...International Journal of Project Management Vol. 17, No. 4, pp. 207±216, 1999 # 1999 Published by Elsevier Science Ltd and IPMA. All rights reserved Printed in Great Britain 0263-7863/99 $ - see front matter PII: S0263-7863(98)00032-5 An integrated framework for project portfolio selection NP Archer* and F Ghasemzadeh Michael G. DeGroote School of Business, McMaster University, Hamilton, Ontario, Canada L8S 4M4 The task of selecting project portfolios is an important and recurring activity in many organizations. There are many techniques available to assist in this process, but no integrated framework for carrying it out. This paper simpli®es the project portfolio selection process by developing a framework which separates the work into distinct stages. Each stage accomplishes a particular objective and creates inputs to the next stage. At the same time, users are free to choose the techniques they ®nd the most suitable for each stage, or in some cases to omit or modify a stage if this will simplify and expedite the process. The framework may be implemented in the form of a decision support system, and a prototype system is described which supports many of the related decision making activities. # 1999 Published by Elsevier Science Ltd and IPMA. All rights reserved Keywords: Project portfolio selection, project management, integrated framework, decision support Introduction Project portfolio selection and the associated activity of managing selected projects throughout their...
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...Project Portfolio Management Project Portfolio Management is a methodology to manage a company’s projects in a similar way that financial manager manages the company’s cash flow and related finances. According to Rouse (2013), “PPM (project and portfolio management) is a strategic prioritization methodology employed to analyze and manage current or proposed projects within an organization”. The purpose is to determine the best available sequence and group of projects to achieve organizational strategic objectives from concept to conclusion. Project Portfolio Management aims to align the projects, investments and resources with organizational priorities. Project Portfolio Management is a continuous process which comprises of project data collection, evaluation of each project, optimizing the performance of projects in portfolio and resources of company and execution of portfolio work. Companies have deployed project portfolio management solutions for establishing efficient processes to advantage of their IT infrastructure for achieving organizational objectives. Perry and Hatcher (2003) identified four categories as Ad hoc, structured, standardized and optimized on the basis of maturation level of IT. According to them, majority of organization had adopted Project Portfolio Management on ad hoc basis rather than a continuous process. Ad hoc is the level when use of IT, other resources and project priorities are not aligned with organizational objectives. In this stage, the organization...
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...Portfolio Process In order for the adoption of a portfolio management process (which would be new to this unit) to be successful, the following steps must be followed under the guidance of the portfolio management, and in collaboration with the individual project managers and PMO: • Transition from the existing pure-functional organizational structure to a matrix-style structure by which key functional executives, comprising a newly formed portfolio process committee, would be directly responsible for making portfolio-management decisions; • Identification of the strategic goals of both the SBU and the parent company, Sony, and reevaluating goals as the market or technologies shift, or as Sony adjusts its corporate strategies; • Adoption of appropriate methods and mechanics (i.e. strategic road map, target resource split, strategic buckets) for aligning these strategic goals with the project portfolio; • Management of the portfolio by means of a set of selection criteria for proposed projects, as well as reallocating, reprioritizing, and/or rescheduling current projects at various phases of the pipeline, (thus the portfolio and project management processes become interconnected, and the portfolio is constantly reevaluated). As the portfolio management process aims to preserve existing functional departments and minimize impact on the flow of existing operations, we recommend a transition to a project/functional matrix over the next 12 months...
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...is implemented through projects | C. | Only top management must understand strategy | D. | Project selection should be clearly aligned with strategy | E. | Project management plays a key role in supporting strategy | | 2. | A project selection process that is strongly linked to strategy results in A. | The most profit. | B. | Better utilization of the organization's resources. | C. | More projects. | D. | A larger and more diverse organization. | E. | Stronger core competencies. | | 3. | Which of the following is NOT true about organizational politics? A. | Project managers should not engage in organizational politics | B. | Politics can have a significant influence on which projects receive funding | C. | Politics exist in every organization | D. | Politics can influence project selection | E. | Politics can play a role in the aspirations behind projects | . | 4. | Which of the following terms is often used to denote a project that a powerful, high-ranking official is advocating? A. | Sacred cow | B. | Pet project | C. | Political necessity | D. | Special undertaking | E. | Strategic ploy | | 5. | Why do project managers need to understand their organization's mission and strategy? A. | To reduce project duration and increase the number of projects implemented | B. | So they can make appropriate decisions and adjustments and be effective project advocates | C. | It...
