Considerations to Optimize Container Management

Design a custom reference architecture that meets your requirements.

Analyst Perspective

Containers have become popular as enterprises use DevOps to develop and deploy applications faster. Containers require managed services because the sheer number of containers can become too complex for IT teams to handle. Orchestration platforms like Kubernetes can be complex, requiring management to automatically deploy container-based applications to operating systems and public clouds. IT operations staff need container management skills and training.

Installing and setting up container orchestration tools can be laborious and error-prone. IT organizations must first implement the right infrastructure setup for containers by having a solid understanding of the scope and scale of containerization projects and developer requirements. IT administrators also need to know how parts of the existing infrastructure connect and communicate to maintain these relationships in a containerized environment. Containers can run on bare metal servers, virtual machines in the cloud, or hybrid configurations, depending on your IT needs

Nitin Mukesh
Senior Research Analyst, Infrastructure and Operations
Info-Tech Research Group

Executive Summary

Your challenge

Choosing the right container technology: IT is a rapidly changing and evolving market, with startups and seasoned technology vendors maintaining momentum in everything from container platforms to repositories to orchestration tools. The rapid evolution of container platform components such as orchestration, storage, networking, and system services such as load balancing has made the entire stack a moving target.

However, waiting for the industry to be standardized can be a recipe for paralysis, and waiting too long to decide on solutions and approaches can put a company's IT operations in catch-up mode.

Keeping containers secure: Security breaches in containers are almost identical to operating system level breaches in virtual machines in terms of potential application and system vulnerabilities. It is important for any DevOps team working on container and orchestration architecture and management to fully understand the potential vulnerabilities of the platforms they are using.

Optimize your infrastructure strategy for containers: One of the challenges enterprise IT operations management teams face when it comes to containers is the need to rethink the underlying infrastructure to accommodate the technology. While you may not want to embrace the public cloud for your critical applications just yet, IT operations managers will need an on-premises infrastructure so that applications can scale up and down the same way as they are containerized.

Common ways organizations use containers

A Separation of responsibilities
Containerization provides a clear separation of responsibilities as developers can focus on application logic and dependencies, while IT operations teams can focus on deployment and management instead of application details such as specific software versions and configurations.

B Workload portability
Containers can run almost anywhere: physical servers or on-premise data centers on virtual machines or developer machines, as well as public clouds on Linux, Windows, or Mac operating systems, greatly easing development and deployment.

“Lift and shift” existing applications into a modern cloud architecture. Some organizations even use containers to migrate existing applications to more modern environments. While this approach provides some of the basic benefits of operating system virtualization, it does not provide all the benefits of a modular, container-based application architecture.

C Application isolation
Containers virtualize CPU, memory, storage, and network resources at the operating system level, providing developers with a logically isolated view of the operating system from other applications.

Source: TechTarget, 2021

What are containers and why should I containerize?

A container is a partially isolated environment in which an application or parts of an application can run. You can use a single container to run anything from small microservices or software processes to larger applications. Inside the container are all the necessary executable, library, and configuration files. Containers do not contain operating system images. This makes them lighter and more portable with much less overhead. Large application deployments can deploy multiple containers into one or more container clusters (CapitalOne, 2020).

Containers have the following advantages:

• Reduce overhead costs: Because containers do not contain operating system images, they require fewer system resources than traditional or hardware virtual machine environments.
• Enhanced portability: Applications running in containers can be easily deployed on a variety of operating systems and hardware platforms.
• More consistent operations: DevOps teams know that applications in containers run the same no matter where they are deployed.
• Efficiency improvement: Containers allow you to deploy, patch, or scale applications faster.
• Develop better applications: Containers support Agile and DevOps efforts to accelerate development and production cycles.

Source: CapitalOne, 2020

Container on the cloud or on-premise?

Info-Tech Insight
Start-ups and small businesses that don't typically need to be closely connected to hardware can easily move (or start) to the cloud. Large (e.g. enterprise-class) companies and companies that need to manage and control local hardware resources are more likely to prefer an on-premises infrastructure. For enterprises, on-premises container deployments can serve as a bridge to full public cloud deployments or hybrid private/public deployments. The answer to the question of public cloud versus on premises depends on the specific needs of your business.

Container management

From container labeling that identifies workloads and ownership to effective reporting that meets the needs of different stakeholders across the organization, it is important that organizations establish an effective framework for container management.

Four key considerations for your container management strategy:

01 Container Image Supply Chain
How containers are built

02 Container Infrastructure and Orchestration
Where and how containers run together

03 Container Runtime Security and Policy Enforcement
How to make sure your containers only do what you want them to do

04 Container Observability
Runtime metrics and debugging

To effectively understand container management solutions, it is useful to define the various components that make up a container management strategy.

1: Container image supply chain

To run a workload as a container, it must first be packaged into a container image. The image supply chain includes all libraries or components that make up a containerized application. This includes CI/CD tools to test and package code into container images, application security testing tools to check for vulnerabilities and logic errors, registries and mirroring tools for hosting container images, and attribution mechanisms such as image signatures for validating images in registries.

Important functions of the supply chain include the ability to:

• Scan container images in registries for security issues and policy compliance.
• Verify in-use image hashes have been scanned and authorized.
• Mirror images from public registries to isolate yourself from outages in these services.
• Attributing images to the team that created them.

Source: Rancher, 2022

Info-Tech Insight
It is important to consider disaster recovery for your image registry. As mentioned above, it is wise to isolate yourself from registry disruptions. However, external registry mirroring is only one part of the equation. You also want to make sure you have a high availability plan for your internal registry as well as proper backup and recovery processes. A highly available, fault-tolerant container management platform is not just a runtime environment.

2: Container infrastructure and orchestration

Orchestration tools

Once you have a container image to run, you need a location to run it. That means both the computer the container runs on and the software that schedules it to run. If you're working with a few containers, you can make manual decisions about where to run container images, what to run with container images, and how best to manage storage and network connectivity. However, at scale, these kinds of decisions should be left to orchestration tools like Kubernetes, Swarm, or Mesos. These platforms can receive workload execution requests, determine where to run based on resource requirements and constraints, and then actually launch that workload on its target. And if a workload fails or resources are low, it can be restarted or moved as needed.

Source: DevOpsCube, 2022

Storage

Storage is another important consideration. This includes both the storage used by the operating system and the storage used by the container itself. First, you need to consider the type of storage you actually need. Can I outsource my storage concerns to a cloud provider using something like Amazon Relational Database Service instead? If not, do you really need block storage (e.g. disk) or can an external object store like AWS S3 meet your needs? If your external object storage service can meet your performance and durability requirements as well as your governance and compliance needs, you're in luck. You may not have to worry about managing the container's persistent storage. Many external storage services can be provisioned on demand, support discrete snapshots, and some even allow dynamic scaling on demand.

Networking

Network connectivity inside and outside the containerized environment is also very important. For example, Kubernetes supports a variety of container networking interfaces (CNIs), each providing different functionality. Questions to consider here are whether you can set traffic control policies (and the OSI layer), how to handle encryption between workloads and between workloads and external entities, and how to manage traffic import for containerized workloads. The impact of these decisions also plays a role on performance.

Backups

Backups are still an important task in containerized environments, but the backup target is changing slightly. An immutable, read-only container file system can be recreated very easily from the original container image and does not need to be backed up. Backups or snapshots on permanent storage should still be considered. If you are using a cloud provider, you should also consider fault domain and geo-recovery scenarios depending on the provider's capabilities. For example, if you're using AWS, you can use S3 replication to ensure that EBS snapshots can be restored in another region in case of a full region outage.

3: Container runtime security and policy enforcement

Ensuring that containers run in a place that meets the resource requirements and constraints set for them is necessary, but not sufficient. It is equally important that your container management solution performs continuous validation and ensures that your workloads comply with all security and other policy requirements of your organization. Runtime security and policy enforcement tools include a function for detecting vulnerabilities in running containers, handling detected vulnerabilities, ensuring that workloads are not running with unnecessary or unintended privileges, and ensuring that only other workloads that need to be allowed can connect.

One of the great benefits of (well implemented) containerized software is reducing the attackable surface of the application. But it doesn't completely remove it. This means you need to think about how to observe running applications to minimize security risks. Scanning as part of the build pipeline is not enough. This is because an image without vulnerabilities at build time can become a vulnerable container because new flaws are discovered in its code or support libraries. Instead, some modern tools focus on detecting unusual behavior at the system call level. As these types of tools mature, they can make a real difference to your workload’s security because they rely on actual observed behavior rather than up-to-date signature files.

4: Container observability

What’s going on in there?

Finally, if your container images are being run somewhere by orchestration tools and well managed by security and policy enforcement tools, you need to know what your containers are doing and how well they are doing it. Orchestration tools will likely have their own logs and metrics, as will networking layers, and security and compliance checking tools; there is a lot to understand in a containerized environment. Container observability covers logging and metrics collection for both your workloads and the tools that run them.

One very important element of observability is the importance of externalizing logs and metrics in a containerized environment. Containers come and go, and in many cases the nodes running on them also come and go, so relying on local storage is not recommended.

The importance of a container management strategy

A container management platform typically consists of a variety of tools from multiple sources. Some container management software vendors or container management services attempt to address all four key components of effective container management. However, many organizations already have tools that provide at least some of the features they need and don't want to waste existing licenses or make significant changes to their entire infrastructure just to run containers.

When choosing tools from multiple sources, it's important to understand what needs each tool meets and what it doesn't. This holistic approach is necessary to avoid gaps and duplication of effort.

For example, scanning an image as part of the build pipeline and then rescanning the image while the container is running is a waste of CPU cycles in the runtime environment. Similarly, using orchestration tools and separate host-based agents to aggregate logs or metrics can waste CPU cycles as well as storage and network resources.

Planning a container management strategy

Source: Kubernetes, 2022; Rancher, 2022

Infrastructure considerations

It's important to describe your organization’s current and future infrastructure strategy and how it fits into your container management strategy. It’s all basic for now, but if you plan to move to a virtual machine or cloud provider next year, your container management solution should be able to adapt to your environment now and in the future. Similarly, if you’ve already chosen a public cloud, you may want to make sure that the tool you choose supports some of the cloud options, but full compatibility may not be an important feature.

Infrastructure considerations extend beyond computing. Choosing a container management platform should be compatible with the existing network infrastructure and storage capacity available to your organization. If you have existing policy enforcement, monitoring, and alerting tools, the ideal solution should be able to take advantage of them. Moving to containers can be a game changer for developers and operations teams, so continuing to use existing tools to reduce complexity where possible can save time and money.

Leverage the reference architecture to guide your container management strategy

Using the examples as a guide, complete the tool to strategize your container management

Download the Reference Architecture

Bibliography

Mell, Emily. “What is container management and why is it important?” TechTarget, April 2021.
https://www.techtarget.com/searchitoperations/definition/container-management-software#:~:text=A%20container%20management%20ecosystem%20automates,operator%20to%20keep%20up%20with

Conrad, John. “What is Container Orchestration?” CapitalOne, 24 August 2020.
https://www.capitalone.com/tech/cloud/what-is-container-orchestration/?v=1673357442624

Kubernetes. “Cluster Networking.” Kubernetes, 2022.
https://kubernetes.io/docs/concepts/cluster-administration/networking/

Rancher. “Comparing Kubernetes CNI Providers: Flannel, Calico, Canal, and Weave.” Rancher, 2022.
https://www.suse.com/c/rancher_blog/comparing-kubernetes-cni-providers-flannel-calico-canal-and-weave/

Wilson, Bob. “16 Best Container Orchestration Tools and Services.” DevopsCube, 5 January 2022.
https://devopscube.com/docker-container-clustering-tools/

Drive Ongoing Adoption With an M365 Center of Excellence

Accelerate business processes change and get more value from your subscription by building and sharing thanks to an effective Centre of Excellence.

CLIENT ADVISORY DECK

Drive Ongoing Adoption With an M365 Centre of Excellence

Accelerate business processes change and get more value from your subscription by building and sharing thanks to an effective Centre of Excellence

Research Team:
John Donovan
John Annand
Principal Research Directors I&O Practice

41 builds released in 2021!
IT can no longer be expected to provide training to all users on all features

• Traditional classroom training (online and self-paced) is time consuming and overly generic
• Users tend to hold onto old familiar tools even as new ones roll out
• Citizen Programming comes with a lot of promise but also the spectre of reliving the era of Access ‘97 databases
• Seemingly small decisions around configuration have outsized impacts
• Every enterprises’ journey through adoption is unique

▲20% $ spent in 2021

148% more meetings
66% more users collaborating on documents
40.6B more emails

2021 vs. 2022 Source: Microsoft The Work Trend Index

• Who needs to be in a CoE? What daily tasks do they undertake?
• How do you turn artifacts like best practice documents into actual behavioral change?
• How does CoE differ from governance? And why is it going to be any more successful?
• How does the CoE evolve over time as enterprises become more mature?

CoE Competencies, Membership and Roles
Communication, Standards Templates
Adoption, and Business Success Metrics

Using these deliverables, Info-Tech will help you drive consistency in your enterprise collaboration, increase end-user satisfaction in the tools they are provided, optimize your license spending, fill the gaps between implementation of a technology and realization of business value, and empower end-users to innovate in ways that senior leadership had not imagined.

Executive Summary

Insight

User adoption is the primary focus of the efforts in the CoE

User adoption and setting up guardrails in governance are the focuses of the CoE in its early stages. Purging obsolete data from legacy share servers, and exchange, and rationalize legacy applications that are comparable to Microsoft offerings. The primary goal is M365 excellence, but that needs to be primed with a Roadmap, and laying down clear milestones to show progress, along with setting up quick wins to get buy in from the organization.

Breakdown your CoE into distinct areas for improvement

Due to the size and complexity of Microsoft 365, breaking it into clearly defined divisions makes sense. The parts that need to be fragmented into are, Collaboration, Power Apps, Office tools, Learning, Professional Training and Certifications, Governance and Support. Subject Matter experts needs to keep pace with the ever-changing M365 environment with enhancements continuously being rolled out. (There were 41 build releases in 2021 alone! )

Set up your M365 CoE in a decentralized design

Define how your CoE will be set up. It will either be centralized, distributed, or a combination of both. They all have their strengths and weaknesses; however a distributed CoE can ensure there is buy-in from the various departments across the CoE, as they participate in the decision making and therefore the direction the CoE goes. Additionally, it ensures that each segment of the CoE is accountable for the success of the M365 adoption, its usage, and delivering value to the organization.

Summary

Your Challenge

You have purchased Microsoft 365 for your business, and you have determined that you are not realizing the full value and potential of the product, neither adoption nor usage – for example, you have legacy applications that the user base is reluctant to move away from, whether it be Skype, Jabber, or other collaboration tools available to them. You have released Teams to the organization but may have not shown how useful it is and you have not communicated to the business that it is your new collaboration tool, along with SharePoint Online and OneDrive. How do you fix this problem?

Common Obstacles

There are roadblocks common to all CoEs: lack of in-house expertise, lack of resources (time, budget, etc.) and employee perception of just another burdensome administrative layer. These are exacerbated when building an M365 CoE.

• Constant vendor-initiated change in M365 means expertise always needs updating
• The self-service architecture of M365 is at odds with centralized limits and controls
• M365 is a multitude of services, adopted across a huge swath of the organization compared to the specific capabilities and limited audience of traditional CoEs

Info-Tech’s Approach

Having a clear vision of what business outcomes you want your Microsoft 365 CoE to accomplish is key. This vision helps select the core competencies and deliverables of the CoE.

1. Ongoing measurement and reporting of business value generated from M365 adoption
2. Servant leadership allows the CoE to work closely and deeply with end-users, which builds them up to share knowledge with others
3. Focus and clear lines of accountability ensure that everyone involved feels part of the compromise when decisions are to be made

Info-Tech Insight

The M365 CoE should be somewhat decentralized to avoid an “us versus them” mentality. Having clear KPIs at the center of the program makes it easier to demonstrate improvements and competencies. COMMUNICATE these early successes! They are vital in gaining widespread credibility and momentum.

Charter Mandate Authority to Operate

Mission : To accelerate the value that M365 brings to the organization by using the M365 CoE to increase adoption, build competency through training and best practices, and deliver on end user innovation throughout the business.

Vision Statement: To transform the organization’s efficiencies and performance through an optimized world-class M365 CoE by meeting all KPIs set out in the Charter.

Info-Tech Insights

A mission and vision for your M365 CoE are a necessary step to kick the program off. Not aving clear goals and a roadmap to get there will hinder your progress. It may even stall the whole objective if you cannot agree or measure what you are trying to accomplish

• The scope of the M365 CoE is to build the adoption rate that can meet milestone goals to advance user competency, as well as the maturation of the SMEs in each segment of the CoE leadership and contributors.
• Maturity will be measured through 100% adoption, specifically around collaboration tools and Office apps across the organization that use M365. Strategic value will be measured by core competencies within the CoE.
• SMEs are developed and educated with certifications and other training throughout the course of the CoE development to bring “bench strength” to the vision of optimizing a world-class M365 CoE.
• SMEs will all be certified Microsoft professionals. They will set the standard to be met within the CoE. The SMEs can either be internal candidates or external hires, depending on the current IT department competency.
• Additional resources required will be tech savvy department leads that understand and can help in the training of staff, who also are willing to spend a certain amount of their work time in coaching colleagues.
• They will be assisted by the training through the SMEs providing relevant material and various M365 courses both in class and self-paced online learning using M365 VIVA tools.

Charter Metrics

Areas in Scope:

• Ensure Mission is aligned to the business objectives.
• Form core team for M365 CoE, including steering committee.
• Create document for signoff from business sponsors.
• Build training plans for users, engineers, and admins.
• Document best practices and build standard templates for organizational uniformity.
• Build governance charter and priorities, setting up guardrails early to ensure compliance and security.
• Transition away and retire all legacy on-Prem apps to M365 Cloud apps.
• Build a RACI model for roles and responsibility.

Info-Tech Insights

If meaningful metrics are set up correctly, the CoE can produce results early in the one- or two-year process, demonstrating business value and increasing production amongst staff and demonstrating SME development.

CoE

What are the reason to build an M365 CoE, and what is it expected to deliver?

What It IS NOT

It does not design or build applications, migrate applications, or create migration plans. It does not deploy applications nor does it operate and monitor applications. While a steering committee is a key part of the M365 CoE, its real function is to set the standards to be achieved though metrics that can measure a successful, efficient, and best-in-class M365 operation. It does not set business goals but does align M365 goals to the business drivers. SMEs in the CoE give guidance on M365 best practices and assist in its adoption and users’ competency.

What It IS

M365 CoE means investing in and developing usage growth and adoption while maintaining governance and control. A CoE is designed to drive innovation and improvement, and as a business-wide functional unit, it can break down geographical and organizational silos that utilize their own tools and collaboration platforms. It builds a training and artifacts database of relevant and up-to-date materials.

Why Build It

Benefits that can be realized are:

• Building efficiencies, delivering quality training and knowledge transfer, and reducing risk from an organized and effective governance.
• Consistency in document and information management.
• Reusable templates and blueprints that standardize the business processes.
• Standardized and communicated business policies around security and best practices.
• Overcoming the challenges that comes with the titan of a platform that is M365.

Expected Goals and Benefits With Risk

Demonstrated impact for sustainability
Ensuring value is delivered
Ability to escalate to executive branch

The What?

What does the M365 CoE solve?

• M365 Adoption
• M365 tools templates
• SME in tools deployment and delivery
• Training and education – create artifacts and organize training sessions and certifications
• Empower users into super users
• Build analytics around usage, adoption, and ROI from license optimization

And the How?

How does the M365 CoE do it?

• By defining clear adoption goals and best practices
• By building a dedicated team with the confidence to improve the user experience
• By creating a collection of reusable artifacts.
• By establishing a stable, tested environment ensures users are not hindered in execution of the tools
• By continuously improving M365 processes

What are the Risks?

• All goals must be achievable
• Timeline phases are based on core SME competency of the IT department and the training quality of end users
• Current state of SMEs in house or hired to execute the mandate of the M365 CoE
• Business success – if business is struggling to make profits and grow, its usually the CoE that will get chopped – mainly due to layoffs
• Inability to find SMEs or train SMEs
• Turnover in CoE due to job function changes or attrition
• Overload of day-to-day responsibilities preventing SMEs from executing work for the CoE – Need to align SMEs and CoE steering chair to establish and enable shared responsibilities.

