Business Strategy and Management ModelsDavid Tracy
This document is a collection PowerPoint diagrams and templates used to convey 23 different business strategy and management models, as listed below:
3 C’s
ADL Matrix
Acquisitions Integration Approaches
Blue Ocean Strategy
Capability Maturity Model
GE-McKinsey Matrix
OODA Loop
Profit Pools
Resource-based View of Firm
Scenario Planning
Strategy Maps
Application Portfolio Optimization
Value Stream Mapping
Six Thinking Hats
4 P’s Marketing Mix
7 P’s Marketing Mix
6 Change Approaches
Cultural Dimensions Theory
Six Sigma Quality Management
Change Management Iceberg
Organizational Learning
Performance Prism
Crossing the Chasm (Product Lifecycle)
Whenever possible, multiple depictions are presented for each management model.
Modeling Competition-driven Business Strategy for Business IT AlignmentCωνσtantίnoς Giannoulis
Business strategy aims at supporting the vision of an enterprise,
by paving the way to achieve it through goals that direct the
strategy’s execution. Aligning business strategy to system requirements
requires explicit models from both business strategy and requirements
engineering. However, existing business strategy definition approaches
are informal and their syntax is based on natural language, therefore,
they cannot be used in model-driven alignment. An objective of our
research is to define a well-structured business strategy modeling language.
In this paper, we propose a business strategy meta-model based
on Porter’s work on competition driven strategy and its extension by
Stabell and Fjeldstad. Our UML meta-model is formalized in Telos and
OWL. An initial validation is performed by instantiating the meta-model
using a case scenario.
Quality strategic planning and strategy delivery is increasing in importance as a process and set of tools that guide the development of a municipality. In times when resources are tight, effective and efficient resource allocation is gaining even more importance. This publication will therefore suggest a practical four-stage process to strategic planning at the municipal level, including the setting up of effective structures for managing the strategy process (1), preparing a good strategic analysis of the municipality (2), strategy formulation (3) and strategy implementation (4). A key concept throughout this process is partnership: partnerships within the municipality, as well as with others outside the municipal building, with whom these four steps are undertaken together. Partnerships help make the municipal development process more transparent and accountable, thereby increasing the likelihood of the municipal development strategy to deliver the expected results and contribute to the improved quality of life of citizens.
C-level Innovation as Collaborative Business TransformationMalcolm Ryder
Executive adoption of innovations is an outcome of forming and pursuing a group ambition, but the group must be executives themselves, and it could also take a group of innovations to get any of them adopted.
Portfolio Management Fundamentals training delivers the tools and methods to assist you monitor the portfolio and project sources to enhance the portfolio management implementation in your corporation.
Portfolio Management Fundamentals training offers a systematic method to generating and management of a project portfolio. It allows you comprehend the importance of portfolio management; determine and describe the portfolio stakeholder tasks and responsibilities; outline and apprehend a portfolio management procedure; determine tools, approaches, and strategies for portfolio management; and distinguish the roles of the program management office (PMO) or portfolio executive office (PEO) in effective portfolio management.
Audience:
3-day course designed for:
Program managers
Product managers
Portfolio managers
Senior executives accountable for corporation policies
Managers accountable for generating organizational policies or for offering strategic recommendations
Members of portfolio, program, or project offices
Operational managers
Project team personnel, clients, and other stakeholders of the portfolio management process
TONEX Training Format:
Portfolio Management Fundamentals training is combined of theory and hands-on modules.
Theory and concepts are delivered through interactive lectures and presentations
Practical activities are provided through hands-on workshops, seminars, and group activities
Course Outline:
Overview of Portfolio Management
Elements of Portfolio Management
Getting Started on the Project Portfolio Management
Managing the Project Portfolio
Active Portfolio Management Fundamentals
Expected Revenues and Assessment
Active Portfolio Management Performance
Investment Management Process
Computable Methodologies of Investment Assessment
Portfolio Management and Evaluation
Psychological Features of Investment Management
Optional Topics:
The Philosophy Behind Investment Portfolio
Stocks Investment
Bonds Investment Management
Learn more about course objectives, pricing, etc.
