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

So many decisions, more
time than we thought
Barely Sufficient Portfolio
Management
Todd Little & Kent McDonald
The Problem(s)
The Development Funnel
Evaluation and
Selection
Development
Projects
New Products
/Services
Real Funnels: Group B
Quality
Research Control
OEM
Customer
Cont.
Marketing
Engineering
Strategic
Planning
Real Funnels: Group C
1 1/2 – 2 years
Central
Research
leaky
8 –12 months
2– 3
hours
NIH
Resistor
RELAUNCH
HERE
(abrasion;
slows
down the flow)
LAUNCH
HERE
Product "A"
Tech
Prod'n
Local
Inputs
Competitor
Boot
Board Heat
Log
Sales
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?
Considerations
Risks
Assumptions
Constraints
Risks – Types of Uncertainty
Cost/Time Uncertainty
General
Market
Uncertainty
Feature Acceptance
Uncertainty
Purpose Alignment Model
High
Partner
Differentiating
Who Cares?
Parity
Market
Differentiating
Low
High
Low
Mission Critical
Purpose Does Not Equal Priority
Graphically - Before
High
Project Tracking
Document Mgmt
Document Edit
Document Library
Search
EDGAR Integration
Market
Differentiating
Low
High
Low
Mission Critical
Graphically - After
High
Portal
Market
Differentiating
Document Edit
Project Tracking
Document Mgmt
Document Library
Search
EDGAR Integration
Low
High
Low
Mission Critical
Result: Better product in half the time and
60% of the original cost
Example: Apple
High
New Product
Design
User Experience
Content
Distribution
ATT
Market
Differentiating
Peripherals
Other Software
MS Office
Intel Hardware
Low
High
Low
Mission Critical
By the Book Gaming
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Action
Infrastructure
Fantasy
You Betcha
By the Book Gaming
Product Line
2009
Head
Count
2009
Revenue
($Thousands)
2010
Revenue
Target
($Thousands)
2011
Revenue
Target
($Thousands)
Action
8
8,000
12,000
18,000
Fantasy
8
0
4,000
6,000
Infra
8
0
0
0
You
Betcha
Total
8
2,000
4,000
6,000
10,000
20,000
30,000
32
Simulation
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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
 www.toddlittleweb.com
 +1713.504.5365
 [email protected]
Kent McDonald
 +1.515.229.6929
 [email protected]