Dynamic measurement for the impact of project portfolio synergy

Abstract

Measuring the impact of project portfolio synergy (PPSI) is crucial for making informed decisions to improve the strategic realization of a project portfolio. However, the literature has failed to measure PPSI effectively from the perspective of project element flow and to explore the differences in synergy relationships between homogeneous and heterogeneous projects. Consequently, this study proposes a framework for measuring PPSI from the perspective of project element flow. First, based on analyzing the synergistic relationship between projects, the corresponding project element datum quantity is determined according to the different types of element flow forms. Second, the synergy degree between homogeneous and heterogeneous projects is quantified through project similarity and correlation. Third, a dynamic measurement model is constructed using System Dynamics to solve the complex interactive feedback and dynamics in the PPSI measurement system. Finally, the framework is demonstrated and validated by a numerical example of project management in Xi'an, Shaanxi Province. The results indicate that the model can effectively measure PPSI and identify the key factors generating it. In implementing the portfolio, managers must focus on sharing and integrating newly developed technologies and information, thus facilitating the generation of PPSI. This study extends the boundary of project portfolio synergy theory and contributes to the literature on measuring PPSI by focusing on the elements flow within portfolios. Additionally, the model provides an effective tool for managers to forecast PPSI and determine appropriate optimization strategies.