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1                                                                                               Red7 :|: product managemen...
Red7 :|: product managementDescription• How can Product Managers  • effectively balance market leadership strategies with ...
Red7 :|: product managementTable of Contents• Product Portfolio Introduction• Product Portfolio Management Tools• Corporat...
Red7 :|: product managementPRODUCT PORTFOLIOINTRODUCTION      © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product managementTypical Product Portfolio Planning &Management Process             © Copyright 2012-03 Robert G...
Red7 :|: product managementEvaluating Your PMP• Does your portfolio reflect and support the business strategy?• What is th...
Red7 :|: product managementEffects of Ineffective PMP• Reluctance to kill projects   • Once started, many projects added t...
Red7 :|: product managementPhase-Gate Development Only -One Part of Whole NPD Process                                     ...
Red7 :|: product managementSustainable ProductPortfolio Management Process (PMP)• About balancing business priorities   • ...
Red7 :|: product managementProduct PMP Context       Corporate                              Product        Strategy       ...
Red7 :|: product managementPRODUCT STRATEGY      © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product managementPortfolio Management Tools• Financial / Economic Models                                  • Beha...
Red7 :|: product managementBest In Class Objective #1:Maximizing Projects Portfolio Value           © Copyright 2012-03 Ro...
Red7 :|: product management    Maximizing Value: Scoring Check Lists                            Scored Project Screening C...
Red7 :|: product management  Maximizing Value: Scored Prioritization        Strat Prod Mkt Core Tech       Proj Staff Cumm...
Red7 :|: product managementMaximizing Value: NPV Prioritisation                                                           ...
Red7 :|: product managementMaximizing Value: BBI Prioritisation• $15m constrained portfolio                               ...
Red7 :|: product managementExpected Commercial Value (ECV)EVC = [ ( PV * Pcs - C ) * Pts ] - D • Pts - Probability of tech...
Red7 :|: product management Example: Maximizing Value Dynamic Rank Order                                     Probability o...
Red7 :|: product managementBest In Class Objective #2:Right Balance of Portfolio Projects• Long term, versus short/fast• H...
Boston Consulting Group                                                                                              Red7 ...
Red7 :|: product managementRisk-Reward Diagram     Bubble sizes: annual resources     Y: Probability of success, X: Reward...
Red7 :|: product managementBest In Class Objective #3:Strategic Alignment           © Copyright 2012-03 Robert Grupe. All ...
Red7 :|: product management  Strategic Alignment  GE/McKinsey Directional Policy                    Leader                ...
Red7 :|: product management  Attractiveness vs. Competitive-Position  Portfolio Classification and Strategies             ...
Red7 :|: product managementStrategicAnsoff Matrix                © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product managementBest In Class Objective #4:Right Number of Projects           © Copyright 2012-03 Robert Grupe....
Red7 :|: product management         Risk-Benefit Balance                                       Maintenance                ...
Red7 :|: product managementRisk-Benefit Balance      Best                      Average                                   W...
Red7 :|: product managementPMP Tools Evaluation           © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product managementStrengths and Weaknesses of PMP Tools                         Strategic              Financial ...
Red7 :|: product managementSatisfaction with PMP Tools                          Strategic            Financial            ...
Red7 :|: product managementPMP Tools: Take Aways• Formal portfolio management methods work• There is no one right portfoli...
Red7 :|: product managementCORPORATE STRATEGYMAPPING      © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product management      Balanced Scorecard Strategy Map                                                      Stra...
Balanced Scorecard Example                                                                                                ...
Red7 :|: product managementMARKETINGCOMMUNICATIONSSTRATEGYDon’t forget the 4th P                  © Copyright 2012-03 Robe...
Red7 :|: product managementThe Fourth P• 4 P’s of Marketing   • Product  Product Strategy   • Price  Product Strategy   ...
Red7 :|: product managementMarCom Dashboard         © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product managementMarComs Tools• Advertising• Sales Promotion• Public Relations• Personal Selling• Legitimization...
Red7 :|: product managementAdvertising                   Digital Content                         Digital Channels         ...
Red7 :|: product managementSales Promotion           Digital Content                     Digital Channels                 ...
Red7 :|: product managementPublic Relations        Digital Content                     Digital Channels                 Me...
Red7 :|: product managementPersonal Selling         Digital Content                       Digital Channels                ...
Red7 :|: product managementLegitimization        Digital Content                    Digital Channels                 Metri...
