The document discusses how portfolio management can deliver corporate strategy and goals. It summarizes the transformation of YBS's portfolio from 2012-2017, going from £12-15m to £300m. It outlines how the portfolio was aligned to strategy and prioritized, and discusses the internal and external factors that influenced priorities over time. It also provides examples of benefits and outcomes achieved through portfolio projects, and discusses lessons learned around adapting the portfolio as priorities and estimates change.

1. 'How Portfolio
Management can
deliver the
corporate strategy
and goals‘
Petula Allison

2. Page 2
A bit about me
me
Dualpassport
Yorkshire
WALKING
running
Diverseroles
financial services
CivilService
£1.9 billion
Australia
ProgrammeManager
PMO MANAGER
Relationship
Manager
Business
Engagement
APMG
PRINCE
Benefits
cats
DOGS
holidays
BakeOff
Formula1
HACKATHON
Open University
change

3. Page 3
YBS - Our Background
• Currently 3rd in the Top 10 Building Societies
• Head Office locations in Bradford, Leeds, Peterborough and Cheltenham
• Product offerings include Mortgages, BTL, Savings, Shareplans and more
recently YBS Commercial Mortgages
• Key Communication channels – Post, Phone and Digital with a big drive to
move towards Digital in 2020 and reduce paper
• 249 YBS outlets for face to face help across the UK
• Awards won in 2019 include the following:
Best Commercial Mortgage Provider
Accord Mortgages - Best Mortgage Lender
Most Efficient Complaint Handling - Gold Winner
Best Overall Mortgage Provider 2019 (moneynet)
Best Building Society Savings Provider 2019 (moneynet)
Best Offset Mortgage Provider – 5 years running (moneynet)

4. Page 4
Our Purpose

5. Page 5
The Portfolio then and now
❖ Pre 2012 the average size of the Portfolio c.£12-
15m
❖ During Merger and Acquisition activity the
Portfolio size rose to c.£25m
❖ 2013+ Transformation agenda and new Portfolio
of c.£300m over 5 years
▪ At its peak during the transformation
activity the annual portfolio was c.£95m
Then Now
❖ Portfolio investment size reducing – do more
with less
❖ Bi-modal Portfolio delivery including Agile and
Waterfall projects
❖ Digitising our business
❖ Federated change model

6. Page 6
Portfolio planning and management is easy……
Isn’t it……..?
Strategy and
Outcomes
Affordability,
P&L and ROI and NPV Estimating
Timescales
Stakeholders
Do-ability
Benefits!!!!!!
Risk
Appetite
Dependencies

7. Page 7
Our Vision
YBS Vision: To be the most trusted provider of financial services in the UK
CMO Vision: Change Management Office (CMO) provide services to support delivery of responsive,
effective and predictable change.
StrategicObjectives
To be valued for our challenge, insight and relevant opinions
To focus on what really matters, when it matters
To deliver clear messages to drive right outcomes for members, customers and colleagues
To attract, develop and be a provider of talent
5toThrive
Help
Protect
Digitalise
Expand
Charter
To be independent and objective
Customer at the heart Trustworthy Personal PassionateValues
Unleash

8. Changing the way we do Change….
➢ New Simplified Change Lifecycle introduced ➢New Identify Change – Steering Group, a new
Change Portal – and a single way of submitting ALL
Change
➢New Shape Steering Group – to assess ‘new changes’ and
manage and control their acceptance into the Portfolio

9. Planning our Portfolio
Challenges and Issues Faced
Financial Plan
was Challenging
Not bought into
‘it’ the plan or
process for the
Portfolio
Not all
stakeholders
engaged
No clear
understanding
of
organisational
priorities
Own v Group
priorities Unpopularity
Business
progress with
own changes
Nominated
Finance
contacts and
data owners
Captured
‘below the line’
change with
Champions
from across
the business
Groups
imperative and
ability for
Portfolio to act
as ‘enabler’
was grasped
Stakeholder
analysis
conducted –
engagement
weekly and
across the
business
Chief to
Champions
Listened to
concerns and
‘bought-in’ to the
process by engaging
and allowing
stakeholders to
influence their own
inputs and
contributions on
e.g. do-ability,
benefits
Impact of
progressing ‘own’
priorities to the
Groups Strategic
Imperatives is now
raised. With
awareness of
capacity across the
business has
improved. There is
now one way to
raise and manage
ALL change across
the Group
Briefing
developed to
share Group
Priorities and
the agreed
Portfolio
..and now we have

