Program and portfolio management is how organizations manage the prioritization of initiatives and the allocation of resources. The decisions faced by federal, aerospace and defense (FA&D) organizations in managing portfolios shape the future of those organizations and drive their innovation agendas. The agendas, in turn, determine the performance and success of innovation programs. FA&D organizations that excel at managing their innovation processes and portfolios launch technologies and programs on time and within budget.

Portfolio management helps allocate resources to projects that maximize the value of the portfolio, while maintaining a good balance between short- and long-term projects high- and low-risk/return projects. This paper outlines five principles for developing a program and portfolio management process that allows FA&D entities to better allocate scarce resources and drive sustainable growth.

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