1、PORTFOLIO&STRATEGY ALIGNMENT IN NPDHow to maximize your Investments and reach your Objectives by using an efficient portfolio managementLaurent Triouleyre27 10 2019大家好!PresenterPresenter20 years experience in PPM with Planisware.Portfolio management&Strategy process implemented for Customers such as

2、 Huawei,Philips,Ferring,Teva Laurent Triouleyre Project Director Laurent.TriouleyrePPortfolio&strategy alignment in NPD2Portfolio&strategy alignment in NPD3ABOUT PLANISWARE500+Clients 500+Clients supportedworldwideWorldwidePartner Partner NetworkNetwork22 years22 yearsof experienceISO 27001 ISO 2700

3、1&SOC II&SOC IIcertifiedPrivately ownedsoftware software companycompanyRecognized as aMarket LeaderMarket Leaderby analysts400+400+employees$80M$80Min revenuesin 2018Portfolio&strategy alignment in NPD4GLOBAL OFFICES:12+ManchesterMontrealSan FranciscoDenverParis(Headquarter)NiceMunichTunisTokyoPhila

4、delphiaDubaiHong KongNew OfficesLong-Standing OfficesPortfolio&strategy alignment in NPD5RECOGNIZED MARKET LEADERThe Magic Quadrant For PPM,Worldwide,2019The Forrester WaveTM:Strategic Portfolio Management Tools Q3 20176AGENDA Expected benefits,lessons learned 5 Align your Portfolio and your Strateg

5、ies 4 Define your Portfolio Define your Strategies 2 Introduction&Definitions 1 3Portfolio&strategy alignment in NPDPortfolio&strategy alignment in NPD7DEFINITION Portfolio management Portfolio management process by which a business identifies,selects and decides the optimal mix of products,innovati

6、on programs,projects to realize its strategic objectives.It is an active approach of deciding what will happen in the future(vs Portfolio reporting passive approach of reviewing what is happening or has already happened)Portfolio&strategy alignment in NPD8INTRODUCTION Companies use portfolio managem

7、ent to answer questions about their project portfolios Are our project investments aligned with our strategic business priorities?Is our portfolio aligned with market opportunities and needs?Will our portfolio provide the best return to shareholders and the company?How do we maximize productivity?Ho

8、w do we know when we have reached the limit of our capacity to deliver?How can we limit project spending without jeopardizing performance and growth?What can be done to keep short run crises from crowding our long run needs?“.Resource management across Development projects is very important to deliv

9、er Products on time.But the greatest impact on a portfolio value is to select higher added-value projects,not manage resources”Portfolio&strategy alignment in NPD9PORTFOLIO MANAGEMENT EXPECTATIONS real-time data connects development and commercial investments is about making strategic choices provid

10、es a decision framework to effectively allocate amongst multiple priorities is about making decisions,including stopping projects and reallocating resources to other projects yields good balance between defending the core business and creating new business opportunitiesPortfolio&strategy alignment i

11、n NPD10PORTFOLIO MANAGEMENT PILLARS Good strategy will always add more value than good resource managementStrategy&Portfolio managementSTRONG PMO FUNCTIONAL FOUNDATIONPMOProject managersSTANDARDS(common shared process,data,KPI)unique&structured PMO ToolPortfolio&strategy alignment in NPD11Project(Ex

12、ecution)ManagementProgram Portfolio Management(Within the business)Business Portfolio Management(Above the business)Business&Innovation StrategyPortfolio ManagementInnovation StrategyPM&SGPortfolio ManagementPortfolio ManagementLevelLevelObjectivesObjectivesBusiness ProgramsOptimize priorities for b

13、usiness program/market segments/geographies to deliver on strategic targets drive choices and priorities,roll up of offeringsOfferings(“what we sell”)Optimize offerings pipeline (potential/planned/committed/current/obsolete)to deliver on strategic targets drive choices and priorities,roll up of inno

14、vation projectsProjectsOptimize innovation projects pipeline(potential/planned/committed/running)to implement the integratedofferings roadmap within given constraints/review alternative scenariosPORTFOLIO MANAGEMENT FOCUSSES ON THE OPTIMIZATION OF A PORTFOLIO OF PROGRAMS WITHIN A BUSINESSPortfolio&s

15、trategy alignment in NPD12DEFINE YOUR STRATEGIES2Portfolio&strategy alignment in NPD13DEFINE YOUR STRATEGIES Each strategy must be identified and specified by,at least Clear key objectives Measurable KPIs(including economic values)Budget&Investments numbers Timeline(Roadmaps)Risks&Opportunities Each

