Daptiv Releases Japanese Language Version of Daptiv PPM to Meet Rapidly Growing Demand from Asia Pacific Region

April 27, 2012 By Leave a Comment

Today we announced general availability of a Japanese language version of Daptiv PPM. The new offering was a direct result of feedback from customers in the Asia Pacific region.

Demand for SaaS software is at an all-time high in Japan, with revenues expected to reach $629.1 million by the end of 2015 (Source: Gartner “Forecast: Software as a Service, All Regions”, 2010-2015, press release Sept 14, 2011). This represents a doubling in growth from 2010 when SaaS revenues reached $315.3 million in Japan.

Click here to read the full press release.

Filed Under: Official Daptiv Blog

The Top 10 Metrics to Track PMO Performance

April 9, 2012 By 1 Comment

The role of the PMO has become more critical than ever in supporting strategic business priorities. As PMOs become more successful, they also need to be more accountable and prove their value. In this blog post we outline our top 10 metrics to track PMO performance. Although a PMO may not be able to track all these metrics immediately, as a PMO grows and matures, it should be able to track the majority of these metrics on a quarterly performance scorecard.

We’ve organized the ten metrics to map to four business drivers of a PMO: (1) Strategic Alignment, (2) Operational Efficiency, (3) Execution and (4) Business Value Delivered.

Strategic Alignment
1) % of Projects Aligned with Strategic Objectives. The number of projects, or weighted cost of projects, that are aligned with at least one strategic objective over the total of projects.

2) Investment Class Targets ($). Set investment targets for Run, Grow, and Transform type of projects and analyze spend variance against these. A simpler alternative is to report the percent of effort/cost going toward ‘Keeping the Lights On’ (KLO) activities for IT.

3) Business Unit Investment Targets ($). Set investment targets for cost and effort devoted to each business unit and analyze spend variance against these.

Operational Efficiency
4) % Resource Utilization. The percentage of time spent on productive activities such as project work, ticket resolution, etc.

5) % Project Effort. For IT PMOs, the percentage of time spent working on projects, as opposed to maintenance, enhancements and tickets. This should be measured against a target to show delivery of new business/technology investments.

6) % Project Churn. The number of projects put on hold or cancelled over the total number of projects in a given period.

Execution
7) % Increase in Project Success Rate (or % Decrease in Failure Rate). This assumes success is defined not just by time and budget, but by delivering the business requirements (based on satisfaction surveys of the business stakeholders post-delivery).

8.) Variance to Budget ($). Cost savings measured by positive variances to budget. This assumes project costs are accurately estimated during planning. Earned Value can also be used for this, for instance looking at the % of projects with a Cost Performance Index (CPI) over 1. CPI = Budgeted Cost of Work Performed (BCWP)/Actual Cost of Work Performed(ACWP). BCWP is Earned Value (this is the PMI definition). PMO will need to monitor CPI on a per project basis.

Business Value Delivered
9) Customer Satisfaction (%). A measure of stakeholder/customer satisfaction of business value delivered based on surveys post-delivery.

10) Business Value Realized. Business value is realized when the right projects are selected and executed at the right time. Selecting the right projects involves estimating Economic Value Add from a project. This is best if based on actual benefits measurements post-project, but in reality the estimated benefits are simpler to calculate tied back to the project delivery date. This can be measured in cost savings, additional revenue, increased customer satisfaction etc. A standard scoring model can be used to normalize across different benefits, and business value points used to demonstrate value delivered.

In future blog posts, we’ll dig into some of these metrics in more detail. Are there metrics you use that you’d elevate to the top 10?

Filed Under: The Business-Driven PMO

2012: The Year of the PMO

April 5, 2012 By 1 Comment

If this week is any indication, 2012 is shaping up to be the Year of the PMO.

A recent survey from project management firm PM Solutions found that PMOs are becoming more influential and entrenched than ever. The “State of the PMO 2012” survey reached out to more than 500 project managers across a number of industries and saw that, in general, PMOs are playing a significantly larger role in strategic functions, putting greater visibility (and greater pressures) on their success. PM Solutions noted that over the last 12 years the number of organizations with a PMO grew by 40 percent – from 47 percent in 2000 to 87 percent in 2012.

Ultimately, this survey reinforces what Daptiv is hearing from our customers – PMOs have become a trusted advisor in the enterprise and must lead the way to enable intelligent investments and cost optimization. They’re making good traction, according to the survey:

• 30% decrease in failed projects
• 25% of projects delivered under budget
• 22% improvement in productivity
• 19% of projects delivered ahead of schedule
• 31% increase in customer satisfaction
• 29% improvement in projects aligned with business objectives
• Cost savings of US$411K per project.

