Three out of four businesses are getting their product portfolios wrong. Are you in the happy minority?
Would you be surprised if I told you that a majority of organizations are not doing a very good job managing, prioritizing, and balancing their product portfolios?
Dr. Robert Cooper cited some sobering numbers about this in a recent e-mail. With thanks to Dr. Cooper, I thought it would be interesting to flip his statistics to highlight the minority of companies doing things right:
- 24% of businesses are pursuing the right number of development projects for their available resources (meaning projects can be finished on time).
- 19% of businesses have balanced portfolios (the right mix of small/large and short-term/long-term projects)
- About 10% of businesses have high-value projects in their development pipelines.
- 25% of businesses prioritize projects well.
If you’re among the minority, congratulations. Feel free to skip the rest of this article and start your holiday festivities early.
If you’re in the majority of companies struggling with product portfolio issues, solving them may seem daunting, especially when you have immediate priorities like budgeting on your plate.
You’ve heard me talk about this before. I’m bringing it up again now because the return on investment in fixing these problems is enormous—and there’s no time like the present to get started.
Why not take a moment amidst the holiday celebrations and year-end budgeting to look at your priorities for 2015? I hope you’re in the lucky minority with a smooth-running portfolio management process in place that’s yielding the right number of high-value projects. If not, I urge you to invest time and resources in this essential component of product development in 2015.
Please be in touch if you have any questions. PDC has been working with companies on just these kinds of issues for almost 25 years.
All of us at PDC wish you a peaceful and relaxing holiday season and productive new year.
Sheila Mello and the PDC Staff
P.S. Want to brush up on some product portfolio management ideas? See some articles from our archives.