Project Portfolio Management Research Articles

Project Portfolio Management in a Multi-project Environment

Creating a portfolio of projects is an important scientific and practical task that applies to all areas of human activity, and the field of information technology is no exception. Research has shown that there are multiple approaches to solving this task, each characterized by certain features. Known methods of resource allocation have been analyzed, classified, and shown to be primarily related to linear programming problems, resource distribution matrices, or based on empirical knowledge. The project portfolio formation model was presented as a fuzzy problem of integer linear programming. A structural approach was used to depict the functioning principles of the system and information flows. An analysis was conducted, and development tools were selected. The outcome of the work resulted in a prototype of the software. Further research will focus on verifying the system's performance and constructing related modules.

MODERN APPROACHES TO PROJECT PORTFOLIO MANAGEMENT IN THE ROAD CONSTRUCTION INDUSTRY

The project approach is successfully implemented in all areas of human activity, in particular in the transport industry, and has proven itself as an effective and efficient tool for managing transport companies. Considering the large number of areas of activity in the transport sector, it is expedient to combine individual projects that are being implemented into programs and portfolios. In this study, an analysis of scientific works in the transport industry was carried out, which showed that the current state of affairs in this field requires the development of strategic management tools and their implementation in their activities. The works of scientists on strategic management and management of project portfolios of companies in various fields of activity were also considered, which showed that the available works can become the basis for developing models and methods of managing project portfolios in the field of road construction, but do not fully take into account the peculiarities of this field. The authors propose the application of a portfolio approach to the company's activities in the field of road construction. In this work, a study of the development directions of the road industry was carried out and the sources of filling the state road fund, from which financing of the specified development directions was provided, were determined, as well as an analysis of the standard of project portfolio management was carried out. In order to improve the quality of project portfolio management in the field of road construction, it is advisable to improve the implementation of strategic management processes, portfolio management, and to introduce those processes that are not yet being implemented. This can also be done by developing and implementing project portfolio management information technology in the field of road construction, which will enable the implementation of strategic management and project portfolio management.

Toward a Multilevel Framework of Dynamic Capabilities Through the Lens of Project Management, Project Portfolio Management, and Project-Based Organizations

Project management, project portfolio management (PPM), and project-based organizations (PBOs) literature lacks in approaching the development of dynamic capabilities (DCs). However, creating a competitive advantage through DCs has been considered a valued mechanism. Hence, this study critically reviews the literature, looking for cross-fertilization that bridges the literature on DCs with project management, PPM, and PBOs, using a multilevel perspective to organize the coding book and explore the microfoundations of DCs. Merging content analysis and bibliometrics, we identify 99 DCs clustered into three levels: project management, PPM, and PBOs. It proposes a multilevel framework that classifies the core DCs per level of analysis.

Not the usual project management: a better way to prepare for major disruptions

PurposeOrganizations have always faced the possibility of disruptions. Traditional approaches, such as shifting risks through insurance or improving organizational resiliency, view disruptions as threats. This study aims to propose a new perspective where disruptions can also be opportunities. By adopting project portfolio management (PPM), organizations can develop proactive capabilities to manage uncertainty and prepare to exploit future disruptions.Design/methodology/approachDrawing on publicly available research reports, company reports, professional standards and press reports, this study describes key features of PPM and provides detailed practical guidance on how to apply PPM in daily operations, especially in preparation for the next disruption.FindingsThe key steps in applying PPM in daily operations are: align portfolios and projects with strategic goals and objectives; establish a robust governance framework; optimize resource capability and capacity; build and implement appropriate implementation methodologies; continuously monitor, review and optimize the project portfolio; and develop a culture that embraces risks, innovation and adaptability.Research limitations/implicationsThis research has several limitations and implications. On limitations, the study was constrained by publicly available data, an in-depth interview with a consulting firm and a survey based on convenient sampling. These limitations will impact the generalizability of the findings. On implications, this paper shows how organizations can prepare for future disruptions by applying PPM. There are other ways to prepare for the unpredictable future, and further research is needed to explore other methods.Practical implicationsThe results of this study have important practical implications for all organizations and in all sectors. Major disruptions are matters of “when,” not “how,” and responsible organizations need to pay attention. Based on the PPM discipline, this research provides an approach for business executives and project management practitioners to tackle this challenge. Furthermore, portfolio managers should use this information to promote and advocate for more disciplined planning to confront the uncertain future.Social implicationsThe findings of this paper carry important social implications. As the recent events showed the vastness of disruptions, from extreme heat to fires in Maui, sitting idly and waiting passively for an unpredictable future is not an option. This paper advocates the need for more awareness and preparation for future disruption by applying PPM. Furthermore, this research provides concrete guidelines for organizations and practitioners to consider as they confront the unknown. Additional research should investigate other effective strategies to meet the challenges of an uncertain and volatile future.Originality/valueThis study offers practical steps on how organizations may manage not only to survive but also to thrive in an uncertain and volatile world.

