Developing Project Portfolio Management Process
The client is one of the major electrical utility companies in the US. Its functions include distribution and supply of electricity to a wide range of customers including small domestic customers and medium / large commercial and industrial users. It also has generating capacity from interests in nuclear, hydroelectric and fossil-fueled power plants.
The client was neither able to meet demand for resources to meet business needs nor able to objectively explain to stakeholders resource allocation decisions. The client lacked well- defined standard processes for evaluating projects requesting for resources. Hence, resources were allocated to projects on an ad hoc basis and alignment with business strategy could not be ensured. There was little accountability for benefits claimed by sponsors during resource allocation decisions. This was impacting millions of dollars in spend.
Convincing all stakeholders to adopt well-defined standard processes to manage demand for resources posed a challenge. Stakeholders demanding the resources were unable to understand the reasons for the huge backlog of unfulfilled requests and long lead times for responses. The information technology department was unable to keep pace with the demand within available budgets. Lacking long-term plans, it was difficult to plan and manage resources effectively.
The Infosys solution enabled the client to align annual budget plans with business strategy. This helped ensure that the resource allocation decisions were aligned to business strategy. The solution defined standardized processes across the enterprise to evaluate, prioritize and allocate resources to projects. These processes were supported with tools like Scoring Models, Prioritization Framework and Phased Gating Templates to achieve these objectives.
The application of the processes and tools enabled immediate identification of projects requesting substantial spend numbers that were not aligned to the business strategy. As a result, the client experienced immediate benefits from implementation of the solution.
The tools enabled the client to explain to stakeholders, the reasons for rejecting or delaying a project request. The adoption of the solution also provided the technology service providers an annual plan of projected requests.