10. Page 10
YBS Transformation Portfolio
✓ Portfolio Role when helping define and manage the Portfolio is to ensure we do ‘the right things, at the
right time and in the right way within your organisations parameters and constraints!’
✓ It sounds easy – in practice we know it isn’t!
✓ Shaped and balance the Portfolio
✓ Our Portfolio was aligned to strategy and prioritised into investment buckets; Regulatory,
Infrastructure, Productivity and Growth
✓ Each bucket had its own criteria and relative priority in the Portfolio
Priority 1
Regulatory
‘to ensure we
remain
compliant’
Priority 2
Infrastructure
‘to make sure
we keep the
lights on!’
Priority 3
Productivity
‘ensure we are
being efficient
and keep
things as easy
and simple as
possible’
Priority 4
Growth
‘the things that
will grow the
business’

11. 11
PORTFOLIO DYNAMICS
An Example: Estimating Portfolio Overspend against Plan
If initiatives begin to show signs of potential overspend against Plan, or are larger than T Shirt size, or additional overflow of initiatives from one year to the next occurs,
the ‘ripple effect’ is that a totally unrelated initiative may face de-prioritisation or a reduced budget in order to balance the Portfolio’s annual spend.
❖ Early identification of the potential for an initiative to overspend against Plan due to scope changes or delivery difficulties
❖ Understand in advance the opportunities to offset that through savings elsewhere in the portfolio in ‘diallable’ initiatives
❖ Understand the relative priority of initiatives – what’s the least worst impact?
❖ Give advance notice to the initiative(s) selected to absorb the impact in order to proactively manage decision making
RISK: MITIGATION THROUGH UNDERSTANDING ‘RIPPLE EFFECTS’

12. PORTFOLIO: INTERNAL AND EXTERNAL INFLUENCERS
Business Outcomes
Strategic Portfolio
2015/16
Portfolio Refocused on Customer Experience
Transformation
Decision
Group Current
Account
2014/2015
Portfolio Refocused on Enabling
Projects to unlock Strategic
Initiatives
2013/2014
Portfolio Refocuses on MMR and Conduct
Agenda
Decision
N&P Current
Account
2016/17
Portfolio Refocused on Cost Base Reduction
Strategic Portfolio created 2013-2017
A blend and sequence of cost reduction
and growth
2012 (Year 0)
2013 (Year 1)
2014 (Year 2)
2015 (Year 3)
2016 (Year 4)
2017 (Year 5)
2018+ (Year 6)
Strategic Portfolio
agreed by Board
Internal Influencers External Influencers
Delivery must be more concentrated, and
faster with deliberately managed course
correction
Strategic capability requires establishment
of a winning target end-state; and then
maintenance of the end-state, year to year
The Change Portfolio can sometimes have initiatives
with conflicting priorities.
2016 – Boston Consulting Group
(BCG) Review
2015/2016
Net Promoter Scores
2014/2015 Mortgage
Transformation Success
2013/2014 Mortgage
Market Review
Programme (MMR)
Large Technology Projects –
challenging and complex
Proven track record of
Process Improvements
2013/2014 Conduct Risk
Programme
Experience of Working
with 3rd Parties
Mergers and Acquisitions a focus for the
Portfolio 2008-2012
2014/2015 AT Kearney
Report
2014/2015/2016
Single Multi Branded Platform
2013 Section 166
FSA
to
FCA
Increased Regulatory
Oversight
Mobile Banking
Banks – New Entrants
Continued Levels of
Regulatory Change
Customers
Trust
FS emerging from Financial Crisis
Learning
External Influencer
YBS – Internal Influencer
Decisions
Bank of England
Base Rate Changes
BREXIT
Decision
1

13. Now
End 2012 2013 2014 2015 2016 2017
Regulatory (Core)
Infrastructure (Core and SI))
Productivity (Efficiency SI)
2013/2014 – Infrastructure and Single Multi
Branded Platform (SMBP) was the priority to
create the capability to unlock benefits in
other Strategic Initiatives
2013 – Regulatory work had an increased focus
mid 2013 and for the next 2 years with the
emergence of Conduct Agenda and the
Mortgage Market Review
2015 - Growth and our Customers become the
strategic driver as we build trust. Customer
Experience Transformation is prioritised for the
Portfolio end 2015 and for 2016
2018 +
2016 - Crystallised focus on efficiencies from
productivity projects as the priority to help
reduce the Group’s costs. However, the level of
regulatory investment remains high
2017 Planning Round – includes continued
efficiency initiatives coupled with an
increasing focus back on our Growth agenda
for 2018
Growth (Customer SI)
Now
2
1 1
3
1
33 3
2 22
1
2 2
11
3
2
13
ProjectedBoard Agreed- Strategic Portfolio
SOMETIMES - PRIORITIES CHANGE