Who needs to be in a CoE for M365

Design the CoE – What model to be used?

What are their daily tasks? Is the CoE centralized, decentralized, or a combination?

Info-Tech Insights

Due to the size and complexity of Microsoft 365, a decentralized model works best. Each segment of the group could in themselves be a CoE, as in governance, training, or collaboration CoE. Maintaining SME in each group will drive the success of the M365 CoE.

Key Competencies for CoE

• Build a team of experts in M365 with sub teams in Products.
• Manage the business processes around M365.
• Train and optimize technical teams.
• Share best practices and create a knowledge base.
• Build processes that are repeatable and self-provisioned.

CoE for M365

What is the Structure? Is it centralized, decentralized, or combination? What are the pros and cons?

Thought Model

How does the CoE differ from governance?

Why is it going to be any more successful?

“These problems already exist and haven't been successfully addressed by governance – how is the CoE going to be any different?”

• Leadership
• Empower end users
• Automation of processes
• Retention policies
• Governance priorities
• Risk management
• Standard procedures
• Set metrics
• Self service
• Training
• SMEs
• Automation
• Innovation

CoE

While M365 governance is an integral part of the M365 CoE, the CoE is a more strategic program aimed at providing guidance, experienced leadership, and training.

The CoE is designed to drive innovation and improvements throughout the organization’s M365 deployment. It will build best practices, create artifacts, and mentor members to become SMEs.

Governance

CoE is a form of collaborative governance. Those responsible for making the rules are the same ones who are working through how the rules are implemented in practice.

The word most associated with CoE is "nurture." The word most associated with governance is "prevent."

The CoE is experimental and innovative and constantly revising its guidance compared to governance, which is opaque and static.

RACI chart for CoE define activities and ownership

The Work

Build artifacts

Templates

Scripts

Reference architecture

Policies definition

Blueprints

Version control

Measure usage and ROI

Quality assurance

Baseline creation and integrity

Steering Committee

Roles and Responsibilities

• Set the goals and metrics for the CoE charter
• Ensure the CoE is aligned to the business objectives
• Clear any roadblocks that may hinder progress for the team leads
• Provide guidance on best practices
• Set expectations for training and certifications
• Build SME strength through mentoring
• Promote and facilitate research into M365 developments and releases
• Ensure knowledge transfer is documented
• Create roadmap to ensure phase KPIs are met and drive toward excellence

Info-Tech Insight

Executive sponsorship is an element of the CoE that cannot be overlooked. If this occurs, the funding and longevity of the CoE will be limited. Additionally, ensure you determine if the CoE will have an end of life and what that looks like.

M365 Governance CoE Team

Governance and Management

After you’ve developed and implemented your data classification framework, ongoing governance and maintenance will be critical to your success. In addition to tracking how sensitivity labels are used in practice, you’ll need to update your control requirements based on changes in regulations, cybersecurity leading practices, and the nature of the content you manage. Governance and maintenance efforts can include:

• Establishing a governance body dedicated to data classification or adding a data classification responsibility to the charter of an existing information security body.
• Defining roles and responsibilities for those overseeing Data Classification
• Establishing KPIs to monitor and measure progress
• Tracking cybersecurity leading practices and regulatory changes
• Developing Standard Operating Procedures that support and enforce a data classification framework

Governance CoE

Tools Used in the Governance CoE Identity – MFA, SSO, Identity Manager, Conditional Access, AD , Microsoft Defender, Compliance Assessments Templates

Security and Compliance - Azure Purview, Microsoft Defender Threat Analytics, Rules-Based Classification (AIP Client & Scanner), Endpoint DLP, Insider Risk Management

Information Management – Audit Log Retention, Information Protection and Governance, Trainable Classifiers

Licenses – Entitlement Management, Risk-Based Conditional Access.

M365 Tools CoE Team

• Collaboration tools are at the center of the product portfolio for M365.
• Need to get users empowered to manage and operate Teams, OneDrive, and SharePoint Online and promote uniform communications and collaborate with document building, sharing, and storing.

Collaboration SME – Teams admin, Exchange admin, SharePoint, One Drive admin, Viva Learning (Premium), and Viva Insights (Premium)

Application SME – Covers all updates and new features related to Office programs

Power BI SME – Covers Power Automate for Office 365, Power Apps for Office 365, and Power BI Pro

Voice and Video – Tools-Calling Plan, Audio Conference (Full), Teams Phone, Mobility

PMO – Manages all M365 products online and in production. Also coordinates enhancements, writes up documentation for updates, and releases them to the training CoE for publication.

Microsoft 365 tools used to support business

• Appointments – Booking
• Blog – Sway
• Browser – Edge
• Cloud Storage – OneDrive
• Collaboration – Teams
• Email and Calendar – Outlook
• Notebook – OneNote
• Planner – Planner
• Presentation – PowerPoint
• Spreadsheet - Excel
• Surveys/Quizzes/Polls - Forms
• Whiteboard - Whiteboard
• Word Processor – Word
• Voice – Teams Phone

M365 Training CoE Team

Training and certifications for both end users and technical staff managing the M365 platform. Ensure that you set goals and objectives with your training schedule.

Training for SMEs can be broken into two categories:

First line training is internal training for users, in the collaboration space. Teams, One Drive, SharePoint Online, Exchange, and specialty training on Office tools – Word, PowerPoint, Excel, and Microsoft Forms.

Second line training is professional development for the SMEs including certifications in M365 admin, Global admin, Teams admin, and SharePoint administrator.

Additional training and certification can be obtained in governance, information management, and in the admin center for licencing optimization and compliance.

Tools used

• Viva topics – Integrated knowledge and expert discovery
• Viva Insight
• Viva Learning
• Viva Connections
• Dynamics 365
• Voice of the customer surveys

Support M365 CoE Team

Support CoE:

In charge of creating a knowledge base for M365. Manages incidents with access, usage, and administering apps to desktop. Manages change issues related to updates in patching.

Help Desk Admin:

Resets passwords when self service fails, force sign out, manages service requests.

Works with learning CoE to populate knowledge base with articles and templates.

Manages end user issues with changes and enhancements for M365.

Supporting Metrics

• Number of calls for M365 support
• Recurring M365 incidents
• Number of unresolved Platform issues
• First call resolution
• Knowledge sharing of M365
• Customer satisfaction
• Turnaround time of tickets created

Roadmap

How does the CoE evolve over time as enterprises become more mature?

• Depending on the complexity and regulatory requirements of the business, baseline governance and rules around external partners sharing internal documents will need to be set up.
• Identifying your SMEs in the organization is a perquisite at the beginning stages of setting up the M365 working group.

• Build a roadmap to get to maturity and competency that brings strategic business value.
• Meet milestone goals through a two-year, three-phase process. Begin with setting up governance guardrails.
• Set up foundational baselines against which metrics will be measured.
• Set up the M365 CoE, at first with target easy wins through group training and policy communications throughout the organization.

How do you turn artifacts like best practice documents into actual behavior change?

Info-Tech Insights

Building Blocks
The building blocks for a change in end user behavior are based on four criteria which must be clearly communicated. Knowledge transfer from SMEs to the training team is key. That in turn leads to effective knowledge transfer, allowing end users to develop skills quickly that can be shared with their teams. Sharing practices leads to best practices and maintaining these in a repository that can be quickly accessed will build on the efficiencies and effectiveness of the employees.

How Do You Empower End Users to Innovate?

Info-Tech Insights

Understand the Vision

Empowering End users starts with understanding the business vision that is embedded into the M365 CoE charter.

Ensure that the business innovation goals are aligned to the organizational strategies.

The innovative strategies need to be clearly communicated to the employees and the tools to achieve this needs to be mapped out and trained. Clearly lay out the goals, outcomes, and expectations.

End users need to understand how the M365 CoE will assist them in their day-to-day operations, whether in the collaboration space with their colleagues, or with power BI that assists them in their decision making though analytics.

The Right Resources

Arm your team with the resources they need to be successful. Building use cases as part of the training program will give the employees insight into how the M365 tools can be used in their daily work environment. It will also address the pervasive use of nonstandard tools as is seen throughout organizations that are operated in a vacuum.

Empowering your user base though the knowledge transfer borne through the building of artifacts that deal with real life examples that join the dots for employees.

By painting a picture of how the innovative use of the M365 platform can be achieved, users will feel empowered and use those use cases to build out their own innovative ideas.

Hybrid Work

Digital fabric

Collaboration – Communication – Creation

Cloud Services – Innovative Apps – Security

Productivity anywhere any place

Shared working documents in secure cloud

Mesh for Microsoft Teams/Viva

Power apps and dataverse for Teams

Self Service M365

My Apps

My Sign-Ins

My Groups

My Staff

My Access

My Account

Password reset

Sample Best Practices
Tools and Standards Templates

Then communicate them

Collaboration Best Practices

Sharing documents

Real time co-authoring

Comment

Meet

Mobile

Version History

Security Best Practices

Default Security Settings

Microsoft Security Score

Enable Alert Policies

Assign RBAC for Admins

Enable Continuous Access Evaluation

Admin Roles Best Practices in M365

• Two or three global admins in tenant/limit usage of secondary admin roles
• See Admin Portal
• •Screen shots: Best Practices Securing M365

Business Success Metrics for M365 CoE

What does success look like?

• Are you aligning the M365 metrics to business goals?
• Are your decisions data driven?
• Are you able to determine opportunities to improve with your metrics – continuous process improvement?
• Are you seeing productivity gains, and are they being measured?

Activity Output

Start building your M365 CoE and considering the steps for the Phase 1 checklist

BUILD A FOUNDATIONAL BASELINE

Step 1

1. Select Resources to create a CoE working group
2. Define your goals and objectives
3. Identify SMEs within the business and do a gap analysis
4. Build the M365 charter, mission, and vision
5. Build consensus and sponsorship from C suite
6. Create an organizational M365 framework that provides best coverage for all touch points to the platform, from support to training to controls.
7. Determine the type of CoE you want to create that fits your business (centralized, distributed, or a combination).

Step 2

1. Build training plans for SMEs and M365 teams
2. Populate company intranet with artifacts, knowledge articles, and user training portal with all things M365
3. Build out best practice workbooks, tools, and templates that encompass all departments
4. Create roles and responsibilities matrix
5. Identify “super users” in departments to assist with promoting learning and knowledge sharing.
6. Develop Metrics scorecards on success criteria ensuring they align to business goals

Step 3

1. Rational M365 licensing
2. Create communication plan promoting CoE and M365 advantages
3. Align your governance posture and building guardrails
4. Identify legacy apps that can be retired and replaced
5. Train support team and analysts with metrics supporting M365 CoE goals
6. Create baseline metrics with clear alignment to business KPIs

Related Blueprints

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• One small step to cloud, one big leap to Office 365. The key is to look before you leap

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Bibliography

“Five Guiding Principles of a successful Center of Excellence” Perficient, n.d. Web.

“Self Service in Microsoft 365.” Janbakker.tech, n.d. Web.

“My Apps portal overview.” Microsoft, June 2, 2022. Web.

“Collaboration Best Practices Microsoft365.” Microsoft, n.d. Web.

“Security Best Practices Microsoft 365” Microsoft, July 1, 2022. Web.

Develop a Project Portfolio Management Strategy

Drive IT project throughput by throttling resource capacity.

Analyst Perspective

“Tactics without strategy is the noise before defeat.” – Sun Tzŭ

"Organizations typically come to project portfolio management (PPM) with at least one of two misconceptions: (1) that PPM is synonymous with project management and (2) that a collection of PPM processes constitutes a PPM strategy.

Both foundations are faulty: project management and PPM are separate disciplines with distinct goals and processes, and a set of processes do not comprise a strategy – they should flow from a strategy, not precede one. When built upon these foundations, the benefits of PPM go unrealized, as the means (i.e. project and portfolio processes) commonly eclipse the ends of a PPM strategy – e.g. a portfolio better aligned with business goals, improved project throughput, increased stakeholder satisfaction, and so on.

Start with the end in mind: articulate a PPM strategy that is truly project portfolio in nature, i.e. focused on the whole portfolio and not just the individual parts. Then, let your PPM strategy guide your process goals and help to drive successful outcomes, project after project." (Barry Cousins, Senior Director of Research, PMO Practice, Info-Tech Research Group)

Our understanding of the problem

This Research Is Designed For:

• CIOs who want to maximize IT’s fulfillment of both business strategic goals and operational needs.
• CIOs who want to better manage the business and project sponsors’ expectations and satisfaction.
• CIOs, PMO directors, and portfolio managers who want a strategy to set the best projects for the highest chance of success.

This Research Will Help You:

• Get C-level buy-in on a strategy for managing the project portfolio and clarify their expectations on how it should be managed.
• Draft strategy-aligned, high-level project portfolio management process description.
• Put together a strategic plan for improving PPM processes to reclaim wasted project capacity and increase business satisfaction of IT.

This Research Will Also Assist:

• Steering committee and C-suite management who want to maximize IT’s value to business.
• Project sponsors who seek clarity and fairness on pushing their projects through a myriad of priorities and objectives.
• CIOs, PMO directors, and portfolio managers who want to enable data-driven decisions from the portfolio owners.

This Research Will Help Them:

• Optimize IT’s added value to the business through project delivery.
• Provide clarity on how IT’s project portfolio should be managed and the expectations for its management.
• Improve project portfolio visibility by making trustworthy project portfolio data available, with which to steer the portfolio.

Executive Summary

Situation

• As CIO, there are too many projects and not enough resource capacity to deliver projects on time, on budget, and in scope with high quality.
• Prioritizing projects against one another is difficult in the face of conflicting priorities and agenda; therefore, projects with dubious value/benefits consume resource capacity.

Complication

• Not all IT projects carry a direct value to business; IT is accountable for keeping the lights on and it consumes a significant amount of resources.
• Business and project sponsors approve projects without considering the scarcity of resource capacity and are frustrated when the projects fail to deliver or linger in the backlog.

Resolution

• Create a coherent strategy to maximize the total value that projects deliver as a whole portfolio, rather than a collection of individual projects.
• Ensure that the steering committee or senior executive layer buys into the strategy by helping them understand why the said strategy is necessary, and more importantly, why the strategy is valuable to them.
• Translate the strategic expectations to specific, tangible goals, which are realized through a suite of project portfolio management processes tailored to your organization and its culture.
• Putting into place people, processes, and tools that are sustainable and manageable, plus a communication strategy to maintain the stakeholder buy-in.

Info-Tech Insight

1. Time is money; therefore, the portfolio manager is an accountant of time. It is the portfolio manager’s responsibility to provide the project portfolio owners with reliable data and close the loop on portfolio decisions.
2. Business satisfaction is driven by delivering projects that align to and maximize business value. Use Info-Tech’s method for developing a PPM strategy and synchronize its definition of “best projects” with yours.

Projects that deliver on strategic goals of the business is the #1 driver of business satisfaction for IT

Info-Tech’s CIO Business Vision Survey (N=21,367) has identified a direct correlation between IT project success and overall business satisfaction with IT.

Reported Importance: Initially, when CIOs were asked to rank the importance of IT services, respondents ranked “projects” low on the list – 10 out of a possible 12.

Actual Importance: Despite this low “reported importance,” of those organizations that were “satisfied” to “fully satisfied” with IT, the service that had the strongest correlation to high business satisfaction was “projects,” i.e. IT’s ability to help plan, support, and execute projects and initiatives that help the business achieve its strategic goals.

On average, executives perceive IT as being poorly aligned with business strategy

Info-Tech’s CIO Business Vision Survey data highlights the importance of IT projects in supporting the business achieve its strategic goals. However, Info-Tech’s CEO-CIO Alignment Survey (N=124) data indicates that CEOs perceive IT to be poorly aligned to business’ strategic goals:

• 43% of CEOs believe that business goals are going unsupported by IT.
• 60% of CEOs believe that improvement is required around IT’s understanding of business goals.
• 80% of CIOs/CEOs are misaligned on the target role for IT.
• 30% of business stakeholders* are supporters of their IT departments.
(Source: Info-Tech CIO/CEO Alignment Diagnostics, * N=32,536)

Efforts to deliver on projects are largely hampered by causes of project failure outside a project manager’s control

The most recent data from the Project Management Institute (PMI) shows that more projects are meeting their original goals and business intent and less projects are being deemed failures. However, at the same time, more projects are experiencing scope creep. Scope creeps result in schedule and cost overrun, which result in dissatisfied project sponsors, stakeholders, and project workers.

Meanwhile, the primary causes of project failures remain largely unchanged. Interestingly, most of these primary causes can be traced to sources outside of a project manager’s control, either entirely or in part. As a result, project management tactics and processes are limited in adequately addressing them.

Project portfolio management (PPM) can improve business alignment of projects and reduce chance of project failure

PPM is about “doing the right things.”

Interrelated organizational processes by which an organization evaluates, selects, prioritizes, and allocates its limited internal resources to best accomplish organizational strategies consistent with its vision, mission, and values. (PMI, Standard for Portfolio Management, 3rd ed.)

Selecting and prioritizing projects with the strongest alignment to business strategy goals and ensuring that resources are properly allocated to deliver them, enable IT to:

1. Improve business satisfaction and their perception of IT’s alignment with the business.
2. Better engage the business and the project customers.
3. Minimize the risk of project failure due to changing organizational/ project vision, goals, and objectives.

"In today’s competitive business environment, a portfolio management process improves the linkage between corporate strategy and the selection of the ‘right’ projects for investment. It also provides focus, helping to ensure the most efficient and effective use of available resources." (Lou Pack, PMP, Senior VP, ICF International (PMI, 2015))

PPM is a common area of shortcomings for IT, with much room for improvement

Info-Tech’s IT Management & Governance Survey (N=879) shows that PPM tends to be regarded as neither an effective nor an important process amongst IT organizations.

55% ... of IT organizations believe that their PPM processes are neither effective nor important.

21% ... of IT organizations reported having no one responsible or accountable for PPM.

62% ... of projects in organizations effective in PPM met/exceeded the expected ROI (PMI, 2015).

In addition to PPM’s benefits, improving PPM processes presents an opportunity for getting ahead of the curve in the industry.

Info-Tech’s methodology for developing a PPM strategy delivers extraordinary value, fast

Our methodology is designed to tackle your hardest challenge first to deliver the highest-value part of the deliverable. For developing a PPM strategy, the biggest challenge is to get the buy-in of the executive layer.

"Without senior management participation, PPM doesn’t work, and the organization is likely to end up with, or return to, a squeaky-wheel-gets-the-grease mindset for all those involved." (Mark Price Perry, Business Driven Project Portfolio Management)

In the first step of the blueprint, you will be guided through the following steps:

1. Choose the right PPM strategy: driven by the executives, supported by management.
2. Objectively assess your current project portfolio with minimal effort to build a case for the PPM strategy.
3. Engage the executive layer to get the critical prerequisite of a PPM strategy: their buy-in.

A PPM strategic plan is the end deliverable of this blueprint. In the first step, download the pre-filled template with content that represents the most common case. Then, throughout the blueprint, customize with your data.

Use this blueprint to develop, or refine, a PPM strategy that works for your organization

Get buy-in for PPM strategy from decision makers.

Buy-in from the owners of project portfolio (Steering Committee, C-suite management, etc.) is a critical prerequisite for any PPM strategy. This blueprint will give you the tools and templates to help you make your case and win the buy-in of portfolio owners.

Connect strategic expectations to PPM process goals.

This blueprint offers a methodology to translate the broad aim of PPM to practical, tactical goals of the five core PPM processes, as well as how to measure the results. Our methodology is supported with industry-leading frameworks, best practices, and our insider research.

Develop your PPM processes.

This blueprint takes you through a series of steps to translate the process goals into a high-level process description, as well as a business case and a roadmap for implementing the new PPM processes.

Refine your PPM processes.

Our methodology is also equally as applicable for making your existing PPM processes better, and help you draft a roadmap for improvement with well-defined goals, roles, and responsibilities.

Info-Tech’s PPM model consists of five core processes

There are five core processes in Info-Tech’s thought model for PPM.

