Insight

BCG - Taking a Portfolio Approach to Growth Investments

One of the most powerful tools available to CEOs and CFOs to drive growth is their company’s approach to capital allocation across its portfolio of businesses. BCG research and client experience suggest that capital allocation at highly successful companies is characterized by two distinctive practices.

 

A Differentiated Strategy

First, these companies take a highly differentiated approach to prioriti- zing growth among business units in the corporate portfolio.

An End-to-End Process

Second, they translate strategy into action by linking these strategic priorities to capital allocation, financial plans, and specific growth initiatives. They also actively manage the corporate investment portfolio from the top to make sure that initiatives stay on track and to maximize flexibility.

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