Tailoring PMI and OGC frameworks for IT project portfolio management

Tese de Doutoramento - Programa Doutoral em Tecnologias e Sistemas de InformaçãoPrivate non-profit organizations that are dedicated to developing research and development (R&D) projects with the University, through a context of interface between Universities and companies, are currently recognized in Portugal as Technological Interface Centres. These organizations develop applied research projects between TRL 4 and 8 for companies in close collaboration with the research units of the Universities. As with any organization with no budget coming from the state, its main strategy is to efficiently and effectively manage the project portfolio to ensure control of execution costs as well as the expected quality of projects delivered to customers and partners. The currently available project portfolio management frameworks are not sufficiently clear as to how processes or practices suggested to practitioners should effectively be applied. In the specific field of Information Technology (IT), there is at least one framework for supporting portfolios management, but the level of detail in the adoption of the practices is (insufficiently) generic. This thesis intends to configure an IT project portfolios management framework, based on the coordinated (extended subsets) adaptation of the two main frameworks currently in the area: PMI and OGC. This configuration required the alignment between PMI and OGC frameworks, through a map of dependencies between processes, as well as the mapping between artefacts and processes. As a case study to test this framework, a Portuguese organization was chosen, formally recognized as a Technological Interface Centre, where two portfolios of IT projects in R&D contexts were characterized and analysed in light of the framework's techniques.As organizações privadas sem fins lucrativos que se dedicam a desenvolver projetos de investigação e desenvolvimento junto das Universidades, através de um contexto de interface entre Universidades e empresas, são atualmente reconhecidas em Portugal, como Centros de Interface Tecnológicos. Estas organizações desenvolvem projetos de investigação aplicada entre TRL 4 e 8 para as empresas, em colaboração estreita com as Unidades de Investigação das Universidades. Como em qualquer organização, sem orçamento proveniente do Estado, a sua estratégia principal é gerir com eficiência e eficácia o portfólio de projetos, de modo a garantir o controlo dos custos de execução, bem como a expetativa de qualidade dos projetos entregues aos clientes e parceiros. As frameworks de gestão de portfólio de projetos atualmente disponíveis não são suficientemente claras em relação à forma como processos ou práticas sugeridas aos profissionais devem efetivamente ser aplicados. No domínio específico das Tecnologias da Informação (TI) existe, pelo menos, uma framework de suporte à gestão de portfólios, mas o nível de detalhe na adoção das práticas é (insuficientemente) genérico. Com esta tese pretende-se configurar uma framework de gestão de portfólios de projetos de TI, a partir da adaptação coordenada (extended subsets) das duas principais frameworks atualmente existentes na área: a do PMI e a do OGC. A referida configuração exigiu o alinhamento entre frameworks do PMI e OGC através dum mapa de dependências entre processos, bem como o mapeamento entre artefactos e processos. Como estudo de caso para experimentar a referida framework, foi selecionada uma organização portuguesa, formalmente reconhecida como Centro de Interface Tecnológico, onde dois portfólios de projetos de TI em contextos de I&D foram caracterizados e analisados à luz das técnicas da referida framework.Este trabalho foi desenvolvido com o apoio financeiro da Associação CCG/ZGDV – Centro de Computação Gráfica

Stakeholder Conflict in Mergers and Acquisitions and the Importance of Post-Merger Integration

