Portfolio Management Processes: Archtect then Implement

Brian Montgomery, Director of Product Marketing and Strategy, Blackbaud, Inc.

Just as a well-built, functional building requires both a good blueprint and well-executed and managed building techniques, portfolio selection and management processes require design as well as actual implementation. Also just as buildings must fit into the context of the surrounding landscape and be built with local conditions in mind, processes must be "architected" to fit within the enterprise’s environment and current culture – although judicious bulldozing may be required in both cases!

This session will focus on how to tailor a process architecture and implementation based on:

• Lessons learned in designing, implementing and using portfolio management processes in three different high tech companies.
• Adaptation of processes, techniques, tools and metrics to fit different situations, environments and management personalities.
• Integration of portfolio management into the broader context of strategy, marketing, product development and cross-functional teams.

Creating the Environment for Growth and Innovation through Metrics

Metrics, both output and in-process, are one of the most effective ways for leadership to communicate what really matters, what is expected and what will be rewarded. Used wisely, metrics can bring tremendous alignment, focus and energy to an organization. This presentation will share lessons learned in DuPont on effective and not-so-effective uses of metrics to optimize return on technical investment.

"A very good opportunity to see the problems I face viewed from multiple perspectives and assessed using various solution sets. A thought-provoking experience which when combined with the strong networking opportunity will drive meaningful, continuing refinement to our process."
Ed Laben, Harley-Davidson

Technology vs. Product Portfolio Management

Due to constant market pressure to reduce new product development times, Honeywell has recognized the need to separate technology development from new product development. Today, the ideal project in a new product development pipeline will reuse engineering work from other existing products and utilize only proven technology. Furthermore, the technology pipeline contains projects, which will turn into profit further down the road, and thus, reinforcing the critical need to appropriately manage the technology project portfolio. This presentation will examine and discuss:

• Significant differences in selection and measurement criteria for Product and Technology Portfolios
• Metrics systems for technology projects versus product projects
• Major differences between both management processes and utilized metrics

Les Stewart, Director of European Operations for Sales/Service, Medrad
Wayne Mackey, Principal, Product Development Consulting Inc.

In the fall of 2000, Medrad implemented predictive metrics and a responsive governance system within its supply chain organization. They applied a simple, but effective approach of collecting metrics data electronically and reviewing the data on their company network. By discovering problems early and adjusting resources dynamically to meet those needs, Medrad’s predictive metrics have delivered tangible results. Based on the success of predictive metrics in the supply chain, Medrad rolled out predictive metrics to the entire corporation. This presentation will discuss:

• An overview of the predictive metrics approach used
• Medrad’s metrics implementation timelines and tasks
• Lessons learned in the real-world application of leading edge metrics
• How to simplify the collection and review of metrics using the company network
• Specific examples where predictive metrics identified problems early, allowing rapid corrective actions

"Extremely beneficial to take time away from day-to-day activities to discuss problems with others struggling with the same issues and people who have insights."
Richard Hall, Kendro Laboratory Products

Process and Metrics for Effective New Product Development at Rogers Corporation

Michael Bessette, Director, Product Development in Corporate Technology, Rogers Corporation

Rogers Corporation develops, manufactures and markets advanced circuit materials and high performance foams for the communications and computer markets. Strategies invariably involve technology leadership positions and success requires rapid product development of new products that meet customer needs. To provide management systems necessary for sustaining growth, Rogers developed and implemented a toll-gate/concurrent product development (CPD) process and executive management portfolio reviews to align technical and business strategies. Rogers is currently integrating Design for Six Sigma (DFSS) and Business Process Management (BPM) to identify and track key R&D metrics such as new product sales ratio, value of R&D portfolio and adequacy of pipeline filling. This presentation will highlight:

• Overview of Rogers CPD process, keys to its successes and challenges
• Portfolio review methods which address priority setting and pipeline filling
• R&D metrics from staffing the organization, through idea generation, product development and technical service
• Tools and culture for DFSS

Jay Andersen, Research Advisor, Decision Sciences, Eli Lilly and Company

Traditionally, R&D portfolio management is seen as a periodic or cyclic process. Senior executives meet on an annual or semi-annual schedule to review their portfolio of projects, set priorities, and make resource allocation decisions. During the weeks preceding the portfolio review, support groups from project management, marketing, and finance examine each project and update portfolio. Unfortunately, portfolio decisions need to be made by senior executives on a real-time basis. Waiting until the next scheduled review to make decisions may not be convenient or prudent. The decision-makers need a portfolio process that can provide relevant data in a real-time setting. This presentation will discuss how to transition from a cyclical to a real-time portfolio review process.

National Semiconductor is evolving from a broad-based supplier of integrated circuits to a key partner for its system-on-a-chip customers. Comprised of 4 major divisions and 19+ business units, the company has globally dispersed product development teams in more than 30 design and development centers with project teams ranging from 5 – 150 people. Since 1995, the company has undergone major evolutions in R&D metrics, business processes and enabling IT systems that support them to streamline the product development process. This presentation will outline:

• The challenges, failures and successes encountered during this evolution
• How National Semiconductor’s R&D metrics evolved from reactionary measures based mainly on cost tracking to a more balanced approach of both output (results) metrics & process (predictive) metrics
• The methodology for driving changes in R&D metrics and the resultant impact on the development process

Metrics: Closing the Loops to Drive Growth

Thomas Gregory, Technical Director, Surface Conditioning Div., 3M
Curtis Hargadine, President, Development Professionals, Inc.

This presentation shows how a 3M business unit employed a systematic analysis of its recent new business-to-business offerings to develop metrics for screening and prioritizing opportunities and managing their realization. Key points covered include:

• First look criteria for potential programs
• Tools to guide comprehensive business analyses
• Techniques to support rapid program assessment
• Prioritizing based on business impact metrics
• Feedback mechanisms to keep programs on target
• Networked tools for collaboration from concept to completion 

Paul Falkenstein, Worldwide Director of Strategic Business Marketing

Abstract coming soon...