The Cardiac division of a multinational medical device manufacturer managed a broad and diverse R&D portfolio spanning multiple technologies, markets, and time horizons. Following the development of a newly revised business strategy, division leadership recognized that the existing R&D portfolio—and the processes used to fund it—were not fully aligned with the strategic priorities of the business. Without clearer alignment, decision-making was difficult, investment tradeoffs were contentious, and the portfolio risked diluting impact across too many competing initiatives.
We worked closely with senior leaders across R&D and Marketing to translate the business strategy into a clear, actionable framework for portfolio decision-making. The effort began by framing a set of explicit portfolio objectives and securing alignment among cross-functional executive stakeholders on what the R&D portfolio needed to deliver over time. This created a shared foundation for evaluating tradeoffs across projects, programs, and investment horizons.
Building on that alignment, we developed a consistent set of project and program funding criteria designed to balance strategic ambition with disciplined execution. These criteria incorporated projected financial returns, market timing considerations, technical and regulatory risk, and the appropriate mix of near-term, mid-term, and longer-term innovation initiatives. Importantly, the criteria enabled apples-to-apples comparisons across very different types of R&D investments.
To ensure the approach was sustainable, we also designed a forward-looking governance and funding process that embedded these criteria into how decisions were made. The new process clarified roles, reduced subjectivity, and significantly minimized the political friction that often accompanies portfolio funding discussions, while increasing the speed and quality of decision-making.
The resulting R&D portfolio criteria and governance process were successfully implemented across the division. While the full financial impact will unfold over multiple years, executives report that the new approach is already delivering meaningful benefits—bringing clarity to investment decisions, improving cross-functional alignment, and enabling leadership to manage the R&D portfolio with greater confidence and effectiveness. 