Deltek Insight 2011: Deltek Active Risk Manager (ARM)

EPM-104: Deltek Active Risk Manager (ARM)Solution Deck for PM

Presented by:

Kim Koster, Director or Product Marketing-EPM

April 21, 2011

April 18, 20232

Risk

Finding Success in This Complex Environment

Risk

Project Manager

ProjectTeam

Business Development

Quality Manager

Meet Profit Goals

Win More Business

Deliver On-Time and

On-Budget

Deliver a Quality Product

©2011 Deltek, Inc. All Rights Reserved

0%

20%

40%

60%

80%

100%

120%

January February March April May June July August September October November December January

Per

cen

t Co

mp

lete

Project Duration

Forecast Curve

Plan

Forecast

Today’s Projects..

Source: Construction Industry Institute

No AdvancedWarning

Late Finish

Impact Profitability

April 18, 20233 ©2011 Deltek, Inc. All Rights Reserved

April 18, 20234

ProjectManager

Today’s Top ChallengesVP of Programs

Can’t get information I need!

We are in Constant Crisis Mode!

Our data is wrong!Wasting time manually presenting information!

We can’t execute! I manage by instinct!


April 18, 20235

Real LifePrograms canceled & systemic problems


On Aug. 25, 2010, the U.S. Army announced cancellation of the original solicitation for its Ground Combat Vehicle (GCV) program. Defense media network

“Poised at the beginning of a new era in satellite acquisition, the Defense Department continues to see its space programs dogged by significant and persistent cost overruns and sometimes declining capabilities, according to a new Government Accountability Office report”

April 18, 20236

A Crisis Causes Action?Managing when the sky is falling


Major Program Problem

Margin/Profit Impact

Customer

Requirement

Most corporate initiatives start because… • The customer requires it• Margins are gone • We have really messed up!

April 18, 20237

Why Manage Risk Before a Crisis?


Customer ResultsRisk & PM Studies• 50% gain in productivity and quality

improvements with risk management

• 53% of IT projects are challenged

• Over Budget

• Over Schedule

• 84% are over budget

• 31% are cancelled

• Annual 10% improvement on delivery of projects

• Avoid Unplanned Cost, Schedule and Technical Surprises

• Improved Business Performance

• 10% reduction in re-occurring losses

• Saving of 6-10% per year on Insurance premiums

Proven Risk Management Improves Performance, Reduces Liability and Saves Money

Unanswered Questions


Filt

erin

g P

roce

ssP

roce

ss

Ow

ners

Prim

ary

Que

stio

ns a

nd

Con

cern

sProject Manager

Project Manager

Is my project on track?

• Execution to meet delivery expectations

• Meeting profit expectations

• R&O data to make timely decisions

VP of Programs

VP of Programs

How is my portfolio performing?

• Meeting corporate expectations

• Delighting the customer

• Accurate Plans


• Process Consistency

CFO

How do I accurately forecast sales and profit?

CFO

• Making Money

• Predictability for stockholders

• Compliance


Customer

Project Team

Internal Executives

Inefficient Processes


Deliveries Are Impacted

CustomerProject Reports

Subs

CAM

PMRisk Manager Engineerin

g

Scheduler

PCA

CFORisk Officer

Update Schedule

Update Revenue

Team Meeting

Risk Identified

Risk Approved

Update EAC

StockholdersVP of

Programs

April 18, 202310

Ideal Risk Management Solution


Easy Web Delivery

Easy Data Entry

Standardized Reporting, Analysis

& Metrics

One System for all Risks

Simplifies & Enables

Compliance

Portfolio View of Risk

Risk Management Solution

April 18, 202311

Ideal Risk Management Solution


Easy Web Delivery

Easy Data Entry

Standardized Reporting, Analysis

& Metrics

One System for all Risks

Simplifies & Enables

Compliance

Portfolio View of Risk

Deltek Active Risk Manager

April 18, 202312

What is Your Spreadsheet Costing You?Customers Save Money


80% reduction in cost of mitigation by eliminating duplication

75% reduction in time spent identifying and assessing risk

450 man hours per month in reporting, escalating risks, & understanding opportunities

