The Palgrave Encyclopedia of Strategic Management

Living Edition
| Editors: Mie Augier, David J. Teece

Portfolio Planning: A Valuable Strategic Tool

  • Lance R. Newey
  • Shaker A. Zahra
Living reference work entry
DOI: https://doi.org/10.1057/978-1-349-94848-2_504-1

Definition

Portfolio planning is the decision process that translates strategies into investment decisions in the form of projects that will deliver the short-, medium- and long-term performance of a company’s strategic goals.

What Is It?

The successful execution of a company’s strategy requires transforming plans into concrete action by selecting different activities and allocating resources for them (Bower and Gilbert 2005). Portfolio planning is the decision process that translates strategies into investment decisions in the form of projects that will deliver the short-, medium- and long-term performance of a company’s strategic goals (Cooper et al. 2001; Patterson 2008). Typically, there are two levels of portfolio planning: strategic and tactical. The strategic level involves deciding the relative emphasis between investments across short-, medium- and long-term time horizons. The tactical level then determines the specific new business/product projects in which the company...

Keywords

Business Unit Successful Execution Product Project Product Development Project Portfolio Planning 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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References

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  6. Cooper, R.G., S.J. Edgett, and E.J. Kleinschmidt. 2001. Portfolio management for new products, 2nd ed. New York: Basic Books.Google Scholar
  7. Newey, L.R., and S.A. Zahra. 2009. The evolving firm: How dynamic and operating capabilities interact to enable entrepreneurship. British Journal of Management 20: S81–S100.CrossRefGoogle Scholar
  8. Patterson, M.L. 2008. New product portfolio planning and management. In The PDMA handbook of new product development, ed. K. Kahn. Hoboken: Wiley.Google Scholar

Copyright information

© The Author(s) 2016

Authors and Affiliations

  1. 1.UQ Business SchoolSt LuciaAustralia
  2. 2.University of MinnesotaMinneapolisUSA