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Robert Porter Lynch’s featured article in the European Bus. Review
See 2012 Workshops

Strategic Portfolio Management

“How do we optimize Strategic Portfolio Management and use it as a Competitive Weapon?”

Strategic Portfolio Management has several compelling objectives

  • Develop & Manage our Value Network (Web/Eco-System)
      • Supply
      • R&D
      • Manufacturing
      • Strategic Outsourcing
  • Provide a Dynamic Picture of Strategic Evolution
      • Value Migration
      • Strategic Scenario Mapping
      • Network Evolution
      • Life Cycle Management
  • Enable us to Lead our Market Spaces using alliances
      • Maintain Competitive Advantages
      • Establish New Market Beachheads
      • Funnel Innovation from our Supply Chain
      • Defend Critical Positions & Deprive Competitors of Best Partners
  • Support Business Unit Alliances in our Market Space
      • Coordination across/within Business Units
      • Systems Optimization & Performance Monitoring
      • Enhance Business Development & Alliance Governance
      • Allocation of Resources

Symptoms of the Need
Companies Know they Need Portfolio Management When:

  • Portfolio of Alliances Is Growing,
    • But Things Are Starting to Get Out of Hand.
      • Wide Variety of Alliances Are Starting to Conflict With Each Other
      • Business Units Are Sometimes Constructing Alliances That Are Working at Cross Purposes.
  • Strategic Value of Alliances Is Becoming More Important, but Their Performance Is Sporadic
  • Management of Multiple Alliances Is Becoming a Head-ache
    • Not Enough People Seem to Have the Skills and Capabilities to Make the Alliances Work Well.
  • Network Is Expanding As Alliances Become an Extension of Your Company
    • But There Does Not Seem to Be a Good Way to Share the Learning From Any of the Ventures Through Out the Organization.

Problems Can Be Great
When Companies Wait Too Long to Coordinate Their Portfolios:

  • Business Unit Conflict
    • Alliances Conflict in the Market Space
    • Integrated Customer Solutions Not Designed or Delivered
  • Critical Business Shifts are Missed & Competitors Out-Position Us
    • Lost Opportunities
      • – Missed Chances
      • – Timing Off
    • Poor Execution
    • Second-Rate Partners
  • Confusion
    • Customers Not Supported
    • Suppliers Misaligned
    • Partner Conflict and Ambiguity
    • Strategic Alliance Managers Unsure
  • Value Chain Fragmentation or Degeneration
    • Cycle Times Too Long
    • Slow Delivery
    • Poor Integration of Products, Services, Solutions, Technologies, etc.

Portfolio Management
Should have a Framework that is workable for users

  • Process Framework must be:
    • Strategic & Targeted
    • Map Opportunities into Customer/Market-Focused Categories
      • – Quickly drive high-level alignment
      • – Linked to product and customer strategies
      • – Caution regarding technology-focused or geographic-focused categories
  • Structured Process
    • Disciplined
      • – But also Simple & Easy to Understand & Use
      • – Not over-engineered
    • Must Reflect Corporate & Business Unit Alliance Strategy
      • – Allows Business Unit Exec. Sponsors to execute business development plans within pre-defined parameters
      • – New Alliance Ventures must
        • support the Corporate and Business Unit strategies
        • Fit into the portfolio in a symbiotic manner
    • Agreed Upon & Used across all Business Units
  • Standardized Tools for Category & Partner Analysis
      • – Tools will Make Assessments Easier
        • Guidance on Decision Making for Opportunity Pursuit
        • Guidance on Alliance Transformation
        • Guidance on Competitive Strategy

Four Dynamics
should be Monitored to understand the Driving Forces in Market Space

  • Value Migration in the Market Space
  • Competitive Scenario Mapping
  • Network Evolution & our Position in the Network relative to the Customer
  • Life Cycle Management of each Alliance itself


    • Priorities
    • Leverage Points
    • Simple and Powerful Interventions

Strategy for Innovation

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