This doctoral thesis consists of three papers. The first paper theoretically reapplies Hirshleifer's (1991) paradox of power to stakeholder conflicts as a primary source of synergy impairment in mergers and acquisitions (M&A). It further extends the theoretical framework through focus on post-merger integration (PMI) as a mitigating factor in post-M&A value-decreasing combats. It outlines that mergers aiming for synergy can cause conflictual instead of cooperative actions within primary stakeholder groups due to violation of their interests. If acquirer management fails to counteract with high-quality PMI measures, the transaction will destroy stakeholder wealth due to deterioration of synergy. A stakeholder-oriented PMI is worth conducting up to the point where the net merger synergy still exceeds unresolved synergy impairment plus the direct cost of PMI. Applying the Cournot-Nash solution concept, the theory confirms that synergy potential grows with increasing target size. This means that so-called “merger of equals” have the highest synergy expectation and at the same time the lowest risk of synergy impairment due to missing incentives for the target stakeholders to oppose an acquisition. Nevertheless minor relative deal size encourages stakeholder conflict due to beneficial wealth transfers in favor of the target firm, provided that the conflict does not escalate. The second paper analyzes 1,035 effective US mergers and acquisitions in the period 2005-2014. It finds a significant negative long-run financial and operating performance measured by buy-and-hold abnormal returns and abnormal operating cash flow returns. On average, US acquirers achieve a -8.2% stock price underperformance and a decline in pre-tax operating cash flow returns of -3.1% in the subsequent 36 months. The paper confirms that cash-financed transactions and the takeover of private targets positively impact M&A profitability. Controlling for certain firm and deal characteristics, further determinants are identified and tested which firstly, negatively influence synergy realization in general, and secondly, encourage post-merger stakeholder conflicts that reinforce synergy impairment, or even lead to dis-synergy. Based on robust results of multivariate regression analyses on acquirer performance, this paper concludes that the main post-merger value-influencing factors are integration capacity, complementarity of economic environment, and decisiveness of stakeholder conflict. This ultimately justifies the theoretical foundation of the existence of post-merger stakeholder conflicts and the need for a well-managed PMI as a mitigating mechanism to improve M&A performance. The third paper empirically examines the post-merger stakeholder conflict hypothesis in M&A by applying a sample of 425 effective US transactions from 2005-2014. The theory claims that potential violations of primary stakeholder interests cause non-cooperative stakeholder actions and an impairment of merger synergy. A stakeholder-oriented post-merger integration (PMI) may serve as a value enhancing mechanism to mitigate the negative impact on long-term merger outcomes. The theory is tested by showing that a high-quality PMI with focus on the four dimensions of management attention, stakeholder information, integration support, and risk awareness (all measured by textual analysis of annual reports and publicly available information), on average results in a 22% higher acquirer stock return and an increase in operating performance of 4% over a three-year period compared to a portfolio of reference firms matched by size and book-to-market ratio. This paper also finds, as a result of high-quality integration, that improved employee productivity and customer demand positively influence long-run M&A performance. Finally, it is shown that acquirer synergy expectation, pre-deal M&A activity, growth prospects, as well as deal size drive PMI quality

Dynamic Capabilities: Innovation Project Portfolio Management

Innovation Project Portfolio Management (IPPM) practices are a dynamic capability that provides competitive advantage by dynamically adjusting the organisation’s portfolio of projects and resource allocation profile for the best innovation outcomes. A relatively new body of empirical research into IPPM practices is starting to generate findings related to IPPM practices and innovation outcomes. However this research is fragmented and lacks a unifying theoretical base. The resource-based view of strategy, in particular the dynamic capabilities approach, provides a theoretical framework to unify IPPM research. A ‘processes, positions and paths’ perspective on IPPM practices helps to clarify the ways that IPPM practices contribute to competitive advantage. Existing empirical research into the processes used for IPPM reveals some links to innovation outcomes, but does not try to explain causality. Improved understanding of the mechanisms responsible for competitive advantage through IPPM practices is found in research on positions (how IPPM processes draw upon and contribute to the underlying resource position) and paths (the role of past decisions and organisational paths in shaping IPPM processes as well as future options and decisions).14 page(s

Project Management in the Fourth Industrial Revolution

The Fourth Industrial Revolution (also referred to as Industry 4.0) is driven by a massive utilization of new technologies, such as robots, artificial intelligence, Internet of Things (IoT), Big Data, Quantum Computing and Quantum Communications, replacing humans by machines in certain tasks or the development of new or more efficient tasks. The Fourth Industrial Revolution is originating huge modifications in society and organizations. Human adaptation to the new paradigm is required, as it will have a high impact on jobs and on the required skills

Program Management Versus Portfolio Management in Defense Acquisition

Excerpt from the Proceedings of the Nineteenth Annual Acquisition Research SymposiumThis research performed a gap analysis on the existing Department of Defense (DoD) program management competency standards to determine if changes are required to fully adopt product portfolio management (PPM) strategies in defense acquisition. Current DoD program management standards are compared to the Project Management Institute’s Portfolio Management Professional certification standards to analyze alignment and gaps between the standards. Barrier to Implementation (BTI) scores are assigned to address the identified gaps in the DoD standard. The study found that the DoD program management competencies are on average 41% aligned with portfolio management industry standards. The DoD program management competencies are least aligned with the portfolio management domains of governance and strategic alignment. The composite BTI score indicates low to medium level of implementation barriers for most of the gaps. Results indicate that the DoD is capable of conducting PPM, and further research is needed to fully align the current competency standards with industry best practices. Defense acquisition senior leaders should consider formulating DoD portfolio management career field functional competencies to address congressional mandates for portfolio management implementation within the DoD.Approved for public release; distribution is unlimited

