Corporate Portfolio Management

Create value greater than the sum of the parts

Corporate portfolio management can add 5% to 10% or more to the Return on Capital of the corporation and free up resources for growth investments by leveraging synergies across the portfolio. However, that doesn’t always happen. Multi-business companies face complex challenges in managing their corporate portfolio: they silo SBU planning, sub-optimize resource allocation, disconnect R&D planning, or miss potential market opportunities.

Are you experiencing these issues?

Business units
not aligned to
corporate strategy

Primary focus on
short-term financial
results

Lack of long-term
corporate direction
and objectives

Strategic investments
not gaining traction

Limited growth
opportunites

Low financial
performance
(ROCE, ROE, ROS)

These symptoms arise when corporations set independent SBU plans or get caught in a cycle where long-term planning and investment become continuously sacrificed for short-term financial goals. Whichever the case, the company must reverse the process.

Enter password to view our approach.

Key Figures

10-20

Ave. number of strategic
business units in the portfolio

5-10%

Ave. ROCE improvement for
the corporate portfolio

3-5

Range of forward-looking
years of the corporate
portfolio strategy

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