barely sufficient portfolio management todd little and kent mcdonald so many decisions, more time...

Barely Sufficient Portfolio Management

Todd Little and Kent McDonald

So many decisions, more time than we

thought

By the Book Gaming Pools for Fools Tools for Pools By my Fantasy You Betcha

The Problem(s)

The Development Funnel

Evaluation andEvaluation andSelectionSelection

DevelopmentDevelopmentProjectsProjects

New ProductsNew Products/Services/Services

Real Funnels: Group B

Research

Customer

MarketingEngineering

StrategicPlanning

OEM

QualityControl

Cont.

Real Funnels: Group C

Central Research

Local Inputs

Board Heat

Product "A"

Competitor Boot

NIH Resistor(abrasion;

slows down the flow)

Tech Prod'n Log Sales

LAUNCH HERE

RELAUNCH HERE

1 1/2 – 2 years 2 – 3 hours

8 –12 months

leaky

What can we do to get useful Portfolio Management?

Value Models?

Value Model

Business Value

CostsCosts

Benefits

How Do You Determine Costs?

How Do You Determine Benefits?

A Value Model?

Line Change

Value Model!

Value Model

Considerations

Purpose

Considerations

Cos

tsC

osts

Ben

efits

What do we do?

When do we do it?

When do we

decide?

Decisions, Decisions, Decisions

What do we do?

When do we do it?

When do we decide?

Real Options

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?

Considerations

RisksRisks AssumptionsAssumptions ConstraintsConstraints

Risks – Types of Uncertainty

Cost/Time Uncertainty

General Market Uncertainty

Feature Acceptance Uncertainty

Purpose-Based Alignment

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiating

ParityWho Cares?

Partner

Purpose Does Not Equal PriorityPurpose Does Not Equal Priority

Example: Health InsurancePurpose Alignment

MarketDifferentiating

High

Low

Mission CriticalLow High

PharmacyDental

DisabilityInsurance

Healthcare analytics

Member Medical Home

Claims ProcessingEnrollment

Customer Service

Example: Apple

MarketDifferentiating

High

Low

Mission CriticalLow High

MS OfficeATTIntel

Peripherals

New Product Design User ExperienceContent Distribution

Software

Manufacturing

By the Book GamingProduct Line 2008

Head Count

2008 Revenue

($Thousands)

2009 Revenue Target

($Thousands)

2010Revenue Target

($Thousands)

Pools for Fools

8 8,000 12,000 18,000

Be My Fantasy

8 0 4,000 6,000

Tools for Pools

8 0 0 0

You Betcha

8 2,000 4,000 6,000

Total 32 10,000 20,000 30,000

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 2009 (20 minutes) Revisit Investment Options (20 minutes) Simulate 2010 (20 minutes) Debrief (30 minutes)

Iteration 1

Iteration 2

Debrief/Retrospective

Buy the Book:Stand Back and Deliver

New book by Pixton, Nickolaisen, Little, and McDonald

Published by Addison Wesley in Early 2009

Drafts:

www.accelinnova.com /booklogin.php

Contact

Todd Little www.toddlittleweb.com 713-504-5365 tlittle@lgc.com

Kent J McDonald: www.knowledgebridgepartners.com www.accelinnova.com 515.229.6929 kent@knowledgebridgepartners.com