A Strong Link to Strategy

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In the Second Edition of Portfolio Management for New Products, published and distributed by Perseus Books, Professors Cooper, Edgett, and Kleinschmidt (all of McMaster University) present a rigorous and practical approach to managing a company's product portfolio as you would a financial portfolio - by investing for maximum long-term growth. Numerous mini-cases illuminate key themes. This is a useful book for practitioners and educators alike. Chapter 5, "Portfolio Management Methods: A Strong Link to Strategy," Used and Performance Results Achieved," is the third of three chapters that examine the methods that leading corporations employ to manage their new product portfolios and allocate their R&D resources. Chapter 5 looks at approaches used to develop a strong link to strategy; topics include: product and technology roadmaps; strategic buckets-a powerful top-down approach; an analysis of bottom-up approaches; and a top-down/bottom-up approach. The authors conclude with a brief discussion on "how much should we spend?"
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