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

2. The Problem(s)

3. The Development Funnel Evaluation and SelectionDevelopmentProjects New Products /Services

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

5. 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

6. What can we do to get useful Portfolio Management?

7. Value Models?

8. A Value Model?

9. Decisions, Decisions

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

11. 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?

12. ConsiderationsRisksAssumptionsConstraints

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

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

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

16. 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

17. 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

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

19. 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

20. 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)

21. Iteration 1

22. Iteration 2

23. Debrief/Retrospective

24. Buy the Book: Stand Back and Deliver Todd Little  www.toddlittleweb.com  +1713.504.5365  tlittle@lgc.com tlittle@lgc.com Kent McDonald  +1.515.229.6929  kent@kentmcdonald.com