IPMT Guidance v1

Business Transformation and IT
IPMT Operations and Tiers Management System
August 4th , 2009

Gem Mitchell / Tom Deegan / Frank Benintende
© Copyright IBM Corporation 2009

Objectives of this Presentation
 Audience
– IPMT coordinators
– Initiative leads; solution leads
– SPMs, asset owners
– Deployed Portfolio Managers
 At the completion of this material you will
– Recognize the characteristics of a well-defined, well-managed Initiative
– Understand how to use Initiative tiers in Initiative governance
– Build competency to govern by Initiative and to ensure Initiatives meet their business goals
• Oversee Initiative and Solution health using Initiative Topsheet and health indicators
• Monitor Initiative progress in delivering business value
• Follow through on accountability for realizing intended value from Initiative investments
– Ensure clear understanding of decision-making structure, authorities and accountabilities
– Use BTMT and Cognos reporting capabilities to communicate status with management
– Understand IPMT compliance requirements
– Understand the 2010 Fall Plan process and timeline
Page 2 © 2005 IBM Corporation

IPMT Training Topics
 BOLD Organization Overview
 Initiative Tiers and the IPMT
 Managing by Initiative
 Tiers Management System and Operating Principles
 Roles related to the IPMT
 The IPMT Review

– Health Indicators
– Using Cognos with BTMT
 Compliance requirements
 Value of Transformation by Initiative
 Fall Plan Process and Calendar

– Financial Business Intelligence
– 2010 Reporting
 Appendix- additional information

Tiers in Initiative Management

Pre BOLD Post BOLD
Tier 1 EIT CIO OT

Tiers are used to align management oversight and
(selected Tier Highest Strategic Highest Strategic
accountability with the relative strategic importance of 2s) Importance, Importance, business
initiatives. The BOLD Consolidation provided the business value and value and investment
investment
opportunity to streamline tiers in Initiative Management
in BTMS
Tier 2 PTE IPMT TE/Run IPMT
•BOLD Tiers Simplification from four to three, is being Cross-process, Common consistent
deployed throughout the CIO cross-enterprise, process based
strategic
•Goals
–More effective management oversight and Tier 3 BTE IPMT PPR*
accountability
–Greater financial transparency and improved Business Unit Process based,
specific integrated worldwide
portfolio management view, consolidated
–Alignment of Tiers and management system funding through the
Tier 4 Geo specific
(reviews) with financial reporting requirements management Transformation or Run
Eliminated as system; tactical executive
an option for
2010 Funding
*For organizations with large portfolio’s of initiatives, the role of the Program Portfolio Manager is being increasingly used to provide oversight to
sets of related (EPF) initiatives. For organizations with smaller portfolios, the IPMT will provide that role.

We have had the opportunity to simplify BTMS Tiers and Initiative Management as a
result of the consolidated organization
EPO Transformation Exec GISP
EPF Level 1 Processes EPO
1.0 Idea to Market (Develop) Alan Ganek
Rod Adkins
Colleen Arnold
Liz Smith
2.0 Market to Opportunity Buell Duncan
3.0 Opportunity to Order Kathy Colucci*

GISP Process Name
4.0 Order to Cash (Customer Fulfilment) Barbara Martin*
7.0 Manage Client Relationship Dan Bennewitz Client Facing & Order Opportunity to Order Kathy Colucci*
Management Processes
8.0 Manage Sales & Channels Kathy Butler
S. Calta
Order to Cash Barbara
Martin*
4.0 Order to Cash (Plan to Deliver) Barbara Martin
5.0 Support Paul Loftus Finance, Supply Chain &

Technical Support Hardware Product Mark Dunham
9.0 Procure to Pay John Paterson Processes Management
P. Scorza Transformation
11.0 Manage Financial Res Carlos Passi
Incentives Karen Salinaro
6.0 Develop Strategy /Execute Mike Giersch

Global Workforce and Web
10.0 Manage Human Resources Joe Severi
Process Enablement Services Labor Joanne Olsen
12.0 Manage BT/IT Susan Watson C. Sormilic Management
Transformation
13.0 Manage Business Support Pat Toole**
IBM Global Financing • GISP and EPO

Joe Kaschak
14.0 IBM Global Financing Mark Andrews • ** Partial Ownership
5 © Copyright IBM Corporation 2009 Updated 7/30

All IPMTs in the new organization will CIO

implement the new Tiers structure P. Toole
Enterprise
Integration Finance
S. Watson B. Gibson
Business
HR
Operations
B. Greiner H. Babcock
Blue Harmony Communication

M. Sader
J. Horan
Run Transform Innovation Business Units Geographies
Finance, Incentives, GBS Integration

Supply Chain, & Tech
Application & Spt Processes Innovation T. Lostaglio BT/IT Geography
Infrastructure P. Scorza Programs Integration
Service F.
Management Legoues GTS/IGF Integration F. Capstick
Client Facing &
L. Gordon Order Management S.
Processes McMillan
S. Calta, Jr.
Global Workforce-Web SWG Integration

