The three roles of a project portfolio management office: Their impact on portfolio management execution and success

Project portfolio management offices (PPMOs) are a subset of project management offices (PMOs) that handle collections of multiple single projects and programmes, i.e. portfolios. PPMOs are centralised organisational units that cater to the demands of various stakeholders by performing specialised tasks. They are initiated by their organisation's leadership in response to increasing management challenges originating from project portfolios. Although there has been considerable research on PMOs in general, not only a clear understanding of multi-project PMOs' activity patterns set in specific contexts like project portfolio management, but also both existence and mode of multi-project PMOs' contribution to successful performance are still lacking. By quantitatively analysing PPMOs in 278 portfolios, we identify three different activity patterns, which are interpreted as distinctive roles. We show a significant positive effect of PPMOs' coordinating and controlling roles on performance in terms of project portfolio management quality, which is a predictor of portfolio success.     

Multiproject lineage management: Bridging project management and design-based innovation strategy

Innovation-based strategies are widely recognized as key drivers to maintain competitive advantage. The design and strategic literature underline the possibility of triggering a multiproduct value-expansion dynamic based on the creation of new concepts dynamically twinned with corporate strategy. However, the multiproject-management literature—portfolio, program, and platform—lags behind and remains focused on ex ante coordination, resource allocation and selectionism. Thus, there are still few indications of the processes that stimulate and orient continuous, profitable multiproject creative expansion. Bridging the multiproject-management literature and design theory, we propose a model of multiproject lineage management (MPLM), which focuses on the key processes that drive exploration efforts and shape innovation trajectory. We conduct a multiple longitudinal case analysis in the automobile sector. Based on this analysis, we expose the principles of MPLM, mapping the roles of corporate, program and project management within a global expansion project. Finally, we highlight our contributions to managerial practices and the related literature.     

Advancing project and portfolio management research: Applying strategic management theories

This paper focuses on the application of strategic management theories to Project Management and Project Portfolio Management research, specifically the Resource-Based View, Dynamic Capabilities, and Absorptive Capacity. A literature review and four research experiences illustrate the advances achieved through the use of these three theoretical perspectives, and contribute to the development of this field by providing examples and guidance for theory development and future research. Commonalities between the research examples include a strong strategic focus, recognition of the importance of knowledge and learning, and research questions seeking understanding and explanation. These research experiences outline the successful application of strategic management theories to a wide range of contexts, using diverse methodologies at a variety of levels of analysis. The findings indicate a broad potential for further fruitful research stemming from the relatively recent application of strategic management theories to Project Management and Project Portfolio Management research.     

Behavior of internal stakeholders in project portfolio management and its impact on success

Stakeholder behavior and stakeholder management are key success factors within project portfolio management (PPM). This empirical study of 197 project portfolios investigates the effect of the intensity of engagement (IoE) of portfolio-internal stakeholders on project portfolio success. We show that the effect of stakeholders is phase-specific and that role clarity as a measure of PPM maturity affects the nature of the relationship between the IoE of stakeholders and portfolio success. The effects of the IoE of senior managers on success are not clearly positive with regard to strategic portfolio structuring and are even negative in operative portfolio steering in established PPM systems. In immature PPM systems, line managers tend to take advantage of their position in resource management. Surprisingly, the influence of portfolio managers in portfolio steering is insignificant. Altogether, this paper shows the diverse effect of the IoE of stakeholders on portfolio success. This study enriches project research by applying stakeholder theory to the project portfolio context and offers practical guidance for further professionalizing PPM.     

Formalization of project portfolio management: The moderating role of project portfolio complexity

Companies frequently implement formalization to improve success. Previous research has found supporting evidence for the performance-enhancing effects of formalization in both single project management and project portfolio management. However, there is no research on how formalization at the project level interacts with formalization at the portfolio level, or on how this interaction may impact success. This study investigates the interaction of formalization at both levels and examines the moderating effect of project portfolio complexity on formalization. Using a sample of 134 firms, this study shows that single project management formalization and, likewise, portfolio management formalization are directly connected to portfolio success. Simultaneous formalization at these two levels delivers a complementary effect, resulting in an increase in success that is more than additive. A contingency analysis confirms that the proposed positive effects become more prominent if complexity is high. Complexity measured as project interdependency has a stronger moderating effect than complexity measured as portfolio size.     

