Evolving a portfolio management process

About this Publication

Overview
There are common issues which companies suffer from when managing their development pipeline, project overload, under-performing portfolios and lack of a link between the strategic direction and project selection are just a few. This Quick Insight takes an in-depth look at portfolio management, highlighting where and how companies can increase the value of their product portfolios.

Implications
For organizations operating Stage Gate ® processes, the evolution of portfolio management as a second-level in the decision-making process is a natural step, providing a mechanism for comparison while at the same time ensuring that there are the right number and mix of projects in the pipeline. This report:

• highlights where portfolio management decision-making needs to be carried out in combination with other reviews
• gives evidence of significant increases in portfolio values following the introduction of a portfolio management process
• shows how organizations who use portfolio management can make difficult tradeoffs
• describes where to derive value from data
• advises when to begin with portfolio management
• illustrates what requirements are needed with regard to resource allocation

Originality
While popular, Portfolio Management Processes are not widespread. The semiconductor giant Intel is one global corporation that until recently relied on an annual planning process which took up to 10 weeks of management time to make product roadmap decisions. In this Quick Insight Don Hardenbrook, a senior internal consultant at Intel, shares his experience of piloting portfolio management within the organization and successfully demonstrating its positive impact on time reduction and resource allocation.

Structure

• The “Focus on… Evolving towards portfolio management” section covers the concept of portfolio management, and highlights the key benefits achieved when introducing the process.
• The “Evolving a portfolio management process” section outlines the problems that existed prior to Intel’s introduction of portfolio management and introduces the steps taken by Don Hardenbrook to identify available resources and prioritize projects in the portfolio.
• A “Comparator case study” provides insights from practitioners and thought leaders on many of the necessary considerations that need to be made when it comes to portfolio management.

Table of Content

Key Insights