Red7 :|: product managementOnline PR: Social Sharing Reach• Social Sharing now produces  • estimated 10 percent of all Int...
Red7 :|: product managementINTEGRATED PMPPROCESSPutting It All Together                  © Copyright 2012-03 Robert Grupe....
Red7 :|: product managementSustainable ProductPortfolio Management Process (PMP)• About balancing business priorities   • ...
Red7 :|: product managementIntegrated Portfolio ManagementFramework                              Corporate                ...
Red7 :|: product management         Integrated Portfolio Management         Dashboards    Corporate Strategy Map          ...
Red7 :|: product managementIntegrated Product DevelopmentPortfolio Management Process            © Copyright 2012-03 Rober...
Red7 :|: product managementInitiation: Organizational Context• What is the driving influence of your organization’s execut...
Red7 :|: product managementImplementing PMP1.   Form a portfolio management tools & process evaluation team     • Evaluate...
Red7 :|: product managementPortfolio and Project Reviews                                            Business Strategy & Ne...
Red7 :|: product managementCODA       © Copyright 2012-03 Robert Grupe. All rights reserved.
Red7 :|: product managementFinis• What we measure and how we measure determine what will be considered relevant, and deter...
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Red7 Product Portfolio Management

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This presentation will discuss how you can develop your product market strategy to align with corporate operational objectives to drive meaningful development while demonstrating investment value and alignment.

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Red7 Product Portfolio Management

  1. 1. 1 Red7 :|: product managementSTRATEGIC PRODUCTPORTFOLIO MANAGEMENTTools and Process for Aligning Corporate OperationalObjectives with Product Leadership StrategiesrobertGrupe, CISSP, CSSLP, PE, PMPtags :|: product management, portfolio management, strategy, scorecard © Copyright 2012-03 Robert Grupe. All rights reserved.
  2. 2. Red7 :|: product managementDescription• How can Product Managers • effectively balance market leadership strategies with corporate financial objectives?• Do you find yourself • firefighting and reacting to executive and sales crises instead of building market leadership?• This presentation will • discuss how you can develop your product market strategy to align with corporate operational objectives • to drive meaningful development • while demonstrating investment value and alignment. © Copyright 2012-03 Robert Grupe. All rights reserved.
  3. 3. Red7 :|: product managementTable of Contents• Product Portfolio Introduction• Product Portfolio Management Tools• Corporate Strategy Mapping• Market Communication Strategy• Integrated PMP: Putting IT All Together © Copyright 2012-03 Robert Grupe. All rights reserved.
  4. 4. Red7 :|: product managementPRODUCT PORTFOLIOINTRODUCTION © Copyright 2012-03 Robert Grupe. All rights reserved.
  5. 5. Red7 :|: product managementTypical Product Portfolio Planning &Management Process © Copyright 2012-03 Robert Grupe. All rights reserved.
  6. 6. Red7 :|: product managementEvaluating Your PMP• Does your portfolio reflect and support the business strategy?• What is the quality of the portfolio – solid and high value?• Are new products reaching market on time?• Are your success rates and profit performance results consistent with forecasted expectations?• Are you allocating the appropriate levels of resources between sustaining projects, new product development, and must-do maintenance?• Do you have regular (quarterly) senior management reviews of all your projects (market developments, forecast adjustments, progress, resource priorities)?• Is the senior management team leading portfolio prioritisations?• Do you have a portfolio funnel or tunnel? © Copyright 2012-03 Robert Grupe. All rights reserved.
  7. 7. Red7 :|: product managementEffects of Ineffective PMP• Reluctance to kill projects • Once started, many projects added to list, total lack of focus • Too many projects – resources spread too thin, projects queued, low execution quality • Increased time to market, high failure rates• Weak decision points • poor Go/No-Go decisions • Too many low value projects, tweaks and modifications, good projects starved • Too few stellar product winners, many ho-hum launches• No rigorous selection criteria • projects selected on emotions, politics • Wrong projects are selected • Many failures• No strategic criteria for project selection • Projects lack strategic direction, projects not strategically aligned • Scatter gun effort, does not support strategyCORELLARYPMP performance is not just about process,but is also a function of organization maturity and effectiveness. © Copyright 2012-03 Robert Grupe. All rights reserved.
