Portfolio Resource Planning for Innovation Performance Success
Many organizations have too many low-value projects and low success rates – frequently due to lack of portfolio resource planning capabilities and processes:
- 59% say their resources are “stretched too thin” because of too many active projects1, and
- 40% of resources spent are wasted on unsuccessful products.2
The results are astounding, yet fairly common across organizations. Gaps in alignment, resource constraints and low success rates of new products all hinder innovation performance due to lack of sufficient portfolio resource planning.
Portfolio decisions are frequently disconnected from resources, making it difficult to easily adjust and respond to changes. Even when portfolio teams make good decisions, there is often a delay—or worse, a disconnect—between those new priorities and the commitment of resources required to implement them. Our view is that portfolio planning and resource planning decisions are closely linked and should be considered within a connected and coherent planning process.
Our years of experience in portfolio resource management have shown that:
- Resource plans must be defined for effective decision-making.
- The only way to ensure accurate, useful resource data is to manage it top-down.
- You need 100% visibility of accurate, meaningful portfolio and resource data.
- You must ensure portfolios and resources are fully aligned with short-term and long-term objectives and strategies.
Effective portfolio resource planning requires a thorough understanding of your current resource allocations and the impact of introducing new projects on those resources. Creating high-level top-down resource plans early in the process will help you make informed decisions regarding resource commitments as well as availability for current and additional innovation and new product development projects.
Learn more about how to create a portfolio resource management process that provides cost-effective and timely visibility into current and future resource demands:
1 “Product Launches Hindered by Major Challenges”, CGT, September 2011
2 Product Development Institute