This document discusses portfolio management and growth strategies. It outlines different horizons for businesses including core, emerging, and future horizons. It presents frameworks like the McKinsey horizon framework for managing different stages of growth. It also discusses managing horizons through talent, planning, performance and discusses principles of optionality and experimentation for innovation. Overall, the document provides an overview of portfolio management concepts and strategies for business growth across multiple horizons.

1. Growth and Portfolio
Management
Ramakrishnan Sitaraman Bimal Eapen Kurian

2. Valleys, Gorges - more
plants
Willow, Aspen Trees
Beavers, new Birds
Kill Deers
Kill Coyotes Save Rabits
Preserve Banks and
river course Shared understanding and context of how things work
is important in complex world
@YellowStone

3. Project vs Portfolio
Vs

4. Portfolio Management - Cycles
Typical business cycle
Core
Emerging
Future

5. Different Models of Meta Management
Geography
Matrix
Strategic Intents and Tree
Product Lines Directional Management Growth Types

6. Sample of Portfolios
Portfolio of a Leading Bank
❖ Core Businesses
➢ Retail Banking
➢ Commercial Banking
➢ Credit Cards
➢ Loans
❖ Emerging Businesses
➢ Mortgages
➢ Pensions and Investments
❖ Future Businesses
➢ Life Insurance

7. McKinsey Horizon Framework
Horizon 1 - Extend and Defend
Core Businesses
Current Profit Generator
Horizon 2 - Build Emerging
Businesses ( GROWTH,
POSITION)
Near Future Profit Generator
Horizon 3 - Create viable options
Create proven Business Models
CONCURRENT

8. Managing Horizons

9. Managing Horizons - Talent Management
Out Of Box
UnConventional
Experimental
Entrepreneurial
Turn Ambiguity to advantage
Desire for Non-Linear Growth
Optimise things
Discipline
Strong domain to exploit
Psychological rewards-
Freedom
Career : Become H2 Builder
Autonomy
Build & create legacy
Create personal wealth through
share
Near term Performance
Skills
Rewards

10. Managing Horizons - Planning & Budgets
Incremental Growth
SWOT / BSC based planning
Effectiveness
Productivity
Annual Budgets
Investment Plans
Capitalise fresh opportunities
Sales team is Key
Risk of Starving during growth
Capability building programs
Less than Annual Budgets
Cross Functional team -planning
Long Term research
More Abstract
Adaptive Budgets

11. Managing Horizons - Performance Management
Conversion Rates
#Initiatives
Probability Metrics
Near Term Bottom Line
Cash Flow / Balance Sheet
Gross Margin / PAT
Productivity & Efficiency
.
Top Line Growth
Market Share% Change
New Customer %
Expected NPV
.

12. Horizon Model - Flow
H1
H2
H3

13. Staircases for Growth
❖ Staircases to Growth
➢ One Step at a time to
manage
■ Risks
■ Market Uncertainty
■ Capabilities Gap
Horizon 1
Horizon 2
Horizon 3
Create viable
options
Build Emerging
Businesses
Extend and
Defend Core
Businesses
Seed Growth
Options
Test Business
Model
Replicate
Proven
Business Model
Manage for
Profitability

14. Degrees of Freedom for Growth

15. H3 - Traditional View
Innovation 1
Innovation 2
Innovation 3
Innovation 4
Business
Case
Business
Case
Business
Case
Business
Case
MARKET
RESEARCH
Development of
Idea 1
Development of
Idea 2
INNOVATION EXECUTION
Heavy Investments

16. Technology
Geo Political
Scale of Economics
Consumer
behaviour

17. Principle Of Optionality

18. Model Risk

19. Culture of Experimentation

20. Constituents of Evolution
Product/Solution
Fit
Product/Market Fit
Growth
Hypothesis
Innovation Accounting

21. Stakeholder Measure Current Target Trend
Customer %users that complete that flow 30% 15%
%retention 20% 10%
Net Promoter Score 44 30
Business %Visits to sign up for service 20% 10%
%Conversion to paying
customers
15% 10%
Customer Acquisition Costs 1000 2000
Starting Point of
Innovation

22. Stakeholder Measure Current Target Trend
Customer %users that complete that flow 30% 25%
%retention 20% 15%
Net Promoter Score 44 20
Business %Visits to sign up for service 20% 10%
%Conversion to paying
customers
15% 12%
Customer Acquisition Costs 1000 1500
Experiment 1 Experiment 2

23. Stakeholder Measure Current Target Trend
Customer %users that complete that flow 30% 30%
%retention 20% 20%
Net Promoter Score 44 44
Business %Visits to sign up for service 20% 25%
%Conversion to paying
customers
15% 14%
Customer Acquisition Costs 1000 1600
Experiment 1 Experiment 2 Experiment 3

24. Constituents of Evolution
Product/Solution
Fit
Product/Market Fit
Growth
Hypothesis
Innovation Accounting
Innovation-Lean 360

25. H3 - New View
Innovation 1
Innovation 2
Innovation 3
Innovation 4
$
DEVELOP
& GROW

26. Animation
Character
Licensing
Music Publ
Book Publishing
Disney
Stores
Direct
Mall
HollyWood
Records
Software development
Animated
Feature films
Television Shows
Motion Pictures
Touchstone
Pictures
Hollywood
pictures
Miramax acqusition
Disney
Channel
K-CAL
TV
ABC Network
Disneyland
Walt Disney World
EPCOT
Tokyo Disney
Land
Disney MGM
Studios
Euro Disney
Animal Kingdom
Merchandising ,
Music and
Publishing
Filmed
Entertainment
Broadcasting
Theme Parks
1920 1990
DISNEY
GROWTH

27. PitFalls - Popular Mistakes in
Portfolio Management
Patterns H1 H2 H3
Under Siege X X X
Losing the right to grow X ✓ ✓
Running out of Steam ✓ X X
Inventing a new future
X ✓ X
X X ✓
Generating new ideas but not new businesses ✓ X ✓
Failing to seed for the future ✓ ✓ X

28. CONCLUSION

29. Bibiliography
Useful links
https://hbr.org/2007/07/to-succeed-in-the-long-term-focus-on-the-middle-term
https://www.pmi.org/learning/library/project-portfolio-management-tools-techniques-1050
https://hbr.org/1981/01/designing-product-and-business-portfolios
https://www.thoughtworks.com/insights/blog/why-lean-enterprise-transformation-hard
https://www.slideshare.net/anandsubramaniam/project-portfolio-management