The document provides guidance on mapping and analyzing a portfolio of strategic initiatives using bubble charts to evaluate initiatives across multiple criteria such as time to benefit, risk level, costs, and strategic alignment. It includes examples of initiative portfolios from an office supply company and organic coffee producer mapped across criteria like risk, time to market, revenue, and profitability. The tool is intended to help organizations ensure initiatives are properly balanced and distributed across strategic priorities and resources.

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
HBR Guide +
Tools for
Managing Strategic
Initiatives
TOOL 6
Mapping a Portfolio
of Strategic Initiatives

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Most leadership teams don’t apply enough
scrutiny to developing, selecting, and managing
initiatives that build value. But the competitive
environment demands greater attention.
Organizations cannot simply allocate funding
for projects and hope for the best. Disciplined
initiative portfolio management is vital to sound
leadership decision making that will maximize
return on investment.
Unlike project management, which involves
keeping individual projects on track, initiative
portfolio management enables organizations to
enhance the value of their entire discretionary
budget. Initiative portfolio management should
follow the basic rules of balancing an
investment portfolio: each project should be
evaluated in the context of the portfolio as a
whole. This prevents overweighting
investments to short-term results and helps
avoid projects that are too risky.
This tool will help you map your initiative
portfolio. We’ve used a bubble chart for this
exercise because it allows you to compare
three or four criteria or sets of data and
generates a useful visualization. Use this tool
with your team to ensure that initiatives are
aligned with strategic priorities and that risk and
resources are distributed properly.
A note on format: This PowerPoint is styled
as a “slidedoc,” a visual document created by
presentations expert Nancy Duarte for cases
that call for more in-depth information than can
fit on a slide.Aslidedoc is meant to be read and
distributed to others for reading rather than
projected. If you prefer to share this content in
traditional presentation form, however, you can
easily transfer much of the text on the slides to
the notes field.
Introduction

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
STEP 1
Strategic Themes

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
What are your organization’s (or group’s) strategic priorities? Most
companies have three or four; others have more, but typically not more
than seven. These themes will become your portfolio categories—in other
words, you will create a portfolio for each theme. (Ultimately, senior
leaders should look at initiatives across all strategic themes as well.) Here
are a few examples of themes. You can enter your own on the next slide.
List Strategic Themes
STEP 1
EXAMPLE THEMES
• Grow market share
• Maintain customers
• Process efficiency
• Organizational learning
• Revenue growth
• Operational excellence
• Innovation/preparation for
the future

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
• Strategic theme 1
• Strategic theme 2
• Strategic theme 3
• Etc.
List Our Strategic Themes
STEP 1

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
STEP 2
Evaluation Criteria

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
The criteria for evaluating initiatives in your portfolios will vary based on your
industry, organization, and strategic theme. In Example 1, which begins on
slide 9, the criteria are:
• Time-to-benefit
• Level of risk involved
• Purpose of initiative (change the rules, win the race, stay in the race)
• Costs of initiative
Determine Criteria for Portfolio Evaluation
STEP 2

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
List your criteria. Start with your first
strategic theme and select criteria
that make sense in your business
context. What factors will help you
determine whether you’ve got the
right mix of initiatives?
Then we will look at two examples.
You will have the opportunity to
create your own portfolio
afterwards.
Determine Criteria for Portfolio Evaluation
STEP 2
• Criterion 1
• Criterion 2
• Criterion 3
• Criterion 4

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
The portfolio at right was created by
a mature office supply company for
the strategic theme of “prepare for
tomorrow.” The criteria are:
• Time-to-benefit (x)
• Risk fit (y)
• The purpose of the initiative (to
change the rules, win the race, or
stay in the race).
The size of the circle represents the
cost of the initiative.
Office Supply Company’s Innovation Portfolio
EXAMPLE 1
< 12 months 12-24 months > 24 months
TIME-TO-BENEFIT
Low
Medium
High
RISK
FIT
The Nine-Cell Grid for
Evaluating Theme Portfolios
This grid is an aid in portfolio
analysis, providing a snapshot
view of an office products
company’s initiative portfolio for
its innovation theme. The five
projects presented here run the
gamut in terms of purpose
(design improvement to
transformational change, risk,
and time-to-benefit.)

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Projects 1, 3, and 4 involve
enhancements to core products and are
aimed at lowering costs, maintaining
competitiveness, and yielding short-term
results.
Project 2 is a transformative initiative—the
development of an entirely new product
line, requiring new capabilities,
partnerships, marketing, and so forth.
Project 5 involves marketing an existing
product in a new region (China), which will
require establishing a new distribution
channel and marketing campaign.
Office Supply Company’s Innovation Portfolio
EXAMPLE 1
< 12 months 12-24 months > 24 months
TIME-TO-BENEFIT
Low
Medium
High
RISK
FIT
2
5
3
4
1

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
This example shows a portfolio that
balances the short-term need to fend off
competition and expand market share with
the longer-term goal of exploring new
markets and establishing new sources of
revenue.
Office Supply Company’s Innovation Portfolio
EXAMPLE 1
< 12 months 12-24 months > 24 months
TIME-TO-BENEFIT
Low
Medium
High
RISK
FIT
Purpose of initiative:
Change the rules
Win the race
Stay in the race
The size of the circle reflectsthe
cost of the initiative.
2
5
3
4
1