  8. 8. Red7 :|: product managementPhase-Gate Development Only -One Part of Whole NPD Process Market & Segments, Road Business and Product Product Line and Mapping Strategy Solution Mapping Technologies, & Building Blocks Phase-Gate Product New Concept Concept Feasibility and Solutions Generation Assessment Development Lifecycle Management and Retire Pipeline Throughput Management © Copyright 2012-03 Robert Grupe. All rights reserved.
  9. 9. Red7 :|: product managementSustainable ProductPortfolio Management Process (PMP)• About balancing business priorities • risk versus return • maintenance versus growth • short-term versus long term• On-going process • under constant review and revision• Different things to different people • Strategist: supporting the corporate vision and mission • Financial: most efficient allocation of financial resources to maximize shareholder value • Engineering: choosing projects to foster the right innovation • Marketing: faster times to market • CEO: positive financial impact, quickly• Axioms • Profit is required to sustain costs in future and for innovation, • so cut any non-performing products or those without well understood forecast (futures modeling) • Balanced = stakeholders • (shareholders, customers, employees, suppliers, communities/government) • Tradeoff: short-term profits versus long term investments © Copyright 2012-03 Robert Grupe. All rights reserved.
  10. 10. Red7 :|: product managementProduct PMP Context Corporate Product Strategy Strategy Marcomms Strategy © Copyright 2012-03 Robert Grupe. All rights reserved.
  11. 11. Red7 :|: product managementPRODUCT STRATEGY © Copyright 2012-03 Robert Grupe. All rights reserved.
  12. 12. Red7 :|: product managementPortfolio Management Tools• Financial / Economic Models • Behavioural Approaches • Payback period • Modified Delphi method • Break even analysis • Q-Sort method • ROI • Paired Comparison models • Discounted cash flow (DCF) • Mathematical Optimisation • Net Present Value (NPV) Procedures • Internal Rate of Return (IRR) • Linear and mathematical programming • Financial Ratios • Statistical decision theory • Productivity Index • Game theory• Checklist Scoring Models • Probability Theory (Markov processes) • Fit with corporate objectives • Decision Support Systems (DSS) • Competitive advantage • Project Analysis and Support System • Market attractiveness (PASS)• Probabilistic Financial Models • Mapping Approaches / Bubble • Monte Carlo Simulation Diagrams • Decision Tree Analysis • Boston Consulting Group Matrix • Options Pricing Theory (Real Options) • GE/McKinsey position vs attractiveness © Copyright 2012-03 Robert Grupe. All rights reserved.
  13. 13. Red7 :|: product managementBest In Class Objective #1:Maximizing Projects Portfolio Value © Copyright 2012-03 Robert Grupe. All rights reserved.
  14. 14. Red7 :|: product management Maximizing Value: Scoring Check Lists Scored Project Screening Criteria Rating ScaleKey Items Rating 0 4 7 10Strategic Alignment & Importance 9.5 Product has only Modest fit, but not Strong fit with Good fit with a peripheral fit with with a key several key Congruence 9 key element of business element of the elements of strategy strategies strategy strategy Minimal impact; Moderate Significant Very strong no noticeable Impact 10 competitive, competitive and positive impact on harm if product financial impact financial impact the business droppedProduct Competitive Advantage 6.7 Product offers Product offers Product offers no Product offers some benefits but positive, unique Customer Benefits 7 unique benefits or unique features not important to benefits and features and benefits customer features Product is Product is clearly Product is same Product is better marginally better superior than as competitors in than competitors Meets Customer Needs 8 than competitors competitors in meeting customer in meeting in meeting meeting customer needs customer needs customer needs needs Product is same Product provides Product clearly as competitors; Product has good better value for has excellent Customer Value for Money 5 poor value for value for money money for the value for money money for the for the customer customer for the customer customer • Potential Categories • Strategic Alignment • Competitiveness • Market Attractiveness • Leverages Core Competencies • Technical Feasibility © Copyright 2012-03 Robert Grupe. All rights reserved.
  15. 15. Red7 :|: product management Maximizing Value: Scored Prioritization Strat Prod Mkt Core Tech Proj Staff CummProject Fit Adv Attr Comp Feas Reward Attract FTE FTE StatusEcho 9 9 10 10 9 9 93.3 20 20 Go #1Beta 10 10 7 7 7 7 80.0 20 40 Go #2Foxtrot 8 7 7 8 8 9 75.0 15 55 Go #3Charley 7 7 9 9 8 5 74.0 12 67 Go #4Alpha 7 7 6 6 8 6 66.7 20 87 HoldGolf 8 6 6 8 7 5 66.7 20 107 Hold • 70 FTE constraint • Project Attractiveness = Average of scores * 100 © Copyright 2012-03 Robert Grupe. All rights reserved.
