Improving multi-project management in two product development organizations

We describe how two product development organizations have started improving their multi-project management. A typical problem in new product development (NPD) organizations is that too many projects are launched. NPD projects can range from advanced research to enhancements to existing product lines. Each type of project should have its own role and add its own contribution to the strategic mission and competitiveness of the company. The product strategy of a company should serve as the guideline for planning the right sequence, number, and mix of projects. Together with the product strategy, portfolio management should provide the basis for fund allocation and prioritization between the different types of projects. With a project classification system, the various needs of the different project types can be considered.