75% saving ($800k) in costs by using a single integrated risk

management system

April 18, 202313

Deltek Active Risk ManagerClients Across the Globe


http://upload.wikimedia.org/wikipedia/en/f/fb/Eurocopter_logo.svg

http://www.tennet.nl/

http://www.amlin.com/aml/

http://en.wikipedia.org/wiki/Image:Morleyfund.jpg

14

US Air Force

“..to institutionalize rigorous risk management through one common and consistent risk process delivered by one software package so as to enable on time, at budget, and to technical performance delivery of programs and projects that equip the war fighter to protect the national interests of the USA.

“We see ARM as a ‘game changer’ for the Air Force”

Blaise DuranteDeputy Assistant Secretary for Acquisition

©2011 Deltek, Inc. All Rights ReservedApril 18, 2023

April 18, 202315

The Primary Project Risk Elements

1

2

3

4

Schedule Risk

Cost Risk

Technical Risk

Supplier Risk


April 18, 202316

Integrated Risk Management

ScheduleRisks

TechnicalRisks

CostRisks

SupplierRisks

Risks Opportunities Issues

Project RiskManagement

Qualitative Quantitative

Value driving mitigations


April 18, 202317

Capturing Institutional Knowledge Continuous Lifecycle ERM


n Identification

n Assessment

n Mitigation

n Reviewing

n ReportingAudit Trail

Knowledge Base

CommunicateManage

Feedback Loop

Which Level Are You?


April 18, 202319

Managing Risk & Opportunity from the top down…


Global PerspectiveManaging Risk & Opportunity


Multiple Definable Structures

Color Coded Risk Assessment

April 18, 202321

Understand the Risk & OpportunityManage by Exception

(-)(+)


April 18, 202322

Scoring a Risk for All RisksConfigurable scoring of impact or cost

Definable Risk Types

Scoring


April 18, 202323

Standard Risk TemplatesConsistency across the organization

Risk template create consistency


April 18, 202324

Risk by the NumbersQualitative and quantitative risk scoring

Develop Quantitative Analysis


April 18, 202325

See the Risk Burn DownYou know where you are…

Manage the process to mitigate the risk


April 18, 202326

Risk Adjusted ScheduleSee the impact on the project plan


At 50% confidence our schedule will be 2 ½ months late. Is this acceptable?

However approved and successful mitigation plans will actually deliver the project 1 day early – why? The risk register includes an opportunity to reduce delivery time.

How are we impacting performance?

April 18, 202327

Immediate Notification No more scrambling for information


Delivering The Most Complete Solution For Program Controls

Customer

Corporate Services

Program Controls

Planning & Scheduling

Earned Value Management

Risk Managem

ent

FinanceInformation Technology

Human Resources

28Complete, Compliant, Connected


Deltek EPM Ecosystem

29

ProP

ricer

Exc

el

Microsoft

Project & P6

MSP, P6 ERP, MRP

SAP, Oracle, &Costpoint

MS

P, MO

SS

& P

6

ER

P

PM Compass

Planning& Scheduling

(Open Plan)

ResourceManagement

(Open Plan)

CostEstimating

(Partner Solution)

CostManagement

(Cobra)

Earned ValueManagement

(Cobra or MPM & wInsight)

RiskManagement

(Active Risk Manager)

Team Member Apps

Power User Apps

Integrations


April 18, 202330

Questions


www.twitter.com/deltek

www.facebook.com/deltekinc

www.linkedin.com/company/163414

www.youtube.com/user/deltekinc

http://www.twitter.com/deltek

http://www.facebook.com/deltekinc

http://www.linkedin.com/company/163414

http://www.youtube.com/user/deltekinc

http://www.facebook.com/deltekinc

http://www.linkedin.com/company/163414

http://www.twitter.com/deltek






Deltek Insight 2011: Deltek Active Risk Manager (ARM)

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