These processes create an infrastructure around projects, which aims to enable:

1. Initiation of the “best” projects with the right resources and project information.
2. Timely and trustworthy reporting to facilitate the flow of information for better decision making.
3. Proper closure of projects, releasing resources, and managing benefits realization.

PPM has many moving pieces. To ensure that all of these processes work in harmony, you need a PPM strategy.

De-couple project management from PPM to break down complexity and create flexibility

Tailor project management (PM) processes to fit your projects.

Info-Tech’s PPM thought model enables you to manage your project portfolio independent of your PM methodology or capability. Projects interact with PPM via:

• A project charter that authorizes the use of resources and defines project benefits.
• Status reports that feed up-to-date, trustworthy data to your project portfolio.
• Acceptance of deliverables that enable proper project closure and benefits reporting.

Info-Tech’s PPM strategy is applicable whether you use Agile, waterfall, or anything in between for PM.

Learn about project management approach for small projects in Info-Tech’s Tailor PM Processes to Fit Your Projects blueprint.

Info-Tech’s approach to PPM is informed by industry best practices and rooted in practical insider research

Info-Tech uses PMI and ISACA frameworks for areas of this research.

PMI’s Standard for Portfolio Management, 3rd ed. is the leading industry framework, proving project portfolio management best practices and process guidelines.	COBIT 5 is the leading framework for the governance and management of enterprise IT.

In addition to industry-leading frameworks, our best-practice approach is enhanced by the insights and guidance from our analysts, industry experts, and our clients.

33,000+ Our peer network of over 33,000 happy clients proves the effectiveness of our research.

1000+ Our team conducts 1,000+ hours of primary and secondary research to ensure that our approach is enhanced by best practices.

Re-position IT as the “facilitator of business projects” for PPM success

CASE STUDY

Industry: Construction
Source: Info-Tech Client

Chaos in the project portfolio

At first, there were no less than 14 teams of developers, each with their own methodologies and processes. Changes to projects were not managed. Only 35% of the projects were completed on time.

Business drives, IT facilitates

Anyone had the right to ask for something; however, converting ideas to a formal project demand required senior leadership within a business division getting on board with the idea.

The CIO and senior leadership decided that projects, previously assigned to IT, were to be owned and driven by the business, as the projects are undertaken to serve its needs and rarely IT’s own. The rest of the organization understood that the business, not IT, was accountable for prioritizing project work: IT was re-positioned as a facilitator of business projects. While it was a long process, the result speaks for itself: 75% of projects were now being completed on time.

Balancing the target mix of the project portfolio

What about maintaining and feeding the IT infrastructure? The CIO reserved 40% of IT project capacity for “keeping the lights on,” and 20% for reactive, unplanned activities, with an aim to lower this percentage. With the rest of the time, IT facilitated business projects

Three key drivers of project priority

1. Does the project meet the overall company goals and objectives?
   “If they don't, we must ask why we are bothering with it.”
2. Does the project address a regulatory or compliance need?
   “Half of our business is heavily regulated. We must focus on it.”
3. Are there significant savings to be had?
   “Not soft; hard savings. Can we demonstrate that, after implementing this, can we see good hard results? And, can we measure it?”

"Projects are dumped on IT, and the business abdicates responsibility. Flip that over, and say ‘that's your project’ and ‘how can we help you?’"

Use these icons to help direct you as you navigate this research

Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project.

This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization.

Info-Tech offers various levels of support to best suit your needs

Diagnostics and consistent frameworks used throughout all four options

Develop a PPM strategy – project overview

	1. Get executive buy-in for your PPM strategy	2. Align PPM processes to your strategic goals	3. Complete your PPM strategic plan
Best-Practice Toolkit	1.1 Choose the right PPM strategy for your organization 1.2 Translate PPM strategy expectations to specific process goals	2.1 Develop and refine project intake, prioritization, and resource management processes 2.2 Develop and refine portfolio reporting, project closure, and benefits realization processes	3.1 Select a right-sized PPM solution for supporting your new processes 3.2 Finalize customizing your PPM Strategic Plan Template
Guided Implementations	Scoping call: discuss current state of PPM and review strategy options. How to wireframe realistic process goals, rooted in your PPM strategic expectations, that will be sustained by the organization.	Examine your current-state PPM process and create a high-level description of the target-state process for each of the five PPM processes (1-2 calls per each process).	Assess your PPM tool requirements to help support your processes. Determine the costs and potential benefits of your PPM practice.
Onsite Workshop	Module 1: Set strategic expectations and realistic goals for the PPM strategy	Module 2: Develop and refine strategy-aligned PPM processes	Module 3: Compose your PPM strategic plan
	Phase 1 Outcome: Analysis of the current state of PPM Strategy-aligned goals and metrics for PPM processes	Phase 2 Outcome: PPM capability levels High-level descriptions of near- and long-term target state	Phase 3 Outcome: PPM tool recommendations Cost-benefit analysis Customized PPM strategic plan

Workshop overview

Contact your account representative or email Workshops@InfoTech.com for more information.

Develop a Project Portfolio Management Strategy

PHASE 1

Get Executive Buy-In for Your PPM Strategy

Phase 1 outline

Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

Guided Implementation 1: Get executive buy-in for your PPM strategy

Proposed Time to Completion: 2 weeks

Prepare to get to value early with step 1.1 of this blueprint

The first step of this blueprint will help you define your PPM strategy and get executive buy-in for it using section one of Info-Tech’s PPM Strategic Plan Template.

Where traditional models of consulting can take considerable amounts of time before delivering value to clients, Info-Tech’s methodology for developing a PPM strategy gets you to value fast.

In the first step of this blueprint, you will define your PPM strategy and prepare an executive presentation to get buy-in for the strategy. The presentation can be prepared in just a few hours.

• The activities in step 1.1 of this blueprint will help you customize the slides in section 1 of Info-Tech’s PPM Strategic Plan Template.
• Section one of the Template will then serve as your presentation document.

Once you have received buy-in for your PPM strategy, the remainder of this blueprint will help you customize section 2 of the Template.

• Section 2 of the Template will communicate:
  • Your processes and process goals.
  • Your near-term and long-term action items for implementing the strategy.
  • Your PPM tool requirements.
  • The costs and benefits of your PPM strategy.

Download Info-Tech’s PPM Strategic Plan Template.

Step 1.1: Choose the right PPM strategy for your organization

This step will walk you through the following activities:

• Perform a leadership mandate survey.
• Choose your PPM strategy.
• Calculate your resource capacity for projects.
• Determine overall organizational demand for projects.
• Prepare an executive presentation of the PPM strategy.

This step involves the following participants:

• CIO
• PMO Director/Portfolio Manager
• Project Managers
• IT Managers

Outcomes of this step

• A PPM strategy
• A resource supply/project demand analysis
• An executive brief presentation
• Executive buy-in for the PPM strategy

“Too many projects, not enough resources” is the reality of most IT environments

In today’s organizations, the desires of business units for new products and enhancements, and the appetites of senior leadership to approve more and more projects for those products and services, far outstrips IT’s ability to realistically deliver on everything.

The vast majority of IT departments lack the resourcing to meet project demand – especially given the fact that day-to-day operational demands frequently trump project work.

As a result, project throughput suffers – and with it, IT's reputation within the organization.

In these environments, a PPM strategy is required.

A PPM strategy should enable executive decision makers to make sense of the excess of demand and give IT the ability to prioritize those projects that are of the most strategic value to the business.

With the right PPM strategy, IT can improve project outcomes across its portfolio and drive business value – all while improving the workloads of IT project staff.

Info-Tech has two PPM strategy options that you can start to deploy today

This step will help you choose the most suitable option, depending on your project pain points and current level of executive engagement in actively steering the portfolio.

Each of these strategy options is driven by a set of specific strategic expectations to help communicate your PPM goals. See the following slides for an articulation of each strategy option.

A top-down, executive driven strategy is the optimal route, putting leadership in a position to best conduct the portfolio

Option A: Top-Down, Executive Driven Strategy

Strategic Expectations:

• Project Throughput: Maximize throughput of the best projects.
• Portfolio Visibility: Ensure visibility of current and pending projects.
• Portfolio Responsiveness: Make the portfolio responsive to executive steering when new projects and changing priorities need rapid action.
• Resource Utilization: Minimize resource waste and optimize the alignment of skills to assignments.
• Benefits Realization: Clarify accountability for post-project benefits attainment for each project, and facilitate the process of tracking/reporting those benefits.

Info-Tech Insight

Serve the executive with insight before you impede the projects with governance. This strategy option is where Info-Tech sees the most PPM success. A strategy focused at improving decision making at the executive layer will both improve project outcomes and help alleviate project workloads.

A bottom-up strategy can help project managers and teams succeed where insight into the big picture is lacking

Option B: Bottom-Up, Project Manager Driven Strategy

Strategic Expectations:

• Project Management Governance: All projects consuming IT resources will be continually validated in terms of best-practice process compliance.
• Project Risk Management: Identify risks and related mitigation approaches for all high-risk areas.
• Stakeholder Management: Ensure that project stakeholders are identified and involved.
• Project Manager Resourcing: Provide project managers as needed.
• Project-Level Visibility: Provide access to the details of project management processes (planning and progress) as needed.

Info-Tech Insight

Right-size governance to maximize success. Project management and governance success don’t necessarily equal project success. Project management processes should be a means to an end (i.e. successful project outcomes), and not an end in themselves. Ensure the ends justify the means.

Most recurring project challenges require a top-down portfolio management approach

While project management is a key ingredient to project success, tying to solve endemic project problems with project management alone won’t improve results over the long term.

Why Top-Down is a better starting point than Bottom-Up.

The most common IT project problems – schedule and budget overruns, scope creep, and poor quality – can ultimately, in the vast majority of cases, be traced back to bad decisions made at the portfolio level:

• The wrong projects get greenlighted.
• Shifting leadership priorities and operational demands make project plans and estimated delivery dates obsolete from the start.
• Too many projects get approved when there are not enough resources to effectively work on them all.

No amount of project management rigor can help alleviate these common root causes of project failure.

With a top-down PPM strategy, however, you can make sure that leadership is informed and engaged in making the right project decisions and that project managers and teams are situated for success.

"There is nothing so useless as doing efficiently that which should not be done at all." (Peter Drucker (quoted in Lessing))

Info-Tech Insight

Get Strategic About Project Success.

The difference between project management and project portfolio management comes down to doing things right vs. doing the right things. Both are important, no doubt; but doing the wrong things well doesn’t provide much value to the business in the long run.

Get insight into the big picture with a top-down strategy before imposing more administrative overhead on project managers and leads.

Perform a leadership mandate assessment to gauge executive needs and expectations

INPUT: Leadership expectations for portfolio and project management.

OUTPUT: Leadership mandate bar chart

Materials: Tab 6 of Info-Tech’s PPM High-Level Supply-Demand Calculator

Participants: Portfolio manager (or equivalent), PPM strategy sponsor(s), CIO and other members of senior management

Before choosing your strategy option, survey the organization’s leadership to assess what they’re expecting from the PPM strategy.

Use the “Leadership Mandate Survey” (located on tab 6 of Info-Tech’s PPM High-Level Supply-Demand Calculator) to assess the degree to which your leadership expects the PPM strategy to provide outcomes across the following capabilities: portfolio reporting, project governance, and project management.

• Deploy the 12-question survey via individual one-on-one meetings or group working sessions with your boss (the PPM strategy sponsor) as well as with the CIO and other senior managers from within IT and the business.
  • If you cannot connect with the executive layer for this survey, do your best to estimate their responses to complete the survey.
• The survey should help distinguish if executives are looking for portfolio management or project management. It should be one input that informs your choice of strategy option A or B.
  • If leadership is looking primarily for project management, you should proceed to Info-Tech’s Tailor Project Management Processes that Fit Your Projects blueprint.

Refer to the next slide for assistance analyzing the outputs in tab 6 and using them to inform your choice of strategy.

How to make use of the results of the leadership survey

Customize Info-Tech’s PPM Strategic Plan Template. Insert screenshots of the survey and the bar graph from tab 6 of the PPM High-Level Supply-Demand Calculator onto slides 7 and 8, “PPM Strategy Leadership Mandate,” of the PPM Strategic Plan Template.

Proceed with the right PPM strategy for your organization

Based upon the results of the “Leadership Mandate Survey,” and your assessment of each strategy option as described in the previous slides, choose the strategy option that is right for your IT department/PMO at this time.

"Without a strategic methodology, project portfolio planning is frustrating and has little chance of achieving exceptional business success." (G Wahl (quoted in Merkhofer))

Option A:

Those proceeding with Option A should continue with remainder of this blueprint. Update your strategy statement on slide 3 of your PPM Strategic Plan Template to reflect your choice

Option B:

Those proceeding with Option B should exit this blueprint and refer to Info-Tech’s Tailor Project Management Processes to Fit Your Projects blueprint to help define a project management standard operating procedure.

Customize Info-Tech’s PPM Strategic Plan Template. If you’re proceeding with Option A, update slide 4, “Project Portfolio Management Strategy,” of your PPM Strategic Plan Template to reflect your choice of PPM strategy. If you’re proceeding with Option B, you may want to include your strategy statement in your Project Management SOP Template.

The success of your top-down strategy will hinge on the quality of your capacity awareness and resource utilization

A PPM strategy should facilitate alignment between project demand with resource supply. Use Info-Tech’s PPM High-Level Supply/Demand Calculator as a step towards this alignment.

Info-Tech’s research shows that the ability to provide a centralized view of IT’s capacity for projects is one of the top PPM capabilities that contributes to overall project success.

Accurate and reliable forecasts into IT’s capacity, coupled with an engaged executive layer making project approval and prioritization decisions based upon that capacity data, is the hallmark of an effective top-down PPM strategy.

• Use Info-Tech’s PPM High-Level Supply/Demand Calculator to help improve visibility (and with it, organizational understanding) into project demand and IT resource supply.
• The Calculator will help you determine IT’s actual capacity for projects and analyze organizational demand by taking an inventory of active and backlog projects.

Download Info-Tech’s PPM High-Level Supply/Demand Calculator.

Info-Tech Insight

Where does the time go? The portfolio manager (or equivalent) should function as the accounting department for time, showing what’s available in IT’s human resources budget for projects and providing ongoing visibility into how that budget of time is being spent.

Establish the total resource capacity of your portfolio

INPUT: Staff resource types, Average work week, Estimated allocations

OUTPUT: Breakdown of annual portfolio HR spend, Capacity pie chart

Materials: PPM High-Level Supply/Demand Calculator, tab 3

Participants: Portfolio manager (or equivalent), Resource and/or project managers

Use tab 3 of the calculator to determine your actual HR portfolio budget for projects, relative to the organization’s non-project demands.

• Tab 3 analyzes your resource supply asks you to consider how your staff spend their time weekly across four categories: out of office time, administrative time (e.g. meetings, training, checking email), keep-the-lights-on time (i.e. support and maintenance), and project time.
• The screenshot below walks you through columns B to E of tab 3, which help calculate your potential capacity. This activity will continue on the next slide, where we will determine your realized capacity for project work from this potential capacity.

Determine the project/non-project ratio for each role

The previous slide walked you through columns B to E of tab 3. This slide walks you through columns F to J, which ask you to consider how your potential capacity is spent.

Review your annual portfolio capacity for projects

The previous slides walked you through the inputs for tab “3. Project Capacity.” This slide walks you through the outputs of the tab.

Based upon the inputs from columns B to J, the rest of tab 3 analyzes how IT available time is spent across the time categories, highlighting how much of IT’s capacity is actually available for projects after admin work, support and maintenance work, and absences have been taken into account.

Customize Info-Tech’s PPM Strategic Plan Template. Update slide 10, “Current Project Capacity,” of your PPM Strategic Plan Template to include the outputs from tab 3 of the Calculator.

Create an inventory of active and backlog projects to help gauge overall project demand

INPUT: Number of active and backlog projects across different sizes

OUTPUT: Total project demand in estimated hours of work effort

Materials: PPM High-Level Supply/Demand Calculator, tab 4

Participants: Portfolio manager (or equivalent), Project managers

Where tab 3 of the Calculator gave you visibility into your overall resource supply for projects, tab 4 will help you establish insight into the demand side.

• Before starting on tab 4, be sure to enter the required project size data on the set-up tab.
• Using a list of current active projects, categorize the items on the list by size: small, medium, large, and extra large. Enter the number of projects in each category of project in column C of tab 4.
• Using a list of on-hold projects, or projects that have been approved but not started, categorize the list by size and enter the number of projects in each category in column D.
• In column E, estimate the number of new requests and projects across each size that you anticipate being added to the portfolio/backlog in the next 12 months. Use historical data from the past 12 to 24 months to inform your estimates.
• In column F, estimate the number of projects that you anticipate being completed in each size category in the next 12 months. Take the current state of active projects into account as you make your estimates, as well as throughput data from the previous 12 to 24 months.

Make supply and demand part of the conversation as you get buy-in for your top-down strategy

Tab 5 of the Calculator is an output tab, visualizing the alignment (or lack thereof) of project demand and resource supply.

Once tabs 3 and 4 are complete, use tab 5 to analyze the supply/demand data to help build your case for a top-down PPM strategy and get buy-in for it.

Customize Info-Tech’s PPM Strategic Plan Template. Update slides 11 and 12, “Current Project Demand,” of your PPM Strategic Plan Template to include the outputs from tabs 4 and 5 of the Calculator.

Recommended: Complete Info-Tech’s PPM Current State Scorecard to measure your resource utilization

This step is highly recommended but not required. Call 1-888-670-8889 to inquire about or request the PPM Diagnostics.

Info-Tech’s PPM Current State Scorecard diagnostic provides a comprehensive view of your portfolio management strengths and weaknesses, including project portfolio management, project management, customer management, and resource utilization.

Customize Info-Tech’s PPM Strategic Plan Template. Update slides 14 and 15, “Current State Resource Utilization” of your PPM Strategic Plan Template to include the resource utilization outputs from your PPM Current State Scorecard.

Finalize section one of the PPM Strategic Plan Template and prepare to communicate your strategy

INPUT: The previous activities from this step

OUTPUT: An presentation communication your PPM strategy

Materials: PPM Strategic Plan Template, section 1

Participants: Portfolio manager (or equivalent)

By now, you should be ready to complete section one of the PPM Strategic Plan Template.

The purpose of this section of the Template is to capture the outputs of this step and use them to communicate the value of a top-down PPM strategy and to get buy-in for this strategy from senior management before you move forward to develop your PPM processes in the subsequent phases of this blueprint.

• Within section one, update any of the text that is (in grey) to reflect the specifics of your organization – i.e. the name of your organization and department – and the specific outcomes of step 1.2 activities. In addition, replace the placeholders for a company logo with the logo of your company.
• Replace the tool screenshots with the outputs from your version of the PPM High-Level Supply/Demand Calculator.
• Proofread all of the text to ensure the content accurately reflects your outcomes. Edit the content as needed to more accurately reflect your outcomes.
• Determine the audience for the presentation of your PPM strategy and make a logistical arrangement. Include PPM strategy sponsors, senior management from within IT and the business, and other important stakeholders.

Get executive buy-in for your top-down PPM strategy

Executive layer buy-in is a critical prerequisite for the success of a top-down PPM strategy. Ensure your executives are on board before preceding.

You’re now ready to communicate your PPM strategy to your leadership team and other stakeholders.

It is essential that you get preliminary buy-in for this strategy from the executive layer before you move forward to develop your PPM processes in the subsequent phases of this blueprint. Lack of executive engagement is one of the top barriers to PPM strategy success.

• If you have gone through the preceding activities in this step, section one of your PPM Strategic Plan Template should now be ready to present.
• As explained in 1.1.4, you should present this section to an audience of PPM strategy sponsors, C-suite executives, and other members of the senior management team.
• Allow at least 60 minutes for the presentation – around 20 minutes to deliver the slide presentation and 40 minutes for discussion.
• If you get sufficient buy-in by the end of the presentation, proceed to the next step of this blueprint. If buy-in is lacking, now might not be the right time for a top-down PPM strategy. Think about adopting a bottom-up approach until leadership is more engaged in the portfolio.

