An Analysis of Project Portfolio Management at Siemens Australia

This report provides a detailed analysis of the project portfolio management (PPM) system implemented at Siemens Australia. It begins with an introduction to Siemens Australia and its focus on sustainable programs, followed by an examination of the situational context, highlighting the benefits of the PPM system, including its organization, resource optimization, and alignment with sustainability criteria. The report then evaluates the portfolio, emphasizing the use of Teamcenter software for data reconciliation and project lifecycle evaluation. It also explores portfolio management aspects, such as project coordination, the role of the project management office, and the use of both qualitative and quantitative skills. Furthermore, the report discusses the maturity levels of the organization, corporate culture, and the effects or outcomes of the PPM, including benefits like resource optimization and project synchronization. The report concludes with a summary of the findings and references.

Running head: SUSTAINABILITY AND PORTFOLIO MANAGEMENT 1
Sustainability and Portfolio Management
Student Name
Institution

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 2
Table of Contents
Introduction.................................................................................................................................................2
Situational Context......................................................................................................................................2
Portfolio Evaluation.....................................................................................................................................5
Portfolio Management................................................................................................................................7
Maturity Levels............................................................................................................................................8
Corporate Culture........................................................................................................................................9
Effect or outcome of the PPM...................................................................................................................11
Conclusion.................................................................................................................................................11
Reference..................................................................................................................................................12

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Introduction
Siemens Australia is a subsidiary of the Siemens organization that is global multinational
organization. Siemens is the manufacturer of advanced technologies with a focus on engineering
product and solutions while at the same time investing in sustainable programs. Siemens division
of Australia and New Zealand particularly deals in digitalization, manufacturing, automobile,
healthcare technologies, and services. In line with organization’s goals, the organization has
developed a project portfolio management (PPM) system that assists in ensuring that portfolio is
managed and evaluated to achieve objectives. Most of the portfolio management system in the
organization has been reduced to automated machine that runs and is controlled by computer
software called Teamcenter. The whole system though has proved efficient is also facing some
few challenge (Feldenkirchen & Eberhard, 2005). The following document gives findings the
review of the project portfolio management implementation that is submitted to the executive
management.
Situational Context
The organization is investing in the right project since the organization is investing in
projects that aim at benefiting and incorporating community or society for common good. There
are many reasons why portfolio management is the right project for the company. Firstly, the
organizational portfolio is organized into a system that critically allows other innovative ideas to
be implemented into the organization. The program also works to utilize innovative ideas for the
better performance of the organization. Secondly, the organization’s PPM recognizes and utilizes
the opportunities that are available for the benefit of the organization and society. Thirdly, the
PPM also optimises resources through identifying different areas of efficiencies and play without
delay by better planning. Fourthly, the organization has current trending sustainability criteria

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 4
that satisfy the UN calls for sustainable environmental programs. Moreover, the PPM has a
baseline that is open for future improvement or success of the business and this is enabled
through high synchronization that the program offered in the line of the business objectives and
goals (Sanwal, 2007).
Secondly, the organization is optimising because the organization is in the course of
meeting its core objective of ingenuity for life. The organization has high optimising tools that
are incorporated with current innovative technologies to ensure that the organization PPM is at
the same level with other current advanced technology. The organization reduces delay or and
optimise efficiencies through identification of the areas that need improvement. The PPM also
utilizes high planning ability that also reduces inefficiencies in the project. The system allows
proper early planning and financial resource using the organization’s robust technology with
intelligent programmers. In addition, the system has been optimised for a balanced system that
allocates resources in program specific capabilities (Schipper, et al 2012).
Thirdly, the organization is executing the project well and this is evident by some
projects that are implemented across Australia. The organization has a project portfolio
management system that is described as product lifecycle management. This system automates
product development process without considering the size or complexity of the process since the
whole system is computerized. The project execution makes use of the high efficiency of the
portfolio management process within the organization that has been pre-planned. Moreover,
digitalization of the system has been executed when the management decided to implement the
digital process automation. This gave birth of the computerized system using software called
Teamcenter. Teamcenter has been incorporated in the system through program termed as
enterprise portfolio management. Enterprise portfolio management is a kind of process lifecycle

