Managing Portfolios

This chapter describes how a portfolio manager can use the Portfolio Management Process (PMP) methodology in Siebel Business Applications to manage accounts and complex relationships with customers and partners. It includes the following topics:

About the Portfolio Management Process

PMP is an account-based, structured methodology for sales professionals who manage a portfolio of accounts, and who must be responsible for, penetrate, retain, and grow those accounts. A portfolio contains a set of accounts organized by industry application, geographic location, and so on. Typically, a portfolio contains strategically important accounts that represent high-potential business for the sales organization.

PMP is designed to help portfolio managers perform the following activities:

Analyze accounts in their portfolio to reveal the accounts with highest revenue potential.
Engage the high-potential accounts in their portfolio.
Direct and manage resources to close as much business as possible.
Manage complex relationships with customers and partners.

PMP separates a group of accounts into four segments. The following table shows these segmentation groups.

Table Segmentation Groups in Portfolio Management Process

Group	Comments
A	Accounts that offer significant sales potential and deserve significant sales effort.
B	Accounts that make a significant current revenue contribution and are meeting targets.
C	Accounts that are valued, but do not make a significant contribution and offer limited future potential.
D	Accounts that have little or no revenue potential today. Insufficient data exists to accurately assess potential.

PMP plots the accounts in each group on a segmentation map. Each quadrant corresponds to an A, B, or C segment. PMP plots the D segment separately.

The PMP methodology is integrated with Siebel Business Applications. The PMP methodology integrated in Siebel Business Applications is licensed from, and is the intellectual property of, The TAS Group.

Scenario for Managing a Portfolio

This topic gives one example of how portfolio management might be used. You might use portfolio management differently, depending on your business model.

A portfolio manager has ten accounts and must analyze the accounts, and decide how best to focus the resources.

The portfolio manager logs in to Siebel Sales and navigates to the Portfolio Management Process view. The manager creates a new portfolio plan. A portfolio plan is the means by which portfolio managers capture their intentions about how to drive revenue from a portfolio.

The manager adds ten accounts to the plan, and then performs the following tasks to segment the accounts:

Assesses current revenue. The portfolio manager enters the period for which she wants to assess the revenue for the account. The revenue for this period appears in the Siebel application, separated into closed and committed revenue.
The portfolio manager then selects a current revenue breakpoint. This breakpoint determines which accounts are considered to be more significant from a revenue point of view. This breakpoint also determines which accounts appear in the first and second halves of the segmentation map.
Assesses future potential. For each account, the portfolio manager enters a score against a set of criteria. The Siebel application then uses the scores that portfolio manager enters to calculate a future potential score for each account.
The portfolio manager then selects a future potential breakpoint. This breakpoint determines which accounts are considered to be more significant from a future potential point of view. This breakpoint also determines which accounts appear in the starting and ending halves of the segmentation map.

For each account, the Siebel application takes the current revenue value and the future potential score and plots the account on the portfolio segmentation map. The breakpoints segment the accounts into A, B, C, and D accounts.

Next, the portfolio managers analyze each of the A accounts. They review the business units and service units (BU/SU) for each account to make sure that all of the units are included. They then segment the units. To segment the units, they assign each unit scores to reflect the importance of the unit to the portfolio managers, and to the customers. The Siebel application uses these scores to plot a BU/SU segmentation map.

The portfolio managers then review the BU/SU segmentation map and select the units where they want to identify the potential opportunities. For each selected unit, they analyze the business drivers, related initiatives, and critical success factors.

Next, the portfolio managers review and update more information to complete the A account analysis. They also review and update the equivalent information for the B, C, and D accounts to complete the analysis of the B, C, and D accounts.

The information that the portfolio managers review and update for all the account groups includes:

Current and installed base opportunities
Organizational structure
Marketing plan information
Partner information
Objective strategy and action plan information

The portfolio manager can view the portfolio segmentation map. The manager of the portfolio manager can now review the portfolio plan and approve the plan.

Roadmap for Managing Portfolios

To manage portfolios, perform the following processes and tasks:

Creating a Portfolio Plan

You can create a portfolio plan to group your accounts together.

This task is a step in Roadmap for Managing Portfolios.

To create a portfolio plan

Navigate to the Accounts screen, then the Portfolio Management Process view.

