CA PPM: Aligning Projects With Strategy

CA PPMAligning Projects With Strategy

Russell Nelms

Agile Management

Toyota Financial Services

Head of Enterprise PMO

Session Number

@NelmsRussell

#CAWorld

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Business Background

In today’s climate of cost cutting and efficiency targets, delivering the change portfolio more effectively isa key objective for Toyota Finance Australia’s Enterprise PMO. This means delivering the right mix ofprojects, consistently and well, faster and at less cost.

In order to achieve stretching goals, Toyota Finance Australia’s Executive and Management Teams facedifficult decisions every day and the need for better quality information to drive those decisions isparamount. The need to deliver the Business Strategy whilst ensuring the Project Portfolio supports andcontributes to the bottom-line value of the organization.

In conjunction with business leaders, Toyota Finance Australia’s Enterprise PMO ensures investments inProject Portfolio deliver the best possible outcomes and the organization delivers to the (1) AnnualStrategy (Hoshin) and (2) Mid-Term Business Plan (5 Year Plan).


Toyota Financial ServicesCovers more than 30 Countries and Regions

The first Toyota Financial Services operation commenced in Sydney, Australia, in 1982 asToyota Finance Australia Limited and was soon followed by operations in the USA, Canada,Europe, Asia and Oceania.

Toyota Financial Services has constructed a global network that covers approximately 90% ofthe markets in which Toyota sells its vehicles with approximately 5.4 million customers.

Toyota Financial Services offers its customers financial services that include auto salesfinancing, credit cards, retail sales of corporate bonds and investment trusts, and insurance.

Ranked #8 Best Global Brand for 2015Source: Interbrand


Business Opportunity – Clarity PPMToyota Business Practice Approach

Current SituationContinuation of current process and as-is state, includes: Continual use of multiple, disjointed processes and tools Resource and project contention Inability to make fact based business decisions on strategic investments No central visibility on projects, use disparate systems and inefficient processes to track report progress Plateauing of maturity within organization Selected Portfolio decisions don’t align with business strategy Running projects that are low priority initiatives Project overruns will continue and increase Some data will be unavailable and/or static

Ideal SituationTo strengthen our ability to delivery on our Project Investment Portfolio with a consistent set of policies,standards and an integrated environment to record, measure and track the investment portfolio. Theobjectives of implementing a Project Portfolio Management approach are to allow Toyota Finance Australiato be focused, fast, and agile.

Achieving these high level goals necessitates a variety of inter-related steps: Alignment. Synergies between the Business Unit Strategy and Corporate Strategy Investment Focus. Viewing expenditures (human, asset, capital) as investments – a process to track

performance. Governance. Process for making investment decisions. Cost Control. Understanding the main drivers of project costs for containment purposes. Efficiency. Use of resources (human and material) efficiently, leveraging wherever possible.

Additionally, the ability to standardise workflows and automate business processes so that we can dothe right work faster… the first time.

Gap The need to individually track project activities that will

rollup critical information to a portfolio level resulting intransparent reporting of project status – Strategy andProject Execution.

Misalignment of projects to our Corporate Hoshin drivers –Strategic Alignment and Prioritisation (MTBP).

Poor resource allocation, tracking, reporting andidentification of contention points (over utilization) –Resource Management.

Requiring more accurate, Transparent, Consistent and Real-time Financial Dashboard & Reporting – Cost amd Financialmanagement.


Bronze Milestone – Completion of key Projectdeliverables.

Silver Milestone – Completion of a significant projectaspect enabling the remainder of the project.

Gold Milestone – Delivery of a major businesscapability and linked to Strategic Goal.

We have strong Group Strategy, Portfolio Governanceand Project Execution Capability

The status of all projects measured consistently acrossthe group, based on 7 reporting keys

Projects are structured as a set of end-to-end activities Projects are then divided into stand-alone components

or Work Packages There are five key project approval documents to

support all project approvals

Strong Frameworks in place…Strategy, Portfolio Governance and Project Execution Capability


For Toyota Finance Australia’s Strategy to be successfulThe Project Portfolio must be successful

Corporate StrategyStrategic/Executive Decision Making

Organizational GovernanceManagement, Standards, Methods and Quality Controls

Predictable ExecutionProject Management Delivery

Strategy Management Annual Strategy (Hoshin) Mid-Term Business Plan (5 Year Plan)

Portfolio ManagementAre we doing the right things?How are we doing?

