How to optimize your strategy,

project portfolio and

evaluation process

by Jed Simms
Totally Optimized Projects™

© Jed Simms, Totally Optimized Projects Pty Ltd, 2011

 The evaluation process

Build the Review Prioritize

business Evaluate (and
case Validate approve)

1 Why are we considering this?

2 What is the value proposition?
3 What is required to to get this value?
4 How likely are we to get this value?
5 Who is taking accountability for delivering this value?
6 How will the delivery of this value be controlled?
© Jed Simms, Totally Optimized Projects Pty Ltd, 2011
 The prioritization process
VALUE RISK STRATEGY CAPABILITY CAPACITY PRIORITY

Can we deliver this Does it fit in with Is this something

What’s the Will we get this Does it advance
type of project our existing we should do
project’s value? value? our strategy?
successfully? portfolio? now?

Project perspective

Corporate perspective

Portfolio perspective

© Jed Simms, Totally Optimized Projects Pty Ltd, 2011

 The strategic alignment process
EXAMPLE PROJECT STRATEGIC CONTRIBUTION FRAMEWORK FOR AAL CORPORATION
Business 1 2 3 4 5
Imperatives: Financial Market Awareness Product/Inventory Organisational Customer service
Management Management Alignment
Description Recapture Increase awareness of Reduce time-to-market, Align the organisation, its Increase responsiveness to
profitability and and response to changes inventory levels and under- staff, behaviours and customer/market needs and
reduce costs of in any area of the market performing products performance to current and expectations
doing business emerging needs

Business Strategy
5
Reduces SGA 5 Enables AAL to Imperative5 Reduces inventory costs W S Clarifies and supports Justification
5 5 Increases profitable sales
essential costs respond quickly and organisational
Financial Managementappropriately
5 Reduces
Reduces to debt/working cap and
5 Increases profitability
sales of individual
5 3 accountabilities,
Reducesroles a/r by 540%
Improves AAL’s supply
responsiveness to market for
changes in the market and responsibilities
debt/working — product Simplifies
sales processes
products/categories 3 1 Automates some profitable manual processes
products/categories
capital levels trends, preference 5 Aligns individual KPIs to
Organizational Alignm’t Increases
shifts, new categories, gov & controls 3 3 accountabilities
Automatically and enforces new controls
killer products business imperatives
Equips staff to perform 2 3 Fully supports a/r staff in roles
Compelling need 4 Simplifies/ 4 Enables AAL to 4 Reduces the number of 4 Improves cross- 4 Improves sales/inventory
streamlines
processes
Total strategic
respond
its customers —
contribution
to changes in score
unprofitable
products/categories
33 organisational process
performance (and
forecasting accuracy

resulting in less buying/stocking/ innovation), increasing 4 Aligns AAL’ s structure, service,

complexity and selection criteria — that 4 Increases AAL-to- service levels and costs to product/ category and/or
customer supply chain customer volumes and
costs impact sales/ reducing costs
profitability throughput velocity profitability
4 Increases AAL’ s process
4 Reduces backorders orientation and speed of
value and/or delay
Financial Mgt Mkt Awareness Org Alignment
response capability
Highly Desirable 3 Reduces number
and/or cost of
3
1 2 3 43 5
Enables AAL to
respond to competitive
1 2 3 43 1
Enables profitable (and
saleable)
2 3 4 53 6
Increases AAL’ s
organisational
7 Total
Increases AAL’ s innovation in its
‘go to market’ strategies
Project A
returns/rejects
and claims
intelligence3to 1
protect/increase market
products/bundles
market
to go to governance and controls 3 3 33 of the
Builds the reputation
2 Equips staff with the 3 Brand
2
Project B
Improves
share3 1 2 2 Increases
2 product 2 3 knowledge and 2 skills to 49
financial visibility Increases AAL’ s penetration of
1 Enables AAL to knowledge inside/ perform their roles 2 customer’s floor/ shelf space
and understand what is outside AAL
management really happening in the 2 Attracts good quality staff
Increases AAL’ s B2C to work for AAL Reduces customer
inside and market 1 1 complaints/problems in dealing
outside of AAL profitability
with AAL
(eg HO)
Improves AAL’ s customer
1 service rating with top 10
customers
© Jed Simms, Totally Optimized Projects Pty Ltd, 2011
 Thank you for your attention

Jed Simms
Jed@totallyoptimizedprojects.com
www.TotallyOptimizedProjects.com

© Jed Simms, Totally Optimized Projects Pty Ltd, 2011