The number of ideas at innovative companies usually exceeds the amount of available human or
material recourses, this include ideas for development of new products. Since they are not able to do
everything they want to do they have to choose between ideas to develop new products. This includes
the decision on when to start, stop or kill a project as well as the thought process of prioritizing between
ongoing and potential projects.
Project Portfolio Management (PPM) is an organizational process, with the purpose of systematically
organizing and running the activities that aim to evaluate, select and prioritize ideas and projects for
developing new products. PPM include four major goals to be fulfilled; Maximizing Value of the
Portfolio, Achieving a Balanced Portfolio, Achieving a Strategic Alignment and Running the Right
Number of Projects.
The purpose of the thesis was to develop a more visual and formal PPM process for the early stages in
product development in one department at St Jude Medical AB, Sweden.
The thesis was conducted by following a methodology known as Process Modules. The methodology is
an approach for developing a PPM process that fits a specific company. The methodology is not a
defined work procedure for decision making but rather a systematic method for developing one.
The thesis was conducted by working closely with a defined Work Group consisting of six decision
makers at St Jude Medical AB, Sweden. Initially, the authors managed to map the current PPM process
at the department in focus which showed to be rather informal and not using formal criteria. Together
with the Work Group, the process was formalized and visualized. During a workshop, a set of selection
criteria were identified and defined, and so was a set of balance criteria. Finally, the new PPM process
was defined and visualized by the authors.
A number of overall important reflections were concluded by the authors after conducting this master
thesis. The main reflection is the fact that every PPM process is, and needs to be, company specific.
Further on, when developing a PPM process it is of great importance to involve management and
involved staff in the actual procedure, in order to increase the understanding of the final process.