"Gaining executive sponsorship early is key…It is important for the executives in your organization to understand that the PPM initiatives and the PMO organization are there to support (but never hinder) executive decision making." (KeyedIn Projects)

Info-Tech Best Practice

Engage(d) sponsorship. According to Prosci, the top factor in contributing to the success of a change initiative is active and visible executive sponsorship. Use this meeting to communicate to your sponsor(s) the importance of their involvement in championing the PPM strategy.

A PPM strategic plan elevates PMO’s status to a business strategic partner

CASE STUDY

Industry: Public Administration
Source: IAG / Info-Tech Interview

Challenge

The PMO operated in a way that is, in their self-assessment, reactive; project requests and capacity were not effectively managed. Perhaps due to this, the leadership team was not always visible, or regularly available, to PM leaders. This, in turn, complicated efforts to effectively manage their projects.

Solution

Establishing a simple prioritization methodology enabled the senior leadership to engage and effectively steer the project portfolio by strategic importance. The criteria and tool also gave the business units a clear understanding to promote the strategic value of each of their project requests.

Results

PM leaders now have the support and confidence of the senior leadership team to both proactively manage and deliver on strategic projects. This new prioritization model brought the PM Leader and senior leadership team in direct access with each other.

"By implementing this new project intake and prioritization framework, we drastically improved our ability to predict, meet, and manage project requests and unit workload. We adopted a client-focused and client-centric approach that enabled all project participants to see their role and value in successful project delivery. We created methodologies that were easy to follow from the client participation perspective, but also as PM leaders, provided us with the metrics, planning, and proactive tools to meet and anticipate client project demand. The response from our clients was extremely positive, encouraging, and appreciative."

Step 1.2: Translate PPM strategic expectations to process goals

This step will walk you through the following activities:

• Determine process goals based upon your PPM strategy.
• Set metrics and preliminary targets for your PPM processes.

This step involves the following participants:

• CIO
• Steering Committee
• Business Unit Leaders
• PMO Director/Portfolio Manager

Outcomes of this step

• Stakeholder-prioritized PPM process goals
• Metrics and targets for high-priority process goals

Use the PPM strategy to set the direction for PPM processes that make up the infrastructure around projects

PPM strategy enables you to answer any and all of these questions in a way that is consistent, cohesive, and aligned with one another.

Set process goals to address PPM strategic expectations and steer the PPM strategic plan

INPUT: PPM strategy & expectations, Organizational strategy and culture

OUTPUT: Prioritized list of strategy-aligned PPM process goals

Materials: PPM Strategy-Process Translation Matrix

Participants: CIO, Steering Committee, Business Unit Leaders, PMO Director/ Portfolio Manager

This activity is designed for key departmental stakeholders to articulate how PPM processes should be developed or refined to meet the PPM strategic expectations.

Participation of the key departmental stakeholders in this exercise is critical, e.g. CIO, Steering Committee, business unit leaders.

Download Info-Tech’s PPM Strategy-Process Goals Translation Matrix Template.

Use Info-Tech’s Translation Matrix to systematically articulate strategy-aligned PPM process goals

Formula: To answer “[question]” in a way that we can [strategic expectation], it will be important to [process goal].

Example 1:
To answer the question “who can request a project, and how?” in a way that we can maximize the throughput of the best projects, it will be important to standardize the project request process.

Example 2:
To answer the question “how will they decide what to fund?” in a way that we can maximize the throughput of the best projects, it will be important to reach a consensus on project prioritization criteria.

Example 3:
To answer the question “how will we track the projected benefits?” in a way that we can maximize the throughput of the best projects, it will be important to double-check the validity of benefits before projects are approved.

Set metrics and preliminary targets for your high-priority PPM process goals

1.2.2 – 1-2 hours

INPUT: Prioritized list of strategy-aligned PPM process goals, Organizational strategy and culture

OUTPUT: Metrics and targets for high-priority PPM process goals

Materials: PPM Strategy-Process Translation Matrix

Participants: CIO, Steering Committee, Business Unit Leaders, PMO Director/ Portfolio Manager

Your highest-priority process goals and their corresponding strategy expectations are displayed in tab 3 of the PPM Strategy-Process Translation Matrix template (example below).

Through a group discussion, document what will be measured to decide the achievement of each process goal, as well as your current estimate and the long-term target. If necessary, adjust the approximate target duration.

Project-client-centered approach to PPM process design improves client satisfaction and team confidence

CASE STUDY

Industry: Public Administration
Source: IAG / Info-Tech Interview

Challenge

Reactive instead of proactive

"We had no effective means of tracking project intake requests vs. capacity. We struggled using ad hoc processes and methods which worked to meet immediate needs, but we quickly realized that they were ineffective in tracking critical project metrics, key performance indicators (KPIs), or performance measures...In short, we were being reactive, instead of proactive."

The result was a disorganized portfolio that led to low client satisfaction and team morale.

Solution

Examine processes “through the eyes of the client”

With the guiding principle of “through the eyes of the client,” PPM processes and tools were developed to formalize project intake, prioritization, and capacity planning. All touchpoints between client and PPM processes were identified, and practices for managing client expectations were put in place. A client satisfaction survey was formulated as part of the post-project assessment and review.

Results

Client-centered processes improved client satisfaction and team confidence

People, processes, and tools are now aligned to support client demand, manage client expectations, measure project KPIs, and perform post-project analysis. A standard for client satisfaction metrics was put in place. The overwhelmingly positive feedback has increased team confidence in their ability to deliver quality efforts.

If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop

Book a workshop with our Info-Tech analysts:

To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team. Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop. Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

The following are sample activities that will be conducted by Info-Tech analysts with your team:

	Determine your actual resource capacity for projects Work with Info-Tech analysts to define your project vs. non-project ratio to help define how much of your overall resource capacity is actual available for projects.
	Set realistic PPM process goals Leverage Info-Tech facilitators to help walk you through our PPM framework and define achievable process goals that are rooted in your current PPM maturity levels and organizational culture.

Develop a Project Portfolio Management Strategy

PHASE 2

Align PPM Processes to Your Strategic Goals

Phase 2 outline

Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

Guided Implementation 2: Align PPM processes to your strategic goals

Proposed Time to Completion: 2-4 weeks

Read first: Overview of the methodology for articulating new strategy-aligned PPM processes

In the previous step of the blueprint, key department stakeholders established the PPM process goals, metrics, and targets in a way that aligns with the overall PPM strategy. In this phase, we draft a high-level description of the five PPM processes that reflect those goals using the following methodology:

Methodology at a glance

1. Articulate the current state of the process.
2. Examine the process against the strategy-aligned goals.
3. Create short- and long-term action items to refine the current process and meet the strategy-aligned targets.
4. Develop a high-level target-state description of the PPM process.
5. Estimate costs-in-use of the target-state process.

Out-of-scope topics

• Draft a detailed target-state description of the PPM process. Avoid falling into the “analysis paralysis” trap and keep the discussion focused on the overall PPM strategy.
• PPM tools to support the process. This discussion will take place in the next phase of the blueprint.

Download Info-Tech’s PPM Strategy Development Tool

Build a sound business case for implementing the new PPM strategy with realistic costs and benefits of managing your project portfolio.

Time spent on managing the project portfolio is an investment. Like any other business endeavors, the benefits must outweigh the costs to be worth doing.

As you draft a high-level description of the PPM processes in this phase of the blueprint, use Info-Tech’s PPM Strategy Development Tool to track the estimate the cost-in-use of the process. In the next phase, this information will be inform a cost-benefit analysis, which will be used to support your plan to implement the PPM strategy.

Download Info-Tech’s PPM Strategy Development Tool.

Step 2.1: Develop and refine project intake, prioritization, and resource management processes

This step will walk you through the following activities:

• Determine your process maturity.
• Benchmark current processes against strategy-aligned goals.
• Set near- and long-term action items.
• Draft a high-level description of your target state.
• Document your new processes.

This step involves the following participants:

• PMO Director/Portfolio Manager
• Project Managers
• Resource Managers
• Business Analysts

Outcomes of this step

• A definition of current and target state maturity levels for intake, prioritization, and resource management
• Near-term and long-term process goals for intake, prioritization, and resource management
• A high-level wireframe for your intake, prioritization, and resource management process steps

Project intake, prioritization, and approval: Get projects with the highest value done first

Give your organization the voice to say “no” (or “not yet”) to new projects.

Questions

• Who can request a project?
• How do you request a project?
• Who decides what to fund?
• What is the target investment mix?
• How will they decide?

Benefits

• Maximize value of time spent on project work by aligning projects with priorities and stakeholder needs.
• Finish the projects you start by improving alignment of intake and prioritization with resource capacity.
• Improve stakeholder satisfaction by managing expectations with consistent, streamlined processes.

Challenges

• Stakeholders who benefit from political or ad hoc prioritization processes will resist or circumvent formal intake processes.
• Many organizations lack sufficient awareness of resource capacity necessary to align intake with availability.

Info-Tech Insight

This process aims to control the project demand. A balance between rigor and flexibility is critical in order to avoid the “analysis paralysis” as much as the “gut feel” approach.

Funnel project requests into a triage system for project intake

Info-Tech recommends following a four-step process for managing project intake.

1. Requestor fills out form and submits the request into the funnel.
2. Requests are triaged into the proper queue.
   1. Divert non-project request.
   2. Quickly assess value and urgency.
   3. Assign specialist to follow up on request.
   4. Inform the requestor.
3. Business analyst starts to gather preliminary requirements.
   1. Follow up with sponsors to validate and define scope.
   2. Estimate size and determine project management rigor required.
   3. Start to develop an initial business case.
4. Requestor is given realistic expectations for approval process.

Info-Tech Best Practice

An excess number of intake channels is the tell-tale sign of a project portfolio in distress. The PMO needs to exercise and enforce discipline on stakeholders. PMO should demand proper documentation and diligence from stakeholders before proceeding with requests.

Maintain reliable resourcing data with a recurrent project intake, prioritization, and approval practice

Info-Tech recommends following a five-step process for managing project intake, prioritization, and approval.

Info-Tech Insight

“Approval” can be a dangerous word in project and portfolio management. Use it carefully. Clarify precisely what is being “approved” at each step in the process, what is required to pass each gate, and how long the process will take.

Determine your project intake, prioritization, and approval process maturity

INPUT: Organizational strategy and culture

OUTPUT: Project intake, prioritization, and approval capability level

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Kick-off the discussion about the project intake, prioritization, and approval process by reading the capability level descriptions below and discussing which level currently applies to you the most.

Benchmark the current project intake, prioritization, and approval process against strategy-aligned goals

2.1.1b – 1-2 hours

INPUT: Documentation describing the current process (e.g. standard operating procedures), Process goals from activity 1.2.1

OUTPUT: Retrospective review of current process

Materials: 4x6” recipe cards, Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Conduct a table-top planning exercise to map out the process currently in place.

1. Use white 4”x6” recipe cards to write unique steps of a process. Use the intake, prioritization, and approval process from the previous slides as a guide.
2. Use green cards to write artifacts or deliverables that result from a step.
3. Use pink cards to write issues, problems, or risks.
4. Discuss how the process could better achieve the strategy-aligned goals from activity 1.2.1. Keep a list of possible changes in the form of a start-stop-continue retrospective (example below) on a whiteboard.

Set near- and long-term action items for the project intake, prioritization, and approval process

2.1.1c – 30 minutes - 1 hour

INPUT: Outcome of the retrospective review, Process goals and metrics from activity 1.2.1

OUTPUT: Action items for evolving the process to a target state

Materials: Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Analyze each item in the start-stop-continue retrospective to compile a set of near-term and long-term action items.

Review and customize slide 23, “Project intake, prioritization, and approval: action items,” in Info-Tech’s PPM Strategic Plan Template.

Draft a high-level description of the intake, prioritization, and approval process at a target state

2.1.1d – 1-2 hours

INPUT: Action items for evolving the process to a target state

OUTPUT: High-level description of the process at the target state

Materials: Whiteboard, PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

1. Break down the process into several tasks at a high level. Avoid getting into too much detail by limiting the number of steps.

An example of high-level breakdown: project intake, prioritization, and approval
Collect project requests	–›	Screen requests	–›	Develop business case	–›	Prioritize project	–›	Approve project



2. Describe each task by answering the following questions. Document your response in the PPM Strategic Plan Template.

Question	Description
Input	What information do you need to perform the work?
Output	What artifacts/deliverables are produced as a result?
Frequency/Timing	How often, and when, will the work be performed?
Responsibility	Who will perform the work?
Accountability	Who will approve the work and assume the ownership of any decisions?



3. Record the time cost of each process using the PPM Strategy Development Tool; see next slide for instructions.

Use the PPM Strategy Development Tool to track the time cost of the process

Record the time cost of each high-level process task from Activity 2.1.1d.

Document the high-level description for the new intake, prioritization, and approval process

INPUT: High-level description of the process at the target state

OUTPUT: Updated PPM strategic plan

Materials: Whiteboard, PPM Strategic Plan Template

Participants: PMO Director/ Portfolio Manager

Update your PPM strategic plan with the new high-level description for the new project intake, prioritization, and approval process. Depending on your current process capability level, you may wish to include additional information on your strategic document, for example:

• Updated prioritization scorecard.
• Roles and responsibility matrix, identifying consulted and informed parties.

Info-Tech has a dedicated blueprint to help you develop the high-level process description into a fully operationalized process. Upon completion of this PPM strategy blueprint, speak to an Info-Tech account manager or analyst to get started.

Read Info-Tech’s Optimize Project Intake, Prioritization, and Approval blueprint.

Review and customize slide 24, “Project intake, prioritization, and approval: target state,” in Info-Tech’s PPM Strategic Plan Template.

Clarity in project prioritization process leads to enterprise-wide buy-in

CASE STUDY

Industry: Public Administration
Source: IAG / Info-Tech Interview

Challenge

"Our challenge from the start was to better understand the strategic perspective and priorities of our client departments.

In addition, much of the work requested was not aligned to corporate goals and efforts, and seemed to be contradictory, redundant, and lacking strategic focus."

Complicating this challenge was the fact that work requests were being received via all means of communication, which made the monitoring and controlling of requests more difficult.

Solution

Client departments were consulted to improve the understanding of their strategic goals and priorities. Based on the consultation:

• A new, enterprise-wide project prioritization criteria was developed.
• Priority of project requests from all business areas are evaluated on a quarterly basis.
• A prioritized list of projects are made available to the senior leadership team.

Results

"By creating and implementing a tool for departments to prioritize strategic efforts, we helped them consider the important overall project criteria and measure them uniformly, across all anticipated projects. This set a standard of assessment, prioritization, and ranking, which helped departments clearly see which efforts were supportive and matched their strategic goals."

Resource management process ensures that projects get the resources they need

Reclaim project capacity: properly allocate project work and establish more stable project timelines.

Questions

• Who assigns the resources?
• Who feeds the data on resources?
• How do we make sure it’s valid?
• How do we handle contingencies when projects are late, or if availability changes?

Benefits

• Ensure that approved projects can be completed by aligning intake with real project capacity.
• Reduce over-allocation of resources by allocating based on their proportion of project vs. non-project work.
• Forecast future resource requirements by maintaining accurate resource capacity data.

Challenges

• Time tracking can be difficult when project workers balance project work with “keep the lights on” activities and other administrative work.
• Continuous partial attention, interruptions, and distractions are a part of today’s reality that makes it very difficult to maximize productivity.

Maintain reliable resourcing data with a recurrent resource management practice

Info-Tech recommends following a five-step process for resource management.

Info-Tech Insight

This process aims to control the resource supply to meet the demand – project and non-project alike. Coordinate this process with the intake, approval, and prioritization process.

Determine your resource management process capability level

2.1.2a – 10 minutes

INPUT: Organizational strategy and culture

OUTPUT: Resource management capability level

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Kick-off the discussion about the resource management process by reading the capability level descriptions below and discussing which level currently applies to you the most.

Benchmark the current resource management process against strategy-aligned goals

2.1.2b – 1-2 hours

INPUT: Documentation describing the current process (e.g. standard operating procedures), Process goals from activity 1.2.1

OUTPUT: Retrospective review of current process

Materials: 4x6” recipe cards, Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Conduct a table-top planning exercise to map out the process currently in place.

1. Use white 4”x6” recipe cards to write unique steps of a process. Use the resource management process from the previous slides as a guide.
2. Use green cards to write artifacts or deliverables that result from a step.
3. Use pink cards to write issues, problems, or risks.
4. Discuss how the process could better achieve the strategy-aligned goals from activity 1.2.1. Keep a list of possible changes in the form of a start-stop-continue retrospective (example below) on a whiteboard.

Set near- and long-term action items for the resource management process

2.1.2c – 30 minutes - 1 hour

INPUT: Outcome of the retrospective review, Process goals and metrics from activity 1.2.1

OUTPUT: Action items for evolving the process to a target state

Materials: Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Analyze each item in the start-stop-continue retrospective to compile a set of near-term and long-term action items.

Review and customize slide 26, “Resource management: action items,” in Info-Tech’s PPM Strategic Plan Template.

Draft a high-level description of the resource management process at a target state

2.1.2d – 1-2 hours

INPUT: Action items for evolving the process to a target state

OUTPUT: High-level description of the process at the target state

Materials: Whiteboard, PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

1. Break down the process into several tasks at a high level. Avoid getting into too much detail by limiting the number of steps.

An example of high-level breakdown: resource management
Collect resource availability	–›	Collect resource demand	–›	Identify need for reconciliation	–›	Resolve conflicts and over-allocation	–›	Update resource forecast




2. Describe each task by answering the following questions. Document your response in the PPM Strategic Plan Template.

Question	Description
Input	What information do you need to perform the work?
Output	What artifacts/deliverables are produced as a result?
Frequency/Timing	How often, and when, will the work be performed?
Responsibility	Who will perform the work?
Accountability	Who will approve the work and assume the ownership of any decisions?




3. Record the time cost of each process using the PPM Strategy Development Tool.

Document the high-level description for the new resource management process

2.1.2e – 30 minutes - 1 hour

INPUT: High-level description of the process at the target state

OUTPUT: Updated PPM strategic plan

Materials: PPM Strategic Plan Template

Participants: PMO Director/ Portfolio Manager

Update your PPM strategic plan with the new high-level description for the new resource management process. Depending on your current process capability level, you may wish to include additional information on your strategic plan, for example:

• Resource management meeting agenda template
• Roles and responsibility matrix, identifying consulted and informed parties

Info-Tech has a dedicated blueprint to help you develop the high-level process description into a fully operationalized process. Upon completion of this PPM strategy blueprint, speak to an Info-Tech account manager or analyst to get started.

Read Info-Tech’s Develop a Resource Management for the New Reality blueprint.

Review and customize slide 27, “Resource management: target state,” in Info-Tech’s PPM Strategic Plan Template.

Step 2.2: Develop and refine portfolio reporting, project closure, and benefits realization processes

This step will walk you through the following activities:

• Determine your process maturity.
• Benchmark current processes against strategy-aligned goals.
• Set near- and long-term action items.
• Draft a high-level description of your target state.
• Document your new processes.

This step involves the following participants:

• PMO Director/Portfolio Manager
• Project Managers
• Business Analysts

Outcomes of this step

• A definition of current and target state maturity levels for portfolio reporting, project closure, and benefits realization
• Near-term and long-term process goals for portfolio reporting, project closure, and benefits realization
• A high-level wireframe for your portfolio reporting, project closure, and benefits realization process steps

Portfolio reporting process makes trustworthy data accessible for informing decisions

Giving stakeholders the ability to make informed decisions is the most important function of managing the project portfolio.

Questions

• What project information should be reported?
• Who reports on project status?
• When and how do we report on the status of the project portfolio?

Benefits

• Reporting is the linchpin of any successful PPM strategy.
• Timely and accurate status reports enable decision makers to address issues risks and issues before they create bigger problems.
• Executive visibility can be achieved with or without a commercial tool using spreadsheets, a content management system such as SharePoint, or a combination of tools you already have.

Challenges

• Trying to increase detailed visibility too fast leads to difficulty gathering and maintaining data. As a result, reporting is rarely accurate and people quickly lose trust in the portfolio.
• If you are planning to adopt a commercial tool, Info-Tech strongly recommends validating your organization’s ability to maintain a consistent reporting process using simple tools before investing in a more sophisticated system.