Process Enablement
L. Potter Geos
C. Sormilic
IBM Global
ITD Financing AS Enterprise Process Owners
C. Sweeney Joe Kaschak P. Howard By Process
Page 6 © Copyright IBM Corporation 2009 Updated

© 2005 IBM 4/16
Corporation
Tiers in Initiative Management- Before/After BOLD Consolidation

Pre BOLD Post BOLD
Tier 1 EIT CIO OT

(selected Tier Highest Strategic Importance, Highest Strategic Importance,
2s) business value and business value and investment
investment
Tier 2 PTE IPMT TE/Run IPMT

Cross-process, cross- Common consistent process based
enterprise, strategic
Tier 3 BTE IPMT PPR*

Business Unit specific Process based, integrated
worldwide view, consolidated
funding through the Transformation
Tier 4 Geo specific management or Run executive
Eliminated as an option system; tactical
for 2010 Funding
Page *For
7 organizations with large portfolio’s of initiatives, the role of the Program Portfolio Manager is being increasingly used to provide oversight to
sets of related (EPF) initiatives. For organizations with smaller portfolios, the IPMT will provide that role.
Page
Page
7 7 © 2005 IBM Corporation
© Copyright IBM Corporation 2009 © 2005 IBM Corporation
Tiers have been redesigned to leverage management system involvement

and align financial reporting
Tier Financial Highest level of Review Business Case requirement Cross-TE/Run Financial analysis
threshold ($ Reporting prioritization DB
total investment)*
1 >$5M CIO OT EISC & OT Full business case 100% BTAPEX
2 <$5M IPMT Self-assessment Cost / Benefit analysis 100% via streamlined Separate variant of
against EISC methodology BTAPEX
and criteria
>$0.5M
3 <$0.5M PPR Self-assessment Prioritization only Bottom 10% only none

IPMT and Initiative Management Tiers and Operating Principles

Tier Summary Initiative Highest Level Management System Reporting
Tier Selection of Expectations Reqts Deliverables and
Guidelines Reporting Reviews Required
Tier 1 Highest Investment generally $5M or IPMT  Led by the initiative lead  Detailed reviews by CIO OT, EI SC and Fall Plan Topsheet
greater total investment over 5 year time Additionally  Performance reviews by CIO OT IPMT with updates to the OT
horizon EI SC and CIO OT  Supports OT / SLT Strategic priorities  Status of initiative health: business value, Full Business Case
Periodic Reviews  Significant impact to the company/ Sr VP would cost, schedule, risk, process, architecture,
say ‘yes’ we need to address adoption/utilization, and standards.
Self-evaluation against EI SC
 Warrants some protection from business as  Validation of direction based on business Criteria
usual budget challenges environment dynamics
 Must be advocated by multiple EPO Team  Detailed Business Case required in
EI SC transformation review
members BT/APEX
 Business Direction from CIO and EPO BTMT Initiative Record
 Businesses share the benefits
 Must leverage SOA+, BPM, VR Cognos reporting
Tier 2 Less than $5M and great than $500K IPMT  Led by initiative lead  Detailed reviews by IPMT Fall Plan Topsheet
 May assign initiative lead or Init level solution  Status of initiative health: business value,
lead (determined by size and complexity) cost, schedule, risk, process, architecture, Cost/Benefit Analysis
 Owned by (TE) adoption/utilization, and standards $4.9M-$500K
 Supports an enterprise priority at the TE level  Validation of direction based on business
and EPO specific priorities environment dynamics
Self-evaluation against EI SC
 Degree of rigor and phase-end reviews Criteria
determined by the initiative lead and unit
architecture team
BTMT Initiative Record
 Businesses share the benefit
 Significant impact to the company
Cognos reporting
 Must leverage SOA+, BPM, VR
Tier 3  Short term initiatives- Led by initiative leads  Quality, Cost, schedule
Under $500K total investment Program Portfolio Manager assigned by PPMs
with Finance/Ops  Project coordination rather than project Below $500K, budget process
management is sufficient
Portfolio Review with IPMT  Outcomes are short term strategic or tactical
as needed upgrades to deployed portfolio BTMT Initiative Record
 Program Portfolio Manager ensures alignment
to Tier 1&2 objectives

The basic process remains the same, where the IPMT, PPM and Initiative and Solution
Leads must work together to deliver transformation results
Initiative Management
IPMT Assign Select Initiatives Monitor value

Assign Oversee Initiative
Assign Lead
Initiative Release Funding Oversee Initiative realized
Initiative Lead
Initiative Lead
PPM
Manage Initiative
Complete Implement Initiative
Initiative Lead Plan Measure and
Initiative
(IL) Implementation Close
Definition Oversee projects
PDTL Manage projects E2E