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...Re: Proposing a Project Portfolio Evaluation and Selection Process Executive Summary Taking into account the poor performance of our current projects due to a weak portfolio management process in place, the Operations SBU has come to the determination that if we are to move forward in accommodating new projects along with our existing ones, the current system must be reviewed and redesigned for better decision-making. This proposal defines a framework for project portfolio evaluation and a project selection for adoption and it elaborates on the two phases that involve project screening, selection, prioritizing and balancing. More emphasis is given to the project selection criteria and score model as this is the main area where the gap of knowledge has been identified. Rationale Our recent organizational determination to sustain by controlling costs and expanding our frontiers shall require much effort from all our SBUs and most importantly, it is crucial that we are able to incubate a proper process that shall boost good decision-making and mitigate conflicts when we come to screening multimillion dollar projects and implementing them as part of our operations. The said process shall be about evaluating our project portfolio and devising a methodology of selecting specific projects with the highest probability of helping our company achieve its strategic goals and fulfill our mission. From the Operations SBU perspective, the implementation of new projects without proper categorization...
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...The Impact of Project Portfolio Management on Information Technology Projects Sergio Ricardo Calderini London Business School Regent’s Park, London NW1 4SA, United Kingdom e-mail: scalderini.mba2004@london.edu Bert De Reyck London Business School Regent’s Park, London NW1 4SA, United Kingdom Tel. +44 20 7706 6884; Fax. +44 20 7724 7875; e-mail: bdereyck@london.edu Yael Grushka-Cockayne London Business School Regent’s Park, London NW1 4SA, United Kingdom Tel. +44 20 7262 5050; Fax. +44 20 7724 7875; e-mail: ygrushka.phd2003@london.edu Martin Lockett Ashridge Berkhamsted, Hertfordshire, HP4 1NS, United Kingdom Tel. +44 1442 841025; e-mail: martin@mlockett.com Marcio Moura London Business School Regent’s Park, London NW1 4SA, United Kingdom e-mail: mmoura.mba2004@london.edu Andrew Sloper CVC The Customer Value Company 48 St Mary's Road, Long Ditton, Surrey KT6 5EY, United Kingdom Tel. +44 7768 861920; e-mail: andrew.sloper@customervalue.co.uk February 2005 Ashridge Business School UK - http://www.ashridge.org.uk The Impact of Project Portfolio Management on Information Technology Projects Abstract The ever-increasing penetration of projects as a way to organise work in many organisations necessitates effective management of multiple projects. This has resulted in a greater interest in the processes of project portfolio management (PPM), with more and more software tools being developed to assist and automate the process....
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...Evaluate How An Organisation’s Strategic Initiatives Can Be Achieved Through A Project Portfolio Meskendahl (2010) defines business strategies as tactics used by a company to compete in the market compared to its competitors. As organisations strive to beat competition and deliver customer satisfaction effectively and efficiently, the use of projects thus increase. Project portfolio can be used as the bridge between strategy formulation and strategy implementation (Meskendahl 2010; Cleland 1999; Dietrich & Lehtonen 2005; Grundy 2000). Archer & Ghasemzadeh (1999) defines project portfolio as a “set of projects that share and compete for scarce resources and are carried out under the sponsorship and management of a particular organisation”. Thus it is of great importance to structure project portfolio in alignment with the organisation’s strategy so as to archive business objectives. According to Cooper et al. (2002), the following are three main objectives for project portfolio management: • Increasing financial value • Aligning portfolio to strategic goals • Balancing the projects within the firm’s capacities In order to archive this objective there is a need to understand the strategic orientation of the firm or what we call corporate mindset (Meskendahl 2010; Talke 2007). Strategies should consider the position of the business both internally and externally for example, a company’s systematic advantage towards its competitors (Morgan & Strong, 2003)...
