Determining Project Request Scores and Managing Risks

This section provides an overview of project request scoring and discusses how to:

Define score group portfolios.
Rank the importance of score group components.
Score project requests.
Associate risk elements with risk categories.

Pages Used to Determine Project Scores and Manage Risks

Page Name	Definition Name	Navigation	Usage
Tree Manager	PSTREEMGR	select Tree Manager, then select Tree Manager	Establish a tree that contains the categories against which to score project requests.
Portfolio Definition	BC_PORTFOLIO_DFN	select Project Portfolio Management, then select Portfolios, then select Create/Edit Portfolios, then select Portfolio Definition	Establish a portfolio for use in scoring project requests.
Portfolio Definition - Component Weighting	BC_PORTFLIO_CMP	select Project Portfolio Management, then select Portfolios, then select Create/Edit Portfolios, then select Component Weighting	Rank the relative importance of the categories that compose a score group
Project Request - Scoring	BC_PRJREQST_PORT	select Project Portfolio Management, then select Project Requests, then select Scoring	Associate score group portfolios with a project request and generate scores.
Risk Elements	PPK_PR_RISK_ELEM	Click Edit Risk Elements on the Project Requests - Scoring page.	Associate risk elements and milestones with risk categories.
Risk Element	PPK_RISK_ELEMENT	Click Create New Risk Element on the Project Requests - Scoring page.	Define risk elements.
Risk Element Comment	PPK_PR_RISK_COM	Click a comments icon on the Risk Element page.	Enter comments about a risk element.
Milestone	PPK_MILESTONE	Click Create New Milestone on the Project Requests - Scoring page.	Define milestones.

Understanding Project Request Scores

The Project Requests - Scoring page enables you to associate portfolio-based score groups for risk and KBO support with a project request so you can rank how well the project request supports each of the components within a score group. The system uses this information to generate scores that indicate the level of risk or support.

To calculate risk and KBO support for a project request, you must define at least two portfolios, one for the KBO support score group and another for the primary risk score group. You establish these portfolios by using the Portfolio Definition component (BC_PORTFOLIO_DFN). The trees upon which these portfolios are based define the risk and KBO components that are used to score the project requests. The delivered portfolios for primary risk and KBO support are PM_RISK and PM_KBO_SUPPORT. You can use the delivered portfolios, modifying them as necessary to suit the implementation, or create your own. Ideally, when you implement the system, you will create standardized portfolios for primary risk and KBO support for use by your organization, then use them to generate the project request scores. The only pages within the Portfolio Definition component that apply to scoring project requests are the Portfolio Definition page and the weighting page.

You must complete the Component Weighting page for the portfolios that are used for the score groups for the system to calculate a score. On the Component Weighting page, you rank the relative importance of each component that is in the portfolio; this determines the relative weight value for each component. On the Project Request - Scoring page, you rank how well a project request supports each component in the Support field. To determine the scores, the system multiplies the relative weight value for each component by the support value for each component, then sums these values to compute the total gross score. You establish the numerical values that are used for each rank by using the Component Ranking Definition page in PeopleSoft Scorecard.

Risk Score Adjustments

You can make adjustments to the calculated risk scores to reflect mitigating factors that impact the level of risk for a particular risk category. You can enter these adjustments manually as positive or negative percentages. The system also calculates adjustments if risk elements with milestones are associated with a risk category. After a milestone is associated with a risk element, the milestone's probability affects the net score of that component, and hence the overall net score of the project request. The calculation for the net adjustment for each risk category is:

(Net Adjustment) = ((Manual Adjustment Percentage) × (Average Probablilty of all Milestones)) × (Gross Score)

The system tracks the following scores for risks:

Gross score.

The system-calculated score that is a measurement of the level of risk for each risk category, without any adjustments. This is calculated as the relative weight value for each component multiplied by the support value for each component.
Net score.

The risk score that reflects all adjustments. This is calculated as the gross score plus any net adjustments.

Portfolio Definition page

Use the Portfolio Definition page (BC_PORTFOLIO_DFN) to establish a portfolio for use in scoring project requests.

Navigation

select Project Portfolio Management, then select Portfolios, then select Create/Edit Portfolios, then select Portfolio Definition

Image: Portfolio Definition page

This example illustrates the fields and controls on the Portfolio Definition page. You can find definitions for the fields and controls later on this page.

Tree Name

Specify the tree that contains the score group components against which you will score your project requests. To generate scores for both risk and KBO support, you must define one portfolio for risk and one for KBO support. The trees are made up of nodes that define each category.

Portfolio Definition - Component Weighting Page

Use the Portfolio Definition - Component Weighting page (BC_PORTFLIO_CMP) to .

Navigation

select Project Portfolio Management, then select Portfolios, then select Create/Edit Portfolios, then select Component Weighting

Image: Portfolio Definition - Component Weighting page

This example illustrates the fields and controls on the Portfolio Definition - Component Weighting page. You can find definitions for the fields and controls later on this page.

The columns and rows on this page display the components of the tree (the tree nodes) upon which the portfolio is based, as defined on the Portfolio Definition page. Each component is listed in both a row and a column within the matrix so that each component can be ranked against every other component.

To rank the components and determine their scores:

For each pair of components that you rank, select a value in the drop-down list box at the intersecting cell in the grid.