Development
Solution Lead
Solution
(PDTL or SPM) SPM

Concept Plan Develop Qualify Rollout SPM
Concept Plan Develop Qualify Rollout
Concept Plan Develop Qualify Rollout SPM
Concept Plan Develop Qualify Rollout
Business Transformation Management Tool (BTMT)
Page
Page
10 10 © 2005 IBM Corporation
© Copyright IBM Corporation 2009 © 2005 IBM Corporation
IPMTs focus on Initiatives and their business results, providing strategic leadership for
the portfolio and leaving the tactical decision-making on projects to the PPMs and
Initiative leads
Role of the IPMT
Portfolio Initiative Project
• Use Program Portfolio Managers as required by the size and
Business
scope of the IPMT to provide business and technical IPMT
Results
Oversight
integration across a set of similar initiatives and other duties Business
IL Input Oversight
as assigned Results
Business
• Input to strategic business transformation planning SL or SPM Input
Results
• Review and approve Transformation Roadmap

• Assign ILs to participate in Initiative Definitions with EPOs
• When funded, authorize IL to begin Initiative execution Who’s Accountable
• Oversee individual Initiatives - progress, health, issues, risks, IPMT  Overall performance of strategic BT
dependencies, value accrual investments
– Review Initiatives on agreed schedule and provide feedback to IIMs  Optimal use of BT resources
– Assist in resolving issues, conflicts, risks, dependencies  Transformation Roadmap meeting strategic
– Take corrective action, spot duplication or unnecessary spending needs
 Effective and efficient support of the business
– Adapt to changes in financial or business climate
process by the deployed portfolio
– Monitor business results achieved
• Ensure investments achieve promised business results and PPM and/or  Overall performance of assigned Initiative
investments
stay in strategy / goal alignment Initiative Lead
(IL)  Optimal use of Initiative resources
• Leverage best practices  Initiative execution addressing strategic
• Monitor operational spending on deployed portfolio for capability and goals
effectiveness and strategic alignment
Solution Lead  Delivering on project commitments
• Communicate status of transformation efforts or SPM)  Quality and compliance to standards

Roles involved in IPMT Operations

Role Summary of Responsibilities Competency Required
IPMT Chair Describe and carry-out mission, scope, objectives of IPMT in support of IBM EPO strategy Use of Initiative tiering
Establish membership criteria, form/restructure IPMT BTMS compliance requirements
Determine IPMT operating model, management system
Chair sessions, ensure appropriate representation and participation, actively lead decision-
making
Ensure compliance with BTMS
IPMT Members Maintain focus on getting the most value from investments, balance between optimizing EPO Elements of a well-defined / managed Initiative
and enterprise objectives, level of risk
Measuring performance / realized value & adjusting when opportunities
Contribute to decisions on Initiative funding & investment priorities representing own arise or business conditions change
organization’s stakeholders
Initiative Topsheet and Health Indicators
Monitor Initiative health, recommend or take action
Patterns/causes of value erosion, what to look for to pre-empt trouble
Review status of Initiatives and share within own organization
Influence Initiative outcome
Program Provides recommendations and advice to the TE regarding strategy, initiative management
and application portfolio management for their assigned initiatives/programs
Elements of a well-defined / managed Initiative
Measuring performance / realized value & adjusting when opportunities
Portfolio Provides Portfolio oversight, integration and prioritization for a subset/collection of related arise or business conditions change
Manager initiatives/programs
Patterns/causes of value erosion, what to look for to pre-empt trouble
Specific knowledge of EPO areas they support
IPMT Support IPMT operations (meeting schedule/agenda, action item tracking, member pre-briefs, Initiative tiering
minutes)
Coordinator Maintain IPMT member roster, identify coverage issues, track attendance
BTMS compliance requirements
Coordinate IPMT communications, capture/report on decisions/outcomes
Support transformation planning process
Initiative Leads Lead Initiative definition and review with IPMT stakeholders Executive communications
Once funded, establish cadence of Initiative reviews with IPMT Initiative Topsheet and Health Indicators
(IL)
Review Initiative with IPMT as required Initiative Definition and Management processes
Accountable for tracking and demonstrating Initiative value attainment and adoption Solution Development phases and BTMS compliance requirements
Ensure projects are meeting Initiative objectives

Health indicators, give visibility into the overall New BTMT
condition of an Initiative. Initiative Top
Sheet
 Health Indicators
– Dynamically reflect the state of an Initiative
– Represent critical factors affecting success
– Common between an Initiative and its associated solutions
– Consistent across all Initiatives regardless of tier
– Specific evaluation criteria for an Initiative and for each phase
of a project
 Initiative Health Scorecard
– Eight health indicators plus an overall health indicator
– Available on the BTMT Initiative topsheet
– Each indicator defaults to worst case of any associated project
– Initiative Lead can override default
– Health of associated solutions also available on topsheet
 Using Health Indicators
– Aid in assessing the well-being of an Initiative
– Provide better “headlights” for troubled projects
– Early warning allows corrective action to be taken in timely fashion
R Y G Initiative Health Scorecard R Y G

Criteria
available in Risk Schedule Cost Value Process Adoption/ Architecture Standards Overall
backup Utilization

