Evaluation of project interdependency visualizations through decision scenario experimentation

The interdependence between projects in complex portfolios sharpens the challenge of project portfolio decision making. Methods that assist with the evaluation of data can address decision challenges such as information overload and time pressure. A decision simulation in a controlled experiment explored the use of visual representations of project interdependency data to support project portfolio decision making. Dependency matrices and network mapping were compared with non-graphical lists of dependency data. The findings show that the type of tool used may influence the quality of the resulting decision. Using visual tools, particularly network mapping displays, is correlated with the best results.The research provides a practical example of experimentation in project and portfolio management research and illustrates how such studies can complement organization-based research. Findings of interest to management include the importance of ensuring adequate time for decision processes and the potential benefits from using visual representations of project interdependence. © 2012 Elsevier Inc

A System Dynamics Approach for Strategic Analysis of Project Portfolio Interdependencies

Understanding project portfolio interdependencies is essential in order to manage projects in complex and dynamic environments. Project environments across the globe are becoming increasingly complex, creating heightened challenges for project management (PM) and project portfolio management (PPM). Current research indicates that organisations globally fall short of understanding how project interdependencies affect portfolio outcomes. The literature on System Dynamics (SD) suggests that SD may be a suitable tool to encapsulate the âbigger pictureâ of PPM interdependencies. This research applies a client interactive approach using SD modelling techniques to represent interdependencies within a project portfolio. A case study was conducted with the Royal Australian Navy (RAN) to investigate SD as a potential tool for the management of project portfolio interdependencies The outcomes of the case study suggest that SD has the ability to challenge an organisationâs perceptions of their project portfolio interdependencies and to enhance strategic decisionmaking capabilities

Dynamic capability through project portfolio management in service and manufacturing industries

© 2010, © Emerald Group Publishing Limited. PurposeThe purpose of this paper is to summarise a recent doctoral thesis on the relationship between project portfolio management (PPM) and competitive advantage in service and manufacturing organisations. Design/methodology/approachThis two-phase mixed method study comprises a quantitative questionnaire-based survey and a qualitative multiple-case study to address the “what” and the “how” of the research questions. FindingsThis paper adopts a “dynamic capabilities” perspective, drawing on organisational learning theory to explain the path-dependent nature of PPM capability development and how PPM capabilities work with the resource base to enhance competitive advantage. Findings support prior PPM studies and suggest a positive relationship between structured PPM capabilities and improved outcomes. The research compares service and manufacturing environments; future challenges are likely to result from the increasing blurring of the boundaries between service and manufacturing industries. Practical implicationsThe research has four main practical outcomes: development of a model representing the overall PPM capability; a benchmark for and guidance on specific PPM processes and methods; guidance on the types of organisational learning investments that enhance the establishment and evolution of PPM capabilities; and the initial development of an outcomes and learning-based maturity model for PPM capabilities. Originality/valueThis paper produces the first benchmark of innovation PPM capabilities in Australia, and is the first to include service product-focused portfolios. It is the first study that identifies PPM capabilities as dynamic capability, allowing existing research to be viewed through the dynamic capability lens and, more importantly, providing a theoretical underpinning that may influence future research and practice

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

Eyes Wide Shut: Expanding the view of portfolio management

This conceptual paper examines our existing world-view portfolio is defined the management of that portfolios from that of project and new product development portfolios to other portfolios that exist in an organisation, such as the asset portfolio, resource portfolio and ideas portfolio. Portfolios do not exist in isolation in an organisational context, but instead overlap and interact. This paper argues that there is a need to move another step higher, and examine the relationships between portfolios of projects and related activities across an organisation in order to optimise outcomes across the organisation. We propose the need for `enterprise portfolio management and suggest that this approach has the potential to improve organisational efficiency, and in the longer term could be a source of competitive advantage

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

Project portfolio management for product innovation

The purpose of this paper is to create a benchmark and identify best practices for Project Portfolio Management (PPM) for both tangible product-based and service product-based development project portfolios. A questionnaire was developed to gather data to compare the PPM methods used, PPM performance, PPM challenges, and resulting new product success measures in 60 Australian organisations in a diverse range of service and manufacturing industries. The paper finds that PPM practices are shown to be very similar for service product development project portfolios and tangible product development project portfolios. New product success rates show strong correlation with measures of PPM performance and the use of some PPM methods is correlated with specific PPM performance outcomes. The findings in this paper are based on a survey of a diverse sample of 60 Australian organisations. The results are strengthened by comparisons with similar North American research; however, they may not be representative of all environments. Research in other regions would further qualify the findings. As each organisation's PPM process is unique, case study methods are recommended for future studies to capture more of the complexity in the environment. The paper shows that PPM practitioners and executives who make decisions about the development of tangible products and/or service products will benefit from the findings. This paper extends the existing understanding of PPM practices to include service development project portfolios as well as tangible product development project portfolios and strengthens the links between PPM practices and outcomes

Value constructs in multi-stakeholder environments that influence project portfolio decision making

Abstract: A key goal for project portfolio management (PPM) is to maximize strategic value across the portfolio. In certain industries, particularly in the context of non-commercial sectors, the ‘value’ generated by the portfolio may not always fit with typical PPM frameworks that emphasize financial value. Furthermore project and portfolio ‘value’ are complex phenomena due to the multiple and sometimes contradicting expectations demanded by multiple stakeholders that participate in and influence the ways that PPM decisions incorporate value. This paper draws on organization, business, stakeholder and project management literature to consider different perspectives of value, and integrates stakeholder theory and sensemaking in its investigation of value in multi-stakeholder portfolio environments. It highlights the key question ‘Value for whom, value by whom’ and proposes that multiple case-studies of a diverse sample of project-based organizations would be useful to address this question. A Hybrid Delphi study using expert panels is also proposed to triangulate the findings. Keywords: project portfolio management, value, stakeholders, sensemaking, decision makin

Learning investments and organizational capabilities: case studies on the development of project portfolio management capabilities

Purpose The purpose of this paper is to improve understanding and provide guidance for investments in organizational learning mechanisms for the establishment and evolution of organizational capabilities such as project portfolio management (PPM) and project management capabilities. Design/methodology/approach A multiple-case study research project investigates the development of PPM capabilities in six successful organizations across diverse industries. Findings The research indicates that PPM and organizational learning are dynamic capabilities that enhance an organization's ability to achieve and maintain competitive advantage in dynamic environments. PPM capabilities are shown to co-evolve through a combination of tacit experience accumulation, explicit knowledge articulation and explicit knowledge codification learning mechanisms. Although all three learning mechanisms are important throughout the establishment and evolution of PPM capability development, the research indicates that the development of an effective PPM capability will require particularly strong investments in enhancing tacit experience accumulation mechanisms and explicit knowledge codification mechanisms during the initial establishment or during periods of radical change to the PPM process