Portfolio Management Fundamentals Training
https://www.tonex.com/training-courses/portfolio-management-fundamentals-training/
Mergers and Acquisitions Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 2,000 hours of work. It is considered the world's best & most comprehensive Mergers and Acquisitions Toolkit. It includes all the Frameworks, Tools & Templates required to improve the M&A capability of your organization and boost your personal career. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
Business Strategy and Management ModelsDavid Tracy
This document is a collection PowerPoint diagrams and templates used to convey 23 different business strategy and management models, as listed below:
3 C’s
ADL Matrix
Acquisitions Integration Approaches
Blue Ocean Strategy
Capability Maturity Model
GE-McKinsey Matrix
OODA Loop
Profit Pools
Resource-based View of Firm
Scenario Planning
Strategy Maps
Application Portfolio Optimization
Value Stream Mapping
Six Thinking Hats
4 P’s Marketing Mix
7 P’s Marketing Mix
6 Change Approaches
Cultural Dimensions Theory
Six Sigma Quality Management
Change Management Iceberg
Organizational Learning
Performance Prism
Crossing the Chasm (Product Lifecycle)
Whenever possible, multiple depictions are presented for each management model.
Modeling Competition-driven Business Strategy for Business IT AlignmentCωνσtantίnoς Giannoulis
Business strategy aims at supporting the vision of an enterprise,
by paving the way to achieve it through goals that direct the
strategy’s execution. Aligning business strategy to system requirements
requires explicit models from both business strategy and requirements
engineering. However, existing business strategy definition approaches
are informal and their syntax is based on natural language, therefore,
they cannot be used in model-driven alignment. An objective of our
research is to define a well-structured business strategy modeling language.
In this paper, we propose a business strategy meta-model based
on Porter’s work on competition driven strategy and its extension by
Stabell and Fjeldstad. Our UML meta-model is formalized in Telos and
OWL. An initial validation is performed by instantiating the meta-model
using a case scenario.
Quality strategic planning and strategy delivery is increasing in importance as a process and set of tools that guide the development of a municipality. In times when resources are tight, effective and efficient resource allocation is gaining even more importance. This publication will therefore suggest a practical four-stage process to strategic planning at the municipal level, including the setting up of effective structures for managing the strategy process (1), preparing a good strategic analysis of the municipality (2), strategy formulation (3) and strategy implementation (4). A key concept throughout this process is partnership: partnerships within the municipality, as well as with others outside the municipal building, with whom these four steps are undertaken together. Partnerships help make the municipal development process more transparent and accountable, thereby increasing the likelihood of the municipal development strategy to deliver the expected results and contribute to the improved quality of life of citizens.
C-level Innovation as Collaborative Business TransformationMalcolm Ryder
Executive adoption of innovations is an outcome of forming and pursuing a group ambition, but the group must be executives themselves, and it could also take a group of innovations to get any of them adopted.
Portfolio Management Fundamentals training delivers the tools and methods to assist you monitor the portfolio and project sources to enhance the portfolio management implementation in your corporation.
Portfolio Management Fundamentals training offers a systematic method to generating and management of a project portfolio. It allows you comprehend the importance of portfolio management; determine and describe the portfolio stakeholder tasks and responsibilities; outline and apprehend a portfolio management procedure; determine tools, approaches, and strategies for portfolio management; and distinguish the roles of the program management office (PMO) or portfolio executive office (PEO) in effective portfolio management.
Audience:
3-day course designed for:
Program managers
Product managers
Portfolio managers
Senior executives accountable for corporation policies
Managers accountable for generating organizational policies or for offering strategic recommendations
Members of portfolio, program, or project offices
Operational managers
Project team personnel, clients, and other stakeholders of the portfolio management process
TONEX Training Format:
Portfolio Management Fundamentals training is combined of theory and hands-on modules.
Theory and concepts are delivered through interactive lectures and presentations
Practical activities are provided through hands-on workshops, seminars, and group activities
Course Outline:
Overview of Portfolio Management
Elements of Portfolio Management
Getting Started on the Project Portfolio Management
Managing the Project Portfolio
Active Portfolio Management Fundamentals
Expected Revenues and Assessment
Active Portfolio Management Performance
Investment Management Process
Computable Methodologies of Investment Assessment
Portfolio Management and Evaluation
Psychological Features of Investment Management
Optional Topics:
The Philosophy Behind Investment Portfolio
Stocks Investment
Bonds Investment Management
Learn more about course objectives, pricing, etc.
Portfolio Management Fundamentals Training
https://www.tonex.com/training-courses/portfolio-management-fundamentals-training/
Mergers and Acquisitions Toolkit - Framework, Best Practices and TemplatesAurelien Domont, MBA
This Toolkit was created by ex-McKinsey & Deloitte Consultants, and JP Morgan Investment Bankers, after more than 2,000 hours of work. It is considered the world's best & most comprehensive Mergers and Acquisitions Toolkit. It includes all the Frameworks, Tools & Templates required to improve the M&A capability of your organization and boost your personal career. This Slideshare Powerpoint presentation is only a small preview of our Toolkit. You can download the entire Toolkit in Powerpoint and Excel at www.slidebooks.com
This course is designed to develop your skills as a strategy consultant. It provides a practical toolkit and gives opportunities to practice new skills in an inspiring yet safe environment. It leads to the following professional qualifications: The Certificate in Management Consulting Essentials (CMCE) and Diploma in Management Consultancy (DMC). We are fully approved to deliver these qualifications by the Chartered Management Institute, Institute of Business Consulting and Institute of Value Management.
