A Multi-criteria Approach in the Project Selection Process in Multi-Project Context

Charles Éric Manyombé,Sébastien H Azondékon

doi:10.5539/ibr.v14n6p125

Charles Éric Manyombé, Sébastien H Azondékon

Open Access

https://doi.org/10.5539/ibr.v14n6p125

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Abstract

In a multi-project environment, organizational complexity refers to the difficulties that organizations often face in choosing projects to build their portfolios, since they do not aim to achieve the same strategic business objectives. It is for this reason that the project selection process requires the implementation of an effective decision-making tool when composing a project portfolio. The objective of this paper is to propose an adapted framework for a better project selection procedure inspired by the approaches of strategic relevance, profitability criteria, uncertainty, and risk analysis, the ability to dispose of scarce resources, and the determination of interdependencies between different projects.&nbsp;

Highlights

Project portfolio management is at the heart of the strategic processes of many companies and is seen as a means for organizations to achieve their strategic business objectives
In the field of multi-project management, organizational complexity refers to the difficulties that organizations often face in choosing the projects that should make up their portfolios, since the latter do not aim to achieve the same objectives
The certain monetary equivalent corresponding to this utility is calculated and is equal: The estimate of the decision-makers aversion coefficient c is obtained by determining the value of a point on the utility curve that is a function of the project's contribution to the achievement of strategic business objectives other than financial profitability

Summary

Introduction

Project portfolio management is at the heart of the strategic processes of many companies and is seen as a means for organizations to achieve their strategic business objectives. In order to be effective in a highly competitive environment, it is important for organizations to implement multiple projects for which they can provide sufficient and appropriate resources. In the field of multi-project management, organizational complexity refers to the difficulties that organizations often face in choosing the projects that should make up their portfolios, since the latter do not aim to achieve the same objectives. Projects should be chosen based on their relevance to the company, the organization's objectives, the adequacy between the number of projects, and the availability of resources, while ensuring that the right projects are undertaken and aligned with organizational objectives. By looking at the problem of project selection in a multi-project context, Cooper and al., (1997), we're able to identify the main problems encountered in the selection of projects in a multi-project context which are, among others, the inadequacy of projects with the organization’s strategies; an asymmetry between the projects selected and the organizational capacity; the low quality of the projects selected; the lack of synergy between projects and the imbalances caused by the choice of projects

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Conclusion