Info-Tech Insight

If you can only do one thing, establish frequently current reporting on project status. Reporting doesn’t have to be detailed or precise, as long as it’s accurate.

Maintain reliable portfolio status data with a recurrent status and progress reporting practice

Info-Tech recommends following a four-step process for portfolio status and progress reporting.

Start by establishing a regular reporting cadence with lightweight project status KPIs:

Determine your resource management process capability level

2.2.1a – 10 minutes

INPUT: Organizational strategy and culture

OUTPUT: Portfolio reporting capability level

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers

Kick-off the discussion about the portfolio reporting process by reading the capability level descriptions below and discussing which level currently applies to you the most.

Benchmark the current portfolio reporting process against strategy-aligned goals

INPUT: Documentation describing the current process (e.g. standard operating procedures), Process goals from activity 1.2.1

OUTPUT: Retrospective review of current process

Materials: 4x6” recipe cards, Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers

Conduct a table-top planning exercise to map out the process currently in place.

1. Use white 4”x6” recipe cards to write unique steps of a process. Use the portfolio reporting process from the previous slides as a guide.
2. Use green cards to write artifacts or deliverables that result from a step.
3. Use pink cards to write issues, problems, or risks.
4. Discuss how the process could better achieve the strategy-aligned goals from activity 1.2.1. Keep a list of possible changes in the form of a start-stop-continue retrospective (example below) on a whiteboard.

Set near- and long-term action items for the portfolio reporting process

2.2.1c – 30 minutes - 1 hour

INPUT: Outcome of the retrospective review, Process goals and metrics from activity 1.2.1

OUTPUT: Action items for evolving the process to a target state

Materials: Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers

Analyze each item in the start-stop-continue retrospective to compile a set of near-term and long-term action items.

Review and customize slide 29, “Portfolio reporting: action items,” in Info-Tech’s PPM Strategic Plan Template.

Draft a high-level description of the portfolio reporting process at a target state

2.2.1d – 1-2 hours

INPUT: Action items for evolving the process to a target state

OUTPUT: High-level description of the process at the target state

Materials: Whiteboard, PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers

1. Break down the process into several tasks at a high level. Avoid getting into too much detail by limiting the number of steps.

An example of high-level breakdown: portfolio reporting
Create project status reports	–›	Create a project portfolio status report	–›	Report on project portfolio status	–›	Act on portfolio steering decisions




2. Describe each task by answering the following questions. Document your response in the PPM Strategic Plan Template.

Question	Description
Input	What information do you need to perform the work?
Output	What artifacts/deliverables are produced as a result?
Frequency/Timing	How often, and when, will the work be performed?
Responsibility	Who will perform the work?
Accountability	Who will approve the work and assume the ownership of any decisions?



3. Record the time cost of each process using the PPM Strategy Development Tool.

Document the high-level description for the new portfolio reporting process

2.2.1e – 30 minutes - 1 hour

INPUT: High-level description of the process at the target state

OUTPUT: Updated PPM strategic plan

Materials: PPM Strategic Plan Template

Participants: PMO Director/ Portfolio Manager

Update your PPM strategic plan with the new high-level description for the new portfolio reporting process. Depending on your current process capability level, you may wish to include additional information on your strategic plan, for example:

• Updated project status report template with new KPIs.
• Documentation of requirements for improved PPM dashboards and reports.

Info-Tech has a dedicated blueprint to help you develop the high-level process description into a fully operationalized process. Upon completion of this PPM strategy blueprint, speak to an Info-Tech account manager or analyst to get started.

Read Info-Tech’s Enhance PPM Dashboards and Reports blueprint.

Review and customize slide 30, “Portfolio reporting: target state,” in Info-Tech’s PPM Strategic Plan Template.

Streamlined status reporting improves portfolio visibility for executives, enabling data-driven steering of the portfolio

CASE STUDY

Industry: Public Administration
Source: IAG / Info-Tech Interview

Challenge

The client had no effective real-time reporting in place to summarize their work efforts. In addition, the client struggled with managing existing resources against the ability to deliver on the requested project workload.

Existing project reporting processes were manually intensive and lacked mature reporting capabilities.

Solution

Through a short and effective engagement, IAG conducted surveys and facilitated interviews to identify the information needed by each stakeholder. From this analysis and industry best practices, IAG developed scorecards, dashboards, and project summary reports tailored to the needs of each stakeholder group. This integrated reporting tool was then made available on a central portal for PPM stakeholders.

Results

Stakeholders can access project scorecard and dashboard reports that are available at any given time.

Resource reporting enabled the PMO to better balance client demand with available project capacity and forecast any upcoming deficiencies in resourcing that affect project delivery.

Project closure at the portfolio level controls throughput and responsiveness of the portfolio

Take control over projects that linger on, projects that don’t provide value, and projects that do not align with changing organizational priority.

Questions

• Who declares that a project is done?
• Who validates it?
• Who is this reported to?
• Who terminates low-value projects?
• How will they decide that a project is too low value to continue?

Benefits

• Minimize post-implementation problems by ensuring clean handoffs, with clear responsibilities for ongoing support and maintenance.
• Drive continuous improvement by capturing and applying lessons learned.
• Increase the project portfolio’s responsiveness to change by responding to emerging opportunities and challenges.

Challenges

• Completion criteria and “definition of done” need to be well defined and done so at project initiation.
• Scope changes need to be managed and documented throughout the project.
• Portfolio responsiveness requires deep cultural changes that will be met with confusion and resistance from some stakeholders.

Info-Tech Insight

Although “change in organizational priority” is the most frequently cited cause of project failure (PMI Pulse of Profession, 2017), closing projects that don’t align with organizational priority ought to be a key PPM goal. Therefore, don’t think of it as project failure; instead, think of it as PPM success.

Maintain the health of the project portfolio with a repeatable project closure process

Info-Tech recommends following a four-step process for project closure.

Info-Tech Best Practice

Post-implementation review checks which benefits (including those set out in the business case) have been achieved and identifies opportunities for further improvement. Without it, it can be difficult to demonstrate that investment in a project was worthwhile.

Determine your project closure process capability level

2.2.2a – 10 minutes

INPUT: Organizational strategy and culture

OUTPUT: Project closure capability level

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Business Analysts

Kick-off the discussion about the project closure process by reading the capability level descriptions below and discussing which level currently applies to you the most.

Benchmark the current project closure process against strategy-aligned goals

2.2.2b – 1-2 hours

INPUT: Documentation describing the current process (e.g. standard operating procedures), Process goals from activity 1.2.1

OUTPUT: Retrospective review of current process

Materials: 4x6” recipe cards, Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Business Analysts

Conduct a table-top planning exercise to map out the process currently in place.

1. Use white 4”x6” recipe cards to write unique steps of a process. Use the project closure process from the previous slides as a guide.
2. Use green cards to write artifacts or deliverables that result from a step.
3. Use pink cards to write issues, problems, or risks.
4. Discuss how the process could better achieve the strategy-aligned goals from activity 1.2.1. Keep a list of possible changes in the form of a start-stop-continue retrospective (example below) on a whiteboard.

Set near- and long-term action items for the project closure process

2.2.2c – 30 minutes - 1 hour

INPUT: Outcome of the retrospective review, Process goals and metrics from activity 1.2.1

OUTPUT: Action items for evolving the process to a target state

Materials: Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Analyze each item in the start-stop-continue retrospective to compile a set of near-term and long-term action items.

Review and customize slide 32, “Project closure: action items,” in Info-Tech’s PPM Strategic Plan Template.

Draft a high-level description of the project closure process at a target state

2.2.2d – 1-2 hours

INPUT: Action items for evolving the process to a target state

OUTPUT: High-level description of the process at the target state

Materials: Whiteboard, PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

1. Break down the process into several tasks at a high level. Avoid getting into too much detail by limiting the number of steps.

An example of high-level breakdown: project closure
Complete or terminate projects	–›	Validate project closure	–›	Conduct post-project work	–›	Conduct post-implementation review




2. Describe each task by answering the following questions. Document your response in the PPM Strategic Plan Template.

Question	Description
Input	What information do you need to perform the work?
Output	What artifacts/deliverables are produced as a result?
Frequency/Timing	How often, and when, will the work be performed?
Responsibility	Who will perform the work?
Accountability	Who will approve the work and assume the ownership of any decisions?




3. Record the time cost of each process using the PPM Strategy Development Tool.

Document the high-level description for the new project closure process

2.2.2e – 30 minutes - 1 hour

INPUT: High-level description of the process at the target state

OUTPUT: Updated PPM strategic plan

Materials: PPM Strategic Plan Template

Participants: PMO Director/ Portfolio Manager

Update your PPM strategic plan with the new high-level description for the new project closure process. Depending on your current process capability level, you may wish to include additional information on your strategic plan, for example:

• Updated project closure checklist.
• Project value review meeting process document.
• Post-implementation review process document.

Info-Tech has several research notes that elaborate on aspects of project closure. Upon completion of this PPM strategy blueprint, speak to an Info-Tech account manager or analyst to get started.

Read Info-Tech’s research notes on project closure:

• The Importance of Conducting a Post Implementation Review
• Five Key Steps to Mastering Project Closure
• ‘Governance’ Will Kill Your Projects

Review and customize slide 33, “Project closure: target state,” in Info-Tech’s PPM Strategic Plan Template.

Validate the time and effort spent on projects with a benefits realization process

Maximizing benefits from projects is the primary goal of PPM. Tracking and reporting on benefits post-project closes the loop on benefits.

Questions

• How do validate the project benefits from the original business case?
• How do we track the benefits?
• Who reports it? When?

Benefits

• Maximize benefits realization by identifying and addressing unforeseen issues or limitations to success.
• Improve project approval and prioritization by improving validity of the business case definition process.

Challenges

• Project sponsors need to be willing to invest time – months and years post-project completion – to validate benefits realization.
• Portfolio management needs to proactively work with sponsors to facilitate benefits tracking.
• Business cases need to be well developed and documented to reflect real anticipated benefits.

Too many projects fail to achieve the originally proposed benefits, and too few organizations are able to identify and address the root causes of those shortfalls.

Info-Tech Insight

In reality, benefits realization process extends across the entire project life cycle: during intake, during the execution of the project, and after project completion. Be mindful of this extended scope when you discuss benefits realization in the following activity.

Keep project benefits front and center with a repeatable benefits realization process

Info-Tech recommends following a four-step process for benefits realization.

Info-Tech Insight

At the heart of benefits realization is accountability: who is held accountable for projects that don’t realize the benefits and how? Without the buy-in from the entire executive layer team, addressing this issue is very difficult.

Determine your benefits realization process capability level

2.2.3a – 10 minutes

INPUT: Organizational strategy and culture

OUTPUT: benefits realization capability level

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Kick-off the discussion about the benefits realization process by reading the capability level descriptions below and discussing which level currently applies to you the most.

Benchmark the current benefits realization process against strategy-aligned goals

2.2.3b – 1-2 hours

INPUT: Documentation describing the current process (e.g. standard operating procedures), Process goals from activity 1.2.1

OUTPUT: Retrospective review of current process

Materials: 4x6” recipe cards, Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Conduct a table-top planning exercise to map out the process currently in place.

1. Use white 4”x6” recipe cards to write unique steps of a process. Use the benefits realization process from the previous slides as a guide.
2. Use green cards to write artifacts or deliverables that result from a step.
3. Use pink cards to write issues, problems, or risks.
4. Discuss how the process could better achieve the strategy-aligned goals from activity 1.2.1. Keep a list of possible changes in the form of a start-stop-continue retrospective (example below) on a whiteboard.

Set near- and long-term action items for the benefits realization process

2.2.3c – 30 minutes - 1 hour

INPUT: Outcome of the retrospective review, Process goals and metrics from activity 1.2.1

OUTPUT: Action items for evolving the process to a target state

Materials: Whiteboard

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Analyze each item in the start-stop-continue retrospective to compile a set of near-term and long-term action items.

Review and customize slide 35, “Benefits realization: action items,” in Info-Tech’s PPM Strategic Plan Template.

Draft a high-level description of the benefits realization process at a target state

2.2.3d – 1-2 hours

INPUT: Action items for evolving the process to a target state

OUTPUT: High-level description of the process at the target state

Materials: Whiteboard, PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

1. Break down the process into several tasks at a high level. Avoid getting into too much detail by limiting the number of steps.

An example of high-level breakdown: benefits realization
Validate benefits in business case	–›	Update project benefits during execution	–›	Hand-off benefits ownership	–›	Monitor and report on benefits




2. Describe each task by answering the following questions. Document your response in the PPM Strategic Plan Template.

Question	Description
Input	What information do you need to perform the work?
Output	What artifacts/deliverables are produced as a result?
Frequency/Timing	How often, and when, will the work be performed?
Responsibility	Who will perform the work?
Accountability	Who will approve the work and assume the ownership of any decisions?



3. Record the time cost of each process using the PPM Strategy Development Tool.

Document the high-level description for the new benefits realization process

2.2.3e – 30 minutes - 1 hour

INPUT: High-level description of the process at the target state

OUTPUT: Updated PPM strategic plan

Materials: PPM Strategic Plan Template

Participants: PMO Director/ Portfolio Manager

Update your PPM strategic plan with the new high-level description for the new benefits realization process. Depending on your current process capability level, you may wish to include additional information on your strategic plan, for example:

• Updated business plan templates.
• Communication plan for project sponsors.

Info-Tech has a dedicated blueprint to help you develop the high-level process description into a fully operationalized process. Upon completion of this PPM strategy blueprint, speak to an Info-Tech account manager or analyst to get started.

Read Info-Tech’s Establish the Benefits Realization Process blueprint.

Review and customize slide 36, “Benefits realization: target state,” in Info-Tech’s PPM Strategic Plan Template.

If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop

Book a workshop with our Info-Tech analysts:

To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team. Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop. Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

The following are sample activities that will be conducted by Info-Tech analysts with your team:

	Align your project intake, prioritization, and approval process to the PPM strategy Examine the process at the current state and develop an action plan to improve it, with a high-level description of the process at a target state and its overhead costs. The outcome of this activity feeds into the overall PPM strategic plan.
	Align your resource management process to the PPM strategy Examine the process at the current state and develop an action plan to improve it, with a high-level description of the process at a target state and its overhead costs. The outcome of this activity feeds into the overall PPM strategic plan.

If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop

Book a workshop with our Info-Tech analysts:

	Align your portfolio reporting process to the PPM strategy Examine the process at the current state and develop an action plan to improve it, with a high-level description of the process at a target state and its overhead costs. The outcome of this activity feeds into the overall PPM strategic plan.
	Align your project closure process to the PPM strategy Examine the process at the current state and develop an action plan to improve it, with a high-level description of the process at a target state and its overhead costs. The outcome of this activity feeds into the overall PPM strategic plan.
	Align your benefits realization process to the PPM strategy Examine the process at the current state and develop an action plan to improve it, with a high-level description of the process at a target state and its overhead costs. The outcome of this activity feeds into the overall PPM strategic plan.

Develop a Project Portfolio Management Strategy

PHASE 3

Complete Your PPM Strategic Plan

Phase 2 outline

Call 1-888-670-8889 or email GuidedImplementations@InfoTech.com for more information.

Complete these steps on your own, or call us to complete a guided implementation. A guided implementation is a series of 2-3 advisory calls that help you execute each phase of a project. They are included in most advisory memberships.

Guided Implementation 3: Complete your PPM strategic plan

Proposed Time to Completion: 2 weeks

Step 3.1: Select a right-sized PPM solution for supporting your new processes

This step will walk you through the following activities:

• Determine the functionality requirements of a PPM solution in the near and long terms.
• Estimate your PPM tool budget.
• Review tool assessment.

This step involves the following participants:

• CIO
• PMO Director/ Portfolio Manager
• Project Managers
• IT Managers

Outcomes of this step

• List of functional requirements for a PPM solution
• An estimate budget and cost for supporting a PPM tool in the near and long terms
• PPM tool requirements for the near and long terms

Right-size your PPM solution/tool to fit your PPM processes

Avoid a common pitfall: the disconnect between PPM processes and PPM tools.

PPM tools act as both a receptacle for portfolio data generated by your processes and a source of portfolio data to drive your processes forward. Therefore, choosing a suitable PPM tool is critical to the success of your PPM strategy:

• PPM tool inputs must match the type, level of detail, and amount of portfolio data generated by your PPM processes.
• PPM tool outputs must be useful, insightful, easy to access, and easy to understand for people who engage in your PPM processes.

User adoption is an often cited cause of failed PPM tool implementation:

"The biggest problem is getting the team to work with the tool. We need to make sure that we’re not wasting time delving too far down into the tool, yet putting enough information to get useful information back." (IT Director, Financial Services)

This final step of the blueprint will discuss the choice of PPM tools to ensure the success of PPM strategy by avoiding the process-tool disconnect.

Common pitfalls for PPM tools

• Purchasing and implementing a PPM tool before the process is defined and accepted.
• Poor expectation setting: inability of tools to perform the necessary analysis.
• Underleveraged: low user/process adoption.
• Poor integration with the corporate finance function.
(WGroup, 2017)

Leverage PPM tools to get the information you need

An optimized PPM solution is the vehicle that provides decision makers with four key pieces of information they require when making decisions for your project portfolio:

• Historical Insight – inform decision makers about how much time and resources have been spent to date, and benchmark the accuracy of prior project estimates and resource allocations.
• Forecasting – provide a trustworthy estimate of demand on resources and current projects.
• Portfolio Analytics – analyze portfolio data and generate easy-to-consume reports that provide answers to questions such as:
  • How big is our overall portfolio?
  • How much money/resource time is available?
  • How efficiently are we using our resources?
• Project Visibility – provide a trustworthy report on the status of current projects and the resources working on them.

Info-Tech Insight

Without the proper information, decision makers are driving blind and are forced to make gut feel decisions as opposed to data-informed decisions. Implement a PPM solution to allocate projects properly and ensure time and money don’t vanish without being accounted for.

Commercial PPM tools have more functionality but are more costly, complex, and difficult to adopt

Granular timesheet management Workflow and team collaboration Robust data and application integration Advanced what-if planning Mobile usability
Business case scoring and prioritization Multi-user reporting and request portal
High-level resource management Project status, cost, and risk tracking

"Price tags [for PPM tools] vary considerably. Expensive products don't always provide more capability. Inexpensive products are generally low cost for good reason." (Merkhofer)

Your PPM tool options are not limited to commercial offerings

Despite the rapid growth in the commercial PPM tool market today, homegrown approaches like spreadsheets and intranet sites continue to be used as PPM tools.

Kinds of PPM solutions used by Info-Tech clients

Determine the functional requirements of the PPM solution

3.1.1 – 20 minutes

INPUT: PPM strategic plan

OUTPUT: Modified PPM strategic plan with a proposed choice of PPM tool

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, IT Managers

Use the Tool Assessment tab (tab 4) of Info-Tech’s PPM Strategy Development Tool to rate and analyze functional requirements of your PPM solution.

• Review the list of PPM features provided on column B of tab 4. You can add any desired features not listed.
• Rate your near-term and long-term feature requirements using the drop-down menus in columns C and D. Your selections here will inform the tool selection bubble chart to the right of the features list.

Estimate your PPM tool budget

3.1.2 – 20 minutes

INPUT: PPM strategic plan

OUTPUT: Modified PPM strategic plan with a proposed choice of PPM tool

Materials: PPM Strategy Development Tool

Participants: CIO, PMO Director/ Portfolio Manager, Project Managers, IT Managers

Enter the PPM tool budget information on the Tool Assessment tab of Info-Tech’s PPM Strategy Development Tool.

• As a starting point, it can help to know that low-priced PPM tools cost around $1,000 per user per year. High-priced PPM tools cost around $3,000 per user per year.
• Software-as-a-Service (SaaS)-based pricing for PPM solutions is increasingly popular. If you plan to purchase perpetual licensing, divide the total implementation and licensing cost by three years to be comparable with a three-year SaaS total cost of ownership analysis.

Review the tool assessment graphic

3.1.3 – 20 minutes

If you are in one of the non-covered areas, consider revisiting your functional requirements and PPM strategy. You may need to lessen your expectations to be able to stay within your budget, or find a way to get more money.

