CA PPM: Aligning Projects With Strategy

1. CA PPM Aligning Projects With Strategy Russell Nelms Agile Management Toyota Financial Services Head of Enterprise PMO Session Number @NelmsRussell #CAWorld

2. 2 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD © 2015 CA. All rights reserved. All trademarks referenced herein belong to their respective companies. The content provided in this CA World 2015 presentation is intended for informational purposes only and does not form any type of warranty. The information provided by a CA partner and/or CA customer has not been reviewed for accuracy by CA. For Informational Purposes Only Terms of this Presentation

3. 3 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Business Background  In today’s climate of cost cutting and efficiency targets, delivering the change portfolio more effectively is a key objective for Toyota Finance Australia’s Enterprise PMO. This means delivering the right mix of projects, consistently and well, faster and at less cost.  In order to achieve stretching goals, Toyota Finance Australia’s Executive and Management Teams face difficult decisions every day and the need for better quality information to drive those decisions is paramount. The need to deliver the Business Strategy whilst ensuring the Project Portfolio supports and contributes to the bottom-line value of the organization.  In conjunction with business leaders, Toyota Finance Australia’s Enterprise PMO ensures investments in Project Portfolio deliver the best possible outcomes and the organization delivers to the (1) Annual Strategy (Hoshin) and (2) Mid-Term Business Plan (5 Year Plan).

4. 4 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Toyota Financial Services Covers more than 30 Countries and Regions  The first Toyota Financial Services operation commenced in Sydney, Australia, in 1982 as Toyota Finance Australia Limited and was soon followed by operations in the USA, Canada, Europe, Asia and Oceania.  Toyota Financial Services has constructed a global network that covers approximately 90% of the markets in which Toyota sells its vehicles with approximately 5.4 million customers.  Toyota Financial Services offers its customers financial services that include auto sales financing, credit cards, retail sales of corporate bonds and investment trusts, and insurance. Ranked #8 Best Global Brand for 2015 Source: Interbrand

5. 5 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Business Opportunity – Clarity PPM Toyota Business Practice Approach Current Situation Continuation of current process and as-is state, includes:  Continual use of multiple, disjointed processes and tools  Resource and project contention  Inability to make fact based business decisions on strategic investments  No central visibility on projects, use disparate systems and inefficient processes to track report progress  Plateauing of maturity within organization  Selected Portfolio decisions don’t align with business strategy  Running projects that are low priority initiatives  Project overruns will continue and increase  Some data will be unavailable and/or static Ideal Situation To strengthen our ability to delivery on our Project Investment Portfolio with a consistent set of policies, standards and an integrated environment to record, measure and track the investment portfolio. The objectives of implementing a Project Portfolio Management approach are to allow Toyota Finance Australia to be focused, fast, and agile. Achieving these high level goals necessitates a variety of inter-related steps:  Alignment. Synergies between the Business Unit Strategy and Corporate Strategy  Investment Focus. Viewing expenditures (human, asset, capital) as investments – a process to track performance.  Governance. Process for making investment decisions.  Cost Control. Understanding the main drivers of project costs for containment purposes.  Efficiency. Use of resources (human and material) efficiently, leveraging wherever possible. Additionally, the ability to standardise workflows and automate business processes so that we can do the right work faster… the first time. Gap  The need to individually track project activities that will rollup critical information to a portfolio level resulting in transparent reporting of project status – Strategy and Project Execution.  Misalignment of projects to our Corporate Hoshin drivers – Strategic Alignment and Prioritisation (MTBP).  Poor resource allocation, tracking, reporting and identification of contention points (over utilization) – Resource Management.  Requiring more accurate, Transparent, Consistent and Real- time Financial Dashboard & Reporting – Cost amd Financial management.

6. 6 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD  Bronze Milestone – Completion of key Project deliverables.  Silver Milestone – Completion of a significant project aspect enabling the remainder of the project.  Gold Milestone – Delivery of a major business capability and linked to Strategic Goal.  We have strong Group Strategy, Portfolio Governance and Project Execution Capability  The status of all projects measured consistently across the group, based on 7 reporting keys  Projects are structured as a set of end-to-end activities  Projects are then divided into stand-alone components or Work Packages  There are five key project approval documents to support all project approvals Strong Frameworks in place… Strategy, Portfolio Governance and Project Execution Capability

7. 7 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD For Toyota Finance Australia’s Strategy to be successful The Project Portfolio must be successful Corporate Strategy Strategic/Executive Decision Making Organizational Governance Management, Standards, Methods and Quality Controls Predictable Execution Project Management Delivery Strategy Management  Annual Strategy (Hoshin)  Mid-Term Business Plan (5 Year Plan) Portfolio Management  Are we doing the right things?  How are we doing? Project Management  Business Outcomes  Business Benefits Processes How do we do it? Let’s do it the Toyota way! Capacity Can we do it? Can we adopt it?