Cognos Reporting
 Objectives:
– Showcase IBM's Cognos Business Intelligence
– Use BTMT / Cognos Automated Reporting to:
• Effectively reduce the overhead in IPMT preparation and reviews
• Support CIO OT and EODT reporting requirements
– Automation of two reports for BTMT / IPMT Reporting: Initiative Top Sheet & Initiative Detail
– Identify additional requirements for future releases
 Benefits:
– Reduce the dependency of manually creating Symphony Charts at the IPMT level
– Reports are generated “On Demand”
– Used for lower level project reviews – detailed report
• Fully Encapsulated HTML Posted in Standard IPMT Teamroom
– Batch Job for easy of consolidation
– Allows for swift movement through multiple Initiative Top Sheets
– Allows for backup if Cognos online reports became unavailable
– Allows for point in time stamped reports (e.g. What was shown to IPMT vs what the
report indicates now)
– Enforces the use of BTMT as the trusted source, the timely updating of BTMT data, and
compliance to the Corporate Instruction 129
– Proactively drove the source system (BTMT) data clean up
– Consistent format across CIO

•B T M T – C o g n o s A u t o m a t e d R e p o r t in g -
 B T M T F i e l d s a r e t h e s o u r c e f o r t h e r o l l u p r e p o r t i n g
- F i e ld s t h a t d r iv e i n c lu s i o n / e x c lu s io n o f d a t a w it h in t h e r e p o r t
 E n s u r e t h a t B T M T In i t i a t i v e d a t a i s r e a d y f o r u s e b y
- F r e e f o r m t e x t d e s C c rl ei p at i or n as nm d u s C t bo e n c i s ed uae n t od s A p ac c c e u l ir m a i tt ae tio n s .
- F o r th e r e p o r t to bR e e pg eo nr t e tar oa s tCek IdeO y t h i ne i t i a t i v e f la g s h o u ld b e s e t to y e s
u p to in itia tiv e in d ic a te d in o r d e r to b e s e e n in t h e in itia tiv e d e ta il r
- I f a n y o f y o u r h e a lt h i n d i c a t o r s a r e in a n o n - G r e e n S ta tu s th e n y o
o r R is k id e n t if ie d a n d t h e f la g s e t t o “ R e p o r t to M g m t ” - C u r r e n t ly
- T o g e n e r a t e th e T O P s h e e t I n v e s tm e n t a n d B e n e f it lin e ite m s in t
r e p o r t y o u m u s t h a v e t h e f ir s t M e tr ic a s s o c ia te d w ith th e in itia tiv e
s e c o n d M e tr ic a s s o c ia te d w ith th e in i tia ti v e s p e c i f i c a lly la b e le d 'B
th e S Q L a n d C o g n o s s o lu t i o n to p a r s e th e d a ta a n d c o n f o r m to q
 A c o u p l e o f O p e r a t io n a l C o n s id e r a t io n s m u s t b e k e
- K e e p in m in d th a t u p d a te s to th e D B 2 t r a n s a c t i o n t a b le s w i ll a p p e
a r e u s in g s t a g i n g t a b le s t o s h i e ld t h e B T M T tr a n s a c tio n t a b le s f o
- A s th is is a p i lo t f o r t h e I P M T r e p o r tin g , th e r e w i ll b e a r e q u ir e m e n
to s u p p o r t th e O T . T h e in te n t is h o w e v e r to le v e r a g e t h e T o p S h e
- F o r m a ttin g T ip - " M o n t h ly P r o g r e s s R e p o r t" , " A c c o m p li s h m e n t s
N e x t 3 0 D a y s " y o u c a n u s e a n * to f o r c e a c a r r ia g e r e t u r n f o r lis t

C o g n o s T o p S h e e t e x a m p le
T E A s s i g n m e n t v i
B T M T R o l e s
I n i t i a t i v e L e a d
I n i t i a t i v e D e s c r Li p a t ti oe sn t S t a t u s a n d C o m m e In n t vs e s t m e n t B e n e f i t s f i r s t t
C o n f i d e n t i a l p a g e
B e f o r e U p d a t i n g C u r r e n t S t a t u s M u s t
m o v e c u r r e n t s t a t u s t o P r e v i o u s i n
B T M T C o m m i t m e n t s i n B T M T C o u
o r S o l u t i o n L e v e l
A c c o m p l i s h m e n t s T h i s M o n t h i n
B T M T
* C a u s e s C a r r i a g e R e t u r n
I s s u e s R i s k s a n d D e p e n d e n c i e s i n B T M T C o u l d b e a t
I n i t i a t i v e o r S o l u t i o n L e v e l

Compliance will check for the following to ensure that a Business Unit and their IPMT
are following Initiative Management
1.1 Are there no active solutions remaining in the BTMT Fastpath Placeholder Initiative?
1.2 Is a review of the tier 1 and 2 initiatives conducted by the IPMT in a regular cadence at
least 3 times per year?
For health indicators with a status other than green, does the reviewing body require and approve corrective
action plans during the review?
Is the status of previously assigned corrective action items reviewed at each meeting?

