While most R&D organizations use project prioritization (scoring or ranking) techniques for portfolio selection, these techniques often fall short of capturing the highest possible strategic and financial portfolio value.
The Efficient Frontier describes the selection of investments that maximizes portfolio value within a given risk tolerance. You can apply the Efficient Frontier technique to an R&D organization to find the optimal combination of projects that maximizes portfolio value while making the most efficient use of your resources, surpassing the results of traditional project prioritization techniques.
Over the past nine years, Dr. Richard Bayney has worked with several clients across pharma and biotech, medical devices, chemicals, consumer packaged goods, and agriculture who have cited significant increases in top-line sales and bottom-line growth when applying portfolio optimization techniques over conventional project prioritization methodologies.
In this webinar, Dr. Bayney demonstrates:
- The fundamental differences between project prioritization and portfolio optimization
- The concept of the economic Efficient Frontier when applied to R&D organizations
- The challenges of implementing portfolio optimization techniques within a successful culture resistant to change