Download our Strategy Evolution Framework PowerPoint Presentation Slides for strategic focus and planning. The strategic management model PowerPoint presentation includes slides such as phases in the evolution of strategic management, strategy framework, strategy evolution template, the evolution of innovation strategy, etc. Explain the steps of strategy formulation and implementation like goal setting, structure, analysis, control, and feedback. This assists in the evaluation of strategic alternatives and the dynamic allocation of resources. Showcase the phases of business planning using this strategy planning evolution PPT slides. These ready to use strategy management PowerPoint templates are designed by our team of experts after an in-depth study of the topic. All slides of strategy planning presentation are easy to customize as per the specifications of the users. Users can combine text and graphics to create professional presentations. Download the evolution of business strategy presentation slides to present the effectiveness of business planning. Bring down the degree of ire with our Strategy Evolution Framework Powerpoint Presentation Slides. Assuage any inflamed emotions. https://bit.ly/3ytlGcF
Measure What Matters - New Perspectives on Portfolio SelectionUMT
Stock market investors articulate their goals explicitly or implicitly by following the philosophy and methodology of a market expert that fits their investment objectives and appetite for risk. For example, for value and income stocks they may rely on the research conducted by Wharton finance professor Jeremy Siegel¹ or read up on market pros like War-ren Buffet. Much like the stock market investor, companies investing in change face similar challenges when considering where to allocate budget and resources to meet financial and strategic objectives.
This course is designed to develop your skills as a strategy consultant. It provides a practical toolkit and gives opportunities to practice new skills in an inspiring yet safe environment. It leads to the following professional qualifications: The Certificate in Management Consulting Essentials (CMCE) and Diploma in Management Consultancy (DMC). We are fully approved to deliver these qualifications by the Chartered Management Institute, Institute of Business Consulting and Institute of Value Management.
Download our Strategy Evolution Framework PowerPoint Presentation Slides for strategic focus and planning. The strategic management model PowerPoint presentation includes slides such as phases in the evolution of strategic management, strategy framework, strategy evolution template, the evolution of innovation strategy, etc. Explain the steps of strategy formulation and implementation like goal setting, structure, analysis, control, and feedback. This assists in the evaluation of strategic alternatives and the dynamic allocation of resources. Showcase the phases of business planning using this strategy planning evolution PPT slides. These ready to use strategy management PowerPoint templates are designed by our team of experts after an in-depth study of the topic. All slides of strategy planning presentation are easy to customize as per the specifications of the users. Users can combine text and graphics to create professional presentations. Download the evolution of business strategy presentation slides to present the effectiveness of business planning. Bring down the degree of ire with our Strategy Evolution Framework Powerpoint Presentation Slides. Assuage any inflamed emotions. https://bit.ly/3ytlGcF
Measure What Matters - New Perspectives on Portfolio SelectionUMT
Stock market investors articulate their goals explicitly or implicitly by following the philosophy and methodology of a market expert that fits their investment objectives and appetite for risk. For example, for value and income stocks they may rely on the research conducted by Wharton finance professor Jeremy Siegel¹ or read up on market pros like War-ren Buffet. Much like the stock market investor, companies investing in change face similar challenges when considering where to allocate budget and resources to meet financial and strategic objectives.
Portfolio Rationalization - Making Sound Financial and Strategic Decisions in...Robert Greiner
This presentation outlines a methodology and set of frameworks useful for making strategic product portfolio rationalization decisions in times of uncertainty intelligently and quickly (rapid vs. rushed) regardless of organization size.
Additionally, we provide thoughts and ideas around the current emergent state of the world & market due to COVID-19 and how organizations can effectively navigate through three key phases.
Real Options, Investment Analysis and Process PANKAJ PANDEY
Understand the capital budgeting process:
Document the policies and practices of companies in India and compare them with that of the companies in developed countries.
Understand the linkage between corporate strategy and investment decisions.
Define strategic real options.
Show the valuation of real options.
Keith turner quick silver funding solutions the role of finance in the stra...keithturnerquicksilverfun
A good strategic plan includes metrics that translate the vision and mission into specific end points. This is critical because strategic planning is ultimately about resource allocation and would not be relevant if resources were unlimited.
