Dynamic

Business
Planning
John Satta
Product Planning Manager

Boston SPIN
16 May 2000
 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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 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

Survival demands visibility

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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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 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

Rapidly changing conditions demand

frequent course corrections
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 Traditional strategic management

• Management team
Business Objectives has limited visibility
into results

e-mail, informal discussions, meetings, • Business objectives

documents, presentations, etc. not clearly linked to
strategic initiatives

• Teams are forced to

Cross-functional Strategic Initiative Team work with limited
navigation

• Islands of
information

Document Corporate Presentation Project • Isolated teams

Management Communications Development Management using independent
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 All efforts are global and interrelated

Technology 1 Technology 2
Supplier 1 Opportunity 1
Supplier 2

Project 1 Competitor 2

Project 2

Opportunity 2

Project 3

Opportunity 3
Research Competitor 1
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 Planning as communication

 Vision and direction should be

 setat 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

Everyone should know the plan

and their contribution to it
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 Top down meets bottom up

Vision

Dir
Wisdom

ec
ty

tio
ali

Knowledge

n
Re

Information

Data
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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 Products

Cooper & Edgett

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 Involve stakeholders

 Publish the plans

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

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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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 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
The end result
is not a picture of tomorrow,
but better decisions about the future
The Art of the Long View
Peter Schwartz

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 We must plan for changing conditions

Technology Newer
Technology

Project
Project

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 Balance planning and action

 Conventional Ideal
 ready, aim, fire
 Guesswork
 ready,
Consider the unthinkable
fire, aim
to be able
 Analysis paralysis
 ready,
to react rapidly
aim, aim, aim, aim...
 Successive approximation
 ready, aim, fire, aim, fire, aim, fire...
 Rapid reaction
 ready, fire, aim, fire, aim, fire, aim, fire...

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 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
It is a lot of work,
but consider the alternative
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 Pitfalls to avoid

 Aversion to change
 “Not invented here”
 Intellectual honesty is in short supply

No Excuses Management
by TJ Rodgers et al
• No Secrets
• No Surprises
• No Politics
• No Distractions
• No Confusion
• No Waste
• No Illusions

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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

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 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
 Brand managers
 Strategic planners  Forecasters
 Facilitators
 Developers and engineers
 Product planners

“Provides the enterprise with 10x-100x improvement

in operational efficiency”
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 Case study: Motorola Communications
Enterprise

Motorola’s Forecasted Adoption

Rate of Enterprise-wide planning
50
Thousands of users

32,000
40
users

30

20

1,000
10
users

1999 2000 2001 2002

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 Multi-enterprise collaboration

Enterprise C
Visibility into others’ plans...

Enterprise B

Enterprise A
Customer of B

enables precision responses

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 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

Portfolio Management for New Products

Cooper & Edgett
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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

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Questions...?