Leading practices in Project Planning
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Edgewater Ranzal Consultant Tom Gargas answered the question, "How can organizations define the optimal mix of strategic initiatives with limited time, funding and resources given the constraints in the process?" At the New England Oracle Applications User Group (NEOAUG) 2013Spring Training Conference Day.
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Leading practices in Project Planning
- 1. New England OAUG: Leading Practices in Project Planning Tom Gargas, Edgewater Ranzal June 10th, 2013
- 2. Agenda • Introductions • Project Financial Planning Overview • Product Demonstration • Leading Practices • Q&A 4
- 3. About Edgewater Ranzal 15+ Years 700+ clients 1000+ projects 2 Focus Services People Methodology Customers Partnership
- 4. About Edgewater-Ranzal ► ► One of The Boston Globe’s Top 100 businesses ► Edgewater Publicly Traded as: EDGW Ranked as one of the 500 fastest-growing stocks on Wall Street Ranzal Planning 2001 Planning Founded in 1996 Essbase Acquired Vertical Pitch 2007 HFM/ FDM Acquired by Edgewater 2004 Data Integration & Warehousing/ CRM/ Web 2.0 Development Build OBI Team 2011 OBIEE Acquired Meridian 2010 HSF Build DRM & HPCM Teams 2009 DRM & HPCM ► ► ► One of the largest Full-Service Oracle/Hyperion EPM and BI practices. Oracle Platinum Partner presented with numerous awards and recognitions by Oracle including multiple Partner of the Year awards. Premier Consulting Services in North America, and a regional European office located in the United Kingdom.
- 5. Our Services Dashboards & Scorecards, Profitability & Cost Mgmt, Financial Analytics & Reporting, Operational Analytics, What-if Analysis, Query & Reporting, Visual Exploration Financial performance, Legal, Segment & Mgmt Reporting, Financial Close HFM Optimization, Performance Lab SOX Compliance Support Consolidation Installation, Upgrades, Migration, System Monitoring, Backup and Recovery, Disaster Recovery, Load Testing, Hardware Sizing Planning Project Management Infrastructure Data Integration, Financial Data Management, Data Warehousing, Master Data Management, ETL Services, Performance Tuning, Automation Planning, Budgeting, Forecasting, Workforce Planning, Capital Planning, Project Planning, Campaign Planning, Strategic Finance Business Intelligence Data Services Project/Program Mgmt, EPM Road Maps, Application Reviews, Business Requirements, Process Change, Documentation Support Services Training Support Services - Project/Program Mgmt, EPM Road Maps, Application Reviews, Business Requirements, Process Change, Documentation Dashboards/Scorecards, Profitability Cost Mgmt, Financial Analytics & Reporting, Operational Analytics, What-if Analysis, Query & Reporting, Visual Exploration 3
- 6. Why financial planning for projects? I could try to execute on all submitted Business Initiatives I would want to ensure alignment with Strategic Objectives I should ensure I have the budget needed to fund the projects
- 7. Planning for my Hyperion Project… Internal Labor & Rates Approved CR’s Steering Committee External Labor, HW, Other
- 8. My “Ahaaaa” Moment • • • • • • Multiple sources of information Numerous tools to utilize Many manual touch-points No tracking or versioning No financial intelligence Limited reporting How can organizations define the optimal mix of strategic initiatives with limited time, funding and resources given the constraints in the process? I clearly needed Hyperion Planning/PFP!!!
- 9. What does Hyperion provide? Are we choosing the right initiatives? Where is the money going? Is this the optimal mix of investments? Should we pull or alter any initiatives? Would we do anything different with more or less budget?
