Action-oriented portfolio management

Efficient portfolio management is paramount to adding shareholder value in any organization. However, the art of portfolio management stretches beyond evaluation techniques. More significantly, it is the ability to promote actionable steps utilizing all company assets that allows managers to create shareholder wealth. The strategy table approach to R&D portfolio management helps focus efforts into this realm of action for the following reasons: 1) It generates alternatives where choices will actually be entertained (the equivocal projects); 2) It eliminates unnecessary analysis where no alternatives are under consideration (doomed, favorite projects); 3) It focuses decision makers on portfolio issues rather than project issues; 4) It provides the materials necessary to communicate a recommendation for action. Although significant challenges remain to make this approach commonplace, it appears to be an attractive methodology that should be considered for effective R&D portfolio management.