  16. 16. Red7 :|: product managementMaximizing Value: NPV Prioritisation Immediate Resource Resource Requirements Requirements Project NPV Remaining (Next Quarter) Lima 55.0 5.0 5.0 Alpha 52.0 9.5 3.2 Echo 48.5 7.0 1.3 Foxtrot 43.8 5.0 1.5 Delta 42.0 3.8 2.5 Golf 37.5 8.3 3.8 Beta 30.0 3.1 0.3 India 9.5 2.5 0.5 Charley 8.6 2.1 1.4 Juliet 6.2 0.8 0.8 Kilo 4.5 1.4 1.2 © Copyright 2012-03 Robert Grupe. All rights reserved.
  17. 17. Red7 :|: product managementMaximizing Value: BBI Prioritisation• $15m constrained portfolio Immediate Cummulative Resource Resource Immediate Requirements Bang-for-Buck Requirements Resource Project NPV Remaining Index (Next Quarter) Requirements Delta 42.0 3.8 11.1 2.5 2.5 Lima 55.0 5.0 11.0 5.0 7.5 Beta 30.0 3.1 9.7 0.3 7.8 Foxtrot 43.8 5.0 8.8 1.5 9.3 Juliet 6.2 0.8 7.8 0.8 10.1 Echo 48.5 7.0 6.9 1.3 11.4 Alpha 52.0 9.5 5.5 3.2 14.6 Golf 37.5 8.3 4.5 3.8 18.4 Charley 8.6 2.1 4.1 1.4 19.8 India 9.5 2.5 3.8 0.5 20.3 Kilo 4.5 1.4 3.2 1.2 21.5 Hotel 3.0 1.0 3.0 0.7 22.2 Insight: More projects can be done simultaneously if they do not compete for maximum resources in the same quarter BBI = NPV RRR © Copyright 2012-03 Robert Grupe. All rights reserved.
  18. 18. Red7 :|: product managementExpected Commercial Value (ECV)EVC = [ ( PV * Pcs - C ) * Pts ] - D • Pts - Probability of technical success (0.0-1.0) • Pcs - Probability of commercial success (0.0-1.00 • D - Development costs remaining • C - Commercialization costs (launch) • PV - Net Present Value of project’s future earnings © Copyright 2012-03 Robert Grupe. All rights reserved.
  19. 19. Red7 :|: product management Example: Maximizing Value Dynamic Rank Order Probability of Strategic TechnicalProject IRR NPV Importance Success IRR Rank NPV RankAlpha 20% $10.0 5 80% 2 3Beta 15% $2.0 2 70% 4 6Charlie 10% $5.0 3 90% 6 5Delta 17% $12.0 2 65% 3 2Echo 12% $20.0 4 90% 5 1Foxtrot 22% $6.0 1 85% 1 4 Strategic Probability of Importance Technical IRR*Pts NPV*Pts SI Ranking PrioritisedProject IRR NPV (SI) Success (Pts) IRR * Pts NPV*Pts Rank Rank Rank Mean RankingAlpha 20% $10.0 5 80% 16% $8.0 2 2 1 1.67 1Beta 15% $2.0 2 70% 11% $1.4 5 6 4 5.00 6Charlie 10% $5.0 3 90% 9% $4.5 6 5 3 4.67 5Delta 17% $12.0 2 65% 11% $7.8 3 3 4 3.33 3Echo 12% $20.0 4 90% 11% $18.0 4 1 2 2.33 2Foxtrot 22% $6.0 1 85% 19% $5.1 1 4 6 3.67 4 © Copyright 2012-03 Robert Grupe. All rights reserved.
  20. 20. Red7 :|: product managementBest In Class Objective #2:Right Balance of Portfolio Projects• Long term, versus short/fast• High risk and low risk• Markets• Types of technologies• Types of projects: new, improvements, cost reduction, research © Copyright 2012-03 Robert Grupe. All rights reserved.
  21. 21. Boston Consulting Group Red7 :|: product management Growth-Share Matrix High Rate ofIndustry Growth Low Low Relative High Product bubbles: revenue contribution Market X axis: Log 0.1-1.0-10.0 Share © Copyright 2012-03 Robert Grupe. All rights reserved.