In the portfolio plan list, create a new record, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Portfolio Name	Type a unique name for the portfolio plan.
Status	Select the status of the portfolio plan from the drop-down list.
Period From	Select the start date of the period for which the plan is active.
Period To	Select the end date of the period for which the plan is active.
Completion Date	Select the date by which the portfolio plan is due to be completed.
Next Review Date	Select the date of the next management review between the portfolio manager and the portfolio manager’s manager.
Currency Code	Select the currency to use for revenue amounts for the portfolio plan.
Owner	Select the owner of the portfolio plan.
Portfolio Plan Goal	Type the goals for the portfolio plan.
Critical Success Factor	Type the factors that are important for the success of the portfolio plan.

Drill down on the Portfolio Name field of a portfolio plan record to see more fields.

Some fields are described in the following table.

Field	Comments
Last Revenue Calculation	Displays the date of the most recent revenue calculation.
Revenue Assessment From	Select the start date of the period for which you want to analyze revenue.
Revenue Assessment To	Select the end date of the period for which you want to analyze revenue.
Revenue Benchmark	Select the amount of the total current revenue. This value determines which accounts are considered to be more significant and less significant. It also determines which accounts appear in the first section of the segmentation map and the second section of the segmentation map.
A Account Breakpoint	Select the future potential score. This score determines which accounts are considered to be more significant and less significant. It also determines which accounts appear on the starting half of the segmentation map and the ending half of the segmentation map.

To add accounts to the portfolio plan, perform the following steps:
1. Navigate to the Segmentation view, then the Revenue Assessment view.
2. Create a new record, and select an account in the Account field.
  The other fields are automatically populated.

While you are in a view, click Reports in the toolbar to access the available preconfigured reports for the data in that view. For more information about reports, see Siebel Reports Guide.

Process of Segmenting Accounts

To segment accounts, perform the following tasks:

This process is a step in Roadmap for Managing Portfolios.

Assessing Current Revenues

To assess the current revenue of your accounts, you must review the current closed and committed revenue, then choose a benchmark that determines which accounts are more significant from a revenue perspective.

This task is a step in Process of Segmenting Accounts.

To assess the current revenue of an account

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Enter the period for which you want to analyze the revenue in the Revenue Assessment From and Revenue Assessment To fields.
Navigate to the Segmentation view, then the Revenue Assessment view.

Click Calculate Revenues.

The revenues for each account appear in the Segmentation view.

Some fields are described in the following table.

Field	Comments
Closed Revenue	Displays the aggregate revenue from opportunities with a Sales Stage value of 09 - Closed/Won, for the time period specified in Step 3.
Committed Revenue	Displays the revenue from the opportunities where the Sales Stage value is not 09 - Closed/Won or 09 - Closed/Lost, and where the PMP Revenue Type is set to Installed Base or Current, for the period specified in Step 3.
Total Current Revenue	Displays the sum of the Closed Revenue and Committed Revenue fields.

You can add more accounts to the portfolio. For information about how to add accounts to a portfolio, see Creating a Portfolio Plan.

Select a current revenue value that separates the high-revenue accounts from the low-revenue accounts in the Revenue Benchmark field.

Assessing the Future Potential of Accounts

To assess the future potential of your accounts, you must assign scores for numerous criteria for the account. The future potential score for the account is calculated from the scores for the criteria.

This task is a step in Process of Segmenting Accounts.

To assess the future potential of an account

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the Segmentation view, then the Account Assessment view.
Select the account that you want to assess.

In the Criteria list, use the drop-down lists to assign a value to each of the criteria.

The values are described in the following table.

Value	Description
1	High
0	Low
?	Unknown

The future potential score for the account is automatically calculated and appears in the list of accounts.

Repeat Step 4 and Step 5 for all the other accounts that have future potential you want to assess.
In the Account Breakpoint field, select a score that separates the accounts with a high-future potential score from the accounts with a low-future potential score.

Viewing the Portfolio Segmentation Map

After you assess the current revenue and future potential of your accounts, the Siebel application plots the results on a segmentation map. Use the segmentation map to decide how to allocate your sales resources.

This task is a step in Process of Segmenting Accounts.

To view the segmentation map of a portfolio

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the Segmentation view, then the Map view.

Process of Analyzing the A Accounts

To analyze the A accounts, perform the following tasks:

This process is a step in Roadmap for Managing Portfolios.

Process of Analyzing B, C, and D Accounts

To analyze B, C, and D accounts, perform the following tasks:

This process is a step in Roadmap for Managing Portfolios.

Entering Details of the Account

You must enter details for each of your A, B, C, and D accounts.

This task is a step in Process of Analyzing the A Accounts and Process of Analyzing B, C, and D Accounts.

To enter details of a portfolio account

Navigate to the Accounts screen, then Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the appropriate account planning view.

