Why Do Companies Employ Misfit Product Portfolio Management Approaches?
Companies place high hopes on PPM but are often disappointed. PPM is seen as the link between strategy and execution – it should set the direction for the company’s R&D efforts. However, companies frequently end up with hodgepodge portfolios, gaps in their pipelines, too many projects, inadequate budgets for plans, biased or delayed decision, and wasted effort. Consequences of these for the business include inappropriate “go” or “kill” decisions involving millions of dollars, longer time to market, fewer chances for big wins, increased costs and more failures – all of which destroy shareholder value.
S&A conducted a global study across Biopharma companies of all sizes to better understand this issue and what companies can do to prevent or correct it. The attached Executive Summary of this study provides an overview of common misfit PPM approaches, the circumstances that lead to these approaches and what companies can do.
Contact us for the full study results, a self-assessment tool, or consultation regarding your company’s PPM approach.