EPM-104: Deltek Active Risk Manager (ARM)Solution Deck for PM
Presented by:
Kim Koster, Director or Product Marketing-EPM
April 21, 2011
April 18, 20232
Risk
Finding Success in This Complex Environment
Risk
Project Manager
ProjectTeam
Business Development
Quality Manager
Meet Profit Goals
Win More Business
Deliver On-Time and
On-Budget
Deliver a Quality Product
©2011 Deltek, Inc. All Rights Reserved
0%
20%
40%
60%
80%
100%
120%
January February March April May June July August September October November December January
Per
cen
t Co
mp
lete
Project Duration
Forecast Curve
Plan
Forecast
Today’s Projects..
Source: Construction Industry Institute
No AdvancedWarning
Late Finish
Impact Profitability
April 18, 20233 ©2011 Deltek, Inc. All Rights Reserved
April 18, 20234
ProjectManager
Today’s Top ChallengesVP of Programs
Can’t get information I need!
We are in Constant Crisis Mode!
Our data is wrong!Wasting time manually presenting information!
We can’t execute! I manage by instinct!
©2011 Deltek, Inc. All Rights Reserved
April 18, 20235
Real LifePrograms canceled & systemic problems
©2011 Deltek, Inc. All Rights Reserved
On Aug. 25, 2010, the U.S. Army announced cancellation of the original solicitation for its Ground Combat Vehicle (GCV) program. Defense media network
“Poised at the beginning of a new era in satellite acquisition, the Defense Department continues to see its space programs dogged by significant and persistent cost overruns and sometimes declining capabilities, according to a new Government Accountability Office report”
April 18, 20236
A Crisis Causes Action?Managing when the sky is falling
©2011 Deltek, Inc. All Rights Reserved
Major Program Problem
Margin/Profit Impact
Customer
Requirement
Most corporate initiatives start because… • The customer requires it• Margins are gone • We have really messed up!
April 18, 20237
Why Manage Risk Before a Crisis?
©2011 Deltek, Inc. All Rights Reserved
Customer ResultsRisk & PM Studies• 50% gain in productivity and quality
improvements with risk management
• 53% of IT projects are challenged
• Over Budget
• Over Schedule
• 84% are over budget
• 31% are cancelled
• Annual 10% improvement on delivery of projects
• Avoid Unplanned Cost, Schedule and Technical Surprises
• Improved Business Performance
• 10% reduction in re-occurring losses
• Saving of 6-10% per year on Insurance premiums
Proven Risk Management Improves Performance, Reduces Liability and Saves Money
Unanswered Questions
April 18, 20238 ©2011 Deltek, Inc. All Rights Reserved
Filt
erin
g P
roce
ssP
roce
ss
Ow
ners
Prim
ary
Que
stio
ns a
nd
Con
cern
sProject Manager
Project Manager
Is my project on track?
• Execution to meet delivery expectations
• Meeting profit expectations
• R&O data to make timely decisions
VP of Programs
VP of Programs
How is my portfolio performing?
• Meeting corporate expectations
• Delighting the customer
• Accurate Plans
• R&O data to make timely decisions
• Process Consistency
CFO
How do I accurately forecast sales and profit?
CFO
• Making Money
• Predictability for stockholders
• Compliance
• R&O data to make timely decisions
Customer
Project Team
Internal Executives
Inefficient Processes
April 18, 20239 ©2011 Deltek, Inc. All Rights Reserved
Deliveries Are Impacted
CustomerProject Reports
Subs
CAM
PMRisk Manager Engineerin
g
Scheduler
PCA
CFORisk Officer
Update Schedule
Update Revenue
Team Meeting
Risk Identified
Risk Approved
Update EAC
StockholdersVP of
Programs
April 18, 202310
Ideal Risk Management Solution
©2011 Deltek, Inc. All Rights Reserved
Easy Web Delivery
Easy Data Entry
Standardized Reporting, Analysis
& Metrics
One System for all Risks
Simplifies & Enables
Compliance
Portfolio View of Risk
Risk Management Solution
April 18, 202311
Ideal Risk Management Solution
©2011 Deltek, Inc. All Rights Reserved
Easy Web Delivery
Easy Data Entry
Standardized Reporting, Analysis
& Metrics
One System for all Risks
Simplifies & Enables
Compliance
Portfolio View of Risk
Deltek Active Risk Manager
April 18, 202312
What is Your Spreadsheet Costing You?Customers Save Money
©2011 Deltek, Inc. All Rights Reserved
80% reduction in cost of mitigation by eliminating duplication
75% reduction in time spent identifying and assessing risk
450 man hours per month in reporting, escalating risks, & understanding opportunities
75% saving ($800k) in costs by using a single integrated risk
management system
April 18, 202313
Deltek Active Risk ManagerClients Across the Globe
©2011 Deltek, Inc. All Rights Reserved
14
US Air Force
“..to institutionalize rigorous risk management through one common and consistent risk process delivered by one software package so as to enable on time, at budget, and to technical performance delivery of programs and projects that equip the war fighter to protect the national interests of the USA.