  22. 22. Red7 :|: product managementRisk-Reward Diagram Bubble sizes: annual resources Y: Probability of success, X: Reward (modest to excellent), Y: Ease-Difficulty, X Low-High Importance © Copyright 2012-03 Robert Grupe. All rights reserved.
  23. 23. Red7 :|: product managementBest In Class Objective #3:Strategic Alignment © Copyright 2012-03 Robert Grupe. All rights reserved.
  24. 24. Red7 :|: product management Strategic Alignment GE/McKinsey Directional Policy Leader Growth Improve or Quit HighIndustryAttractiveness Try Harder Proceed with Care Phased Withdrawal Medium Share Cash Generator Phased Withdrawal Withdrawal Low High Medium Low Enterprise Strength © Copyright 2012-03 Robert Grupe. All rights reserved.
  25. 25. Red7 :|: product management Attractiveness vs. Competitive-Position Portfolio Classification and Strategies Strong Medium LowHigh PROTECT POSITION INVEST TO BUILD BUILD SELECTIVELY • Invest to grow at maximum • Challenge for leadership • Specialize around limited digestible rate • Build selectively on strengths strengths • Concentrate effort on • Reinforce vulnerable areas • Seeks ways to overcome maintaining strength weaknesses • Withdraw if indications of sustainable growth are lackingMedium BUILD SELECTIVELY SELECTIVITY/MANAGE FOR LIMITED EXPANSION OR • Invest heavily in most EARNINGS HARVEST attractive segments • Protect existing programs • Look for ways to expand • Build up ability to counter • Concentrate investments in without high risk; otherwise, competition segments where profitability minimize investment and • Emphasize profitability by is good and risk is relatively rationalize operations raising productivity lowLow PROTECT AND REFOCUS MANAGE FOR EARNINGS DIVEST • Manage for current earnings • Protect position in most • Sell at time that will maximize • Concentrate on attractive profitable segments cash value segments • Upgrade product line • Cut fixed costs and avoid • Defend strengths • Minimize investments investment meanwhile © Copyright 2012-03 Robert Grupe. All rights reserved.
  26. 26. Red7 :|: product managementStrategicAnsoff Matrix © Copyright 2012-03 Robert Grupe. All rights reserved.
  27. 27. Red7 :|: product managementBest In Class Objective #4:Right Number of Projects © Copyright 2012-03 Robert Grupe. All rights reserved.
  28. 28. Red7 :|: product management Risk-Benefit Balance Maintenance (fixes)New ProductProjects Enhancements & Extensions © Copyright 2012-03 Robert Grupe. All rights reserved.
  29. 29. Red7 :|: product managementRisk-Benefit Balance Best Average Worst Promotional developments & package New to the changes world 10% products 10% New to the business Incremental product products 25% improvements & changes 33% Major product revisions 22% © Copyright 2012-03 Robert Grupe. All rights reserved.
  30. 30. Red7 :|: product managementPMP Tools Evaluation © Copyright 2012-03 Robert Grupe. All rights reserved.
  31. 31. Red7 :|: product managementStrengths and Weaknesses of PMP Tools Strategic Financial Scoring BubblePerformance Methods Methods Model DiagramsProjects are alignedwith businessobjectives   Portfolio contains veryhigh value projects  Spending reflects thebusiness strategy  Projects on done ontime no-gridlock  Portfolio has goodbalance of projects   Portfolio has rightnumber of projects When used as a dominant portfolio method: - Best method for performance criteria - worst method for performance criteria © Copyright 2012-03 Robert Grupe. All rights reserved.
  32. 32. Red7 :|: product managementSatisfaction with PMP Tools Strategic Financial Scoring Bubble Performance Methods Methods Model Diagrams Method truly used to make Go/No-Go decisions    Fits management style    Understood by management   User friendly easy to use   Realistic method   Perceived as efficient   Perceived as effective    Method rated as excellent  Business would recommend method   When used as a dominant portfolio method:  - Best method for performance criteria  - Worst method for performance criteria © Copyright 2012-03 Robert Grupe. All rights reserved.
  33. 33. Red7 :|: product managementPMP Tools: Take Aways• Formal portfolio management methods work• There is no one right portfolio management method• Beware of over-reliance on financial methods and models• Look more to strategic approaches as the way to manage your portfolio• Consider a scoring model as an effective prioritization tool• Bubble diagrams must also be part of your portfolio models • Corporate Strategic Alignment• Focus is only on product development, not market execution• Product functionality and features only focus • Assumes that promotional strategy and investment will be someone else’s responsibility • Don’t forget your market strategy :: great product, but no one knows about it or your sales aren’t promoting it • Sales incentives • Demand generation © Copyright 2012-03 Robert Grupe. All rights reserved.
