Strategic Portfolio Management The thing you’ve been missing By continuously aligning work to business outcomes across your organization, you can drive greater business value—and do it faster. Closing the gap between strategy and delivery Business leaders need to plan continuously and adapt quickly to emerging threats and opportunities. This is the promise of digital transformation, but in many cases, those investments aren’t living up to their promise. Today’s enterprises are complex and interconnected. Even organizations that have implemented project portfolio management (PPM) struggle to develop and maintain alignment between strategy, planning, and delivery. This misalignment creates waste, erodes trust, and slows the flow of value through your organization. • Delayed delivery • Wasted spend • Projects that fail to deliver value • Missed opportunities to innovate • Increasing vulnerability to disruption Misalignment has a high cost: 2 By 2025, 70% of digital investments will fail to deliver the expected business outcomes in the absence of a strategic portfolio management approach. – Gartner, 20231 1 https://www.servicenow.com/content/dam/servicenow-assets/public/en-us/doc-type/resource-center/ solution-brief/sb-drive-business-outcomes-spm.pdf Strategic portfolio management aligns the entire organization around customer value Gaining competitive advantage in today’s market means delivering value faster, even in the face of constant change. The way organizations optimize how they plan, align resources, and deliver products matters more than ever. Strategic portfolio management (SPM) is a set of philosophies, capabilities, and processes—supported by integrated technologies—that empowers organizations to drive strategic business outcomes by continually aligning their strategy with their day-to-day work. SPM enables stakeholders to fund what matters most, build a roadmap to guide investments, communicate plans, and see work in the context of strategic initiatives—even across diverse teams, methodologies, and approaches. Strategic portfolio management empowers organizations to drive business outcomes by aligning their strategy with their work, enabling them to plan, deliver, and track value continuously. Strategic Portfolio Management with ServiceNow 1. Strategize Roadmap strategy to maximize outcomes 2. Align Align investments to implement strategy 3. Deliver Deliver work using any methodology TrackInnovate Align to business objectives Track business outcomesDrive digital transformation 4 5 Roadmap strategy to maximize outcomes Focus on the right things to achieve the right results: SPM requires clearly defined but continuously adaptable plans, so you can visualize strategies and targets, know if you 67% of strategic plans fail.2 That’s simply not sustainable for a healthy, growing business. We need a new and managing strategic roadmaps. 2 https://www.inc.com/tanya-prive/why-67-percent-of-strategic-plans-fail.html STRATEGIZE “How do we deliver more value, and what will get us there faster?” Roadmaps are strategy you can see, adjust, and measure planning tool, allowing organizations to plan, priori- tize and track work in the context of business objec- tives. Plans can be adjusted quickly, while seeing the impact on dependencies and related initiatives. They are also powerful communication vehicles, allowing evolving strategic priorities to be understood by all stakeholders quickly and easily. living things: • Connected to every other element of the work, including investment funding, prioritization, governance, and execution • Updated in real-time based on actual delivery and benefits data • Enable you to visualize the impact a change will have across dependencies, milestones, and related initiatives ServiceNow Strategic Planning WorkspaceTM Helps leaders plan strategic initiatives and gain performance visibility to course correct. • Captures strategies and targets to understand if they are meeting or exceeding strategic objectives • Enables all stakeholders to connect work to strategy through cascading plans with flexible planning hierarchies 6 With a 130-year heritage in the financial services industry, Western and Southern supports the financial stability needs of over 5.3 million customers through their 3,800+ associates. Challenge They needed to replace disparate systems to support a maturing portfolio and establish processes for a business aligned portfolios with full financial transparency. Solutions • Implemented SPM to provide the foundation to align IT investments with business needs • Solutions drove revenues and increased Results 90% strategic work delivered on time and on budget to achieve strategic outcomes 90% of demand aligned to business strategic business priorities 32% increase in work dedicated to Grow the Business (GTB), due to greater visibility of IT demand STRATEGIZE ServiceNow handles the full Portfolio lifecycle, from initial ideation to final delivery, which means we make better decisions and execute more —Lisa White, IT Portfolio Analyst, Western & Southern Financial Group 7 8 Align investments to implement strategy Respond quickly and decisively when changes are needed: SPM enables planners and managers to select, prioritize and schedule the right work—on a continuous basis—while aligning teams and staying on strategy. 9.4% of initiative spend is wasted.3 Improving on that takes a across the business. 3 https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/pulse/pmi_pulse_2021.pdf ALIGN “Are we doing the right things to deliver the best outcomes?” Alignment means knowing what the right work is— and prioritizing it. Planners need to be able to continuously evaluate and adjust resource allocation to ensure initiatives are allows you to respond quickly and without disruption when changes are needed. This requires a single demand funnel for all work, regardless of source, and the ability to reprioritize continually to ensure people and financial resources remain committed to work that is delivering the best return. strategic delivery pathways • Include the whole lifecycle (planning, prioritization, execution) with oversight to delivery and outcome measurement. • Visualize how demand is being translated into value for every investment and every delivery area • Quickly identify and eliminate waste by making decisions based on reliable, real-time information ServiceNow Demand Management WorkbenchTM Provides visibility into relative priority and the supply and demand of resources based on prioritized work. • Enables planners to determine what work should be done to achieve the desired business outcomes • Centralizes strategic requests from the business to IT • Automates the steps in the investment decision process 9 Raymond James is a multinational independent investment bank and financial services company. They have over 8,400 financial advisors working in the United States, Canada and internationally and manage over $1.18 trillion in client assets. Challenge They needed to consolidate and streamline IT systems and processes, in order to have better resourcing for global IT projects. Solutions • Raymond James modernized digital workflows to further align IT with top business goals • ServiceNow’s SPM solution became the foundation for an enterprise-wide, strategic portfolio management system • SPM made services and data available through a single, easy-to-use portal Results Improved transparency led to better prioritized portfolios and closer alignment to business goals Faster and better resourcing decisions business priorities ALIGN With ServiceNow, we have so many capabilities we didn’t have before. The net result is we’re not just supporting the business of IT anymore—we’re supporting the business of Raymond James. —Sue Desiderio, Director of Service Enablement, Raymond James 10