ch00_4800.qxd 3/7/07 1:06 PM Page vii Optimizing Corporate Portfolio Management Aligning Investment Proposals with Organizational Strategy Anand Sanwal John Wiley &Sons, Inc. ch00_4800.qxd 3/7/07 1:06 PM Page ii ch00_4800.qxd 3/7/07 1:06 PM Page i Optimizing Corporate Portfolio Management Aligning Investment Proposals with Organizational Strategy ch00_4800.qxd 3/7/07 1:06 PM Page ii ch00_4800.qxd 3/7/07 1:06 PM Page iii Inside of Book Endorsements “Optimizing Corporate Portfolio Managementis a refreshing treatise on an age-old problem— how to allocate the resources across the firm. It makes a very coherent argument for aligning the allocation decisions across financial, strategic and risk objectives. The reader is guaranteed to be given a fresh look and a broader perspective on how to tackle this very challenging organization. A must read at the top of the organization!!!” David J. Reibstein Professor of Marketing, The Wharton School—University of Pennsylvania “Finally a book that delivers against an ambitious corporate portfolio management prem- ise. A compelling solution backed by an unparalleled framework, pragmatic implementa- tion steps and case studies. A must have for all organizational leaders trying to maximize the value of their corporate investments.” San Retna Chair, Enterprise Portfolio Management Council Principal, TransformAction “Pragmatic and full of real-life examples...a must-read for anyone involved with or prac- ticing portfolio management.” Piyush Sanghani Director, Portfolio Management, Trans Union LLC “This book will be very helpful to any executive who wants to improve their organiza- tion’s resource allocation processes and make smarter investment decisions. Sanwal writes with the perspective of someone who has been ‘in the trenches’ and provides clear guidance on the realities of implementing rigorous processes in the real world.” Don N. Kleinmuntz, PhD Research Professor of Policy and Management, University of Southern California Executive Vice President and CFO, Strata Decision Technology, LLC ch00_4800.qxd 3/7/07 1:06 PM Page iv “Progressive thinking on a staid business problem. A well-thought, useful framework for cor- porate investment managers everywhere—the professed mountain is not insurmountable.” Ronald D. Balzan Vice President - Business Analysis & Treasurer AIG Consumer Finance Group, Inc. “Allocating capital to new projects and opportunities has a greater effect on strategy than perhaps any other process in an organization. And still, it remains one of the least under- stood processes in management. Anand Sanwal’s in-depth examination surfaces insights on how to link capital allocation to strategic planning. His book provides not only a detailed description of the complexities of the problem, but practitioner oriented advice for what to do about it.” Clark Gilbert Former Harvard Business School Professor Co-author of “From Resource Allocation to Strategy” “Anand Sanwal’s new book does a great job of developing and explaining new ap- proaches to portfolio management. I especially value the emphasis on the need for good metrics to close the learning loop on portfolio decisions.” Paul Farris Landmark Communications Professor of Business Administration Darden School, University of Virginia Portfolio Management was one of the breakthroughs of modern finance and its application to the Corporation’s activities shows much promise—however, today it is much more art than science. Anand Sanwal’s book is a significant contribution to turning CPM into a science. Martin Curley Senior Principal Engineer and Global Director IT Innovation and Research Intel Corporation “Optimizing Corporate Portfolio Managementarticulates a discipline and strategy that will sig- nificantly benefit large- and middle-market companies alike. Anand Sanwal avoids simplistic one size fits all approaches which have become commonplace in discussions of portfolio management to deliver keen, no-nonsense insights that will strengthen your organization.” Rajesh Shah Executive Vice President, MS International, Inc. ch00_4800.qxd 3/7/07 1:06 PM Page v “This is a must read for executives, managers, and staff; and beginners as well as seasoned practitioners of portfolio management. Portfolio management is not about IT. It is about the ‘business-of-the-business;’ organizational efficiency, effectiveness, and investment, resource and operational optimization and differentiation. Anand demonstrates a gifted talent to clearly and succinctly articulate why portfolio management is both so difficult and yet so simplis- tic. Read it, understand it, embrace the journey—the challenges, the opportunities, the value, the benefits.” Dennis E. Wells, Information Services Policy and Planning Manager Oregon Department of Human Services “Regardless of a company’s size, it is very critical to have a compass for investment decisions especially in uncertain business environments. With data driven corporate portfolio manage- ment, I am able to lead my company in the right direction in a more effective and efficient way.” Toshi Sakuma CEO, Sakuma International S.A. “Thorough, to the point and extremely pragmatic, Anand Sanwal has provided an excel- lent case and strategy for moving away from currently anemic methods of corporate and strategic planning. He provides a clear framework to help organizations align investments with strategic, financial and risk objectives ultimately enabling them to realize the power of corporate portfolio management.” Guhan Swaminathan Co-Founder and Managing Director Virgo Capital “Corporate portfolio management does not have to be a mystery. And it certainly should become a practical guide to putting limited resources to work on the most strategically ben- eficial work. Anand’s approach to enterprise portfolio management is direct, practical, and focused, and is based on proven practices that I have implemented in organizations of all sizes worldwide.” Ernie Nielsen Managing Director—Enterprise Project Management and Masters’ Professor of Project Management—Marriott School of Business, Brigham Young University “This new book points the way to new methods for transforming your organization through better processes and optimizing portfolio management. Leading edge companies moving be- yond budgeting can use it to learn how continuous planning can lead to higher returns.” Steve Player Program Director Beyond Budgeting Round Table (BBRT), North America ch00_4800.qxd 3/7/07 1:06 PM Page vi ch00_4800.qxd 3/7/07 1:06 PM Page vii Optimizing Corporate Portfolio Management Aligning Investment Proposals with Organizational Strategy Anand Sanwal John Wiley &Sons, Inc.