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...The Case Study for PROJ587 will place the student in the role of a senior manager in charge of one of your company’s Strategic Business Units (SBU). Your first task in this new position is to develop a project portfolio management process and then use this process to select projects for your SBUs portfolio. The Case Study will involve the application of the tools and techniques of multi-project/program management and will deal with the analysis and establishment of project management systems based on the structure of the project. The expected outputs from this Case Study will be in the form of a two part written report due week five. Background The senior management of your company has already made the strategic decisions to allocate annual funding to each of the Strategic Business Units (SBU) within the company. You have been hired to manage one of the companies SBUs. Your new company is a mid cap company with revenues of approximately $350 million dollars a year. This company, like many others, is struggling in today’s economy. It realizes in order to survive it needs to both expand and control costs at the same time. You are new to this industry. This company’s vision is to become the “go to” support or the “provider of choice” for the cruise ship industry throughout the world. This company currently is in the travel and hotel support industry. As such, you supply support services to the travel and hotel industry such as linen services to...
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...Tesla Motors Portfolio, Program and Project Management Course Project Contents Introduction 3 Organization’s Strategic Plan 3 Organization Strategic Capacity Plan 4 Portfolio Management Process 8 Project Selection Process 15 Program Management Plan 17 Risk Management Plan 20 Change Management 21 Resource Utilization Plan 24 Personnel 24 Production Line 25 Inventory 25 Charts and Graphs 26 Organizational Influence Chart 26 Project Selection Process Flowchart 27 Conclusion 27 Reference: 29 Introduction Tesla Motors designs and manufactures the most advanced electric vehicles and electric power trains in the world. Tesla Motors do not compromise on innovation, performance, or appeal. Nor does Tesla Motors compromise commitment to hiring and developing the best from around the world. Tesla Motors work in small, focused teams, which much like our products are agile, efficient, and focused on excellence. Tesla Motors are driven by work that contributes to a global impact and are passionate about our future in the automotive industry. The pace is fast, the work is stimulating, structure is limited, and innovation is expected. Tesla Motors is headquartered in Palo Alto, California, runs satellite offices in Los Angeles and Maidenhead, UK, and operates retail locations around the world. Whatever location you choose, you'll be surrounded by the best of the best, working together to impact the future of transportation. Tesla Motors is committed...
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...VP CC: Executive Leadership From: Portfolio Management Team Date: February 8th 2016 Subject: Portfolio Management Process Our organization has crossed boundaries and together we have achieved many goals. Although as we all know we are in the business of expanding on opportunity. Today, we are fazed with the challenges of taking advantage of those opportunities due to a lack of control system to ensure the company pursues opportunities that align with our strategic business goals. The primary goal of portfolio management is to prioritize projects, allocate resources to projects, and identifying which projects to initiate, reprioritize, or terminate. A key focus is ensuring that the overall collection of projects creates the greatest possible value by supporting the objectives of the enterprise. In conjunction to the implementation of an analytic hierarchy process; the implementation of AHP and the use of weighted criteria provide the ability to not only weight benefits but also project risk. Fist, we establish a project selection criterion; * Contributes to expansion goal * Expansion of current services provided to current customers (new product lines) * Increase Revenue * Increase Customer Satisfaction * Reduce cost of operations * Reduce overhead and warehousing cost. Upon receipt of a proposed project all proposals will be measured against the project selection criteria by making the determination if the proposed project meets or exceed the requirements...