Capital budgeting accounting is a crucial financial management process that involves evaluating potential long-term investment projects to determine their feasibility and profitability. By analyzing these investment opportunities, businesses can make informed decisions about allocating their financial resources wisely. In this comprehensive guide, we explore the significance of capital budgeting accounting in strategic decision-making. From understanding the core principles to exploring various capital budgeting methods, this article sheds light on how businesses can utilize this accounting technique to achieve sustainable growth and maximize returns on investments.
Making Strategy Work for Entrepreneurssohailgondal
Challenge: Traditional strategic planning approach fails to handle the ambiguity, uncertainty and complexity prevailing in entrepreneurial environments. Consequently, these barriers become the reason for entrepreneurs to jettison robust strategic thinking or management
Way Forward: An effective strategic planning capability can do more than address the common and predictable issues that cause a new ventures demise. This paper defines an agile approach to strategy that balances the rigor and speed entrepreneurs need.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
Website Link :
https://skyeresidences.com/
https://skyeresidences.com/about-us/
https://skyeresidences.com/gallery/
https://skyeresidences.com/rooms/
https://skyeresidences.com/near-by-attractions/
https://skyeresidences.com/commute/
https://skyeresidences.com/contact/
https://skyeresidences.com/queen-suite-with-sofa-bed/
https://skyeresidences.com/queen-suite-with-sofa-bed-and-balcony/
https://skyeresidences.com/queen-suite-with-sofa-bed-accessible/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-king-queen-suite-with-sofa-bed/
https://skyeresidences.com/2-bedroom-deluxe-queen-suite-with-sofa-bed-accessible/
#Skye Residences Etobicoke, #Skye Residences Near Toronto Airport, #Skye Residences Toronto, #Skye Hotel Toronto, #Skye Hotel Near Toronto Airport, #Hotel Near Toronto Airport, #Near Toronto Airport Accommodation, #Suites Near Toronto Airport, #Etobicoke Suites Near Airport, #Hotel Near Toronto Pearson International Airport, #Toronto Airport Suite Rentals, #Pearson Airport Hotel Suites
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
INVESTMENT PORTFOLIO MANAGEMENT - HOW TO ALIGN INVESTMENTS PORTFOLIO AND BUSINESS STRATEGY
1. English Version Jun, 23 of 2015
INVESTMENT PORTFOLIO
MANAGEMENT
HOW TO ALIGN INVESTMENTS PORTFOLIO
AND BUSINESS STRATEGY
JULIO ARNAUD
2. JULIO ARNAUD
2
INVESTMENT PORTFOLIO
MANAGEMENT
HOW TO ALIGN INVESTMENTS PORTFOLIO AND BUSINESS STRATEGY
“And a closer look reveals that most plans don’t contain a strategy at all but
rather a smorgasbord of tactics that individually make sense but collectively
don’t add up to a unified, clear direction that sets a company apart – let alone
makes the competition irrelevant.”
Blue Ocean Strategy
W. Chan Kim / Renée Mauborgne
Introduction
Every company is a set of tangible and intangible assets. It produces or
distributes a utility (products or services) through coordinated processes and
activities. The main purpose of a company is to create and distribute wealth, so
the market must realize a higher value in its products than the costs involved in
its creation. However, this is not enough; you must do it better than the
competition. The customer should give a higher value to your products than to
the competitor products regarding on price, effectiveness, quality, or any other
product attribute.
In order to achieve market recognition to the value of its products and the fair
return on investment, a company shall face the competitive forces through the
implementation of the strategy. The business strategy assumes a fundamental
role in defining the company's position in its business environment determining
the attributes to be valued in its products, and therefore defines the way to run
and to integrate its processes and activities
Also, as important as defining a strategy is to ensure its execution and the
workforce commitment to it. In this sense, the model used for selecting, for
deciding investment projects and for the resources allocation plays a key role in
enabling the strategy implementation. Failure to observe the strategic objectives
will keep the investment portfolio in a huge distance from the company's
mission, its identity and therefore from the shareholders interest. Thus, the main
objective of the investment portfolio management is to ensure the fulfillment of
strategic objectives while keeping a healthy and profitable cash flow.
So, a definition of a consistent strategy, focused, unique, with a clear message
and simple understanding is a necessary condition for a good and effective
3. JULIO ARNAUD
3
portfolio management. A company must evaluate the value perceived by its
Customers in its products in order to develop an effective method for investment
portfolio management.
Although the company’s strategy defines the investments and actions for the
future profitability of the company, on the other hand the company also needs a
healthy cash flow that provides a sustainable economic and financial condition.
