Gaining Control of Innovation: How Portfolio Management Translates Strategy into Results

The world is changing at a rapid pace. Themes such as sustainability, digitalization, and an aging population make it clear that organizations must continuously evolve. Professionals should, of course, be able to keep doing what they do best – the daily work, or the “run.” But focusing solely on the run is not enough. Without renewal (“change”), long-term survival is at risk.

Yet many organizations lack insight into the balance between run and change. Even keeping track of all ongoing initiatives can be a challenge. This lack of oversight makes it difficult to determine what truly contributes to strategic goals or to the organization’s resilience.

Portfolio management helps. It provides structure, direction, and transparency, enabling organizations to make better strategic choices and steer innovation more effectively. Unfortunately, this approach is still underutilized or underestimated in many organizations.

Many organizations struggle to maintain control and oversight of all their projects. Amid a tangle of well-intentioned initiatives, it is often unclear which ones are truly important and how they contribute to strategy.

In times of scarcity, it is crucial to focus time and capacity on what really matters. At the same time, many organizations face limited delivery power. Projects often take (too) long, leading to declining motivation and engagement. Lack of steering and delays can cause projects to stall or even fail.

1. Clear strategy and annual recalibration
An effective portfolio approach starts with a clear strategy, which should be reviewed annually to ensure that goals and priorities remain aligned with current developments.

That strategy must then be translated into departmental objectives. The clearer the direction, the better it can be managed. Departments break down the strategic goals into measurable initiatives, making visible how each contributes to the overall ambition.

These concrete goals and plans form the foundation of the portfolio of programs and projects. Scarcity of resources – such as time, budget, and people – makes careful prioritization essential.

2. Clear definition: what counts as a project?
For a strong portfolio, it is important to clearly define what constitutes a project. Characteristics such as goal-oriented, multidisciplinary, unique, and time-bound are key.

Based on these criteria, initiatives can be assessed: should this be part of the project portfolio or remain in the line organization? That choice also determines how progress is monitored – via the portfolio board or regular business reviews.

A sharp project definition creates clarity within the organization: which process applies to which type of initiative?

3. A well-composed portfolio board
Prioritization is not done alone. A multidisciplinary portfolio board – with representatives from different departments – jointly decides which initiatives move forward. This happens at fixed intervals, for example monthly or quarterly.

This collaboration ensures broad consideration between run and change initiatives across the organization. In this way, the strategy is implemented effectively and in balance.

4. Clear selection criteria
This is where it becomes concrete: the portfolio board prioritizes based on established criteria. These are developed in consultation with the organization and may include:

• Contribution to strategic KPIs
• Compliance requirements
• Expected ROI
• Required capacity
• Time horizon

This ensures resources are focused on initiatives that deliver the most value at that moment.

5. Insight into ‘run’ and ‘change’
Control over innovation starts with a clear division between run and change activities. Run ensures today’s continuity; change ensures tomorrow’s relevance.

Within the portfolio, initiatives such as digitalization or sustainability fall under change. Essential replacement or maintenance falls under run. A good portfolio also includes a mix of short-, mid-, and long-term projects.

By making clear choices in advance about how resources are allocated, organizations gain clarity and peace of mind.

6. Clear governance and ownership
Finally, portfolio management must be well embedded in the existing organization. This includes appointing ownership for project evaluation and monitoring, and clear procedures for submitting new initiatives. This prevents uncontrolled growth.

Project and program managers are trained to work effectively within this structure. In this way, portfolio management becomes not an extra task, but a reinforcement of existing practices.

Would you like to implement this approach in your organization? We are happy to think along with you. Below you will find our methodology. Interested? Feel free to contact Iris Lodder (Manager Healthcare) or Bart Mathijssen (Manager Strategy). We would be glad to start the conversation with you.