Innovation Portfolio Management: When Projects Drift From Strategy
Standard innovation portfolio methods yield choices that don't match strategy; management can reclaim strategic control.
Summary
The article addresses a familiar problem: the innovation projects a company funds drift away from its stated strategy. Drawing on feedback from 70 CEOs and CTOs of large organisations, the authors argue the drift comes from how portfolios are assembled with standardised selection methods, which produce choices that do not match strategic priorities, and they propose ways for management to regain strategic control.
Editor's opinion
Innovation portfolios drift from strategy less through poor execution than through the method: standardised selection tools reward what is easy to compare and can quietly override strategic intent. Leadership needs to steer portfolio choices explicitly by strategy rather than leave them to the mechanics of the tool.
Key concepts
innovation portfolio · strategic alignment · project selection · portfolio management