIENCY VALUE 5.1 Recognise and
take advantage of synergistic opportunities 5.2
Standardise Project IT Solution Delivery
5.3 Standardise communicate IM charging
policy 5.4 Reduce TCO and maximise reuse of IT
investments 5.5 Provide end-to-end visibility of
IT investments across the business
3. SUPPORT BUSINESS GROWTH DEMAND FOR
TECHNOLOGY 3.1 Better understand business
strategies, the impact of change and the need
for IT capacity 3.2 Deliver integrated solutions
supporting common business processes 3.3
Consider SAP during solution options study for
all new business process application
requirements 3.4 Deliver integrated, quality
information that is accessible for analysis
reporting
4. PROMOTE GOOD PRACTICE THROUGH GOVERNANCE
PARTNERSHIP WITH THE BUSINESS 4.1 Recognise
opportunities for effective use of technology in
support of business processes 4.2 Engage the
business early to ensure IM support from
conception of idea, through business analysis
and on to Solution Delivery 4.3 Engage the
Business in steering of IT strategic
initiatives 4.4 Inform, guide and generate
cross-business consensus on IT related
investments 4.5 Create collaborative
relationships with suppliers
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2007/8 Resource Profile
Resource Deficits in Q1/Q2 2007/8 have required
us to push work out into the 2nd half of 2007/8
based on relative priority
Capacity
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Q1 2007/8 Skills Profile

• We are working to align the skills of our
  resources to fit with upcoming demand.
• Particular focus is on increasing the number of
• Business/Technical Analysts
• Solution/Technical Architects
• DBAs
• Whist managing down the number of Developers

6.5
Surplus
3
Deficit
6.5
4.5
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Note Numbers show FTE Surplus/deficit
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Which Management Style?
Aggressive
Pragmatic
Cautious
Mobilise ALL projects as wanted
Mobilise ONLY highest priority projects
Mobilise NO new projects
Increase Capacity by 25 FTEs in Q1
Increase Capacity by 15 FTEs in Q1
Maintain Existing Capacity
Scale the 06/07 IM Capital Budget to c. 12m
Scale the 06/07 IM Capital Budget to c. 12m
Maintain 06/07 IM Capital Budget at c. 6.5m
No Control on Business Enhancements Spend
Control Spend on Business Enhancements
No Further Spend on New Business Enhancements
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Q1 2006/7 IMIC Recommendation
Aggressive
Pragmatic
Cautious
Mobilise ONLY highest priority projects
Control Spend on Business Enhancements
Maintain 06/07 IM Capital Budget at c. 6.2m
Flex Resource Pool by up to 25
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Q1 2007/8 IMIC Recommendation
Aggressive
Pragmatic
Cautious
Increase our involvement in Business projects
Managed more of the Businesss IT spend
Within 07/08 IM Budget c. 6.4m
Maintain Existing Capacity
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Performance indicators
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Got the process, now we need a tool

• OJEU Notice
• c. 20 responses of interest received
• PQQs sent to all respondents
• Pre Qualification Questionnaire (PQQ)
• Tested for
• Commercial Health
• Functional Fit
• 10 suppliers completed and returned the PQQ
• Down selected to 6 candidate COTS packages, 7
  suppliers
• Pre ITT Screening
• 6 candidate COTS packages rigorously screened
  in Evidence Based Assessments to determine
  their Commercial and Functional Fit

Rational Portfolio Manager (Formerly PMOffice
Enterprise)
Enterprise Investment Manager
Project Portfolio Server (Formerly UMT Portfolio
Server)
Clarity (Formerly Niku)
Project Portfolio Manager Enterprise 2005
ChangePoint
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Procurement Strategy

• Trial of up to 3 shortlisted products/suppliers
• Trial to shadow one quarterly cycle of the
  Portfolio Planning Process
• ProSight/BPM only solution deemed worthy of trial
• Trial completed December 2006
• Now doing full implementation to complete in May
  2007

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Selected BPM

• Expertise in portfolio management
• Understand public sector needs and best practice
• Offered viable integrated technology solution
• - ProSight
• - EPK
• Offered fully hosted, supported managed service

according to Gartner BPM is a specialist
portfolio management consultancy focusing on
public sector needs
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ProSight and the 3Ps

• Trial System Configuration is primarily based on
  processes in Blue
• It also includes some functionality to support
  processes in Red, a subsequent project will
  capture requirements and develop functionality
• Processes in Grey are being managed outside of
  the system

Approved Portfolio
Portfolio Planning Process (3Ps)
Project Delivery (CIMM/ SPEARMINT)
10. Plan Stages, Gates Deliverables
8. Prepare Project Schedule
7. Plan Scenarios
9. Review at IMIC
9. Assign Manage Resources
11. Schedule Tasks
6. Analyse Budgets Resource Constraints
1. Validate Prioritise Strategies
17. Review at Project Approvals
12. Track Time
5. Prioritise Projects
13. Manage Costs
2. Gather Data on Existing Projects
16. Report on Projects
14. Track Stages, Gates Deliverables
15. Manage Risks/Issues
4. Review Data Quality
3. Collect Ideas Pipeline Projects
Project Metrics
Quarterly
Weekly, Ad hoc
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Results

• Improved transparency of both senior IM and
  business management into IMs current and future
  workload and its challenges in delivering
• The queue of pipeline projects and their ramp up
  time is apparent
• Better allocation of resources to an agreed
  schedule of works
• Improved perception of professionalism by the
  business toward IM.
• Improved measures and metrics on costs, benefits,
  and status.
• Measures form a basis for process improvement in
  IM

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Critical Success Factors (Gartner)

• TfL followed what we'd proscribe as the 'right'
  path they defined and implemented a process
  first, concentrated on getting their staff to
  follow it, then added a tool. Too many
  prospective PPM tools purchasers focus only on
  the tool, and expect that it will drive process.
  It won't.

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Lessons Learnt

• Process first, then tools. THIS IS CRUCIAL!!!!!
• The process takes time to set up (in this case, 6
  months)
• Adjustment is necessary after setup.....one size
  does not fit all.
• Just having solid data is a major improvement,
  and provides a relationship management effort.

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Questions?
nick.youngs_at_tfl.gov.uk
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SEMINAR ZONE A