The influence of business strategy on project portfolio management and its success — A conceptual framework

Firms are facing more difficulties with the implementation of strategies than with its formulation. Therefore, this paper examines the linkage between business strategy, project portfolio management, and business success to close the gap between strategy formulation and implementation. Earlier research has found some supporting evidence of a positive relationship between isolated concepts, but so far there is no coherent and integral framework covering the whole cycle from strategy to success. Therefore, the existing research on project portfolio management is extended by the concept of strategic orientation. Based on a literature review, a comprehensive conceptual model considering strategic orientation, project portfolio structuring, project portfolio success, and business success is developed. This model can be used for future empirical research on the influence of strategy on project portfolio management and its success. Furthermore, it can easily be extended e.g. by contextual factors.     

Enforcing strategic fit of project portfolios by project termination: An empirical study on senior management involvement

Project portfolios are vehicles for strategy implementation. Senior management should terminate projects no longer conforming to corporate strategy in order to ensure strategic fit. This paper investigates how rigorous termination of bad and troubled projects affects portfolio effectiveness and senior management's decisive role in this context. We introduce the concept of project termination quality, analyse its consequences for strategic fit and how it is affected by senior management involvement. Using a quantitative longitudinal study of a sample of project portfolios, we show that termination quality positively affects strategic fit. We also show a positive, but inverted u-shaped relationship between senior management involvement and termination quality. We conclude that there is an optimal degree of involvement, beyond which an additional involvement of senior managers results in negative effects.     

Impact of customer integration on project portfolio management and its success—Developing a conceptual framework

The growing number of company projects requires comprehensive management, project portfolio management (PPM), for strategic alignment and efficient use of resources. In parallel, companies face customers demanding higher value, and joint value creation with customers is considered a key success factor in the future. Project portfolios delivering products and services for customers implicate a link between PPM and an increased customer focus. Combining the research fields of marketing and PPM for the first time, this study proposes customer integration into PPM. I develop a framework describing the impact of customer integration into PPM on project portfolio success mediated through relationship value. Furthermore, the study describes relevant aspects for customer integration on the project portfolio level and identifies interfaces for cross-functional integration of a customer portfolio representative within the PPM process. The findings and limitations of this study are discussed, and further research is suggested.     

Contemporary project portfolio management: Reflections on the development of an Australian Competency Standard for Project Portfolio Management

Project portfolio management is an emerging aspect of business management that focuses on how projects are selected, prioritised, integrated, managed and controlled in the multi-project context that exists in modern organisations. Competency standards have been developed by professional bodies for project managers. However, to date there has been no attempt to develop a competency standard at the portfolio management level. This paper examines the process for development of the first performance-based competency standard for project portfolio management and identifies how this contributes to the body of knowledge in both project portfolio management and project management more broadly. The intent is to use the Standard to improve project portfolio management capability and practice in organisations, which in turn promotes efficient resource use and more profitable project outcomes. Specific issues regarding Australian practice are described, along with implications for how this may impact Australian practice in the future.     

A Real Option based Six Sigma project evaluation and selection model

Identification and selection of Six Sigma projects are one of the most frequently discussed issues in the Six Sigma literatures today. In this paper a two-stage methodology has been proposed based on (i) Real Option Analysis for evaluating the value of the project to improve the managerial flexibility (ii) a zero–one integer linear programming model for selecting and scheduling an optimal project portfolio, based on the organization's objectives and constraints. The methodology is illustrated through a case study from petrochemical industry carried out during 2007. The study contributes to managerial practices by identifying a new way of valuing the Six Sigma projects through Real Option Analysis by considering various kinds of risks. Resource-constrained environment has been chosen to test the proposed approach of selection of project portfolio and the model is validated with a detailed discussion.     

An empirical investigation on how portfolio risk management influences project portfolio success

Project risk management is recognized as essential in order to cope with the challenges arising from the environment. Literature suggests a portfolio-wide perspective for managing risks in project portfolios. However, research on risk management and its success in a project portfolio context is scarce. This study examines how portfolio risk management influences project portfolio success. Using a sample of 176 firms, this study provides evidence that portfolio risk identification, the formalization of the portfolio risk management process, and risk management culture directly influence risk transparency, whereas risk prevention, risk monitoring, and the integration of risk management into project portfolio management are directly connected to risk coping capacity. The findings also suggest that both risk transparency and risk coping capacity have a direct impact on project portfolio success. However, the results did not confirm the hypothesis that risk transparency and risk coping capacity have a complementary effect on success. Implications for scholars and project portfolio managers are discussed.     

