How SmithKline Beecham. Makes Better Resource -. Allocation Decisions by Paul Sharpe and Tom Keelin. Reprint Harvard Business Review. “How SmithKline Beecham Makes Better Resource Allocation Decisions”. by Paul Sharpe and Tom Keelin. In this paper, former SDG consultant Tom Keelin and. R11 Sharpe & Keelin, , “How SmithKline Beecham Makes Better Resource- Allocation Decisions,” Harvard Business Review, Vol. 76, No. 2, pp.
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How do you make good decisions in a high-risk, technically complex business when the information you need to make those decisions comes largely from the project champions who are competing against one another for resources? In deciaions second phase a common set of information was compiled about each project with the help of consultants and colleagues inside and outside the project.
Portfolio management at GlaxoSmithKline
Open discussion may lead to agreement, enabling a company to beechzm for- ward. In most resource-allocation processes, project advocates develop a single plan of action and present it as the only viable approach.
Next Post Transferring new ideas from research to pract In our case, it was to increase shareholder value. In particular, the traditional advocates in the process — the project teams and their therapy area heads — would have to believe that any new process accurately characterized their projects, includ- ing their technical and commercial risks. Learning from the past: What was the solution? They were unhappy that it had become politicised, as strong-willed project leaders competed for resources for projects that only they fully understood.
In the beecnam, SB had tried a variety of approaches. To order more copies go to www. The patent on its blockbuster dceisions Taga- met was about to expire, and the company was preparing for the im- pending squeeze: Project teams were required–and helped–to create meaningful alternatives to current development plans.
Although the approach looked good on the surface, many people in- volved in it felt in the end that the company was following a kind of pseudoscience that lent an air of so- phistication to fundamentally flawed data assessments and logic.
SharpeKeelin How Smith Kline Beecham Make Decisions RD HBR
Smitjkline was no transparency to the valuation process, no way of knowing whether the quality of thinking behind the valuations was at all consistent. In doing so, SB was able to avoid the premature evaluations that kill both creativity and beefham opportunity to improve decision making. With more projects successfully reaching late-stage development, where the resource requirements are greatest, the demands for funding were growing.
Read the full article: But solving the organizational problem alone is just as bad. In the third phase the portfolio was selected by an independent internal consultancy group who then presented it to the selection panel for review.
How SmithKline Beecham makes better resource-allocation decisions.
Most organizations think of deci. The first was to ask teams to make not one but four proposals: At the same time, we needed a solution that would be credible to the organi- zation. But the impact of brtter, professional visuals that With none at all? Some within the company thought that SB needed a directive, top-down ap- proach. But without a technically sound compass, will it be moving in the right direction?
That is typi- cally what happens as a result of good backroom analysis, however well intentioned and well executed it is. Would an analogy help?
TRIZ the theory of inventive problem solving provides a logical approach to developing creativity I This article is made available compliments of Strategic Decisions Group. Previous Post The other side of innovation.
Further posting, copying or distributing is copyright makez. One involved long, intensive ses- sions of interrogating project cham- pions and, in the end, setting priori- ties by a show of hands. Related Posts Portfolio Management techniques.
A critical company process can beeccham politicized when strong-willed, charismatic project leaders beat out their less competitive colleagues for re- sources.
The selection panel could now concentrate on the portfolio debate, without getting drawn back into valuation issues. Enviado por Felipe flag Denunciar.