The company will often be compelled to invest in its current operation, in order
to create incremental value in their products and services, to ensure a
competitiveness and profitability. Thus, one great challenge of investment
portfolio management is to balance the investments of current operations with
future operations.
Although we can set some milestones for the portfolio management, this is a dynamic process.
Investment portfolio
Projects under an investment portfolio can be classified according to the stage
they are in.
1. Projects in operation: they are project already running and commercially
active, generating positive or negative results. These projects generate the
present cash-flow. However, they also receive resources, mainly for creating
incremental value needed to their competiveness and to maintain their
profitability.
A project in operation is not same of a company, in fact companies are formed from one or
more projects in operation.
2. Projects under implementation: They are in a foundation phase and they are
usually large resources consumer, and also they still don’t generate revenue.
They contribute to meeting the strategic objectives, to creating value and to the
future profitability. At the moment a project in implementation becomes
commercially active, it will be classified as a project in operation.
3. Projects in proposition: They are projects in the planning stages. They are
proposals of investment which haven’t had its approval to be implemented yet.
The basic premises for a project in proposal become a project in
implementation are its strategic alignment and the existence of resources for its
implementation.
4. JULIO ARNAUD
4
Selecting and passing projects in proposition to an
implementation phase.
When we inspect the company’s project in proposition portfolio, we often come
to the conclusion there are not enough resources to develop all projects. We will
need to choose a set of projects that maximize value creation and the future
profitability of the company and at the same time it fits in the limitation of
resources available for new projects.
The first filter naturally required for an approval of a project in proposition is its
alignment to strategy. New project approvals must meet its strategic role it must
maximize the value attributes that make up the business strategy.
Although the dominant speech in companies is the alignment to strategy we can
often observe company’s staff appealing for projects that don’t contribute to
creation of the values set in the strategy. They usually argue the project has an
excellent profitability. But once the strategic objectives are met by the set of
projects in operation and under construction, the practice of approving projects
without adherence to strategy will keep the investment portfolio even more
distanced from the strategic planning and it will make uncertain the creation of
the expected strategic values, and therefore uncertain the company's
competitiveness and a more perennial profitability.
Strategic analysis (I) – Value Attributes
For those unfamiliar with the use of the Matrix of Value Assessment and Value Curve, please
refer to “Blue Ocean Strategy” by W. Chan Kim and Renée Mauborgne, teachers of strategy
and management at INSEAD – France.
The value attributes offered by the company's products or services, and also
how they are perceived by the chain of consumption are issues inherent to the
discussion and definition of the company’s strategy. The development of a
value consumes company resources, and off course, these resources are
limited. So it will be needed to choose those projects that best fit the values
pursued by the company within a framework of an appropriate use of the
company’s resources.
Therefore, an investment portfolio management is effective only when it
promotes the alignment of the portfolio with the strategy, provides the right
balance in the generation of these values and in the company's capacity to use
resources available. And also it must ensure a healthy and sustainable cash
flow. It is more than a traditional analysis of Capex, profitability and risk used by
many companies.
In order to check if strategic value attributes is being met by the investment
portfolio, it is necessary to compare the sum of each important values attributes
of all projects in operation and under construction to the level of the value
attributes designed in the strategy process. You can do that through the use of
Values Curves.
5. JULIO ARNAUD
5
When the sum of each value attributes of the portfolio has a perfect match to
the strategic Values Curve, we have an optimal portfolio and a maximization of
creating strategic value.
Chart 1 - Investment Portfolio perfect aligned to the strategy
However, gaps between attributes value of an investment portfolio with strategy
Value Curve frequently arise as can be seen in the areas and in the chart
below. When the investment in one value attribute of the portfolio is higher than
the level set by the strategy (graph area), there is a waste of resources and
therefore unnecessary cost. On the other hand when the investment in one
value attribute is lower the level set by the strategy (graph area), there is a
lack of investment and therefore the attribute will not reach the desired
investment level.
Chart 2 - Investment portfolio misaligned to the strategy
The analysis of an opportunity to approve the implementation of a project
should consider the project's contribution to the portfolio perfect match to the
strategy. Thus, the analysis must seek: (i) strengthen value attributes with high
importance in meeting the business strategy, especially those attributes with
poor investment effort, and (ii) avoid unnecessary investment in the
development of value attributes with lower importance. An approved project
6. JULIO ARNAUD
6
must contribute to the strategic value attributes and invests on high valuated
attributes. Furthermore, when as approved project invests on a low valuated
attributes, there is no significant contribution in creating strategic values and
there is a waste of resources. In fact, the more the project contributes to align
the investment portfolio to the strategy Values Curve, the greater its suitability to
strategy.
