The
portfolio management process can broadly be divided into four key areas.
Strategic objectives are set with respect to investors, customers and
competitors. Internal resources are allocated with respect to strategic
requirements and likely returns on investment. Where the return on investment
is greatest, and where strategic objectives are not compromised, additional
resources are acquired through external transactions and partnerships.
Portfolio management tools, such as decision analysis, provide the central hub
connecting the three key decision-making elements in the portfolio management
process.
Key
elements of continuous portfolio management process
Effective portfolio
management processes support integrated decision-making across the
organization. At the corporate level senior managers are better able to align
their portfolios and resources with corporate strategy and the expectations of
shareholders. R&D executives are able to make balanced investments across
projects in different therapy areas and development stages subject to their
risk and return profiles.
Similarly, marketing executives are able to effectively balance marketing and
sales force resources across marketed products and lifecycle management
commitments. Successful portfolio management is measured by the additional
value generated for shareholders through more informed and integrated
decision-making across the organization as a whole.
Integrated
decision-making through portfolio management
Independent Strategic Decision
Analysis 
