Dynamic resource allocation
- 1. Dynamic Resource Allocation: Theory into Practice BBRT 2006 Annual Conference Jim Robertson Director, Corporate Planning & Performance Management April 28,2006 © 2006 James A. Robertson, Jr.
- 2. Agenda • VeriSign Introduction • Executing Strategy: Where the Rubber Meets the Road • Overview of Initiative Management • Integration with Hyperion Planning • Summary
- 3. VeriSign’s Mission Enable and Protect All Forms of Interactions on Voice and Data Networks
- 4. The VeriSign Strategy Deliver Intelligent Infrastructure Services that are Indispensable to Our Customers enabling them to benefit from Next Generation Communications, Commerce and Content Communications Commerce Content Intelligent Infrastructure Services Directory Connectivity Security Mediation
- 5. VeriSign’s Intelligent Infrastructure Portfolio Internet Services Group Communications Services Naming & Directory SS7 / IP Connectivity RFID Intelligent Database Real-Time Web Billing and Payments Authentication Network Mediation Managed Security Mobile Content
- 6. Agenda • VeriSign Introduction • Executing Strategy: Where the Rubber Meets the Road • Overview of Initiative Management • Integration with Hyperion Planning • Summary
- 7. Strategy Focused Organization 2. TRANSLATE STRATEGY 1. MOBILIZE CHANGE THROUGH TO OPERATIONAL TERMS EXECUTIVE LEADERSHIP • Create a corporate scorecard • Create a climate for change Strategy Map • Create the Leadership Team Measures • Create the vision and strategy Targets • Create team accountability Initiatives • Change the culture 3. ALIGN THE 5. GOVERN TO MAKE ORGANIZATION VERISIGN STRATEGY A CONTINUAL TO THE STRATEGY PROCESS PERFORMANCE • Create business/shared (VSS) • Link budgeting and planning to services unit scorecards MGMT strategy • Create sub-business/shared • Conduct Strategy Review Meetings services unit scorecards • Actively manage initiative portfolios 4. MOTIVATE TO MAKE STRATEGY EVERYONE’S JOB • Communicate the strategy • Align HR Programs to strategy Source: Balanced Scorecard Collaborative
- 8. 2 1 Govern to Make Strategy a Continual Process 3 4 5 + Linkages to strategy: – Budgets STRATEGY – Rolling Forecasts update the test the strategy hypotheses – Operational plans Strategic Learning Loop BALANCED SCORECARD + Strategy Review Meetings BUDGET funding Management Control Loop reporting + Office of Strategic PERFORMANCE Management (OSM) Input Initiatives & Output (Resources) Programs (Results) + Initiative management Source: Balanced Scorecard Collaborative
- 9. Using VPM to Manage Strategy Execution Longer Term (3-5 year) View Shorter Term (Annual) View Vision Strategy and Map Resource Mission Objectives Measures Targets Initiatives Milestones Accountable Budget Alloc Financial • Grow high- • % revenue • ‘04 xx% F1 margin from high- To provide top-notch healthcare to our • ‘05 xx% margin Be the community hospital of choice service F2 services • ‘06 xx% Customer • Provide • Customer • Develop • Survey drafted • Mkg. • $ xxxx • ‘04 xx% personalized satisfaction organization- by 6/04 Team C1 • community care survey rating ‘05 xx% wide survey • ‘06 xx% • Keep patients • Service level • Electronic • Complete by • Dept. Chairs • $ xxxx Internal P1 informed spot check • ‘04 xx% notes project 2004 P2 rating • ‘05 xx% • All patients • ‘06 xx% logged in Learning • Provide • % new • ‘04 xx% • Learning • Deadline • HR • $ xxxx technology technology • ‘05 xx% assessment met Committee & resources used by staff project L4 • ‘06 xx% Strategy “Leadership” Tactics “Management” Source: Balanced Scorecard Collaborative
- 10. Initiatives are Where the Rubber Meets the Road Strategic Objective Each objective is measured to track performance and facilitate strategic discussion. Measu re Each measure receives a target to determine the level of performance required to succeed. Target Each Objective is supported by initiatives (activities, projects, and resources) to ensure that the organization is capable of delivering on the targets that underpin the objective. Initiatives Source: Balanced Scorecard Collaborative
- 11. Initiatives are the Basis for Closing Performance Gaps Increase Customer Satisfaction Objectives articulate the components of our strategy MEASURE / TARGET Measure 90% Customer Satisfaction Survey Rating gap 45% INITIATIVE $M Target Implement automated case 90% favorable management system and overall train every rep Target Actual Measures track our progress toward achieving and Initiatives help close the gap between communicating the intent of the objective our current and desired performance Source: Balanced Scorecard Collaborative