Complete the necessary fields in the account planning view.

Some fields are described in the following table.

Field	Comments
Account	Displays the name of the account.
Actual Account Type	Select the type of account.
Importance To You Breakpoint	(A Account only) Displays the value that distinguishes the accounts on the starting side of the segmentation map and the ending side of the segmentation map.
Importance To Customer Breakpoint	(A Account only) Displays the value that distinguishes the accounts in the first section of the segmentation map and the second section of the segmentation map.
Account Team	Displays the team responsible for the account.

Assessing Business Units and Service Units

To assess the business units and service units of an account, you must assign a value that indicates the value of the unit to you and to the customer. After you assess the units, you can view a BU/SU segmentation map. You can use the segmentation map to identify the units that you want to include in your analysis. To include a business or service unit on the map, select the Pursue field for the unit.

This task is a step in Process of Analyzing the A Accounts.

To assess the business units and service units of an account

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the A Account Planning view, then the BU/SU Segmentation view.
Select Assessment from the drop-down list at the start of the BU/SU Segmentation view.
The BU/SU Segmentation view displays the business and service units for the account.

Complete the necessary fields in the BU/SU Segmentation view.

Some fields are described in the following table.

Field	Comments
Business/Service Unit	Select a subaccount of the selected account. Alternatively, to create a new business unit or service unit, type the name of the unit.
Unit Type	Select whether the unit is a business unit or a service unit.
Importance To You	Select the value that indicates the importance of the unit to you.
Importance To Customer	Select the value that indicates the importance of the unit to the customer.
Pursue?	Select this option if you want to include the business unit or service unit in your analysis. If you select this option, then the unit is included in the Selected Unit Analysis view. For more information about how to analyze units, see Analyzing Selected Units.

Viewing the Segmentation Map of Business Units and Service Units

Complete the following procedure to view the segmentation map of business units and service units.

To view the segmentation map of business units and service units

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the A Account Planning view, then the BU/SU Segmentation view.
Select Map from the drop-down list at the start of the BU/SU Segmentation view.
The BU/SU Segmentation view displays the BU/SU segmentation map for the account. A diamond shape on the map represents a business unit. A square shape represents a service unit.

Analyzing Selected Units

After you select the business units and service units that you want to work with, you must analyze these units, and add the business driver, initiative, and critical success factor information.

This task is a step in Process of Analyzing the A Accounts.

To analyze selected business units and service units

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the A Account Planning view, then the Selected Unit Analysis view.
You can review the fields in the Selected Unit Analysis view. For more information about the fields, see Assessing Business Units and Service Units.
To add information about the business drivers for the BU/SU, create a new record in the Drivers list, and type the driver information in the Driver field.

To add information about the business initiatives for a driver, select the driver, create a new record in the Business Initiatives list, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Business Initiatives	Type the business initiative associated with the business unit or service unit.
Critical Success Factor	Type the critical success factor associated with the business initiative.

Reviewing Opportunities

You can review the opportunities associated with your accounts, and new opportunities if required.

This task is a step in Process of Analyzing the A Accounts and Process of Analyzing B, C, and D Accounts.

To review opportunities for selected units

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the appropriate account planning view, then the Opportunities view.
The current opportunities for the selected units appear.
To add an opportunity, create a new record, and complete the necessary fields.
For information about the fields, see Opportunities (End User).

Reviewing Organizational Analysis

You can review the contacts associated with an account or unit. You can add contacts, and you can create an organization chart to reflect the structure of contacts in an account or unit.

This task is a step in Process of Analyzing the A Accounts and Process of Analyzing B, C, and D Accounts.

To review organizational analysis

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the appropriate account planning view, then the Organizational Analysis view.
Select Contacts from the drop-down list at the start of the Organizational Analysis view.
The current contacts for the selected accounts or units appear.

Add a contact, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Decision Orientation	Select the orientation of the contact when the contact makes a decision.
Adaptability to Change	Select the value that best describes how receptive the contact is to change.
Coverage	Select the value that best describes how much communication you have had with the contact.
Your Status	Select the value that best describes your relationship with the contact.
Level of Influence	Select the value that best describes the level of influence that the contact has within the organization.
Business Agenda	Type your understanding of the business agenda of the contact.
Personal Agenda	Type your understanding of the personal agenda of the contact.
Relationship Strategy	Select the strategy to follow for the contact.

To view or draw an organization chart of the business unit or service unit, select Organization Chart from the drop-down list at the start of the Organizational Analysis view.
For more information about how to create an organization analysis, see Creating an Organization Analysis.