Theoretical Fundamentals of Scaled Business Agility and Project Portfolio Management at Automotive Manufacturers

This study has the aim to explain the theoretical fundamentals of scaled agile business structures and of the traditional project portfolio management before laying out the discrepancies of agility with project portfolio management at large enterprises such as automotive manufacturers.
 For the exploration of the scarcely addressed topic of agility at portfolio level, current journals were mainly consulted. Further, for the theoretical exposition of project portfolio management, current journals and textbooks about business strategies and project management were used as well as journals for information about portfolio management.
 As a result of this paper, it was found that the difference of agile delivery to the traditional organization is the focus on small work packages instead of detailed long -term planning. When focusing on smaller work packages, portfolio planning becomes more iterative and bottom-up ideas have a higher impact on program level. 
 For other industries then automotive manufacturers, other company sizes, or even other automotive manufacturers, which are built from the ground up to be more agile, the findings of this paper are not relevant.

Project portfolio management in telecommunication company: A stage-gate approach for effective portfolio governance

In today's fast-paced business environment, implementing strategies through programs, projects, and business-as-usual activities can be challenging for companies. The telecommunication industry, in particular, faces these challenges as it experiences the effects of digital transformation and fast-changing markets. It requires a flexible and adaptive approach to project portfolio management (PPM) to optimize investments and deliver value. This article presents a successful case study of a PPM process using the Stage-Gate model in a prominent telecommunications company that operates in a dynamic and fast-growing environment. The Stage-Gate PPM model comprises four stages: Proposal Selection, Selection of Nominated Demands, Prioritization, and Categorization of Projects. The model is unique as it can be adapted to different projects and incorporates elements of Agile approaches, such as Portfolio Sprint meetings and artefacts. The study demonstrates the importance of a well-defined PPM process in coordinating short-term and long-term activities and effectively allocating time, money, and resources. The Stage-Gate PPM model can potentially enhance project success rates and bring greater value to companies by ensuring the realization of suitable projects. This article contributes significantly to the existing literature on portfolio management, providing valuable insights and lessons applicable to other companies in the industry to enhance their portfolio management processes. Furthermore, this study can interest scholars and researchers seeking to explore effective portfolio management in other complex and dynamic environments.

SSUIT Smart Sustainable Urban Infrastructure Transitioning

Transformation towards smart sustainable cities requires transitioning and modernising urban infrastructure systems. This study builds upon previous work and recommendations to address the need for a holistic and comprehensive framework to guide the planning, development, and management of smart sustainable infrastructure transitions. Existing approaches and methods regarding city and infrastructure transitioning were reviewed to draw up an understanding of, the requirements for, and guidelines useful to the design of a conceptual framework. The framework was established through synthesis of the knowledge and insight gathered from the literature. A collective case study analysis was used to verify the theoretical framework and make adaptations to successfully address any shortcomings. The framework was then also subjected to a validation process testing the appropriateness of the framework’s design using a Delphi technique and industry experts. After adapting the framework based on the feedback from experts, all of them were certain the framework would hold up in practice. The framework is intended as a generic guideline useful to municipal managers, city planners, and project portfolio managers appointed to plan, direct, and manage the transition of an existing city towards a smart sustainable city.

