Using the Balanced Scorecard to

Enhance the PPM Methodology

James Norrie, B.Com, M.Ed, M.A.Sc., CHRP, PMP

Director, School of Information & Technology
Management
Ryerson University, Toronto, Ontario, Canada
When You Measure Project Results
Do You Fail?

The Boston Consulting Group released a study

that says two-thirds of their big projects were
pegged as unsuccessful overall.

Because companies do not invest in Program

Management: Over 85% of organizations do
not train their project managers or support
them with a project office

According to THE WALL STREET JOURNAL,

42% of all technology projects launched in the
U.S. are abandoned before completion. With
more than $250 billion spent on IT every year,
that means $105 billion goes down the drain.
My Own Research Identifies Four Major
Barriers To Strategic Success
The VISION Barrier
Strategy is not understood by those
who must implement itand not
translated into clear objectives

The PEOPLE Barrier STRATEGY

Personal goals, The MANAGEMENT Barrier
knowledge building, and Management systems are
competencies are not designed for operational
linked to strategy control and tied to budgets;
implementation not to strategy and projects

The OPERATIONAL Barrier

Key processes and projects are not
designed to connect to and leverage the
real drivers of your business strategy
The Original Time-Cost-Quality Triangle

On-Time

On- On-
Budget Quality

Sources: Various including PMBOK. PMI Inc.

But Isnt There a Dimension Missing?

What About On Strategy?

It doesn't matter if your project or program is on-

budget and on-time if the company doesnt need it.
All too often, the intended strategic outcomes
planned for a project or program are not fully
achieved or are not all that important if achieved.
And, if you face limited resources, how do you pick
the projects that will have the most strategic impact?
The Program/Project Strategy Challenge...

Program Managers struggle with

answering whether or not their projects
are on strategy because companies
struggle with executing strategy.

The key is to link project results to

business strategy in a tangible and
visible way that everyone understands.
Revised Triangle: Adds On-Strategy Dimension

On-Time

On-
Strategy

On- On-
Budget Quality

Source: J. Norrie, Ryerson University, c. 2002

The Balanced Scorecard Provides a Framework to Translate the
Vision and Strategy Into Operational Terms

The Vision

Financial Perspective

"If we succeed, how will

we look to our
investors?

R Measurement is the language that Customer Perspective

gives clarity to vague concepts. "To achieve my vision,
how must I look to my
R Measurement must be used to clients?
communicate, not to control.
Internal Perspective

R Building a scorecard develops "To satisfy my clients, at

which processes must I
consensus and teamwork excel?
throughout the organization and
across strategic projects. Organization Learning

"To achieve my vision, how

R Balanced measurement across all must my organization learn
and improve?
perspectives, including projects, is
fundamental to the methodologys
ability to influence results.
 How the BSC Works to
Improve Strategy
The Balanced Scorecard methodology captures linkages
between objectives and effort across multiple perspectives

Increase
FINANCIAL Revenues
PERSPECTIVE

CUSTOMER Increase
PERSPECTIVE Customer
Satisfaction

INTERNAL Provide Reduce

PERSPECTIVE Appropriate Response
CRM Tools Time

LEARNING AND Increase

GROWTH Improve
Staff Training
PERSPECTIVE Knowledge
 Creating a Project Balanced
Scorecard
The methodology of creating a P-BSC assures all key issues and
stakeholders are addressed to build support for the program, reduce
the risks and assure organization alignment and strategic outcomes.

Corporate Strategic Plan

Key Stakeholder
Customer & Employee Interviews
Issues Strategy Mapping
Technology Issues & Measures
Program Charter

Project Scorecard
Program Vision

In it
Me
iati
Ob
asu ives
ve
jec

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Financial

re s
Workshops

Init
Me

iati
Ob
as

ve
ure s
jec

s
Customer

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s
e

Init
Me

iati
O
as

ve
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ure es

s
Internal Process

ct iv

InIn
it ia
it ia
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Organizational Enabler

es
t iv
es
The Balanced Scorecard Approach Changes the Premise
Upon Which the Management System Is Based

From a To a
Management Control System Balanced Management System
Designed around a short-term Designed around a longer term
control- oriented financial framework strategic view

Strategy Translating
and the
Vision Vision and
Strategy
Communicating Feedback
Personal Review & Balanced
Budget and and
Incentives Reorient Linking Scorecard Learning
Planning
and Business
Capital Planning
Allocation
 The Optimal Order of Operations

Strategy Projects Capacity

In this instance, the organization determines its strategy, project plans are
developed and then capacity planning processes are used to determine
resourcing options and alternatives that will accomplish the strategic agenda at
optimal cost and efficiency. Capacity is seen as a potentially limiting factor in
strategy execution but not as a pre-determined constraint (i.e. capacity is treated
as a flexible input to strategy development).
DEFINING PROJECT PORTFOLIO
MANAGEMENT (PPM)

The art and science of applying a set of

knowledge, skills, tools and techniques
to a collection of projects in order to
meet or exceed the needs and
expectations of an organizations
investment strategy

- Source: PMI Knowledge Wire, March 2003

What Drives Your Company/Organization?

A companys processes must be tailored to its business drivers and strategy. There
is no one size fits all approach. However, there are clear best practices that work
for each and that should be incorporated into a companys strategic process
design,including business cases and any project management methodologies.