Transformation by Initiative increases the opportunity of transformation success, allows for greater
synergy and alignment with business strategy, and enables higher returns
 Maximizing potential value
– Easier to stay on course and manage to the end result with an overall view of the Initiative
– Better visibility into progress on commitments and accrued value of an Initiative
– Shift in executive dialog from cost to value and closing the loop
– Change in emphasis from project management to realizing full value potential
– Focus on accurately describing, anticipating and measuring value during/post deployment
– Informed trade-offs to maximize value when business conditions change or opportunities arise
– Single focal point (PPM, IL) clearly accountable for delivering results
 Faster deployment, earlier payback
– Flexibility for Initiative leadership to customize plans, manage risk based on Initiative characteristics
– Removal of constraints on project plans and workload associated with DCP reviews
– Streamlined solution development and coordination at Initiative level
 Reduced cost
– Less overhead, less overlap, less rework, more effective resource usage
– Elimination of non-strategic projects by associating all project investments to an Initiative
 Minimized upstream and downstream impact of changes, project delays
– Tighter control of dependencies between related projects
– Improved collaboration and integration between related projects Goals
 Faster problem resolution with better “headlights”  Higher and more
– Better visibility to Initiative /project health with early warning problem detection & consistent indicators
– Common standard health indicators including new focus areas such as process, adoption/utilization
rapid return on
 Better integration across related solutions
investments
– End-to-end, enterprise view  Greater synergy and
– Leadership continuity from definition to results and consist management across related projects
– More cohesive schedules, deliverables
business strategy
– Single voice to stakeholders for expectation management alignment
– Enhanced collaboration between project teams
 Better odds of
success

2010 Fall Plan Calendar

1. Training for the IPMT coordinator

2. Roles/Responsibilities of an IPMT
3. Characteristics of a good Initiative
4. Initiative and solution relationships
5. Overview of IPMT reviews, Team, and Initiative Lead R&R during
Initiative Management
6. BTMT Initiative Topsheet
7. Initiative Health Indicator criteria
© 2005 IBM Corporation

Program Portfolio Manager/Executive

 Purpose
– Provides recommendations and advice to the TE regarding strategy, initiative management and application portfolio
management for their assigned initiatives/programs
– Provides Portfolio oversight, integration and prioritization for a subset/collection of related initiatives/programs
 Roles and Responsibilities
– Prioritizing and reprioritizing initiative requirements for the subset/collection of related initiatives and programs
within the TE area
• Provide input to the TE on the consolidation of EPO, BU and Geo requirements for their Initiatives/Programs
• Identify cross-EPO dependencies and gaps related to initiative portfolio for EPOs assigned
• Identify cross-TE dependencies and gaps needed to achieve overall BT/IT objectives within Portfolio area
• Evaluate & recommend initiative priorities to achieve TE/EPO strategy and integrated roadmap
• Develop integrated view of business cases for the TE for EPO areas assigned and provide input to overall IT strategy
– Manage BT/IT transformations for the Initiatives assigned
• Assign Initiative Leads
• Conduct timely Program Portfolio Reviews to address the following
– Review and take corrective action to address individual initiatives/programs progress, status, compliance
to standards, including results of architecture review council meetings and issues
– Ensure individual initiatives/programs progress against approved business cases, identify gaps, take
corrective actions, and track to closure, drive value realization and identify / address barriers
– Outlook and budget matching for IT spend
– Monitor and optimize initiative portfolio performance for Initiative Portfolio
– Financial and BTMT data integrity
• Communicate initiatives/programs progress and status to the IPMT and individual member constituents (Geos/BUIEs)
• TE/Run maintains Fastpath budget for legal/mandatory items in the Geos
– Establish & maintain TE/EPO service model for the assets in their portfolio
• Define, measure and track customer sat /TE performance metrics/BC-value attainment for EPO areas assigned
• Approve ongoing maintenance and support for the assets associated with their area; ensure Non-strategic spend
process is followed; Partner with Run organization regarding ITSM
• Manage compliance to ASCA, Corporate Stds and Instructions

Initiative reviews enable stakeholders to gain greater visibility into an Initiative as a
whole, its health and progress toward objectives, and optimize investment performance.
What to look for
 Review Initiative progress and what has changed since the last review
– What has deployed? Which projects have been launched? advanced a phase?
– What projects are on the critical path? Has this changed? Have all solutions deployed?
 Assess conditions using Initiative Health Indicators
Or
– If an indicator is red/yellow, what’s the impact on promised value within the expected timeframe? Portfolio
g
an
on
– What actions are being taken on red/yellow indicators to get to green?
rm s
iza
ati
– Are there projects on the critical path that are red/yellow? What is plan to green?
sfo ces
ti
– What actions by the IPMT are recommended / warranted on issues, dependencies, risks?
Projects
on
Tr Pro
– Are there recognizable patterns that result in value erosion, cost increases, delays? How can you anticipate
/
/ plan for them?
Cu
an
 Look out for Initiative challenges
ltu
– Stakeholders involvement in change management
re
– Understated requirements or scope creep Initiatives
– Investment growth with no increase in benefits
– Conflicting stakeholder priorities or objectives
– Cultural transformation, resistance to change Information Technology
– Linkage between process transformation and IT
 Examine Initiative finances Multiple Perspectives of IPMT Oversight
– What is overall budget, funding allocated to projects, actual vs. planned expenses, forecast?
– At what point is the Initiative business case exposed?
– Should we pull the plug or downsize the Initiative? Sample IPMT Agenda
– What is our exit strategy? How should we redirect Initiative funding?
– Are business conditions changing? How can we focus spending on the right priorities? Administrative Topics
 Focus on the Initiative bottom line (bus value, metrics, strategy) Initiative Review
– What are key business drivers and value needed / derived from the Initiative?
– Are we measuring business value against identified targets? Initiative Recap/Status
– Are performance metrics in line with expectations? Are they trending up/down? Health Scorecard
– Are we getting acceptable value from the investment – can we get more?
– Are we optimizing performance of an EPO vs. the enterprise at large? Issues, Risks, Dependencies
– What are the long-term prospects for the Initiative? Does it still align with business strategy?
Financial Summary
– Are we ready to close the Initiative? Reset the cadence?
 How can we leverage success/experience of one project / Initiative into the next? Value Metrics
Action Items

