Investment Optimization Process

	Transparent Investment Decision Making
	Linking of Strategic Objectives to The Investment Planning Process
	Consistent Decision Making Across All Business Units Of An Organization

Benefits of our Investment Optimization Process

	Investment decision making alignment between the asset management and financial groups.
	Clear link between the operational and functional strategic goals and the planning level decisions.
	A consistent platform for investment evaluation and decision-making across all business units, even support services and functions.
	Value creation of an investment considered in the context of the risk of not investing.
	Rigorous and credible communication tool with your board, regulator, unions, ratepayers, communities and other external stakeholders (for example, investment bankers).
	Supports scenario analyses, including looking at future investment solutions 3 –5 years into the future as well as alternative solutions.
	Allows disciplined mid-course corrections when the business experiences looming earnings or cash flow shortfalls.
	Enables testing of decisions after the fact to assure expected results are achieved.
	Plus other direct benefits, including strengthened accountability in the organizational culture, as project benefits pro mised are quantified and documented before funding approval and actual results delivered (by the project manager) are measured and compared to commitments.

Who We Serve

Typical clients adopting the Portfolio Optimization Process include :

	Asset owners seeking to maximize the return of all financial resources across a range of different assets in a single portfolio (network, IT, vehicles, property, etc).
	Multi-portfolio asset owners seeking to make optimal investment decisions across all of their different portfolios (ie: electricity, gas, telecommunications and water assets).
	Asset owners operating in economically regulated environments, where proof of transparency and robust investment decision making is key to mounting defensible regulatory arguments.

What We Offer

Asset owners around the world wrestle with the following questions on a day-to-day basis :

	How do I best optimize my investments and spending to achieve desired business outcomes?
	How do my investments and spending support the business strategic objectives?
	How do I scenario test my investment decisions?
	How do I defend my investment and spending decisions – to the Asset Owner, External Owners and the Regulator/Ratepayers? How do I ensure they are defensible?
	What impact will additional budget dollars have on my goals and performance? How will a budget reduction impact the goals and performance?
	How do I guarantee consistency such that investment and spending decisions made by different people in the business get the same results?

To date, there has been little in the way of advanced investment planning processes and tools to help them with the answers. Until now !

In 2003, UMS Group introduced its Portfolio Optimization Process (POP). As a significant component of implementing POP, UMS Group consultants facilitate client executive leadership and planning groups in the setting of overall Strategic Objectives of the enterprise and in development of a set of project and program scoring matrixes that underpin the optimization process. These outcomes are the foundation for the customization and delivery of a constrained optimization tool that finds the best way to allocate scarce financial resources.

Yet, the POP is more than a process and tool, it is a capability. A capability, which once installed in your company, leverages the experience, knowledge and skills of the people involved in the investment decision-making processes. The POP was born from years of experience dealing with the challenges and successes of the world’s leading asset management companies. It provides decision makers with the information needed to make informed decisions surrounding investments. It allows scenario analysis of competing budget items and constraints, complete with the risks associated with not investing.

The POP is developed from an operational viewpoint of the utility industry. It is a pragmatic process and tool designed to provide users with information needed to make tough decisions. Although the POP incorporates some of the latest methodologies, the theories and academic principles have been translated to fit the intricacies of real world requirements.

To UMS Group, a POP engagement is an opportunity to embed a capability and an approach to asset investment and spending that can result in major overall capital and operating expense saving, and virtually always results in more “bang for buck”. (View News Releases on AEP and BC Hydro Spend Optimization projects). As such, it is developed in an open environment, Microsoft Excel, and easily transferred to client’s team. As part of the project, UMS Group works with your staff to ensure the transfer of capabilities. At the completion of the project, your team will be equipped with the knowledge necessary to maintain the POP and perform any minor adjustment or modifications needed as the foundational enterprise objectives and priorities change over time.

Asset Management is not just about building, operating and maintaining assets; it’s about maximizing the lifetime stakeholder value of the asset portfolio. The UMS Group POP process is a large contributor to that goal.

Our Strengths

Global Perspective – UMS Group has implemented our POP for clients in the Americas, Europe, Australia and New Zealand. Clients have included electricity, gas and water utilities operating in a range of heavy-handed and light-handed economically regulated environments. Given our vast experiences in different utility environments, we have the unique ability to offer world class and innovative POP solutions to our clients’ most complex and challenging issues.

Content Intensive Advice – The professional consulting staff used in POP engagements have extensive asset management and investment planning experience. Many have also been involved in several POP implementations and are capable of tailoring solutions to meet the specific needs of clients.

Respected Delivery Capability – Demonstrable client testimonials from asset-intensive enterprises to the effectiveness and value release from POP engagements.

Click here to request Investment Optimization Process Global Case Studies

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