Speed to Market?
Quality?
Cost?
Service?
Market Share?
Technology Advances?
Product Innovation?
Customer Intimacy?
Vertical Expertise?
Revenue Growth?
Profits?
Share Price?
 PROJECT PORTFOLIO MANAGEMENT PROCESS

1
2 Capacity
4 Planning
Priority
Matrix
Screen (Gate 2) Master
Checklist
(Gate 1) Project
3 Schedule

Project
Project
Requests 5 Activation
(Gate 3)

Prioritization

Screening Registered
Project Project
Project List
Cycle Time Outputs

Executing/
Originating Initiating Planning Closing
Monitoring
Source: SPM Group, March 5, 2003
 PRIORITIZATION MODEL
People Customer
Project A
Project B
Project C
Project D
Project E
R
Project F
Project G I
Return Return
Project H
S
k

Service Financial
Size of bubble indicates strength of strategic contribution.
Weak
Very Direct Direct Indirect

Color of bubble varies by project.

REGISTERED PROJECT LIST
A listing of projects in priority order:
1. _____________________
2. _____________________
3. _____________________
4. _____________________ Water
Line
5. _____________________
6. _____________________
7. _____________________
8. ___________________ ...
 largest agriculture lending institution in Canada
approximately $11B portfolio and 1300 employees nationwide
considered by its clients to be very customer-oriented
launch many new products/offerings every year
considerable emphasis on IT to enable the business (web, etc.)
Mitigating Project Risk Through the
P-BSC at FCC
The methodology and structure of creating and using the Project Balanced
Scorecard was designed to assure that any program and all its underlying
projects and initiatives remain on strategy with an early warning system within
FCC for high risk areas that may need senior management attention.

Serving Canadas Ag Industry through Self-Sustaining Growth

LEVERA GE R ES OU RCES
(Optimize Ops)?

by prudent financial management and

continuous efficiency improvement
CUSTOMER FOCUS

by serving the full life cycle

and retaining? customers
INN OVATIVE CULTU RE

by developing, packaging, and delivering

solutions in new ways
SOLUTION (SELLING?)

by serving the full spectrum of

the agricultural industry
VISIBILITY

by attaining an enduring market

presence with our stakeholders
Program Objectives
Financial
Improve Operating
Improve Operating
Efficiency Grow Returns by S erving Broaden Revenue Grow Revenue Strategies & Objectives Ubiquitous data
Efficiency Grow
Cust Returns
omers sobythey
Serving Broaden
Mix with Revenue
New
GrowCustomer
Through
Through
Revenue Grow the Value of to help enable the globalisation
Customers so they Mix withand
New ExtensionCustomer
and Grow
FCC the Value
Brand Equity of
Choose to Stay
Choose t o Stay
Products
Products
Services and
Extension and
Expansion FCC Brand Equity of the Corporation
Leverage Financial Services Expansion
Leverage
AssetsFinancial Program Execution Program Results
Asset
(Leverage s
equity?
(Leverage
Manage equity?
fin assets?)
Manage fin asset s?) Leverage Strategic Themes:
Leverage
Human by managing all as pects of the program by enabling globalisation with high quality
Human
Capital? Dif ferentiate FCC by Perspecti ves: executi on to successfully deli ver global data and accessible business information deli vered
Capital? Make FCC Easy to Differentiate
offering FCC by
solutions in a global c ommon business language
Customer DoMake FCC With
Business Easy to management
Solve Value Adding offering solutions
integrating Farm Be Known as
Do Business With Solve Value Adding
Problems integrat Be Known as Mission M1.1
Finance anding Farm
Business Provider of Choice Deliver Enable well M2.2
Ensure Problems
(Opportunities) Create New Finance and Business
Services forProvider of Agri-
Innovative Choice program on-time, Global
Global interaction
interaction
(What are the desired informed decisions

Program
Ensure
Customers (Opportunities) Create New
Markets Services for Innovative
Finance A gri- M1.2 on-budget
on-budget and on- based on a language
Finance strategic outcomes we Manage
Manage risk strategy
strategy M2.1
with global data
data
Increase Customer Customers
Perceive V alue in Markets to assure
Perf orm a Clear Public assure definitions
definitions
Increase Customer
Satisfaction Perceive
The V alue in
Relationship Stimulate High Risk Perform are striving for?) business benefit
Satisfthrough
action The Relationship Policy Rolea Furthering
Clear Public
(Loyalty) FundsStimulate High Risk
f or Agri-Ventures Policy Role
Govrnmnts Furthering
Agricultural
(Loyalty)
Superior through
Execution Funds for
Beyond Agri-Vent
FCCs Publicures Govrnmnt s Agricultural
Superior Execution Cross-sell the Policy Framework
Shift Customers Cross-sell
Product Linethe
Beyond
Policy FCCs
Risk Prof ile Public
via VC Grow Awareness
Grow
Policy Framework Customer C1.1
to Shift
Best Customers Policy Risk Profile via VC of FCCAwareness
Brand Meet
Meet client
client C2.1

Performance Measures
Channel Product Line Relationships Access trusted
trusted
to Best Channel Relationships of All
With FCC Brand
Publics (What are the expectations and timely
timely data
C1.2
Offer Targeted With All Publics expectations of Identify
Identify and at all
all levels
Offer (includes
Products Targeted our customers? resolve
resolve key
Products
pricing)(includes Develop New issues
Service/Process pricing) Develop New
Products & Introduce What is the end Effectively
Effectively Flexibility
Flexibility to
C2.2

Products & Introduce

Products for communicate
communicate between
between support future
Services Products for result they are PXO & business on all
Implement Services Additional changes
changes