8. 8 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Project Leader KPIs Aligning Project Outcomes to Strategy Costs Time Scope Month 1 Month 2 Month 3 Project Name Project Category Cost Time Scope Rating KPI RAG Project Sponsor Project Manager Total Budget Estimate Approved Budget Spend To Date (SAP) Phase Go Live Date Contract Acquisition Foundation (F) 2 2 3 7 1 ROSSELL, Don SAMUELS, Todd $27,557,235 $5,598,824 $5,189,274 Planning TBC Credit Decisioning Phase 2 Opportunistic (O) 5 5 4 13 4 LOONEY, Adrian CHANNON, Michael $2,973,730 $398,000 $150,229 Planning 05/12/2015 Dealer House Account Strategy (S) 4 5 5 14 5 ROSSELL, Don HORSPOOL, Chris $1,074,676 $1,087,911 $894,691 Close 21/02/2015 Project Insurance Strategy (S) 3 3 4 11 3 ROSSELL, Don HORSPOOL, Chris $2,638,488 $2,638,488 $2,404,115 Build 17/05/2015 Driver Direct Strategy (S) 5 5 5 15 5 STANISTREET, Ed SPIRIT, Ian $185,388 $207,470 $45,387 Build 31/03/2015 Project Equip Foundation (F) 4 3 4 11 3 STANISTREET, Ed SPIRIT, Ian $3,621,025 $3,736,908 $2,826,427 Design 18/04/2015 Harvest Integrate Strategy (S) 4 2 3 9 2 STANISTREET, Ed HOLDOM, Luke $906,112 $990,792 $747,979 Design 19/06/2015 Contact Management System Strategy (S) 5 5 5 15 5 STANISTREET, Ed HOLDOM, Luke TBC $118,800 $4,677 Initiate TBC Information Security FY15 Keep the lights on (K) 5 4 5 14 5 RUSCIO, Frank MUIR, Mackenzie $315,000 $315,000 $148,993 Implement 20/03/2015 Clarity PPM Tool Opportunistic (O) 5 5 5 15 5 NELMS, Russell KARANTZAS, George $380,154 $12,480 $0 Initiate 01/07/2015 Business Objects Keep the lights on (K) 5 5 5 15 5 TAN WOOI, Tee BAJAJ, Jasdip $186,000 $186,000 $0 Initiate TBC Miles Upgrade Keep the lights on (K) 5 5 5 15 5 TAN WOOI, Tee SPIRIT, Ian $45,000 $45,000 $0 Initiate TBC Telecomm Transition Keep the lights on (K) 5 4 5 14 5 RUSCIO, Frank O'HALLORAN, Matt $1,858,093 $1,894,700 $1,858,093 Implement 30/01/2015 SMF FPA Ideal Strategy (S) 5 5 5 15 5 CORNWELL, George HORSPOOL, Chris $6,740 $6,740 $0 Initiate TBC NextGen TFA Online Strategy (S) 5 5 5 15 5 CORNWELL, George KEPPIE, Mark $30,000 $33,480 $0 Initiate TBC Spring (Access End of Term) Foundation (F) 3 2 5 10 3 RAMSAY, Mark EBRAHIMI, Noor $740,770 $579,454 $167,954 Design TBC ASIC Compliance OTC Global Trade Compliance (C) 5 5 5 15 5 CHESSARI, Daniel TZOUMACAS, Tony $439,331 $209,811 $0 Initiate 01/07/2015 SAP Data Structures Keep the lights on (K) 5 4 5 14 5 CHESSARI, Daniel CHANNON, Michael $1,550,000 $357,600 $130,004 Design TBC Project Lighthouse Opportunistic (O) 5 5 5 15 5 HALABUT, Laurence KEPPIE, Mark $422,828 $503,988 $194,559 Testing 09/04/2015 InfraRisk Project Opportunistic (O) 5 5 5 15 5 HOWELL, Gary HOLDOM, Luke $119,535 $142,724 $6,235 Planning 15/05/2015 Purchasing Automation Strategy (S) 5 4 5 14 5 HOWELL, Gary CHANNON, Michael $37,500 $28,000 $20,500 Initiate TBC Collections Foundation (F) 4 4 3 11 3 HOWELL, Gary KARANTZAS, George $5,489,878 $5,068,430 $5,221,593 Close 17/11/2014 DMR Foundation (F) 5 4 4 14 5 RUSCIO, Frank FIAZ, Mahdy $1,731,343 $1,731,343 $1,192,113 Close 15/12/2014 SMF FPA Strategy (S) 4 5 5 14 5 ROSSELL, Don HORSPOOL, Chris $70,000 $70,000 $95,850 Close 17/12/2014 Novated Digital Strategy (S) 5 4 5 14 5 BOXSELL, Phil SPIRIT, Ian $553,717 $581,460 $523,544 Close 14/10/2014 Miles SQL Upgrade Keep the lights on (K) 5 5 5 15 5 RUSCIO, Frank BAJAJ, Jasdip $310,723 $340,000 $292,723 Close 21/11/2014 Leads Tune Optimisation Opportunistic (O) 4 4 4 12 4 RAMSAY, Mark PHILLIPS, John $152,332 $153,667 $138,090 Close 16/10/2014 NAB-NBFI Opportunistic (O) 5 5 5 15 5 ROBINSON, David CHANNON, Michael $378,111 $377,220 $365,216 Close 18/10/2014 Arrow - Credit Decisioning Foundation (F) 5 5 5 15 5 LOONEY, Adrian CHANNON, Michael $2,020,255 $2,887,271 $1,903,429 Close 25/08/2014 Privacy Act Compliance (C) 4 4 4 12 4 CHESSARI, Daniel BURMAN, Stephen $2,156,502 $2,181,066 $2,106,388 Close 24/09/2014 CCP3 Opportunistic 4 5 5 14 5 CORNWELL, George HOLDOM, LUKE $472,674 $472,674 $444,949 Close 17/05/2014 LMS Opportunistic 5 5 5 15 5 ROSSELL, Don SEYMOUR, ARNDRIA $2,169,272 $2,169,272 $2,169,272 Close 05/05/2014 Each project is scored out of 4 against the three success criteria (Time, Cost, Scope) giving a total score out of 12 At a Project level, project success is rated using the scoring below At a Portfolio level the Target is 85% of projects achieve a score of >7.5 1 2 3 4 Scoring <3.75 3.75 – 7.4 7.5 – 11.24 >11.25

