The use of effectuation in projects: The influence of business case control,portfolio monitoring intensity and project innovativeness

Project management approaches are evolving to be more flexible and adaptive to meet the challenges associated with an increasingly complex and dynamic environment. However, potential changes in the underpinning logic supporting project decision making have scarcely been considered. We investigate the role of effectuation, a decision logic most commonly associated with entrepreneurship, as an alternative decision-making approach to the rational ‘causation’ logic that has traditionally underpinned project management processes. We develop and test a model to explore the portfolio- and project-level influences on the application of effectuation in project management. We find that portfolio governance mechanisms related to business case use and portfolio monitoring inhibit the use of effectuation, while project innovativeness is associated with increased use of effectuation. The paper contributes to research and practice by empirically investigating the antecedents to the use of effectuation decision-making logic in project and portfolio management through a multi-level model.     

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.     

Identifying,framing and managing uncertainties in project portfolios

Uncertainties in the organization, external environment and from single projects may hamper project portfolio performance unless managed properly. This paper introduces a framework on uncertainties and their management in project portfolios and pursues increased understanding on how managers can take uncertainty into account better. We explore uncertainties, how managers frame them as opportunities or threats, and the actual practice of managing them across ten R&D project portfolios. The framework on project portfolio uncertainties and their management is further refined based on the empirical results. As key contributions, we show evidence on the balanced existence of three types of uncertainties, the threat bias in their framing, and the dominance of rational, opportunity driven mechanisms of control in uncertainty management. We discuss the context-dependent practice of project portfolio management and the need to complement rational mechanisms with structural and cultural, for project portfolio management to become a dynamic capability.     

Project governance and stakeholders: a literature review

Despite the importance of stakeholders in project governance, project management literature lacks from an inclusive framework which defines the roles, relationships and positions of internal and external stakeholders inside and outside of the organization's governance structure. This paper has the purpose to report a review on project governance literature to draw attention to the context within which the stakeholders are positioned, to extract their roles and relationships inside and outside of the organization and to develop new avenues for research regarding stakeholders in project governance. The conducted thematic analysis reveals that there are three contexts influencing organization's approaches towards stakeholders: success, megaprojects and ethics. The developed conceptual framework illustrates that organizations are in direct contact with external stakeholders at the organizational level and project level. Strategic decisions made at the organizational level are operationalised at the portfolio level and influence the approach towards external stakeholders at the project level. Considering the lack of theories to support general doctrine of stakeholder theory, this research suggests that future governance researchers adopt a broader view in selection of theoretical lenses in order to include the social and psychological aspects of the management of external stakeholders.     

Practices,projects and portfolios: Current research trends and new directions

Project portfolio management (PPM) bridges strategy and project management. Traditional research in PPM has primarily investigated the rational, top-down and structural aspects of strategizing. By doing so, it has failed to focus on the underlying practices that are triggered by the strategy and how these practices frame strategy implementation. Practice-based research provides a methodological lens to explore the reality of strategic enactment through the project portfolio. Practice-based perspectives are under-represented in PPM research; therefore the aim of this paper is to provide an agenda for further practice-based research in PPM. Central to this agenda is a concern with various aspects of practice, including its discursivity, representation, dynamic capabilities, leadership and materiality.     

Microfoundations of project portfolio regulation in joint university-industry laboratories

Joint university-industry laboratories (joint U-I labs) consist of a new, yet little understood model of academic partnership with the firms, typically involving the establishment of a collaborative research unit to conduct research and development (R&D) projects. This type of collaboration faces an ongoing challenge in dealing with the tension between the development and deployment focus in the project portfolio. While several studies have investigated project portfolio management in a given firm, little is known about the interorganizational portfolio management and how the actors manage tensions in joint U-I labs. This study aims to investigate the microfoundations of project portfolio management in joint U-I labs. By combining the multiple-case study and at-home ethnography methods, we identified that the regulation approach explains how partners in joint U-I labs dynamically adjust and manage the project portfolio. Based on the empirical findings, we propose a new framework for project portfolio management in joint U-I labs: portfolio regulation. This framework consists of four processes: dual scouting, dual matchmaking, joint selection, and bridgemaking. These microfoundations enable actors to strategically regulate the portfolio by increasing/decreasing resources related to development or deployment. Our study explores how portfolio regulation evolves within a joint U-I lab through four stages: formation, learning, reconfiguration, and joint portfolio. The proposed framework contributes to interorganizational R&D portfolio management theory and joint U-I lab portfolio management practice.     

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.     

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.     

Management of project portfolios: Relationships of project portfolios with their contexts

Firms create and manage project portfolios to implement and renew their strategies. With the dominant contingency theory view, studies have primarily focused on project portfolios and their internal management whilst acknowledging that different practices are needed in different contexts. A strategic view of managing project portfolios, however, requires adopting a stronger external orientation, both within and outside of the firm. In this paper, we call for research on the management of project portfolios. We investigate the relationship between project portfolios and their context based on four theoretical alternatives: institutional theory, stakeholder theory, resource dependence theory, and sensemaking theory. The results offer explanations to the mechanisms connecting project portfolios with their context, call for a reformulation of portfolio success, and propose a new research agenda to revitalize the study of managing project portfolios in their contexts.     

Strategic change towards cost-efficient public construction projects

The cost of public construction projects is a central topic in project management. However, studies have primarily focused on cost at the project level, not on cost management at the portfolio level. In this paper, we take the perspective of a government agency, conducting a strategic initiative to increase cost-efficiency in their portfolio of construction projects. We use an action research approach to investigate the dynamics of the initiative and the implementation of resulting actions to achieve lasting change towards cost-efficiency. Co-creating actions for cost-efficiency together with the project teams was important for the success of the strategic initiative. For successful implementation, alignment of the objectives of the initiative with organizational strategy, and knowledge transfer between projects is central. This study expands the project management literature regarding strategic cost management of portfolios of construction projects and provides practical guidance for organizations.     

