Cost Optimisation - Effective Execution and Spend Management

Mastering Cost Optimisation Delivering Effective Execution (PPM)

Benefits of Effective Project and Programme Management (PPM)

▪ Reduce Overruns: Streamlined programme management can decrease overruns by up to 35% ▪ Cut Costs: Effective spend optimisation strategies can reduce expenditure by up to 20% ▪ Enhance Alignment: Aligning projects with strategic goals can improve success rates by up to 25% ▪ Make Smart Decisions: Data driven PPM can increase completion rates by up to 20% and reduce decision making time by 30% ▪ Increase Transparency: Clear visibility of progress and resource use can lead to 15% improvement in delivery times.

Common Mistakes made

▪ Misaligned Goals: PPM efforts not tied to strategic objectives, wasting effort and resources

▪ Ignoring Complexity: Overlooking interdependencies and resource allocation leading to inefficiencies ▪ Poor Resource Management: Ineffective allocation and utilisation of resources causing delays and overruns ▪ Lack of Stakeholder Engagement: Insufficient involvement resulting in misaligned priorities and resistance ▪ Neglecting Data: Not leveraging data for decision making, resulting in suboptimal outcomes.

Key strategies for PPM Execution

▪ Strategic Alignment: Combine OKRs and KPI’s ensuring goals align with measures of performance

▪ Robust Governance: Adopt adaptive frameworks with stage-gate and agile practices

▪ Optimised Resources: Use predictive analytics for forecasting, AI driven optimisation

▪ Proactive Risk Management: Implement continuous risk monitoring with AI

▪ Data Driven: Leverage big data for deeper insights and predictive analytics

▪ Continuous Improvement: Optimise through use of process mining, Lean Six Sigma tools.

How – To - Guide

1. Define Clear Objectives: Translate goals into actionable project, programme objectives

2. Standardise Processes: Workflows, policies, templates ensuring consistency and efficiency

3. Integrate Resource: Use tools to manage human, financial, material resource effectively

4. Use Data: Utilise data analytics and reporting tools for real-time visibility on performance

5. Proactive Risk: Implement comprehensive risk management, carrying out regular assessments

6. Monitor and Adapt: Regularly review progress, adjust strategies and continuously improve

7. Engage Stakeholders: Ensure ongoing communication and involvement.

Dependency Management Portfolio view of dependencies to aid decision making

Business Case and Finances Management of finances and support to business case development and realisation

Planning and Roadmap Effective and realistic planning with clear milestones

Risk, Issue and Actions Proactive and consistent management of underlying project artefacts

Reporting One version of truth driving Exec level reporting and governance

Stakeholder Management Engagement of stakeholders to ensure continued buy in and sponsorship

Traits of Effective PPM and Programme Management Office

Resource Management Resourcing balanced to demand, and skills needs

Communications Clear communications to all stakeholders and interested parties

Governance The right level of governance at the right time

Demand Management and Change Control Pragmatic change frameworks, methods and tooling

Project Standards and Templating One way of delivering projects enabling people to work across the portfolio

Case Study: Leading Financial Institution

Background: A large bank needed to enhance its PPM to improve transparency, control, and efficiency amidst market changes. Implementation: ▪ Agile Working: Introduced lean-agile methodologies, streamlining workflows ▪ Tech Integration: Integrated PPM tools with finance, HR systems for optimised resource management ▪ Dashboards: Implemented real-time reporting and kpi dashboards for data driven decisioning Outcomes: ▪ 35% reduction in Delivery Overruns ▪ 20% Reduction in Third Party Spend ▪ 70% Reduction in Approval Times

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