Our Portfolio Prioritization Framework is designed to help you make informed decisions by assessing your portfolio across key dimensions. This framework takes into account five critical inputs:
Market Size: Evaluating the size of the market you operate in.
Market Cycle/Stage: Assessing the current stage or cycle of the market.
Offer Strength: Determining the strength and competitiveness of your offerings.
Ability to Execute: Gauging your organization's capacity to execute effectively.
Competitive Position: Understanding your position in relation to competitors.
The next step is mapping on a Quadrant Chart
The results of this assessment are plotted on a dynamic 4-quadrant chart, where two essential dimensions intersect:
Market Size and Demand (Y-Axis): This dimension assesses the scale and demand within your target markets.
Ability to Execute (X-Axis): This dimension measures your organization's capability to bring strategies to fruition.
Understanding the Quadrants
High-High Quadrant (Top Right): This is the "Sweet Spot." Portfolio elements in this quadrant exhibit both a significant market demand/size and a strong ability to execute. Pursuing opportunities in this quadrant is the highest priority.
High "Ability to Execute," Lower Market/Demand Quadrant: Elements falling here are often considered "Cash Cow" operations. While your organization can execute well, market demand may be limited. These areas are candidates for investment with a capped budget.
High Market Demand/Size, Limited "Ability to Execute" Quadrant: Elements in this quadrant represent exciting opportunities with substantial market potential. However, your organization may face limitations in execution. Consider exploring partnerships or mergers and acquisitions (M&A) to capitalize on these opportunities.
Low Market Demand/Potential, Limited "Ability to Execute" Quadrant: For elements residing in this quadrant, it's clear that an exit strategy is required. These portfolio areas lack both market demand and the ability to execute effectively.
Output: Streamlined Portfolio with Clear Execution
By applying this framework, you'll achieve a simplified and streamlined portfolio with a well-defined execution plan. It empowers you to make strategic decisions that align with your organization's strengths and market opportunities, ultimately driving success and growth.