Portfolio Measurement and Management
A portfolio is defined as the totality of something, such as securities holdings or an artist’s work. In alliance management, it implies managing multiple alliances as a whole, in addition to managing individual alliances.
Managing the alliance portfolio is a key responsibility of the Chief Alliance Officer. Measuring across the portfolio provides a consistent basis to compare like alliances so that the portfolio may be managed. Managing across a portfolio allows company leadership to ensure that its alliance partners, in totality, are providing the desired strategic and financial benefit.
The main responsibilities of managing a portfolio include:
- Assessing the strategic contribution of each alliance within the portfolio and of the portfolio overall
- Leveraging value-creating opportunities within the portfolio
- Allocating alliance management resources among the various individual alliances
- Considering the portfolio implications of new partners
- Identifying systemic management and organizational challenges that are preventing individual alliances from achieving intended value
The Rhythm of Business has developed a simple five-step process, linked directly to the core responsibilities of an alliance manager, to measure and analyze a portfolio. This method has been adopted by many companies across industries and is described in the 2012 edition of the ASAP Handbook of Alliance Management.
Access this article “Measuring and Managing the Alliance Portfolio” to learn this simple but powerful approach to strategically managing your portfolio.