Where do innovation portfolio managers report?
Organizing portfolio management
A common question in my work on innovation portfolio management is the so-called governance question:
Where should the portfolio manager(s) report in the organization?
Some of the more common options include: reporting in the R&D function, in marketing or product management, or as a separate project and portfolio office. The question which is the best solution remains, since good portfolio management is inherently a cross-functional decision process based on cross-functional data and analysis. Since different organizations differ in their goals, operational processes, and competences, there does not seem to be one right answer or best practice.
In short: “it depends”.
Let’s have a look at the main pro’s and con’s of the different options I have seen working in a wide variety of implementations.
Portfolio management governance options
|Where to organize?||Pro||Con|
|As a separate office:||
What is the best solution for you?
From the above options, I believe it is best to jointly decide how the portfolio decision-making is best supported. Which option best links all the information available, and turns portfolio management in a joint problem-solving or optimization process, instead of a turf war towards compromises.
I would like to hear your practical experience about pro’s and con’s if you are in one of these settings. Even better, let me know if your organization implemented a different approach.