16、 strategy must be shared and known through the Enterprise Keep in mind a strategy must be dynamic(Competition,market,Technology,Customer needs)Portfolio&strategy alignment in NPD14STRATEGY:FEW EXAMPLES Market share New Market penetration Customer needs(Price,Environment,added value)Product lines By

17、risk(Cash cows,Stars,Line extension vs Game changers)Technologies,Type of Innovations Cost reductions Time to MarketPortfolio&strategy alignment in NPD15HOW TO SET PORTFOLIO STRATEGIC TARGETS High level roadmapPortfolio&strategy alignment in NPD16HOW TO SET PORTFOLIO STRATEGIC TARGETS High level roa

18、dmapPortfolio&strategy alignment in NPD17HOW TO SET PORTFOLIO STRATEGIC TARGETS Strategic Buckets How BU executives want“their”money invested across different axis to align expenses with strategic goals.These axis could be Business Units,Product lines,Technologies,Markets,Portfolio&strategy alignmen

19、t in NPD18STRATEGIC BUCKETSBuckets align development with budgetsAcme Hi Tech$1,000,000SwitchesInfrastructureRoutersData Center MonitoringSecurity AppliancesFirewallsNetwork SecurityStorage DevicesOverall Company 2020 NPD BudgetPortfolio&strategy alignment in NPD19STRATEGIC BUCKETSBuckets align deve

20、lopment with budgetsCompany 2020 NPD Budget broken down into“buckets”Acme Hi Tech$1,000,000Switches$100,000Infrastructure$200,000Routers$150,000Data Center Monitoring$150,000Security Appliances$300,000Firewalls$100,000Network Security$200,000Storage Devices$100,000Portfolio&strategy alignment in NPD

21、20WHEN REVIEW A STRATEGY?Sample questions:Has enterprise strategy shifted in terms of objectives,opportunities,or threats?Have program capabilities or outputs drifted away from strategic goals?Do business process redesigns or integrations undermine other objectives,operations,or strategic alliances?

22、Does the Program Charter agreement among key stakeholders still hold?Portfolio&strategy alignment in NPD21DEFINE YOUR PORTFOLIO3Portfolio&strategy alignment in NPD22PORTFOLIO ARCHITECTUREPortfolio levelsPortfolioIndustryLevel 1Level 2Level 3SeriesTransverse projectsProjectsReleaseTechnologyBuilding

23、blockOfferingsStrategyStrategyWhat we sellWhat we sellHow we produceHow we producePrograms ResourcesWhat we useWhat we useProject portfolio(HR,Budget,Risk,pipeline)1:n1:nProduct/ServicesSolution(Optional)Operational levelsIndustryMarketBUWorldwideMain regionsCountryCompanyBGBUPortfolio&strategy alig

24、nment in NPD23PORTFOLIO RELATIONSHIPS Dependencies between portfolio elements must be identified in order to Measure consequences of any decision on the overall portfolio(Strategy,Product line,Marketing,Supply chain,Technology,R&D,Support activities)Measure the total costs/investments needed to deli

25、ver a Production/solution/service Measure consistency of any decision(go for one element but kill for one of its prerequisites)Portfolio&strategy alignment in NPD24PORTFOLIO CONSOLIDATION AXIS A breakdown structure is a way to structure information in a hierarchical fashion It is also very useful to

26、 split down Budget and Objectives and to consolidate Forecasts(Revenues,Expenses)and RisksDifferent levels to consolidate the dataProduct line,etc.Product typeCorporateCompanyIndustry type 1Product line AProduct line BIndustry type 2Product line CProduct line DPortfolio&strategy alignment in NPD25PO

27、RTFOLIO METADATA Additional Breakdown structures are frequently utilized to organize Products(Lifecycle,Domain,Innovation pillar,Product type)Very important for portfolio reporting,prioritization and scenarios Identify breakdown structures For example:Dept 1Dept 1Dept 2Dept 2Dept 3Dept 3Dept 4Dept 4

28、ProgramProgram 1 1Product 1Product 2Product 3Program 2Program 2Product 4Product 5Program 3Program 3Product 6Product 7Program 4Program 4Product 8Product 9Product 10Product 11Program 3 Program 3 portfolioportfolioDept 2 Dept 2 portfolioportfolioPortfolio&strategy alignment in NPD26HOW TO REVIEW PORTFO