Project studies: What it is,where it is going

Project organising is a growing field of scholarly inquiry and management practice. In recent years, two important developments have influenced this field: (1) the study and practice of projects have extended their level of analysis from mainly focussing on individual projects to focussing on micro- as well as macro-level concerns around projects; and (2) there has been a greater interest in different kinds of scholarly inquiry. Taken together, these two developments call for closer scrutiny of how the levels of analysis and the types of inquiry are related and benefit each other, and of the explanations of project practices they could offer. To discuss avenues for future research on projects and project practice, this paper suggests the notion of project studies to better grasp the status of our field. We combine these two sets of ideas to analyse the status and future options for advancing project research: (1) levels of analysis; and (2) type of research. Analysing recent developments within project studies, we observe the emergence of what we refer to as type 3 research, which reconciles the need for theoretical development and engagement with practice. Type 3 research suggests pragmatic avenues to move away from accepted yet unhelpful assumptions about projects and project organising. The paper ends with an agenda for future research, which offers project scholars a variety of options to position themselves in the field of project studies, and to explore opportunities in the crossroads between levels of analysis and types of research.     

Project portfolio management information systems’ positive influence on performance – the importance of process maturity

Companies increasingly support their project portfolio management processes with specific software, and the market for IT solutions is growing. While project portfolio management information systems (PPMIS) promise to improve the quality of the management process and eventually portfolio performance, it is unclear whether they actually deliver on this promise. We lack empirical evidence regarding the actual benefits of PPMIS and knowledge on the conditions under which PPMIS application is most beneficial. Using a sample of 181 project portfolios, this study shows for the first time that PPMIS application is overall positively associated with the quality of portfolio management processes and project portfolio success. However, moderation analyses further reveal that these effects only materialize when formalization of single project management, project portfolio management, and risk management are sufficiently high. Surprisingly, the benefits of PPMIS application do not depend on portfolio complexity (size, project interdependency, dynamics).     

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.     

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.     

Hard and soft projects: a framework for analysis

This paper provides clarification on the use of the terms ‘hard' and ‘soft' in the context of project and program management, by exploring what it means for a project to be hard or soft. This paper draws on the authors' practice based research into large organisational change programs in a variety of contexts, and the literature on project management, systems thinking and evaluation. A framework for exploring the hardness and softness of project process and outcomes is provided. It acts as an aid to structured discussion and informed decision making about the application of methods for managing projects and programs and the appropriate methods for evaluating their success. This framework is designed to aid in the transfer of lessons learned to practice by offering a common point of comparison between projects, and has potential for use as a predictive aid to resourcing. Its use is demonstrated in three cases.     

Construction programme management theory and practice: Contextual and pragmatic approach

The combination of the economic pressures, maturity and limitations of project management and the dynamic nature of the construction industry clients’ requirements has triggered the need for the adoption and implementation of programme management as a de facto means of aligning, coordinating and managing a portfolio of construction projects to deliver benefits that would not be achievable if the projects were managed independently. Despite the benefits achievable in the practice of programme management, the awareness and understanding of its practice in the construction industry remains vague as a result of a lack of clarity and inconsistencies associated with its definitions. To fully understand the core essence of programme management, it is imperative that its quintessential definition, practice and context are clearly understood and documented. This research is based on a pragmatic synthesis of literature review and industrial questionnaire survey which establishes the relationship, similarities and differences between programme management and project management and subsequently draws comparisons of the practices relevant to programmes between programme and non-programme organisations. The research further highlights the implications of unawareness and lack of understanding that can affect the effective implementation and practice of programme management in the UK construction environment.     

基于在险价值的房地产项目组合管理的风险平衡研究

对房地产企业而言,在多项目管理的环境中,有效的项目组合管理对企业工程项目管理有着关键性的作用。引入实物期权来衡量房地产项目在投资决策阶段的价值,用蒙特卡洛模拟得出项目实物期权价值的概率分布;并引入风险价值的概念,在VaR、CVaR 的基础上,针对项目的实物期权价值提出了在险实物期权价值、条件在险实物期权价值（RoVaR和C-RoVaR）来衡量房地产项目的风险。建立了项目组合平衡模型,用来描述合适的潜在投资项目来平衡目前项目组合的风险,对投资决策提供支持,同时概括了项目组合平衡的基本步骤。     

Using an interactive schedule simulation platform to assess and improve contingency management strategies

An understanding of the dynamic interactions between resources and the management decisions that control them is critical to effectively manage contingencies during the execution phase of a project. Hence, the objective of this paper is to study each resource decision within the context of sequences of decisions. This allows the consideration of dynamic interactions between resources, and designs control responses that account for uncertain outcomes and that minimize contingencies. It is hypothesized that the success of achieving project objectives and priorities is dependent on understanding ways of developing coherent management decision sequences. For given project priorities and outcomes, such decision sequences are defined as strategies. This paper proposes and implements a simulation based method to assess and improve alternative decision strategies. The theoretical contribution of this research is that it develops foundational simulation based methods that support the study of construction decision-making as a dynamic control problem.     

Project-based and temporary organizing: Reconnecting and rediscovering

In recent years, the linkages between project management and organization theory have become stronger. In an attempt to address this development, this paper analyzes the research on temporary and project-based organizing. It especially discusses the development associated with the EGOS sub-themes on project organizing and the potential avenues for future research. The paper also summarizes the key findings from the included papers in the special issue on project-based and temporary organizing, which is based on papers from the EGOS conference in 2013. One key argument is that project organizing needs to develop along three lines: new empirical contexts, new theoretical/conceptual issues, and new research methodologies.