In Japanese mythology, the archipelago rests upon a giant catfish, or namazu.

To prevent earthquakes, a carefully balanced stone pins the fish down. If the stone is not balanced, the fish thrashes and an earthquake results. And so it is in countless large organizations today, where the risk of imbalance across their project portfolios is a real and present danger to the ability to create value.

Connecting The Dots

Today, nearly every large organization is looking for ways to unlock shareholder value, restore investor confidence and adapt to uncertainty. One approach is rediscovering the time-honored practice of alignment. World-class cyclists expend significantly less energy when properly positioned to draft off one another. Similarly, geese travel 70% farther when aligned in an efficient V formation. Businesses, too, can achieve substantial benefits from greater alignment.

You Spent What?

With a 40-fold increase over the past 20 years, project-related spending now represents approximately 25% of US GDP.
Are we ever going to see the value promised from our project investments? The question is all too familiar. The concerns are real and legitimate. Projects have grown faster than organizations can effectively manage them depressing returns on trillions of investment dollars. This is a symptom of misalignment.

Technology expenditures double nearly every five years.

Today, US IT capital spending represents approximately 50% of capital expenditures.

Meet Miss Alignment

While ongoing operations deliver value for today, it is the project portfolio that drives a companys future value. Why? Because the portfolio is the truest measure of organizational intent. It is, in essence, the barometer of a companys future. Misalignment of the project portfolio with an organizations intentions not only consumes valuable resources, it also fails to provision the organization for the future.

Exactly What Are Your Intentions?

Intentions Framework
Short-Term Objectives Long-Term Objectives

A central premise of Connecting The Dots is that organizations are working to deliver on three sets of objectives. Collectively, these objectives represent a companys intentions. Run the business Short-term objectives (operational) Grow the business Long-term objectives (more strategic) Transform the business Adapting for the future (trait objectives)

Eco-Driven Outside-In Fighting Trim House in Order Trait Objectives

Misalignment Exposed
Plotting of Projects to Intentions
Short-Term Objectives Long-Term Objectives

Performing the simple exercise of plotting the project portfolio within the Intentions Framework provides a snapshot of opportunities for greater alignment. These opportunities exist whenever: Objectives do not overlap or complement one another

Trait Objectives = Project

Projects dont deliver toward any objectives, falling outside the framework altogether Project investment is overly concentrated in one objective

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Balancing the Stones

Aspirational View of Fully Aligned Organization

Most executives already know their project portfolios are not delivering as expected. Reaching toward the aspirational view of alignment is not about spending moreits about getting greater return on what youre already spending. Movement toward the aspirational view captures hidden value by:

= Project

Aligning projects with objectives Aligning projects with other projects Aligning the organization and portfolio with the new realities of the business context

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Alignment Tools
Alignment Tools
Tool Description
Assesses, plans, and measures trait development

Ways Tool Improves Alignment

Direction, flexibility

Trait Meters

Connecting The Dots provides seven practical tools you can use to move toward greater alignment. Several of these tools deliver a clearer understanding of your portfolio and what its aiming to achieve. Others are suited for use in building options you can use to adapt to the future, rather than trying to predict it.

Assesses alignment of portfolio to intentions

Intentions

Direction, efficiency

Sides

Removes bias and finds synergies by sorting projects into main business activities

Direction, efficiency

Identifies change capacity issues

Right Brain

Efficiency, risk reduction

Common Threads

Finds common, reusable components

Efficiency, risk reduction, flexibility

Project Chunking

Structures projects into bite-size chunks that deliver incremental, stand-alone value

Risk reduction, flexibility

What-if Planning

Develops contingencies for varying scenarios

Risk reduction, flexibility

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Doing What Works

Connecting The Dots employs a practical play the hand you are holding approach. It offers a balance of concepts and roll-up-your-sleeves guidance to: Determine how well alignedor misaligned your organization is today Uncover opportunities for increasing portfolio economics Apply tools to reduce portfolio risk while improving its efficiency, flexibility and direction Instill new mind-sets to better respond to whatever future presents itself This guidebook helps you better connect the dots within your organizationand it does so in a way that you can use when you get into the office tomorrow.

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C O N N E C T I N G T H E D OTS
Aligning Projects with Objectives in Unpredictable Times
DELOITTE CONSULTING PARTNER CATHY BENKO AND HARVARD BUSINESS SCHOOL PROFESSOR F. WARREN M C FARLAN

At a time when corporations are cash-constrained, yet under enormous competitive pressures, the authors answer a critical question: How can an enterprise best align its spending with its strategic priorities? Connecting The Dots is a must-read.
HANK PAULSON, Chairman and CEO of Goldman Sachs

Its rare to find a book that offers both insight and practical guidance for driving greater value. Connecting The Dots does just that, regardless of what industry you are in. And it does so in a way that you can use when you get into the office tomorrow.
CHRIS POLEWAY, President FORTUNE Group Magazines

Aligning business direction, cultural traits and information technology sounds simplebut it never is. Connecting The Dots is a refreshing and practical guide for getting it done.
RALPH SZYGENDA, CIO of General Motors

Connecting The Dots is groundbreaking work. Alignment has eluded executives for decades resulting in obscene amounts of waste. Benko and McFarlan team up to provide what hasnt been accessible before: a practical, richly balanced framework that starts with what is and powerfully guides the reader to what can and should be.
RICHARD L. NOLAN, William Barclay Harding Professor of Business Administration, Harvard Business School

For more information www.connectingthedotsbook.com Cathy Benko cbenko@dc.com 650.524.4132