Strategic growth decisions
Organizations often grow as a result of adjusting their portfolios to most efficiently use their resources. In order to manage a portfolio of projects and optimize the project pipeline, companies need a framework that is supported by: 1) an inventory of the current project mix; 2) reporting controls and criteria for evaluating new projects; and 3) a balance of projects within the pipeline that support the organization’s growth goals. Drawing on the methods of venture capitalists, this article discusses some of the ways that new and existing projects can evaluated against predetermined financial and quality benchmarks, and also assessed with regard to their risk and reward potential relative to others projects in the pipeline. A target product profile (TPP) is one tool for evaluating new and ongoing projects. Other smart growth techniques include licensing, partnering, and collaboration.