Project Portfolio Management Research Articles

A Framework for Selecting a Cloud-Based Project-Portfolio Management Tool to Maximize Business Value

Organizations continuously need to adapt and respond to ever-present technology advancements. Proactivity is a necessity; only those organizations who can pivot when presented with change gain a competitive edge in their respective industry. The most invaluable strategic weapon organizations will have in the face of change is a method to streamline initiatives, conserve resources, and have seamless communication. The modern benefits of cloud-based project-portfolio management (PPM) tools are the solution. This study identifies a gap in the research and knowledge about these modern tools. Extant literature is focused on what cloud-based PPM tools provide, but there doesn’t exist research on how to diagnose an organization’s specific needs and select the appropriate tool to maximize business value. Through a two-phase research approach, this study fills the lack of research on the topic and provides a framework for tool selection which is applicable to multiple industries.

Integrative Approach to Implementing Labor Productivity Projects in Large Industrial Companies Operating on the Territory of the Perm Krai of the Russian Federation

Abstract A purposeful growth in efficiency of large industrial companies largely depends on a balanced decision-making concerning the content, the cost, and the quality of corporate projects to increase business productivity. A traditional project management methodology does not allow improving all project’s parameters simultaneously. This leads to difficulties in implementing the developed measures and in providing the planned productivity growth. To search balanced decisions in labor productivity projects it is suggested to use an integrated approach, focused on a range of efficient instruments from allied management fields. It is recommended to integrate project management methodology with some instruments of strategic and innovative management, production systems development concepts LEAN, QRM and Agile, human resource and project portfolio management. A model of an integrated approach to labor productivity projects, which was developed and tested, is reasonable to use in large companies to develop hi-tech products and conduct organizational changes.

Project Management System of Exploration Program in the Light of Prioritizing of Reservoir Engineering Stages According to the Criterion of Prospects

A model of the project portfolio management system of a geological exploration enterprise has been developed, taking into account the stages of work. The model includes a control object, a decision-making subsystem, which includes a control device represented by the decision support software system “Balance of Groundwater Availability” (BGA) and an executive device represented by a decision-maker, making decisions at a geological exploration enterprise. The stimulus to the target asset arises on the one hand in connection with the implementation of sectorial and federal programs within the area for the development of the geological industry and the reproduction of mineral resources, on the other hand, it is the need to maintain a certain balance of the availability of raw materials in the region, in particular, underground water. Hence, it is necessary for the underground water exploration company to take into account the specifics of the programs in view of the interconnection of the sites within one large field of regional scale. In this case, the project portfolio needs to be managed, taking into account the network nature of their interaction, i.e. mutual influence on the remaining sections of the field. On the other hand, when forming a portfolio of projects of a geological exploration enterprise, it is necessary to take into account staging and phasing of geological exploration, their seasonal nature allows viewing the model of the management system in the context of discrete time. The work was carried out with the financial support of the grant of the President of the Russian Federation No. MD-2409.2020.5.

Project portfolio risk categorisation – factor analysis results

The subject of this article is project portfolio risk categorisation. Research conducted indicated categories containing the most probable and significant risks. The research described in this paper was carried out in two stages. In the first stage, the relevant literature was reviewed and the Delphi method was used to identify 36 risks specific to a project portfolio. In the second stage, the respondents (project portfolio managers) assessed the probability of each risk occurring and the impact of that risk on the objectives of the project portfolio. The empirical data obtained in this way made it possible to conduct an exploratory factor analysis and to identify the risk categories of the project portfolio. The presented results may also contribute to a broader discussion concerning the validity of identifying project portfolio risks and how to categorise them. The results may be useful for further discussion on the empirical confirmation of three categories of portfolio risks proposed by the Project Management Institute.

