Xavier University: IT Portfolio Management and the Project Request Process
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1 A guideline and process document to establish the governance framework for technology related project requests laying the groundwork for strategic portfolio management Xavier University: IT Portfolio Management and the Project Request Process IT Planning and Project Management Office
2 Contents 1 Purpose & Goals Definition of a Project Intake Process Business Case Requirements Business Case Assessment/Scoring Approved/Denied/Needs More Information Resource Allocation and Planning Project Approvals (See Figure 1 for workflow) Communication Plan Implementation
3 1 Purpose & Goals This document summarizes the methodologies, processes, and decision points related to the IT project request process and IT Portfolio Management at Xavier University. This document is intended to act as an end-to-end guide to performing portfolio management activities, and as an essential component of executing IT efforts in support of the Xavier University institutional strategy. More specifically, the processes laid out in this document are intended to drive the following Enterprise Objectives: Portfolio Results Clarify the definition for what constitutes a project Better align spending with department and overall strategic goals Size the portfolio to better match resource constraints for both IT and the business Ensure that key stakeholders understand the value in building a more formalized portfolio management approach Business Case Process Establish value assessments for both hard and soft benefits More fully capture project costs, including internal labor costs Better identify dependencies and risks, including specific resource requirements by name Establish success metrics for on time, on budget, and ultimate value capture Approvals Process Define an explicit process for project approvals and rejections Describe the stage gates that will be included in this process Define both IT and business roles in the approvals process Leverage an analytical framework that s Finance-driven 2 Definition of a Project All IT requests will be expected to be follow the IT Project Request process described in this document. Small and Large project requests will go through a formal review process governed by the Xavier Technology Committee (XTC). Change Requests will be reviewed by the IT Leadership Team and a quarterly status report will be submitted to the XTC for their review and comment. 1. IT Change Request: A change request involves a small system update that generally consists of one or more of the following: Date or term changes, minor changes to existing system integrations, regulatory or compliance updates, manual job runs 2. Campus Technology Project Request: a. Small: A midsize project request which generally includes hardware, software, and/or consulting dollars, one or more departments and several technology resources i. Criteria consists of one or more of the following: 1. Approx hours of effort 2. Average financial investment 3. Cross-departmental initiative 2
4 b. Large: A University-wide project initiative which generally includes hardware, software, and/or consulting dollars, many cross-functional departments, and several technology and subject-matter resource. i. Criteria consists of one or more of the following: 1. Greater than 150 hours of effort 2. Large financial investment 3. University-wide engagement 3 Intake Process Project requests will be entered via a new submission form located within the project and ticketing system, TeamDynamix. (Xavier credentials can be used to access the TeamDynamix system.) The form will contain the required inputs for developing a Business Case. TeamDynamix Log in Instructions: VPN Access required if outside of the Xavier network 1. Go to 2. Log in using your Xavier credentials 3. Go to Requests Tab (top) 4. Click on Service Catalog (left) 5. Click on I.T. Project Request Forms 6. Select the appropriate request form to enter your Change or Business Case 4 Business Case Requirements Traditional Business Cases are compiled in a template designed in Microsoft Word or a similar word processing application. The new project request form (TeamDynamix) has been developed to incorporate high-level and detailed business criteria that automatically enters your business requirements and proposal into the project request portfolio module. These guidelines govern the preparation of business cases and are intended to ease the initial preparation. Business case Change Request Small Large Comments Project Overview & Definition Summary & Background Define the problem being addresses Project categorization Alternative Solutions What is the business impact if the request is not approved? Are there alternatives to solving the problem? 3