Keep in mind that the long-term goal can be to work towards a commercial tool, while the short-term goal would be to be able to maintain your portfolio in a simple spreadsheet first.

Info-Tech Insight

If you choose a commercial solution, you will need to gain executive buy-in in order to implement the tool; proceed to near-term and long-term plans to get the ball rolling on this decision.

Review and customize slide 37, “Tools for PPM: proposed near- and long-term solutions,” in Info-Tech’s PPM Strategic Plan Template.

Grow your own, or select and implement, a PPM solution with Info-Tech

Whether you choose spreadsheet-based or commercially available PPM solutions, use Info-Tech’s research for scoping, designing, and implementing them.

Info-Tech’s Grow Your Own PPM Solution blueprint will help you implement a highly evolved spreadsheet-based PPM solution. It features the Portfolio Manager 2017, a Microsoft Excel-based workbook that leverages its business intelligence features to provide a basis for implementing a scalable, highly customizable PPM tool with useful and easy-to-manipulate analytics.

Read Info-Tech’s Grow Your Own PPM Solution blueprint.

Info-Tech’s Select and Implement a PPM Solution blueprint is part of our Vendor Landscape research. Make sense of the diversity of PPM solutions available in today’s market, and choose the most appropriate solutions for your organization’s size and level of PPM maturity.

Read Info-Tech’s Select and Implement a PPM Solution blueprint.

A right-sized PPM strategy leads to a right-sized portfolio management tool based on Info-Tech’s template

CASE STUDY

Industry: Energy
Source: Info-Tech Client

“The approach makes it easy to run the portfolio without taking time away from the project themselves.” (IT Manager, Energy Resources Firm)

Situation

• A small IT department struggled with balancing project work with ongoing operational management and support work.
• The department includes experienced and successful project managers and a mature, skilled team.
• However, the nature of the department’s role has evolved to the point where the project and operational work demands have exceeded the available time.
• Prioritization needed to become more centralized and formalized while management control of the work assignments became increasingly decentralized.

Complication

• Agile projects offer clear advantages by lightening the requirement for proactive planning. However, getting the staff to adapt would be challenging because of the overall workload and competing priorities.
• Some of the team’s time needed to be carefully tracked and reported for time & materials-based billing, but the time sheet system was unsuited to their portfolio management needs.
• Commercial PPM systems were ruled out because strict task management seemed unlikely to gain adoption.

Resolution

• The team deployed Info-Tech’s Project Portfolio Workbook, based on a Microsoft Excel template, and the Grow Your Own PPM Solution blueprint.
• For the first time, executive leadership was given a 12-month forecast of resource capacity based on existing and pending project commitments. The data behind the capacity forecast was based on allocating people to projects with a percentage of their time for each calendar month.
• The data behind the forecast is high level but easily maintainable.

Step 3.2: Finalize customizing your PPM Strategic Plan Template

This step will walk you through the following activities:

• Determine the costs of support your PPM strategic plan.
• Estimate some of the benefits of your PPM strategic plan.
• Perform a cost-benefit analysis.
• Refine and consolidate the near-term action items into a cohesive plan.

This step involves the following participants:

• CIO
• PMO Director/ Portfolio Manager
• Project Managers
• IT Managers

Outcomes of this step

• A cost/benefit analyst
• An implementation action plan
• A finalized PPM Strategic Plan Template

Estimate the total cost-in-use of managing the project portfolio

The time cost of PPM processes (tab 3) and PPM tool costs (tab 4) are summarized in this tab. Enter additional data to estimate the total PPM cost-in-use: the setup information and the current cost of PPM software tools.

Estimate the benefits of managing the project portfolio

The benefits of PPM processes are estimated by projecting the sources of waste on your resource capacity.

1. Estimate the current extent of waste on your resource capacity. If you have completed Info-Tech’s PPM Current Score Scorecard, enter the data from the report.

2. Given your near- and long-term action items for improving PPM processes, estimate how each source of waste on your resource capacity will change.

Review the cost-benefit analysis results and update the PPM Strategic Plan Template

This tab summarizes the costs and benefits of your PPM strategic plan.

• Costs are estimated from wasted project capacity and time spent on PPM process work.
• Benefits are estimated from the project capacity to be reclaimed as a result of improvements in PPM.
• Return on investment is calculated by dividing the value of project capacity to be reclaimed by investment in PPM in addition to the current-state cost.

Capture this summary in your PPM strategic plan.

Customize slides 40 and 41, “Return on PPM investment,” in Info-Tech’s PPM Strategic Plan Template.

Determine who will be responsible for coordinating the flow, collection, and reporting of portfolio data

You will need to determine responsibilities and accountabilities for portfolio management functions within your team.

If you do not have a clearly identifiable portfolio manager at this time, you will need to clarify who will wear which hats in terms of facilitating intake and prioritization, high-level capacity awareness, and portfolio reporting.

• Use Info-Tech’s Project Portfolio Analyst Job Description Template to help clarify some of the required responsibilities to support your PPM strategy.
  • If you need to bring in an additional staff member to help support the strategy, you can customize the job description template to help advertise the position. Simply edit the text in grey within the template.
• If you have other PPM tasks that you need to define responsibilities for, you can use the RASCI chart on the final tab of the PPM Strategy Develop Tool.

Download Info-Tech’s Project Portfolio Analyst Job Description Template.

Refine and consolidate the near-term action items into a cohesive plan

3.2.4 – 30 minutes

INPUT: Near-term action items

OUTPUT: Near-term action plan

Materials: PPM Strategy Development Tool

Participants: PMO Director/ Portfolio Manager, Project Managers, Resource Managers, Business Analysts

Collect the near-term action items for each of the five PPM processes and arrange them into a table that outlines the near-term action plan. Once it is compiled, adjust the timeline and responsibility so that the plan is coherent and realistic as a whole.

Example:

"There is a huge risk of taking on too much too soon, especially with the introduction of specific tools and tool sets. There is also an element of risk involved that can lead to failure and disappointment with PPM if these tools are not properly introduced and supported." (Jim Carse, Director of the Portfolio Office, Queen’s University)

Review and customize slide 43, “Summary of near-term action plan,” in Info-Tech’s PPM Strategic Plan Template.

Finalize and publish your PPM strategic plan

If you want additional support, have our analysts guide you through this phase as part of an Info-Tech Workshop

Book a workshop with our Info-Tech analysts:

To accelerate this project, engage your IT team in an Info-Tech workshop with an Info-Tech analyst team. Info-Tech analyst will join you and your team onsite at your location or welcome you to Info-Tech's historic Toronto office to participate in an innovative onsite workshop. Contact your account manager (www.infotech.com/account), or email Workshops@InfoTech.com for more information.

The following are sample activities that will be conducted by Info-Tech analysts with your team:

	Scope the right-sized PPM solution for your PPM strategy Use the PPM Strategy Development Tool to quickly determine our near- and long-term recommendation for your PPM solution.
	Conduct a cost-benefit analysis of your PPM strategic plan Using the time cost estimates of each process and the requirement for a PPM tool, Info-Tech helps you quantify the overhead costs of PPM and estimate the monetary benefits of reclaimed project capacity for your project portfolio.

Insight breakdown

Insight 1

• Executive layer buy-in is a critical prerequisite for the success of a top-down PPM strategy. Ensure your executives are on board before preceding to implement your PPM strategy.

Insight 2

• The means of project and portfolio management (i.e. processes) shouldn’t eclipse the ends – strategic goals. Root your process in your PPM strategic goals to realize PPM benefits (e.g. optimized portfolio value, improved project throughput, increased stakeholder satisfaction).

Insight 3

• Without the proper information, decision makers are driving blind and are forced to make gut-feel decisions as opposed to data-informed decisions. Implement a PPM solution to allocate projects properly and ensure time and money don’t vanish without being accounted for.

Summary of accomplishment

Knowledge Gained

• Info-Tech’s thought model on PPM processes that create an infrastructure around projects
• Your current state of project portfolio: project capacity vs. project demand
• Importance of gaining executive buy-in for installing the PPM practice

Processes Optimized

• Project intake, prioritization, and approval process
• Resource management process
• Portfolio reporting process
• Project closure process
• Benefits realization process

Deliverables Completed

• Choice of PPM strategy and the leadership mandate
• Analysis of current project capacity and demand
• PPM process goals and metrics, aligned to meet PPM strategic expectations
• PPM process capability levels
• Retrospective examination of current state, near/long-term action items for improvement, and high-level descriptions of the five PPM processes
• Recommendation of PPM tools to support the processes
• Estimate of PPM overhead costs
• Cost-benefit analysis of PPM practice
• PPM strategic plan

Related Info-Tech Research

• Develop a Project Portfolio Management Strategy
• Grow Your Own PPM Solution
• Optimize Project Intake, Approval, and Prioritization
• Develop a Resource Management Strategy for the New Reality
• Manage a Minimum-Viable PMO
• Establish the Benefits Realization Process
• Manage an Agile Portfolio
• Establish the Benefits Realization Process
• Project Portfolio Management Diagnostic Program
  The Project Portfolio Management Diagnostic Program is a low-effort, high-impact program designed to help project owners assess and improve their PPM practices. Gather and report on all aspects of your PPM environment in order to understand where you stand and how you can improve.

Research contributors and experts

Kiron D. Bondale PMP, PMI-RMP, CDAP, CDAI Senior Project Portfolio Management Professional Kiron has worked in the project management domain for more than fifteen years managing multiple projects, leading Project Management Offices (PMO) and providing project portfolio management consulting services to over a hundred clients across multiple industries. He has been an active member of the Project Management Institute (PMI) since 1999 and served as a volunteer director on the Board of the PMI Lakeshore Chapter for six years. Kiron has published articles on project and project portfolio management in multiple journals and has delivered over a hundred webinar presentations on a variety of PPM and PM topics and has presented at multiple industry conferences. Since 2009, Kiron has been blogging on a weekly basis on project management topics and responds to questions daily in the LinkedIn PMI Project, Program and Portfolio Management discussion group.

Shaun Cahill, Project Manager & Jim Carse, Director of the Project Portfolio Office Queen’s University

Research contributors and experts

Amy Fowler Stadler, Managing Partner Lewis Fowler Amy has more than 20 years of experience in business and technology, most recently owning her own management consulting firm since 2002, focused on business transformation, technology enablement, and operational improvement. Prior to that, she was at CenturyLink (formerly Qwest) as an IT Director, Perot Systems in various roles, and Information Handling Services, Inc. as a Software Development Product Manager. Amy holds a bachelor’s degree in Computer Science with a minor in Business Communications and is also a 2015 Hall of Fame inductee to Illinois State University College of Applied Science and Technology.

Rick Morris, President R2 Consulting LLC Rick A. Morris, PMP, is a certified Scrum Agile Master, Human Behavior Consultant, best-selling author, mentor, and evangelist for project management. Rick is an accomplished project manager and public speaker. His appetite for knowledge and passion for the profession makes him an internationally sought after speaker delivering keynote presentations for large conferences and PMI events around the world. He holds the PMP (Project Management Professional), MPM (Masters of Project Management), Scrum Agile Master, OPM3, Six Sigma Green Belt, MCITP, MCTS, MCSE, TQM, ATM-S, ITIL, and ISO certifications, and is a John Maxwell Certified Speaker, Mentor, and Coach. Rick is the Owner of R2 Consulting, LLC and has worked for organizations such as GE, Xerox, and CA, and has consulted with numerous clients in a wide variety of industries including financial services, entertainment, construction, non-profit, hospitality, pharmaceutical, retail, and manufacturing.

Research contributors and experts

Terry Lee Ricci PgMP, PfMP, PMP, PPM Practice Lead IAG Consulting Terry is passionate and highly skilled at PMO transformation, developing high-performing teams that sustain long-term business results. Terry has a reputation built upon integrity, resourcefulness, and respect. She has the vision to implement long and short-term strategies, meeting both current and evolving business needs. Change Management/Business transformation: Terry has extensive background in PMO strategy development aligned to corporate goals. Many years in the PMO organization integration/transformation building or overhauling programs and processes. Governance: Terry loves to monitor and measure performance and outcomes and uses her collaborative style to successfully bring simplicity to complexity (technology – people – process). Performance optimization results are easy to use and clearly define who is doing what across functions. End results consistently align to business strategy while mitigating risks effectively. Comprehensive: A “through the ranks” executive with a comprehensive understanding of PMO operations, high-performance teams, and the respective business units they support.

Alana Ruckstuhl MSc, IT Project Officer Federal Economic Development Agency for Southern Ontario

Research contributors and experts

Jay Wardle, Director of the PMO Red Wing Shoes Co.

Bob White, Vice President/Chief Information Officer ALM Holding Company As vice president and chief information officer for ALM Holding Company, Bob White directs all technology activity and support for three main verticals: road construction, energy management, and delivery and transportation. He has been with ALM Holding Company for one and a half years, focusing on PPM process improvement, cybersecurity initiatives, and IT service management. Prior to joining ALM, Bob was executive vice president/chief information officer at Ashley Furniture Industries, Inc. where he led the strategic direction, implementation, and management of information technology throughout the company’s global operations. Bob has also held VP/CIO positions at the Stride Rite Corporation and Timex Corporation. Bob holds a Master’s degree in Operations Management from the University of Arkansas and a Bachelor of Science degree in Industrial Engineering from Southern Illinois University.

Bibliography

Bersin, Josh. “Time to Scrap Performance Appraisals?” Forbes Magazine, 5 June 2013. Web. 30 Oct 2013.

Cheese, Peter et al. “Creating an Agile Organization.” Accenture, Oct. 2009. Web. Nov. 2013.

Croxon, Bruce et al. “Dinner Series: Performance Management with Bruce Croxon from CBC's 'Dragon's Den'” HRPA Toronto Chapter. Sheraton Hotel, Toronto, ON. 12 Nov. 2013. Panel discussion.

Culbert, Samuel. “10 Reasons to Get Rid of Performance Reviews.” Huffington Post Business, 18 Dec. 2012. Web. 28 Oct. 2013.

Denning, Steve. “The Case Against Agile: Ten Perennial Management Objections.” Forbes Magazine, 17 Apr. 2012. Web. Nov. 2013.

Estis, Ryan. “Blowing up the Performance Review: Interview with Adobe’s Donna Morris.” Ryan Estis & Associates, 17 June 2013. Web. Oct. 2013.

Gallup, Inc. “Gallup Study: Engaged Employees Inspire Company Innovation.” Gallup Management Journal, 12 Oct. 2006. Web. 12 Jan 2012.

Gartside, David et al. “Trends Reshaping the Future of HR.” Accenture, 2013. Web. 5 Nov. 2013.

KeyedIn Solutions. “Why PPM and PMOs Fail.” KeyedIn Projects, 2013. Ebook.

Lessing, Lawrence. Free Culture. Lulu Press Inc.: 30 July 2016.

Merkhofer, Lee. “Keys to Implementing Project Portfolio Management.” Lee Merkhofer Consulting, 2017.

Perry, Mark Price. Business Driven Project Portfolio Management. J Ross Pub: 17 May 2011.

Project Management Institute. “Pulse of the Profession 2015: Capturing the Value of Project Management.” PMI, Feb. 2015. Web.

Project Management Institute. “Pulse of the Profession 2016: The High Cost of Low Performance.” PMI, 2016. Web.

Project Management Institute. “Pulse of the Profession 2017: Success Rates Rise.” PMI, 2017. Web.

Project Management Institute. The Standard for Portfolio Management – Third Edition. PMI: 1 Dec. 2012.

WGroup. “Common Pitfalls in Project Portfolio Management – Part 2.” WGroup, 24 Jan. 2017. Web.

Get the Most Out of Your CRM

In today’s connected world, continuous optimization of enterprise applications to realize your digital strategy is key.

Get the Most Out of Your CRM

In today’s connected world, continuous optimization of enterprise applications to realize your digital strategy is key.

EXECUTIVE BRIEF

Analyst Perspective

Focus optimization on organizational value delivery.

Customer relationship management (CRM) systems are at the core of a customer-centric strategy to drive business results. They are critical to supporting marketing, sales, and customer service efforts.

CRM systems are expensive, their benefits are difficult to quantify, and they often suffer from poor user satisfaction. Post implementation, technology evolves, organizational goals change, and the health of the system is not monitored. This is complicated in today’s digital landscape with multiple integration points, siloed data, and competing priorities.

Too often organizations jump into the selection of replacement systems without understanding the health of their current systems. IT leaders need to stop reacting and take a proactive approach to continually monitor and optimize their enterprise applications. Strategically realign business goals, identify business application capabilities, complete a process assessment, evaluate user adoption, and create an optimization roadmap that will drive a cohesive technology strategy that delivers results.

Lisa Highfield
Research Director,
Enterprise Applications
Info-Tech Research Group

Executive Summary

Your Challenge

In today’s connected world, continuous optimization of enterprise applications to realize your digital strategy is key.

Enterprise applications often involve large capital outlay and unquantified benefits.

CRM application portfolios are often messy. Add to that poor processes, distributed data, and lack of training – business results and user dissatisfaction is common.

Technology owners are often distributed across the business. Consolidation of optimization efforts is key.

Common Obstacles

Enterprise applications involve large numbers of processes and users. Without a clear focus on organizational needs, decisions about what and how to optimize can become complicated.

Competing and conflicting priorities may undermine optimization value by focusing on the approaches that would only benefit one line of business rather than the entire organization.

Teams do not have a framework to illustrate, communicate, and justify the optimization effort in the language your stakeholders understand.

Info-Tech’s Approach

Build an ongoing optimization team to conduct application improvements.

Assess your CRM application(s) and the environment in which they exist. Take a business-first strategy to prioritize optimization efforts.

Validate CRM capabilities, user satisfaction, issues around data, vendor management, and costs to build out an optimization strategy

Pull this all together to develop a prioritized optimization roadmap.

Info-Tech Insight

CRM implementation should not be a one-and-done exercise. A properly optimized CRM ecosystem will reduce costs and increase productivity.

Insight Summary

Continuous assessment and optimization of customer relationship management (CRM) systems is critical to their success.

• Applications and the environments in which they live are constantly evolving.
• Get the Most Out of Your CRM provides business and application managers a method to complete a health assessment on their CRM systems to identify areas for improvement and optimization.
• Put optimization practices into effect by:
  • Aligning and prioritizing key business and technology drivers.
  • Identifying CRM process classification, and performing a gap analysis.
  • Measuring user satisfaction across key departments.
  • Evaluating vendor relations.
  • Understanding how data fits.
  • Pulling it all together into an optimization roadmap.

CRM platforms are the applications that provide functional capabilities and data management around the customer experience (CX).

Marketing, sales, and customer service are enabled through CRM technology.

CRM technologies facilitate an organization’s relationships with customers, service users, employees, and suppliers.

CRM technology is critical to managing the lifecycle of these relationships, from lead generation, to sales opportunities, to ongoing support and nurturing of these relationships.

Customer experience management (CXM)

CRM platforms sit at the core of a well-rounded customer experience management ecosystem.

Customer Relationship Management

• Web Experience Management Platform
• E-Commerce & Point-of-Sale Solutions
• Social Media Management Platform
• Customer Intelligence Platform
• Customer Service Management Tools
• Marketing Management Suite

Customer relationship management suites are one piece of the overall customer experience management ecosystem, alongside tools such as customer intelligence platforms and adjacent point solutions for sales, marketing, and customer service. Review Info-Tech’s CXM blueprint to build a complete, end-to-end customer interaction solution portfolio that encompasses CRM alongside other critical components. The CXM blueprint also allows you to develop strategic requirements for CRM based on customer personas and external market analysis.

CRM by the numbers

1/3

Statistical analysis of CRM projects indicate failures vary from 18% to 69%. Taking an average of those analyst reports, about one-third of CRM projects are considered a failure.
Source: CIO Magazine, 2017

85%

Companies that apply the principles of behavioral economics outperform their peers by 85% in sales growth and more than 25% in gross margin.
Source: Gallup, 2012

40%

In 2019, 40% of executives name customer experience the top priority for their digital transformation.
Source: CRM Magazine, 2019

CRM dissatisfaction

Info-Tech Insight

While technology is the key enabler of building strong customer experiences, there are many other drivers of dissatisfaction. IT must stand shoulder to shoulder with the business to develop a technology framework for customer relationship management.

