The approach is intended to create a simple and standard way to rank the business priority, integration priority, return on investment (ROI), overall readiness to launch, and the risks associated with each program. The focus is on programs that have both a high priority and a high probability of successfully achieving planned objectives.
The following benefit criteria were considered to determine a program's potential value to the business:
Business priority: Within the strategic road map or POR, each group, working with its business partners, established a priority ranking from 1 (highest) to N. Within some functions, priorities were set by domain within the group, resulting in several number 1 priorities.
Integration priority: This priority on a scale of 1 (highest) to 10 reflects the priority of the program as needed to integrate premerger systems.
Return on investment: The ROI calculator was used, and the result translated to a 1 (highest) to 10 scale. If no ROI analysis was completed, a 10 was assigned.
The following risk criteria were considered to determine program risk from multiple dimensions. All factors were rated on a 1 (highest) to 10 scale, with 1 indicating the best chance of achievement or lowest risk:
Magnitude of change risk: This considers the magnitude of change required for a program to achieve its objective. It includes the number of people affected, the degree of potential resistance to change, and the number of organizations affected.
Organization maturity risk: This considers only the impact of the merger on the sponsoring organization. No attempt is made to assess progress in resolving merger issues, and no consideration is given to organizational maturity issues other than the merger challenge.
PMO risk: This addresses the status and quality of the program plan. Industry standard program management risk factors are used with data from the PMO database. Programs with no plan in place and due to start late in the period receive a 10.
Interlock risk: This measures the degree to which a program depends on deliverables (IT or business) from outside the sponsoring business group. This is tracked within the PMO for programs beyond the scoping phase.
Business process risk: Most programs achieve business results by enabling change in specific business processes. This risk factor addresses both the degree of change required
(for example, 10 percent of the process steps or 90 percent) and the complexity of the process itself (for example, supply chain processes are more complex than the hiring process).
Resource risk: This is an assessment of available skills required for a program. It focuses on resource cost, availability of the resource, and skill set required for a program/project.
Table 9.2-1 is an example of an evaluation criteria chart.
Using the data from the summary scoring worksheet, the programs are plotted in the appropriate quadrant. Figure 9.2-3 provides a comparative view of all programs or a particular group's programs based on their business value and risk.
We have developed a set of forty-two standard "health check" criteria to enable us to instantly evaluate the progress of any particular project that is underway and to understand if it is in trouble or headed for success. We look at risks, issues, critical path analysis, resource analysis, sponsorship, alignment with strategy, earned value metrics, dependencies, and many other factors with an impact on the triple constraints of project management: time, cost, and scope. We treat the project status information as a corporate asset.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.