The ‘Business Strategy Method’, also known as ‘Strategic Buckets’, is an approach to portfolio management that utilises the strategy of the business. The execution of this technique requires the organisation to define several strategic domains, the ‘strategic buckets’, and divide innovation projects amongst them. These domains may include market types, technology areas, product lines, platform types, or competitive needs. Consequently, the approach ensures that the overall strategy of the business is reflected within the project portfolio and that resources are reserved for innovative projects.
Using ‘Business Strategy Method’
Step 1: Based on their budget, the organisation determines an appropriate distribution of funding across strategic domains, aligned to their priorities.
Step 2: Both active and proposed projects are assigned to appropriate categories of strategic domain.
Step 3: Projects within each strategic domain are ranked using predetermined criteria. The position in the ranking of the innovation project and the available budget for that domain decide whether it will be executed.
Step 4: To support the achievement of selected objectives, resource allocation is planned. A frequently utilised solution is the establishment of innovation groups that work full-time on innovation projects.
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