ProgramStrategies
Execution Measures
Additional Proactively Manage looking for?) pertinent issues
Delivery & Objectives
Optimize Productivity Implement Segments issues C1.3
Retent ion Segments Proactively
Industry and Manage
Media
OptimizeCont
Through Productivit
inuous y Retention
Planning Provide Rapid Develop and Industry and/ Media
Through Continuous Provide
ResponseRapid Relations
Process Improvement, Planning Develop and
Implement a Relations /
Communications
Process&Improvement,
(Channels Partnering) Response Prioritize Implement
Prioritizefor
Opportunities Part nering / a Communications P1.2
(Channels & Partnering) Implement Partnering
Process/
Implement
CRM
Opportunities
Innovative for Alliance
Alliance Process
Inte rnal Align program
activities with
with Manage Scope
Scope
Sustain
Sustain
consistent
Maintain P2.2
Innovative continuous Current
CRM Solutions Process business
business objectives and
and change P2.1 Strategic Measure Target Owner
Processes
Processes Solut ions Give Back to the requirements
definition and
high quality
quality of
improvement of data
quality,
Program Execution Performance
Improve Risk Alliances & Implement COE Give Backin to
Communities the
Which (To satisfy our P1.1
quality, process and
Improve Risk Alliances
Part nering & Enhance Adjust Processes Implement COE Communities data results
Management Enhance Adjust Processes Program Process we OperateinWhich customers, at what Monitor
Monitor Strategic Themes:
(M1.1) EVA for har monisation/integration activities of OoT
Management
Practices Partnering Cust omer to Foster Program Process we Operate
Community program by managing all as pects of the program Operational expense budget on Target 165M FY00 Yellow
Practices Customer
Segmentation Minimize to Foster
Discussion and Community Management execution
execution Perspecti ves:
Segmentat ion Minimize
Problems Discussion Investment execution P2.3
to successfully deliver global data (M1.2) % o f customised solutions vs. global solutions
New Thinkingand Investment process must we P1.3
Problems New Thinking P1.5
P2.4 Change control
control management (C1.1) % o f projects co mpleted on-time
excel?) Initiate Continuously
Continuously and
and resolution
resolution % o f co mpleted projects meeting 90%+ of functionality expectations
Plan Program M1.1
People Capture and Deepen
Identify External
Identify
Sources E of
xternal
Program Mission
monitor program
program
results
results
Deliver
Deliver (C1.2) % o f solutions designed to be scalable for 5x capacity
Build Risk Identify Profitable Capture andSector
Deepen Create Centers Understand Who P1.4
(What are the desired program on-time, % o f solutions with capacity & design signoff by business
Build Risk Identify Channels,
Customers, P rofitable Agricultural Sources
Cutting Edgeof ofCreate Centers
Expertise for toUnderstand
Talk to andWho M1.2 on-budget
on-budget and on-
KM Management Agricultural
Expert Sector
ise (identif y Celebrate Cutting Edge Manage
Manage risk
risk % o f solutions with unit-cost savings when additional users are brought
Management
Expertise Customers,
Products. Channels,
(Understand Celebrate
Small Agri-Expertise ofCreative
Expertise for to Talk
What t otSay
o and Understand strategic outcomes we strategy
strategy
Expertise
the needs)(identify Agri-Expertise Understand O1.1 to
to assure
assure onto platform
Products.Profitablity)
(Understand Creative What to Say Community Organisational Share
Share knowledge

Program Plan
Expertise Customer the needs) Small
Innovations Solutions are striving for?) business benefit (C1.3) # of C&W network outages (testing: meshed)
Enhance port folio Customer Profit ablity) Innovations Solutions Community
Needs and leverage best
Enhance
data infoportfolio Needs Enablers O1.2 practices
practices Maintain O2.1
# of occurrences o f single-point-of- failure
dat ainfo
management (To excel at our Fully define PMO institutional
institutional repository % o f SLAs guaranteeing end-to-end network perfor mance, including
management
capabilities Enhance I.T. for Mine processes, how must organisation
organisation Customer of common global Meet
Meet client
C1.1 responsibility for 3rd party partner per for mance
capabilities EnhanceSpeed,
Improved I.T. for Mine
Strategic Build Partner / Build Industry & language (C1.4) Customer service results on proactive service query
IT Integrate Solutions Build Industry & Develop our organisation O1.3 O2.2
(What are the C1.2 expectations
Improved
Timeliness, Speed, Strategic
Cust omer Build Systems
Alliance Partner / Competitor Develop Identify
Identify internal and # of solution teams that deliver monthly update to client
Integratevia
Offerings Solutions
Best Competitor Community external skilled Develop standards
expectations of IdentifyO2.3
and
Build Risk Timeliness,
Integration, Customer
Information Alliance Systems
Infrastructure & Knowledge Base Community learn and improve?) in cooperation with and (P 1.1) Products implemented across multiple geog., with minor modification 75% - 10/31/00 Yellow
Build Risk Offerings via Best
Practices Knowledge Base Listening Posts implementation
implementation with resolve key
key
Management Integration,
Reliability, and Cost Information Infrastructure
Applications & Practices
WorkBench &Listening Posts
K nowledge resources the Standards our customers?
Group
Group Create teamissues
of # of functional elements (of products) that conform to standards 100% - 6/30/02 Yellow
Management
Database Reliability, and Cost Applications issues
Implement Customer WorkBench & Base
Knowledge What is the end Effect ively
Effectively
S am p le W o rk P la n fo r IR T P ro jec t a t H P
Database O1.4 internal
internal and external (P 1.2) # of maintenance tasks perfor med ac ross multiple geographies 12 - 12/31/00 Yellow
Implement Customer
Relationship Base result they are skilled operational communicate
communicate between
between P roduct towers covered by global service centres 3/5 by 12/31/00 Yellow
Fully
Fully define PMO
PMO PXO & business on all
Relationship
Management? process
process resources
resources # of initial 35 products developed by cross-geographic teams 12 by 10/31/00 Green
Develop Strong Management? Define looking for?) pertinent
pert inent issues C1.3
Develop Strong Lead Integrated Attract & Retain Develop Dynamic Develop & Groom (P 1.3) P roject milestones met 80% - 12/31/00 Yellow
Leadership Financial Thinking Skills Define
Innovation Attract & Retain
Agri-Content Develop Dynamic A p r il M ay June J u ly
Financial Thinking
in Staff (KM & LD)Skills Lead Integrated
Sales/Financial Innovation Leadership of Cross-Functional FCCDevelop & Groom
Ambassador(s) P roject Budgets met 60% - 12/31/00 Yellow
Sales/Financial Strategy Agri-Content
Expert ise Leadership of
Agri-Finance Cross-Functional
Solutions Teams FCC Ambassador(s) (P 1.4) # of interfaces is less than number of customers/channel partners by 12/31/00
Successful in Staff (KM & LD) PD& I Teams Strategy Expertise
Yellow
Successful PD&I Teams Agri-Finance Solutions Teams % CR B approved projects complying with IT/Engr. Global Roadmap 30% - 12/31/00 Yellow
Strategy
Strategy
Execution
Enhance Bench Strength & Succession Planning Inte rnal Align program
program
activities with Manage Scope
P1.2

