5 steps to optimize capacity for digital transformation

: Creating : IT Capacity

To Transform Business

5 Steps to Optimize Capacity for Digital Transformation

Based on the 2016 Resource Management and Capacity Planning Benchmark Study

Maureen Carlson, Study Chief Researcher, Appleseed Partners Jerry Manas, Senior Research Analyst, Planview '

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© 2016 Planview, Inc. I 1

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The BIG Picture

What companies need to solve for right now ....

'To have the capacity (people) to improve customer experience and meet growth objectives'


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Demographics

Job Level

Number of !Employees Worldwide

Annual Worldwide Revenues

Industry

1% 2%

Breakdown by Region

(n=408)

• United States or Canada

Europe/ Middlle East/ Africa

Asia Pacific ind. Australia and New Zealand

Other

Today's presentation is focused on 167 IT and IT PMO leaders


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Study and Methodology

View the On-Demand Webcast: Planview.info/OptimizeCapacity

http://go.planview.com/resource-management-capacity-planning-it-wc.html

Trends: High Level (Qualitative & Quantitative)

Lower Maturity

Annual planning

Incoming demand, limited process

Lack of visibility into demand, capacity

IT PMO perceived as schedule/process keeper, receives wish list

Continue to get overcommitted

IT PMO unclear about role


Higher Maturity

Ongoing, continuous planning

Constant incoming demand, established process

Awareness that visibility into demand, capacity is important

Repositioning IT PMO to provide capacity data what-if scenarios and tradeoffs

Agile and adaptable

Becoming part of the business; headed to establish EPMO; change

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Lower maturity


Listening in to the IT PMO

"Considering capacity in the

project approval process is crucial

but hard."

Mid maturity

"We always consider capacity now. We're trying to get people to look at it and make decisions on it.

It's a culture shift."

Higher maturity

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What if ...

IT PMOs could drive prioritization and capacity planning?


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Low Maturity (n= 54)

Mid Maturity (n =60)

High Maturity (n = 52)


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Resource Management Pain Points By Capacity Planning Maturity Level

Overcommitted resources

Constant change that affectsassignments and availability

Inability to prioritize shared resources

Inability to access real-time reports onresources

Inaccurate resource estimates

25%

25%

48%

72% 68%

63% 70%

56% 61%

] 47% 36%

37% 57% J 32%

56% 40%

37%

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Capacity Planning Pain Points By Capacity Planning Maturity Level

Lack of combined, holistic view of both resource capacity and pipeline demand

Ineffective demand prioritization and governance process

Unable to run what-if scenarios

Insufficient visibility into resource capacity

Insufficient visibility into pipeline demand


69%

43%35%

29%

67%]48% 38%

10%

23%

45% 67%

] 29%38%

35%59%

56%47%

• Low Maturity (n = 54)

• Mid Maturity (n =60)

• High Maturity (n = 52)

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Everyone views capacity Prlanning as important, some find it difficult


Low Maturity (n=39)

High Maturity (n=45)

Importance and Difficulty of Considering Capacity in Planning Process

Extremely Important Extremely Difficult

74%

73% 22%

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5 Steps to Optimize Capacity

Becoming capacity-centered as a way of life


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Poll question #1: Which best describes how resource capacity is considered in your project approval process? -We never consider capacity-We sometimes consider capacity-We consider capacity most of the time-We consider capacity all of the time


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Poll question #2: How long does it take your group to evaluate whether your company has the ability to take on a new, unplanned project? -Minutes-Hours-Days-Weeks-Months


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Trend: Expanding the scope of the PMO

• Low Maturity (n=54)

• Mid Maturity (n=60)• High Maturity (n=52)

Does your organization have an Project Management Office or Center of Excellence for Capacity Planning?

Yes - established

In process of establishing

Considering or evaluating

No, not at this time

-17%-15%

12%

-15%• 7%

2%

39% 50%

60%

30% 28%

23%


"We thought we had supply and demand meetings, but we did not really have the

facts. The PMO is key to this II now.