29、LIO VALUE Evaluate“periodically”the following key aspects Strategic alignment Benefits Technologies Environment Finance Changes since last review,overall performance and trend Determine authorization(Go/No-Go),Prioritization(Sooner/later)and Scope(Budget,Objectives)Take decision(No action=Failure)Po

30、rtfolio&strategy alignment in NPD27ALIGN YOUR PORTFOLIO WITH YOUR STRATEGIES4Portfolio&strategy alignment in NPD28BEST PRACTICESPortfolio Architecture1Scoring,business case,prioritisation2Cost/Resource capacity planning3Portfolio views and reporting5Investment scenarios4Multinational Inc.PortfolioDi

31、v.1 ReleasesMulti-Divisional PlatformsDiv.2 ReleasesDiv.3 ReleasesDiv.1 LifecycleDiv.2 LifecycleDiv.3 LifecycleCorporate ITBusinessDiv.1 SustainingDiv.2 SustainingDiv.3 SustainingVenturesDiv.1 Technology Div.2 Technology Div.3 TechnologyBusiness Process ImprovementDiv.1 OtherDiv.2 OtherDiv.3 OtherSu

32、pply Chain Division 1 Sub-PortfoliosDivision 1Division 2Division 3CorporateStrategic PrioritiesPortfolio&strategy alignment in NPD29PROCESSStrategiesDefinition&ChangesPortfolio Categorization&IdentificationData input,consolidationForecast and PredictionestimatesWhat If analysis,Risk-adjustmentScenar

33、io validationPortfolio&strategy alignment in NPD30PORTFOLIO PROCESS FLOWDefine strategyBudget Top down allocationProgram scorecardProject resource forecasts&costsComparison Top-down vsBottom upApprove portfolio scenarioExecutive managementBU+Executive managementProduct or Technology linesR&DFinanceS

34、ales&MarketingPreparationDecision cyclePortfolio executionStrategy planWhat-ifProduct revenuesProduct/Technology business casesResource capacity definitionDetailed budget allocationProductHRUpdateResource capacityExistingResource capacityStrategy alignmentProjectMonitor portfolioRevenuesIdeas&Propos

35、alsscorecardInvestment scenario&what-ifBucketResource managementProfit&LossScorecardIdeationPortfolio&strategy alignment in NPD31TOP-DOWN&BOTTOM-UP PROCESSESDefine strategic axis(bucket structure)Input budget on strategic axisTop down allocationBucket versionsDefine Product scorecardCreate Products

36、and Link them to Strategic axis Bottom-up consolidationInput project scoresBusiness CasesComparison:Top-down allocation vsBottom up consolidationGenerate Product ScenariosApprove ScenarioPortfolio&strategy alignment in NPD32HOW TO MEASURE YOUR PRODUCT LINE STRATEGIC COMPLIANCE?What will be the outco

37、me of the product?Identification(Main characteristics,lifecycle phase,next gate)Description of the deliverables(Product/Service)Scorecard When will it be available?High Level Timeline Dependencies At what cost?Business casePortfolio&strategy alignment in NPD33PRODUCT LINE SCORECARD EXAMPLEExample of

38、 CriteriaObjectiveTechnologyCore competency,Design,Technical feasibility,PTS,New Technology or already used one Product managementBusiness impact,Customer needs,Customer value,Customer benefitsManufacturing/Supply chainInternal skill,technology required,cogs high estimatesMarketingMarket size,growth

39、,maturity,corporate strategy alignment,competitors,legal constraints,patent limitationsEvaluate the key technical properties of the Product and the required skillsEvaluate the Customer needsEvaluate competencies,difficulties to produce it as well as COGS Evaluate competitor landscape,Market size,mat

40、urity,legal&patentFinancialsFull-horizon NPV,ROI&IRR for the most likely scenario,Opportunity,Risk,Resource needsSet of financial criteria and metricsPortfolio&strategy alignment in NPD34PRODUCT LINE BUSINESS CASE EXAMPLE TAM/SAM/SOM Total Investments R&D Expenses Manufacturing,Marketing.Total Reven

41、ues Product Revenues Service Revenues BenefitsTAMSAMSOMTotalTotal AddressableAddressable MarketMarketThe TAM is the value of the entire Marketor the total possible demand for yourproduct or service.ServiceableServiceable AddressableAddressable MarketMarketThe SAM is the portion of the TAM that youca