Scope 60% - 12/31/01 1

Yellow 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
with
Execution D l L d hi Skill t All L l fM t and change % o f C RB approved OoT project through Standards review process 15% - 12/31/00 Yellow
Process business
business objectives
objectives
requirements
requirement s 80% - 12/21/01 Yellow IR T L ev e l B S C
(To satisfy our P1.1 (P 1.5) % o f 35 products developed using collaborative tools & technology (using 100% - 10/31/00 Yellow
customers, at what Monitor
Monitor existing tools)
program (O1.1) Is methodology defined, and in-place? (Y/N)
O P T IO N # 1 Y - 12/31/00 Green In fra stru c tu re B S C # 1
Management execut ion
execution Y- 12/31/00 Yellow
Are case tools/development tools available? (Y/N)
process must we P1.3
(O1.2) % value o f OoT purchases made o ff pre ferred-vendor list R
R e n a is s a- 3/31/01
35% n ce Yellow In fra stru c tu re B S C # 2
P1.5
excel?) Initiate
Initiat e
Program Plan Program d70%
L eeaa d in g- 3/31/02
a ll Yellow
Program 100% - 12/31/00
P1.4 (O1.3) # of products that can accept a 4x volume increase over sales forecastSwithin
cc o r e c a r d s
Yellow In fra stru c tu re B S C # 3
90 days (i.e., 90 days to ramp-up for change) 30 days - 12/31/01 Yellow
(O1.4) eGo Milestones met (Y/N) Yes - always Green In fra stru c tu re B S C # 4
Desktop video rolled out to level 3 staff 80% - 12/31/00 Yellow
Organisational O1.1 Share knowledge Role definition provided within 10 days of new assignment 100% 100% always Yellow
and leverage
leverage best In fra stru c tu re B S C # 5 P ro to ty p e &
Enablers O1.2 practices
practices
Rollout Global Messaging System 250 - 7/31/00 Green
D o c u m e n t.
100% - 2/28/01
(To excel at our Fully define
definePMO
Green

processes, how must organisat ion

organisation
% o f attach ments on emails O P T IO N # 2 50% - 12/31/00 Yellow
% o f level 2 & 3 positions filled on permanent basis 90% always Yellow
our organisation IR T L ev e l B S C
(O1.5) Representation on strategic supplier advisory boards 60% by 3/31/01 Yellow
learn and improve?) Limitations for technologies formally documented for 35 products -
R
R e n a is s a n c e
O1.3 Standard - an n dd100%
H P- 12/31/00 Yellow In fra stru c tu re B S C # 1
Identify
Identify internal and
and O1.4
external skilled Non standard - L e a 50%
d in g
in-12/31/00 Yellow
In fra stru c tu re B S C # 2
implementation
resources Fully
Fully define PMO
(O1.6) # of project plans targeting legacy decommissioning roadmap S cc o r eTBD
cards Yellow

process % o f systems/applic. covered by system deco mmissioning roadmap 100% - 12/31/00 Red
In fra stru c tu re B S C # 3
Page 1
In fra stru c tu re B S C # 4

In fra stru c tu re B S C # 5 P ro to ty p e &

R e n a issa n c e
L eads B S C D o c u m e n t.