Project Management Business Outcomes Business Benefits

ProcessesHow do we do it?

Let’s do it theToyota way!

CapacityCan we do it?

Can we adopt it?


Project Leader KPIsAligning Project Outcomes to Strategy

Costs

TimeScope

Month 1 Month 2 Month 3

Project Name Project Category Cost Time Scope Rating KPI RAG Project Sponsor Project ManagerTotal Budget

Estimate

Approved

Budget

Spend To Date

(SAP)Phase

Go Live

Date

Contract Acquisition Foundation (F) 2 2 3 7 1 ROSSELL, Don SAMUELS, Todd $27,557,235 $5,598,824 $5,189,274 Planning TBC

Credit Decisioning Phase 2 Opportunistic (O) 5 5 4 13 4 LOONEY, Adrian CHANNON, Michael $2,973,730 $398,000 $150,229 Planning 05/12/2015

Dealer House Account Strategy (S) 4 5 5 14 5 ROSSELL, Don HORSPOOL, Chris $1,074,676 $1,087,911 $894,691 Close 21/02/2015

Project Insurance Strategy (S) 3 3 4 11 3 ROSSELL, Don HORSPOOL, Chris $2,638,488 $2,638,488 $2,404,115 Build 17/05/2015

Driver Direct Strategy (S) 5 5 5 15 5 STANISTREET, Ed SPIRIT, Ian $185,388 $207,470 $45,387 Build 31/03/2015

Project Equip Foundation (F) 4 3 4 11 3 STANISTREET, Ed SPIRIT, Ian $3,621,025 $3,736,908 $2,826,427 Design 18/04/2015

Harvest Integrate Strategy (S) 4 2 3 9 2 STANISTREET, Ed HOLDOM, Luke $906,112 $990,792 $747,979 Design 19/06/2015

Contact Management System Strategy (S) 5 5 5 15 5 STANISTREET, Ed HOLDOM, Luke TBC $118,800 $4,677 Initiate TBC

Information Security FY15 Keep the lights on (K) 5 4 5 14 5 RUSCIO, Frank MUIR, Mackenzie $315,000 $315,000 $148,993 Implement 20/03/2015

Clarity PPM Tool Opportunistic (O) 5 5 5 15 5 NELMS, Russell KARANTZAS, George $380,154 $12,480 $0 Initiate 01/07/2015

Business Objects Keep the lights on (K) 5 5 5 15 5 TAN WOOI, Tee BAJAJ, Jasdip $186,000 $186,000 $0 Initiate TBC

Miles Upgrade Keep the lights on (K) 5 5 5 15 5 TAN WOOI, Tee SPIRIT, Ian $45,000 $45,000 $0 Initiate TBC

Telecomm Transition Keep the lights on (K) 5 4 5 14 5 RUSCIO, Frank O'HALLORAN, Matt $1,858,093 $1,894,700 $1,858,093 Implement 30/01/2015

SMF FPA Ideal Strategy (S) 5 5 5 15 5 CORNWELL, George HORSPOOL, Chris $6,740 $6,740 $0 Initiate TBC

NextGen TFA Online Strategy (S) 5 5 5 15 5 CORNWELL, George KEPPIE, Mark $30,000 $33,480 $0 Initiate TBC

Spring (Access End of Term) Foundation (F) 3 2 5 10 3 RAMSAY, Mark EBRAHIMI, Noor $740,770 $579,454 $167,954 Design TBC

ASIC Compliance OTC Global Trade Compliance (C) 5 5 5 15 5 CHESSARI, Daniel TZOUMACAS, Tony $439,331 $209,811 $0 Initiate 01/07/2015

SAP Data Structures Keep the lights on (K) 5 4 5 14 5 CHESSARI, Daniel CHANNON, Michael $1,550,000 $357,600 $130,004 Design TBC

Project Lighthouse Opportunistic (O) 5 5 5 15 5 HALABUT, Laurence KEPPIE, Mark $422,828 $503,988 $194,559 Testing 09/04/2015

InfraRisk Project Opportunistic (O) 5 5 5 15 5 HOWELL, Gary HOLDOM, Luke $119,535 $142,724 $6,235 Planning 15/05/2015

Purchasing Automation Strategy (S) 5 4 5 14 5 HOWELL, Gary CHANNON, Michael $37,500 $28,000 $20,500 Initiate TBC

