Portfolio Management: Linking Strategy to Resources and Execution

Innovation performance requires an innovation system that involves innovation priorities, pathways, and people. Portfolio management is an essential component of this system because it bridges the gap between strategy development, budgeting, resource optimization, and governance of individual innovation projects. Defining the portfolio of interest is the first step in establishing portfolio management in an organization. The next steps involve clarifying the performance goals for the portfolio, constructing portfolio views to generate insights, and using data to make decisions on what to start, stop, and continue doing. Embedding portfolio management as a discipline into the organization involves adjusting the existing strategic planning processes and structures.