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 5
management utilizes information available within the organization to optimize the company
portfolio. In the execution process, the PPM, therefore, determine whether the portfolio
management system should align portfolio with organization objectives or products (Project
Management Institute, 2014).
Fourthly, Siemens Australia can absorb all the changes since the organizational
framework allows absorption of new projects or ideas. The organization has most of its portfolio
connected or link with the project portfolio management that allows all programs or projects to
centrally manage. Despite the organization’s size that slows down automation of all production
process, the absorption rate is high and this also enabled through the maturity level that has been
realized in the organization. Teamcenter is easy to absorb in the organization since it simplifies
the work that would have been done by many people using a lot of resources. Moreover,
Teamcenter suit the constructive work culture that the organization is based (Kerzner, 2010).
Finally, the organization is realizing the promised benefits as evident by numerous
projects that have been implemented. The promised benefits of the organization are engraved on
the sustainability of the project and efficiency of the system. These benefits are already realized
with the Teamcenter proving its advantages on the production. Since its inception, the program
has enabled the organization to track all the processes and the linkage to organization goals. In
addition, the program also has enabled introduction and usage of sustainability criteria that allow
community involvement into the system. Sustainability program also makes the organization
realize its vision of production of renewable energy. Efficiency aspect of Teamcenter bridge the
gap between planning and execution that is normally realized when the manual management
system is used. There is limited time wastage that results from reconciling data generated in

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 6
project management and execution program. Using manual project management, therefore, waste
both time and resource to do similar task conducted by Teamcenter.
Portfolio Evaluation
The portfolio evaluation in the organization is quite technical as the company is
technologically capable with the ability to use computerized evaluation and management system.
Firstly, the Siemens Australia uses Teamcenter software that is incorporated into project
lifecycle evaluation aspect. Teamcenter® utilizes the top-down managerial skills in evaluating
the project portfolio management. One of the key areas where Teamcenter has proved good is
portfolio evaluation process where it is used to reconcile all the data with respective project
systems. The ability of the program to link planning and execution stages of the project make the
software advantageous in project evaluation. The top-down evaluation process is also good in
evaluating project strategy following project pipeline. Teamcenter allows articulation of
direction in evaluation process giving the overall framework that works in accordance with
organization’s strategic management goals (Müller, Martinsuo & Blomquist, 2008).
Secondly, the justification for using Teamcenter® for evaluation is based on its ability to
assist in the evaluation of many aspects of project stages as compared to other methods that rest
on the human operator. Using Teamcenter in PPM complies with the changing working
environment that currently allows utilization of technology and reduced human capability. This
allows the machine to perform most work hence increase inefficiencies that are caused by human
errors due to manual operations. Development and usage of Teamcenter are also justified by its
innovative nature that works in hand with the organization’s objective of increasing the
innovative capability development. At the time of its deployment, there was a need to replace the
manual portfolio management with Teamcenter as means of organization change culture.