Program Management versus Portfolio Management in Defense Acquisition

Program Management / Faculty ReportAcquisition Research Program Sponsored Report SeriesSponsored Acquisition Research & Technical ReportsThis research performed a gap analysis on the existing Department of Defense (DoD) program management competency standards to determine if changes are required to fully adopt product portfolio management (PPM) strategies in defense acquisition. Current DoD program management standards are compared to the Project Management Institute's Portfolio Management Professional certification standards to analyze alignment and gaps between the standards. Barrier to Implementation (BTI) scores are assigned to address the identified gaps in the DoD standard. The study found that the DoD program management competencies are on average 41% aligned with portfolio management industry standards. The DoD program management competencies are least aligned with the portfolio management domains of governance and strategic alignment. The composite BTI score indicates low to medium level of implementation barriers for most of the gaps. Results indicate that the DoD is capable of conducting PPM, and further research is needed to fully align the current competency standards with industry best practices. Defense acquisition senior leaders should consider formulating DoD portfolio management career field functional competencies to address congressional mandates for portfolio management implementation within the DoD.Approved for public release; distribution is unlimited

Linking benefits to maturity models

Many organizations today need to deliver more complex products and services in a better, faster, and cheaper way. The business problems that some companies address require enterprise-wide solutions that call for an integrated approach and an effective management of organizational resources to achieve business objectives with an acceptable level of risk. A maturity model is a process improvement approach that provides organizations with the essential elements of effective change. It can be used to guide process improvement across a project, a division, or an entire organization. Maturity models help integrate traditionally separate organizational functions, set process improvement goals and priorities, provide guidance for quality processes, and provide benchmark for appraising current processes outcomes. The benefits management approach emerges as a complement to traditional management practices and proposes a continuous mapping of benefits, implementing and monitoring intermediate results. Benefits management reinforces the distinction between project results and business benefits. Based on a case study the authors show how a set of business objectives can be obtained from identifying, structuring and monitoring business benefits, supported by information technology enablers and organizational transformations, and as a result of a certain maturity level. The authors also state that the main focus of an investment success lies not only in technology implementation, but mainly in changes in organizational performance and business efficiency by means of improved processes and modifications in the way the work is done. We emphasize that the integration between a Maturity Model and a Benefits Management approach can increase the effectiveness of projects, programs or portfolios outcomes. Besides, this linkage can also improve decision-makers confidence that the investments done match the desired maturity stages and will then, with more probability, collect more value for businessesinfo:eu-repo/semantics/publishedVersio

Multi-level project governance: Trends and opportunities

© 2014 Elsevier Ltd and International Project Management Association. Project governance is important in ensuring successful project delivery. In this article we conduct a systematic investigation of previous research to provide a content-driven review of the literature, and to provide future research direction. We use the textual data mining software Leximancer to identify dominant concepts and themes underlying project governance research. Our findings indicate that agency and stakeholder theories have been adapted to the project governance context to a greater extent than other theories. Furthermore, we find differences in project governance research, published in project management journals compared to general management, IT and engineering journals. We conclude the paper by presenting a framework that links governance theories to the multiple organizational levels relevant to project governance

Visualising project interdependencies for enhanced project portfolio decision-making

Project management (PM) and project portfolio management (PPM) communities face challenges in the management of complex and highly interdependent project portfolios, as these interdependencies must be understood and managed for best project and portfolio outcomes. The research reported in this paper provides benefits to the global PM and PPM community by introducing a new tool and by providing insights into the factors affecting an organisationâs ability to understand project interdependencies (PI). Visual project mapping (VPM), the creation of graphical displays of projects and their interdependencies as a network of nodes and arrows, is shown to provide benefits by supporting communication and strategic portfolio decision making. The research also highlights the importance of the environment and culture as well as processes and tools and indicates that they work together to improve an organisationâs understanding of project portfolio interdependencie