Collections Foundation (F) 4 4 3 11 3 HOWELL, Gary KARANTZAS, George $5,489,878 $5,068,430 $5,221,593 Close 17/11/2014

DMR Foundation (F) 5 4 4 14 5 RUSCIO, Frank FIAZ, Mahdy $1,731,343 $1,731,343 $1,192,113 Close 15/12/2014

SMF FPA Strategy (S) 4 5 5 14 5 ROSSELL, Don HORSPOOL, Chris $70,000 $70,000 $95,850 Close 17/12/2014

Novated Digital Strategy (S) 5 4 5 14 5 BOXSELL, Phil SPIRIT, Ian $553,717 $581,460 $523,544 Close 14/10/2014

Miles SQL Upgrade Keep the lights on (K) 5 5 5 15 5 RUSCIO, Frank BAJAJ, Jasdip $310,723 $340,000 $292,723 Close 21/11/2014

Leads Tune Optimisation Opportunistic (O) 4 4 4 12 4 RAMSAY, Mark PHILLIPS, John $152,332 $153,667 $138,090 Close 16/10/2014

NAB-NBFI Opportunistic (O) 5 5 5 15 5 ROBINSON, David CHANNON, Michael $378,111 $377,220 $365,216 Close 18/10/2014

Arrow - Credit Decisioning Foundation (F) 5 5 5 15 5 LOONEY, Adrian CHANNON, Michael $2,020,255 $2,887,271 $1,903,429 Close 25/08/2014

Privacy Act Compliance (C) 4 4 4 12 4 CHESSARI, Daniel BURMAN, Stephen $2,156,502 $2,181,066 $2,106,388 Close 24/09/2014

CCP3 Opportunistic 4 5 5 14 5 CORNWELL, George HOLDOM, LUKE $472,674 $472,674 $444,949 Close 17/05/2014

LMS Opportunistic 5 5 5 15 5 ROSSELL, Don SEYMOUR, ARNDRIA $2,169,272 $2,169,272 $2,169,272 Close 05/05/2014

Each project is scored out of 4 against the three success criteria (Time, Cost, Scope) giving a total score out of 12

At a Project level, project success is rated using the scoring belowAt a Portfolio level the Target is 85% of projects achieve a score of >7.5

1 2 3 4

Scoring <3.75 3.75 – 7.4 7.5 – 11.24 >11.25


“Keep it simple”, “keep it simple”, “keep it simple”.

Configuration, not customisation

Move to industry best practice

Optimize business processes where possible

Eliminate complexity wherever possible

Tightly aligned with Strategy Framework, Governance

Framework and Project Execution Framework

Partnering with excellence

Simple, Intuitive, Precise

Our Guiding Principles…Balancing the requirements around needs versus wants

The implementation approach was to use the experience of internal resources and utilize

CA Technologies proven experience to deliver the core Project Portfolio Management

solution. Requirements to be simple versus complex with a focus on needs versus wants.

The emergent Enterprise PMO model.


Clarity PPM LaunchA new way of leveraging our Business Strategy…


Clarity PPM Plan Do Check ActKey Take Away…

Iterative and Collaborative Approach

1.Clear and early direction set by Sponsor to

deliver a solution with minimal customization.

2.Collaborative workshops with CA

Technologies and Toyota Finance key impacted

stakeholders to quickly confirm requirements

and agree high-level solution design with

vendor.

3.CA Technologies able to deliver solution in

short and compressed timeframes by taking

base system and applying 'best practice'

configuration.

4.Iterative design, deliver, review and feedback

process between Sponsor, Project Team,

Business Strategist and CA Technologies

enabled delivery of final build solution within 3

months.

5.Project Team focus on delivering the critical

scope items.

6.Change Management Plan obtained early

buy-in from key impacted stakeholders.

Best Practice ApproachTook the business processes and solution andworked with CA Technologies to configure ‘bestpractice’ based on 1,000+ implementations in ASK50 companies and Fortune 500 companies.

Change Management ApproachInteractive, fun and engaging approach to bringALL key stakeholders along on the journey…starting at the beginning of the project andramping up towards the implementation andcontinued through deployment to ensure bothbuy-in and success.

BAU TransitionTransition into BAU is basic principle for a projectbut is often overlooked… BAU Transition planfocused heavily on what is required to supportBusiness Strategy, Governance and ProjectExecution post implementation.


Q & A


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CA PPM: Aligning Projects With Strategy

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