- 12. Internal People & Financial Customer Knowledge Perspective resources Partnering Objectives performance management development development Source: Balanced Scorecard Collaborative Price performance Integrate and align People and change Individual and team Sales and customer Focused technology Perfect manufacturing Economic value added Strategic competencies Pick the winners globally Customer sensitive culture Create new market demand sev t a ti n t nerr u C i i i ng se der t ne m r uc o P i e r Be the lowest cost producer y ge art s s ekr a mgn g e m t t i r E sr e nn w e h hi wr e n r a P i t t t e nac rr uh dna L & Wdna ces se R i not ac fi t ne d s dee n y il a u Q i i i t m e es uac t oo r o c o p y il a u Q il r f r t n ot a u m o e R i l r f se tili ca / not az l a cr e mm c VS i f i i i o o p gn kcart t n a p m c r e m t s u C r i i l o o s p hsr e n r a p PV ml e d S i t / a i objectives serving no 2 initiatives n a hc e u av n t ne m c na hne T i l i e I not a ne ml p m P OCS i t e i mA b CS B e dacsac po eve D / l no s v e a c nu m m C i i t i o se tili ca not a m o er a s A i f i r f i t ne m gl a y ge art s T ni t I v o p m ssec o p kr o w r par c S r i r e m r go pt ne m v o p m d e Y a r e r i l i e dar gpu se tili ca F i r e C. g mn ser AN 20009 OS f i I s mt sys t r e px E e ml p mt ne m o eve d s d a w R e i/ pl r e s not ac nu mm cl a bo G i i o l sli ks c ge art s gn n ar T l i t i i Managing Initiatives Can be a Demanding Manual Process No initiatives 9 initiatives for this objective for 1 objective
- 13. Planning & Budgeting Process Overview
- 14. Process Roadmap - As Is
- 15. Process Roadmap: The Missing Link
- 16. Agenda • VeriSign Introduction • Executing Strategy: Where the Rubber Meets the Road • Overview of Initiative Management • Integration with Hyperion Planning • Summary
- 17. Imperative to Plan and Manage Initiatives in a Disciplined Approach ▪ VeriSign’s business model is becoming increasingly complex. ▪ Acquisitions, geography, customer needs ▪ Clear and concise linkages between strategy, financial plans, and daily operations is key to executing a growth strategy at VeriSign. ▪ With increased complexity, the more important it becomes to use integrated, automated processes that let allows initiatives projects to be identified, evaluated, and ultimately managed across BU’s and geography. ▪ Lack of process is a barrier to collaboration across BU’s, integration of new acquisitions, and reorganizations – Manual/desktop solutions currently being used – No enterprise solution ▪ Move towards real-time planning – Need for ongoing evaluation and reallocation of resources to respond to the competitive environment ▪ One VeriSign. ▪ Standard approach used company-wide, worldwide to evaluate requests for, allocate, and manage resources ▪ Standard Tool – Integrates with, not replaces, current Hyperion & Oracle standard architecture
- 18. Integrated Process Where Strategy Explicitly Drives Investments and Performance is Compared to the Strategy Corporate Corporate Strategy/Operating Objectives Strategy Key Goals & Priorities + Sets the Purpose/Mission Portfolio Management + Performance + Targets to Drive Operating Plan monitoring actuals: + Evaluation Criteria plan provides feedback to planning process VeriSign Performance Initiative Mgmt Management + One source for all measures which + Evaluate and Select Investments indicates if we are executing the plan: +Financial + Operating Plan +Non-Financial + Financial Plan + Manage Initiatives, Projects, Resources
- 19. Comprehensive Initiative Management From Demand to Completion Corporat Corporate Strategy/Operating Objectives e Strategy Key Goals & Priorities Initiative Management Portfolio Demand Management Program Management VPM Mgmt Stratex Project Management Non Project Specific Resource Management Resources + Provides direct link between strategy & projects + Standard financial baseline, track spending and + Executive visibility/dashboard to all portfolios, resources programs and projects + Consolidation capability of all programs and projects + Single portfolio/program and project repository + Captures investment regardless of GAAP classification for VeriSign expense/capital + Standard and consistent processes, + Standard of project performance and linkages to methodologies and flowcharts at the macro strategy across the company for resource allocation levels
- 20. Initiative Management Initiative Management Proposal Project • Capture proposal details • Initiate project • Business objectives • Assign Business and Technical Project Managers • Cost / Resource estimates • Assign resources • Value / Risk scores • Collect and track project metrics • Financial Benefits • Project Satisfaction • PRB Review • Performance Measurement • GOV Review • Project Approval • Financial Bus Case (if needed)
- 21. Demand and Portfolio Management Overview Demand Management Approved New Product Approved Existing Approved Infrsastructure Product Ideas Ideas Ideas Idea Prioritize & Approve 1st Gate Approval Business Ops Council Approved Proposals Proposal Review High Level Approve Refine Estimates/ Business Business Case Submit for Case Planning Architecture & Standards Board Manage Portfolio Costs, Budgets, Benefits Develop Portfolio Portfolio Portfolio Options Scenarios Management Resource Supply vs. Demand Steering Approved Committee Projects Approval Value vs. Risk Risk Value
- 22. Demand/Portfolio Management Demand/Portfolio Management Enter Proposal for New Project Capture Estimated Cost Capture Estimated Resources Drive the Evaluation Process Provide Visibility through a Real Time Dashboard Out-of-the box templates to capture project proposals, value and risk rating, processes, business case, ROI and more. Templates can be configured to capture information unique to customers.