SPECIFICS OF FORMATION PORTFOLIO OF HYBRID PROJECTS OF MOTOR TRANSPORT ENTERPRISES

An analysis of methodologies and research papers on project portfolio management in various sectors of the econ-omy. The peculiarities of the subject branch (motor transport enterprises) are analyzed. The expediency of implementation of hybrid projects and development of tools for their management is substantiated. It is established that one of the unsolved management tasks is the task of forming effective portfolios of hybrid projects of motor transport enterprises. The purpose of the study is to substantiate the peculiarities of the formation portfolios of hybrid projects of trucking companies. And on their basis to describe the system relationships between operational, project and portfolio management, which provides quality tools for solving basic management problems of forming effective portfolios of hybrid projects of trucking com-panies. The scientific novelty of the performed researches is the substantiated features of the formation portfolios of hybrid projects of motor transport enterprises and the system interrelations between operational, project and portfolio management are described. As a result of the performed researches, the approach to the formation portfolios of hybrid projects of motor transport enterprises which are based on the account of the specificity of subject branch and system interrelations between operational, project and portfolio management is proved. This approach underlies the development of quality tools for the portfolio management of hybrid projects of trucking companies. It is established that based on the management of separate hybrid projects knowledge on their value and risk which together with the information on a condition of the design environment and features of portfolios of hybrid projects of the motor transport enterprises, is a basis of their qualitative formation is received. The unique characteristics of products (transport services) of individual projects, as well as actions for their creation and knowledge about them, are identified.

Evaluating Organizational Readiness for Project Portfolio Management Implementation

This study explores how business competency, organizational culture, and leadership attributes influence organizational readiness for Project Portfolio Management (PPM) implementation. Facets of PPM performance domains related to business competency illustrate the underlying functions required to engage PPM effectively. Investigating cultural considerations, including employee motivation and interpersonal communication, underscores the importance of these factors when approaching organizational change. The study highlights the most critical characteristics of transformational and authentic leadership for organizational readiness for PPM implementation. A case-based autoethnographic methodology is a qualitative method for data analysis. The analysis enables researchers to apply personal perspective and experience to bring real-life context to the study by providing a case for evaluation. Based on the extant literature and case review, this study asserts a set of prerequisites and supporting functions to evaluate organizational readiness for PPM implementation.

Interlinking Sustainability in Organizational Strategy, Project Portfolio Management and Project Management A Conceptual Framework

The transition towards more sustainable business practices requires the changing of products, services, processes, policies and resources of organizations. Acknowledging the role projects play in these changes, the concept of sustainability should be integrated in the way projects are selected, prioritized, performed, managed, governed and evaluated. This requires the integration of sustainability in the organizational strategy, project portfolio management and project management. However, studies on sustainability in business describes the application of the concepts of sustainability mostly on the above-mentioned level in isolation, with little or no attention to the linkages between the strategy, portfolio and project levels. A conceptual framework is presented indicating the interlinking practices of integrating sustainability into the organizational strategy, project portfolio management and project management. From this framework, empirical studies can be developed, and guidance is provided for organizations that aim to improve this integration and thereby embedding the deeper implementation of sustainability into their policies and practices.

A method for project portfolio risk assessment considering risk interdependencies – a network perspective

Project portfolios represent the bridge between projects and strategy. However, the final results may not be as expected because materialization of risk factors. Hence, literature has acknowledged project portfolio risk assessment as an element of the project portfolio risk management, being the element that provides information on the importance of risk factors. For that, some specific characteristics should be considered, such as risk interdependency influence and the risk factors impact over portfolio higher levels. Thus, this study is focused on the development of a method for project portfolio risk assessment that considers both risk factor interdependencies and their impact on the strategic objectives as a network. In addition, the method also allows incorporating both risk factors derived from projects and derived at project portfolio level. A representative example is provided to illustrate the proposed method.

Determinants of the use of predictive models in the management of investment portfolios, on the example of KGHM Polska Miedź S.A.

The authors present the determinants of the use of predictive analysis to support decision-making processes in the area of investment project portfolio management. The requirements are analyzed on the example of investment project portfolios of a mining company. The research is complemented by the description of already conducted tests, where predictive models have been created to determine most effective algorithms and key project attributes allowing to predict possible budget deviations. The proposed requirements for the implementation of the predictive analysis can be applied in other organizations managing projects according to project management methodologies with access to structured project data.

