How can I make sure to use my resources in the best possible way?
To succeed with high value innovation work, you need to have total control of your portfolio. This can be done by integrating portfolio management with the Innovative Management System (IMS) and the Operational Model.
To manage a portfolio of innovation projects, from improvements to disruptive solutions, you need a mechanism that answers three questions around your portfolio of projects:
- Strategic direction: Are the activities we are performing in line with our strategy, and are we distributing our resources in a way that gives us the best possible chance to execute the strategy that we have set out for our organization?
- Priority: Which project should be prioritized above others based on value (impact) and resource availability (feasibility). That is, the valuation of projects should be the base for prioritization.
- Value: Is the potential upside of the portfolio large enough for us to fill the growth gaps and on what type of projects do we need to close the gaps in order to reach our objectives?
These three basic questions create the avenue for portfolio management efforts, such as managing the portfolio for different parts of the innovation process, selecting priorities, balancing risk, handling uncertainty, and delivering on the strategic agenda.
The portfolio management approach we use is a visual approach where activity, individual value and overall value is highlighted in an easy to follow way. The activities and value created is a blend between exiting solutions and improvements on one hand and novel new value and activities on the other hand. This mix calls for an ambidextrous way of working.