An Introduction to the. Society Program Portfolio Management Process

(1)

An Introduction to the

Society Program

Portfolio Management

Process

(2)

Proprietary and Confidential

Presentation Topics

 What is Society Program Portfolio Management or

SPPM?

 What is the Goal of SPPM?

 Who Oversees SPPM?

 Who Participates in SPPM?

 Why is SPPM Critical to the ACS?

 When does SPPM Occur?

 How is SPPM Conducted?

American Chemical Society August 2014

2

(3)

What is Society Program

Portfolio Management?

 Society Program Portfolio Management or SPPM is a comprehensive and systematic process, conducted

through a partnership between ACS volunteer members of governance and ACS staff, that optimizes the

allocation of resources among the wide ranges of programs, products and services offered to our members and the larger chemistry enterprise.

 These programs, products and services are provided through the Membership & Scientific Advancement and Education Divisions and the Office of Public Affairs.

 The programs within these divisions are called Society Programs.

(4)

What is SPPM?

^(Con’t)

 ACS has a long history of providing these

numerous and diverse programs to its members

and the chemical community; however, no program is guaranteed funding in perpetuity.

 Portfolio Management provides a rigorous, transparent and efficient way of strategically adding new programs, routinely reviewing,

updating and comparing existing programs, and

phasing out programs or rebalancing the allocation of resources as necessary with the portfolio of

Society Programs.

4 American Chemical Society

August 2014

(5)

The Goal of SPPM

To ensure a more optimal allocation

of ACS human and financial

resources among programs that

fulfill the ACS Vision of improving

people’s lives through the

transforming power of chemistry.

(6)

Who Oversees SPPM?

 In 2012, the ACS Board, working with the Society Committee on Budget & Finance (B&F), established an Oversight Group for the development of a

detailed Society Program Portfolio Management process (SPPM).

 Oversight Group Charge: To develop and deliver a comprehensive process that includes multiple

stages for:

 entry into the portfolio;

 on-going review within the portfolio; and

 exit (or sunset) from the portfolio.

August 2014

(7)

Who Oversees SPPM?

 Dozens of ACS volunteers and staff members were involved in the conceptualization, development and testing of the many facets of this process.

 The ACS Board will have ultimate authority over the SPPM process.

 The Budget & Finance Committee and the

Executive Director & CEO will have operational authority within the process itself.

(8)

Who Participates

in SPPM?

 Cognizant Committee Chairs

 Program Staff Liaisons & Program Management

 Society Program Executive Leadership

 Concept Review Group

 Board Chair, B&F Chair, Executive Director & CEO

 Program Review Subcommittee of B&F

 Program Funding Request Subcommittee of B&F

 Budget & Finance Committee

 ACS Board of Directors

August 2014

(9)

Why is SPPM Critical?

 In 2014, more than $43 million will be spent on

Society Programs to support the Society’s mission.

 These programs have been in existence from less than 2 years to over 75 years.

 At the time of their inception, these programs were strategically important to the ACS membership or to the chemical community.

 Today, with our changing membership needs as well as the changing needs of the larger chemical community, the Society needs to ensure that each of these programs remains both relevant and

strategic.

(10)

When Does SPPM Occur?

December Board and B&F Meetings: B&F makes Proposed Budget Recommendations; Board acts

Mid-August/September: Board and B&F Meetings at Fall National Meeting

 B&F Considers PFS’s New Program Recommendations

 ED&CEO presents final JOINT Portfolio Recommendations to B&F

 B&F Provides NPF and Portfolio Recommendations to the Board; Board acts

June (Week 1): ED&CEO presents JOINT Portfolio Recommendations

Apr May Jun Jul Aug Sep Oct Nov Dec Feb Mar

Mid-February: Concept Review Group considers New Program Concepts

Late April: New Program Funding Requests Due

End of May: New Program Funding Requests provided to PFR Subcommittee

Early May: ED & CEO finalizes initial Portfolio Recommendations

10 March/April: Board and B&F Meetings at the Spring National Meeting

New Program Concept

Program Review Subcommittee (PRS) New Program Funding Subcommittee (PFS)

Board or B&F Meetings

September: ‘New Program Concept’ Call is made - due February 1

ED&CEO Meetings

Early May: PRS finalizes initial Portfolio Recommendations Mid-May: Joint session of PRS and ED&CEO

End-of-July: ED & CEO in collaboration with PRS and PFS develops final Portfolio Recommendations PRS/PFS and ED&CEO Meetings

September: Call for Program Review Document is made – due March 1

June (Week 3): Joint session of PRS and ED&CEO

 (Full B&F attendance is optional)

Jan

Sep Sep

(11)

How is SPPM

Conducted?

 Each of the Critical Elements of the Process

are detailed on the next slide.

 Each of these processes are documented in

a Portfolio Management Users Manual.

 Each process is conducted and moved

along the calendar of events in a step-wise

fashion. Information is exchanged, feedback

provided, consensus developed and

recommendations developed for Board

consideration.

(12)

Critical Elements SPPM

12

Pre-2014 2014 Forward

New Concept Review Did not exist Roll out September 2014 Program Grouping Existed, not well

understood

Staff develops for BOG consideration & approval

New Program Funding New Program Funding Subcommittee of B&F

Refine Program Funding process & form

Goals & Metrics Inconsistent Staff development with Governance review of recommended Goals/Metrics

Program Review Program Review Advisory Group, 4 year cycle

Annual participation in a Program Review process overseen by the Program Review Subcommittee of B&F Program Valuations Did not exist Valuation within a 3x3 grid of 'Advantage' & 'Impact' Portfolio Rebalancing As Needed Portfolio recommendations developed anually by ED &

CEO & PRS for B&F and Board consideration and approval

Sunset Review Did not exist Identification of less strategic, effective or impactful programs by ED & CEO and the Program Review Subcommittee of B&F

Training on Goals & Metrics

& use of valuation tools

Inconsistent Develop training modules and expertise for Cognizant Committees and program staff

(13)

SPPM

Users Manual

Living document

Process summaries

How-to instructions & documentation

Forms with instructions

Calendar of activities

This documentation will be updated as we

continue to learn from our experiences

and the first edition will be available

10/1/2014.

(14)

Questions on SPPM?

Email: [email protected]

August 2014

(15)