  34. 34. Red7 :|: product managementCORPORATE STRATEGYMAPPING © Copyright 2012-03 Robert Grupe. All rights reserved.
  35. 35. Red7 :|: product management Balanced Scorecard Strategy Map Strategy MapFinancial Perspective Long-Term ShareholderIf we succeed, how will we look to Value Revenueour shareholders? Productivity GrowthCustomer Perspective Quality Time Function PartnershipTo achieve our vision, how mustwe look to our customers? Price BrandInternal Perspective Manage RegulatoryTo satisfy our customers, which Manage Operations Manage Customers Manage Innovation and Socialprocesses must we succeed at? ProcessesLearning & GrowthPerspective Human Information OrganizationTo achieve our vision, how must Capital + Capital + Capitalour organization learn andimprove? © Copyright 2012-03 Robert Grupe. All rights reserved.
  36. 36. Balanced Scorecard Example Red7 :|: product management • Organizational Scorecard Strategy Map Balanced Scorecard Action PlanProcess: Operations Management Objectives Measurement Target Initiative BudgetTheme: Ground TurnaroundFinancial Perspective • Profitability • Market Value • 30% CAGRIf we succeed, how will we look to our shareholders? • Growth revenue • Seat Revenue • 20% CAGR • Fewer planes • Plane lease cost • 5% CAGRCustomer Perspective • Attract & retain • # repeat customers • 70% • Implement CRM • $XXXTo achieve our vision, how must we look to our more customers • # customers • Increase system • $xxxcustomers? • Flight is on time • FAA on-time arrival 12% • Quality • $xxx • Lowest prices rating annually Management • Customer ranking • #1 • Customer • #1 Loyalty programInternal Perspective • Fast ground • On-ground time • 30 minutes • Cycle-time • $xxxTo satisfy our customers, which processes must we turnaround • On-time departure • 90% optimizationsucceed at?Learning & Growth Perspective • Develop the • Strategic job • Yr. 1-70% • Ground crew • $xxxTo achieve our vision, how must our organization necessary skills readiness Yr. 3-90% training • $xxxlearn and improve? • Develop the • Info system Yr. 5-100% • Crew scheduling • $xxx support system availability • 100% system rollout • $xxx • Ground crew • Strategic awareness • 100% • Employee Stock aligned with • % ground crew • 100% Ownership strategy stockholders • Plan Total Budget $XXXX • Staffing Resources Scorecards • Goals, Weighting, Thresholds, Target, Stretch, Comments © Copyright 2012-03 Robert Grupe. All rights reserved.
  37. 37. Red7 :|: product managementMARKETINGCOMMUNICATIONSSTRATEGYDon’t forget the 4th P © Copyright 2012-03 Robert Grupe. All rights reserved.
  38. 38. Red7 :|: product managementThe Fourth P• 4 P’s of Marketing • Product  Product Strategy • Price  Product Strategy • Placement (distribution)  Product Strategy • Promotion  MarComs (Marketing Communications) © Copyright 2012-03 Robert Grupe. All rights reserved.
  39. 39. Red7 :|: product managementMarCom Dashboard © Copyright 2012-03 Robert Grupe. All rights reserved.
  40. 40. Red7 :|: product managementMarComs Tools• Advertising• Sales Promotion• Public Relations• Personal Selling• Legitimization © Copyright 2012-03 Robert Grupe. All rights reserved.
  41. 41. Red7 :|: product managementAdvertising Digital Content Digital Channels MetricsTV Vlogs YouTube ViewersRadioPrint MarCom Tools: Advertising Podcasts iTunes, TalkShoe Listeners/downloadsPackaging - outerPackaging - insertsMailings Direct email Constant ContactVideoMagazines WebzinesBrochures Micro websitesPostersLeafletsDirectories Search Engine Optimization Google, Bing, others (SEO) Search Engine Marketing (SEM): Paid Search /Adwords Director/reviews Yelp, Angies List Paid Search / AdWordsReprints of adsBillboards Banner adsAugmented Reality AppsPoint of purchase displays Affilate linksAudio/visual materialsSymbols and logos © Copyright 2012-03 Robert Grupe. All rights reserved.
