Corporate R&D portfolios are dangerously out of balance, and this can have a material impact on company growth. Despite increasing the amount of spending on transformational innovation projects, most R&D leaders report that these projects are being delayed and “traded off”. R&D often ends up having to redirect its focus under intense pressure from the business to support near-term incremental projects.
Build and Maintain a Healthy R&D Portfolio
Less than one fourth of R&D executives are satisfied with their portfolio management processes. Less than half of R&D leaders believe their portfolios contain a sufficient number of high-value projects that are free of undue delays. This lack of portfolio health matters: of companies with the unhealthiest R&D portfolios, 78% anticipate missing their five-year revenue growth goals.
To improve the health of the R&D portfolio, R&D must change how it guides the business away from lower-value incremental projects, as well as strengthen limits on R&D resources available for incremental work.
What the Best Companies Do
The best companies determine and build the portfolio across key factors such as time horizon, risk level, and project type.
Investment Evaluation & Prioritization
The best companies use clear, transparent valuation standards to assess and prioritize current and potential projects
Eliminate Lower-Value Incremental Projects
The best companies effectively scrutinize projects to consistently ensure resources are being used for projects that will drive the most value.
Contact us to learn more about how we can help you improve the health of your R&D portfolio and prevent dangerous trade-offs.