Project portfolio management practices - a theoretical base and practitioner guidelines

Project portfolio management practices - a theoretical base and practitioner guidelines

УПРАВЛЕНИЕ ПОРТФЕЛЕМ ПРОЕКТОВ И ПРОГРАММ ПО ПРЕДОСТАВЛЕНИЮ ГОСУДАРСТВЕННЫХ УСЛУГ В УСЛОВИЯХ НЕОПРЕДЕЛЕННОСТИ

The problems of managing the portfolio of projects and programs for the provision of public services in conditions of uncertainty are considered. It is emphasized that the existing methodology of portfolio management of real projects is far from perfect, does not have methodological unity, at the same time new ideas and approaches are emerging that need generalization and development. The approaches to the definition of projects, portfolios and programs are analyzed. The classification of project portfolio management models according to a number of features is given. The most interesting model constructions are investigated. Approaches are proposed to take into account real options, the effects of synergy and cannibalism in the tasks of project selection and the completeness of resources in their distribution between portfolio projects. It is concluded that there is an urgent need to strengthen the investment activity of Russian companies, which imposes increased requirements for the selection of projects included in the investor’s portfolio.

Strategy Analysis for project portfolio evaluation in a technology consulting company by the hybrid method THOR

Regarding the scope of project portfolio management, the correct prioritization of actions leads to the achievement of the organizational strategic objectives. Based on the strategic planning of a technology consulting company, the paper presents an alternative model for project prioritization from the moment that the project selection decision is a vital process in technological associations in two ways. First, the software development project budget requires a large investment and must be in alignment with the strategic objectives of the company. Second, the multidimensionality of organizational returns on projects is naturally risky in terms of the expected outcome. This study considers the project analysis based on a multicriteria approach by the THOR method, providing to make a transparent evaluation, highlighting the most important variables concerning the problem, and making the identification of the most favorable solution.

Project portfolio management practices - a theoretical base and practitioner guidelines

Project portfolio management practices - a theoretical base and practitioner guidelines

Maturing the Scrum Framework for Software Projects Portfolio Management: A Case Study-Oriented Methodology

In the modern era, information technology-based solution providers are encountering a growing request for satisfying the versatile requirements of their customers in terms of software applications. To this end, specific approaches have been designed to streamline the way of accomplishing software projects in an efficient manner, i.e., agile-oriented frameworks. Even though previous studies have highlighted variations of such a framework, the literature has not addressed the adaptations required in response to the gradual maturity of a wide-ranging case study dealing with software applications. Following a case study-oriented methodology, this paper focuses on elaborating a set of workable maneuvers to mature the Scrum framework when applied to portfolio management. Particularly, we highlight how Scrum should be adapted from its basic setting to a vision and goal-oriented configuration or Scrumban under certain conditions. As a maturing practice, we propose a heuristic scoring technique to determine the sprint length of subprojects with different characteristics in the context of a portfolio. The study also introduces a multi-level refinement structure to enhance the monitoring of the teams’ performance under the proposed mature framework. The results obtained display a considerable spike in the realization rate of release planning in light of the actual performance.

Project portfolio management as a tool for implementing an organization's strategy: development of a project selection and ranking system

