Value-Driven Portfolio Management

The underlying objective of the case study

The underlying objective of the case study is to provide methods that synchronize the project decisions with corporate strategies as well as the defined business objectives. The research aims at giving more focus on the drug development processes as opposed to laying a lot of emphasis on the effectiveness of the drugs (Bode-greue & Nickisch, 2008). Further, the study describes how organizations maximize research and development through proper resource allocation. More importantly, the objectives should be more specific to enable the researchers as well as the decision makers to come up with strategic projects and programs of high value. The paper advocates for quantitative risk and financial analysis of both corporate and individual portfolios to boost the risk and value structure of specific and corporate projects.

The stakeholders targeted in the case study

The stakeholders targeted in the case study include decision makers and R&D managers within a pharmaceutical set up. The organization-wide portfolio management enables the management to ascertain a wide array of risks associated with specific projects and overall knowledge of improving the value and the risk structures of the project. Moreover, the cross-functional feature of the technique allows for the configuration of individual project’s choices with the overall corporate objective as well-defined in the operational goals. What is more critical, portfolio management sets aside tools that enable resource allocation in regards to the nature and purposes of the program.

Project management

Project management refers to the overall management of various projects throughout the organization regardless of the level but focusing on the objectives of the project. Through using this method, plans need to be adequately detailed, consistent, interdisciplinary in structure, embedded in the practical operational procedures, and includes quantifiable financial aspects. Portfolio management on the other hand, accounts and coordinates operations to ensure the program benefits the affected stakeholders. Portfolio management achieves its goals by focusing on the program strategies by evaluating the methodology, metrics, monitoring, and prioritizing processes utilized (Burke, 2013). Also, the management tool establishes efficient project management and is predominantly used to execute portfolio decision.

Tools for project and portfolio management

Tools such as target product profile (TPP), timeline budget management, stage gate decision procedure, and sale prediction are used to align value driven portfolios with the overall strategy of the organization. Sales forecast together with TPP and developmental plans are essential in the process of evaluating and prioritizing projects to ensure they align with the overall corporate objectives. In as much as project management and portfolio management differ in scope and purposes, the management techniques utilize similar tools in the course of operations. Portfolio management is critical in the research process because of its specificity in regards to the objective and procedure (Burke, 2013). Program management, on the other hand, is general and provides an exploratory change in the right direction hence giving overall vision and focus on the objectives of the program.

Value-driven portfolio management

Value-driven portfolio management enables alignment of project's decisions with corporate goals by ensuring development, approving, and endorsement conducted with the consent of every decision maker in the entire organization. As such, the managers guarantee that adequate resource allocation to meet the overall objective of the company (Bode-greue & Nickisch, 2008). A project manager' job entails identifying programs that have high value and fits with the overall strategic aim of the organization. In summary, a company attains business efficiency and effectiveness when there exists an explicit collaboration between portfolio management process, strategic business unit, and the project management department.

References

Bode-greuel, K., & Nickisch, K. J. (2008). Value-driven project and portfolio management in the pharmaceutical industry: Drug discovery versus drug development - commonalities and differences in portfolio management practice. Journal of Commercial Biotechnology, 14(4), 307-325. doi:http://dx.doi.org.ezproxy.snhu.edu/10.1057/jcb.2008.6

Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.