Practical Strategy Delivery: Making the link between ambition & delivery

Mike Hosie, Partner at Mentor, shares how good portfolio management ensures the delivery of the collective benefits of a group of business-critical programs.

Video transcript

00:04
companies run programs all the time
00:07
many businesses have got to grips with
00:09
regular functional programs but still
00:12
managed to make a mess of complex
00:13
business critical ones which may have a
00:16
serious and sometimes terminal impact
00:18
these more complex programs make a
00:21
fundamental difference typically
00:23
measured in terms of contribution to
00:24
sales profit or loss or in a company’s
00:27
market capitalization they are
00:29
strategically important they establish
00:32
build or maintain a company’s
00:34
competitive advantage and should realize
00:37
significant corporate benefit a company
00:40
would normally run three or four
00:42
business critical or tier 1 programs and
00:44
rarely more than half a dozen due to
00:46
their complexity and the senior
00:48
executive time and focus that they
00:50
demand because of their importance and
00:53
the relationship and competition for
00:54
skills and resources between them these
00:57
programs must be looked at together in a
00:59
portfolio portfolio management is used
01:02
to ensure delivery of the overall and
01:04
collective benefits of a group of tier 1
01:06
programs
01:07
this requires program definition and
01:09
baselining
01:10
which in turn allows proper resource and
01:13
skill allocation along with
01:15
identification and management of the
01:16
inter dependencies between programs and
01:19
business as usual it ensures the
01:21
business works on the most attractive
01:23
financial and strategic opportunities to
01:25
achieve a set of business critical
01:27
objectives for an executive at board
01:34
level the challenges are typically
01:35
market orientated perhaps increasing
01:38
competition or market pressures that
01:40
require the successful and timely
01:42
introduction of new technologies often
01:45
we will be asked to look at programs
01:47
that have already been established and
01:48
that for whatever reason are failing to
01:50
deliver what is required it’s a dynamic
01:53
situation with competitors looking to
01:55
increase their share of markets or
01:57
deliver things into the market that will
01:59
cause our clients to reevaluate what
02:01
they are doing at a more practical level
02:03
typical challenges almost always include
02:06
a lack of skills or the resources
02:08
required to deliver the complex programs
02:10
that are so vital for the business a lot
02:13
of program
02:14
run by organizations or not day to day
02:16
or month to month by nature they are
02:18
one-offs
02:19
for example introduction of a new
02:22
product or the introduction of a product
02:24
into a new market isn’t necessarily done
02:27
every year when something is not done
02:29
regularly there is often a higher level
02:31
of risk associated with it because the
02:33
knowledge required within an
02:34
organization is simply not available to
02:37
succeed the chief executive or the
02:40
functional director must make sure that
02:42
the organization is aligned behind the
02:45
delivery of the business critical
02:46
objectives they have to draw a detailed
02:49
clear picture for their people so that
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they understand why they are doing what
02:54
they are doing most importantly so that
02:56
there is absolute clarity on what needs
02:59
to be done to deliver they’re part of a
03:00
program a clear vision from the
03:03
leadership team is a must there are
03:06
always ups and downs in any program and
03:08
as a result people need to be motivated
03:11
to succeed and will need to be reassured
03:13
and guided by the program director so
03:16
vision clarity and focus are
03:19
prerequisites to success establishment
03:23
and management of a program portfolio
03:24
will help ensure that these things are
03:27
done well Tier one programs are unusual
03:30
difficult and complex and they can be
03:33
intimidating there will often be a level
03:37
of change required across organizations
03:38
and if the organization hasn’t got a
03:41
culture that readily accepts and is used
03:43
to coping with change then the culture
03:45
needs to be developed and supported to
03:47
allow the necessary change to take place
03:50
communication is key within a portfolio
03:54
there will be constant trade-offs that
03:56
need to be made particularly in a
03:59
dynamic market or program environment as
04:02
one program progresses others may
04:04
struggle the reasons for this need to be
04:07
understood and any associated risks must
04:10
be communicated corrective actions
04:13
required to rebalance or recover a
04:15
program may well impact a number of
04:17
others which again demands good
04:19
communication within and across all
04:21
programs to ensure that the vision
04:24
remains understood that people are clear
04:26
on their
04:27
contribution and their focus is
04:29
maintained