Achieve a balanced innovation portfolio

- A study from Harvard Business Review … found that when companies allocate around 70% … of their innovation activity to low-risk projects, … 20% to moderately risky projects, … and 10% to high-risk projects … they significantly out perform the competition. … The likely reason why is a perfectly balanced blend … of innovation projects in their portfolio. … Portfolio balancing is a technique … used by the worlds best innovators … to analyze the long and short risk of innovation projects … in their pipeline. … No innovation can afford to risk their business … on one big idea. … Likewise, developing a bunch of insignificant projects … won't deliver a big win either. … To help people at all kinds of companies … evaluate the health of their innovation pipeline … we use a tool called portfolio balancing. … It involves the matrix method, … and for illustration let's use the markets … versus products matrix here. … Now in the lower left quadrant … we've got existing product for an existing market. …