Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many...

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Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought

Transcript of Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many...

Page 1: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Gambling Your Future:

Effective Portfolio Management

Todd Little and Kent McDonald

So many decisions, more time than we

thought

Page 2: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

By the Book Gaming Pools for Fools Tools for Pools By my Fantasy You Betcha

Page 3: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

The Problem(s)

Page 4: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

The Development Funnel

Evaluation andEvaluation andSelectionSelection

DevelopmentDevelopmentProjectsProjects

New ProductsNew Products/Services/Services

Page 5: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Real Funnels: Group B

Research

Customer

MarketingEngineering

StrategicPlanning

OEM

QualityControl

Cont.

Page 6: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

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

Page 7: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

What can we do to get useful Portfolio Management?

Page 8: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Value Models?

Value Model

Business Value

CostsCosts

Benefits

How Do You Determine Costs?

How Do You Determine Benefits?

Page 9: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

A Value Model?

Page 10: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Line Change

Page 11: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Value Model!

Value Model

Considerations

Purpose

Considerations

Cos

tsC

osts

Be

nefit

s

What do we do?

When do we do it?

When do we

decide?

Page 12: Gambling Your Future: Effective Portfolio Management Todd Little and 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?

Page 13: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Real Options

Page 14: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

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?

Page 15: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Considerations

RisksRisks AssumptionsAssumptions ConstraintsConstraints

Page 16: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Risks – Types of Uncertainty

Cost Uncertainty

General Market Uncertainty

Feature Acceptance Uncertainty

Page 17: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Purpose-Based Alignment

MarketDifferentiating

High

Low

Mission CriticalLow High

Differentiating

ParityWho Cares?

Partner

Purpose Does Not Equal PriorityPurpose Does Not Equal Priority

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Example: Health InsurancePurpose Alignment

MarketDifferentiating

High

Low

Mission CriticalLow High

PharmacyDental

DisabilityInsurance

Healthcare analytics

Member Medical Home

Claims ProcessingEnrollment

Customer Service

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Simulation Get into teams Choose a representative Prepare your case

Page 20: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Iteration 1

Page 21: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Iteration 2

Page 22: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Debrief/Retrospective

Page 23: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Buy the Book: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

Page 24: Gambling Your Future: Effective Portfolio Management Todd Little and Kent McDonald So many decisions, more time than we thought.

Contact

Todd Little www.toddlittleweb.com 713-504-5365 [email protected]

Kent J McDonald: www.knowledgebridgepartners.com www.accelinnova.com 515.229.6929 [email protected]