-Program Manager, GlobalInsurance Company

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Risk of Inaction

Top Business Risks of Not Addressing Resource Management and Capacity Planning with Improved Processes and Tools

Inability to complete projects on time 53%

Increased project costs 43%

Inability to innovate fast enough 41%

Dissatisfied customers or clients 38%

Missed business opportunities 31%

* n = 167


"The risk of poor capacity planning is not maximizing our resources. Our focus is on the innovative use of technology. We're refocusing our PMO to be involved in the beginning, not as an afterthought."

-IT Resource PlanningAnalyst, State Agency

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"We have seen a shift in PMOs being administrative function to a high value function. It's hard to do when it is a silo'd function with shared resources. We must look at all the investments across the business to identify conflicts to meet strategic objectives.

We are establishing an enterprise PMO and we'll have people embedded within the business." -Program Manager,

© 2016 Planview, Inc. 23

Global Insurance Company

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Questions and Answers

Please use the O&A window to ask questions.


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© 2016 Planview, Inc.

Learn More about the Resaerch & Download the Guidebook

planview.com/rmcp



Executive Summary

Whil • bu.ineuu ••• •mb<•cing digit•I tr•n.,orm•ti on, Jt'oimportanttoconoi&orth ••p,,c,fieimp•cbot oll

IT ia going through rb own t ranaformation within th•bu1inH1.ITiae�..dto1uppon:ui11ing •nd l�acytechnologywhil•innova ting and t.oking onn.w a<:h nology. •II in t h• f•c. of r•lantlNa, digital chang•. lf,.,,.,the,,.wn•n•edtob• nimbl•,•ndconfide nt ,....,.,...,,.. ••• w orl<ing on th• right pr;.,,,.,iH, it io now

Ra,11ord,aliOW11thot lT ha1alway1 hadtoo mi;ch d.m•nd,,u.tchingitor•1ourc.1thin;but

dignalieat;on ra'lui ramenuhanp uah • dthia toa n a ll-tim ahi9h.Thagoodnewa i1 t ha10,ganizat1onoa t a highe,maturitylavel int e,maofcapacjtypla nning ar•38'1.bett•1•bl•1oprio,;fu•d•m•ndthrou9h comin�ou• planning •nd ••• � b.tt•r •quipp•d torunaccurat..what-ifoc:+narioato optimi:c•their r&1ourc••· Th .y improve p roject tim • linM1 a nd ...duca buain ... nab th at th1Hl•n innovation ap e ad b<>eaua•th•yhavethe data1oh•lpth a bu1in .. 1m11<a amerttradeoff,,

It's safe to say there will always be high demand causing overcommitted resources, but how IT ev11luirtes dem,.nd could free up capacity to tr11nsfonn the business. IT needs" c11pacity-centered approach, so that ev11IU11ting resources 11r.dtheir &v.11il,,.,bility, &s part of the portfolio prioritization process, becomes" w&y of life.

a 5 Steps to Optimize

Capacity for Digital Transformation

For more information about the study, visit: rmcp.planview.com

2 Understand resource capacity

It's not uncommon for organizations to commit to new projects without taking into account capacity- in other words, the people needed to do the work.

For lTor9ania t,<>no.<>nly 31'l'<>flow•r metYrity<ompan1Htak+upacityintca<coYnt m<>tt or all o f thet,ma,a1ignifican1d,lf+rence from72"ofhigh•rmetYritynrga niationalhet t+Ucapacityintoaccount mos\orall ofth•

Orgeni.a tion1that ar+c•pecity--c:ant+redin th ai,gat,ngproc•u-aremoreli>Calytodaliver projact>on-tim•

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26 PLAN VIE We


Thank You

Maureen Carlson [email protected] @mocarlson



Jerry Manas [email protected] @jerrymanas


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5 steps to optimize capacity for digital transformation

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