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| Exhibits | |
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| Acknowledgments | |
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| The Quest for the Right Portfolio Management Process | |
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| What Is Portfolio Management? | |
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| What Happens When You Lack Effective Portfolio Management | |
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| A Roadmap of the Book | |
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| Portfolio Management Is Vital | |
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| Much Room for Improvement | |
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| Major Challenges for Portfolio Management | |
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| Some Definitions | |
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| Three Decades of RandD Portfolio Methods: What Progress? | |
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| Recent Advances in Portfolio Management Methods | |
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| Where Portfolio Management Stands Today | |
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| Major Gaps between Theory and Practice | |
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| Portfolio Management: It's Not So Easy | |
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| Requirements for Effective Portfolio Management | |
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| What the Leaders Do: Three Goals in Portfolio Management | |
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| Portfolio Management Methods: Maximizing the Value of the Portfolio | |
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| Maximizing the Value of the Portfolio | |
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| Using Net Present Value to Get Bang for Buck | |
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| Expected Commercial Value | |
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| The Productivity Index (PI) | |
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| Options Pricing Theory (OPT) | |
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| Dynamic Rank-Ordered List | |
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| The Dark Side of the Financial Approaches to Project Evaluation | |
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| Valuation Methods: Scoring Models | |
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| Developing and Using Scoring Models | |
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| Assessment of Scoring Models | |
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| Checklists As Portfolio Tools | |
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| Paired Comparisons | |
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| Value Maximization Methods: Summing Up | |
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| Portfolio Management Methods: Seeking the Right Balance of Projects | |
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| Achieving a Balanced Portfolio | |
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| Bubble Diagrams | |
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| Variants of Risk-Reward Bubble Diagrams | |
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| Other Bubble Diagrams | |
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| Bubble Diagram Recap | |
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| Other Charts for Portfolio Management | |
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| Balance: Some Critical Comments | |
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| Portfolio Management Methods: A Strong Link to Strategy | |
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| The Need to Build Strategy into the Portfolio | |
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| Linking Strategy to the Portfolio: Approaches | |
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| Developing a New Product Strategy for Your Business--A Quick Guide | |
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| Moving to the Attack Plan | |
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| Product and Technology Roadmaps | |
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| Strategic Buckets: A Powerful Top-Down Approach | |
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| Strengths and Weaknesses of Top-Down Approaches | |
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| The Special Case of Platform Projects | |
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| A Variant on Strategic Buckets: Target Spending Levels | |
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| Bottom-Up Approach: Strategic Criteria Built into Project Selection Tools | |
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| Top-Down, Bottom-Up Approach | |
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| But How Much Should We Spend? | |
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| Summary | |
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| Portfolio Management Methods Used and Performance Results Achieved | |
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| The Average Business | |
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| The Best and Worst Performers | |
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| Satisfaction with Portfolio Management Methods | |
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| The Nature of Portfolio Methods Employed | |
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| Popularity and Use of the Various Portfolio Methods | |
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| Which Methods the Best Performers Use | |
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| Specific Project Selection Criteria Employed | |
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| Selecting Projects in Rounds | |
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| How Specific Portfolio Methods Perform | |
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| The Benchmark Businesses | |
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| Conclusions and Advice from Our Practices and Performance Study | |
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| Challenges and Unresolved Issues | |
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| General Conclusions | |
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| Specific Conclusions and Challenges Identified in Effective Portfolio Management | |
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| Challenges and Issues | |
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| Portfolio Management Is Not the Complete Answer | |
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| The Path Forward | |
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| Data Integrity: Obtaining Reliable Information | |
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| Types of Information Required | |
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| Marketing, Revenue, and Pricing Data | |
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| Manufacturing or Operations and Related Costs | |
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| Estimating Probabilities of Success | |
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| Estimating Resource Requirements | |
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| Deal with Uncertainties: Sensitivity Analysis and Monte Carlo Simulation | |
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| Summary | |
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| Making Strategic Allocations of Resources: Deployment | |
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| In Search of the Right Portfolio Method | |
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| Resource Allocation Across Business Units: The Methods | |
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| Deciding the Spending Splits: The Strategic Buckets Model | |
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| Strategic Buckets: A Step-by-Step Guide | |
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| Some Features of the Strategic Buckets Decision Process | |
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| Summary | |
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| Making Portfolio Management Work for You: Portfolio Management and Project Selection | |
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| Three Key Components of the Portfolio Management Process | |
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| Strategy: The First Key Driver of the Portfolio Management Process (PMP) | |
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| Gating: The Second Key Driver of the Portfolio Management Process | |
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| Portfolio Reviews: The Third Key Driver of the PMP | |
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| Two Fundamentally Different Approaches to a Portfolio Management Process | |
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| The Gates Dominate--An Overview of How It Works | |
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| The Portfolio Review Dominates | |
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| Pros and Cons of Approach 1 Versus Approach 2 | |
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| In Conclusion: An Integrated Decision System | |
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| Designing and Implementing the Portfolio Management Process: Some Thoughts and Tips Before You Charge In | |
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| Before You Charge In | |
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| Defining the Requirements | |
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| Designing the Portfolio Management Process--Key Action Items | |
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| Trial Installation and Adjustments | |
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| Implementation and Improvement | |
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| Winning at New Products | |
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| Appendixes | |
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| Overhauling the New Product Process | |
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| Sample Gate 3 Screening Criteria (Scored) | |
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| NewPort Max Software: A Tool for New Product Portfolio Management | |
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| The NewProd 3000 Model | |
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| Reference Notes | |
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| Index | |
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| About the Authors | |