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Past, Present, and Future of Enterprise Project

Portfolio Management
October 2013
Dick Faris – Senior Vice President
Oracle Primavera
 Raiders of the Lost Ark (of Scheduling)

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 Drag and Drop
Gantt Charts

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I hate constraints

…or at least the misuse

of them

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 History of Scheduling Software

1957 1960’s 1970’s 1980’s 1990’s 2000 2013

MAINFRAMES MINI-COMPUTERS PC CLIENT/SERVER Web Mobile

CPM & PERT Mainframes Mini- Personal Windows Enterprise Smart Phones
DuPont Punch cards Computers Computers Networks Portfolios Tablets
& US Navy Interactive DOS Multi_user Dashboards Business
Terminals Dot matrixx Client/Server Intelligence
Graphics printers Databases
Plotters

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 Evolution of Scheduling

Fixed beginning / No specific

end points beginning / end

Professional Part-time
schedulers schedulers

10 projects, 1000 projects,

50,000 tasks 1,000,000 tasks

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 Evolution of Scheduling

Isolated All projects

projects in organization

Project narrowly Project more

defined broadly defined

Task centric Resource centric

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 Evolution of Scheduling

Every Project Standardized project

Structured differently and resource
structures

Outside the Enterprise Project

organization’s Management
management structure

One time Save and re-use

projects best practices

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 Evolution of Scheduling

Interchangeable Individual resources

resources with roles, skills,
and proficiencies

Applications: Role-based
One size fits all applications

Static reports Real-time reporting

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 Evolution of Scheduling

Local, narrow Global, multi-

focus currency focus

Access to data by Widespread

experts access to data

Project cost and Project value and

Time-to-finish Time-to-market

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Brief History of Scheduling

• Mainframes, minis, pcs, networks, client/server, web

• Centralized to decentralized and back

• Primavera founded in 1983

• The Democratization of scheduling

• Ease of use is deceptive if you don't know anything about

scheduling

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Scheduling Abuses
• Graphic tools
Drag and drop interfaces make it easy to create schedules
….but is it a schedule?

• No relationships
A schedule without logic is not a schedule at all

• Too many constraints

Constraints are useful and necessary
But should be used sparingly
…..NOT to force a date

• Multiple calendars - calendar float

Missing link in the critical path
Lack of understanding of float

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Scheduling Abuses

• SS ladders

• Bad duration and scope estimates

• Improper and over use of Lags

• Not enough training or knowledge

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 Innovation

“Some men see things as they are and ask why. Others dream
things that never were and ask why not.” George Bernard Shaw
(covered by Robert Kennedy)

“Necessity … is the mother of invention.” Plato, The Republic, 347 B.C.

“If you always do what you always did, you will always get what
you always got.” Albert Einstein

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 Innovation

It is not just a good idea

Innovation results from the successful execution of

a new idea

….and often requires stopping the execution of

previous innovations

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 Innovation

Organizations must innovate to grow, be

efficient, and be competitive.

It is not enough to do things better, you must

find new things and do them well

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 Innovation

Every organization strives for Innovation

… the challenge is creating a culture of

Innovation and managing it.

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 Innovation

It means being willing to

make mistakes,
….. but detecting, admitting,
and correcting those
mistakes quickly.

"Success is 99% failure." Sochiro Honda – Founder of Honda

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 Innovation

Continuous innovation means once you are

getting really good at executing
something….

…. it is time to try something new

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 Why Innovations Fail

Don’t solve an important problem

Take too long

Underfunded or poorly implemented

Too much effort for the benefit received

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 Innovation

The Innovator's Dilemma: When

New Technologies Cause Great
Firms to Fail

Clayton M. Christensen
Harvard Business School Press (C) 1997

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 The Innovator's Dilemma

A truly innovative business Idea has jump started

many successful companies.
But those same successful companies often fail to see or
execute the “next big thing”

They focus on perfecting and fine tuning the original

innovation, often incapable of further Innovations.

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 Creating a Culture of Innovation

Reward for taking risk

Failure is acceptable(at times)

Skunk works – removed from day to day time

wasters

Thinking ‘outside the box’

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 Is Innovation fostered by face-to-face
contact?

Home vs Office - Productivity vs Innovation ?

Marissa Mayer’s Edict
Can Collaboration tools simulate the “random”
effect

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 Hiring, motivating & retaining Innovative
people

Innovators are “weird”

- Loners, disruptive
- Crazy ideas
- Rebel against conventional wisdom

Give them a stake in the outcome

Nurture and Mentor
Protect them from the “corporate culture”

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 “Borrowing” an Innovation

..and improving on it
..or just making it work

IBM invented SQL but Oracle implemented it

Xerox PARC invented the mouse and GUI, but

Apple commercialized it

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 Managing Innovation – an Oxymoron?

…Can it be “managed”

Or just encouraged?

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 Encouraging Innovation
 Strategy
 Process
 Culture
 Mentoring
 Accountability and Ownership
 Resources
 Ideation
 Measuring & Monitoring

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 Buying Innovation

…and not killing the culture that created it

Apple buying neXt

Oracle buying 90+ companies

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 Innovation Failures

How do you know when an Innovation is not

working?
When do you stop working on it?

How do you know when an Innovation is no

longer Innovative?