H P In te rn a l
T e a m L ea d s K ic k o ff M e e tin g M a jo r C h e c k p o in t
BSC
1 9 99 R ena issan ce W o rld w id e, Inc. - A ll righ ts r eserv ed . 3
The First Step was Value-Add of a
Centralized PMO Function
Oversight

Deliverables

Project 1

Project N Project 2
Resource pool Tracking &
Coordination Deliverables Monitoring
Deliverables

Project 4
Deliverables Project 3

Deliverables

Reporting
 NextDesign of a Two Phase PPM
Process for Immediate Implementation

Strategy Project Capacity

Statements & Registered Planning &
Measures List & Process Activation

We are tracking as planned at this point. FCCs internal team is now moving
towards the design and implementation of the individual project management
methodology, activation and capacity planning processes (including a master
project plan), and project reporting templates. PMC is learning to manage the
registered list and deal with new project requests. PPM is also being seamlessly
integrated into the current IPP and FMCR processes (where appropriate)
 WHAT IS THE BIG DEAL?
Balance!!
Registered Project Financial Customer Service People
List (Risk/Reward)
3. Project A
4. Project B
1. Project C
2. Project D
5. Project E
Taking a balanced (across all four perspectives of the balanced
scorecard) and also on-strategy view (risk/reward trade-offs) into
account when setting project priorities and making project activation
decisions improves outcomes and enhances strategic results.
 HOW PROJECT
Strategy
PORTFOLIO MANAGMENT
Formulation
FITS at FCC
Goals & Measures
(Balanced
Scorecard/
Strategic Plan) Managing Project Portfolio Risk

Project Portfolio Capacity & Financial

Management Capability Management
Process Planning Disciplines

Middle ware between the

integrated planning process and Project
Management
project management process(es) Methodology

Aligned with capacity/capability

planning and financial Concept

management disciplines Plan

Execute
 STAGE 1: PROJECT SUBMISSION

1.

Doing projects that provide the

greatest strategic value to FCC
PROJECT PORTFOLIO MANAGEMENT
Strategic Fit
Alignment

Project
Project

Making sure your projects are on the

radar screen
 MAJOR PROCESS PAY-OFFS
Enhance strategy execution (more complete
information available for decision making)
Increase probability of attaining the resources
required to complete a project successfully
Reduce project duration
Implement leading-edge best practices in
project portfolio management and project
management
Balance portfolio of projects
Reduce project risk through strategic alignment
and integration
 STAGE 2: PROJECT SCREENING

2.

Screening out projects that are not

strategically aligned
 PROJECT SCREENING
Alignment with FCCs Vision, Mission
and Values
Linkage to the strategic outcomes in
the balanced scorecard:
Very Direct
Direct
Indirect
Weak
 PROJECT SCREENING

LEGEND
Degree of CUSTOMER Customer SERVICE
contribution to PEOPLE Loyalty Index, Loan Customer Experience FINANCIAL Return
measures in People Index, Portfolio, Venture Index, Service on Equity, Debt-to-
strategy Innovation Index, Captial, Management Provision equity Ratio, Efficiency
statements PROJECT Learning Index Practices Index/Efficiency Ratio Ratio Total
Very Direct 25
Direct 12 Project A 25 2 27
Indirect 5
Weak 2 Project B 5 12 2 25 44

Project C 12 2 25 39

Project D 25 25

Project E 12 5 17

Project F 2 2

Project G 25 25

Project H 5 5
STAGE 3: PROJECT PRIORITIZAITON

3.
 PRIORITIZATION MATRIX

Strategy + Return - Risk = Priority Result

(from screening)

With a BALANCED view across all

quadrants of the balanced scorecard
 PRIORITIZATION MATRIX - RETURN
Project 5 Year NPV Payback Period Unique Effort Months Project Duration Project Budget Return
Competitive (FTE Time x (cost)
Advantage Duration)

Project A 5 5 5 5 5 5 30

Project B 5 5 5 5 5 5 30

Project C 5 2 5 3 5 3 23

Project D 1 1 1 1 1 1 6

Project E 1 5 3 5 3 5 22

Project F 1 1 1 1 1 1 6

Project G 1 1 1 1 1 1 6

Project H 3 1 1 3 1 3 12

5 Year NPV Payback Period Unique Effort Months Project Duration Project Budget
Competitive (FTE Time x (cost)
Augments
>= $251K 5 <= 1 year 5 Current 5 <= 6 5 <= 6 months 5 <= $250K 5
> $0 and <= > 1year and <= Protects >7 and <= 24 >= $251K and
$250K 3 2years 3 Existing 3 >7 and <= 18 3 months 3 <= $1M 3
<= $0 1 > 2 years 1 None 1 > 19 1 > 25 months 1 > $1M 1
 PRIORITIZATION MATRIX - RISK

Project Estimate # of Business # of People Scarcity of Key External Business Technology Inter- Uniqueness Organizational Risk
Uncertainty Units Involved Involved Person(s) Partners involved Dependencies Impact

Project A (1) (5) (5) (1) (5) (5) (5) (5) (5) (37)

Project B (1) (1) (1) (1) (1) (1) (1) (1) (1) (9)

Project C (1) (5) (3) (1) (1) (3) (1) (1) (1) (17)

Project D (5) (5) (5) (5) (5) (5) (5) (5) (5) (45)

Project E (5) (1) (5) (5) (3) (3) (5) (5) (5) (37)

Project F (5) (5) (5) (5) (5) (5) (5) (5) (5) (45)

Project G (1) (1) (1) (1) (1) (1) (1) (3) (1) (11)

Project H (5) (3) (5) (5) (5) (5) (3) (3) (3) (37)

Estimating # of Business # of People Scarcity of Key External Business Technology Inter- Uniqueness Organizational
Uncertainty Units Involved Involved Person(s) Partners involved Dependencies Very Unique Impact
Impacts 2
Scarcity involves - Never Core or
outside new been done Enabling
26-45% (5) >5 (5) >15 (5) FCC (5) >one (5) systems (5) >2 Projects (5) before (5) Processes (5)
involves Some Impacts 1
major aspects or 2 Core or
Scarcity changes to have never Enabling
16-25% (3) >1 <=4 (3) >4 <=15 (3) within FCC (3) one (3) existing (3) 2 Projects (3) been done (3) Processes (3)
involves Similar to Impacts 0
existing other FCC or 1 Core or
5-15% (1) 1 (1) <=3 (1) No Scarcity (1) none (1) systems (1) 1 Project (1) projects (1) Enabling (1)
STAGE 4: PROJECT REGISTRATION

4.

