Designing the portfolio presented by Dan Jones Nationwide Building Society Shaping your portfolio to realise Organisational Strategy (design and prioritisation through to implementation and success) APM Portfolio SIG conference Thursday 12th May 2016

1. APM presentation 12th May
2016
Designing the portfolio
A method to cope with business
demand for investment
Dan Jones
Head of EPMO, Nationwide

2. APM presentation 12th May
2016
Presented by Dan Jones
Nationwide Building Society
Dan’s presentation will focus on the process
of project selection at Nationwide and
how the high level of demand is rationalised
into an approved portfolio.
The presentation will look at how demand is
compared to corporate objectives and
show some of the tools that have been
developed to analyse and communicate the
portfolio landscape. Some of the
behavioural challenges presented by
portfolio selection are covered with
strategies to limit their effect.
The presentation will conclude with a look at
future improvements to the process and a
summary of Nationwide’s lessons learned
and suggested advice for delegates.
Nationwide Building Society
A brief introduction
Portfolio Planning Landscape
Looking at the process and behavioral
challenges that affect the planning process
Validation & prioritization
The treatment of discretionary and non-
discretionary demand
Identifying and organising the
data
Examining the data needed to translate
strategy & demand into a portfolio plan
Learning & Outcomes
Achievements from the 16/17 planning round
and thoughts for the next iteration …
Designing the portfolio - A method to cope with business
demand for investment

3. APM presentation 12th May
2016
Nationwide is a £203 billion
business –– the world’s largest
building society
Around 700 branches
Nationwide employs around 17,000
people
based on the original crowd funding
model
New CEO in April 16
~ £000’s m budget
~ 250 projects
~ 750 PM & PMO
Nationwide Building Society

4. APM presentation 12th May
2016
Strategy 01
Priorities 02
In-effective
controls
06
Decisions 03
‘Gaming’ &
Behaviours
05
Executive
process input08
Unplanned
demand
04
Focus on
delivery
07
Behaviours and cultural
challenges are much
more difficult to
overcome than process
or data problems.
The Portfolio Planning Landscape

5. APM presentation 12th May
2016
Identifying & Organizing the data
High Level Process
01 02 03 04
Understand
Outcomes
Identify
Demand
Analyse &
Allocate
Review &
Approve
Establishing the
target end state
and the data
required to support
the process
Collecting &
validating the
the demand data,
Creating one or
more portfolios
based on different
scenarios
Iterative reviews
and challenge
resulting in
approved
portfolio
Observations &
learning from
previous use
Risks &
Assumptions
Agreeing the process and
timeline with your
stakeholders sets
expectations and reduces
‘unnecessary distractions’

6. APM presentation 12th May
2016
Future Branch
Development
Omni Channel Sales
and Service
1
2
Consumer and
Mortgage Proposition
Development
3
Payments
Customer
Contact
Transformation
4
5
Operational
Simplification6
Information,
Insight and
Analytics
7
Credit Management
Capabilities
Investment and
Retirement Planning
8
9
1
0
10 Investment themes covering Discretionary investment
Regulatory / Mandatory Compliance
Maintain Operations & Resilience
1
2
2 Investment themes covering Non - Discretionary
investment
5 Corporate Strategic Goals
Property
Identifying & Organizing the data
Identify the target outcomes

7. APM presentation 12th May
2016
Identifying & Organizing the data
Understanding Demand
Investment Category
and portfolio data
Lifecycle data
Spend to date
Estimate to complete
One version of the truth
Includes;
In-flight projects
New Demand
Risks & Assumptions (History tells us
…)
Optionality
Min/max

8. APM presentation 12th May
2016
Identifying & Organizing the data
Recognizing the room for prioritization
Non
Discretionary
Total
Business
Investment
Target Range
16/17 Portfolio
Aggregate
Target Range
Decreasing Cost Certainty
£
A simple communications
tool can be hugely beneficial
to help key stakeholders
engage in the right debates

9. APM presentation 12th May
2016
Tested for proven
link to Regulation,
proportionality &
timeliness of
response
Prioritise based on
compliance date
and scheduling
requirements
Risk based
approach logging
risks & impacts
register
Prioritise based on
severity of risks
compared to
corporate appetite
Validation Prioritisation
Vigilance needed in this area
to ensure that funding is not
misused. Initial data
gathering must be followed
by ruthless examination to
produce a final list
Regulatory
Mandatory
Maintain
Operations
Validation & Prioritisation
Non-Discretionary demand

10. APM presentation 12th May
2016
• The Value Framework tool is used to evaluate the
extent that each (discretionary) project contributes to
Corporate Strategy.
• 5 Corporate Strategic Goals are assessed through 13
discrete attributes on a 0 – 5 rating scale. Weightings
are applied to each attribute and a score out of 100 is
produced.
• Projects can be ranked within attributes or against a
total score, thus providing a strategic perspective for
decision support.
• Consider using a panel of experts to score projects
using approved business cases. Unsurprisingly, self
assessed projects tend to score significantly higher than
panel assessments.
Validation & Prioritization
Analysis of Strategic Contribution for each discretionary project

11. APM presentation 12th May
2016
Value
Framework
Score
Financial
Benefits
Investment
themes
In Flight projects
with ‘optionality’ and
Unfunded demand
Value Framework
Scored to give a
strategic
perspective.
The VF view was
compared to a
financial benefits
view to give a
financial
perspective.
This was compared
to the minimum and
maximum viable
investment per
theme to ensure all
strategic
deliverables were
covered.
Validation & Prioritization
Discretionary demand
Approved
Portfolio
Plan
Plan approved by
the Board.
Investment
Governance was
restructured to
maintain shape on
an ongoing basis.

12. APM presentation 12th May
2016
What we
delivered in 16/17
The first steps away from annual
planning to continuous planning
Master
Scheduling
And for next
year …
Learning & Outcomes
Approved 1617 Portfolio
plan
Re-useable tools &
processes
A new Investment Governance
Model that aligns with the Portfolio
Plan
Cultural change that advanced the
decision making process to a portfolio
context
Upgraded Value Framework with
SME input
Further structuring of Investment
Themes
Increase periodicity of portfolio
planning
Improved Business Case
capability

13. APM presentation 12th May
2016
Key Takeaways
1. Align yourself to the Corporate plan but collaboration is key. There will be multiple desired
outcomes from the planning process
2. Mark out the boundaries for debate and use a range of perspectives to inform
prioritisation. This will influence Senior Stakeholders to adopt enterprise behaviours
3. Obsess about your master data set. It is your friend and protector.
4. Find a simple ‘hook’ or communications device to help crystalize the debate
5. Extend portfolio design into Portfolio governance to maintain a reasonable expectation
of shape and delivery post Board sign off
6. The theory is great, but it is your leadership behaviours that will win the day!

14. This presentation was delivered
at an APM event
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