Reviewing Marketing Events

You can review and update the marketing events associated with an account or unit. You can view the marketing events for a particular account or unit, or you can view marketing events for all units.

This task is a step in Process of Analyzing the A Accounts and Process of Analyzing B, C, and D Accounts.

To review marketing events for selected accounts or units

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the appropriate account planning view, then the Marketing Events view.
The current marketing events for the selected accounts or units appear.

To add a marketing event, create a new record, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Created Date	Displays the date on which you created the marketing event record. The date distinguishes the marketing event from other marketing events.
Event	Select the type of event.
Target	Type information about the target audience.
Expected Results	Type information about the expected results.

Viewing Marketing Events for a Portfolio Plan

Complete the following procedure to view marketing events for a portfolio plan.

To view marketing events for a portfolio plan

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the All Marketing Events view.
All marketing events that are associated with accounts in the portfolio plan appear. For information about the fields in this screen, see Reviewing Partners.

Reviewing Partners

You can review and update the partners associated with an account or unit. You can view the partners for a particular account or unit, or you can view partners for all units.

This task is a step in Process of Analyzing the A Accounts and Process of Analyzing B, C, and D Accounts.

To review partners for selected units

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the appropriate account planning view, then the Partners view.
The current partners for the selected units appear.

To add a partner, create a new record, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Partner	Select a partner. Only accounts that have the Partner field selected are available for selection.
Partner Type	Select the partner type.
Relationship with Partner	Select the value that best describes your relationship with the partner.
Partner Relationship with Account	Select the value that best describes the relationship of the partner to the customer.
Partner Alignment with Competitors	Select the value that best describes the relationship of the partner with your competitors.
Competitors	Select your competitors for the customer account.
Relationship Owner	Displays the owner of the customer account.

Viewing Partners for a Portfolio Plan

Complete the following procedure to view partners for a portfolio plan.

To view partners for a portfolio plan

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the All Partners view.
All partners that are associated with accounts in the portfolio plan appear. For information about the fields in this screen, see Reviewing Partners.

Reviewing Objectives and Action Plans

You can review the objective strategy and actions (OSA) associated with an account. You can add objective strategy information and action plans to the account.

This task is a step in Process of Analyzing the A Accounts and Process of Analyzing B, C, and D Accounts.

To review objective strategy and action plans

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the appropriate account planning view, and select the account on which you want to work.
Navigate to the OSA view.
The current objective strategy and action plans for the selected account appear.

To add objective strategy information, use the fields at the start of the OSA view.

Some fields are described in the following table.

Field	Comments
Unit or Resource	Type the unit or resource to which the objective applies. For example, the objective might be for business units, service units, opportunities, offerings, or groups of units. Alternatively, the objective might be for resources such as marketing, customer satisfaction, or partners.
Objective	Type the objective of the action plan.
Strategy	Type information about how to achieve the objective.

To add an action plan, create a new record, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Action	Type details of the action.
Planned Outcome	Type details of the expected outcome of the action.
Due	Select a date by which the action plan is due to be completed.
Status	Select the status of the action plan.
Owner	Select the owner of the action plan from the list of employees.
Activity Type	Select the type of activity which is planned.
Start	Select the date when the action plan starts.
Strategy Component	Select the strategy element of which the action plan is a part.
Resources	Type details of the resources required to implement the action plan.

Performing a Manager Review of a Portfolio Plan

When portfolio managers complete a portfolio plan, they can then request their manager to review and approve the plan.

Note: After you perform a manager review, you might want to update the Next Review Date field for the portfolio plan.

This task is a step in Roadmap for Managing Portfolios.

To perform a manager review of a portfolio plan

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the Manager’s Review view.

To add a review record, create a new record, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Review Date	Select a date on which the review occurs.
Reviewer	Select the contact who performs the review.
Status	Select the status for the portfolio plan. For example, to approve a portfolio plan, select Approved from the Status drop-down list.

Adding Solutions to Portfolio Plans

You can associate solutions with your portfolio plans, and specify whether or not to include the solution in the segmentation map.

This task is a step in Roadmap for Managing Portfolios.

To add a solution to a portfolio plan

Navigate to the Accounts screen, then the Portfolio Management Process view.
Drill down on the Portfolio Name field of the portfolio plan record.
Navigate to the Solutions view.

To add a solution, create a new record, and complete the necessary fields.

Some fields are described in the following table.

Field	Comments
Solution	Select the solution to associate with the portfolio plan.
Show in Report	Select this option to include this solution in the segmentation map.