In this category, you will learn about the three levels of project complexity, the two types of benefits projects can have, and when it’s necessary to partner with Enterprise Architecture.

Project Complexity

There are three levels of project complexity: Tier 1 is the most complex and Tier 3 is the least complex.

Tier 1: programs or highly complex projects

Tier 1 programs and projects are global and strategic in nature, have high impact and visibility, and involve new technology or direction.

Examples include API, Athena (Status Order Tracking), Oracle Cloud, and Fueling Our Futures.

Tier 2: project goals and objectives with some complexity

Examples include wireless standardization, business applications and business processes, some M&A integrations, legal requirement changes, etc.

Tier 3: projects with clear, straightforward scope that leverage available technology and are repeatable

Examples include refreshes, software/hardware upgrades, and large office moves.

If you need advice on assigning complexity to a project, please reach out to the IT PMO.

Benefit Types

Projects typically have one of two types of benefits: the first results in lowered current spending or investment and the second avoids incurring future costs or results in a time savings that allows associates to do other value-added work.

Type 1: Direct P&L revenue and savings

There are three categories of Type 1 savings:

  • Operating income from revenue (selling digital solutions and capabilities to our customers)
  • Incremental pricing
  • Direct expense savings (you spent X amount of dollars last year and can avoid that expense this year after completion of the project) or forecast/budget (the current forecast includes X amount of budgeted expense that is no longer needed as a result of the project)

All Type 1 savings must be isolated, tracked, and fully transparent within the P&L. If claiming increased retention or pricing, you must be able to scientifically demonstrate any such benefits; otherwise these would count as Type 2.

Type 2: Cost avoidance and non-Type P&L savings

There are four categories of Type 2 savings—anything that cannot be isolated and tracked as direct P&L savings:

  • Cost avoidance (avoidance of costs that we would have incurred had we not done the project)
  • Efficiency/time savings (a process takes X fewer minutes/hours to complete because of the project
  • Indirect pricing
  • Customer retention

Indirect pricing and customer retention would be Type 2 if there is no way to isolate the unique impact of the project on these items.

Logging the project benefits is now compulsory for every IT project

The IT PMO will be implementing governance to ensure this is documented. If in doubt, please contact the IT PMO or your Finance partner.

Partnering with Enterprise Architecture

During the project request phase, all projects outside of an existing platform must be reviewed by the Enterprise Architecture Council.

The following would be considered in scope for Enterprise Architecture Council review:

  • New business technology selection (outside of existing enterprise platforms)
  • Decommissioning of existing platforms
  • Major integrations/change in integration strategy
  • Prioritization of proposed architecture changes
  • Contracting/licensing vendor selections and strategic vendor partnerships
  • Consulting arrangements that include technology recommendations or changes
  • Providing input on innovation as necessary

The following would be considered out of scope:

  • Process changes that do not impact technology
  • Project management, including project scheduling and budgeting, delivery planning, resourcing for changes proposed, and contracting/licensing negotiations