The Relation Between Risk and Portfolios Risk Management Project Portfolios

Project Portfolio Management (PPM) is a subsidiary of project management. It is used to control and coordinate the projects in various organizations' portfolios with clear objectives of maximizing the project results, balancing portfolio threats, and aligning the projects to meet the business's strategic aims. In many organizations, PPM is ranked on a higher level than the project management concept because the goal of PPM is to achieve the strategic objectives of an organization. However, risks typically arise during project implementation and management. The project managers constantly work to minimize the project risks while simultaneously maximizing the intended values of a given project. The project management teams should manage the risks while achieving the strategic goals and objectives of an organization. This paper discusses the relationship between PPM and risk management during the project implementation process. The paper explored the use of a systematic literature review to come up with these critical findings. The author recommends that there's a need to use empirical data to validate the existing theories and published literature findings. The project Portfolio Risk Management (PPRM) has practical and theoretical approaches in risk management (RM), decision theory, and modern portfolio theory. The use of a systematic literature review approach was used in the execution of this study to gain more insights into the influence of risks on project portfolio and success, identification of the project portfolio risks, and the management of risks in the project portfolio management context.

Integrative review of project portfolio management ranking criteria - understanding better the decision-making process

Project portfolio management (PPM) relies on rankings of projects, which can be challenging due to the many factors and people involved. Project prioritization is essential when a business works on multiple projects simultaneously (whether the projects are wholly independent or interdependent). Managing the projects already in the company’s portfolio and selecting new ones to add to the portfolio are among the essential tasks for many companies. The organization must prioritize the proper initiatives within its diversity to attain its goals and objectives. The ranking approach is a way to prioritize the projects by placing them in order from most important to least important by assigning each task a rating based on a set of criteria. These can be very diverse and depend on many factors, such as different financial and non-financial impacts). This study aims to provide a comprehensive assessment of the existing literature on studies in project portfolio management ranking, focusing on the ranking criteria employed and identifying the journals that published the papers we selected for this analysis. Before ranking, it is necessary to specify which criteria are most relevant to suit the organization’s goals. This research presents the main applicable criteria for ranking project portfolios and their sub-criteria to understand the potential of PPM better, leading to selecting more suitable and valuable projects for the organization. Based on this review, exploring the criteria used for the process, identifying the possibilities for their application, and gaining further knowledge of them enable better portfolio management for the company.

What are the established expectations for the artifacts addressed in project portfolio management?

The objective of this research was to evaluate elements present in 75 academic articles and 308 patents to propose a research agenda considering the following question: What is expected from new artifacts aimed at Project Portfolio Management? As a method, we decided to carry out an Systematic Review of Literature and Patents and as results we identified artifacts such as models, methods and software distributed in two dimensions: (1) Plurality, built for specific situations and problems, present in the literature and not tested in the field, which demonstrate the path taken so far; (2) Prospecting, care that directs mapped needs to the development of new studies with greater practical application. As a guiding proposal, we propose the following factors Dynamic Portfolio, Simplification, Integrative Approach, and Integrated Tools to support future studies when there is a need to develop new studies focused on Project Portfolio Management.

An Interpretive Study of Senior Managers’ Conceptions of Project Portfolio Management Work

An Interpretive Study of Senior Managers’ Conceptions of Project Portfolio Management Work

Modeling for project portfolio synergy benefits measurement

ABSTRACT Generated by internal synergy relationships in project portfolio (PP), project portfolio synergy benefits (PPSBs) are essential for enterprises to achieve their strategic objectives. However, few studies have been conducted on measuring PPSBs, which hinders managers from making rational use of PP synergy relationships to realize and improve PPSBs. This research deals with this issue by constructing a PPSB measurement model. First, the PPSB measurement model elements, including PP synergy, PPSB measurement criteria, and PPSB influencing factors, are identified. At this stage, to integrate PP synergy into the measurement model, a new method that emphasizes project similarity based on the project niche is proposed to quantify it. Then, a system dynamics model is developed by quantifying the causal relationships within these elements to measure PPSBs. Finally, the proposed model is demonstrated and validated with a numerical example. Results show that this model can help managers to measure and optimize PPSBs. To our knowledge, this proposed model is the first to realize the measurement of PPSBs, enriching the literature on project portfolio management and providing managers with a tool for enhancing the PPSBs following the organization strategy.