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 7
Teamcenter brought the picture of machine capability compared to the initial human manual
PPM system that was full of error, time wastage, and resource wastage.
Thirdly, benefits management cycle is incorporated into the evaluation process since all
aspects of project lifecycle are harmonized in the software. In the Teamcenter, some of the
benefits that are incorporated as benefits management cycle are optimization of resources,
synchronization system, and continuation business system. Resource optimization cycle is
benefited management cycle that allows the system to align the resource in accordance with
benefits set for the project. Synchronization system also ensures that the product development
process is synchronized to bring benefits to both stakeholders and the business. Business
continuation, on the other hand, benefits management cycle that lay the foundation for future
business improvement. This leaves the system open for improvement in future and to make the
PPM process better as the technology also increases (Khatib & Hatemi, 2014).
Fourthly, benefits management evaluate the project benefits and the realization of the
company goals as a reflection of company goals. Benefit management help organization realize
its goals through reduced time wasted, increase efficiency, optimal resource utilization and
innovation. Usage of benefits management through Teamcenter has made the time spent on
project evaluation reduced that work in line with organization's goals. Optimization of portfolio
evaluation process it tied to high efficiencies as errors are limited and this enables the system to
produce the desired result. Resources are properly utilized through benefit management and this
makes the organization to realize the project benefits while using minimal resource possible.
Lastly, benefits management uses innovative ideas that are consistent with organization's goals
of utilization of innovative ideas. Siemens Australia basically encourages innovation and this

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 8
also part of the back bone of research that lead to the development of Teamcenter (Rajegopal,
McGuin & Waller 2007).
Portfolio Management
Firstly, project portfolio management coordinates all the managerial operations of the
project to ensure that project lifecycle is maintained. PPM is coordinative in nature that
coordinates all the activities that form the basis of project management. In order to ensure that
all the projects are in line with strategy, the portfolio management organizes the operations,
works on risk management, portfolio optimization, prioritization and project selection. Portfolio
management though is incorporated in the software, the program coordinates all the operations
within the project. Teamcenter manages the risk that might be associated or encountered in the
project whether financial or strategic risks. PPM used in the organization also prioritizes on the
portfolio that is used in the organization based on the organization’s goals. The portfolio
management also determines the project that is selected and this also works in accordance with
the organization's objectives (EPMC, 2011).
Secondly, project management office has been introduced into the project through
business administration projects that manage organization projects. According to definition
project management office (PMO) standardize project based on the governance process and this
is divided into two within the organization (Blomquist & Müller, 2006). The primary PMO is
introduced into the project through the office of business administration projects. The second
aspect of PMO is within the Teamcenter software itself where it is made of interface that allows
sharing of resource and evaluation or management of projects. In addition, according to
50Lessons (2009), PMO assist management and support projects a function that is fully

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 9
dedicated to Teamcenter. This leaves the proof that project management office has been
introduced into the project (EPMC, 2011).
Thirdly, both qualitative and quantitative skills are key aspect the project management
process through technological management. Quantitative skills or tools are within the
computerized system itself since the program utilize data and analyze to reconcile both the initial
stages of the project with execution stage of the project. Teamcenter evaluates the project based
on the data generated from the system this applies the quantitative skills in portfolio
management. Qualitative skills used in the PPM are based on the software itself and the
principles under which it is built. The software is developed in line with the literature that
provides the basis for project portfolio management. The two techniques work in a collaborative
manner that all the programs to automate the product development process (McNeil, Frey &
Embrechts, 2015).
Maturity Levels
Firstly, the maturity level of the organization is Level 4- Optimization which is
characterized by project optimization tools. The organization is characterized by the system,
resource and time optimization. The model used in the projects of this organization uses data to
evaluate the process in an optimized manner and this is another character of optimization level of
organization (Becker, Knackstedt & Pöppelbuß, 2009). Communication within the organization
uses an effective channel that allows proper coordination of projects. This is enabled using the
digitalization of the PPM as the whole system is like to the application software itself allowing
effective communication. Teamcenter continuously gives the progress report since the programs
are automated not as in case of manual PPM that require the evaluation process to be done at the

