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.     

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.     

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.     

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.     

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.     

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.     

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 moderating effect of risk on the relationship between planning and success

Project planning is considered to be critical for project success. However, recent literature questions whether planning has similar importance in various contexts. This paper investigates the effectiveness of planning through an analysis of 183 project manager–supervisor dyads. Results show that the level of risk moderates the impact of planning on success, and in different ways for various success measures. Practical implications of these results suggest project managers to put more emphasis on planning in high risk project situations in order to meet project efficiency, whereas project steering committees to be more involved in approving plans of low risk projects to support benefit realization.     

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.     

Software development project success and failure from the supplier's perspective: A systematic literature review

In this paper, we consider software development project success and failure from the supplier's perspective. First we clarified concepts in order to be able to exclude review articles on in-house projects, continuous services, the customer's perspective, and software product development, with the aim of providing valid results for supplier firms. We divided success criteria into project success and project management (PM) success, and, in seven articles, identified three success criteria from the supplier's perspective: customer satisfaction, short-term business benefits, and long-term business benefits. In contrast, no definition of software development project failure was found. Articles were found in seven different journals, showing that knowledge on software development project success from the supplier's perspective is fragmented. This impedes the growth of knowledge on this topic.     

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.     

Reconceptualising mega project success in Australian Defence: Recognising the importance of value co-creation

Recent literature in project management has urged a re-conceptualisation of projects as a value co-creation process. Contrary to the traditional output-focused project methodology, the value creation perspective argues for the importance of creating new knowledge, processes, and systems for suppliers and customers. Stakeholder involvement is important in this new perspective, as the balancing of competing needs of stakeholders in mega projects becomes a major challenge in managing the value co-creation process. In this study we present interview data from three Australian defence mega projects to demonstrate that senior executives have a more complex understanding of project success than traditional iron triangle measures. In these mega defence projects, customers and other stakeholders actively engage in the value creation process, and over time both content and process value are created to increase defence and national capability. Value created and captured during and post projects are the key to true success.     

Exploring the roles of portfolio steering committees in project portfolio governance

Governing project portfolios engages different actors in organizations including portfolio managers, portfolio officers, top managers, and others who may team up as portfolio steering committees. While portfolio steering committees play a regular role in project portfolio governance, their role is still unclear. Through an in-depth multiple case study in three Danish companies, the roles of portfolio steering committees were explored. The results showed that portfolio committees may play three distinct roles in portfolio governance: a) communication and consolidation role, b) negotiation role, and c) decision making role. The results challenged the notion that portfolio committee meetings are the place and time to make collective decisions on the portfolio, rather, portfolio steering committees might unintentionally become or intentionally be used for other purposes than decision making. The empirical evidence of the study proposes that these three roles might be related to two governance design factors: frequency and duration of committee meetings.     

The moderating effect of program context on the relationship between program managers' leadership competences and program success

We investigated the moderating effect of program context on the relationship between leadership competences of program managers and program success. Leadership competence was measured as the combination of intellectual competence (IQ), managerial competence (MQ) and emotional competence (EQ). A worldwide cross-sectional survey using the Leadership Dimensions Questionnaire (LDQ) and a program context and success questionnaire yielded 79 responses. Moderated hierarchical regression analyses (MHRA) were used to test the moderating effect of program context, which is characterized by organizational fit, program flexibility, organizational stability and resource availability. Results showed that program context positively moderates the relationships between program managers' IQ respective MQ with program success. However, the relationship between EQ and program success is lowered to insignificance in the presence of context. Managerial and theoretical implications are discussed.     

The transformative effect of top management governance choices on project team identity and relationship with the organization — An agency and stewardship approach

This study focuses on the relationship and identity changes within and between a project team and its organization following top management intervention in the context of a large international construction project. The study follows the project-as-practice orientation, examining the actions and behaviors of the project team through participant ethnography in the “praxis” of the project site over its entire duration. The longitudinal case allows the examination of the way the transition process established a new governance culture undermining the initial trust-based one and changed it from a virtual absence of mechanisms toward far more potent mechanisms of control, monitoring, and punishment. Simultaneously, the initial stewardship relationships and collectivist identity of the project team shifted toward agency relationships and individualistic identity. The triggers for the transformation process were identified as CEO succession, project failure, top management intervention driven changes in governance mechanisms, and perception of organizational betrayal of the project team.     

