It is likely to be among your most critical challenges today: How to allocate finite resources across your portfolios of products, projects, brands, intellectual property, businesses, and other portfolio units to yield the greatest value?
For companies in high-risk, complex industries—such as life sciences, oil & gas, electric utilities, and consumer goods—multiple barriers make it very difficult to find the best resource allocation to the right areas.
Making tough choices with confidence. Crucial portfolio decisions—whether around drug trials, oil & gas exploration, product line extensions, or transmission and distribution infrastructure upgrades—must be made in the face of pervasive uncertainty, constant change, incomplete information, and external factors beyond any one company’s control.
Since alternative strategies are possible for each portfolio unit, choosing the best one requires finding the “efficient frontier”—the set of strategies that yields the best value for a given investment level. Strategic Decisions Group applies advanced methodologies, analytics, and risk assessment tools to the portfolio management process in order to:
- Look at each of the units that make up a portfolio (or, in the case of large and highly complex portfolios, take a sampling of units);
- Assess alternative unit strategies and quantify their risk and value;
- Identify opportunities for extracting incremental value through additional investment;
- Determine when to scale back, suspend or shut down an initiative in order to free up resources better invested elsewhere; and
- Create the optimal mix of strategies for each portfolio to achieve the efficient frontier.
Putting resources to best use. Our portfolio management process can be applied at every level of the enterprise and at every point along the decision continuum, from initial concept to commercial release. The ultimate goal is to help your organization determine how much to invest—and where to invest—to find the highest potential value. Better portfolio strategies can generate greater value for less investment, resulting in more “bang-for-the-buck.”