At the current stage, development of economic relations is characterized by high competition in all sectors of economy with no exception. Requirements, applicable to the quality of products and services, resource conservation, environmental safety of products and technologies are increasing. Hence, these changes need investments and a balanced approach to the implementation of projects, having versatile foci and scale. In this regard, a portfolio management toolkit is increasingly used, since it allows for an optimal set of portfolio components and a clear focus on strategic changes in the company's activities. The portfolio management motivation is the ability to optimize investment resources and set disbursement priorities.
 Given the strategic focus of the project portfolio, it is necessary to implement such processes as the assessment of each project from the standpoint of compliance with corporate strategic objectives, elimination of task duplication within the portfolio, cost and feasibility assessment, as well as project ranking and balancing. Many researchers believe that it is advisable to use expert analysis methods for the project selection and ranking, since experts are able to assess not only the quantitative, but also the qualitative characteristics of components, their strategic focus, and use extra data. The most acceptable methods are the analytic hierarchy process, the strategic buckets method.
 Given that each project portfolio component has been examined and selected according to the commercial efficiency criteria, it is necessary to solve the task of assessing each component’s impact on the targets of the portfolio as a whole. We believe that the problem of developing a system of target indicators, related to the company activities, requires further consideration. To generate the project portfolio objective, it is advisable to apply the SMART methodology, which is focused on such characteristics of objectives as being specific, measurable, achievable, relevant for the company, and time-bound. This approach is quite consistent with the strategic focus of the project portfolio. The dynamic nature of the project portfolio implementation, along with the permanency of the strategic objectives, requires balancing the portfolio not only at the verification stage, but also at each life cycle phase, which will allow to avoid risks.
 This paper aims to review and summarize approaches, goals and principles of a strategic project portfolio management in an organization, develop suggestions for ranking projects in the portfolio taking into account the interdependence of projects, the ability to implement strategic changes. Having focused on the standard project classification, the co-authors propose a step-by-step approach to the formation of an optimal set of the project portfolio components, providing systemic synergy. The co-authors propose a system of targets for ranking the project portfolio components to be based on the provisions of the portfolio management methodology and the experience of its implementation in various spheres of economy, regulatory legal acts, and opinions of well-known economists. The proposed project portfolio criteria are consistent with the requirements of the SMART goal setting methodology and include the following positions: revenue increase; production costs decrease; market share growth; the company's market capitalization growth. The rating of the portfolio component is determined by the sum of the contribution points to the achievement of the above targets.

Influential Article Review - Process Based on Values Integrated Development of BPM Competence Development and Process Optimization: Project Asset Management

This paper examines business process management. We present insights from a highly influential paper. Here are the highlights from this paper: Business process management (BPM) is an important area of organizational design and an acknowledged source of corporate performance. Over the last decades, many approaches, methods, and tools have been proposed to discover, design, analyze, enact, and improve individual processes. At the same time, BPM research has been and still is paying ever more attention to BPM itself and the development of organizations’ BPM capability. Little, however, is known about how to develop an organization’s BPM capability and improve individual processes in an integrated manner. To address this research gap, we developed a planning model. This planning model intends to assist organizations in determining which BPM- and process-level projects they should implement in which sequence to maximize their firm value, catering for the projects’ effects on process performance and for interactions among projects. We adopt the design science research (DSR) paradigm and draw from project portfolio selection as well as value-based management as justificatory knowledge. For this reason, we refer to our approach as value-based process project portfolio management. To evaluate the planning model, we validated its design specification by discussing it against theory-backed design objectives and with BPM experts from different organizations. We also compared the planning model with competing artifacts. Having instantiated the planning model as a software prototype, we validated its applicability and usefulness by conducting a case based on real-world data and by challenging the planning model against accepted evaluation criteria from the DSR literature. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.

Strategic Innovation, Foresight and the Deployment of Project Portfolio Management under Mid-Range Planning Conditions in Medium-Sized Firms

The purpose of this paper is to examine the ability of a firm to innovate and absorb its innovative developments by borrowing concepts and models from project portfolio management (PPM). Using past research and the existing literature, it evaluates the potential to apply PPM to the medium-term strategic planning efforts of small- and medium-sized firms. The implementation of strategic innovation requires organizations to develop both a dynamic culture and flexible internal systems that yield to major external changes in their industry as well as internal resource changes. Such changes could include supply or value chain adjustments, changes in consumer behavior, re-allocation of internal resources or the responses of competitors. This paper examines the planning and implementation of project portfolio management tools in small- and medium-sized enterprises (SMEs) (50–250 employees) with a mid-range (2–4 years) planning horizon that are required to innovate in a strategic context to remain competitive or to take advantage of new opportunities. It relates strategic foresight to the ability of the firm to adjust tactically, including in the utilization and development of internal tools, processes, systems and culture. This paper contributes to the literature by examining the potential for PPM methodologies and models to support decision making in a strategic context in SMEs, an area that is under-represented in the research on strategy. It also relates this foresight with strategic innovation and draws parallels between the strategic management planning process and the use of project portfolio management models. It argues that strategic innovation is closely tied with the ability not just to innovate but to absorb this innovation within the organizational processes and build organizational maturity. It also examines the potential use of project portfolio management models to aid strategic innovation. The use of PPM models in support of strategic innovation may contribute to the sustainability of SMEs as businesses and to the potential to identify new business models that enhance the sustainability of a firm’s competitive advantage, particularly in the medium-term.