Preliminary evaluation methodology for payback infrastructure projects in private-public partnership

The authors of the article present the results of scientific and practical research on the development of methods of primary assessment of the efficiency of payback infrastructure projects public-private partnerships achieved through the monitoring and analysis of the state company’s investment activities and project portfolio management. The purpose of this study is to develop methodology for preliminary evaluation of payback infrastructure projects, that is able to be used to evaluate efficiency of capital investment at the stage of initial project appraisal and planning and to range perspective projects in accordance with their efficiency. The subject of the article: efficiency of payback investment projects in the infrastructure industry. The relevance of the study is determined by absence of a generally accepted methodology for initial evaluation of investment projects, that allows for into consideration the legal and economic specifics of federal projects approval and implementation in the regions of Russia. The methodology formed on the basis of an interdisciplinary approach implemented in the course of approval and evaluation practice of investment projects appraisal within the framework of the activities of a state-owned company. The instrumentation reviewed in this paper is based on data from financial modeling of infrastructure projects, with preliminary geographical modeling of traffic flow intensity. It includes the following modified indicators based on discounted cash flows: consolidated coverage ratio, ratio of operating income to capital investment, share of extrabudgetary funding in the life cycle of a project, internal rate of return. These indicators are unified into a single integral indicator, which allows to rank and manage future projects in a company’s portfolio. The applicability of the proposed methodology has been verified by the results of implementation of the public-private partnership projects. Based on the results of the study a financial model for initial assessment of project efficiency has been prepared, which can be used as the initial stage of project justification.

Hyper-project portfolio management: post-merger project portfolios

PurposeThis study aims to develop a new integrated decision-making framework specifically designed to address complexity and uncertainty for project portfolio management. It particularly focuses on managing portfolios in a post-merger context. The paper portrays a normative and prescriptive approach to effectively creating a well-balanced project portfolio in a post-merger scenario.Design/methodology/approachThis study introduces hyper-project portfolio frame as a prospective methodology for evaluating post-merger portfolios. The proposed method especially addresses the challenges associated with integration following a merger.FindingsHyper-project portfolio frame provides fundamental leaps in post-merger project portfolios. The frame gives opportunities to check consistency with policy, organizational scalability, flexibility and product diversity. It also underpins achieving the strategic objectives of mergers and acquisitions (M&As).Research limitations/implicationsThe literature synthesis is approached from an interpretative standpoint. The research incorporates discussions and comparative studies from the relevant literature and introduces a novel approach. Additionally, new descriptive studies can expand the proposed process-oriented decision-making. Moreover, this research does not consider hostile takeovers.Originality/valueNested in content and process-oriented fashion, the frame provides suitable prequalification analysis for portfolios in a post-merger under the concepts of complexity, uncertainty, risk and value.

Principles in Project Portfolio Management: Building Upon What We Know to Prepare for the Future

Since the 1950s, project portfolio management (PPM) has offered principles helping us to act in PPM-related situations. Our study integrates what we know by reviewing seven decades of PPM research. We identify 17 PPM principles in four categories that have shaped our thinking and show how these are embedded in a semantical hierarchy. By doing so we shed light on the thoughts, intentions, and practices behind the principles, which support practitioners in becoming knowledgeable agents. By reflecting on the deficits of the identified principles’ underlying assumptions, we propose a path for future research.

An Integrative Review of Project Portfolio Management Literature: Thematic Findings on Sustainability Mindset, Assessment, and Integration

Sustainability integration in project portfolio management helps shape strategic, organizational, and project-based contexts. The authors conducted a structured literature review from 2000 to 2021 and developed a novel integrative framework presenting a holistic view highlighting three substantive research themes: sustainability mindset, sustainability assessment, and sustainability integration in project portfolio processes. Noteworthy progress has been made at the strategic and portfolio levels toward framing a sustainability mindset (definition, values, and principles) and developing frameworks/tools for sustainability assessment and project portfolio selection. However, areas for more research include integrating sustainability into project portfolio processes, reporting, and organizational learning for portfolio improvement.

When Agility Meets a Project Portfolio: A Study of Success Factors in Large Organisations

The iterative nature of agile methods combined with high levels of team and customer interactions and continuously changing IT and software development project requirements make the management of agile project portfolios very complex. To date, the mechanisms under which project portfolio management adapts to these complexities and achieves portfolio success have not been thoroughly investigated. This study explores the notion of success and its impacting factors in large organisations' portfolios of agile IT and software development projects. Using a multiple case study design, we analysed the agile project portfolios of seven large organisations. We identified four success criteria and 15 success factors and categorised them into a unique agile portfolio success framework. Some of these criteria and factors are unique to agile project portfolios. The framework contributes to agile and project management literature by conceptualising the notion of success in portfolios of agile projects while revealing a set of factors that affect the relationship between an agile portfolio with its subcomponents and the surrounding environment. The framework supports managers and practitioners in large organisations in reflecting on their agility efforts to achieve higher success rates in their agile portfolios.

