Portfolio Planning: A Valuable Strategic Tool
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...
KeywordsBusiness Unit Successful Execution Product Project Product Development Project Portfolio Planning
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