Avenues to improving the effectiveness of project portfolio management in the construction industry

ABSTRACT Although the role of project portfolio management (PPM) in evaluating, selecting, and prioritizing the right set of projects has been explored in previous research, the current literature still lacks a framework of factors affecting PPM effectiveness in the construction industry. This study aims to identify these factors and examine their importance from industry experts’ viewpoints. A literature review was followed by obtaining the viewpoints of industry experts through interviews and the Delphi method. The findings are presented in the form of a framework including 18 factors reflecting organizational, technological, human, and process aspects necessary for achieving an effective PPM mechanism. The current study is unique in terms of consolidating theoretical suggestions of previous studies, incorporating new factors, and evaluating their priority in achieving an effective PPM system. The findings revealed that organizational factors are of higher priority as the basis for technological, human, and process factors. The results open up new ways for researchers to undertake follow-up quantitative research on the relationships between determinants of PPM effectiveness.

Relationship between project governance, project portfolio and best practices in an energy transmission company

Purpose: This article aims to investigate how project governance, project portfolio management and best practices are related in a company in the Brazilian electricity sector, considering the gaps identified in the management of its projects and the results of them. Methodology/Approach: In order to subsidize this study, in theoretical terms, the study is supported by a systematic survey of the literature and, in empirical terms, it conducts an investigation with 18 key employees of the organization through the application of a questionnaire, with a view to confronting the perception of respondents with the relevant concepts found in the literature. Findings: In the empirical research, on the other hand, made it possible to investigate the perception of respondents from different groups in relation to the organization's adherence to the proposed themes. Research Limitation/implication: The studies were not carried out outside the environment of the selected company, nor are extrapolations made to other organizational realities, although it recognizes that this study can contribute to influencing companies in the same or different segment to deepen into the above theme. Originality/Value of paper: The proposed research is applicable in all organizations or sectors that are strategically project oriented.

PROBLEMS OF PROJECT MANAGEMENT IN THE ENTERPRISE

The peculiarities of modern investment activity of enterprises are analyzed in the work. The goals of investment activity of enterprises are structured: increase of profitability; expanding market share; strengthening innovation activity; improving investment attractiveness. The current problems of project management are highlighted: management of limited resources to achieve goals; funding and weighted evaluation of potential criteria; integration of tasks on the main business processes; distribution of roles and responsibilities of all performers and stakeholders; project portfolio management; project management software. The interests of the main stakeholders of the projects are classified: increase of profits and dividends, improvement of reputation (business owners): efficiency and effectiveness, self-realization, authority (managers); proper wages and social guarantees, self-realization, recognition of work results (employees of the enterprise); fulfillment of contract conditions and refund, solvency of the enterprise (investors); optimal ratio of price and quality of goods, compliance with the terms of the order (consumers); increase in order volumes, timely payments under the terms of contracts, long-term relationships (suppliers); activities that meet the requirements of the law, payment of taxes, job creation, implementation of volunteer social and cultural projects (public authorities); growth of cooperation agreements (intermediaries); availability of competitive advantages, market leadership (competitors). In order to develop skills in the formation of hybrid project management systems, the features of approaches to project management have been studied: cascade project management; Agile; Six Sigma; PRINCE2. Systematized priority areas for solving project management problems: training of enterprise managers by programs: project management software; team leadership; project portfolio management; change management; increasing the stress resistance of managers; conflict resolution; talent management; project management information support; team building; Public Relations; attracting various sources of project funding; planning enterprise development programs and updating business models; reconciling the interests of project stakeholders. Which in turn will optimally solve the problems of project management and improve the results of the enterprise. These issues are for further research: studying the peculiarities of attracting various investors to finance enterprise projects and concluding investment agreements.