The document proposes a pilot to optimize an organization's project portfolio using a method called "Return on Strategy". The pilot involves three workshops to map the portfolio to strategic objectives, understand each project's strategic contribution, and identify investment scenarios. The goal is to quality assure the Return on Strategy concept and provide recommendations to improve how the portfolio aligns with and contributes to the organization's strategy.

1. PORTFOLIO OPTIMIZATION – “RETURN ON STRATEGY”
PILOT PROPOSAL
2015-02-10

2. AGENDA
¢ Introduction to The Goodwind, Pro4U and ValueMiner
¢ Introduction to “Return on Strategy”
¢ Presentation of proposed Pilot
- Portfolio Optimization (Return on Strategy)
¢ Next step

3. THE “RETURN ON STRATEGY” CONCEPT IS DESIGNED AND
DELIVERY BY THREE PARTIES – EXPERTS IN IT MANAGEMENT
• An agile IT Management consultancy firm with expertize in Performance
Management and Strategy
• Helping IT organizations to understand the affects of digitalization and increased
unpredictability (X-factor)
• Clients: ABB, Ericsson Global Services, Stockholms Stad, Dataföreningen
• A combination of technique and software which clarifies thinking and focuses on
achieving objectives
• Helps to quickly identify blind spots as well as to recognize and avoid risks. Assists
in identifying and bridging gaps and ensuring improved quality
• Clients: TeliaSonera, Volvo, etc
• Pro4u generates business value with clients through the initiation, and running
business and change management project.
• Pro4u supplies consultant with extensive experience of leadership, business
development, project management and IT
• Clients: Handelsbanken, ABB, Folksam, etc

4. AGENDA
¢ Introduction to The Goodwind, Pro4U and ValueMiner Company and
¢ Introduction to “Return on Strategy”
¢ Presentation of proposed Pilot
- Portfolio Optimization (Return on Strategy)
¢ Next step

5. “The main hypothesis of a traditional business case is that we
can isolate the effects of an investment over time (3-5 years) to
calculate its benefit contribution. But the fact is that the
hypothesis is far from true. In the ‘new normal’ we need new
investment management methods that eliminates ‘the X
factor’ (unpredictability).”

6. DEFINITION AND GUIDING PRINCIPLES FOR “RETURN ON
STRATEGY”
Principles for “Return on Strategy”
• Return on Strategy is a “snap shot” to help decision makers evaluate and
make changes to investments.
• Return on Strategy is to define investments’ alignment with the strategic points
of view at any given time (eliminating the X-factor)
• The value of an investment is how well it contributes to the strategic objectives
• The Strategy and Return on Strategy structure depends on the dynamics of
the industry – the strategic break-down structure (ValueMIner) is a snap-shot
of current situation.
Definition
• A method to align investments with the strategic objectives
• A method to evaluate an investment’s contribution to the
strategic objectives at any given moment (contribution/SEK)

7. ValueMiner
A 30% faster process that brings 100% alignment between
strategic objectives, challenges, solution and investments
The ValueMiner method allows us to easily identify and
evaluate the “Return on Strategy” of the Investments
(contribution/SEK)

8. WHAT ARE THE DEPENDENCIES AND CONTRIBUTION
EXPECTATIONS?
Put a man on the moon!
Investment Portfolio
Send a man
to the moon!
Get him
back!
Objective
Challenge
Solution
Deliverable
Get him of
the ground!
Don’t burn
him!
Get him from
the moon!
Land safely
on the moon.
Land safely
on earth!
Send device
Moon land/leave
device
Return device Heat
protection Landing device
Presentation Exercise
How much does each node
contribute to the node (linked)
above? Sum of each node = 100

9. THE MAIN IDEA OF “RETURN ON STRATEGY” IS TO DEFINE
THE STRATEGIC CONTRIBUTION OF THE PORTFOLIO
Solution
(ValueMiner)
Contribution/
SEK
Portfolio projects Investment Contributions
Send device 5% 150,000 SEK 7,500
Moon land/leave
device
10% 320,000 SEK 32,000
Return device 5% 280,000 SEK 14,000
Heat protector 65% 130,000 SEK 84,500
Landing Device 15% 160,000 SEK 24,000
TOTAL 15,6%
(max 100%)
1,040,000 SEK 162,500
Diagram 1: Return on Strategy dashboard
Definition: Contribution – a dimensionless metric defining the contribution to the
strategic objective
Example

10. • How to optimize “Return on
Strategy” (contribution) of the Project
Portfolio?
• Which are the key investments
scenarios?
• Which investment will we fund?
• Management coaching – together
coming to insights of how the
portfolio can be optimized for RoS.
• Setting up KPI:s to ensure measure
Return of Strategy effects.
Tracking value creation of key
scenario.
Key questions Approach
THE MAIN TASK IS TO OPTIMIZE THE PROJECT PORTFOLIO
FROM A RETURN ON STRATEGY PERSPECTIVE

11. AGENDA
¢ Introduction to The Goodwind, Pro4U and ValueMiner
¢ Introduction to “Return on Strategy”
¢ Presentation of proposed Pilot
- Portfolio Optimization (Return on Strategy)
¢ Next step

12. THE PURPOSE OF THE PORTFOLIO OPTIMIZATION (ROS)
PILOT IS TO TEST THE PROTOTYPE AND GAIN FEEDBACK
¢ The Portfolio Optimization (Return on Strategy) pilot will
include three workshop (2-3 hours) with relevant
stakeholder in the organization
¢ We need access to current project portfolio and
investment plans to identify and calculate current RoS
index
¢ Each workshop will have a coaching approach – with
our facilitation we will gain insights together!
¢ The final report will show the current situation, gathered
insights, and recommendations to improve Return of
Strategy of project portfolio
¢ Free of charge (pilot) – first two client cases only!
¢ Our goal is to quality assure the concept, and gain a
reference.
Approach
Price

13. PILOT PLAN
Time
Start-up meeting
- Identify key stakeholders
- Book workshop meetings
- Identify documentation
- Set expectations
Final Report
- Analysis of current
situation
- Insights
- Recommendations
- Evaluation of
expectations
2 – 3 weeks
Workshop 1
- Introduction to RoS
and ValueMiner
- Mapping Objectives –>
Solutions
Workshop 2
- Mapping portfolio to
ValueMiner Solutions
- Understanding
strategic contribution
- Insights
Workshop 3
- Investment scenarios
- Benefit & Concerns
- Identify KPIs

14. AGENDA
¢ Introduction to The Goodwind, Pro4U and ValueMiner Company and
ValueMiner
¢ Introduction to “Return on Strategy”
¢ Presentation of proposed Pilot
- Portfolio Optimization (Return on Strategy)
¢ Next step

15. NEXT STEP
¢ Book an information meeting with The Goodwind Company to learn
more about Return on Strategy and how this can be used in your
organization.
The Goodwind Company
Contact: Hans Gillior
Email: hans@thegoodwindcompany.se
Phone: 0768 643778