Robert G. Cooper, Scott Edgett, and Elko Kleinschmidt define portfolio management as a dynamic decision process, whereby a business's list of development projects and new product programs are reviewed, updated, and revised on a regular basis. In this process, new products are evaluated, selected, and prioritized. Existing projects are also evaluated and may be accelerated, deprioritized, or killed. Resources are naturally allocated to active projects according to priorities set. The portfolio management process is characterized by uncertain and ever changing information, dynamic opportunities, multiple conflicting goals, strategic considerations, interdependence among projects, and multiple decision makers spread across the world. Decision making in portfolio management encompasses a number of decision-making processes within the business, including regularly scheduled portfolio reviews; analysis and decision making on the collection of projects that make up the portfolio; making go/no go decisions on individual projects on an ongoing basis; setting new product, process, and project strategy for the business; and making strategic resource allocation decisions.5
This is essentially how we approach portfolio management. Our business team consists of the commercial management, marketing management, and technical management players. We consider technology portfolio management to be a business process and collection of many tools that are designed to help the business team make better decisions, manage risk, and plan for the future. We work hard not to be driven by the process, but to drive the process to enable us to achieve our business strategy.
Our portfolio management system has three critical elements that have contributed to its successful design, implementation, and sustainability:
• It encompasses the whole innovation pipeline.
• It features senior management-level support, proactive participation, and staff proactive support and participation.
• It uses effective practices, tools, and methodology.6
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.