Consider the scenario where the portfolio investments have a perfect alignment
to the Value Curve of the company´s strategy, as area on chart 3 bellow:
Chart 3 - Project analysis in when the investment portfolio is aligned to the strategy
When a project in proposition invests more in a value attribute than it is
necessary to comply with the needs defined in the strategy I , there is a
waste of resources that will contribute to a misalignment to the strategy.
When a project in proposition invests less in a value attribute than it is
necessary to comply with the needs defined in the strategy II , there is an
insufficient investment to develop the attribute and also there is a
contribution to a misalignment to the strategy.
Therefore, in the case of perfect alignment between the portfolio and the
strategy, we should give priority to a set of projects that shows direct alignment
to the strategy.
Now consider the scenario where the portfolio investments exceed the strategic
value as area on chart 4 bellow. This scenario shows the portfolio misaligned
to the Value Curve of the company´s strategy, revealing waste of resources in
developing attributes not well valued by the consumer chain.
7. JULIO ARNAUD
7
Chart 4 - Project analysis in when the investment portfolio exceeds the strategy
When a project in proposition invest less than it is necessary to comply with
the needs defined in the strategy I , it should seem as an insufficient
investment to the attribute. However, once there is an over investment in the
portfolio and therefore a waste of resources II , this occurrence helps to
align the portfolio with the strategy.
On the other hand, when a project in proposition invest more than it is
necessary to comply with the needs defined in the strategy III , it will
strengthen the waste of resources in the portfolio IV .
Consider the scenario of the area on chart 4 bellow, where the portfolio
investments are insufficient to develop the strategic value.
Chart 5 - Project analysis in when the strategy exceeds the investment portfolio
8. JULIO ARNAUD
8
When a project in proposition invests more than it is necessary to comply
with the needs defined in the strategy I , it should seem as a waste of
resources. Nevertheless, considering the portfolio doesn’t invest enough
resources to develop the strategic value, this occurrence helps to fix such
portfolio failure and therefore it helps to align the portfolio with the strategy
II .
Also, When a project in proposition invest less than it is necessary to comply
with the needs defined in the strategy III , it will strengthen the lack of
investment to develop the strategic value IV .
Based on the above considerations we can assume the misalignment between
portfolio and strategy can be mitigated through the approval and implementation
of new projects with prominent qualities to compensate portfolio deviations from
strategy. Also, projects that contribute to appropriately strength the company’s
strategy can be easily identified by a comparative analysis of investments on
value attributes of the project, of the project portfolio and of the strategy.
Moreover, we can easily identify projects that they need to be reviewed and
those that should be eliminated from the portfolio.
Strategic analysis II – Strategic objectives
So far we have analyzed the projects regarding their contribution to align the
investment portfolio to the strategic Value Curve. However, it is also necessary
to investigate the contribution of each project in analysis to meet the strategic
goals. As expected, all selected projects in proposition should reach or exceed
the strategic goals along all projects already in implementation and operation.
When the decision makers analyze a project in proposition, they should be
aware of how much such project will contribute to the achievement of strategic
goals and how much resources it will consume. The higher contribution and the
lower resources consumption better will be the project.
Important: resource is not just money, includes other sources such equipment, human
resources, natural resources, knowledge, etc.
Decision makers should also compare the project in analysis to all other
projects in portfolio (either in proposition, implementation or operation) in order
to identify the best projects and then set their priorities for implementation.
Graphical representation can be built to help the managers to compare projects
in portfolio. For instance, a chart (chart 6) can be built where the vertical axis
represents the contribution to the strategic goals and the horizontal axis
represents the amount of resources consumed by the projects. Also, the
minimum degree of project’s contribution and the maximum use of resources
should be defined too splitting the chart into four parts. Then, the projects are
plotted on the chart revealing projects with a high interest for its implementation
(a high contribution to the strategic goals and low resources consumption),
projects with some attractiveness (high contribution and high consumption of
resources) and also disposable projects (poor contribution to the strategic
goals).
9. JULIO ARNAUD
9
Chart 6 - Strategic and Resources Analysis of projects
If you have a more complex portfolio, it should be difficult to build a chart and
plot all projects. Another approach is to create a matrix with all projects in
portfolio that states how much each project contributes to the strategic goals
and how much each projects consumes strategic resources. The matrix could
be processed in spreadsheets, or simulation software or other automated
process in order to evaluate priorities in investment and to maximize the
strategic outcomes for the available resources.