Artificial Intelligence Applications in Project Scheduling: A Systematic Review, Bibliometric Analysis, and Prospects for Future Research

AbstractThe availability of digital infrastructures and the fast-paced development of accompanying revolutionary technologies have triggered an unprecedented reliance on Artificial intelligence (AI) techniques both in theory and practice. Within the AI domain, Machine Learning (ML) techniques stand out as essential facilitator largely enabling machines to possess human-like cognitive and decision making capabilities. This paper provides a focused review of the literature addressing applications of emerging ML tools to solve various Project Scheduling Problems (PSPs). In particular, it employs bibliometric and network analysis tools along with a systematic literature review to analyze a pool of 104 papers published between 1985 and August 2021. The conducted analysis unveiled the top contributing authors, the most influential papers as well as the existing research tendencies and thematic research topics within this field of study. A noticeable growth in the number of relevant studies is seen recently with a steady increase as of the year 2018. Most of the studies adopted Artificial Neural Networks, Bayesian Network and Reinforcement Learning techniques to tackle PSPs under a stochastic environment, where these techniques are frequently hybridized with classical metaheuristics. The majority of works (57%) addressed basic Resource Constrained PSPs and only 15% are devoted to the project portfolio management problem. Furthermore, this study clearly indicates that the application of AI techniques to efficiently handle PSPs is still in its infancy stage bringing out the need for further research in this area. This work also identifies current research gaps and highlights a multitude of promising avenues for future research.

The interplay between dynamic capabilities’ dimensions and their relationship to project portfolio agility and success

Recent literature emphasizes agility's importance for a project portfolio's success in a dynamic environment. Conceptually, dynamic capabilities should be relevant antecedents for portfolio agility since they help organizations cope with dynamic environments. Dynamic capabilities disaggregate into three dimensions: sensing market and technology opportunities, seizing opportunities through prioritizing and exploiting them, and continuously reconfiguring assets and structures. Although previous literature emphasizes the importance of dynamic capabilities for project portfolio management (PPM), former research rarely analyzed dynamic capabilities in PPM empirically. Further, dynamic capabilities can be conceptualized differently, and it remains unclear how different conceptualizations coexist and what effects they have on the results of a study. This paper quantitatively investigates the relationship between dynamic capabilities’ dimensions (sensing, seizing, and reconfiguring) and project portfolio agility and success using a multi-informant, cross-industry sample of 135 project portfolios. The findings show that dynamic capabilities positively relate to portfolio agility and that portfolio agility mediates the relationship between dynamic capabilities and portfolio success. Surprisingly, sensing, seizing, and reconfiguring do not have entirely complementary effects. Instead, at least two of the three dimensions must be strongly present to enhance portfolio agility positively. The study underscores the importance of dynamic capabilities for portfolio agility. It contributes to the literature on portfolio agility in PPM and a more differentiated view of dynamic capabilities' dimensions and their consequences.

The Role of Project Management Office in Managing Project Portfolio Managem ent: A D escriptive S tudy i n Indonesian B anks

Purpose: This paper presents a preliminary study of the complete research to explore how strategic initiatives are implemented in Indonesian banks. It has the aim to descriptively compare the Project Portfolio Management (PPM) Capabilities and bank performance between banks that are applying Project Management Office (PMO) practices and not.
 Design/methodology/approach: Empirical research has been performed through a survey using questionnaires to define the contribution of formal project management office practices in managing strategic initiatives in Indonesian banks. The data from 82 banks from a total of 115 banks in Indonesia based on the list of Indonesian Financial Authority were collected and analyzed using descriptive analysis with help of statistical tools SPSS 22.
 Findings: As a preliminary stage, this paper found that banks with formal project management office practices tend to be more effective in managing their strategic initiatives.
 Research limitations/implications: However, further analysis still needs to be performed to explore how project PPM capabilities and PMO practices influence the bank's performance positively.
 Originality/value: This study introduces how the project management office and project portfolio management practices in Indonesian Banks at glance and how its comparison those with and without project management practices.