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Our second example comes from a
Hawaii-based organic coffee producer.
The company has achieved successful
growth and brand recognition selling
directly to independent coffee shops
nationally and is seeking to expand into
additional channels.
Company leaders want to look at four
dimensions for each initiative: Capability
fit, time to market, projected revenue,
and profitability.
Organic Kona Co.’s “New Channel” Portfolio
EXAMPLE 2
<9 months 9-18 months >18 months
TIME TO MARKET
Low
Medium
High
CAPABILITY
FIT
Size of circle denotes
projected revenue.
Color of circle denotes
profitability:
Direct-to-consumer
subscription
Partnership with
SW regional chain
Chain of
coffee shops
in Honolulu
Open coffee
shops at West
Coast hub
airports
LEAST MOST

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Partnering with southwest regional chains
aligns closely with Organic Kona’s existing
distribution capabilities.
Piloting a chain of concept coffee shops in
Honolulu is already in progress. Launching
a brick and mortar retail store requires
developing new capabilities.
Launching a direct-to-consumer coffee
subscription requires developing an
e-commerce presence and developing
consumer marketing capabilities.
Opening airport coffee shops at West
Coast hub airports will require gathering
intelligence from local coffee shops.
Organic Kona Co.’s “New Channel” Portfolio
EXAMPLE 2
<9 months 9-18 months >18 months
TIME TO MARKET
Low
Medium
High
CAPABILITY
FIT
Use color to show a fourth criterion.
Use size to show a third criterion.
Direct-to-consumer
subscription
Partnership with
SW regional chain
Chain of
coffee shops
in Honolulu
Open coffee
shops at West
Coast hub
airports

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
STEP 3
Map Portfolios

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Now that you’ve seen a few examples
of portfolio maps, it’s time to create
your own.
After you’ve selected a strategic theme,
fill in the the criteria you’ve chosen for
portfolio evaluation.
You may choose to use this 3x3, a 2x2
matrix, or—if you are using numbers—
use a true x-axis and y-axis.
There is no wrong approach as long as
you are mapping them visually.
Map Portfolios for Your Strategic Themes
STEP 3
Measure 1 Measure 2 Measure 3
CRITERION 2
Measure
1
Measure
2
Measure
3
CRITERION
1
Use color to show a fourth criterion.
Use size to show a third criterion.

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Duplicate this slide and repeat the
process outlined on slide 15 for each
of your strategic priorities.
Portfolio for Strategic Theme 2
STEP 3
Measure 1 Measure 2 Measure 3
CRITERION 2
Measure
1
Measure
2
Measure
3
CRITERION
1
Use color to show a fourth criterion.
Use size to show a third criterion.

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
STEP 4
Analyze Portfolio

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Once you have your portfolio mapped
out, it’s time to step back and evaluate.
Do you have the right balance between
initiatives?
Prepare for Portfolio Analysis
STEP 4
1. Decide who should be involved in the analysis. Hopefully, the right people
have been working with you on portfolio mapping all along. If not, you’ll need to
bring everyone up to speed. Sharing this slidedoc might help.
2. Determine which factors matter. How will you know if the portfolio is aligned
with your goals for each strategic theme? You might look at elements such as
the amount invested (both financial and human resources) in each theme, the
skills and capabilities required to deliver on the portfolio’s initiatives, the
organizational change required, the aggregate risk within the portfolio, and the
anticipated changes and benefits. These requirements will then be weighed
against the organization’s available budget and human resources, inventory of
skills, and capacity to support change, as well as the desired level of
organizational performance.

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Finally, your portfolio assessment team should come up with recommended actions
based on its analysis. Do your initiatives need to be rebalanced? If so, how? Where
should resources and attention be added? Where are investments falling short of
expectations? Should these investments be redirected?
Portfolio maps are useful tools for analysis, but you’ll want to produce more complete,
narrative reports to communicate the conclusions you’ve reached to important
stakeholders. What’s the story behind the map? Outline your mapping process and
the next steps you and the team are proposing.
Prepare for Portfolio Analysis
STEP 4

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
The work doesn’t
stop there.
This exercise will help make the connection between strategy and execution explicit.
But it’s not a one-time event. Most investors would agree: A financial advisor who analyzes
a client’s investment portfolio only once a year isn’t doing their job.
Quarterly reviews are ideal, although regularity is more important than frequency. If left only
to when busy managers have time, reviews will never happen. Regular project updates
should provide the necessary information for portfolio reviews. Project changes should be
promptly noted and assessed for their impact on the whole portfolio. For instance, if one
project’s risks increase, does the portfolio contain a balance of less-risky projects in case
the project fails?

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HBR Guide + Tools for Managing Strategic Initiatives
© 2020 Harvard Business School Publishing
Give it time.
Developing a portfolio review process doesn’t happen overnight. At first,
initiative portfolio reviews often seem like regular project reviews.
Over time, however, people realize the importance of understanding the entire
business when making decisions about portfolio balance and trade-offs.
Discussions become more substantive, and leaders take a true team
approach to making project portfolio decisions.