Financial and economic analysis
Beside to addressing the projects’ contribution to the company's strategy, we
must also address economic and financial evaluation and viability for all
projects, including a detailed analysis of technical aspects of production, their
potential financial return on investment and also their risks.
The analysis of the project's cash flow and their key factors brings highly
relevant information that will support their approval decision – for example their
wealth creation (NPV), Internal rate of return (IRR or MIRR), payback,
breakeven, opportunity cost, etc. The information elected to be used in decision
making process and their eventual weights vary according to culture and needs
of each company and moreover its business environment.
Similar to the strategic analysis, the decision makers should be concerned
about the comparison of the project in evaluation with all other projects in
10. JULIO ARNAUD
10
portfolio. Such comparison helps to identify the most profitable projects, its risk
exposure and the resources that will consume.
Note: For each risk identified during the project planning and in its financial and economic
analysis, a respective mitigation and contingency plan shall be submitted.
Putting all together
The projects’ economic and financial analysis itself does not guarantee the
effective implementation of business strategy, regardless the criteria used. So it
isn’t enough to ensure a proper selection of projects to constitute the company
portfolio.
On the other hand, the strategic analysis of the projects does not guarantee the
profitability and it could create a future situation of low profitability, or even the
loss of sustainability.
Therefore, to identify and select the best investment projects – those with better
contribution to strategic and profitability goals, it is necessary to consider both
analyzes together.
In order to ease the comparative assessment between projects, you can use
charts or graphs like the strategic analysis chart - goals x resources presented
earlier modified with the inclusion of profitability information – represented by
the size of the circle for each plotted project.
Chart 7 - Strategic and financial analysis.
11. JULIO ARNAUD
11
Alternatively, for an evaluation that demands more complexity, you can build a
project matrix stating the project’s contribution for each strategic goals, the
resources needed and the most important economic and financial information.
The matrix analysis is usually made with the aid of mathematical tools that can
generate an optimal set of investment projects that maximize the strategic and
financial results (regarding the criteria used)
The use an evaluation that considers at the same time the economic and
financial analysis and the strategic goals and resource constraints, as well,
creates valuable conditions to mitigate the risk of a loss-making portfolio or a
failure in the strategy execution. It’s creates a breeding ground for value
creation in behalf of the company and its shareholders.
Projects under implementation
The projects being implemented should be reviewed periodically to endorse its
strategic adherence, profitability and risks, despite the investments already
made. So, it is necessary to periodically update of the analysis performed at the
time of their approval or their last update – using the same criteria developed for
project in proposition.
The update of an analysis may indicate that a specific project does not
contribute adequately to create value, or even destroys the value of the
investment portfolio, either profitability and / or strategic value. Such projects
are not intended to remain in the portfolio, but that decision cannot be taken
solely considering this analysis. You will need a further investigation to identify
and compare all viable alternatives like suspend, sell, shut, transform, etc. In
order to select the best alternative, you will need to compare all alternatives
through strategic analysis, and financial and economic analysis of each
alternative, including the identification and mitigation of the risks involved.
Projects in operation
Projects in operation should suffer periodic reviews as the projects under
implementation.
They can be divided into four groups:
Projects that deliver profitability equal to or above the minimum
acceptable rate of return (MARR), and effectively contribute to the
achievement of the strategic goals and value attributes. Those are
projects that deliver value to the company and must remain in the
company's portfolio.
Projects without profitability or projects less profitable than the MARR
and at the same time do not contribute to the achievement of the
12. JULIO ARNAUD
12
strategic goals and value attributes. Those are projects that destroy
value and, if possible, should be removed from the company's portfolio.
Projects without profitability or projects with lower profitability than the
MARR, but effectively contribute to the achievement of the strategic
goals and value attributes. These projects should be reviewed. The first
question to be answered is if there is an incremental investment that can
raise profitability to the desired level. If so, the project should remain in
the portfolio and the incremental investment is expected to compete for
company resources. If not, you should identify the alternatives and
perform a comparative analysis of alternatives (like in projects under
implementation).
Projects that deliver profitability equal to or above the MARR, but do not
contribute to the achievement of the strategic goals and value attributes.
Those projects should also be investigated. Is there any incremental
investment that can create value and contribute to the achievement of
strategic goals? We should also investigate whether the resources
generated by the project contribute to the support projects under
construction or projects proposition. If the project does not meet any of
these requirements, it would be removed from the portfolio.
Important: If the portfolio contains a substantial number of projects in operation with suitable
profitability that do not contribute to the construction of the desired strategic value, the portfolio
is misaligned with the business strategy. Therefore is strongly recommended to consider selling
some these projects in order to bring focus on the strategy execution.
