1. Dynamic Business Planning John Satta Product Planning Manager Boston SPIN 16 May 2000

2. Copyright  Quality Systems & Software 2 QSS’ business We help companies meet their business objectives through integrated planning, building and buying of strategic products, systems and software

3. Copyright  Quality Systems & Software 3 Survival demands visibility What are the challenges? Rapidly changing markets demand quick response More stakeholders participate in strategic decisions Increased need for customer focus Complex demands on internal resources Quickly evolving technologies

4. Copyright  Quality Systems & Software 4 Responses The planning process must be continual, not periodic Use dynamic planning to communicate across the organization Get (and keep) stakeholders involved Plan for change in the face of uncertainty Practical considerations and pitfalls to avoid

5. Copyright  Quality Systems & Software 5 Rapidly changing conditions demand frequent course corrections Planning must be continual Most planning efforts are fantastic not based on reality wishful thinking ignore the fact of changing environments Example: the annual budgeting process an annual “game” wastes resources justify foregone conclusions Reference: Gartner Group Insider Article Sept 1999

6. Copyright  Quality Systems & Software 6 Business Objectives Cross-functional Strategic Initiative Team e-mail, informal discussions, meetings, documents, presentations, etc. Business objectives not clearly linked to strategic initiatives Islands of information Document Management Corporate Communications Presentation Development Project Management Isolated teams using independent tools Management team has limited visibility into results Teams are forced to work with limited navigation Traditional strategic management

7. Copyright  Quality Systems & Software 7 Project 1 Project 2 Opportunity 1 Opportunity 3 Research Competitor 1 Competitor 2 Supplier 1 Supplier 2 Technology 1Technology 2 Project 3 Opportunity 2 All efforts are global and interrelated

8. Copyright  Quality Systems & Software 8 Everyone should know the plan and their contribution to it Planning as communication Vision and direction should be set at the top based on reality Changing conditions are an opportunity: to reassure that we are aware of reality to communicate how we are responding to solicit input and feedback

9. Copyright  Quality Systems & Software 9 Vision Wisdom Knowledge Information Data Reality Direction Top down meets bottom up

10. Copyright  Quality Systems & Software 10 Characteristics of Outstanding Leaders Establish an encompassing, articulated direction for the organization Set the working agenda and focus the organization’s attention and effort Personal commitment to leading the change Teach knowledge and skills throughout the ranks Wholesale empowerment of their people Portfolio Management for New Products Cooper & Edgett

11. Copyright  Quality Systems & Software 11 Involve stakeholders Publish the plans piques curiosity Keep them up to date inspires confidence Actively solicit feedback generates interest Listen to the feedback that’s how you inject REALITY Quickly respond to the feedback increases confidence, engenders more feedback Given enough eyeballs, almost every problem will be characterized quickly and the fix obvious to someone The Cathedral and the Bazaar Eric S. Raymond

12. Copyright  Quality Systems & Software 12 For each product, initiative and project Development and availability timelines Business objectives Opportunities Current status Future projections Competitive situation Internal dependencies Supplier dependencies

13. Copyright  Quality Systems & Software 13 The end result is not a picture of tomorrow, but better decisions about the future The Art of the Long View Peter Schwartz Planning in the face of uncertainty How does one really “expect the unexpected”? If you don’t consider the possibilities, you’re relying on luck Compare alternate scenarios status quo conditions get worse conditions improve

14. Copyright  Quality Systems & Software 14 Technology Newer Technology Project We must plan for changing conditions

15. Copyright  Quality Systems & Software 15 Conventional Ideal ready, aim, fire Guesswork ready, fire, aim Analysis paralysis ready, aim, aim, aim, aim... Successive approximation ready, aim, fire, aim, fire, aim, fire... Rapid reaction ready, fire, aim, fire, aim, fire, aim, fire... Consider the unthinkable to be able to react rapidly Balance planning and action

16. Copyright  Quality Systems & Software 16 It is a lot of work, but consider the alternative Practical considerations Consistent terminology Start small nothing succeeds like success, even modest success Get buy-in Be prepared to sell and re-sell and sell again Have plans start-up, roll-out, maintenance gathering the information is no small feat Develop processes Don’t under-estimate the effort

17. Copyright  Quality Systems & Software 17 No Excuses Management by TJ Rodgers et al No Secrets No Surprises No Politics No Distractions No Confusion No Waste No Illusions Pitfalls to avoid Aversion to change “Not invented here” Intellectual honesty is in short supply

18. Copyright  Quality Systems & Software 18 PDMA-reported portfolio problems Pipeline overload Resource allocation No priorities Indecision Slow development Changing direction

19. Copyright  Quality Systems & Software 19 Obstacles to success Ignorance Lack of skills Faulty or mis-applied processes Over confidence A lack of discipline and/or leadership Big hurry we’re in a rush, so we cut corners. Gridlock too many projects not enough resources to get the job done right Absence of clarity regarding roles and responsibilities

20. Copyright  Quality Systems & Software 20 “Provides the enterprise with 10x-100x improvement in operational efficiency” Brand managers Forecasters Developers and engineers Case study: Motorola Communications Enterprise Adopting enterprise-wide planning to: Accelerate time to market Ensure quality of products and services through increased attention to customer needs Sharpen focus on technology developments and competition Optimize use of resources Users Strategic planners Facilitators Product planners

21. Copyright  Quality Systems & Software 21 10 20 30 40 50 1999200020012002 Motorola’s Forecasted Adoption Rate of Enterprise-wide planning Thousands of users 1,000 users 32,000 users Case study: Motorola Communications Enterprise

22. Copyright  Quality Systems & Software 22 Customer of B Supplier to B enables precision responses Visibility into others’ plans... Enterprise A Enterprise B Enterprise C Multi-enterprise collaboration

23. Copyright  Quality Systems & Software 23 Portfolio Management for New Products Cooper & Edgett Interesting Statistics 50% of all new product development projects fail 99% of all ‘corner office’ initiated new product development projects fail 30-50% of largest companies make revenues on products developed in the last 3-5 years

24. Copyright  Quality Systems & Software 24 Make the Success Factors More Visible Leaders must lead Review and overhaul your processes Define standards of performance expected Build in tough go/kill decision points with defined criteria Use true cross functional teams Train continually Reduce cycle times, but don’t become a speed freak Reduce the number of projects underway

25. Copyright  Quality Systems & Software 25 References Mentioned john_satta@qssinc.com www.qssinc.com Inside Gartner Group newsletter www.gartner.com The Art of the Long View - Peter Schwartz The Cathedral and the Bazaar - Eric S. Raymond No Excuses Management - TJ Rodgers et al Product Development & Management Association www.pdma.org Portfolio Management for New Products - Cooper & Edgett Others Built to Last - Collins and Porras Competing for the Future - Hamel and Prahalad

26. Copyright  Quality Systems & Software 26 The results... Improved business information: Understand where to invest: What are our key technologies? What are our major dependencies? What are our core strengths? What are our critical weaknesses? Integrated planning: Think globally Are we researching the technologies we are going to need? Are we co-ordinating with our suppliers? Are we co-ordinating with our customers? Proactively plan for all conditions

27. Questions...?