Healthcare Manufacturing
Client challenge:
A division of one of
the world’s leading health care
companies had a portfolio of new
products that reflected the
different needs of various product
line heads. Senior management
was frustrated. It felt it was
making investment decisions as a
reaction to the requests of
competing product line managers.
CAP consulting
service:
We worked with the senior team to
identify objective portfolio
criteria that captured the
division’s overall growth strategy,
including a risk/attractiveness
metric. After mapping development
projects against these criteria we
coached development managers on how
to present their resource requests
to senior management in the context
of the business criteria.
Discovery and outcome :
Though product line managers briefly
resisted the more rigorous
decision-making process, the senior
team experienced much greater
control over development funds.
Over the subsequent two years, the
return on investment in product
development improved and, when
surveyed, project managers responded
that the new process had helped
increase their personal
productivity.
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Materials
Manufacturing
Client Challenge:
A materials manufacturing
company developed a new coating
technology that dramatically
improved the effectiveness and
longevity of industrial tools, dies
and molds. The technology was
applicable to all types of
manufacturing processes and the
company found itself struggling to
fund a plethora of new product
projects.
CAP Consulting
Service:
We developed business criteria to
screen the portfolio of
opportunities. Following an
assessment of the opportunities
against these criteria, we
facilitated a senior team review to
confirm the relative attractiveness
of the portfolio of opportunities.
The final review included a
recommendation on how the company
could participate in the
commercialization of the strongest
candidates with minimal financial
risk.
Discovery and Outcome:
The company adopted a flexible
execution model. They licensed out
the technology for minor
applications and established
partnership subsidiaries for high
potential segments. This bi-modal
strategy of licensing and
partner-funded development allowed
the company to leverage the full
potential of the new technology
without excessive investment and
risk.
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Telecommunications
Carrier
Client Challenge:
A major telecom provider in
Australia had a new American CEO and
several senior managers who were new
to their positions. The company was
tackling a wide range of initiatives
to accelerate growth and the CEO
wanted his team aligned on portfolio
and investment priorities.
CAP Consulting
Service:
We first coached product development
groups to prepare consistent
business cases including a clear
definition of the concept,
confirmation of its fit within the
company’s growth criteria and an
explicit discussion of its risk. We
then moved to the other side of the
table and coached the senior team on
best practices for portfolio
management. Finally, we facilitated
a series of review meetings at which
the senior team heard proposals for
new products and judged their
quality and appropriate investment
levels against portfolio criteria
including relative risk.
Discovery and outcome:
By the time the CEO
returned to the U.S. two years
later, he considered the company’s
growth management process best in
class and, equally important, felt
the culture and confidence of the
company’s development effort had
been transformed.
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