In healthcare, adopting a strategy from financial portfolio management offers opportunities to increase both ROI and innovation efficacy. Just as financial experts balance investments to maximize returns and minimize risks, healthcare leaders can apply a portfolio mindset to maintain steady incremental improvements and strategically bet on future innovations.
The Essence of Portfolio Thinking in Healthcare
Innovation in #healthcare should be a calculated strategy aligned with organizational goals. By adopting a portfolio approach, we can diversify innovation efforts across three primary categories:
1. Internal and Incremental: These #innovations, essential for continuous improvement, should comprise about 80% of our efforts, focusing on refining systems and processes that directly impact patient safety, clinical outcomes, consumer experience, and business results.
2. Hybrid: Around 10% to 15% of our efforts should push beyond current capabilities, involving collaborations with technology firms, academic institutions, and cross-industry partners to introduce fresh ideas into our practices.
3. External and Potentially Disruptive: The remaining 5% should be reserved for pursuing high-risk, high-reward innovations that could potentially disrupt the healthcare landscape. These ventures are deeply embedded in expansive ecosystems beyond our direct control and require careful consideration and #StrategicPlanning.
Balancing Risks and Returns
Balancing these elements requires a reimagined approach and support structures that may not exist within healthcare organizations. Each segment of the innovation portfolio serves a distinct purpose, contributing to a holistic strategy that supports both stability and advancement.
The Goal of Portfolio Thinking
The goal is to optimize the impact and feasibility of innovations. By strategically allocating resources and #leadership bandwidth, healthcare systems can address immediate needs and position themselves for future success. This approach ensures resilience and adaptability, enabling incremental changes that enhance day-to-day operations and embracing disruptive innovations that pave the way for future advancements.
Conclusion
As healthcare leaders, our mission extends beyond the treatment of disease and championing health and well-being; it involves steering innovation to significantly benefit and further serve those we care for. By mastering the art of portfolio thinking, we elevate what is possible and steward a future that is more probable.
Reflect and Respond:
1. What strategies can your organization implement to ensure a balanced innovation portfolio that addresses both immediate needs and future challenges?
2. How can your organization leverage partnerships to enhance innovation capabilities without losing sight of its core mission?