42、n actually reach with your product orservice.Typically limited by geography anddemographicsServiceableServiceable ObtainableObtainable MarketMarketThe SOM is your Market share,the portionof the SAM that you will acquire with yourproduct or service.Portfolio&strategy alignment in NPD35WHAT-IF ANALYSI

43、S Strategy changes Markets Products lines Objectives Competitors Regulatory Product line scenarios:pessimistic,neutral,optimistic Revenues estimates vs R&D Expenses estimates Must-do(Regulatory,Legal,Process,Executive decision)Portfolio&strategy alignment in NPD36SCENARIO COMPARISON&VALIDATION 3 Goa

44、ls to highlight for each scenario Value of the Portfolio Right balance and mix of Products Strategic alignment Different ways to measure them Waterline,Efficient frontier Matrix(BCG,McKinsey)Scenario comparisonPortfolio&strategy alignment in NPD37PORTFOLIO KPISSources of portfolio KPIs include:Finan

45、cialFinancial P&L(Business case)provide required financial values.For some portfolio views,financial values may come from external systems like ERP ScorecardsScorecards Scoring models provide non-financial data such as market attractiveness,technical and market newness and strategic fit Product attr

46、ibutes Product attributes attributes like product lifecycle phase,product type,horizon,product line and business unit help sort,slice and dice the portfolio Resource plans Resource plans project resource data provides visibility into resource allocation,bottlenecks and productivity ratiosHelp Manage

47、 Your BusinessPortfolio&strategy alignment in NPD38SAMPLE PORTFOLIO KPIS FinancialFinancial typically from the product P&L or financial model NPV ROI IRR Net profit margin Incremental sales Sales and Sales growth Total investment ECV(Expected Commercial Value)Payback period SG&A to sales ratio Strat

48、egicStrategic typically from scorecards and product attributes Scorecard alignment Financial buckets“Out of Plan”Vitality Index BalanceBalance-typically from scorecards and product attributes Project Types Risk/Reward Newness HorizonsPortfolio&strategy alignment in NPD39QUESTIONS TO KILL A PRODUCT-E

49、XAMPLE Have potential benefits of other opportunities eclipsed those of the program?Have benefits become less likely in the shifting risk environment?Were benefits exaggerated/oversold in original business case?With greater clarity,do potential gains seem shrunken?Portfolio&strategy alignment in NPD

50、40ROI&LESSONS LEARNED5Portfolio&strategy alignment in NPD41STRATEGIC PORTFOLIO-ROI Data quality improved Data transparency Single source of truth Portfolio structuration Strategy&key objectives shared across the whole company Live reports and dashboards Focus on Data analysis,Scenario,what-if analys

51、is(not on data collection)Portfolio ROI Improved Time to market reducedPortfolio&strategy alignment in NPD42PMO TOOL Using a single tool to support your decision allow to Structure Portfolio on different dimensions Harmonize evaluation of Portfolio elements Support more efficiently decisions Quickly

52、 take into account changes in the environment(Market,Competitors,Regulatory,Strategy)Deliver a single strategic view of the portfolio Integration of Market pull and Technology push in the corporate front end and innovation management systemPortfolio&strategy alignment in NPD43FEEDBACK“First company

53、wide rational and strategic linked arbitration with a real involvement of the whole implied managers”“High level viewpoint and long range analysis(more than the usual 3 months)taking into account the real ruptures and not only the day to day basic concerns”“Provide an new exchange areas to share the

54、 various reality and viewpoint of the whole Business Units(Marketing managers/Product projects managers/Technical managers ie.IS/IT,Content”“Real time and transverse decision making=efficient decisions”Portfolio&strategy alignment in NPD44Q&A6Portfolio&strategy alignment in NPD45BIBLIOGRAPHY&USER TE

55、STIMONIALS Adept Group Forrester,Gartner Huawei Philips Safran Sanofi Sunovion T 谢谢THANK YOU46Portfolio&strategy alignment in NPD47Portfolio&strategy alignment in NPDPARETO CURVE:REVENUES48Portfolio&strategy alignment in NPDBCG MATRIX49Portfolio&strategy alignment in NPDEXECUTIVE DASHBOARD50Portfolio&strategy alignment in NPDSTRATEGIC ALIGNMENT51Portfolio&strategy alignment in NPDSCENARIO COMPARISON52Portfolio&strategy alignment in NPDSCENARIO ANALYSIS53Portfolio&strategy alignment in NPDWATERLINE ANALYSIS54Portfolio&strategy alignment in NPDEFFICIENT FRONTIER