The IPMT is accountable for the overall performance of strategic BT investments within the portfolio:
process changes, culture changes, user satisfaction, value realization
Integrated Portfolio Management Team (IPMT)

The IPMT: The focus of IPMTs will be directed to initiatives and their collective business results providing an enhanced
strategic leadership role for its portfolio and leaving much of the tactical decision-making on solution projects to the IL
leading the Initiative
Responsibilities Structure & Membership

• Input to strategic business transformation planning • Scoped to specific portfolio of BT investments and
deployed assets aligning to a key corporate strategy or
• Review and approve Transformation roadmap
enterprise process
• Assign IIMs to undertake Initiative Definition
• Chaired by Transformation or Run Executive
• Review, select and approve Initiative Definitions
• Restricted to executives with major stake in
• When funded, authorize IIM to begin Initiative execution transformation plus AS and Finance
• Oversee individual Initiatives – progress, health, issues, risks, dependencies, • Required when a strategic capability or portfolio is
value realized
enterprise-wide or fundamentally cross-organizational
• Review Initiatives on agreed schedule and provide feedback to IIMs and funding is shared
• Assist in resolving issues, conflicts, risks, dependencies • Optional when capabilities and portfolio primarily
• Take corrective action, spot duplication or unnecessary spending contained within a single BU and transformation is self-
• Adapt to changes I financial or business climate funded. The PPM performs IPMT responsibilities
where no IPMT exists
• Monitor business results achieved
• Ensure investments achieve promised business results and stay in
strategy/goal alignment
• Leverage best practices and encourage innovation
• Monitor operational spending on deployed portfolio for effectiveness and
strategic spending

The IPMT must be involved end to end
Review Review Review

What are we doing? How are we doing How did we do?
IPMT commits and funds Periodic Initiative reviews
the Initiative that most on Initiative health and IPMT monitors value
strongly support strategy progress toward Initiative attainment
and will deliver the most commitment
results to the business
Initiative Initiative Management Value Realization

Definition
Initiative Lead Initiative Lead:

• Execute and control Initiative Lead • Report on value
• Ensure all dependencies, issues, risks resolved
Work attainment as projects
• Gain commitment and • Coordinate all project deliverables and dependencies
deploy.
• Ensure all metrics and baselines are in place to track value
Funding from IPMT • Ensure corrective
• Ensure process and organization changes are planned / executed
action Is taken if needed
• Report Initiative health (and project health) and status to IPMT • Monitor adoption
• Make recommendations on scope, schedule, cost changes based on
business needs
Team Members Team Members

Team Members
• Define process • Track metrics in
• Execute projects
changes, org changes, support of Key
• Track and report project health using indicators
architecture, data, Performance Indicators
• Ensure projects are on track for key commitments
business case, • Perform root cause
• Inform Initiative lead of project dependencies, issues and risks
commitments, KPIs analysis if value is not
• Manage project dependencies, issues and risks
• Timeline, deployment being achieved
strategy

The Initiative Lead will communicate to the IPMT about the Initiative Health through both the Initiative
and Solution Health Indicators. They are calculated, but the Initiative Lead can override them. (REDO
SCREEN SHOTS)
The Initiative Health Indicators

default to a roll-up of the solution
health indicators (default to worst
case).
The Initiative Lead has the option to

change the Initiative Health indicator,
if the solution is not on the critical
path.
There are very specific criteria of

what each health indicator should
represent.
It is good practice to update the

comments section when overriding a
calculated health indicator
The Initiative’s Overall Health is
calculated from all the Initiative’s
health indicators. (defaults to worst
This page does not contain complete information, and is a composite of important fields case) The Initiative Lead can override
the calculation to the reflect the
health of the Initiative.
What is the health of the Initiative Cost / Investment?
Green Yellow Red

The actual investment is not greater Actual investment is over plan but < Actual investment is > 10 % over
than what was approved 10% over plan, plan
The forecasted budget is less than The forecasted budget does not The forecasted budget is greater
or equal to of original BC estimate exceed 10% of original BC estimate than 10% of original BC estimate
Original budget has not been cut or Budget has been challenged or is Budget has been challenged > 10%,
has been challenged but will still be being underrun 5-10%, and the and the Initiative will not deliver
able to deliver original requirements Initiative will not deliver some non- critical functional requirements
or the business has agreed to reset critical requirements
the requirements
All projects in the critical path are Projects on the critical path are Projects on the critical path are red
green for cost/investment health in yellow for the cost/investment health for the investment in the current
the current phase in the current phase phase
If the answer to any statement is yellow or red, the health indicator must be yellow or red
What is the health of the Initiative’s Business Value?

