In a resource-constrained world, Innovation and Finance often work at cross-purposes. Innovation teams balk at Finance placing restrictions on resources and demanding precise, fixed estimates of project results. Finance sees Innovation teams as a source of unnecessary risk and expense without certainty of return. This tug-of-war distracts both Innovation and Finance from growing the business.
"Use the portfolio process because it delivers business value, not just because it is a best practice" is a reminder that the tool is a means to a goal, not the goal itself. Always ask yourself how strategic portfolio management can tangibly advance the business goals of the company and deliver recognizable results.
Developing and successfully launching new products can be a very risky undertaking. There are many unforeseen hazards between concept and launch. No matter how carefully you forecast and plan, you are negotiating uncharted waters. It can be a messy process, full of surprises--some good and some bad.
The idea that pursuing every innovation opportunity is the best way to maximize the power of an innovation portfolio is appealing. If there were no limitations on available resources, every project with a positive net present value (NPV) would indeed be worth pursuing.
Download PDF SmartOrg knows that if one of our customers has a problem, there’s a good chance another of our customers has already solved it. SmartOrg held an inaugural Community of Practice event to let its client base of innovation portfolio managers benefit from each other’s experience and draw valuable lessons about how SmartOrg supports
Download PDF By Don Creswell, SmartOrg Suzanne stared at her computer screen as she prepared her presentation for the decision board. She nervously tapped her fingers, wondering how she could possibly convince these tough birds that her product idea had great promise, despite a lot of uncertainty around pricing, market acceptance, market share and a
By Don Creswell, SmartOrg A Google search provides hundreds, maybe thousands of references to portfolio management. I grabbed this definition from a BBC “bite-size” reference: “Portfolio management is the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs and other related work to achieve specific strategic business
In the field of strategic portfolio management there is a prevalence of dashboards and analytics attempting to measure all kinds of things that are considered to be of value. When these metrics get interpreted as a measure of value, portfolio management turns into a giant optimization problem that downplays the role of human creativity, innovation, and insight in creating value.
Download PDF By Don Creswell, SmartOrg It is always gratifying to hear from ValuePoint readers, particularly where our viewpoints are challenged, opening a dialog that expands knowledge and learning. In this month’s issue, I’ll pick up on some of the questions and comments related to last month’s article “Innovation Portfolio Management: People + Process +