Tenet #7: Design tiered portfolios
In last week’s blog, I wrote about the value of using visual methods to cut, examine and present the data in many different ways. Visual methods have the advantage that you can quickly see large, complex data sets on a single page and perhaps best of all, can compare projects easily. This is essential as you are striving for a balance portfolio.
But a balanced project portfolio is fed by and in turn feeds other portfolios. While the exact list may vary with industry, included are typically:
- Technology Portfolio – Before you can successfully create that breakthrough non-invasive glucose monitoring unit, you need first to develop the technologies for miniature Raman spectroscopy, low noise signal detection, wireless communication and data management. You need to decide which technologies will be developed and which will simply be bought from others. The best new product development organizations are able to recognize key technologies, especially those that present high risk and pull them off of the critical path of a particular project. Running parallel then to the project roadmaps should be another roadmap for the needed technologies beyond the current product roadmap. This requires vision, insight and highly skilled decision-makers. You need to create a Technology Project Portfolio along with processes to balance, authorize and manage these projects, and then have these technologies intersect your product roadmap.
- Process Portfolio – In order to design and fabricate a new line of high speed semiconductor devices based on 10 nanometer gates, you need processes for ultra-fine line lithography, deposition, etching, and many other processes. Or before you begin that new business in high volume, low mix manufacturing (where all previous products required low volume, high mix) you have much work to do in altering manufacturing processes and/or identifying manufacturing partners. These efforts require projects and roadmaps, and should use portfolio management to balance, authorize and manage the projects.
- Competency Portfolio – Before you are able to enter a new market like RF test equipment or Pulsed Radar equipment, you need to decide which competencies will be core to the business and therefore owned, and which will be needed on a temporary basis and are candidates for open innovation. Developing the competencies for new areas of business require a plan. They require an inventory of current skills, and a roadmap to get where you need to go. They require development of more than just the product development department competencies, but may also require development of the sales force, application engineering, marketing, manufacturing and other functional areas. Your competency portfolio may at any time require minor or very significant work.