As previously discussed in this series, we have often found it to be the case that Lifecycle Management (LCM) is only done sporadically, such as when budget allows or simply as a box-ticking exercise. “LCM” is, therefore, often a reaction to specific opportunities as opposed to being part of a broader strategic vision that ultimately benefits the whole portfolio.
To achieve the latter, alongside the creation of a cross-functional LCM structure, putting in place a robust process that drives effective, rational, and aligned decision making is a key element of doing so. These processes must integrate market insight with brand & portfolio needs, include idea generation from both within and outside the organisation and deliver plans that are cross-functionally aligned and primed for senior management review and investment.
Six steps of a strong LCM Process
A strong LCM process classically comprises of six key steps: The first five steps are typically addressed through a single LCM program, often over a period of six-to-nine months (allowing time for full business case development). The last element, regular review, keeps an LCM fresh and should be extended throughout the life of the brand and portfolio. Effectively executing each step requires coordination of relevant resources, development of an effective decision-making structure (a balance of individual vs. workshop efforts) and communication to the broader group to maintain focus and alignment.
Nuances within the LCM process
The first two steps of the process, situation analysis & LCM strategic objective setting, can be integrated into standard brand planning process as long as the relevant strategic horizon is considered. A common mistake is to use outputs from a situational analysis designed to inform 12-24 month strategy for the purpose of LCM planning or to target LCM efforts to strategic imperatives which are developed to meet 2-3 year goals. Although some issues and strategic imperatives will be common across both short & mid-term market environments, new opportunities and threats will be present that are not addressed without appropriate focus
The next two steps, ideation and prioritisation, are the most common elements to every LCM process, but can vary dramatically in both their effectiveness and their relevance based on a number of factors. If the ideation process is driven by what teams think they can do, it may not be tailored to market needs, while processes focussed purely on market needs may fail to identify new opportunities to shape the market. Prioritisation processes that ask for knee-jerk feasibility or cost estimates to newly created opportunities can lead to overly cautious assessments, while taking too many options through to business cases can slow down the process and tie up too many resources.
Ultimately, effective planning processes for LCM are all about balance – using the right resources at the right time and using prioritisation processes effectively to keep projects manageable.
A key theme that has been raised throughout many of the critical success factors of the series so far is the importance of being in tune with the market and ensuring that any LCM planning activities are working towards something that the market needs, both in its current state but crucially as it evolves. But how do we ensure that we are aligned with these needs and their evolution? Check-in soon for our next CSFs for LCM Piece, where we will examine effective ways to model the future.
