Portfolio allocation is the most important long-term decision to generate results. The UNITE approach to portfolio allocation gives you a straightforward best practice for allocating your resources across the 3 Horizons of Growth.
The package
The case
The greater risk, the greater the reward, but a smart business doesn’t put all it’s eggs in one basket. The UNITE approach to Portfolio Allocation offers a straightforward approach to resource allocation, who is in charge of each type of initiative, and the goal of each type of transformation. This will allow you to create long-term strategies for growth and implement them effectively.
The mechanics
Radical innovation has by far the biggest potential, yet it also carries the highest risk. We recommend you allocate around 10% of your portfolio to (radical) innovation as a default. A healthy 20% should be dedicated to making a step-change transformation to your existing business in Horizon 2 to adapt to changing technology and market conditions. To devote such significant resources to innovation and transformation, you must carefully evaluate what tofocus on and where to cut costs. The Strategy-Execution framework we provide will be quintessential in that context. To run such a portfolio allocation, you need to have the right kindof organization. By far most resources – around 70% – should be dedicated to optimizing your core and differentiating areas in Horizon 1. This suggested default allocation of resources must obviously be adapted to your situation and industry – please read the related commentary in our book to deep-dive. Consider the ambidextrous org-chart for that. In brief, ensure you separate the existing business from the new business you are hoping to build through innovation.
The purpose
What is the goal of the model?
A balanced portfolio. Like any portfolio, your company’s portfolio should represent a good balance between executing and improving the existing business, transforming it, and entering new grounds. You also want to balance your risks – both short- and long-term. Use the 3 Horizons and the portfolio allocation model we suggested to keep your growth engine running without burning out.
What people say
Richard Cobie, CEOReviewed on 15 July 2022
★★★★★Recommended as a purchase, worth the investment!
I completely re-evaluated the role of innovation in business growth: before reading this book I have to admit I thought it only entailed product new features and technologies enhancements, while now I see it has everything to do with meeting customer needs and uncovering a business USP, which automatically translates in sales! Could not recommend it more!
Janette Lavalier, Innovation Professor and ConsultantReviewed on 15 July 2022
★★★★★Recommended as a purchase, worth the investment!
Unlike most business innovation books I read over the last years (and even decades) when reading How to create innovation you immediately understand the authors have been there, innovating and transforming some of the world’s most amazing brands. Great work!
Karl Meckel, Change Development ManagerReviewed on 18 July 2022
★★★★★Recommended as a purchase, worth the investment!
Not only this book offers the most comprehensive innovation and business change overview but it really helps you take the next step, driving you step by step from theory to practice (also with super useful background notes and driving questions)
Franz Hellstrom, Head of CultureReviewed on 2 Aug 2022
★★★★★Recommended as a purchase, worth the investment!
I really enjoyed the whole book, but mostly the culture chapter, mainly because I always failed to acknowledge its major role in favouring or inhibiting business growth. Loved the graphics that helped connect all the dots in a visually appealing (and way easier) way.
Satoru Fukuda, Chief Strategy OfficerReviewed on 13 Aug 2022
★★★★★Recommended as a purchase, worth the investment!
We’been willing to innovate our business for some years now, but then we always got stuck before we even started, because basically we had no idea where to start…This book helped us do just that: find the right starting point with guiding questions and an incredibly comprehensive innovation overview.
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In practice
We successfully apply the models we created in our services
We support organizations to grow their innovation capability globally.
Learn moreWe will help you better understand your customer and create more enganging product and service experiences.
Learn moreThe key is bridging the infamous strategy-execution gap. We enable organizations to execute a transformation successfully.
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Stefan F. DieffenbacherFounder & Managing Director of Digital Leadership