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 10
specific time. Optimization level of the organization maturity also uses quantitative data that is
evident within the Teamcenter software (Mettler, 2011).
Secondly, the best practice that can be adopted for the organization is OPM3. Adoption
of the practice helps Siemens Australia or the entire organization to develop a framework for
improving the performance of Teamcenter. The OPM3 is model giving the ingredients required
to come up with the best project portfolio management system that incorporates other changes.
This implies that though the use of Teamcenter has been effective, much need to be done to
improve its performance to accommodate the necessary shortcomings of the system. This is
where OPM3 is coming in to allow the organization plan and come up with the roadmap
detailing the necessary steps for the improvement (Lahrmann et al, 2010).
Thirdly, when implementing PPM with OPM3 model, there is a need for goodwill from
both management and digitalization department that develop and maintain Teamcenter. The
management will have to approve the necessity of improvement and development of roadmap.
The digitalization department will incorporate changes into the program through republishing the
software with new changes and install the new Teamcenter. This will improve maturity level as
the organization still remain with one step to reach the peak of maturity level five (Hamilton,
2004).
Corporate Culture
Firstly, the corporate culture for Siemens Australia can be described as constructive
safety culture. The organization is known in Australia and globally for its work-oriented culture
that moderate safety and personal work life. Most employees attest that corporate culture of the
organization has been on the course to harmonize workplace culture and employee work culture.

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 11
The overall idea is meant to create a constructive safe working environment that promotes better
working environment (Rajegopal, McGuin & Waller, 2007). The implementation of Teamcenter
serves to maintain the corporate culture through the ideas create a different reaction among
internal stakeholders. Some of the differences that are mostly to rise within internal stakeholders
begin with a human resource manager that will have few human works as the machine takes
over. Technology manager has the task to maintain the automated system in accordance with the
organization's objectives. The accountant has to devise new ways to link the system with
accounting monitor system to ensure all financial records are up to date (O'Donovan, 2006).
Secondly, changes in the corporate culture especially in project portfolio management. In
order to fully utilize the PPM, there is a need to some changes will be affected particularly
sustainability aspect that has been silent in the Teamcenter. The corporate culture though
currently concentrate on work and working within the organization should be broader that brings
other aspects that are outside the bracket of the organization into the society. Another area that
needs much concern is customer feedback mechanism into the system especially in the
sustainability section (Project Management Institute, 2011).
Thirdly, project portfolio management that monitors all portfolios and incorporates
customer’s feedback will support sustainability criteria. Feedback is an important system since it
enables the organization to understand the weakness of its system for improvement. As the
company uses its Teamcenter software, the organization needs to fully incorporate sustainable
criteria that form the basis of society or community involvement. In generating sustainable
renewable energy members of the public need to form part of the system. This is not necessarily
the public but also other stakeholders that are key to the organization and therefore should give
their comments on the project (Keating, Quazi, Kriz, & Coltman, 2008).

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 12
Fourthly, there are some challenges in getting sustainability criteria and the PPM
embraced in the organization. The primary challenge to the adoption is resistance to change as
most people in the organization especially the management itself. The management needs
convincing explanation on the need to change what to them has proved working. The resistance
also arises on the profitability of the sustainability criteria as the organization management
normally weigh the advantages of the project against to the organization as opposed to the
normal primary society benefit (Schipper et al, 2012).
Effect or outcome of the PPM
The overall effect of the project and changes that are incorporated to change the PPM
will lead to increased efficiencies. Most stakeholders will feel part of the system with the
inclusion of strong sustainability criteria. Feedback is the primary outcome of the new
Teamcenter that will result in the new portfolio management system. Another effect of the
adoption of the system is a reduction of time that would be used in conducting customer
satisfaction research as the feedback tells all the necessary feedback. One negative effect of
adopting the system is additional resources that need to be added to the initial budgeted PPM
(Project Management Institute, 2013).
Conclusion
In conclusion, portfolio management as a current phenomenon has proved that
management of multiple projects is nowadays easy. Siemens Australia as a subsidiary of global
Siemens has taken PPM a higher level with most work based on the computerized automated
system. In addition, the PPM has been incorporated into sustainable development aspect that
works in hand with society and environmental development. Teamcenter software has nearly all
the managerial skills that allow it, monitor, manage and evaluate the project portfolio.

SUSTAINABILITY AND PORTFOLIO MANAGEMENT 13
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