Best Practices for Managing R&D Portfolios

OVERVIEW:R&D portfolio management is a challenging task for most executives. The findings of this study suggest that although many companies are struggling with portfolio management, some organizations are achieving better results in terms of six portfolio performance metrics. Top performers indicated better results on alignment with objectives and strategy, achieving high-value portfolios, cycle time, and portfolio balance. The leaders are using a hybrid approach that combines different traditional approaches; they rely far less on financial methods for portfolio management, and have an explicit and established approach to portfolio management with management buy-in and support.