  42. 42. Red7 :|: product managementSales Promotion Digital Content Digital Channels Metrics MarCom Tools: Sales PromotionContests, gamesPremiums and gifts Online contests, games Blogs, RSS feedsSamplingFairs and trade showsExhibitsDemonstrationCouponingRebatesLow-interest financingEntertainmentTrade-in allowanceTrading stampsTie-ins Mobile app tie-ins © Copyright 2012-03 Robert Grupe. All rights reserved.
  43. 43. Red7 :|: product managementPublic Relations Digital Content Digital Channels MetricsPress Kits Online press kits MarCom Tools: Public RelationsSpeachesSeminars Webcast recording Webcast live/recordingArticles Social news services Digg, redditNewletters Blogs, RSS feedsAnnual reports IR websiteCharitable donations Non-profit digital sponsorshipsSponsorships Webinars, MicrositesPublicationsCommunity Relations Microblogging Twitter Community networks Ning, MySpace, PatientsLikeMe, LinkedIn Groups Social networks Facebook, LinkedIn, Xing, Community Content Newsgroups, Wikis, epinion Affinity groups Social Bookmarking Services Delicious, LinkrollProduct reviewsLobbyingIdentity media © Copyright 2012-03 Robert Grupe. All rights reserved.
  44. 44. Red7 :|: product managementPersonal Selling Digital Content Digital Channels Metrics MarCom Tools: Personal SellingSales presentationsSales meetings Online meetings Slideshare, YouTubeTelemarketing Direct EmailIncentive programsSamplesFairs and trade shows © Copyright 2012-03 Robert Grupe. All rights reserved.
  45. 45. Red7 :|: product managementLegitimization Digital Content Digital Channels Metrics MarCom Tools: LegitimizationCorporate brochureProduct brochure Company web site Product web siteBuilding signs Online community web sites LinkedIn, Facebook © Copyright 2012-03 Robert Grupe. All rights reserved.
  46. 46. Red7 :|: product managementOnline PR: Social Sharing Reach• Social Sharing now produces • estimated 10 percent of all Internet traffic and • 31 percent of referral traffic to sites from search and social. • Search is still about twice as big.• Facebook makes up 56 percent of all shared content • Up from 45 percent in August, 2010 • Email at 15 percent (down from 34 percent) • Twitter at 8 percent (down from 12 percent). • Email 17%, Other (bookmarking, blogs) 34%• Twitter links are clicked on 4.9 times each, versus 4.3 times for Facebook links and 1.7 times for emailed links. © Copyright 2012-03 Robert Grupe. All rights reserved.
  47. 47. Red7 :|: product managementINTEGRATED PMPPROCESSPutting It All Together © Copyright 2012-03 Robert Grupe. All rights reserved.
  48. 48. Red7 :|: product managementSustainable ProductPortfolio Management Process (PMP)• About balancing business priorities • risk versus return • maintenance versus growth • short-term versus long term• On-going process • under constant review and revision• Different things to different people • Strategist: supporting the corporate vision and mission • Financial: most efficient allocation of financial resources to maximize shareholder value • Engineering: choosing projects to foster the right innovation • Marketing: faster times to market • CEO: positive financial impact, quickly• Axioms • Profit is required to sustain costs in future and for innovation, • so cut any non-performing products or those without well understood forecast (futures modeling) • Balanced = stakeholders • (shareholders, customers, employees, suppliers, communities/government) • Tradeoff: short-term profits versus long term investments © Copyright 2012-03 Robert Grupe. All rights reserved.
  49. 49. Red7 :|: product managementIntegrated Portfolio ManagementFramework Corporate Strategy Market Research & Strategy Marcomms Product Strategy Strategy © Copyright 2012-03 Robert Grupe. All rights reserved.
