Product Portfolio Management: Connecting a Vision to Strategy and Budgets

Effective product portfolio management requires managing early stage product concepts and selecting the best ones. A systematic approach to tying the vision, strategy, and budgets together can create products predictably and with less risk. To achieve this, two interlinked systems for front-end innovation development are required: an annual, systematic portfolio planning process tied to budgeting, and an ongoing, agile, portfolio management process for selecting and prioritizing new product concepts. Companies can use a two-point review decision system to manage the early stages of development and define the placement of these two key decision points. It's important to create a set of deliverables for proposed projects and have a clear methodology for evaluating proposed products.