“We see ARM as a ‘game changer’ for the Air Force”
Blaise DuranteDeputy Assistant Secretary for Acquisition
©2011 Deltek, Inc. All Rights ReservedApril 18, 2023
April 18, 202315
The Primary Project Risk Elements
1
2
3
4
Schedule Risk
Cost Risk
Technical Risk
Supplier Risk
©2011 Deltek, Inc. All Rights Reserved
April 18, 202316
Integrated Risk Management
ScheduleRisks
TechnicalRisks
CostRisks
SupplierRisks
Risks Opportunities Issues
Project RiskManagement
Qualitative Quantitative
Value driving mitigations
©2011 Deltek, Inc. All Rights Reserved
April 18, 202317
Capturing Institutional Knowledge Continuous Lifecycle ERM
©2011 Deltek, Inc. All Rights Reserved
n Identification
n Assessment
n Mitigation
n Reviewing
n ReportingAudit Trail
Knowledge Base
CommunicateManage
Feedback Loop
Which Level Are You?
April 18, 202318 ©2011 Deltek, Inc. All Rights Reserved
April 18, 202319
Managing Risk & Opportunity from the top down…
©2011 Deltek, Inc. All Rights Reserved
Global PerspectiveManaging Risk & Opportunity
April 18, 202320 ©2011 Deltek, Inc. All Rights Reserved
Multiple Definable Structures
Color Coded Risk Assessment
April 18, 202321
Understand the Risk & OpportunityManage by Exception
(-)(+)
©2011 Deltek, Inc. All Rights Reserved
April 18, 202322
Scoring a Risk for All RisksConfigurable scoring of impact or cost
Definable Risk Types
Scoring
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April 18, 202323
Standard Risk TemplatesConsistency across the organization
Risk template create consistency
©2011 Deltek, Inc. All Rights Reserved
April 18, 202324
Risk by the NumbersQualitative and quantitative risk scoring
Develop Quantitative Analysis
©2011 Deltek, Inc. All Rights Reserved
April 18, 202325
See the Risk Burn DownYou know where you are…
Manage the process to mitigate the risk
©2011 Deltek, Inc. All Rights Reserved
April 18, 202326
Risk Adjusted ScheduleSee the impact on the project plan
©2011 Deltek, Inc. All Rights Reserved
At 50% confidence our schedule will be 2 ½ months late. Is this acceptable?
However approved and successful mitigation plans will actually deliver the project 1 day early – why? The risk register includes an opportunity to reduce delivery time.
How are we impacting performance?
April 18, 202327
Immediate Notification No more scrambling for information
©2011 Deltek, Inc. All Rights Reserved
Delivering The Most Complete Solution For Program Controls
Customer
Corporate Services
Program Controls
Planning & Scheduling
Earned Value Management
Risk Managem
ent
FinanceInformation Technology
Human Resources
28Complete, Compliant, Connected
©2011 Deltek, Inc. All Rights ReservedApril 18, 2023
Deltek EPM Ecosystem
29
ProP
ricer
Exc
el
Microsoft
Project & P6
MSP, P6 ERP, MRP
SAP, Oracle, &Costpoint
MS
P, MO
SS
& P
6
ER
P
PM Compass
Planning& Scheduling
(Open Plan)
ResourceManagement
(Open Plan)
CostEstimating
(Partner Solution)
CostManagement
(Cobra)
Earned ValueManagement
(Cobra or MPM & wInsight)
RiskManagement
(Active Risk Manager)
Team Member Apps
Power User Apps
Integrations
©2011 Deltek, Inc. All Rights ReservedApril 18, 2023
April 18, 202330
Questions
©2011 Deltek, Inc. All Rights Reserved
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