Managing the innovation portfolio: Doing the right projects

Abstract

Purpose

This paper looks at product development processes at companies as well as project “selection”.

Design/methodology/approach

The article analyses effective Portfolio Management and how companies aim for improved returns.

Findings

One of most effective ways for all companies to turn around poor product development performance is to focus on picking a “better” mix of projects; one that maximizes the benefits of the spend. This can be achieved through Portfolio Management. One company that has seen major improvements from the introduction of a more effective portfolio management approach is Chevron.

Originality/value

The new Portfolio Management process tracks portfolio and project value. It includes activities to understand the upper and lower boundaries of a project's value, which implies an understanding of the risks that could lead to different values.

Citation

(2007), "Managing the innovation portfolio: Doing the right projects", Strategic Direction, Vol. 23 No. 3, pp. 35-37. https://doi.org/10.1108/02580540710730828