Organizing for sustained business performance
A global medtech company wanted to unify its product portfolio and associated governance processes to ensure sustained business performance. To achieve this, the company asked Arthur D. Little to support and manage a change process and create a corporate product portfolio strategy including related planning processes and governance structures.
Setting a product portfolio strategy and governance structure
Arthur D. Little in close collaboration with the client created a market segmentation model that accurately characterized the strategic opportunities for the client’s product portfolio. By combining a market perspective with a product perspective, the model encompassed the client’s current segments as well as segments with potential for future growth.
After assessing aspects such as commercial potential, attractiveness, and competitive situation per segment, Arthur D. Little assisted the client in developing a strategy for product portfolio optimization. The strategy defined the way forward in terms of strategic product structure, internal governance structures, and how to compete (i.e. where, how, when, and against whom to compete).
In the final stage, Arthur D. Little supported the client in the change process in terms of portfolio strategy implementation, setting new governance structures, and driving change management activities to create organizational buy-in.
The client strengthened its competitive position
By developing and implementing a new portfolio strategy and an improved governance structure, Arthur D. Little helped the client strengthen its competitive position while ensuring sustained business performance:
- The new portfolio strategy reduced waste and risk by establishing concept exploration, simplified planning for R&D, and creating a balance between business areas
- The improved governance structures created clarity in terms of roles, responsibilities and decision mandates, which increased the organizational efficiency and effectiveness