5 Business case Change Request Small Large Comments Success Criteria How do we know we solved the problem? If approved, list measurements that would assume the project was successfully completed. Conclusion and Recommendations Formally outline how you think the organization should address the problem. Strategic Assessment* *Answers to the Strategic Alignment, Risks, and Score Card make up the 100-point scoring system Alignment to Strategic or Operational Objectives How will each Strategic Objective be supported? What key metrics will be used? Business Case requires greater depth (i.e. more than a paragraph) Risk Assessment What are the risks of DOING the project? Score Card A more granular needs assessment for alignment and urgency Technology Assessment* *To be filled out with your PPMO Liaison Timelines High-level timeline expectations Dependencies & Risks Fast Track requires less depth (i.e. bullet points) Resourcing Include both IT and Business resources required to complete the project Cost-Benefit Analysis* *Template provided and developed outside of the TeamDynamix application. Must be attached to project request at time of submission. Tangible Benefits Business Case has emphasis on specific ROI Smaller projects should articulate benefits within a broad category and range 4
6 Business case Change Request Small Large Comments Intangible Benefits Capital Costs Startup implementation costs Labor Costs Other Costs Ongoing operations & maintenance costs Include normalized / loaded cost for both internal labor and external contractors ROI & Payback 5 Business Case Assessment/Scoring This scoring system provides an objective / quantitative process for comparing the relative merits of business cases. 100-point Project Request Scorecard Weighted Goal = 40 potential points Achieve Global Excellence Business Process Improvement Enhance educational opportunity Expand resources and improve effectiveness Improve Student Success Integration of systems and resources Provide civic leadership through local and global partnerships N/A Criteria = 30 potential points This project helps improve Student Retention % This project supports compliance/audit-related requirements % This project has security-related objectives % This project is related to critical software/hardware updates % This project will increase revenue for the university % This project will lead to significant cost reduction for the institution % This project will help increase enrollment % This project helps improve Customer Satisfaction % This project will Increase business process efficiencies % This project will provide enhanced functionality not currently available within the institution % This project helps give the institution a competitive advantage 50.00% This project is related to environmental sustainability 50.00% 5
7 Risk = 30 (Based on a possible 30 points if there are zero risks of doing) Difficult Learning Curves Impact On Other Projects Increased Workflow Complexity Lack of cohesive stakeholder buy-in/support Resource Bottlenecks Unknown Complexities N/A Vendor Dependability 6 Approved/Denied/Needs More Information When a project is approved, denied, or needs more information the PPMO will inform the project owner or sponsor. This will be done via no later than the end of business hours on the day the decision is made. If the business case has been approved, but with some conditions, those conditions must be described in the informing the project owner or sponsor of the approval. In addition, approvals, project backlogs, and ongoing status will be posted on the PPMO Nexus site. 7 Resource Allocation and Planning a. Capacity-Based Allocation It is recommended that a Capacity-Based Allocation model, where the organization approves only those operational projects that can be realistically delivered, be delivered in the near term. To make this model succeed: Reserve sufficient capacity for strategic initiatives and predictable technical support issues Approve operational projects based on remaining resource capacity for short, fixedlength periods (e.g. quarterly) Discontinue the practice of managing a backlog of approved-but-undeliverable IT projects The recommendations in this document are collectively defined as a practical approach to overcoming IT s supply-demand mismatch with a Capacity-Based Allocation model. b. IT Planning At present, Xavier University s resource budget for strategic IT investments sits with the individual requesting division or department. In addition, large capital requests are often initiated through the University Resource and Planning Committee (UPRC) which will ultimately need XTC approval for IT resource allocation purposes. Operational IT projects are funded through the IT Student Technology Fee. Some unintended consequences include: 6
