dynamic business planning
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Dynamic Business PlanningJohn SattaProduct Planning Manager
Boston SPIN
16 May 2000
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QSS’ business
We help companies meet their business objectives through integrated planning, building and buying of strategic products, systems and software
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Survival demands visibilitySurvival 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
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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
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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
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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
DocumentManagement
CorporateCommunications
PresentationDevelopment
ProjectManagement
• Isolated teams using independent tools
• Management team has limited visibility into results
• Teams are forced to work with limited navigation
Traditional strategic management
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Project 1
Project 2
Opportunity 1
Opportunity 3
Research Competitor 1
Competitor 2
Supplier 1Supplier 2
Technology 1 Technology 2
Project 3
Opportunity 2
All efforts are global and interrelated
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Everyone should know the planand 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
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Vision
Wisdom
Knowledge
Information
Data
Rea
lity
Direction
Top down meets bottom up
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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 ProductsCooper & Edgett
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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 quicklyand the fix obvious
to someoneThe Cathedral and the Bazaar
Eric S. Raymond
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For each product, initiative and project
Development and availability timelines Business objectives Opportunities Current status Future projections Competitive situation Internal dependencies Supplier dependencies
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The end resultis not a picture of tomorrow,
but better decisions about the futureThe 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
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Technology NewerTechnology
ProjectProject
We must plan for changing conditions
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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 unthinkableto be able
to react rapidly
Balance planning and action
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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
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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
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PDMA-reported portfolio problems
Pipeline overload Resource allocation No priorities Indecision Slow development Changing direction
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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
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“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
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10
20
30
40
50
1999 2000 2001 2002
Motorola’s Forecasted Adoption Rate of Enterprise-wide planning
Th
ousa
nd
s of
use
rs
1,000users
32,000users
Case study: Motorola Communications Enterprise
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Customer of B
Supplier to Benables precision responses
Visibility into others’ plans...
Enterprise A
Enterprise B
Enterprise C
Multi-enterprise collaboration
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Portfolio Management for New ProductsCooper & 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
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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
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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
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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
Questions...?
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