|
|
|
|
|
|
|
III.
Overview of the Portfolio Review Process |
|
|
|
|
|
|
|
|
This section outlines the key features of the portfolio review and analysis process. |
|
|
|
|
|
|
|
|
Strategic portfolio review is conceptually very simple: |
|
|
|
|
|
|
|
|
 |
|
|
|
|
|
|
|
|
There is no single right method for determining optimum portfolios, but in any successful methodology there is a guiding principle of balance. First, there must be a balance between analytical and Delphic approaches; to some extent this will be dictated by the stage of development of technologies or particular components of the portfolio. In general, the earlier in the process, the less emphasis there will be on quantitative analysis. Secondly, there must be balanced input from R&D and Marketing and from other functions as appropriate. The inputs must be strategic and visionary rather than operational. The third element is the internal/external balance. This applies to environmental analysis and to contribution to the review. A richer and more robust process will usually follow if external, unprejudiced expertise is allied to internal judgment and familiarity with the company, its strengths and its ethos. Fourth, there must be a balance between the time and effort required and the value and credibility of the information obtained for the review. |
|
|
|
|
|