“Portfolio management is the art of developing and successfully managing a roadmap of innovation projects that will enable you to deliver your innovation strategy”
Portfolio management includes a number of key activities
Project status and progress reporting
Tracking the performance of innovation projects on predefined KPIs and targets
Stage gate decision making
Approving the transition to the next phase of the innovation process, which can also lead to stopping or pivoting the project
Resource allocation to innovation projects
Making sure your innovation projects have sufficient budget and the right people available
Only 33% of companies report the (financial) performance of innovations
RevelX IRB research shows that only 33% of the companies in our benchmark closely monitor the performance of innovation projects on well-defined metrics. Only 35% of the companies have solid financial business cases for their innovation projects. Only 39% of the companies in our benchmark quickly stop with projects that shows no viability and only scale the viable ones. So, there is a lot of room for improvement.
Investing in innovation portfolio management pays off
of low performers is good at innovation portfolio management
of the average performers is good at innovation portfolio management
of the high performers is good at innovation portfolio management
Recent Accenture research (2020) confirms that companies who govern innovation portfolio extensively delivered up to 2x revenue / value growth compared to those following an ad-hoc approach to portfolio management
Start improving your Innovation Portfolio Management now and double your return on innovation. At RevelX we have successfully developed two types of approaches to support you in improving your Innovation Portfolio
Who
Organizations that want to develop a new portfolio management process
How
- Start from scratch with a ‘blank sheet of paper’ approach
- Evaluate ‘lessons learned’ from the past, pitfalls to avoid and the successes to enhance
- Get inspired by RevelX’ best practices, e.g, over 10 years of research, case studies in all sized of industries, metrics and tooling
Deliverables
New bespoke innovation portfolio process, including proper governance and decision making
Effort
2-3 days
Who
Medium to High performing organizations at innovation portfolio management who want to optimize their current portfolio management activities
How
- Will take your existing portfolio management process as a starting point
- Compare your existing process with our benchmarks, culminating in suggestions and advice for improvement by reviewing the overall framework
- Evaluate stage gate and discuss the objectives per stage, the criteria for passing gates, and the deliverables to be produced
- Establish performance metrics to measure success
- Compare innovation governance against our Growth Board best practice principles
Deliverables
New bespoke innovation portfolio process, including proper governance and decision making
Effort
2-3 days
Tools
- Innovation management
- Innovation portfolio framework
- Innovation funnel
- Innovation performance metrics
- Reporting structure
- Stage-gate decision making model
- Innovation governance
Innovation Portfolio Management Framework
Designing and strengthening your innovation portfolio makes a critical contribution to your overall innovation performance. Download here our Innovation Portfolio Management Framework.
Innovation Portfolio Management Playbook
This playbook to help you succeed in designing your innovation portfolio, managing your funnel, reporting on your innovation portfolio, and making stage-gate decisions.
"We were impressed by how quickly RevelX pin-pointed our blind spots and we were able to make major improvements thanks to their bold and thorough advice."
— Leanne van Almen & Martijn de Groot, Management Team, Radboudumc Health Innovation Labs
The added value of innovation portfolio management when well performed:
- Alignment between strategy and your innovation pipeline
- Balance portfolio between horizon 1, 2 and 3
- Focus scarce resource on priority projects to maximize value creation
- Create clarity for your innovation teams on what they need to do to make the next stage
- Shorten the time to market by setting targets for stage gates
- Less hobby horses and less dead horses in your portfolio