  50. 50. Red7 :|: product management Integrated Portfolio Management Dashboards Corporate Strategy Map 4/8/2012 Robert Grupe Objectives Goals Plan Measurement Target Initiative Budget# YR-01 YR-02 YR-03 YR-04 YR-05 Financial Product Porfolio Plan1 Profitability 4/8/2012 Robert Grupe Market Value 30% CAGR2 Revenue Growth Unit Revenue 20% CAGR3 Objectives Strategy Products Forecasts Positioning Budget Revenues4 Corporate Initiative Classification Strategy SKU Initative/Project Priority YR-01 YR-02 YR-03 YR-04 YR-05 YR-01 YR-02 YR-03 YR-04 YR-055 TOTALS $23 $25 $26 $27 $32 $200 $181 $225 $260 $275 Processes6 New (world/company)7 Corp Initative A Invest to Build PN-006 Product G v1 1 $10 $4 $1 $1 $1 $10 $50 $70 $100 Organization B Corp Initative PN-007 Product H v1 5 $2 $6 $5 $1 $1 $1 $20 $40 $50 Enhancement Corp Initiative A Protect Position PN-002 Poduct B v3 2 $5 $1 $1 $2 $1 $100 $110 $115 $120 $115 Corp Initiative D Manage Earning PN-004 Product D v2 4 $1 $5 $1 $1 $2 Maintenance Corp Initiative D Cost reduction 10% PN-003 Product C v5 3 $2 $1 $5 $1 $1 Corp Initiative C Protect/Refocus PN-005 Product F v2 4 $3 $1 $3 $1 $1 Hold/Retire $100 $60 $40 $30 $10 Corp Initative D Divest PN-001 Product A v6 $1 $1 Undefined/TBD $6 $10 $19 $25 © Copyright 2012-03 Robert Grupe. All rights reserved.
  51. 51. Red7 :|: product managementIntegrated Product DevelopmentPortfolio Management Process © Copyright 2012-03 Robert Grupe. All rights reserved.
  52. 52. Red7 :|: product managementInitiation: Organizational Context• What is the driving influence of your organization’s executive team? • Determines if you should start with Corporate Score Card, Market Analysis, or Marcomms strategy • Then your Product Management leadership will be to balance the organize• Risks and Impediments • Who will you be threatening with this new process? • The visionary: who needs to be balanced and reigned in? • The stock price value maximizer: who doesn’t get future risk for long term growth ? • Technical founder: who is use to calling all shots? • Etc.• Senior management buy-in and sponsorship of PMP initiative • Whosoever sets the strategy must be responsible for the prioritisation © Copyright 2012-03 Robert Grupe. All rights reserved.
  53. 53. Red7 :|: product managementImplementing PMP1. Form a portfolio management tools & process evaluation team • Evaluate current company approaches, review current best practices • Stakeholder representation • Finance • Marketing & Sales (Product Management) • R&D • Customer Support • Regions2. Determine Product Projects Phased Exit Criteria: Go, No-Go • Must-Meet / Should-Meet3. Provide checklist scoring and Financial metrics for all existing projects • (except maintenance releases)4. Review of industry best practices5. Selection of methods suitable for leadership style of the organisation • Not all tools are appropriate for your organisation6. Integrate team recommendations into product lifecycle decision point processes7. Continuous Process Improvement (CPI) • Real-time monitoring against models • Seasonal Trends, Market Changes (anticipated and not), Competitive Moves • Reviews & Retrospectives © Copyright 2012-03 Robert Grupe. All rights reserved.
  54. 54. Red7 :|: product managementPortfolio and Project Reviews Business Strategy & New Product Strategy (drives both decisions processes) Portfolio Projects Review Review Review decision gates At key project decision gates * Review all projects together Decisions & adjustments * Project pass Must-Meet * Identify Strategic Criteria imperatives * Scored on Should-Meet * Check project priorities Criteria * Check portfolio balance * Go/No-Go decisions * Projects prioritized Project status & scores * Resources allocated Portfolio Management Project Framework • Evaluation of new business opportunities • Evaluation of project phase exit and approval to become projects deliverables to ensure completeness and required level of quality • Project prioritization based on strategic fit and financial return • Project resource allocation based on project prioritisation and available • Regular re-evaluation and prioritization resources of existing projects against revised market and project status information © Copyright 2012-03 Robert Grupe. All rights reserved.
  55. 55. Red7 :|: product managementCODA © Copyright 2012-03 Robert Grupe. All rights reserved.
  56. 56. Red7 :|: product managementFinis• What we measure and how we measure determine what will be considered relevant, and determine, thereby, not just what we see, but what we - and others - do. • Peter Drucker, Management: Tasks, Responsibilities, Practices• This Presentation & Further Resources • www.red7managementsolutions.com• Questions, suggestions, & requests • Robert Grupe, CISSP, CSSLP, PE, PMP • robert.grupe@red7managementsolutions.com • +1.636.236.8434 © Copyright 2012-03 Robert Grupe. All rights reserved.

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