What can then be said about how such a visualization tool materializes? Which decision types are helped through improved visualization?
- Set a goal of killing at least 10% of all projects each year. With an average running time of 2 years that means that 20% of all projects get killed. The number has to be adjusted for actual project duration.
- Decide on which metrics to measure for killing decisions. Is it time ahead of competitors? Is it potential revenue? Is it time-to-market combined with potential value. Make that number visible and make sure it gets updated regularly.
- Set a goal of only running 20% of your projects at any given set of time. If average number of projects is 2 years that means 10% running in parallel. Measure and visualize project duration, time-to-market ((time left * market value)/resources ($, people, etc) and alignment with current strategy.
- Define share of projects on different levels - extension, incremental or radical. Kill projects from each category to keep the balance and loose in the long run.
These are just a few examples of the importance of measuring and visualizing the performance of the innovation portfolio. Which are your favorite way of illustrating innovation portfolio status?
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