The integration of ideation and project portfolio management — A key factor for sustainable success

Effective management of single projects is no longer sufficient. In today's business market, proactive management of the whole project portfolio has become increasingly important for achieving long-term success and competitive advantage. At the front end of projects, opportunities are discovered, ideas are created, and the foundation for later project, portfolio, and, eventually, corporate success is laid. This paper contributes to the project management body of knowledge by combining the front end view on projects with the holistic view of managing project portfolio landscapes. It focuses on establishing a framework for conceptualization of the relationship between ideation and project portfolio management in product development environment by relating ideation portfolio management, front end success, and project portfolio success, and lays the groundwork for further empirical research. The overarching topic I address is the conceptualization of how ideation can facilitate and sustainably improve portfolio success in the product development environment in the long-term.     

A memetic paradigm of project management

This paper aims to fuel the discussion on examining project management research from different perspectives. A new memetic approach to project management is presented that promotes a new way to examine the discipline of project management. Project management is claimed to be a memeplex with the language and stories of its scholars and practitioners at its core; shaping and restricting human behaviour, and creating impoverished mental models of project management. The paper suggests that a new memetic approach to project management will help lift restrictions imposed by the traditional research approach, and enrich our mental maps of project management to serve us better.     

From open innovation projects to open innovation project management capabilities: A process-based approach

How do organizations use the experience from projects to build a systematic capability to manage open innovation projects? Drawing upon Project Management and Open Innovation capability-building frameworks, we studied the crusade of an industrial company to create an open innovation capability. In that sense, we applied an Event Structure Analysis (ESA) to evaluate the event network, which evidenced a four-stage process: closed mode, open driver, vanguard project, project-to-organization. Results demonstrate, from causal connections, that the referred capability can be leveraged from the execution of key projects, especially from a vanguard project. Our study contributes to Project Management theory by reveling that previous experiences in both project and organizational levels offer a fertile ground for the emergence of a vanguard project. For the open innovation field, this paper provides a project-oriented approach to the discussion of open innovation's adoption in mature firms.     

Multi-criteria performance analysis for decision making in project management

This study is focused on decision support in the context of product and service development projects. Decision support requires the capacity to characterize the current state of the project (performance evaluation) and the decision-maker's point of view. However, the different projects’ stakeholders do not have the same needs in terms of performance evaluation to support their decision-making processes. Furthermore, in some cases controlling project performance using the elementary components of the Iron Triangle (Cost, Time and Quality) alone seems inefficient. This paper proposes a new multi-dimensional Project Performance Measurement System that would enable managers to deal with the volume of data. The proposition integrates the only character of each project (tasks, objectives, decision-makers personality and competences), several good practices in terms of universal project management dimensions on the one hand, and in terms of performance analysis on the other hand. Then, we show how an aggregation tool called MACBETH is used to analyze the performance measures according to project managers’ own performance interests. A case study illustrates the proposed system.     

A history of project management models: From pre-models to the standard models

The basis of project management theory includes, as is the case of many management theories an “articulated collection of best practices”, drawn for the most part from the study of major North American engineering projects. There is no history of project management comparable to the ones that have been produced for marketing, accounting or strategic analysis. Very few historians have studied projects as a specific activity and academics in project management are rarely specialists with archives or have familiarity with historical reasoning. Defining the historic trajectory of project management implies specifying the scope of what this history includes beforehand. To write a history of project management we must specify the object of this “historicization”. What are we dealing with when we talk about “history of project management”? A first objective of this paper is to define object and scope of this history. The author suggests a difference between “managerial practices” and “management models” and recommends writing a history of models rather than a history of singular practices. A second objective is to sketch the transition between pre-models of project to the standard North American model.     

Barriers towards integrated product development — Challenges from a holistic project management perspective

The basis for product development in many large industrial companies is a traditional project management method positing non-overlapping phases, independent activities, and a dedicated project team. Research findings indicate that the use of integrated product development methods increases performance compared to traditional methods in contexts of complex problem solving, which are disruptive and non-linear. Even though integrated product development has been the focus of a large number of research studies, these studies mostly focus on identifying success criteria and improving performance, while the requirements for implementing integrated product development remain under-researched. This study takes a more holistic project management perspective and identifies both the challenges and the requirements of successful implementation through an in-depth case study. It was found in a chosen case company that successful implementation requires awareness and skills of integrated product development in senior management, as well as a set of cross-organizational project governance structures.     

浅谈施工项目管理信息化建设

信息化建设是建设项目施工过程管理的迫切需要.本文分析了施工项目管理信息化的必要性,并探讨如何建立施工项目管理系统.