Green Yellow Red
BC hard and soft benefits have remained Business Case hard and soft benefits has Business case is longer valid because of
the same or increased been diminished by <10% or business increased costs, project delays, funding
case is exposed because of increased cuts, scope changes or benefit reduction
costs, project delays, funding cuts, scope
changes or benefit reduction
Scope is as defined, has been agreed to Scope has decreased to meet schedule Scope has decreased to meet schedule
by all stakeholders, and all dependencies and cost, but all critical functions are being and cost, but not all critical functions are
are interlocked delivered being delivered
The Initiative’s Key Performance The Initiative’s KPIs have been The Initiative’s KPIs have not been
Indicators have been determined and determined, but there is no plan in place determined
agreed to by L1 process owners and there to track them
is a plan in place to track them
Key Performance indicators for deployed Key Performance Indicators for deployed Key Performance Indicators for deployed
solutions are on track to meet targets solutions are not on track to meet targets, solutions are not on track to meet targets,
but there is a plan in place to remediate but there is no plan in place to remediate
All projects in the critical path are green Projects on the critical path are yellow for Projects on the critical path are red for
for business value business value in the current phase business value in the current phase
What is the health of the Initiative's schedule?
Green Yellow Red

Schedule has been agreed to by all Schedule has moved to the right, Schedule has moved to the right,
stakeholders, and all dependencies but minimal impact on value delivery has impacted value and/or
are interlocked or dependencies dependencies on this Initiative
green for schedule health in the yellow for schedule health in the for schedule health in the current
current phase current phase phase
What is the health of the Initiative’s risk?
Low Medium High

All risks have been identified with Potential risks have materialized but Potential risks have materialized
effective mitigations that will not impacts to Initiative are being and are significantly impacting the
impact cost or schedule contained. Initiative
All projects in the critical path are Projects on the critical path are Projects on the critical path are high
low for risk health in the current medium for risk health in the current for risk health in the current phase
phase phase
What is the health of the Initiative’s process transformation?
Green Yellow Red

To-Be Process requirements have been Some of the stakeholders and process To-Be process requirements have not
identified and stakeholders and the L1 owners agree to the process changes, or been validated with the stakeholders or
process owners agree to the changes some may have conflicting priorities to the process owner, or the process owner does
required process changes, but plans are in place to not agree to the changes required, or the
address the other process owners or the process owners have unresolved
conflicting priorities conflicting priorities
The L1 process owners agree with the Some of the L1 process owners agree The L1 process owners do not agree with
process performance targets of the to-be with the to-be process perf. targets and the process performance targets of the to-
process plans are in place to address the others be process
All the necessary enablers to process Some of the necessary enablers to Inhibitors exist that threaten the success
change are identified and in progress process change are identified and plans of the process changes, or enablers have
including: IT changes, bus. rules, are in place to address the others not been identified.
management system changes, skills and
training, org. / roles, and culture
for process health (project level processes process health. (not all of the project level process health. (the project level
and perf. targets are aligned and processes and perf. targets are aligned processes and perf. targets are misaligned
integrated with the Initiative process and integrated with the Initiative process and / or not integrated with the Initiative
design and the process enabler plans are design and / or some of the process process design and / or the process
on schedule) enabler plans will not meet schedule) enabler plans will not meet schedule)
Plans are in place to resolve.
© 2005 IBM Corporation
What is the health of the Initiative’s Adoption/Utilization (culture) indicators?
Green Yellow Red
UCD has been engaged, and the solutions in the UCD has done an initial assessment, but has not UCD has not been engaged for the Initiative, and
Initiative are evaluating, executing, and been fully engaged there are not adequate funds for UCD
implementing the global UCD requirements and
plans.
Pilots, prototypes, and proofs of concept are being There are no pilots, prototypes or proofs of concepts There are no pilots, prototypes or proofs of concepts
used with appropriate global audiences to make currently planned, but plans are in place to use planned
changes based on user feedback them.
Global Org Change/culture requirements have been Org change/culture requirements have not been fullyOrg change/culture requirements have not been
defined and incorporated on schedule identified, but there is a plan in place to do so accounted for or are not on schedule, and there are
not adequate funds or resource for org change
Education and Communication requirements have Education and Communication requirements have Education and Communication is not being
been identified for all key global audiences, and are not been fully evaluated, but there is a plan place to implemented on schedule to all audiences, and
being implemented on schedule do so. there are not adequate funds
Selected vendor solutions meet usability, The vendored selection meets some but not all The vendored solution does not meet usability,
globalization, and accessibility standards usability, globalization, and accessibility standards. globalization, or accessibility standards
Geographies have signed-off on requirements Some geos have signed off, and there are plans in The geos have not signed off on the Initiative
place to address the remaining
Integrated testing has been planned for and Integrated testing has been planned for, but There is no funding available for integrated testing in
executed in an environment that simulates the complete funding is not available. a production like environment, and there are no
production. plans in place for additional funding
Post deployment adoption rates are being monitored Post deployment adoption rates are being monitored Post deployment adoption rates are either not being
and are meeting targets. The process has really and are not meeting targets, but there is a plan in monitored, or being monitored and are not meeting
been changed. place to correct targets, but there is no plan in place to correct
adoption/utilization adoption/utilization
If the answer to any question is yellow or red, the health indicator must be yellow or red