- 23. Demand/Portfolio Management Enter Proposal for New Project Capture Estimated Cost Capture Estimated Resources Drive the Evaluation Process Provide Visibility through a Real Time Dashboard Configurable scoring criteria to evaluate project proposal values and risk. Adjustable weights for each scoring criteria.
- 24. Demand/Portfolio Management Enter Proposal for New Project Capture Estimated Cost Capture Estimated Resources Out of the box Proposal Evaluation Process Provide Visibility through a Real Time Dashboard Workflow engine enforces the reviews, approvals and notification process. Out of the box best practice processes for proposal evaluation, can be used as-is or configured to unique needs.
- 25. Demand Management: Portfolio Programs and Projects
- 26. Portfolio Management: Scenario Analysis
- 27. Portfolio Management- Identifying Projects to Fund based on Risk/Reward Profile
- 28. Budget summary views by Portfolio Scenario
- 29. Agenda • VeriSign Introduction • Executing Strategy: Where the Rubber Meets the Road • Overview of Initiative Management • Integration with Hyperion Planning • Summary
- 30. Integration with Hyperion Planning
- 31. Initiatives will be Planned/Forecasted Similar to Capital Projects + Dedicated Cube + Approved in Mercury + Autoload into Planning as new projects + Current Projects which are Modified and Approved in Mercury will Load into Planning with Actuals + Goal is to have RT selection of projects in Mercury feeding RT forecast
- 32. Agenda • VeriSign Introduction • Executing Strategy: Where the Rubber Meets the Road • Overview of Initiative Management • Integration with Hyperion Planning • Summary
- 33. The Governance Process IDEA Unified Demand Management Proposal Idea becomes a Proposal with: • Description Proposal Estimated: • Business Objective • Staffing Profile • Financial Benefit • Budget Profile - Cost Governance Process Not approved proposal: Comparative Analysis • Added to Laundry List Prioritization • Can be revised and Balancing with capacity resubmitted Fit with Strategy Decisions Approved Proposal: Product Life Cycle Process • Becomes a Project Lead matrix team • Gets staffed and budgeted Execute Asset Status Project Launch Executed Project: Becomes an Asset
- 34. Governance: The Key to Real Time Planning Mercury Governance Suite
- 35. Strategy Focused Organization 2. TRANSLATE STRATEGY 1. MOBILIZE CHANGE THROUGH TO OPERATIONAL TERMS EXECUTIVE LEADERSHIP • Create a corporate scorecard • Create a climate for change Strategy Map • Create the Leadership Team Measures • Create the vision and strategy Targets • Create team accountability Initiatives • Change the culture 3. ALIGN THE 5. GOVERN TO MAKE ORGANIZATION VERISIGN STRATEGY A CONTINUAL TO THE STRATEGY PROCESS PERFORMANCE • Create business/shared (VSS) • Link budgeting and planning to services unit scorecards MGMT strategy • Create sub-business/shared • Conduct Strategy Review Meetings services unit scorecards • Actively manage initiative portfolios 4. MOTIVATE TO MAKE STRATEGY EVERYONE’S JOB • Communicate the strategy • Align HR Programs to strategy Source: Balanced Scorecard Collaborative
Editor's Notes
- #12: Purpose of Initiatives Objectives, measures, targets, and initiatives all work together to achieve the strategic destination: Objectives articulate the components of the strategy. Measures and targets track progress toward achieving and communicating the intent of the objective against expected performance levels. Initiatives help close the gap between current and desired performance. Initiatives are generally organizationally sponsored projects that address some business performance gap or challenge. Module 8: Inventory, Map, and Prioritize Initiatives
- #13: Identification, Prioritization, and Alignment of Initiatives The real benefit from the Initiative Mapping process come from allocating resources to initiatives that most directly affect its ability to achieve the strategy. Without prioritization, all initiatives continue as usual, with no alignment to strategy. The task here is to create a “screen” to be able to determine strategic initiatives from nonstrategic initiatives.