The impact of contractors’ attributes on construction project success: A post construction evaluation

The success of construction projects is a fundamental issue for most governments, users and communities. In the literature that deals with construction project success and causes of time and cost overruns in the construction industry, there is some literature that highlights the role of the contractors in project success. While most studies rank contractors’ success attribute from tendering, prequalification, and a long term historical perception perspective, this paper aims to study the impact of contractors’ attributes on project success from a post construction evaluation perspective to identify what critical success factors (CSFs) that greatly impact the success of project. In an attempt to understand and investigate this impact, a questionnaire survey is used to establish construction professionals’ perception of CSFs of contractors that greatly impact on the success of construction projects. Factor analysis reveals nine underlying clusters namely :(i) safety and quality; (ii) past performance; (iii) environment; (iv) management and technical aspects; (v) resource; (vi) organisation; (vii) experience; (viii) size/type of pervious projects; and (ix) finance. Logistic regression techniques were used to develop models that predict the probability of project success. Factors such as turnover history, quality policy, adequacy of labour and plant resources, waste disposal, size of past projects completed, and company image are the most significant factors affecting projects success. Assuming that project success is repeatable, these findings provide clear understanding of contractors’ performance and could potentially enhance existing knowledge of construction project success.     

Exploring the value of project management: Linking Project Management Performance and Project Success

The literature on Project Management (PM) shows that, in spite of advancement in PM processes, tools and systems, project success has not significantly improved. This problem raises questions about the value and effectiveness of PM and PM systems. This paper reports a research study which tests the relationship between PM performance and project success drawing from empirical data on PM professionals working in UAE project-based organisations.     

Understanding project interdependencies: The role of visual representation,culture and process

Project portfolio management is central to many organizations' strategic processes and requires consideration of multiple factors and the ability to envision alternative future consequences to support strategic project portfolio decision making. Complex project portfolios with multiple project interdependencies are characteristic of many project environments, yet existing methods do not provide the clear understanding of project interdependencies that is required.     

A conceptual model for project management of exploration and production in the oil and gas industry: The case of a Brazilian company

The objective of this study was to obtain a better understanding of factors that influence Exploration and Production (E&P) project management success and corporate financial performance. The study follows structural equation modeling (SEM) methodology to achieve greater understanding of the intricate network of relationships between variables involved in E&P project management. A comprehensive theoretical framework was needed to formulate the conceptual basis of research. Observation of the real world and practical experiences were also important. To that end, we conducted a case study in a large Brazilian oil company. Field research was essential because of the lack of similar studies in the oil and gas sector. The model developed is a theoretical construct known as a structural and measurement model (set of latent variables, observed variables and hypotheses, depicted in a path diagram). This model contributes significantly to the company because it is a global representation of the main factors for improving E&P project management. However, the findings should be interpreted with caution because adjustment and validation of the theoretical model were not performed.     

Research into the moderating effects of progress and quality performance in project dispute negotiation

Project disputes are inevitable. However, for disputes to be settled, a contractor is faced with the dilemma of choosing between an extension of the time for completion under its entitled rights, and expediting to avoid delay. In order to decide which strategy is the most beneficial, this paper explores the moderating effects of progress and quality performance on the relationship between bargaining power (dependent variable) and its critical factors (independent variable). To achieve this, we conducted a questionnaire survey. First, through a study of the literature and expert interviews, we identified 11 factors of bargaining power (as well as which ones were the most critical) using a principal component analysis to calculate the factors' influence weight on bargaining power. Second, we adopted moderated multiple regression (MMR) analysis to examine how progress and quality performance affect the relationships between these critical factors and bargaining power. The result suggests that there are nine MMR models that have a significant moderating effect on these relationships. We then identified six of these models with the strongest relative moderating effect. The results illustrate that progress and quality performance can help improve negotiation outcomes. Therefore, when project disputes occur, the contractor's best strategy is to strive to reduce the project time loss, guarantee the quality of the project, and gain the owner's recognition, which will help to resolve the project dispute successfully through negotiation, and achieve their shared intended goal.