Guidebook: Innovation Portfolio Management – Balancing Value and Risk
Best Practice
Frost & Sullivan awarded Beta Corporation* with a Best Practice designation for its portfolio management process. Beta implemented a six-step portfolio management process to focus on its most valuable opportunities. This process helped them achieve more with less, with spending levels 5th in their industry but results in 3rd place. Ultimately, it contributed to beating their 2001-2010 EBIT CAGR goal by 5% points.
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*Beta Inc. is a pseudonym.
How it Works
The guidebook explains the six steps for strategic portfolio management best practice:
- Screen Project
- Evaluate Project
- Calibrate Information
- Balance the Portfolio
- Adjust the Portfolio Strategy
- Track Progress (and repeat from Step 1)
The results: 100% increase in products successfully launched and 30% increase in the portfolio’s ROI.
“Half of growth is how much you invest; the other half is where you invest it.”—Global Process Leader