- 11. Oracle EPM Connects Management Common Reporting & Interaction Strategy Management Planning & Forecasting Financial Close Profitability Management Common Integration & Analysis Data Quality and Consistent Dimensions
- 12. Oracle Connects Planning Processes Predictive Modeling & Simulation Strategic Planning Workforce Planning Capital Assets Planning Project Financial Planning Cost Analysis Planning, Budgeting & Forecasting Financial Detail Operational Detail
- 13. Forged from Leading Practices!!! Project Planning Project Financial Planning • Custom Workforce Planning • Custom • Pre-Packaged Module Capital Planning • Custom • Pre-Packaged Module • The Benefits to Implementing Project Financial Planning: Pre-configured with detailed capabilities and process flow to support a rapid deployment. Customizable framework for configuring around a client’s unique needs. Proven Hyperion Planning platform Oracle-supported application. Maximize Value Minimize Risk 13
- 14. Pre-Built PFP Application Artifacts • • • • • • • • • • 11 Task lists (including Tasks) 220 Data forms 76 Menus 216 Business rules 111 Smart Lists 11 Financial Reports Prebuilt & Configurable Dimensionality Validation rules Essbase substitution variables User variables Maximize Value Minimize Risk
- 15. Financial Planning for Projects Steps to managing the full financial performance Model Strategic Initiatives Update & Forecast Propose & Plan Projects Monitor and Report Rank & Fund Approve Assess and Manage Risk
- 16. Financial Planning for Projects Steps to managing the full financial performance Propose & Plan Model Strategic Initiatives • Propose new projects Update & Forecast Propose & Plan Projects – Contract: Plan Revenue/Billing – Capital: only BS & P&L Impact – Indirect: only P&L impact • Plan Expenses Monitor and Report Rank & Fund Approve – – – – Labor Equipment Materials Other Expenses
- 17. Financial Planning for Projects Steps to managing the full financial performance Rank & Fund Model Strategic Initiatives Update & Forecast Propose & Plan Projects Monitor and Report Rank & Fund Approve • Review project proposals • Rank and prioritize projects • Request funding
- 18. Financial Planning for Projects Steps to managing the full financial performance Approve Projects Model Strategic Initiatives Update & Forecast Propose & Plan Projects Monitor and Report Rank & Fund Approve • Review approval status for projects • Submit project(s) for approval
- 19. Financial Planning for Projects Steps to managing the full financial performance Monitor & Report Model Strategic Initiatives Update & Forecast Propose & Plan Projects Monitor and Report Rank & Fund Approve • Monitor & report on financial performance of projects Compare actual vs. plan Compare forecast vs. plan • Monitor & report on approved financial plans
- 20. Financial Planning for Projects Steps to managing the full financial performance Update & Forecast Model Strategic Initiatives Update & Forecast Propose & Plan Projects Monitor and Report Rank & Fund Approve • Update project plans with actual and forecast out remaining months • Compare original plan to forecast
- 21. Financial Planning for Projects Steps to managing the full financial performance Model Strategic Initiatives Model Strategic Initiatives Update & Forecast Propose & Plan Projects • Evaluate financial return on potential key initiatives • Assess and manage risk • Select initiatives with best return Rank & Fund Monitor and Report Rank & Fund Approve • Evaluate funding alternatives based on forecasted project cash flows
- 23. Leading Practices in Project Planning
- 24. Project Financial Planning (PFP) 20+ Customers 1 Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Copyright © 2012, Oracle and/or its affiliates. All rights reserved.