Marketing, Sales, and Customer Service, along with IT, can only optimize CRM with the full support of each other. The cooperation of the departments is crucial when trying to improve CRM technology capabilities and customer interaction.

Application optimization is risky without a plan

Avoid the common pitfalls.

• Not considering application optimization as a business and IT partnership that requires continuous formal engagement of all participants.
• Not having a good understanding of current state, including integration points and data.
• Not adequately accommodating feedback and changes after digital applications are deployed and employed.
• Not treating digital applications as a motivator for potential future IT optimization effort, and not incorporating digital assets in strategic business planning.
• Not involving department leads, management, and other subject matter experts to facilitate the organizational change digital applications bring.

“A successful application optimization strategy starts with the business need in mind and not from a technological point of view. No matter from which angle you look at it, modernizing a legacy application is a considerable undertaking that can’t be taken lightly. Your best approach is to begin the journey with baby steps.”
– Ernese Norelus, Sreeni Pamidala, and Oliver Senti
Medium, 2020

Info-Tech’s methodology for Get the Most Out of Your CRM

Get the Most Out of Your CRM Workbook

Each step of this blueprint is accompanied by supporting deliverables to help you accomplish your goals.

Key deliverable:

CRM Optimization Roadmap (Tab 8)

Complete an assessment of processes, user satisfaction, data quality, and vendor management using the Workbook or the APA diagnostic.

CRM Business Model (Tab 2)

Align your business and technology goals and objectives in the current environment.

Prioritized CRM Optimization Goals (Tab 3)

Identify and prioritize your CRM optimization goals.

Application Portfolio Assessment (APA)

Assess IT-enabled user satisfaction across your CRM portfolio.

Prioritized Process Assessment (Tab 5)

Understand areas for improvement.

Case Study

Align strategy and technology to meet consumer demand.

INDUSTRY - Entertainment
SOURCE - Forbes, 2017

Challenge

Beginning as a mail-out service, Netflix offered subscribers a catalog of videos to select from and have mailed to them directly. Customers no longer had to go to a retail store to rent a video. However, the lack of immediacy of direct mail as the distribution channel resulted in slow adoption.

Blockbuster was the industry leader in video retail but was lagging in its response to industry, consumer, and technology trends around customer experience

Solution

In response to the increasing presence of tech-savvy consumers on the internet, Netflix invested in developing its online platform as its primary distribution channel. The benefit of doing so was two-fold: passive brand advertising (by being present on the internet) and meeting customer demands for immediacy and convenience. Netflix also recognized the rising demand for personalized service and created an unprecedented, tailored customer experience.

Results

Netflix’s disruptive innovation is built on the foundation of great customer experience management. Netflix is now a $28-billion company, which is tenfold what Blockbuster was worth.

Netflix used disruptive technologies to innovatively build a customer experience that put it ahead of the long-time, video rental industry leader, Blockbuster.

Info-Tech offers various levels of support to best suit your needs

DIY Toolkit

“Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.”

Guided Implementation

“Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.”

Workshop

“We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.”

Consulting

“Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.”

Diagnostics and consistent frameworks used throughout all four options

Guided Implementation

What does a typical GI on this topic look like?

A Guided Implementation (GI) is series of calls with an Info-Tech analyst to help implement our best practices in your organization.

A typical GI is between 8 to 12 calls over the course of 4 to 6 months.

Workshop Overview

Contact your account representative for more information.
workshops@infotech.com 1-888-670-8889

Phase 1

Map Current-State Capabilities

• 1.1 Identify Stakeholders and Build Your Optimization Team
• 1.2 Build a CRM Strategy Model
• 1.3 Inventory Current System State
• 1.4 Define Business Capabilities
• 1.5 Understand CRM Costs

Get the Most Out of Your CRM

This phase will walk you through the following activities:

• Align your organizational goals
• Gain a firm understanding of your current state
• Inventory CRM and related applications
• Confirm the organization’s capabilities

This phase involves the following participants:

• Product Owners
• CMO
• Departmental leads – Sales, Marketing, Customer Service, or other
• Applications Director
• Senior Business Analyst
• Senior Developer
• Procurement Analysts

Inventory of CRM and related systems

Develop an integration map to specify which applications will interface with each other.

Integration is paramount: your CRM application often integrates with other applications within the organization. Create an integration map to reflect a system of record and the exchange of data. To increase customer engagement, channel integration is a must (i.e. with robust links to unified communications solutions, email, and VoIP telephony systems).

CRM plays a key role in the more holistic customer experience framework. However, it is heavily influenced by and often interacts with many other platforms.

Data is one key consideration that needs to be considered here. If customer information is fragmented, it will be nearly impossible to build a cohesive view of the customer. Points of integration (POIs) are the junctions between the CRM(s) and other applications where data is flowing to and from. They are essential to creating value, particularly in customer insight-focused and omnichannel-focused deployments.

Customer expectations are on the rise

CRM strategy is a critical component of customer experience (CX).

CUSTOMER EXPERIENCE

1. Thoughtfulness is in
   Connect with customers on a personal level
2. Service over products
   The experience is more important than the product
3. Culture is now number one
   Culture is the most overlooked piece of customer experience strategy
4. Engineering and service finally join forces
   Companies are combining their technology and service efforts to create
   strong feedback loops
5. The B2B world is inefficiently served
   B2B needs to step up with more tools and a greater emphasis placed on
   customer experience

Source: Forbes, 2019

Build a cohesive CRM strategy that aligns business goals with CRM capabilities.

Info-Tech Insight

Customers expect to interact with organizations through the channels of their choice. Now more than ever, you must enable your organization to provide tailored customer experiences.

IT is critical to the success of your CRM strategy

Today’s shared digital landscape of the CIO and CMO

CIO

• IT Operations
• Service Delivery and Management
• IT Support
• IT Systems and Application
• IT Strategy and Governance
• Cybersecurity

Collaboration and Partnership

• Digital Strategy = Transformation
  Business Goals | Innovation | Leadership | Rationalization
• Customer Experience
  Architecture | Design | Omnichannel Delivery | Management
• Insight (Market Facing)
  Analytics | Business Intelligence | Machine Learning | AI
• Marketing Integration + Operating Model
  Apps | Channels | Experiences | Data | Command Center
• Master Data
  Customer | Audience | Industry | Digital Marketing Assets

CMO

• PEO Media
• Brand Management
• Campaign Management
• Marketing Tech
• Marketing Ops
• Privacy, Trust, and Regulatory Requirements

Info-Tech Insight

Technology is the key enabler of building strong customer experiences: IT must stand shoulder to shoulder with the business to develop a technology framework for customer relationship management.

Step 1.1

Identify Stakeholders and Build Your Optimization Team

Activities

1.1.1 Identify the stakeholders whose support will be critical to success

1.1.2 Select your CRM optimization team

Map Current-State Capabilities

This step will walk you through the following activities:

• Identify CRM drivers and objectives.
• Explore CRM challenges and pain points.
• Discover CRM benefits and opportunities.
• Align the CRM foundation with the corporate strategy.

This step involves the following participants:

• Stakeholders
• Project sponsors and leaders

Outcomes of this step

• Stakeholder map
• CRM optimization team composition

CRM optimization stakeholders

Understand the roles necessary to get the most out of your CRM.

Understand the role of each player within your optimization initiative. Look for listed participants on the activity slides to determine when each player should be involved.

Info-Tech Insight

Do not limit input or participation. Include subject matter experts and internal stakeholders at stages within the optimization initiative. Such inputs can be solicited on a one-off basis as needed. This ensures you take a holistic approach to creating your CRM optimization strategy.

1.1.1 Identify stakeholders critical to success

1 hour

1. Hold a meeting to identify the stakeholders that should be included in the project’s steering committee.
2. Finalize selection of steering committee members.
3. Contact members to ensure their willingness to participate.
4. Document the steering committee members and the milestone/presentation expectations for reporting project progress and results.
   

Input

• Stakeholder interviews
• Business process owners list

Output

• CRM optimization stakeholders
• Steering committee members

Materials

• N/A

Participants

• Product Owners
• CMO
• Departmental Leads – Sales, Marketing, Customer Service (and others)
• Applications Director
• Senior Business Analyst
• Senior Developer
• Procurement Analyst

The CRM optimization team

Consider the core team functions when composing the CRM optimization team. Form a cross-functional team (i.e. across IT, Marketing, Sales, Service, Operations) to create a well-aligned CRM optimization strategy.

Don’t let your core team become too large when trying to include all relevant stakeholders. Carefully limiting the size of the optimization team will enable effective decision making while still including functional business units such as Marketing, Sales, Service, and Customer Service.

1.1.2 Select your CRM optimization team

30 minutes

1. Have the CMO and other key stakeholders discuss and determine who will be involved in the CRM optimization project.
   • Depending on the initiative and the size of the organization the size of the team will vary.
   • Key business leaders in key areas – Sales, Marketing, Customer Service, and IT – should be involved.
2. Document the members of your optimization team in the Get the Most Out of Your CRM Workbook, tab “1. Optimization Team.”
   • Depending on your initiative and size of your organization, the size of this team will vary.

Get the Most Out of Your CRM Workbook

Input

• Stakeholders

Output

• List of CRM Optimization Team members

Materials

• Get the Most Out of Your CRM Workbook

Participants

• Product Owners
• CMO
• Departmental Leads – Sales, Marketing, Customer Service
• Applications Director
• Senior Business Analyst
• Senior Developer
• Procurement Analyst

Step 1.2

Build a CRM Strategy Model

Activities

• 1.2.1 Explore environmental factors and technology drivers
• 1.2.2 Discuss challenges and pain points
• 1.2.3 Discuss opportunities and benefits
• 1.2.4 Align CRM strategy with organizational goals

Map Current-State Capabilities

This step will walk you through the following activities:

• Identify CRM drivers and objectives.
• Explore CRM challenges and pain points.
• Discover the CRM benefits and opportunities.
• Align the CRM foundation with the corporate strategy.

This step involves the following participants:

• CRM Optimization Team

Outcomes of this step

• CRM business model
• Strategy alignment

Align the CRM strategy with the corporate strategy

Corporate Strategy

Your corporate strategy:

• Conveys the current state of the organization and the path it wants to take.
• Identifies future goals and business aspirations.
• Communicates the initiatives that are critical for getting the organization from its current state to the future state.

Unified Strategy

• The CRM optimization can be and should be linked, with metrics, to the corporate strategy and ultimate business objectives.

CRM Strategy

Your CRM Strategy:

• Communicates the organization’s budget and spending on CRM.
• Identifies IT initiatives that will support the business and key CRM objectives.
• Outlines staffing and resourcing for CRM initiatives.

CRM projects are more successful when the management team understands the strategic importance and the criticality of alignment. Time needs to be spent upfront aligning business strategies with CRM capabilities. Effective alignment between Sales, Marketing, Customer Service, Operations, IT, and the business should happen daily. Alignment doesn’t just need to occur at the executive level but at each level of the organization.

Sample CRM objectives

Identifying organizational objectives of high priority will assist in breaking down business needs and CRM objectives. This exercise will better align the CRM systems with the overall corporate strategy and achieve buy-in from key stakeholders.

CRM business model Template

Understand objectives for creating a strong CRM strategy

Info-Tech Insight

One of the biggest drivers for CRM adoption is the ability to make decisions through consolidated data. This driver is a result of external considerations. Many industries today are highly competitive, uncertain, and rapidly changing. To succeed under these pressures, there needs to be timely information and visibility into all components of the organization.

1.2.1 Explore environmental factors and technology drivers

30 minutes

1. Identify business drivers that are contributing to the organization’s need for CRM.
2. Understand how the company is running today and what the organization’s future will look like. Try to identify the purpose for becoming an integrated organization. Use a whiteboard and markers to capture key findings.
3. Consider environmental factors: external considerations, organizational drivers, technology drivers, and key functional requirements.
4. Use the Get the Most Out of Your CRM Workbook, tab “2. Business Model,” to complete this exercise.

Get the Most Out of Your CRM Workbook

External Considerations	Organizational Drivers	Technology Considerations	Functional Requirements
Funding Constraints Regulations	Compliance Scalability Operational Efficiency	Data Accuracy Data Quality Better Reporting	Information Availability Integration Between Systems Secure Data

Create a realistic CRM foundation by identifying the challenges and barriers to the project

There are several different factors that may stifle the success of an CRM portfolio. Organizations creating an CRM foundation must scan their current environment to identify internal barriers and challenges.

Common Internal Barriers

1.2.2 Discuss challenges and pain points

30 minutes

1. Identify challenges with current systems and processes.
2. Brainstorm potential barriers to success. Use a whiteboard and markers to capture key findings.
3. Consider the project barriers: functional gaps, technical gaps, process gaps, and barriers to CRM success.
4. Use the Get the Most Out of Your CRM Workbook, tab “2. Business Model,” to complete this exercise.

Get the Most Out of Your CRM Workbook

Functional Gaps	Technical Gaps	Process Gaps	Barriers to Success
No sales tracking within core CRM	Inconsistent reporting – data quality concerns	Duplication of data Lack of system integration	Cultural mindset Resistance to change Lack of training Funding

1.2.3 Discuss opportunities and benefits

30 minutes

1. Identify opportunities and benefits from an integrated system.
2. Brainstorm potential enablers for successful CRM enablement and the ideal portfolio.
3. Consider the project enablers: business benefits, IT benefits, organizational benefits, and enablers of CRM success.
4. Use the Get the Most Out of Your CRM Workbook, tab “2. Business Model,” to complete this exercise.

Business Benefits	IT Benefits	Organizational Benefits	Enablers of Success
Business-IT alignment	Compliance Scalability Operational Efficiency	Data Accuracy Data Quality Better Reporting	Change Management Training Alignment to Strategic Objectives

1.2.4 Align CRM strategy with organizational goals

1 hour

1. Discuss your corporate objectives (organizational goals). Choose three to five corporate objectives that are a priority for the organization in the current year.
2. Break into groups and assign each group one corporate objective.
3. For each objective, produce several ways an optimized CRM system will meet the given objective.
4. Think about the modules and CRM functions that will help you realize these benefits.
5. Use the Get the Most Out of Your CRM Workbook, tab “2. Business Model,” to complete this exercise.

Input

• Organizational goals
• CRM strategy model

Output

• Optimization benefits map

Materials

• Get the Most Out of Your CRM Workbook

Participants

• Product Owners
• CMO
• Departmental Leads – Sales, Marketing, Customer Service
• Applications Director
• Senior Business Analyst
• Senior Developer
• Procurement Analyst

Download the Get the Most Out of Your CRM Workbook

Step 1.3

Inventory Current System State

Activities

1.3.1 Inventory applications and interactions

Map Current-State Capabilities

This step will walk you through the following activities:

• Inventory applications
• Map interactions between systems

This step involves the following participants:

• CRM Optimization Team
• Enterprise Architect
• Data Architect

Outcomes of this step

• Systems inventory
• Systems diagram

1.3.1 Inventory applications and interactions

1-3 hours

1. Individually list all electronic systems involved in the organization. This includes anything related to customer information and interactions, such as CRM, ERP, e-commerce, finance, email marketing, and social media, etc.
2. Document data flows into and out of each system to the ERP. Refer to the example on the next slide (CRM data flow).
3. Review the processes in place (e.g. reporting, marketing, data moving into and out of systems). Document manual processes. Identify integration points. If flowcharts exist for these processes, it may be useful to provide these to the participants.
4. If possible, diagram the system. Include information direction flow. Use the sample CRM map, if needed.

CRM data flow

Be sure to include enterprise applications that are not included in the CRM application portfolio. Popular systems to consider for POIs include billing, directory services, content management, and collaboration tools.

When assessing the current application portfolio that supports CRM, the tendency will be to focus on the applications under the CRM umbrella, relating mostly to Marketing, Sales, and Customer Service. Be sure to include systems that act as input to, or benefit due to outputs from, the CRM or similar applications.

Sample CRM map

Step 1.4

Define Business Capabilities

Activities

1.4.1 Define business capabilities

1.4.2 List your key CRM processes

Map Current-State Capabilities

This step will walk you through the following activities:

• Define your business capabilities
• List your key CRM processes

This step involves the following participants:

• CRM Optimization Team
• Business Architect

Outcomes of this step

• Business capabilities map
• Key CRM processes list

Business capability map (Level 0)

In business architecture, the primary view of an organization is known as a business capability map.

A business capability defines what a business does to enable value creation, rather than how.

Business capabilities:

• Represent stable business functions.
• Are unique and independent of each other.
• Typically will have a defined business outcome.

A business capability map provides details that help the business architecture practitioner direct attention to a specific area of the business for further assessment.

Capability vs. process vs. feature

Understanding the difference

When examining CRM optimization, it is important we approach this from the appropriate layer.

Capability:

• The ability of an entity (e.g. organization or department) to achieve its objectives (APQC, 2017).
• An ability that an organization, person, or system possesses. Typically expressed in general and high-level terms and typically require a combination of organization, people, processes, and technology to achieve (TOGAF).

Process:

• Can be manual or technology enabled. A process is a series of interrelated activities that convert inputs into results (outputs). Processes consume resources, require standards for repeatable performance, and respond to control systems that direct the quality, rate, and cost of performance. The same process can be highly effective in one circumstance and poorly effective in another with different systems, tools, knowledge, and people (APQC, 2017).

Feature:

• Is a distinguishing characteristic of a software item (e.g. performance, portability, or functionality) (IEEE, 2005).

In today’s complex organizations, it can be difficult to understand where inefficiencies stem from and how performance can be enhanced.
To fix problems and maximize efficiencies business capabilities and processes need to be examined to determine gaps and areas of lagging performance.

Info-Tech’s CRM framework and industry tools such as the APQC’s Process Classification Framework can help make sense of this.

1.4.1 Define business capabilities

1-3 hours

1. Look at the major functions or processes within the scope of CRM.
2. Compile an inventory of current systems that interact with the chosen processes. In its simplest form, document your application inventory in a spreadsheet (see tab 3 of the CRM Application Inventory Tool). For large organizations, interview representatives of business domains to help create your list of applications.
3. Make sure to include any processes that are manual versus automated.
4. Use your current state drawing from activity 1.3.1 to link processes to applications for further effect.

CRM Application Inventory Tool

Input

• Current systems
• Key processes
• APQC Framework
• Organizational process map

Output

• List of key business processes

Materials

• CRM Application Inventory Tool
• CRM APQC Framework
• Whiteboard, PowerPoint, or flip charts
• Pens/markers

Participants

• CRM Optimization Team

CRM process mapping

The operating model

An operating model is a framework that drives operating decisions. It helps to set the parameters for the scope of CRM and the processes that will be supported. The operating model will serve to group core operational processes. These groupings represent a set of interrelated, consecutive processes aimed at generating a common output.

The Value Stream

Value Stream Defined

Value streams connect business goals to the organization’s value realization activities in the marketplace. Those activities are dependent on the specific industry segment in which an organization operates.

There are two types of value streams: core value streams and support value streams.

• Core value streams are mostly externally facing. They deliver value to either an external or internal customer and they tie to the customer perspective of the strategy map.
• Support value streams are internally facing and provide the foundational support for an organization to operate.

An effective method for ensuring all value streams have been considered is to understand that there can be different end-value receivers.

APQC Framework

Help define your inventory of sales, marketing, and customer services processes.

Operating Processes

1. Develop Vision and Strategy
2. Develop and Manage Products and Services
3. Market and Sell Products and Services
4. Deliver Physical Products
5. Deliver Services

Management and Support Processes

6. Manage Customer Service
7. Develop and Manage Human Capital
8. Manage Information Technology (IT)
9. Manage Financial Resources
10. Acquire, Construct, and Manage Assets
11. Manage Enterprise Risk, Compliance, Remediation, and Resiliency
12. Manage External Relationships
13. Develop and Manage Business Capabilities

Source: APQC, 2020

If you do not have a documented process model, you can use the APQC Framework to help define your inventory of sales business processes.

APQC’s Process Classification Framework is a taxonomy of cross-functional business processes intended to allow the objective comparison of organizational performance within and among organizations.