Is the project official?

REGISTERED PROJECT LIST
A listing of projects in priority order:
1. _____________________
2. _____________________
3. _____________________
4. _____________________
5. _____________________
6. _____________________
7. _____________________
8. ___________________ ...
STAGE 5: PROJECT ACTIVATION

5.

Do you have authority to spend?

 PROJECT ACTIVATION
Project activation request and intial
project plan to support the approval and
allocation of resources to a project
Links each project to:
the master project schedule
specific project resources (internal or
external)
project budget
project expense tracker
 STAGE 6: PROJECT EXECUTION &
COMPLETION

6. Master
Project
Schedule

Project Project
Cycle Time Outputs

Execute, monitor, measure and communicate

results. Document lessons learned.
 The corporate strategy map contains programs (FCC has 13 today)
Each program needs objectives & performance measures associated with it.
E.g. What are the objectives & performance measures for FCCs Leadership &
Employee Development Program? For FCCs Strategy Execution Program?
You cant go straight from corporate strategy
map measures to project measures. You
need the PROGRAM OBJECTIVES in between.
Serving Canadas Ag Industry through Self-Sustaining Growth
LEVERA GE R ES OU RCES
(Optimize Ops)?

by prudent financial management and

continuous efficiency improvement
CUSTOMER FOCUS

by serving the full life cycle

and retaining? customers
INN OVATIVE CULTU RE

by developing, packaging, and delivering

solutions in new ways
SOLUTION (SELLING?)

by serving the full spectrum of

the agricultural industry
VISIBILITY

by attaining an enduring market

presence with our stakeholders
Program Objectives
Financial
Improve Operating
Improve Operating
Efficiency Grow Returns by S erving Broaden Revenue Grow Revenue Strategies & Objectives Ubiquitous data
Efficiency Grow
Cust Returns
omers sobythey
Serving Broaden
Mix with Revenue
New
GrowCustomer
Through
Through
Revenue Grow the Value of to help enable the globalisation
Customers so they Mix withand
New ExtensionCustomer
and Grow
FCC the Value
Brand Equity of
Choose to Stay
Choose t o Stay
Products
Products
Services and
Extension and
Expansion FCC Brand Equity of the Corporation
Leverage Financial Services Expansion
Leverage
AssetsFinancial Program Execution Program Results
Asset
(Leverage s
equity?
(Leverage
Manage equity?
fin assets?)
Manage fin asset s?) Leverage Strategic Themes:
Leverage
Human by managing all as pects of the program by enabling globalisation with high quality
Human
Capital? Dif ferentiate FCC by Perspecti ves: executi on to successfully deli ver global data and accessible business information deli vered
Capital? Make FCC Easy to Differentiate
offering FCC by
solutions in a global c ommon business language
Customer DoMake FCC With
Business Easy to management
Solve Value Adding offering solutions
integrating Farm Be Known as
Do Business With Solve Value Adding
Problems integrat Be Known as Mission M1.1
Finance anding Farm
Business Provider of Choice Deliver Enable well M2.2
Ensure Problems
(Opportunities) Create New Finance and Business
Services forProvider of Agri-
Innovative Choice program on-time, Global
Global interaction
interaction
(What are the desired informed decisions

Program
Ensure
Customers (Opportunities) Create New
Markets Services for Innovative
Finance A gri- M1.2 on-budget
on-budget and on- based on a language

TRANSLATING STRATEGY
Finance strategic outcomes we Manage
Manage risk strategy
strategy M2.1
with global data
data
Increase Customer Customers
Perceive V alue in Markets to assure
Perf orm a Clear Public assure definitions
definitions
Increase Customer
Satisfaction Perceive
The V alue in
Relationship Stimulate High Risk Perform are striving for?) business benefit
Satisfthrough
action The Relationship Policy Rolea Furthering
Clear Public
(Loyalty) FundsStimulate High Risk
f or Agri-Ventures Policy Role
Govrnmnts Furthering
Agricultural
(Loyalty)
Superior through
Execution Funds for
Beyond Agri-Vent
FCCs Publicures Govrnmnt s Agricultural
Superior Execution Cross-sell the Policy Framework
Shift Customers Cross-sell
Product Linethe
Beyond
Policy FCCs
Risk Prof ile Public
via VC Grow Awareness
Grow
Policy Framework Customer C1.1
to Shift
Best Customers Policy Risk Profile via VC of FCCAwareness
Brand Meet
Meet client
client C2.1

Performance Measures
Channel Product Line Relationships Access trusted
trusted
to Best Channel Relationships of All
With FCC Brand
Publics (What are the expectations and timely
timely data
C1.2
Offer Targeted With All Publics expectations of Identify
Identify and at all
all levels
Offer (includes
Products Targeted our customers? resolve
resolve key
Products
pricing)(includes Develop New issues
Service/Process pricing) Develop New
Products & Introduce What is the end Effectively
Effectively Flexibility
Flexibility to
C2.2