- 25. Client Example 1 – – – – Background: • Leading high-tech company headquartered in Silicon Valley, CA. • Offers customers products and services involving networking, infrastructure, and system optimization. Pain Points: • Engineering and FP&A departments planned on legacy application: – Internally developed solution was reaching end-of-life; costly and risky to maintain • Existing process and tools were cumbersome and tasks were not efficiently executed • No web-based interface. • Lack of automated interfaces to Oracle Projects and iProcurement Ranzal’s Solution: • Built a labor & non-labor project planning application for 150 users: – Plan Capex and Opex for all projects – Forecast Labor plans by Department and Project or Initiative. – Allocate plan H/C and labor expenses by dept. and project based on allocation matrix. • Integrated with Oracle Projects, iProcurement and HR modules Benefits: • Ability to track project spending by project, by multple dimensions & attributes (account, by segment, etc) • Ability to report against that data • Relative ease of input for the engineering team • Ability to forecast spend by project- a HUGE milestone for LCM and product portfolio decisions
- 26. Client Example 1 Oracle Projects Oracle iProcurement • Opex & Capex Actuals • In-service Depreciation • (Actual & Forecast) • Opex Commitments • Capex Commitments 1x load of historical Forecast & Plan Project Planning Dimensions & Labor Data Legacy Planning • HC% Manual Input by users • Forecast of Capex, HC & Labor Costs to Projects Opex & Capex Data Oracle HR Dimension metadata & properties Oracle GL Corporate Planning • Build non-labor expenses by Dept. • HC & Avg. Labor Rate by Dept by month • Input factors for Driver based calculations for TBH • (Actual & Forecast)
- 27. Client Example 2 – Background: • Leading investment management and services company operated by nearly 50,000 employees in 36 countries worldwide and serving more than 100 global markets. • Provides services to institutions and corporations, private clients, and consultants and advisors. • Headquarters in New York, NY – Pain Points: • Major Expenditures division had difficulty with the process of creating proposed capital projects for review and approval. • Difficulty tracking the approved budget compared to the actual costs of the project. • Systems did not interact or integrate effectively. • Great deal of manual effort was required to manage the overall process. – Ranzal’s All-In-One, Closed-Loop Solution: • Built a capital expenditures planning application to create a financial plan • Integrated Planning with external workflow to review and approve projects • Integrated systems for data flow and for comparative reporting of actuals. – Benefits: • Tighter controls of project planning and analysis • Improved productivity toward value-added activities by automating manual efforts. • Active project track built up user and executive confidence of the entire process. • Subsequent application enhancements led to improvements in ERP and Master Data Management systems.
- 28. Client Example 2 AM PPM HR AP T&E • Labor & Capital Asset related dimensions, properties and data. •Actual spend dollar amount. Project Planning GL PC Approved project information Approved project activities, attributes & budget dollar amount Plan project activities, attributes & plan dollar amount Proj. Workflow • Project plans are created and data is entered via webforms. • Planned projects are aggregated • Planned project reports are generated
- 29. Leading Practices in Project Planning Establish a closed loop feedback to address the process disconnect between project management decisions and financial decisions Establish Project Hierarchies and attributes to support workflow, security, reporting, and key business logic. Key examples include Project Owning Organization, Project Type, and Program. Link demand based project plans with supply side workforce and capital plans to ensure resourcing is level based For global implementations, recognize impact of transaction currencies. Not just the typical functional and reporting currencies typically associated with Hyperion implementations. Since project planning is tightly integrated with capital and labor processes, leverage multiple plan types in 1 application to improve integration between them. If project planning is at the activity level, standardize on common activities and keep them as a separate dimension. Try to incorporate ranking and priority into your application to give management visibility into critical and non-critical projects. Minimize alerting capabilities and track the status within the application. This will significantly lessen the number of emails being burst out. Don't forget about "unplanned" or "emergency" projects. These are projects that surface after "planned projects" were approved. Consider a tailored currency conversion methodology to offer greater flexibility and time to delivery. Pre-Built in PFP Configurable in PFP
- 30. Leading Practices in EPM Projects – Be cognizant of internal IT and EPM Strategies: • How does PFP fit into current EPM (planning and reporting) processes for users and support staff? • How is PFP impacted by other strategic initiatives? – Compile and Secure Your Requirements – Develop Your Future State Processes – Map Requirements & Process to PFP • Determine Alignments • Identify Gaps • Mitigation: Do Nothing, Customization, Work-Arounds, Training – Data Integration – Full inventory of data sources and any deficiencies – Big Bang Doesn’t Always Work – seriously consider a phased approach given your understanding of future state requirements and process