Go to this link

Process mapping hierarchy

APQC provides a process classification framework. It allows organizations to effectively define their processes and manage them appropriately.

THE APQC PROCESS CLASSIFICATION FRAMEWORK (PCF)® was developed by non-profit APQC, a global resource for benchmarking and best practices, and its member companies as an open standard to facilitate improvement through process management and benchmarking, regardless of industry, size, or geography. The PCF organizes operating and management processes into 12 enterprise level categories, including process groups and over 1,000 processes and associated activities. To download the full PCF or industry-specific versions of the PCF as well as associated measures and benchmarking, visit www.apqc.org/pcf.

Cross-industry classification framework

Info-Tech Insight

Focus your initial assessment on the level 1 processes that matter to your organization. This allows you to target your scant resources on the areas of optimization that matter most to the organization and minimize the effort required from your business partners.

You may need to iterate the assessment as challenges are identified. This allows you to be adaptive and deal with emerging issues more readily and become a more responsive partner to the business.

1.4.2 List your key CRM processes

1-3 hours

1. Reflect on your organization’s CRM capabilities and processes.
2. Refer to tab 4, “Process Importance,” in your Get the Most Out of Your CRM Workbook. You can use your own processes if you prefer. Consult tab 10. “Framework (Reference)” in the Workbook to explore additional capabilities.
3. Use your CRM goals as a guide.

Get the Most Out of Your CRM Workbook

*Adapted from the APQC Cross-Industry Process Classification Framework, 2019.

Step 1.5

Understand CRM Costs

Activities

1.5.1 List CRM-related costs (optional)

Map Current-State Capabilities

This step will walk you through the following activities:

• Define your business capabilities
• List your key CRM processes

This step involves the following participants:

• Finance Representatives
• CRM Optimization Team

Outcomes of this step

• Current CRM and related operating costs

1.5.1 List CRM-related costs (optional)

3+ hours

Before you can make changes and optimization decisions, you need to understand the high-level costs associated with your current application architecture. This activity will help you identify the types of technology and people costs associated with your current systems.

1. Identify the types of technology costs associated with each current system:
   1. System Maintenance
   2. Annual Renewal
   3. Licensing
2. Identify the cost of people associated with each current system:
   1. Full-Time Employees
   2. Application Support Staff
   3. Help Desk Tickets
3. Use the Get the Most Out of Your CRM Workbook, tab “9. Costs (Optional),” to complete this exercise.

Get the Most Out of Your CRM Workbook

Phase 2

Assess Your Current State

• 2.1 Conduct a Gap Analysis for CRM Processes
• 2.2 Assess User Satisfaction
• 2.3 Review Your Satisfaction With the Vendor and Product

Get the Most Out of Your CRM

This phase will guide you through the following activities:

• Determine process relevance
• Perform a gap analysis
• Perform a user satisfaction survey
• Assess software and vendor satisfaction

This phase involves the following participants:

• CRM optimization team
• Users across functional areas of your CRM and related technologies

Step 2.1

Conduct a Gap Analysis for CRM Processes

Activities

• 2.1.1 Determine process relevance
• 2.1.2 Perform process gap analysis

Assess Your Current State

This step will walk you through the following activities:

• Determine process relevance
• Perform a gap analysis

This step involves the following participants:

• CRM optimization team

Outcomes of this step

• Gap analysis for CRM-related processes (current vs. desired state)

2.1.1 Determine process relevance

1-3 hours

1. Open tab “4. Process Importance,” in the Get the Most Out of Your CRM Workbook.
2. Rate each process for level of importance to your organization on the following scale:
   • Crucial
   • Important
   • Secondary
   • Unimportant
   • Not applicable

Get the Most Out of Your CRM Workbook

2.1.2 Perform process gap analysis

1-3 hours

1. Open tab “5. Process Assessment,” in the Get the Most Out of Your CRM Workbook.
2. For each line item, identify your current state and your desired state on the following scale:
   • Not important
   • Poor
   • Moderate
   • Good
   • Excellent

Get the Most Out of Your CRM Workbook

Step 2.2

Assess User Satisfaction

Activities

• 2.2.1 Prepare and complete a user satisfaction survey
• 2.2.2 Enter user satisfaction

Assess Your Current State

This step will walk you through the following activities:

• Preparation and completion of an application portfolio assessment (APA)
• Entry of the user satisfaction scores into the workbook

This step involves the following participants:

• CRM optimization team
• Users across functional areas of CRM and related technologies

Outcomes of this step

• Understanding of user satisfaction across applications and processes
• Insight into CRM data quality

Benefits of the Application Portfolio Assessment

Assess the health of the application portfolio

• Get a full 360-degree view of the effectiveness, criticality, and prevalence of all relevant applications to get a comprehensive view of the health of the applications portfolio.
• Identify opportunities to drive more value from effective applications, retire nonessential applications, and immediately address at-risk applications that are not meeting expectations.

Provide targeted department feedback

• Share end-user satisfaction and importance ratings for core IT services, IT communications, and business enablement to focus on the right end-user groups or lines of business, and ramp up satisfaction and productivity.

Insight into the state of data quality

• Data quality is one of the key issues causing poor CRM user satisfaction and business results. This can include the relevance, accuracy, timeliness, or usability of the organization’s data.
• Targeted, open-ended feedback around data quality will provide insight into where optimization efforts should be focused.

2.2.1 Prepare and complete a user satisfaction survey

1 hour

Option 1: Use Info-Tech’s Application Portfolio Assessment to generate your user satisfaction score. This tool not only measures application satisfaction but also elicits great feedback from users regarding support they receive from the IT team.

1. Download the CRM Application Inventory Tool.
2. Complete the “Demographics” tab (tab 2).
3. Complete the “Inventory” tab (tab 3).
   1. Complete the inventory by treating each process within the organization as a separate row. Use the processes identified in the process gap analysis as a reference.
   2. Treat every department as a separate column in the department section. Feel free to add, remove, or modify department names to match your organization.
   3. Include data quality for all applications applicable.

Option 2: Use the method of choice to elicit current user satisfaction for each of the processes identified as important to the organization.

1. List processes identified as important (from the Get the Most Out of Your CRM Workbook, tab 4, “Process Importance”).
2. Gather user contact information by department.
3. Ask users to rate satisfaction: Extremely Satisfied, Satisfied, Neutral, Dissatisfied, and Extremely Dissatisfied (on Get the Most Out of Your CRM Workbook, tab 5. “Process Assessment”).

Understand user satisfaction across capabilities and departments within your organization.

Download the CRM Application Inventory Tool

2.2.2 Enter user satisfaction

20 minutes

Using the results from the Application Portfolio Assessment or your own user survey:

1. Open your Get the Most Out of Your CRM Workbook, tab “5. Process Assessment.”
2. For each process, record up to three different department responses.
3. Enter the answers to the survey for each line item using the drop-down options:
   • Extremely Satisfied
   • Satisfied
   • Neutral
   • Dissatisfied
   • Extremely Dissatisfied

Understand user satisfaction across capabilities and departments within your organization.

Get the Most Out of Your CRM Workbook

Step 2.3

Review Your Satisfaction With the Vendor and Product

Activities

2.3.1 Rate your vendor and product satisfaction

2.3.2 Enter SoftwareReviews scores from your CRM Product Scorecard (optional)

Assess Your Current State

This step will walk you through the following activities:

• Rate your vendor and product satisfaction
• Compare with survey data from SoftwareReviews

This step involves the following participants:

• CRM Owner(s)
• Procurement Representative
• Vendor Contracts Manager

Outcomes of this step

• Quantified satisfaction with vendor and product

Use a SoftwareReviews Product Scorecard to evaluate your satisfaction compared to other organizations.

Source: SoftwareReviews, March 2019

Where effective IT leaders spend their time

80% satisfaction score, and the other list is CIOs with <80% satisfaction score.">

Info-Tech Insight

The data shows that effective IT leaders invest a significant amount of time (8%) on vendor management initiatives.

Be proactive in managing you calendar and block time for these important tasks.

CIOs who prioritize vendor management see improved results

Analysis of CIOs’ calendars revealed that how CIOs spend their time has a correlation to both stakeholder IT satisfaction and CEO-CIO alignment.

Those CIOs that prioritized vendor management were more likely to have a business satisfaction score greater than 80%.

2.3.1 Rate your vendor and product satisfaction

30 minutes

Use Info-Tech’s vendor satisfaction survey to identify optimization areas with your CRM product(s) and vendor(s).

Option 1 (recommended): Conduct a satisfaction survey using SoftwareReviews. This option allows you to see your results in the context of the vendor landscape.

Download the Get the Most Out of Your CRM Workbook

Option 2: Use your Get the Most Out of Your CRM Workbook, tab “6. Vendor Optimization,” to review your satisfaction with your software.

SoftwareReviews’ Customer Relationship Management

2.3.2 Enter SoftwareReviews scores (optional)

30 minutes

1. Download the scorecard for your CRM product from the SoftwareReviews website. (Note: Not all products are represented or have sufficient data, so a scorecard may not be available.)
2. Use your Get the Most Out of Your CRM Workbook, tab “6. Vendor Optimization,” to record the scorecard results.
3. Use your Get the Most Out of Your CRM Workbook, tab “6. Vendor Optimization,” to flag areas where your score may be lower than the product scorecard. Brainstorm ideas for optimization.

Download the Get the Most Out of Your CRM Workbook

SoftwareReviews’ Customer Relationship Management

Phase 3

Build Your Optimization Roadmap

• 3.1 Identify Key Optimization Areas
• 3.2 Compile Optimization Assessment Results

Get the Most Out of Your CRM

This phase will walk you through the following activities:

• Identify key optimization areas
• Create an optimization roadmap

This phase involves the following participants:

• CRM Optimization Team

Build your optimization roadmap

Address process gaps

• CRM and related technologies are invaluable to sales, marketing, and customer service enablement, but they must have supported processes driven by business goals.
• Identify areas where capabilities need to be improved and work towards.

Support user satisfaction

• The best technology in the world won’t deliver business results if it is not working for the users who need it.
• Understand concerns, communicate improvements, and support users in all roles.

Improve data quality

• Data quality is unique to each business unit and requires tolerance, not perfection.
• Implement a set of data quality initiatives that are aligned with overall business objectives and aimed at addressing data practices and the data itself.

Proactively manage vendors

• Vendor management is a critical component of technology enablement and IT satisfaction.
• Assess your current satisfaction against those of your peers and work towards building a process that is best fit for your organization.

Info-Tech Insight

Enabling a high-performing, customer-centric sales, marketing, and customer service operations program requires excellent management practices and continuous optimization efforts.

Technology portfolio and architecture is important, but we must go deeper. Taking a holistic view of CRM technologies in the environments in which they operate allows for the inclusion of people and process improvements – this is key to maximizing business results.

Using a formal CRM optimization initiative will drive business-IT alignment, identify IT automation priorities, and dig deep into continuous process improvement.

Step 3.1

Identify Key Optimization Areas

Activities

• 3.1.1 Explore process gaps
• 3.1.2 Analyze user satisfaction
• 3.1.3 Assess data quality
• 3.1.4 Analyze product satisfaction and vendor management

Build Your Optimization Roadmap

This step will guide you through the following activities:

• Explore existing process gaps
• Identify the impact of processes on user satisfaction
• Identify the impact of data quality on user satisfaction
• Review your overall product satisfaction and vendor management

This step involves the following participants:

• CRM Optimization Team

Outcomes of this step

• Application optimization plan

3.1.1 Explore process gaps

1 hour

1. Review the compiled CRM Process Assessment in the Get the Most Out of Your CRM Workbook, tab “7. Process Prioritization.”
2. These are processes you should prioritize.

• The activities in the rest of Step 3.1 help you create optimization strategies for the different areas of improvement these processes relate to: user satisfaction, data quality, product satisfaction, and vendor management.

Get the Most Out of Your CRM Workbook

Plan your product optimization strategy for each area of improvement

3.1.2 Analyze user satisfaction

1 hour

1. Use the APA survey results from activity 2.2.1 (or your own internal survey) to identify areas where the organization is performing low in user satisfaction across the CRM portfolio.
   1. Understand application portfolio and IT service satisfaction.
   2. Identify cost savings opportunities from unused or unimportant apps.
   3. Build a roadmap for improving user IT services.
   4. Manage needs by department and seniority.
2. Consolidate your optimization strategies in the Get the Most Out of Your CRM Workbook, tab “8. Optimization Roadmap.” (See next slide for screenshot.)

Get the Most Out of Your CRM Workbook

Plan your user satisfaction optimization strategy

Next steps in improving your data quality

3.1.3 Assess data quality

1 hour

1. Use your APA survey results (if available) to identify areas where the organization is performing low in data quality initiatives. Common areas for improvement include:
   • Overall data quality management
   • Effective data governance
   • Poor data integration
   • The need to implement extensible data warehousing
     
2. Consolidate your optimization strategies in the Get the Most Out of Your CRM Workbook, tab “8. Optimization Roadmap.” (See next slide for screenshot.)

Get the Most Out of Your CRM Workbook

Plan your data quality optimization strategy

Use Info-Tech’s vendor management initiative (VMI)

Create a right-size, right-fit strategy for managing the vendors relevant to your organization.

Info-Tech Insight

A VMI is a formalized process within an organization, responsible for evaluating, selecting, managing, and optimizing third-party providers of goods and services.

The amount of resources you assign to managing vendors depends on the number and value of your organization’s relationships. Before optimizing your vendor management program around the best practices presented in this blueprint, assess your current maturity and build the process around a model that reflects the needs of your organization.

Info-Tech uses VMI interchangeably with the terms “vendor management office (VMO),” “vendor management function,” “vendor management process,” and “vendor management program.”

Jump Start Your Vendor Management Initiative

3.1.4 Analyze product satisfaction and vendor management

1 hour

1. Use the Get the Most Out of Your CRM Workbook, tab “6. Vendor Optimization.”
2. Download the SoftwareReviews Vendor Scorecard.
3. Using the scorecards, compare your results with those of your peers.
4. Consolidate areas of improvement and optimization strategies in the Get the Most Out of Your CRM Workbook, tab “8. Optimization Roadmap.” (See next slide for screenshot.)

See previous slide for help around implementing a vendor management initiative.

Get the Most Out of Your CRM Workbook

Plan your vendor management optimization strategy

Step 3.2

Compile Optimization Assessment Results

Activities

• 3.2.1 Identify key optimization areas

Build Your Optimization Roadmap

This step will guide you through the following activities:

• Use your work from previous activities and prioritization to build your list of optimization activities and lay them out on a roadmap

This step involves the following participants:

• CRM Optimization Team

Outcomes of this step

• Application optimization plan

3.2.1 Identify key optimization areas

1-3 hours

Before you can make changes and optimization decisions, you need to understand the high-level costs associated with your current application architecture. This activity will help you identify the types of technology and people costs associated with your current systems.

1. Consolidate your findings and identify optimization priorities (Step 3.1).
2. Prioritize those most critical to the organization, easiest to change, and whose impact will be highest.
3. Use the information gathered from exercise 1.5.1 on Get the Most Out of Your CRM Workbook, tab “9. Costs (Optional).”
4. These costs could affect the priority or timeline of the initiatives. Consolidate your thoughts on your Get the Most Out of Your CRM Workbook, tab 8, “Optimization Roadmap.” Note: There is no column specific to costs on tab 8.

This is meant as a high-level roadmap. For formal, ongoing optimization project management, refer to “Build a Better Backlog” (Phase 2 of the Info-Tech blueprint Deliver on Your Digital Product Vision).

Next steps: Manage your technical debt

Use a holistic assessment of the “interest” paid on technical debt to quantify and prioritize risk and enable the business make better decisions.

• Technical debt is an IT risk, which in turn is a category of business risk.
• The business must decide how to manage business risk.
• At the same time, business decision makers may not be aware of technical debt or be able to translate technical challenges into business risk. IT must help the business make decisions around IT risk by describing the risk of technical debt in business terms and by outlining the options available to address risk.
• Measure the ongoing business impact (the “interest” paid on technical debt) to establish the business risk of technical debt. Consider a range of possible impacts including direct costs, lost goodwill, lost flexibility and resilience, and health, safety, and compliance impacts.
• When weighing these impacts, the business may choose to accept the risk of technical debt if the cost of addressing the debt outweighs the benefit. But it’s critically important that the business accepts that risk – not IT.

Manage Your Technical Debt

Take it a step further…

Deliver on Your Digital Product Vision

Phase 2: Build a Better Product Backlog

Build a structure for your backlog that supports your product vision.

Deliver on Your Digital Product Vision

Build a better backlog

An ongoing CRM optimization effort is best facilitated through a continuous Agile process. Use info-Tech’s developed tools to build out your backlog.

The key to a better backlog is a common structure and guiding principles that product owners and product teams can align to.

Info-Tech Insight

Exceptional customer value begins with a clearly defined backlog focused on items that will create the greatest human and business benefits.

A product owner and the product backlog are critical to realize the benefits of Agile development

A product owner is accountable for defining and prioritizing the work that will be of the greatest value to the organization and its customers. The backlog is the key to facilitating this process and accomplishing the most fundamental goals of delivery.

For more information on the role of a product owner, see Build a Better Product Owner.

Highly effective Agile teams spend 28% of their time on product backlog management and roadmapping (Quantitative Software Management, 2015).

1. Manage Stakeholders

• Stakeholders need to be kept up to speed on what the future holds for a product, or at least they should be heard. This task falls to the product owner.

2. Inform and Protect the Team

• The product owner is a servant leader of the team. They need to protect the team from all the noise and give them the time they need to focus on what they do best: develop.

3. Maximize Value to the Product

• Sifting through all of these voices and determining what is valuable, or what is most valuable, falls to the product owner.

A backlog stores and organizes PBIs at various stages of readiness.

Your backlog must give you a holistic understanding of demand for change in the product

A well-formed backlog can be thought of as a DEEP backlog:

Detailed Appropriately: PBIs are broken down and refined as necessary.

Emergent: The backlog grows and evolves over time as PBIs are added and removed.

Estimated: The effort a PBI requires is estimated at each tier.

Prioritized: The PBI’s value and priority are determined at each tier.

	3 - IDEAS Composed of raw, vague, and potentially large ideas that have yet to go through any formal valuation.
	2 - QUALIFIED Researched and qualified PBIs awaiting refinement.
	1 - READY Discrete, refined PBIs that are ready to be placed in your development teams’ sprint plans.

Summary of Accomplishment

Get the Most Out of Your CRM

CRM technology is critical to facilitate an organization’s relationships with customers, service users, employees, and suppliers. CRM implementation should not be a one-and-done exercise. There needs to be an ongoing optimization to enable business processes and optimal organizational results.

Get the Most Out of Your CRM allows organizations to proactively implement continuous assessment and optimization of a customer relationship management system. This includes:

• Alignment and prioritization of key business and technology drivers
• Identification of CRM processes including classification and gap analysis
• Measurement of user satisfaction across key departments
• Improved vendor relations
• Data quality initiatives

This formal CRM optimization initiative will drive business-IT alignment, identify IT automation priorities, and dig deep into continuous process-improvement.

If you would like additional support, have our analysts guide you through other phases as part of an Info-Tech Workshop.

Contact your account representative for more information

workshops@infotech.com
1-866-670-8889

Research Contributors

Ben Dickie
Research Practice Lead
Info-Tech Research Group

Ben Dickie is a Research Practice Lead at Info-Tech Research Group. His areas of expertise include customer experience management, CRM platforms, and digital marketing. He has also led projects pertaining to enterprise collaboration and unified communications.

Scott Bickley
Practice Lead & Principal Research Director
Info-Tech Research Group

Scott Bickley is a Practice Lead & Principal Research Director at Info-Tech Research Group focused on vendor management and contract review. He also has experience in the areas of IT asset management (ITAM), software asset management (SAM), and technology procurement, along with a deep background in operations, engineering, and quality systems management.

Andy Neil
Practice Lead, Applications
Info-Tech Research Group

Andy is Senior Research Director, Data Management and BI, at Info-Tech Research Group. He has over 15 years of experience in managing technical teams, information architecture, data modeling, and enterprise data strategy. He is an expert in enterprise data architecture, data integration, data standards, data strategy, big data, and the development of industry-standard data models.

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