"The essential part of creativity is not being afraid to fail.“ - Edwin H. Land

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 Developing Innovative Ideas
“The way to get good ideas is to get lots of ideas, and throw the bad ones
away” Dr Linus Pauling

Keep up with current trends

Take time to think and read
Ask questions
Seek ideas from any source
Try something new each day
PPM as Idea Management System

“A discovery is said to be an accident meeting a prepared mind.” A. von

Szent-Gyorgyi

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 Innovation Funnel

New Products /
Ideas Concepts Projects Processes

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 Selecting the Innovation

Portfolio Management is the obvious answer –

..But how do you know what will work?
What are the criteria?,
How are they weighted?
How do people rank them?
Who ranks them?
Where is the water line?

Gut feel still plays a role.

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 Innovation

How do you balance Innovation with

performance excellence?

Enterprise Project Portfolio Management !

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 Enterprise Project Portfolio Management

What is it?
Project Portfolio Management at the
Enterprise level - Connected to Enterprise
Systems – Tied to Strategy

A way to run a business not just projects

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 12 Steps to Project Portfolio Management

1. Establish Review Group

2. List Strategic Goals and Objectives
Define and Rank
3. List Existing Projects and Ideas for New
Projects
4. Value each project’s Support of Goals
5. Calculate and Analyze Project Scores
6. Analyze and Optimize by:
Budget, Resources, Risk, ROI, Redundancy

‘
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 12 Steps to Project Portfolio Management

7. Establish “Water Line”

8. Add Back “Must-do” projects
9. Recommend Optimal Portfolio
10. Initiate New Projects / Cancel existing
projects missing cut off
11. Publicize Results and Methodology
12. Establish Periodic Reviews

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 Innovation Execution and EPPM

Innovation is about execution

Successful execution requires monitoring

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 Innovation and Risk Management

Innovation entails risk

How do you measure and report that risk?

Publicize the Risks

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 Innovation and the Executive
Balancing Innovation and ‘keeping the lights
on’

What must we stop doing?

Allocation of resources

How to get my organization to embrace

change?

Remove fear and reward innovation

Make your approach to risk taking transparent

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 Innovation and the Portfolio Manager
Ensuring that innovative initiatives fit within the
organization’s strategy

Balancing the mix of risky innovations with ‘tried

and true’ projects

Can the organization support two projects with

same objective
Are there enough resources to execute all the
innovations and other projects?

Criteria for success for innovative projects

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 Innovation

It comes from luck

Luck comes from selecting the right

•
opportunity
and having the courage of executing it well at the right time

In large organizations, that requires EPPM

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 Innovation

“It is not how many ideas you have. It’s how many you
make happen.” Accenture Ad

“An idea that is not dangerous is unworthy of being

called an idea at all.” Oscar Wilde

“The best way to predict the future is to invent it.” Alan

Kay

“You cannot discover new oceans unless you have the

courage to lose sight of the shore. “ Andre Gide

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 Primavera Enterprise Project Management
Platform
P6 Enterprise Project Primacera P6 Analytics
Portfolio Management Risk Analyis Business Intelligence

Unifier Instantis
Instantis
Portfolio Management IT PPM
Cost & Change Control IT PPM

UCM Content
BPM Workflow
Management
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 The Vision - Multi-Initiative Solution

Corporate EPC
Projects Contractor

Installation
Services Manufacturing

Routine Owner
Maintenance Capital Projects
FM/RE

Shutdown /
Turnaround /
IT
Outage

Earned Value
NPD Program Management

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 CLOUD INTEGRATION SOCIAL MOBILE PPM PROLIFERATION

CLOUD & PRIMAVERA MODERN UI COMPOSITE MOBILE ORGANIC

ON-PREMISE GATEWAY ORACLE SOCIAL PLATFORM DEVELOPMENT
ANALYTICS STREAMS AGNOSTIC ACQUISITONS
WORKFLOW CROWD SOURCING IP UNIFICATION

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Dick’s Picks

• Mobile Apps
• Social Networking on the Job
• Mapping as UI
• Smart Phones Replace Laptops
• Flexible Computer Screens
• Jawbone Wristband
• 3D Printing
• Augmented Reality

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 Dick’s Picks – Mobile apps
What Activities are
underway with 100m of
me?

Let me see a job photo

taken here 2 weeks ago?

Where is the Electrician?

Medical Diagnosis by App

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 Dick’s Picks – Social Networking on
From this:
the job To this:

What’s a good french Who has worked with

restaurant in Denver? Subcontractor ABC?

Anyone using the new Has anyone used

Samsung Galaxy? technology XYZ?

Who knows about the

new regs?

Who do I see in Finance

to get a supplier paid?

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 Dick’s Picks - Mapping as UI

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 Dick’s Picks – Smart Phones Replace
Laptops

Keynote

Keynote
Remote

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 Dick’s Picks – Flexible Computer
Screens

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 Dick’s Picks - Jawbone
Wristband and UP app

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 Dick’s Picks – 3D Printing

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 Dick’s Picks – Augmented Reality
Augmented reality (AR) is a live, direct or indirect, view of a physical, real-world environment
whose elements are augmented by computer-generated sensory input such as sound, video,
graphics or GPS data - Wikipedia

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 dick.faris@oracle.com

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