Barely Sufficient Portfolio Management Todd Little & Kent McDonald So many decisions, more time than we thought

The Problem(s)

The Development Funnel Evaluation and SelectionDevelopmentProjects New Products /Services

Real Funnels: Group B Research Customer Marketing Engineering Strategic Planning OEM Quality Control Cont.

Real Funnels: Group C Central Research Local Inputs Board Heat Product "A" Competitor Boot NIH Resistor (abrasion; slows down the flow) TechProd'nLogSales LAUNCH HERE RELAUNCH HERE 1 1/2 – 2 years2 – 3 hours 8 –12 months leaky

What can we do to get useful Portfolio Management?

Value Models?

A Value Model?

Decisions, Decisions

Decisions, Decisions, Decisions What do we do? When do we do it? When do we decide?

Deciding Is Not a Once in a Lifetime Event  Knowledge Improves  Business Conditions Change  Project Conditions Change  Do You Know Why You Are Deciding Early?

ConsiderationsRisksAssumptionsConstraints

Risks – Types of Uncertainty Cost/Time Uncertainty General Market Uncertainty Feature Acceptance Uncertainty

Purpose Alignment Model Market Differentiating High Low Mission Critical Low High Differentiating ParityWho Cares? Partner Purpose Does Not Equal Priority

Graphically - Before Market Differentiating High Low Mission Critical Low High Project Tracking Document Mgmt Document Edit Document Library Search EDGAR Integration

Graphically - After Market Differentiating High Low Mission Critical Low High Result: Better product in half the time and 60% of the original cost Document Edit Project Tracking Document Mgmt Document Library Search EDGAR Integration Portal

Example: Apple Market Differentiating High Low Mission Critical Low High ATT Peripherals New Product Design User Experience Content Distribution Other Software MS Office Intel Hardware

By the Book Gaming  Action  Infrastructure  Fantasy  You Betcha

By the Book Gaming Product Line2009 Head Count 2009 Revenue ($Thousands) 2010 Revenue Target ($Thousands) 2011 Revenue Target ($Thousands) Action88,00012,00018,000 Fantasy804,0006,000 Infra8000 You Betcha 82,0004,0006,000 Total3210,00020,00030,000

Simulation  Get into teams  Choose a representative to the Portfolio Team  Prepare your case (25 minutes)  Pitch your case (20 minutes)  Break (finalize investment)  Simulate 2010 (20 minutes)  Revisit Investment Options (20 minutes)  Simulate 2011 (20 minutes)  Debrief (30 minutes)

Iteration 1

Iteration 2

Debrief/Retrospective

Buy the Book: Stand Back and Deliver Todd Little    Kent McDonald  