Rank the component in the row against the component in the column; in the example shown, the component Pre-req Dependent Projects is ranked more important than the component Dependency on Commercial Dev. You are not required to rank every pair of components. In cases for which you are using relative ranks, the system automatically fills in the appropriate opposite rank, as defined on the Component Rank ID Mapping page. You must establish the valid rankings and their numerical equivalents using the Component Ranking Definition page prior to using them on this page.

See Establishing Ranking Definitions.

This page may have multiple tabs to accommodate every component. Access each tab to rank that set of components, or view them all in a scrollable grid by clicking the View All button.
Click the Calculate Score button to display the raw score and weight (weighted score) on the Score tab.

The score and weight for each component appear in the last two columns of the grid.

The score that appears is the sum of the numeric equivalents for values that are selected for each component pair. The weight is the percentage of the total score that is calculated for the score in any given row. Therefore, the total weight will always be slightly less than or equal to 100.

Project Request - Scoring page

Use the Project Request - Scoring page (BC_PRJREQST_PORT) to associate score group portfolios with a project request and generate scores.

Navigation

select Project Portfolio Management, then select Project Requests, then select Scoring

Image: Project Request - Scoring page

This example illustrates the fields and controls on the Project Request - Scoring page. You can find definitions for the fields and controls later on this page.

Primary Risk

To associate the project request with the portfolio that specifies the primary risk components and generate the scores for primary risk, complete these fields:

Score Group

Select the portfolio that defines the primary risk category components. These components are the rows that appear in the Risk Category grid.

View Weighting

Click to view the Component Weighting page of the portfolio. The weight matrix is read-only.

Edit Risk Elements

Click to access the Risk Elements page, where you can associate risk elements and risk milestones with each risk category. The percentage probability of risk milestones is used to calculate the average probability of the adjustment percentage.

Description

Lists the risk category. Click to access the Risk Elements page, where you can define the risk elements for each risk category.

Risk Level

Select this project request's relative level of risk for each risk category.

You define risk levels by using the Component Ranking Definition page.

Gross Score

Displays the computed score for each risk category, and a total gross score for all risk categories.

This is calculated as Gross Score= Sum(Risk Category Score).

Adj.(+/−%) (adjustment percentage)

Enter a percentage by which to increase or decrease the risk, based on your knowledge of circumstances that affect the risk. Positive values represent an increase in risk; negative values represent a decrease.

Avg. Prob. of Milestones % (average probability of milestones)

Displays the average of the probability field for all risk milestones that are associated with this risk category.

This is calculated as Avg. Prob. of Milestones % = Sum (% Probability for each Risk Milestone attributed to a Risk Category)÷ (Number of Risk Milestones attributed to the Risk Category)

Net Adj (net adjustment)

Displays the net adjustment.

Net Score

Displays the risk score that reflects all adjustments. This is calculated as the gross score plus any net adjustments.

Comments

Click to review any comments.

Score Groups

This group box generates the score for KBO support. You can insert additional rows to score additional score groups; however, only the primary KBO score group appears in the portfolio analysis pages.

Score Group

Select the portfolio that defines the components of the score group. These components are the rows that appear in the Category grid. The components in the specified portfolio appear in the grid.

Score Type

Select the score type for which this portfolio is used. Options are:

Primary KBO: (primary key business objective). Select to indicate that this is used for the key business objective support score.

This field is not required. However, a score for portfolios without a selected score type is not used in portfolio analysis.

Note: You may have as many non-typed portfolios as you like, but only one primary KBO or primary risk type.

View Weighting

Click to view the Component Weighting page of the portfolio. The weight matrix is read-only.

Support Level

Select this project request's relative level of support for each category.

You define support levels by using the Component Ranking Definition page.

Generating Scores

Calculate Score

Click to calculate scores that show the level of risk and level of support for KBOs.

Risk Elements Page

Use the Risk Elements page (PPK_PR_RISK_ELEM) to associate risk elements and milestones with risk categories.

Navigation

Click Edit Risk Elements on the Project Requests - Scoring page.

Image: Risk Elements page (1 of 2)

This example illustrates the fields and controls on the Risk Elements page (1 of 2). You can find definitions for the fields and controls later on this page.

Image: Risk Elements page (2 of 2)

This example illustrates the fields and controls on the Risk Elements page (2 of 2). You can find definitions for the fields and controls later on this page.

This page lists all of the risk categories in the primary risk group that are associated with a project request. For each risk category, you can assign one or more risk elements, and optionally assign a risk milestone.

Actions

Create New Risk Element

Click to access the Risk Element page, where you can define a new risk element.

Create New Milestone

Click to access the Milestone page, where you can define a new milestone.

Risk Elements and Milestones

Complete the following fields to assign risk elements and risk milestones to a risk category.

Risk Element

Select the risk element to associate with the risk category. Risk elements represent the specific risks that your organization tracks for a project request.

Risk Milestone

Select a milestone to assign to the risk element.

You are not required to assign a risk milestone to each risk element. However, to determine the average probability, every risk element is considered, whether or not a milestone is assigned. If a risk element does not have a milestone, then the system uses a value of 100 percent when computing the average probability.

Status

Displays the current status for the milestone.

Prob. (%) (probability percentage)

Displays the percentage probability that this will occur on time.

Click to access the Risk Element Comment page, where you can enter or review comments for the risk element.