Portfolio Strategy and Management
- R&D Portfolio: A life science client’s R&D spending was high compared to the industry and they wanted to understand whether and how to change that fact. We helped them develop an approach to quantitatively valuing and assessing the risks of their projects. We also helped them to build a process for treating those projects as a portfolio. Most projects found development strategies that were 30-200% more valuable than their momentum plans, while a few unpromising projects were cancelled. The projected return on the client’s R&D investment rose dramatically.
- Business Unit Turnaround: A major services company had a division that was “bleeding red ink.” Their customers were in the midst of a downturn and had cut back on our client’s services. The alternatives the client had considered were problematic. They either involved large losses for the foreseeable future or making deep cuts that could leave them poorly positioned to grow when the industry turned around. We were able to find some key areas where spending by the unit’s customers was countercyclical. Moreover, we were able to identify an implementation plan that built capability in those areas by leveraging existing resources, and in a way that would not cannibalize the client’s ability to take advantage of an eventual industry upswing. Within 15 months, the business unit’s bottom line was in the black.
- Business Portfolio Strategy: A mid-sized software and hardware company’s stock price was selling near its 12-month low and they asked us for help in understanding which of their businesses they should keep and which, if any, should be sold. We identified improved strategies for each business and, based on the improved strategies, recommended which to keep and which to sell. The revamped company sold within the year for 30% above its 12-month high.
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