It’s increasingly important for PMO leaders to partner with and provide C-Level executives with the right project intake process to pick investments that will align with this strategic imperative. Indeed, the survey found that PMOs are moving up within many organizations – with 66 percent of PMOs surveyed reporting to an EVP or higher.

Last November, Daptiv forecast that in 2012, organizations would take a more holistic view of their business by using PPM tools to manage end-to-end service portfolios, product delivery, application lifecycle management, and change management programs. Again the PM Solutions survey found that those PMOs managing what were perceived as high-value tasks such as portfolio management were given increased responsibility and viewed as being significant contributors in spearheading significant new initiatives.

We’re only one quarter into 2012, but the stakes are clearly being raised for PMOs to continue delivering in terms of supporting both strategic business goals and the bottom line.

The role of the PMO has become more critical than ever – how has your PMO evolved over the past year?

Filed Under: The Business-Driven PMO

From the Trenches: Q&A with Ken Feyder, Director, Information Services PMO for Coach

March 20, 2012 By Leave a Comment

Daptiv recently sat down with Coach’s Ken Feyder about how the company’s PMO is using Daptiv PPM to support its enterprise IT initiatives.

Q: Ken, tell us a little bit about Coach and your role at the company.

A: Coach designs and produces fine accessories and gifts for women and men, including handbags, small leather goods, business cases, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, jewelry, fragrance and related accessories. The company was founded in 1941 as a family-run workshop. We’ve expanded quite a bit since then, but our team remains committed to upholding our founding principles of quality and integrity that define the company. My job is to oversee Coach’s Information Services’ (IS) PMO Center of Excellence (COE).

Q:  What type of activity does the PMO oversee?  

A: The primary goal of PMO COE is to enhance and support Project Management practice and discipline at Coach IS. We have established and are now reinforcing Coach’s Global IS Project Management methodology. The PMO monitors every project and service request, including global enterprise initiatives, albeit in various capacities. It also supports change management, as well as executive reporting and auditing. Additionally, PMO is the system owner of our PPM solution, Daptiv.

Q: How has the PMO evolved through the years?

A: These days the PMO runs fairly smoothly, which can be attributed to a combination of improved process maturity, project portfolio management (PPM) software, as well as the team’s expertise. In the beginning, however, we didn’t have a dedicated system or team associated with project management. As a result, we had relatively little structure around the process.

Getting a PMO not only off the ground, but tightly integrated into an organization’s culture, was a significant undertaking. For us, it was a three step process. It was the methodology first, the Coach practice second, and then the tools.

Q: How did you introduce PPM software like Daptiv into the mix?

A: We implemented Daptiv PPM in 2008, and knew that gradual adoption of the technology would be a significant factor to success. The PMO team took the approach of training the staff on both the overall project management practice and specific tools like Daptiv. 

First there was a basic introduction, followed by a more intensive five-day project management training for every manager and above in the department, globally. Our organization takes project management very seriously, and the PMO’s mission is supported from the CIO down. Our goal is to educate staff so they understand the importance of this investment and the value of the process and tools.  Recently, we have kicked off the next phase of our PM training initiative, extending PM education options to team members below manager level.

Q: Who uses Daptiv PPM at Coach?

Q: Today, every project at Coach – big or small – is tracked within Daptiv PPM. Every IS employee and every consultant is registered in the software, where they track their time, projects and activities.  This helps us monitor work performed by employees and consultants, and gives us the insight we need to analyze internal versus external labor distribution.

Documents and project plans are also managed through Daptiv PPM.  We’ve leveraged Daptiv PPM to standardize all reports with the same look and feel. Our reports drive the whole process while providing visibility into project work in the department.

Q: Can you discuss the ROI that Coach has achieved after deploying Daptiv PPM?

A:  We don’t look at the ROI strictly in terms of dollars, but rather how Daptiv PPM has enabled us to better communicate within the organization. For example, a member of the PMO runs a bi-weekly Demand Management report in Daptiv PPM, which gets reviewed in meetings with every area in the IS organization. This ensures that new projects and service requests originating in any area of IS are communicated to, and reviewed with all other areas. It helps all departments gain a more holistic perspective on how work is prioritized and resource allocated throughout IS teams and across geographies.

Q: How has that level of communication and collaboration helped Coach?

A: By communicating potential resource needs early on, we can discover interdependencies between systems and teams closer to the project Initiation phase. We’re able to identify and plan resources for projects in advance, instead of discovering them during the execution process. A planned approach to work not only saves time, but also ensures more linear resource utilization –which means fewer “fires” to fight for our teams and better planning on any given project.

Q: How does Coach use Daptiv’s reporting capabilities?

