Main Components

A scorecard is the visual representation of the degree to which you are meeting the objectives that your organization is striving to achieve. A scorecard is based on a strategy tree that comprises hierarchical nodes of strategy components.

Strategy components are the elements that compose an organization's strategy. They represent the goals or key business objectives that an organization is striving to achieve, and are the objects that compose a strategy tree. Vision, strategic thrusts, and critical success factors are types of strategy components; they are the levels of a strategy tree.

A key performance indicator (KPI) defines the data value or calculation from the EPM Warehouse tables that is evaluated to determine how well an organization is meeting its critical success factors.

Project Portfolio Management delivers a set of preconfigured KPIs that provide executives and middle management the tools to analyze proposed projects and compare them with business objectives. These KPIs have been developed in conjunction with leading consultants, and provide measurements of:

• Risk.

• Key business objectives (KBOs).

• Return on investment (ROI).

• Net present value (NPV).

• Estimated costs.

• Estimated benefits.

• Variance percent.

• Project run rate.

• Health.

• Estimate to complete (ETC).

• Forecast.

• Forecast variance.

• Forecast variance percent.

• Earned value

• Forecast time variance.

The delivered KPIs that you use for Project Portfolio Management are loaded by a data mover script that is run when you install the application. The KPI IDs of the delivered KPIs all begin with PM_. These KPIs use an object type of PROJECT_REQUEST and use data from projects and project requests. The KPIs are associated with several delivered portfolios that enable you to evaluate project requests. You can use them with scorecards or portfolios that you create, to evaluate important project metrics.

Project Portfolio Management includes a project request component that enables your enterprise to create project requests and project request templates, perform detailed costing at department and account levels, rate how well a project request supports your organization's key business objectives (KBOs), and rate its relative risk. The Project Request component (BC_PROJ_REQUEST) also enables you to view project dependencies and milestones for each project.

A portfolio is a collection of objects that are grouped together for comparative analysis. In the case of Project Portfolio Management, the objects that are compared are project requests, and this information is used to make decisions about which projects to undertake and maintain.

Additionally, portfolios are used to define the score group categories on the Project Request - Scoring page to generate scores that indicate how well a project supports an organization's key business objectives (KBO) and quantifies a project's relative risk.

Enterprise Performance Management applications use performance business units (PF business units). If you plan to integrate Project Portfolio Management with PeopleSoft Program Management, you must create one PF business unit that corresponds to each project business unit.

To enter costing information for project requests, you also need to define general ledger business units (GL business units).