What is the health of the Initiative’s Standards?
Green Yellow Red

All applicable standards are known Some exceptions are in place for There are critical standards that are
and are being complied to with no non-critical standards (critical not being complied with (critical
exceptions standards are security, privacy, standards are security, privacy,
accessibility, and ASCA) accessibility, and ASCA)
green for standards yellow for standards in the current for standards in the current phase
phase
If the answer to any question is yellow or red, the health indicator must be yellow or red
What is the overall health of the Initiative architectures?
Green Yellow Red

High confidence in meeting Business Values has decreased. Value has decreased, unlikely to
business value. Cost and schedule Cost and schedule are at risk, but meet scheduled date, or spend over
are on track to achieve business recovery expected. plan. Executive intervention
value. required; business recovery not
expected.
The business capabilities are being All critical business capabilities are Some critical business capabilities
delivered as planned being delivered, but not all that were are not being delivered.
planned.
All projects on the critical path are Some projects on the critical path Some critical projects are red in
green in all Initiative health are yellow in health categories, health categories, causing the
categories. impacting the overall’s Initiative’s Initiative to be red.
success.

What is the Initiative’s overall Health?
Green Yellow Red

High confidence in meeting Business Values has decreased. Value has decreased, unlikely to
business value. Cost and schedule Cost and schedule are at risk, but meet scheduled date, or spend over
are on track to achieve business recovery expected. plan. Executive intervention
value. required; business recovery not
expected.
The business capabilities are being All critical business capabilities are Some critical business capabilities
delivered as planned being delivered, but not all that were are not being delivered.
planned.
All projects on the critical path are Some projects on the critical path Some critical projects are red in
green in all Initiative health are yellow in health categories, health categories, causing the
categories. impacting the overall’s Initiative’s Initiative to be red.
success.
BTMT will default the overall health indicator to the ‘worst’ color of the 7 categories of Initiative Health.
The Initiative lead can change based on the guidance provided here.


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Business Transformation and IT

IPMT Operations and Tiers Management System

August 4th , 2009

© Copyright IBM Corporation 2009

Objectives of this Presentation

Page 2 © 2005 IBM Corporation

IPMT Training Topics

 BOLD Organization Overview

 Initiative Tiers and the IPMT

 Tiers Management System and Operating Principles

 Roles related to the IPMT

 The IPMT Review

 Fall Plan Process and Calendar

 Appendix- additional information

Page 3 © 2005 IBM Corporation

Tiers in Initiative Management

Tier 1 EIT CIO OT

Page 4 © 2005 IBM Corporation

1.0 Idea to Market (Develop) Alan Ganek

2.0 Market to Opportunity Buell Duncan

3.0 Opportunity to Order Kathy Colucci*

5.0 Support Paul Loftus Finance, Supply Chain &

6.0 Develop Strategy /Execute Mike Giersch

IBM Global Financing • GISP and EPO

5 © Copyright IBM Corporation 2009 Updated 7/30

All IPMTs in the new organization will CIO

Blue Harmony Communication

Run Transform Innovation Business Units Geographies

Finance, Incentives, GBS Integration

Global Workforce-Web SWG Integration

Page 6 © Copyright IBM Corporation 2009 Updated

Tiers in Initiative Management- Before/After BOLD Consolidation

Tier 1 EIT CIO OT

Tier 2 PTE IPMT TE/Run IPMT

Tier 3 BTE IPMT PPR*

Tiers have been redesigned to leverage management system involvement

1 >$5M CIO OT EISC & OT Full business case 100% BTAPEX

3 <$0.5M PPR Self-assessment Prioritization only Bottom 10% only none

Page 8 © 2005 IBM Corporation

IPMT and Initiative Management Tiers and Operating Principles

Page 9 © 2005 IBM Corporation

IPMT Assign Select Initiatives Monitor value

PDTL Manage projects E2E

(PDTL or SPM) SPM

Business Transformation Management Tool (BTMT)

• Review and approve Transformation Roadmap

Page 11 © 2005 IBM Corporation

Roles involved in IPMT Operations

Page 12 © 2005 IBM Corporation

R Y G Initiative Health Scorecard R Y G

Page 13 © 2005 IBM Corporation

Page 14 © 2005 IBM Corporation

Page 15 © 2005 IBM Corporation

Page 16 © 2005 IBM Corporation

Page 17 © 2005 IBM Corporation

Page 18 © 2005 IBM Corporation

2010 Fall Plan Calendar

Page 19 © 2005 IBM Corporation

1. Training for the IPMT coordinator