invest with confidence

© 2016 Opptiv LLC Proprietary www.opptiv.com © 2016 Opptiv LLC Proprietary www.opptiv.com

#StrategicPortfolioManagement

Make the value leap to an INVESTMENT mindset.

Executive BriefingInvest with Confidence.

© 2016 Opptiv LLC Proprietary www.opptiv.com

Executive Briefing

Executive Briefings are exclusive introductory sessions for Senior Executives and/or direct reports in diverse industries where we present a common challenge, introduce best practice solutions and facilitate discussions.

Overview Description

At Opptiv, we do ONE thing: We help companies invest in the future with confidence through purpose-built strategic portfolio management software, processes and services.

The Executive Briefings defines the key principles, core and supporting operating processes and underlying metrics associated with investment governance, Strategic Portfolio Management and related management disciplines.

Overview Content Description

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E-mail [email protected]

Call us toll-free855-806-3760

All Rights Reserved. All text, images, graphics and other materials in this printed material are subject to the copy-right and other intellectual property rights of Opptiv LLC or their respective owners. These materials may not be reproduced, distributed or modified without the express written permission of Opptiv LLC or their respective owners. The marks appearing in this material including, but not limited to logos, emblems, slogans and names are trademarks of Opptiv LLC, its subsidiaries, affiliates and licensors. The information contained in this publication has been obtained from sources believed to be reliable. Opptiv LLC disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the research and experiential opinions of Opptiv LLC and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Any similarities or adaptation to other marks are referenced under the fair use provisions. All trademarks are the property of their respective owners.

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Meet Team A…

SBU

We focus on short-term

performance and operational efficiencies.


Meet Team B…

© 2016 Opp)v

LLC

What’s Next?

STRATEGY R&D

PRODUCT M&A

FINANCE


CFO

CEO

BOARD

© 2016 Opp)v

LLC

Meet the Teams’ bosses…

We need to invest in

operating AND growing the

company.


So, what happens when it's time to invest finite resources?


Where to invest?

How much?

Are we making

progress?

Strategic guesswork.

© 2016 Opp)v

LLC

© 2016 Opp)v LLC

Where are our risks?


So, what’s the problem?


Investments are spread across “competing” interests…

STRATEGY

M&A

R&D

PRODUCT FINANCE

OPERATORS


…with poor visibility caused by outmoded tools and ad hoc processes...

The GANTT Chart

The Spreadsheet

© 2016 Opp)v LLC


92 percent of CEOs and 88 percent of strategist say communications is

critical to the success of their strategic initiatives …

Firms that actively reallocated capital expenditures across business units achieved an average

shareholder return 30% higher than the average return of companies that were slow to shift funds.

In organizations the focus is now shifting to what is competitive

advantage…that makes the success of the planned

investments more important...

61 percent of respondents admit that their firms often struggle to bridge the gap between strategy formulation and its

day-to-day implementation.

Failure to align and coordinate across units is the greatest challenge to

executing strategy .

…and the strategic stakes are getting even higher.


What’s the solution?


7 Key Principles

Make the value leap to an INVESTMENT mindset with strategic portfolio management.


1

1

With an investment mindset, the basic “project” unit of management becomes the inherently more strategic with “investments” as the basic unit. An investment approach begins with viewing business units, initiatives, or strategic opportunities not as independent entities, but as logical portfolios of investments. This holistic view is a pre-condition for the value-based dialogue, decision-making, day-to-day investment management and governance that maximize value and performance across the portfolio.

Shift from projects to portfolios.


2

1

Successful companies make strategic choices about where and how much to invest their finite resources in order to realize their strategic ambitions. With an investment mindset, companies are equipped to operationalize those choices by informing the difficult trade-offs between what to do and what not to, and rationalizing investment resources between existing sources of revenue and emerging revenue streams in ways that are most closely aligned with strategic success.

Translate strategy into investment choices.


3

1

Companies with investment mindsets can use the power of strategic portfolio management to maximize the performance and value of their investment portfolios by maximizing returns per unit of risk. The principle of risk-return optimization involves maximizing upside revenue capture, while minimizing downside risk exposure by quantifying (in financial terms) the material risks associated with investments, providing insight into the volatility inherent in those investments, and actively mitigating and exploiting risks in ways that turn them into new sources of opportunity.

Turn risk elimination into risk-return optimization.


