Barely Sufficient Portfolio Management Todd Little

Barely Sufficient Portfolio Management

Todd Little

So many decisions, more time than we

thought

Managing the Coming Storm Inside the Tornado

When will we get the requirements?All in good time, my little pretty, all in good timeBut I guess it doesn't matter anyway

Doesn't anybody believe me?

You're a very bad man!

Just give me your estimates by this afternoon

No, we need something today!

I already promised the customer it will be out in 6 months

No, we need it sooner.

Not so fast! Not so fast! ... I'll have to give the matter a little thought. Go away and come back tomorrow

Ok then, it will take 2 years.

Team Unity

Project Kickoff

We’re not in Kansas Anymore

My! People come and go so quickly here!

I may not come out alive, but I'm goin' in there!

The Great and Powerful Oz has got matters well in hand.

"Hee hee hee ha ha! Going so soon? I wouldn't hear of it! Why, my little party's just beginning!

Developer HeroReorg

Testing

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?

Framework for ConversationsFramework for Conversations

Purpose

Costs and Benefits

ConsiderationsWhen do we do it?

When do we decide?

Decisions, DecisionsWhat do we do?

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

ATT

Peripherals

New Product Design User ExperienceContent Distribution

Other SoftwareMS OfficeIntel Hardware

By the Book Gaming Action Infrastructure Fantasy You Betcha

By the Book GamingProduct Line 2008

Head Count

2008 Revenue

($Thousands)

2009 Revenue Target

($Thousands)

2010Revenue 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

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

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 www.accelinnova.com +1713-504-5365 [email protected]