Useful Charts and Figures

1. Useful Charts and Figures

2. Where are we investing IT money? • What value is it bringing to the business? • How do I communicate this value to my senior management and other stakeholders? • What channels, marketing efforts do we have underway and what is the ROI of those efforts? • What are the best marketing channels, efforts to utilize? Information Technology Marketing • Enterprise • What we’re trying • All investment types • Total company Text • What does our R&D/Innovation pipeline look like? • What is our mix of disruptive vs. incremental innovation? • Are things progressing quickly enough? • What is the viability of R&D/Innovation efforts? • What opportunities does my sales force have before them? • Are the opportunities available sufficient in value? • Are all the people on my sales team bringing enough value? R&D/Innovation Salesforce Text

3. Enterprisewide Optimization • Reprioritize funded and unfunded investments across all units • Drive company-wide strategic priorities • Metric impacts cross multiple units • Segment Optimization • Trade-off of lower performing funded investments to new opportunities • Focus on segment priorities and metrics Unit Internal Optimization Prioritization of funded investments

4. Risk-Payback Period Return-ROI

5. Galvanize • Build business case for CPM effort • Educate and get organizational buy-in • Senior sponsorship • Analyze • How are we doing with regard to CPM? • What are our challenges? • What are we good at? • Standardize • Standardize financial, strategic and risk evaluation methods • Standardize models and refine • Optimize • Leverage data to make better decisions • Integrate with tracking systems to improve future projections • Utilize appropriate frameworks

6. Consciously Competent Consciously Incompetent Unconsciously Incompetent Nirvana Evolved Unconsciously Competent Organizational Behavior Unevolved Unevolved Evolved Process / Discipline

7. Evolved Organizational Behavior Unevolved Unevolved Evolved Process / Discipline

8. Area of Business IO Capabilities Line of Business Optimization • Prioritization of funded investments within lines of business (LOB) • Inventory of unfunded initiatives • Determination of which investments are flexible should investment cuts be required Business Unit Investment Review Team (IRT) Optimization • Optimize across unit to focus on business unit (BU) priorities and metrics • Maintain inventory of unfunded investments across the entire unit • Determine which investments unit-wide which are flexible if cuts are required Enterprise Optimization • Ensure appropriate mix (short vs. long-term, risky vs. non-risky) • Fund “transformational” initiatives • Drive enterprise strategic priorities • Predictions of future opportunities and issues

9. Real Options Analysis High Stage-Gate Decisioning High Prediction Markets Complexity of Investment and/or Variability/Uncertainty of Returns Sensitivity Analysis/Monte Carlo Simulation Complexity of Evaluation Framework or Metric NPV/IRR ROI/Payback Period Low Low Small Large Upfront Investment Required

11. Good Data Information Knowledge Optimized Decisions • Distributed knowledge improves performance. • Knowledge is key in driving improved decisioning. • Again, knowledge must be disseminated to be useful • Knowledge lives on in an organization even after people leave • Information often remains resident with a small segment of people. • No mechanism is in place to efficiently share this information. • Information lets people focus on more thoughtful analysis resulting in greater satisfaction. and ultimately this can drive • Companies have plenty of data. • They need to determine whether this is good data. • If it is good data, tap into it. • If not, create mechanisms to capture good data. which can be synthesized into can become

12. Tech Finance Evaluation Framework Investment Review Team - IRT Low • Execution Risk • Milestones being met? • Other external risk factors? Business Initiative Owner-BU Initiative Owner-Tech • Agenda • Discuss project milestones and CBA expectations. • Remediate or remove potential underperformance. • Find better bets. High Low • CBA Risk • Benefits achievable? • Costs contained? • Continue • Recommit funding and personnel resources. • Reward consistent solid performance. • Frequency of project milestone checkpoints may decrease. • Cancel • Free personnel and money for new ideas • Solicit ideas from other initiative owners • Document reasons for project cancellation for future • Admonish poor project delivery (BU, Tech, and Finance) • Contingent • Recommit funding and personnel resources. • Reward consistent solid performance. • Frequency of project milestone checkpoints may decrease.

13. GO GO GO GO KILL KILL KILL KILL Project funding and resources requested Cost Benefit Analysis (CBA) Review Stage Gate 1 Stage Gate 2 Stage Gate 3 Project Completed

14. Well-defined Criteria • Effective Process • Funnel–Not tunnel • Transparent Mgmt Buy-in Empowered Review Team

15. (1) Investment projections fed into CPM system. Driver-based models (DBMs) Source for investment projections CPM central system composed of database and reporting Data repositories Where tracked results reside (2) Tracking results feed CPM, allowing comparison with projections. (3) Tracking performance informs future projections.