Working with executive teams in companies in all industries worldwide, we often encounter the desire to make Innovation Investment Decisions relevant to their business strategy and goals. This requires the right information at the right time with context. Innovation Expert Bernd Becker discusses the 5 key aspects of Portfolio Management to maximize Portfolio value and ensure execution of the Innovation Strategy. View the recording at https://www.stage-gate.com/blog/portfolio_metrics-3/

1. Private and Confidential
© 2020 Stage-Gate International
Portfolio Metrics for
Better Innovation
Decisions
Bernd Becker
Innovation Expert
bernd.becker@stage-gate.comDisclaimer: This webinar will be recorded and made publicly available.
No participant names or companies will be included in the recording.
Stage-Gate® is a registered trademark of Stage-Gate Inc. © Stage-Gate International www.stage-gate.com
FREE WEBINAR SERIES

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© 2020 Stage-Gate International
Business
Strategy
Portfolio
Management
Stage-Gate® Process
Leadership, Culture, Skills
and Project Team Management
Innovation
Strategy
The Stage-Gate® Framework
WHAT WE WANT
WHAT WE GET

3. Private and Confidential
© 2020 Stage-Gate International
Business Leadership questions
Resource Allocation
Balance of Projects
Right Number of Projects
Sufficiency to reach goals
Link to Business Strategy
Maximize Value of Portfolio
Long/Short Term – Risk/Reward
Resource demand vs Availability
Achieve Sales/Profit Goals
Spending reflects Strategy

4. Private and Confidential
© 2020 Stage-Gate International
….asis
….desired
Gap
Analysis
Home Run
Quick Win
Long Term
Success
Undesirable
Home Run
Quick Win
Long Term
Success
Undesirable
Resource Allocation to Maximize Value
Potential Actions:
 Stop undesirable projects
 Move “Quick Win” and “Home Run” Ideas forward

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© 2020 Stage-Gate International
Gap
Analysis
Risk-Reward Long Term vs Short Term Risk-Reward Long Term vs Short Term
Balance of Projects – Project Types - Long/Short Term – Risk/Reward
….asis
….desired
Potential Actions:
 Align Gatekeeper decisions to shift portfolio

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© 2020 Stage-Gate International
Gap
Analysis
Right Number of Projects – Resource Demand vs Availability
….asis
….desired
Potential Actions:
 Adjust number of Projects to resources available
 Allocate resources to higher value projects

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Gap
Analysis
Sufficiency – Achieve Sales/Profit Goals
Potential Actions:
 Focus on higher value projects via
Gatekeeper decisions
 Strengten Front-End of process
for higher value Ideas

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Gap
Analysis
Link to Business Strategy….asis
….desired
Potential Actions:
 Ensure Gatekeeper decision are aligned to Strategy
 Reallocate resources to desired projects
High Risk Bets
No Bets
Good Bets
Conservative
Bets
High Risk Bets
No Bets
Good Bets
Conservative
Bets

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© 2020 Stage-Gate International
Metrics available through Stage-Gate® Process
Business-Level
 Vitality Index
 R&D Growth Ratio
 Innovation
Profitability
 Success rate
 Innovation Cadence
 Incremental
Revenue
 Return on
Investment
Project-Level
 Expected Commercial
Value
 Productivity Index
 Forecast Degradation
 Cycle Time
 Development Cycle Time
 Time to profit
 Performance to schedule
 Performance to budget
9
Process-Level
 Project Code Name
 Project ID
 Program
 Project Leader, Owner, Sponsor
 Project Start Date
 Innovation Type
 Stage #
 Status (Go, Kill, Hold, Recycle)
 Gate Dates
 Launch Date
 Committed FTE’s by Function
 Available FTE’s by Function
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Portfolio Placemat
Strategic
Tactical
Portfolio Buckets Risk-Reward
Prioritization View Pipeline Funnel Projects Status
Vitality Index
10

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Time for your Questions

12. Private and Confidential
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Resource & Portfolio Management Tool
Analysis of Portfolio and Placemat Development
Align Portfolio to Innovation Strategy
Services