Portfolio Management

Why Portfolio Management ?

"Much like stock portfolio managers, those senior managers who succeed at optimizing their R&D investments - who define the right new-product strategy for their firm, select the winning new-product projects, and achieve the ideal balance of projects - will win in the long run.”

Robert G. Cooper, Scott J. Edgett,
and Elko J. Kleinsdchmidt
Center for Business Practices

Program management of critical initiatives to achieve key strategies:

• Speed to market for new product launches

• EPS and revenue Goals

• Market share

• Retention of top performers

… and eliminate barriers to success

• Missed delivery dates

• Cost overruns

• Lost business

• Product launch failures

The Art of Portfolio Management

Drives selection of business opportunities from strategies to:

1. Achieve the right mix of projects

2. Build the Strategic Project Investment Path

3. Adjusts the portfolio as change occurs:

4. Competitive new product entry
   a. Technology / Scientific breakthrough
   b. Legislation causing industry-wide upheaval

Guiding Principles

• Strategic planning drives portfolio management

• All critical program investment decisions are included

• Program reviews drive ongoing change management

• All decisions based on predetermined business drivers

• Accountability for cost, schedule, quality AND business results