An Overview of best practice in R

1
An Overview of best practice in RD project
portfolio management

• Professor Ken Taylor
• University of Surrey
• United Kingdom

8 May 2003 Lisboa, Portugal
2
Introduction

• A review of best terrestrial practices in RD
  portfolio management
• Utilising recent European benchmarking and
  studies.
• Assessed across diverse sectors
• Encompassing many countries

3
Critical Factors

• Project portfolio management is an inherently
  complex and difficult task.
• One size does not fit all.

4
What is Portfolio management?

• Which projects?
• Resource allocation?
• When to expand?

5
Portfolio Alignment and Balance

• Mission and vision known and understood
• Strategic business drivers identified
• Skilled multidisciplinary teams working together
• Superb process for monitoring and killing
  projects
• Capabilities data base must be up to date
• Technology transfer should be well defined
• Road mapping is essential for bringing everyone
  together
• Knowledge Management process must be in place
• Project portfolio must remain strategically
  balanced

6
Portfolio Alignment Model
7
The S-Curve of Business Life-cycle
8
Balancing the Portfolio according to Strategy
9
Technology Monitoring Objectives

• Identifying and assessing critical technological
  advances
• Detecting discontinuities
• Detecting new emerging technologies

10
Portfolio Management Approaches in Practice

• Close links between the business functions
  involved in portfolio and project management.
• Excellent communication, regular training and
  post investment reviews.
• Selection of key decision-making tools.

11
Roadmapping
12
Bubble Diagram
13
Time to market portfolio
14
The Stage Gate process
15
Simple Stage Gate Processes
16
Decision Tree
17
Attractiveness Capability Matrix
18
Other Methodologies
19
Other Methodologies cont
20
Other Methodologies cont
21
Final Recommendations

• The choice of tools is entirely dependent on the
  nature of your business
• Keep it simple and transparent

22
Appendix - Bibliography

• The Benchmarking Book, M.J.Spendolini, AMACOM,
  1992
• A Consensus on Best RD Practices, D.L Ransley
  and J.L. Rogers, Research Technology
  Management, Apr-May, 1994
• Determining a Projects Probability of Success,
  J.Davis, A.Fusfield, E.Scriven, G.Tritle,
  Research Technology Management, May-June 2001,
  pp 51-57
• The Invisible Success Factors in Product
  Innovation, Journal of Product Innovation
  Management, 16, 1999, pp. 115-133
• Learning from the Future Competitive Foresight
  Scenarios, edited by L.Fahey and R.M. Randall,
  Wiley. 1997

23
Appendix - Bibliography

• New Problems, New Solutions Making Portfolio
  Management More Effective, R.G.Cooper, S.J.
  Edgett and E.J. Kleinschmidt, Research and
  Technology Management, 43(2) 2000
• Project Management Journal http//www.pmi.org
• Portfolio Management for New Products
  R.G.Cooper, E.J.Kleinschmidt, S.J.Edgett, Perseus
  Publishing 2001
• Portfolio Management for New Product Development
  Results of an Industries Practices Study, R.G
  Cooper, S.J.Edgett, E.J.Kleinschmidt, RD
  Management, 31(4) 2001
• Product Strategy for High Technology Companies
  M.E.McGrath, McGraw-Hill Professional, 2000
• Research Technology Management
  http//www.iriinc.org
• Revolutionising Product development Quantum
  Leaps in Speed, Efficiency and Quality,
  S.C.Wheelwright, K.B.Clarke, The Free Press, 1992
• Third Generation RD Managing the link to
  Corporate Strategy, P.A.Roussel, K.N.Saad,
  T.J.Erickson, Harvard Business School Publishing,
  1991
• Underlined reading is recommended to give a
  complete overview of the current best practice

24
Appendix - Bibliography

• EIRMA
• The European Industrial Research Management
  Association brings together companies with common
  interests in technology-led innovation and the
  effective management of research and development
  and intellectual capital. Its aim is to foster
  and promote these activities, which are essential
  to continued competitiveness and economic
  well-being and to strengthening Europes position
  in technology and innovation. EIRMAs special
  contribution comes through its international
  networks of skilled and professional managers and
  directors, extending across industry.
• EIRMA reports relevant to this study
• Reports are available for purchase by
  non-members of EIRMA
• Evaluating RD Projects (WG47)
• Technology Roadmapping (WG52)
• Project Management in RD (WG53)
• Technology Monitoring (WG55)
• Integrating Technology and Business Strategy
  (WH58)
• Core Competences and RD (WS VII)
• Creativity and Innovativeness in RD (WS IX)
• Researchers as Business People (WS X)