Barely Sufficient Portfolio Management

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So many decisions, more time than we thought
Barely Sufficient Portfolio Management Todd
Little
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Managing the Coming Storm Inside the Tornado
Project Kickoff
Team Unity
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Were not in Kansas Anymore
Developer Hero
Reorg
Testing
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The Problem(s)
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The Development Funnel
Evaluation and Selection
Development Projects
New Products /Services
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Real Funnels Group B
Quality
Control
Research
OEM
Customer
Cont.
Marketing
Engineering
Strategic
Planning
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Real Funnels Group C
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What can we do to get useful Portfolio Management?
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Value Models?
How Do You Determine Costs?
How Do You Determine Benefits?
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A Value Model?
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Decisions, Decisions
What do we do?
Framework for Conversations
When do we do it?
When do we decide?
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Decisions, Decisions, Decisions
What do we do?
When do we do it?
When do we decide?
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Real Options

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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
Risks Assumptions Constraints
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Risks Types of Uncertainty

• Cost/Time Uncertainty

General Market Uncertainty
Feature Acceptance Uncertainty
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Purpose-Based Alignment
High
Differentiating
Partner
Market Differentiating
Parity
Who Cares?
Low
High
Low
Mission Critical
Purpose Does Not Equal Priority
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Example Health InsurancePurpose Alignment
High
Healthcare analytics Member Medical Home
Pharmacy Dental
Market Differentiating
Claims Processing Enrollment Customer Service
Disability Insurance
Low
High
Low
Mission Critical
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Example Apple
High
New Product Design User Experience Content
Distribution
ATT
Market Differentiating
Other Software MS Office Intel Hardware
Peripherals
Low
High
Low
Mission Critical
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By the Book Gaming

• Action
• Infrastructure
• Fantasy
• You Betcha

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By the Book Gaming
Product Line 2008 Head Count 2008 Revenue (Thousands) 2009 Revenue Target (Thousands) 2010 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 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 2009 (20 minutes)
• Revisit Investment Options (20 minutes)
• Simulate 2010 (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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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

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Contact

• Todd Little
• www.toddlittleweb.com
• www.accelinnova.com
• 1713-504-5365
• tlittle_at_lgc.com