Products & Introduce

Products for communicate
communicate between
between support future
Services Products for result they are PXO & business on all
Implement Services Additional changes
changes

ProgramStrategies
Execution Measures
Additional Proactively Manage looking for?) pertinent issues
Delivery & Objectives
Optimize Productivity Implement Segments issues C1.3
Retent ion Segments Proactively
Industry and Manage
Media
OptimizeCont
Through Productivit
inuous y Retention
Planning Provide Rapid Develop and Industry and/ Media
Through Continuous Provide
ResponseRapid Relations
Process Improvement, Planning Develop and
Implement a Relations /
Communications
Process&Improvement,
(Channels Partnering) Response Prioritize Implement
Prioritizefor
Opportunities Part nering / a Communications P1.2
(Channels & Partnering) Implement Partnering
Process/
Implement
CRM
Opportunities
Innovative for Alliance
Alliance Process
Inte rnal Align program
activities with
with Manage Scope
Scope
Sustain
Sustain
consistent
Maintain P2.2
Innovative continuous Current
CRM Solutions Process business
business objectives and
and change P2.1 Strategic Measure Target Owner
Processes
Processes Solut ions Give Back to the requirements
definition and
high quality
quality of
improvement of data
quality,
Program Execution Performance
Improve Risk Alliances & Implement COE Give Backin to
Communities the
Which (To satisfy our P1.1
quality, process and
Improve Risk Alliances
Part nering & Enhance Adjust Processes Implement COE Communities data results
Management Enhance Adjust Processes Program Process we OperateinWhich customers, at what Monitor
Monitor Strategic Themes:
(M1.1) EVA for har monisation/integration activities of OoT
Management
Practices Partnering Cust omer to Foster Program Process we Operate
Community program by managing all as pects of the program

INTO PROJECTS THAT

Operational expense budget on Target 165M FY00 Yellow
Practices Customer
Segmentation Minimize to Foster
Discussion and Community Management execution
execution Perspecti ves:
Segmentat ion Minimize
Problems Discussion Investment execution P2.3
to successfully deliver global data (M1.2) % o f customised solutions vs. global solutions
New Thinkingand Investment process must we P1.3
Problems New Thinking P1.5
P2.4 Change control
control management (C1.1) % o f projects co mpleted on-time
excel?) Initiate Continuously
Continuously and
and resolution
resolution % o f co mpleted projects meeting 90%+ of functionality expectations
Plan Program M1.1
People Capture and Deepen
Identify External
Identify
Sources E of
xternal
Program Mission
monitor program
program
results
results
Deliver
Deliver (C1.2) % o f solutions designed to be scalable for 5x capacity
Build Risk Identify Profitable Capture andSector
Deepen Create Centers Understand Who P1.4
(What are the desired program on-time, % o f solutions with capacity & design signoff by business
Build Risk Identify Channels,
Customers, P rofitable Agricultural Sources
Cutting Edgeof ofCreate Centers
Expertise for toUnderstand
Talk to andWho M1.2 on-budget
on-budget and on-
KM Management Agricultural
Expert Sector
ise (identif y Celebrate Cutting Edge Manage
Manage risk
risk % o f solutions with unit-cost savings when additional users are brought
Management
Expertise Customers,
Products. Channels,
(Understand Celebrate
Small Agri-Expertise ofCreative
Expertise for to Talk
What t otSay
o and Understand strategic outcomes we strategy
strategy
Expertise
the needs)(identify Agri-Expertise Understand O1.1 to
to assure
assure onto platform
Products.Profitablity)
(Understand Creative What to Say Community Organisational Share
Share knowledge

Program Plan
Expertise Customer the needs) Small
Innovations Solutions are striving for?) business benefit (C1.3) # of C&W network outages (testing: meshed)
Enhance port folio Customer Profit ablity) Innovations Solutions Community
Needs and leverage best
Enhance
data infoportfolio Needs Enablers O1.2 practices
practices Maintain O2.1
# of occurrences o f single-point-of- failure
dat ainfo
management (To excel at our Fully define PMO institutional
institutional repository % o f SLAs guaranteeing end-to-end network perfor mance, including
management
capabilities Enhance I.T. for Mine processes, how must organisation
organisation Customer of common global Meet
Meet client
C1.1 responsibility for 3rd party partner per for mance
capabilities EnhanceSpeed,
Improved I.T. for Mine
Strategic Build Partner / Build Industry & language (C1.4) Customer service results on proactive service query
IT Integrate Solutions Build Industry & Develop our organisation O1.3 O2.2
(What are the C1.2 expectations
Improved
Timeliness, Speed, Strategic
Cust omer Build Systems
Alliance Partner / Competitor Develop Identify
Identify internal and # of solution teams that deliver monthly update to client
Integratevia
Offerings Solutions
Best Competitor Community external skilled Develop standards
expectations of IdentifyO2.3
and
Build Risk Timeliness,
Integration, Customer
Information Alliance Systems
Infrastructure & Knowledge Base Community learn and improve?) in cooperation with and (P 1.1) Products implemented across multiple geog., with minor modification 75% - 10/31/00 Yellow
Build Risk Offerings via Best
Practices Knowledge Base Listening Posts implementation
implementation with resolve key
key
Management Integration,
Reliability, and Cost Information Infrastructure
Applications & Practices
WorkBench &Listening Posts
K nowledge resources the Standards our customers?
Group
Group Create teamissues
of # of functional elements (of products) that conform to standards 100% - 6/30/02 Yellow
Management
Database Reliability, and Cost Applications issues
Implement Customer WorkBench & Base
Knowledge What is the end Effect ively
Effectively
S am p le W o rk P la n fo r IR T P ro jec t a t H P
Database O1.4 internal
internal and external (P 1.2) # of maintenance tasks perfor med ac ross multiple geographies 12 - 12/31/00 Yellow
Implement Customer
Relationship Base result they are skilled operational communicate
communicate between
between P roduct towers covered by global service centres 3/5 by 12/31/00 Yellow
Fully
Fully define PMO
PMO PXO & business on all
Relationship
Management? process
process resources
resources # of initial 35 products developed by cross-geographic teams 12 by 10/31/00 Green
Develop Strong Management? Define looking for?) pertinent
pert inent issues C1.3
Develop Strong Lead Integrated Attract & Retain Develop Dynamic Develop & Groom (P 1.3) P roject milestones met 80% - 12/31/00 Yellow
Leadership Financial Thinking Skills Define
Innovation Attract & Retain
Agri-Content Develop Dynamic A p r il M ay June J u ly
Financial Thinking
in Staff (KM & LD)Skills Lead Integrated
Sales/Financial Innovation Leadership of Cross-Functional FCCDevelop & Groom
Ambassador(s) P roject Budgets met 60% - 12/31/00 Yellow
Sales/Financial Strategy Agri-Content
Expert ise Leadership of
Agri-Finance Cross-Functional
Solutions Teams FCC Ambassador(s) (P 1.4) # of interfaces is less than number of customers/channel partners