4

1

At the end of the day, "it's all about execution”. With an investment mindset, execution means taking preemptive action to reallocate resources, adjust course and optimize the portfolio - the opposite of passive management or reacting to competitor moves. Companies can apply active management and promote preemptive action by using value-based metrics and leading indicators to monitor the real-time performance and health of individual initiatives and in aggregate across the investment portfolio.

Achieve superior execution through active management.


5

1

Even after discovering the need for it, many companies don't adjust to changing business conditions, choosing instead to stay locked into unattractive businesses, low-value opportunities, or poorly performing initiatives. Investment-minded companies can help overcome this behavior through the principle of “optionality”. Borrowing from the financial industry concept of "real options” and applied to portfolio execution, this proven management concept provides senior business leaders with options - the “right”, but not the “obligation” to invest, or continue to invest in strategic initiatives based on changing business circumstances.

Exercise real options to adjust to change.


6

1

Responsibility for strategic and commercially-focused initiatives, and the investment resources that they require, is often spread across multiple organizations such as corporate strategy, finance, M&A, product, R&D or individual business units. With an investment mindset, companies can integrate these disparate pools of investments, and bridging critical governance and organizational gaps. With this principle, companies gain a higher level of transparency across the investment life-cycle, allowing CEOs, CFOs, Boards and senior business leaders to make decisions that make the whole greater than the sum of the parts.

Make the whole greater than the sum of the parts.


7

1

Next-generation strategic initiatives, revenue streams and growth platforms are expected to deliver multiple times their actual capital investment in returns. Communicating value and measuring performance in this context requires management in business terms vs. project terms. With an investment mindset, companies can expand their visibility and management focus beyond the traditional costs, schedule and scope of project management to also incorporate the financial, risk, strategy and execution controls to paint a more complete portfolio picture, and answer critical governance and value questions over the investment life-cycle.

Communicate in the language of business.


7

1

6 5 4 3 2 1 Shift from projects to portfolios.

Translate strategy into investment choices.

Turn risk elimination into risk-return optimization.

Achieve superior execution through active management.

Exercise real options to adjust to change.

Make the whole greater than the sum of the parts.

Communicate in the language of business.


So, what happens when companies make the value leap?


They can INVEST in the future with CONFIDENCE.

Opportunities Risk-Return

Strategy Execution

Strategic Portfolio Management

© 2016 Opp)v LLC

$


Opptiv is an award-winning strategic portfolio management company based in Washington, DC. At Opptiv, we do one thing: work across industries and across the globe to help companies realize the transformative and strategic power of portfolio management. To match the complexity and urgency of our mission, we provide the industry's only purpose-built, cloud-based software, processes and consulting services dedicated to helping you operationalize this powerful concept as the engine for strategic growth and enterprise value creation.

Our Featured Solutions: Accelerate time-to-value.


Visit us to learn more and downlaod more content today!

Visit us to set up a consultation.www.opptiv.com




™

OpptivEnterprise™ is cloud-based strategic portfolio management software. Unlike traditional project-based or IT portfolio management tools, this next-generation portfolio management platform was built from the ground up to speak the financial and commercial language that CEOs, CFOs, Boards and other stakeholders understand and really care about.

UNMET NEED UNMET NEED REVENUE STREAM DIS-INVEST STATUS

KPI

MILESTONE

RISKSATURATED

FIND

"See the things that matter"

SHAPE

"Do the right things"

CAPTURE

"Do the right things right"

How does OpptivEnterprise™ Work? PORTFOLIO EXCELLENCE IN THE CLOUD.If you work in strategy, finance, M&A, product or R&D, OpptivEnterprise provides the visibility that you need to build and actively manage your portfolio of next-generation strategic opportunities, revenue streams and growth platforms with confidence. It’s comprehensive, yet intuitive and ready to use on day one. It works the way you want, to translate the concepts that you already know into the value-based visual language that you need to succeed.


QuickStart™ Proof of ConceptStrategic Portfolio Management (SPfM)

Visit us to set up a consultation.www.opptiv.com



Jump-start your Strategic Portfolio Management initiative today!

VISUAL PORTFOLIO REVIEW.

Powered by OpptivEnterprise™Strategic Portfolio Management Software

© 2016 Opp)v LLC

© 2016 Opp)v LLC

© 2016 Opptiv LLC Proprietary www.opptiv.com © 2016 Opptiv LLC Proprietary www.opptiv.com

#StrategicPortfolioManagement

Make the value leap to an INVESTMENT mindset.

Executive BriefingInvest with Confidence.

invest with confidence

Business