After realizing spend for only 16% of the organization's R&D projects were accurately forecasted, a VP of R&D Portfolio Project Management leveraged the Gartner R&D Spend and Performance Benchmark to convince key stakeholders of the importance of accurate R&D forecasting and update core processes, reducing forecast variance and saving the business money.
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Mission-critical priority
Secure stakeholder buy-in and alignment on forecasting strategy and reduce forecasting variance across the R&D portfolio.
How Gartner helped
Using the Gartner R&D Spend and Performance Benchmark data, the R&D leader was able to share real-time forecasting data from other companies to convince his team of the importance of accurate forecasting from a money and time-saving perspective. The VP and his team adjusted their processes and metrics to better measure and predict R&D portfolio spend, reducing overall forecasting variance equating to roughly $20M in savings.
Business impact
With Gartner’s support, the VP of Portfolio Project Management:
- Benchmarked his team's R&D spend forecasts against peers to realize massive discrepencies comparative to other R&D organizations.
- Leveraged data from the R&D Spend and Performance benchmark to convince key stakeholders that they needed to adjust their forecasting strategy.
- Improved forecasting processes and metrics to account for quarterly portfolio and forecast variance, amounting to $20M in quarterly savings
Industry:
Pharmaceuticals
Revenue:
$8.3 Billion
Employees:
10,000+