14. Benefits and Outcomes Achieved
1

15. Benefits and Outcomes Achieved
1
IT Software and Infrastructure
Upgrades
Customer Communications TransformationNew Telephony System

16. Benefits and Outcomes Achieved
YBS Branches to Agencies
…and over 100 small changes
Branch Quiet Hour

17. Benefits and Outcomes Achieved
1
Mortgage Platform
Digital Savings App

18. Page 18
Portfolio planning and management is easy……
Isn’t it……..?
Strategy and
Outcomes
Affordability,
P&L and ROI and NPV Estimating
Timescales
Stakeholders
Do-ability
Benefits!!!!!!
Risk
Appetite
Dependencies

19. Why did it work?
1

20. Key Points
▪ We all know that things change, priorities, estimates, benefits, funding
▪ Adapt the Portfolio
▪ Keep checking - not just individual business case and their right to have a place in the Portfolio, but the Portfolio overall
▪ Challenge assumptions and thinking
Our Challenges and the Lessons we Learned
2

21. Page 21
Questions

22. 1. Planning Round
Strategic Direction
•5 Scenarios worked
through and presented
to the June Board
•Planning round
strategic direction with
focus on manex
reduction obtained
from June Board.
•Decision made by
Board not to continue
with Group’s Current
Account
2. New Estimating
Approach
•Identified the need for
new estimating
approach for large
programmes of work
•New estimating
approach for
programmes
established that will
use cost & benefit
ranges
•Programmes identified
and estimating sessions
undertaken
3. Engagement and
Champions
•New stakeholder
engagement approach
developed to assess
awareness and impact of
portfolio initiatives on
different areas of YBS to
ensure all opportunities
and risks were surfaced
•Functional Business
Champions working
together to complete the
heat-map to assess
understanding and impact
on their functions
•Business Change outside
the change portfolio
initiatives getting
reviewed to identify any
dependencies within the
portfolio
4. Benefits
•New requirement to
sign off benefits at the
Benefit Realisation
Forum (BRF)
established enabling
for greater scrutiny
•Working closely
together with Benefits
Manager and Finance
to understand and
assess different types
of benefits and our
confidence in
delivering them
•Exceptional BRFs held
to challenge and
review project benefits
to prevent double
count
5. Priorities
•Scenario X fleshed out
and it is clear real
demand far outstrips
do-ability and
prioritisation is crucial
•Mandatory and
Discretionary clearly
separated
•Different prioritisation
lenses (5 Year Gross
Benefits, 5 Year Net
Manex Benefits, Risk
(by types) & % Actual
Spend of Total ELV) for
discretionary projects
identified and reviewed
6. Strategic Direction
•Strategic direction of
future demand
obtained from EMC
•Priority between
Growth and Cost
clarified by EMC
•Establishment of the
Planning Steering
Group and Planning
Working Group (re-
purposing existing
forums)
7. Do-ability
•Challenges around assessing
do-ability due to lack of
clarity and definition of
scope in new emerging
programmes
•The confidential nature has
required restricted and
controlled assessment of
these programmes in the
portfolio hampering the
speed of clarifying the
costs, benefits, do-ability
and risk
8. Proposal for the
Portfolio
•Working with SMEs
across the Business and
Change Delivery
•Assess and understand
viable proposal for the
portfolio, aligned to
the strategic priorities
•High level
understanding of
business case, do-
ability and level of
organisational change
within the constrains of
affordability
•Further assessments on
all do-ability now being
progressed
METHODOLOGY FOR PORTFOLIO CONSTRUCTION
We presented a proposal for the Portfolio Plan, which helped address the Groups priorities of reducing operating costs.
The activities and steps we have followed to iterate to an affordable and do-able proposal for the Portfolio are summarised below.
Over the past year we have supported the business delivering many of the changes and business outcomes to help drive the business forward. Our experiences of working with and delivering the differing and
sometimes complex nature of the Programmes and Projects has provided valuable learnings and insight into our approaches going forward. 22