Project in Operation Analysis
STRATEGIC ADHERENCE
Yes No
PROFITABILITY
Yes KEEP REVIEW
No REVIEW ELIMINATE
Present profitability Vs. Future profitability
Although an adequate management of a projects investment portfolio seek
incessantly to achieve the targets set in the business strategy, it is essential that
the portfolio guarantees the economic and financial conditions necessary for the
survival of the company. Investing in projects in operation generates the
incremental value necessary to compete and maintain or enhance the
company's profitability. Those projects in operation are an extremely important
generation source of the resources to support projects under implementation
and future projects.
13. JULIO ARNAUD
13
Chart 8 - Projects' resource allocation
So, one of the big questions to be answered in the investment portfolio
management is: how much resources I allocate for projects in operation at the
expense of projects under implementation or proposition.
Quantification
In order to balance the allocation of resources in projects in operation, under
implementation and proposal stages in the portfolio, it is necessary to know and
quantify the resources available in the company and the resources needed to
implement such projects as well. Resources is all necessary and relevant inputs
to the correct execution of projects, it isn’t limited to financial resources, it can
be equipment availability, skilled labor, management capacity, among others.
Notice that that both the availability and the need for resources changes in time.
Thus, quantifying these features means determining the distribution of
availability and need over a period of time.
The identification and quantification of available resources should consider the
own resources as well the resources offered by third parties, such as financing,
partnerships, service contracts, leases, among others. On the other hand, the
identification and quantification of the resources required to implement projects
requires a careful analysis of the requirements and needs of each of these
projects.
An especial attention is necessary regarding projects in proposition. Since some
projects in proposal stage will be approved and others won’t, and also new
project proposals will appear and will be added in portfolio, the portfolio
behaves in a very dynamic way. There is lot of uncertainty about the
implementation of projects under this category. Thus, it´s too difficult to predict
exactly the total amount of resources needed to implement all good projects in
the proposal stage. One good approach to estimate the resources to be
14. JULIO ARNAUD
14
reserved to such projects is to identify and quantify the resources needed to
remove the gaps between: i) the projects in operation and under
implementation; ii) and the strategic goals and values, taking into account the
present projects in proposition portfolio, the projects execution and business
opportunities history.
Finally, the total amount of resources required for the portfolio is obviously the
sum of: i) resources required for the execution of projects in operation and
under construction; ii) the projection of resources earmarked for new projects in
proposition stage.
Resources analysis
Once we have identified and quantified the resources available and needed, the
next step is to match the availability with the need over time. Very often this
analysis will point to a situation that the need for resources will exceed
availability, revealing a momentary incapacity to run the projects portfolio. Other
times this analysis will identify an excess of unused available resources,
revealing waste of resources. Both situations indicate the need for adjustments
in the portfolio. Such adjustment can be done anticipating or postponing
projects, or through a scope or technology review, identifying new sources of
resources, and so on. However, you must analyze the impacts of such
adjustment in the portfolio regarding economic and financial perspective, and
strategic goals achievement, as well.
Important: Normally companies tend to review only projects in proposition. Those projects are
easier to be changed since they have not started yet. However, these projects are essential to
long-term strategy. To sacrifice only them can mean sacrifice the whole strategy. Consider ever
reviewing the entire portfolio.
In the extreme case, we can have a situation that the portfolio is infeasible
because the resources needed to meet the strategic goals exceed the available
resources most of the time. In this case, you must rethink the projects portfolio
to ensure its feasibility and adherent to the strategy. Sometimes, you will need
to review the strategic goals for more consistent values compatible the
company reality and its market position.
Final considerations
An effective projects portfolio management should not be focused solely on
profitability and on the use of financial resources. It is critical that the selection,
maintenance and implementation of projects are taken to achieve the
company´s strategy, since the execution of the portfolio will lead to the future
positioning for the company. In other words, the portfolio must objectively
contribute to the strategic goals achievement and to strengthen the value
attributes defined for the company’s products and services.
15. JULIO ARNAUD
15
Also the strategic resources essential to run the portfolio are more than solely
the financial resources available. All essential resource needed to run the
portfolio must be considered.
Moreover, bearing in mind the frenetic changes in business environments, the
market volatility, the frequent launch of innovations, the deviations in projects
execution, among other factors, it is essential manage your projects portfolio in
a very dynamic way otherwise you will increase the risk of profitability loss and
failure in the strategic objectives achievement.
Thus, we finally conclude that an effective portfolio management must
necessarily be a dynamic activity and supported by the Strategy-Resources-
Profitability tripod.