Portfolio management: the case of the Norwegian Public Roads Administration

Abstract

The interest in portfolio management has grown in time, especially due to the economical restrictions of the recent years. Selecting the best portfolio of projects and manage it to reach the strategic goals is therefore crucial, but the criteria to consider in the evaluation are getting more complex. The Norwegian Public Roads Administration (NPRA) is one of the actors that operate in complex environment, dealing with different portfolios and different types of projects. In the management of these portfolios, the new strategic initiative is to bring sustainability among the set of criteria to be evaluated. This is creating a challenge where the importance in selecting the projects to form the portfolio and manage the existing portfolios actively has grown with the difficulty of handling inhomogeneous criteria, also difficult to measure. The structure of NPRA’s portfolios has been investigated, conducting semi-structured interviews and analyzing strategic and organizational NPRA’s documents and tools used for portfolio management. The paper describes the different portfolios for the NPRA and focuses on the actual system for the selection and management of the portfolio of projects, for chosen specific portfolios. For each of them, the strengths and weaknesses for the project portfolio selection and management in NPRA are discussed, with the focus on sustainability as evaluation criteria. Literature and portfolio practice is used to evaluate criticalities for the public agency and to suggest further work to develop a coherent and effective portfolio management focused on sustainability.