James T. Heires Consulting1 Software Portfolio Management Eastern Iowa PMI Chapter Program March, 2002 James T. Heires [email protected].

James T. Heires Consulting1

Software Software Portfolio Portfolio

ManagementManagementEastern Iowa PMI Chapter

ProgramMarch, 2002James T. Heires

[email protected]


“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.”


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


Risk Management

•Software Portfolio Management

IDENTIFY RISKEARLY & OFTEN

Schedule Cost Quality

Resources Tasks

Staffing

Timelines Defects


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


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


1 10 100 1000

Person-M

onths

0.1

1

10

100

1000

10000

MTTD - 60 Days vs Size


1 10 100 1000

MT

TD

- 60 Days

0.01

0.1

1

10

100

1000 Productivity Index vs Size


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


Manage Your Portfolio


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


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


Demonstration...


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


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)


Value Proposition

• Quantitative plan/bid evaluation

• Software visibility and accountability

• Intervention for troubled projects

• Results in powerful corporate

repository

• Reduce and eliminate risk!


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


“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


Questions?


• 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.


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


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

James T. Heires Consulting1 Software Portfolio Management Eastern Iowa PMI Chapter Program March, 2002 James T. Heires [email protected].

Documents

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