Dynamic business planning

Dynamic Business PlanningJohn SattaProduct Planning Manager

Boston SPIN

16 May 2000

Copyright Quality Systems & Software2

QSS’ business

We help companies meet their business objectives through integrated planning, building and buying of strategic products, systems and software


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


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


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


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


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


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


Vision

Wisdom

Knowledge

Information

Data

Rea

lity

Direction

Top down meets bottom up


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


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


For each product, initiative and project

Development and availability timelines Business objectives Opportunities Current status Future projections Competitive situation Internal dependencies Supplier dependencies


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


Technology NewerTechnology

ProjectProject

We must plan for changing conditions


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


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


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


PDMA-reported portfolio problems

Pipeline overload Resource allocation No priorities Indecision Slow development Changing direction


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


“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


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


Customer of B

Supplier to Benables precision responses

Visibility into others’ plans...

Enterprise A

Enterprise B

Enterprise C

Multi-enterprise collaboration


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


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


References

Mentioned [email protected] 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


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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