Top-performing businesses excel in new product portfolio management strategies
Effective portfolio management is crucial for successful product innovation. The study examined 205 U.S. companies to understand their portfolio management practices and performance. Businesses were categorized into Cowboys, Crossroads, Duds, and Benchmark groups based on their portfolio management approach. Benchmark businesses, the top performers, had high-value projects aligned with their strategy and the right balance of projects. They used clear, formal portfolio procedures consistently across all projects, leading to better performance compared to other groups. Different portfolio methods were explored, with Benchmark businesses standing out for their structured approach to managing project portfolios.