9. 9 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD  “Keep it simple”, “keep it simple”, “keep it simple”.  Configuration, not customisation  Move to industry best practice  Optimize business processes where possible  Eliminate complexity wherever possible  Tightly aligned with Strategy Framework, Governance Framework and Project Execution Framework  Partnering with excellence  Simple, Intuitive, Precise Our Guiding Principles… Balancing the requirements around needs versus wants The implementation approach was to use the experience of internal resources and utilize CA Technologies proven experience to deliver the core Project Portfolio Management solution. Requirements to be simple versus complex with a focus on needs versus wants. The emergent Enterprise PMO model.

11. 11 © 2015 CA. ALL RIGHTS RESERVED.@CAWORLD #CAWORLD Clarity PPM Plan Do Check Act Key Take Away… Iterative and Collaborative Approach 1.Clear and early direction set by Sponsor to deliver a solution with minimal customization. 2.Collaborative workshops with CA Technologies and Toyota Finance key impacted stakeholders to quickly confirm requirements and agree high-level solution design with vendor. 3.CA Technologies able to deliver solution in short and compressed timeframes by taking base system and applying 'best practice' configuration. 4.Iterative design, deliver, review and feedback process between Sponsor, Project Team, Business Strategist and CA Technologies enabled delivery of final build solution within 3 months. 5.Project Team focus on delivering the critical scope items. 6.Change Management Plan obtained early buy-in from key impacted stakeholders. Best Practice Approach Took the business processes and solution and worked with CA Technologies to configure ‘best practice’ based on 1,000+ implementations in ASK 50 companies and Fortune 500 companies. Change Management Approach Interactive, fun and engaging approach to bring ALL key stakeholders along on the journey… starting at the beginning of the project and ramping up towards the implementation and continued through deployment to ensure both buy-in and success. BAU Transition Transition into BAU is basic principle for a project but is often overlooked… BAU Transition plan focused heavily on what is required to support Business Strategy, Governance and Project Execution post implementation.

CA PPM : Aligning Projects With Strategy

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