DELIVER RESULTS
in Staff (KM & LD) PD& I Teams by 12/31/00 Yellow
Successful Strategy Expertise Agri-Finance Solutions Teams
Successful PD&I Teams % CR B approved projects complying with IT/Engr. Global Roadmap 30% - 12/31/00 Yellow
Strategy
Strategy
Execution
Enhance Bench Strength & Succession Planning Inte rnal Align program
program
activities with Manage Scope
P1.2

Scope 60% - 12/31/01 1

Yellow 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
with
Execution D l L d hi Skill t All L l fM t and change % o f C RB approved OoT project through Standards review process 15% - 12/31/00 Yellow
Process business
business objectives
objectives
requirements
requirement s 80% - 12/21/01 Yellow IR T L ev e l B S C
(To satisfy our P1.1 (P 1.5) % o f 35 products developed using collaborative tools & technology (using 100% - 10/31/00 Yellow
customers, at what Monitor
Monitor existing tools)
program (O1.1) Is methodology defined, and in-place? (Y/N)
O P T IO N # 1 Y - 12/31/00 Green In fra stru c tu re B S C # 1
Management execut ion
execution Y- 12/31/00 Yellow
Are case tools/development tools available? (Y/N)
process must we P1.3
(O1.2) % value o f OoT purchases made o ff pre ferred-vendor list R
R e n a is s a- 3/31/01
35% n ce Yellow In fra stru c tu re B S C # 2
P1.5
excel?) Initiate
Initiat e
Program Plan Program d70%
L eeaa d in g- 3/31/02
a ll Yellow
Program 100% - 12/31/00
P1.4 (O1.3) # of products that can accept a 4x volume increase over sales forecastSwithin
cc o r e c a r d s
Yellow In fra stru c tu re B S C # 3
90 days (i.e., 90 days to ramp-up for change) 30 days - 12/31/01 Yellow
(O1.4) eGo Milestones met (Y/N) Yes - always Green In fra stru c tu re B S C # 4
Desktop video rolled out to level 3 staff 80% - 12/31/00 Yellow
Organisational O1.1 Share knowledge Role definition provided within 10 days of new assignment 100% 100% always Yellow
and leverage
leverage best In fra stru c tu re B S C # 5 P ro to ty p e &
Enablers O1.2 practices
practices
Rollout Global Messaging System 250 - 7/31/00 Green
D o c u m e n t.
100% - 2/28/01
(To excel at our Fully define
definePMO
Green

processes, how must organisat ion

organisation
% o f attach ments on emails O P T IO N # 2 50% - 12/31/00 Yellow
% o f level 2 & 3 positions filled on permanent basis 90% always Yellow
our organisation IR T L ev e l B S C
(O1.5) Representation on strategic supplier advisory boards 60% by 3/31/01 Yellow
learn and improve?) Limitations for technologies formally documented for 35 products -
R
R e n a is s a n c e
O1.3 Standard - an n dd100%
H P- 12/31/00 Yellow In fra stru c tu re B S C # 1
Identify
Identify internal and
and O1.4
external skilled Non standard - L e a 50%
d in g
in-12/31/00 Yellow
In fra stru c tu re B S C # 2
implementation
resources Fully
Fully define PMO
(O1.6) # of project plans targeting legacy decommissioning roadmap S cc o r eTBD
cards Yellow

process % o f systems/applic. covered by system deco mmissioning roadmap 100% - 12/31/00 Red
In fra stru c tu re B S C # 3
Page 1
In fra stru c tu re B S C # 4

In fra stru c tu re B S C # 5 P ro to ty p e &

R e n a issa n c e
L eads B S C D o c u m e n t.

H P In te rn a l
T e a m L ea d s K ic k o ff M e e tin g M a jo r C h e c k p o in t
BSC
1 9 99 R ena issan ce W o rld w id e, Inc. - A ll righ ts r eserv ed . 3