8 Potential for operational projects to interfere with strategic projects: Operational projects are budgeted separately and could run the risk of delaying strategic projects. This is particularly the case when new operational projects are incorporated into an already full project calendar. Potential over-commitment of capital and labor resources: Having both strategic and operational projects vie for the same resource pools makes it difficult to monitor and enforce cap limits. By separating the budgets and creating a more explicit understanding of desired levels of investment for strategic and operational projects respectively, the Xavier can more easily enforce its underlying objectives. All things considered it is recommended that the overall University IT investment strategy should be considered across four primary categories: Category Description Range Rationale Strategic Initiatives For large IT & business initiatives 60-80% Strategic initiatives should represent the majority of IT investment Business Operations For business initiatives 5-10% Create sufficient reserve to expedite operational projects IT Operations For IT initiatives 5-10% Separate the approvals processes for Business & IT initiatives Management Reserve 10-20% Maintain a contingency for overruns and strategic initiatives that may occur over the course of the year 8 Project Approvals (See Figure 1 for workflow) c. Environment: At present, the project approvals process is not explicit to all stakeholders. Some of the challenges include: Projects that circumvent the process and get worked on without common understanding Definition of a project when does something cross over from support to becoming an actual project Inconsistent use of business cases and lack of a common business case template Unclear criteria for how business cases will be assessed Uncertainty surrounding approvals and activations, many of which linger for months or even years before reaching kickoff 7
9 Uncertainty surrounding backlogged business cases, and what the current status is To improve this process going forward, it is recommended that the Xavier adopt a three-part approval process for all strategic and business operational initiatives. d. Approval Logistics The existing process for approving and monitoring strategic projects is transforming to a steering committee model based on the newly formed Xavier Technology Committee (XTC). The committee will meet monthly within an annual budget cycle 1. Some of the key dates and milestones in this process include: 1. April: All Strategic and Business Operational Business Cases required for upcoming Fiscal Year 2. May: Strategic Business Case scoring and assessments are completed 3. June: Project budgets and IT resources locked down for upcoming Fiscal It is recommended that the XTC follow a more formalized project approval process that combines a formalized business case with explicit allocation of financial and human resources. A separate cost-benefit analysis template will be provided to the requestor. The analysis report should be attached to the project request prior to final submission and subsequent XTC approval. Strategic Projects Approval Process Activity Responsibility Key Tasks 1. Business case approval XTC Review and score each Business Case according to pre-set Assessment Criteria 2. Financial approval UPRC and/or Division VP Confirm availability for proposed initiative Validation of the financial model employed in the business case 3. Resourcing allocation PPMO Ensure availability of necessary resources within both the Business as well as IT The flow of business cases increases involvement from the Planning and Project Management Office (for confirmation of resource availability) and a Finance representative (for validation of the financial model and confirmation of budget availability). It is also recommended that a formalized communication process be established for the delivery of Approve/Decline decisions. 1 To be introduced in FY16 8
10 9 Communication Plan Message Why? What? When? We are moving to a quarterly planning process for business operational and strategic projects. The backlog of project requests has outpaced our capacity. There is a lack of clarity as to when and why projects get started. As our backlog increases, we risk losing credibility with the company. A combined effort to look at intake with staffing simultaneously will yield realistic delivery estimates and reduced date reforecasting. We will schedule a prioritization meeting for March 2014 to prioritize projects for next quarter. Please submit a project request via TeamDynamix for each of your top one to three ITrelated projects that you d like to have reviewed during this meeting. We ll need to have your request submitted one week prior to the prioritization meeting in order for them to be considered that way the team can prepare in advance and ask for additional information where appropriate. XTC January 2014 Cabinet February 2014 Information Technologies Division February 2014 Key stakeholders (Director s, Deans, Associate Deans, Business Managers) February Implementation IT Project Intake Process and Governance Review I. Phase I: Communicate and Kickoff Winter 2014 a. Introduce Project Request Intake Process and XTC Approvals i. Showcase current IT investment mix ii. Define target investment mix iii. Define Project iv. Define process v. Instructions for TeamDynamix b. Reporting Site for status and information c. Formalize IT planning meetings for resource allocation and communication d. Standardize deck for business case pitching 9
11 e. Standardize cost benefit analysis template II. Phase II: Portfolio Monitoring Summer 2014 a. Define and build KPI s for portfolio management and tracking III. Phase III: Enterprise Portfolio Management Summer 2015 a. Align intake process with the fiscal year and university budget cycle 10
12 Figure 1 11
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