A: Coach relies very heavily on Daptiv reporting. Our reports range from executive portfolio reports and project status reporting, to data anytics, audits, and trending. Among other things, Daptiv PPM helps us gain better insight into what our staff is working on, which in turn helps from an executive standpoint via quarterly trend analysis. The reports, for example, can show how much time is being dedicated to new product development versus production support, and allows us to spot trends.

Q: Coach is a global organization – is Daptiv being used worldwide?
A: Yes. We currently have Daptiv users throughout North America and Asia. Having a single repository of projects gives us visibility to all IS work globally, and ensures that North American projects don’t conflict with other regional initiatives. Additionally, as our projects become more and more international in nature, Daptiv PPM helps us to facilitate communication and collaboration between our global teams.

 

Q: What has your experience been with Daptiv’s customer support?
A: The level of personal support we get has been critical in keeping Daptiv PPM running smoothly for us. We have a dedicated support person at Daptiv that helps with any technical issues or customization we may need. It’s a very personal connection, which helps quite a bit. I compare that to my previous life with another vendor where I would open a ticket and deal with someone across the world that didn’t understand my business. Daptiv is small enough to treat us as individuals with unique requirements, which positions us well for success.

 

Filed Under: Official Daptiv Blog, The Business-Driven PMO

CIO Checklist: Managing IT through Business Volatility

February 14, 2012 By Leave a Comment

We recently blogged about key takeaways from the Gartner Symposium / ITExpo, noting a few things that CIOs are likely to be concerned about in 2012: (1) CIOs want flexibility to fall back to a Plan B, if Plan A doesn’t work out, (2) IT budgets will likely be flat, and (3) IT will focus on creating measurable, financial benefits for the enterprise.

In this “New Normal” environment of business uncertainty, there are some critical steps CIOs should consider to ensure they manage IT through the volatility and maintain healthy relationships with the business.

Here’s the checklist that every senior IT leader should consider for 2012:

 

1.) Create Visibility and Plan Accordingly.

Too many IT organizations are unclear about their priorities and the actual work they do from week to week, including software projects, infrastructure upgrades, enhancements, and “keeping the lights on” work. At a minimum, a CIO should have a well-defined list of projects updated monthly so she can see the forest for the trees. If a CEO needs to scale back costs mid-year or increase investment due to some positive economic signals, a CIO will be able to make strategic and tactical decisions based on accurate information.

 

2.) Implement a Governance Process for Unplanned Demand.

With a baseline understanding of the work being undertaken in an organization, a CIO must ensure that the IT group doesn’t become overloaded with new, unplanned work, especially if resources are tight. Without a governance process, it’s all too easy for a business unit to demand an urgent new project and bring existing work to a standstill due to project overload. Instead, put a steering committee in place to convene monthly or quarterly to prioritize demand and approve new projects.

 

3.) Understand Scope and Capacity for Agile Demand.

Even though it might appear there is budget and resources to take on new work, there may be hidden issues if an organization doesn’t plan in advance. Most IT organizations need to plan for non-project workloads, such as production support and administrative work. In-flight projects should not be interrupted, as this causes excessive churn. In addition, there may be future commitments, such as a new major IT project for a seasonal launch in three months, which will consume resources. If an organization doesn’t account for new projects ahead of existing commitments in a smart way, this can lead to resource contention and delays. Furthermore, if there are strategic reasons to keep some capacity available to manage, say, a potential acquisition, capacity planning enables an IT organization to remain agile and maintain service delivery.

 

4.) Drive IT Consensus at the Corporate Level.

If a CIO is prioritizing on behalf of the business units, it’s the equivalent of having a target on her back and it’s unlikely she’ll survive long. In an era of scarce resources and tough prioritization decisions, it’s critical that these choices are made by the business and not by IT.  I once brought a list of major projects to an executive team meeting. The list was obviously overwhelming, and a VP wondered how the list would be prioritized. “That’s why I’m here” was my response, at which point each VP started lobbying for their pet project. At the end of the meeting a broad consensus was reached based on corporate – not business unit – objectives.

 

5.) Communicate the value of IT in business terms.

CIOs are chief information officers, not chief computing officers. IT is part of the business – not separate from it—and IT must communicate accordingly. IT must lose the habit of speaking in technology terms and learn to express benefits in business-oriented language. A great example is defining IT in terms of business services that align with business groups and capabilities so the business value can be clearly articulated. Implementing a Sales Force Automation (SFA) tool does not tell a business executive anything of value. Telling the Sales VP that you can help him manage the incoming leads and give real-time visibility into the sales pipeline – that’s gold.

 

This checklist is a roadmap to success. If a CIO has most of this covered, she will be well positioned to manage the IT organization through the uncertain times in 2012.

 

 

 

 

Filed Under: Uncategorized
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