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

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

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

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

Barely Sufficient Portfolio Management

Todd Little & Kent McDonald

So many decisions, more time than we

thought

Page 2: Barely Sufficient Portfolio Management Todd Little & Kent McDonald So many decisions, more time than we thought.

The Problem(s)

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The Development Funnel

Evaluation andEvaluation andSelectionSelection

DevelopmentDevelopmentProjectsProjects

New ProductsNew Products/Services/Services

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Real Funnels: Group B

Research

Customer

MarketingEngineering

StrategicPlanning

OEM

QualityControl

Cont.

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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

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What can we do to get useful Portfolio Management?

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Value Models?

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A Value Model?

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Decisions, Decisions

Page 10: Barely Sufficient Portfolio Management Todd Little & Kent McDonald So many decisions, more time than we thought.

Decisions, Decisions, Decisions

What do we do?

When do we do it?

When do we decide?

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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?

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Considerations

RisksRisks AssumptionsAssumptions ConstraintsConstraints

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Risks – Types of Uncertainty

Cost/Time Uncertainty

General Market Uncertainty

Feature Acceptance Uncertainty

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Purpose Alignment Model

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiating

ParityWho Cares?

Partner

Purpose Does Not Equal PriorityPurpose Does Not Equal Priority

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Graphically - Before

MarketDifferentiating

High

Low

Mission CriticalLow High

Project TrackingDocument MgmtDocument EditDocument Library SearchEDGAR Integration

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Graphically - After

MarketDifferentiating

High

Low

Mission CriticalLow 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

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Example: Apple

MarketDifferentiating

High

Low

Mission CriticalLow High

ATT

Peripherals

New Product Design User ExperienceContent Distribution

Other SoftwareMS OfficeIntel Hardware

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By the Book Gaming Action Infrastructure Fantasy You Betcha

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By the Book GamingProduct Line 2009

Head Count

2009 Revenue

($Thousands)

2010 Revenue Target

($Thousands)

2011Revenue Target

($Thousands)

Action 8 8,000 12,000 18,000

Fantasy 8 0 4,000 6,000

Infra 8 0 0 0

You Betcha

8 2,000 4,000 6,000

Total 32 10,000 20,000 30,000

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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)

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Iteration 1

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Iteration 2

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Debrief/Retrospective

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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]