We’re often asked for a 35,000 foot view of portfolio management, something that doesn’t delve into every detail, but helps explain to newcomers what portfolio management is about when distilled to its essence. In this blog post we offer up a response to that common question: a one-page flow chart that summarizes the activities of R&D portfolio management.

Keep in mind that we’ve striven to avoid a diagram that includes every contingency because, well, that wouldn’t be helpful as a visual. A few details worth mentioning:

  • We’ve streamlined the flow considerably. In reality there are feedback loops everywhere, and some steps require days/weeks/months of preparation, depending on the specifics of your portfolio.
  • We’ve glossed over the complexities of role-based planning vs. simple budgeting. Dollars and Euros may be fungible, but medicinal chemists can’t be replaced by bioreactor engineers.
  • The distinction of when to prioritize vs. when to optimize isn’t as black-and-white as we portray here. In fact, in the right hands both tools can be used on the same portfolio to deftly explore the possible funding options you might want to present to executives.
  • You may not have a portfolio ‘problem’: If you have committed all your funds, or you have far more funds than you do projects to fund, you may not have many decisions to make.

Still hungry after looking at the flowchart? Feast on the these related posts and videos:

Enrich is here to help you on your portfolio journey. Drop us a line if you want to talk shop. And of course, we’d love to hear what you think of the flowchart. Click on the flowchart picture below to download a version in Adobe Acrobat.