179 E 70th St, New York, NY 10021  |  +1 646-ALPHA-02  |  

© 2018 Technology for Alpha LLC

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What is it?

PPMaaS is a management advisory service for planning and ongoing management of the

technology project portfolios with an unparalleled focus on maximizing the business value

of investments:

  • Designed for business sponsors, portfolio leaders, program managers, product managers and product owners;

  • Arguably, the most innovative PPM solution on the market – deeply rooted in several advanced management theories that were wildly successful and disruptive in their respective industries, such as modern portfolio theory of finance, lean manufacturing and systems engineering;

  • Identifies, optimizes and continuously improves the value, cost, time and risk trade-offs associated with the technology investment prioritization, project scheduling, resource planning, and risk mitigation;

  • Supports both waterfall and agile project portfolios, and it is methodology and tool agnostic.

Project Portfolio Management as a Service - PPMaaS

Why do you need it?

 

Effective IT is a competitive advantage in a digital world. To get the best value for investments, enterprises have long focused on the unit cost efficiency of IT inputs with a little regard to the volume or pace of IT outputs. Consequently, only a portion of today's IT efforts yield their intended outcomes, while the rest is spent on the unintended byproducts such as outputs that are never used (i.e., dormant output), or delivered too late with a little value (i.e., cost of delay).

 

Many IT executives agree that IT investment performance can be improved, and suggest that a 20 to 30 percent improvement in return should be plausible. The challenge is, they say, how to get there.

We recently developed a robust technique to identify and reclaim the value lost on the unintended by-products of technology project portfolios in a repeatable and verifiable way. Our research indicates that most of this value is associated with the dormant output, cost of delay and system friction like a supply and demand imbalance:

  • More than one-fifth of technology outputs frequently become dormant prior to deployment;

  • In a high pace digital economy, cost-of-delay can account for up to 40 percent of the potential business outcomes; and,

  • Predictive modeling of resource capacity and project demand can yield a double-digit productivity gain.

What you see above is a sample outcome of our opportunity analysis of a technology investment portfolio. The top-left diagram illustrates the portfolio frontiers custom calculated for an enterprise -- the best possible performance for a given IT management practice at different organization sizes. Today, most enterprise IT organizations fall on or below the efficient IT frontier (the black line). The effective IT frontier (the blue line) is what good could look like in a digital world.  The gap in-between is too significant to overlook. PPMaaS is specifically designed to elevate enterprise technology portfolios that are already efficient closer to the effective IT frontier, and thereby achieve significantly higher resource productivity and better business outcomes.

How does it work?

 

We provide management support in the following areas:

  • Project investment management  -- go / defer / cancel decisions;

  • Backlog prioritization – portfolio-wide standardized, holistically optimized, continuously updated task level priority rankings;

  • Team sizing – multi-sprint resource planning for development teams with optimized backlog to team-size ratios;

  • IT policy refinement – what-if analysis to assess the portfolio-wide effect of major project execution policy decisions to minimize the IT byproducts, such as the dormant output and cost of delay.

PPMaaS leverages several advanced optimization methodologies such as the cost of delay (Cod), weighted shortest job first (WSJF), advanced dependency management and critical path discovery, continuous improvement for team velocity and productivity.

We utilize our propitiatory stand-alone software tool that runs on a local computer at your company’s site, and periodically receives file-drops from your existing toolsets, e.g., Jira, Rally, Rational, Apptio, Primavera, etc. Your data never leaves your organization.

Next step

  • We will start offering this service to a limited number of clients in Q2F18.

  • Contact us to schedule an introductory phone conversation to explore how PPMaaS can help you advance your goals.

What does it cost?

 

We are unconditionally commitment to maximizing the business value of your investments:

  • You define your success criteria in-terms of KPIs and targets. You set a value to achieving these targets. And yes, we can recommend you KPIs tailored to your needs.

  • When your KPIs hit targets, you pay a monthly gain-share fee commensurate with the value you have set. You owe nothing when your targets are not achieved.

  • You can terminate the service anytime you desire.

 

There is a small start-up fee that covers the assessment of your operating environment and the initial setup of PPMaaS customized to your needs.

 

Note: If we uncover gaps between the current state of your operating environment and the minimum requirements to achieve your desired success criteria, we will recommend options to best address those gaps.