Business
Figure 4 Present and future values for a sub-set of the PPP portfolio (ordered by starting year)
value across all four categories. Similarly, PPPs ini- tiated more recently, in general, deliver lower cur- rent value. The tendency for more value to be deliv- ered by older partnerships is not surprising, as all PPPs will take time to deliver maximum value. In addition, older partnerships that have not been delivering value will have been terminated or not renewed, meaning that an older partnership has to be good to have survived.
Hence, in comparing the value of partnerships the likely improvement in delivery should also be considered. That is, focus is placed on the ques- tions about the future value of each PPP (the grey items in Figure 1).
A combined dashboard was developed that shows both the present and future value of the PPP portfolio (Figure 4). PPPs that were not scored as delivering an increase in overall value are marked with a white X; all the others are shown with the present and future values connect- ed with an arrow in the direction of improvement. There were no examples of PPPs decreasing in expected future value.
This plot allows easy visualisation of the current and future value of the portfolio of partnerships and identifies those where more attention would be beneficial:
l The expected improvement in delivery value for Partnership A suggests that in two years’ time it should be delivering the highest value. l Lower value PPPs, with the exception of Partnership B, are expected to improve sufficiently
Drug Discovery World Winter 2010/11
over the next two years. These PPPs have all been initiated more recently, so the fact that they will improve is not necessarily surprising. However, it will clearly be important to track their progress to ensure that the expected delivery occurs.
l Partnership C is unlikely to improve further but it is already performing very well. l The current value delivered by Partnership D could be considered acceptable if it was early in its lifecycle, and value is expected to improve on a two- year time scale. This is not the case, however, and it is appropriate to consider how the value delivered by this PPP could be improved or whether invest- ment in this partnership should be terminated.
Partnership D is delivering almost to its full potential in the Delivery on Objectives category, but not in the others. This suggests it is delivering what it was established to do, but these deliver- ables are of limited value to the business. Partnership D has been running for more than 10 years, so it is not surprising that Strategic Interests will have changed over this timeframe, which, in turn, could limit the ability of the PPP to provide Access to Capability and Talent, and Impact on R&D Productivity. There are two approaches to consider in order to increase the value realised from Partnership D:
l Change externally: Adapt the objectives of the PPP to align better with current Strategic Interests, rather than those in place at the start of the PPP.
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