Managing the innovation portfolio : Doing the right projects

Purpose – This paper looks at product development processes at companies as well as project “selection”. Design/methodology/approach – The article analyses effective Portfolio Management and how companies aim for improved returns. Findings – One of most effective ways for all companies to turn around poor product development performance is to focus on picking a “better” mix of projects; one that maximizes the benefits of the spend. This can be achieved through Portfolio Management. One company that has seen major improvements from the introduction of a more effective portfolio management approach is Chevron. Originality/value – The new Portfolio Management process tracks portfolio and project value. It includes activities to understand the upper and lower boundaries of a project's value, which implies an understanding of the risks that could lead to different values.