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...Assignment: Due Week 5 This is a two part assignment. Part 1 First, develop project selection criteria and a high level process for applying the criteria and managing the portfolio. The criteria should be consistent with the business environment for the industry, consistent with your company's overall mission/strategies, and consistent with the mission and strategies of your strategic business unit. You are proposing a process, not individual projects. The deliverable for Part 1 is a written proposal for the project selection criteria and a high level description of a proposed portfolio management process. You may also be expected to make an informal presentation of the report in class. The proposal should be in the form of a memorandum to your Vice President (your instructor) outlining your proposal. The memorandum should be no more than 10 pages, including any figures and tables. It should be double-spaced, 10 or 12 point font with one-inch margins. This is a summary for an executive, so be concise, to the point, and leave out the fluff. If you don't need 10 pages to document your proposal fully, I am sure that your Vice President will be happy with less as long as it is complete. Using appropriate grammar, spelling, punctuation, and sentence structure will be part of your grade. The actual proposal should include the following: 1. A description of the proposed portfolio process. You are explaining it to the executives. 2. The reasons it was selected (tie to...
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...Information Administration (EIA), it still remains at a high average for the regular consumer (American Petroleum Institute Statistic, 2011). Although the resources for natural gas pumps are not readily available Chesapeake Energy, Inc. plans to break ground and be at the forefront of this venture, and make natural gas an affordable commodity to all levels of income brackets. Components of Retail Regular Gasoline Prices [pic] Sources: U.S. Dept of Energy, U.S. Dept of Labor, and API This memo will recommend and introduce a new project to be considered for implementation into the SBU portfolio. This project will be the combination of an offering of a crude oil and natural gas mixture of fuel; that will be offered to the public sector as another alternative to the use of crude oil alone. In a review we realize that one of the other projects originally planned will either be delayed or experience a budget cut to allow this new combined product to be resourced and produced by the end of...
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...five primary segments: global technology services, systems and technology, global business services, software and global financing. The global technology services segment primarily includes IT infrastructure services and business process services. The systems and technology division provides IBM’s clients with business solutions built on advanced computing power and storage capabilities. Offerings include servers and infrastructure storage products; microelectronics for IBM systems and for sale to original equipment manufacturers; and retail store solutions, such as network-connected cash registers. IBM is active in over 170 countries worldwide. In 2011, IBM acquired the following companies. The provider of real estate and facility management software solutions, TRIRIGA, Inc; the provider of intelligence analytics for fraud and crime prevention, i2; the risk analytics firm Algorithmic; the provider of...
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...: | An expert's opinion on an issue may be subjective but very accurate. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 2. | Question : | The simplest method of project screening and selection is developing a list of criteria that pertain to the choice of projects and then applying them to alternatives. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 0 of 5 | | Comments: | | | | Question 3. | Question : | A simplified scoring model addresses all the weakness of a checklist model for project screening. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 4. | Question : | The most important thing to remember when using project selection models is to be consistent and objective. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 5. | Question : | Personnel costs comprise one of the highest sources of project expense. | | | Student Answer: | | True | | | | False | | | | | | | | Points Received: | 5 of 5 | | Comments: | | | | Question 6. | Question : | Souder's...
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...Memo To: Senior Management From: Portfolio Management Team Date: September 27, 2011 Re: SBU Proposal Industry Background Ford Motors Corporation was started by Henry Ford. Born in Wayne County, Michigan, in an area that later became Dearborn, on July 30, 1863, Henry Ford was the oldest of six children. In April 1888, Ford married Clara Bryant, a local girl and the foster child of—like Henry—Irish immigrant farmers. In 1893, his only child, Edsel, was born. Success soon came to him as he took a position in 1891 as an engineer at the Edison Illuminating Company and fairly quickly climbed the ranks. With his love for the outdoors and rural values, Ford might have easily remained in agriculture but something even stronger pulled at Ford’s imagination: mechanics, machinery, and understanding how things worked and what new possibilities lay in store. In the 1980’s, he focused particularly on internal combustion engines. Henry Ford called his first vehicle the Quadricycle. It attracted enough financial backing for Ford to leave his engineer position at Edison Illuminating and helped found the Detroit Automobile Company in 1899. The company faltered for a variety of reasons, and in 1901 Ford left to pursue his own work again. Later that year, the Henry Ford Company was born, but Henry Ford himself stayed with it only a few months. He left in early 1902 to devote more time to refining his vehicles. Ford recognized that with the right techniques, cars could be made affordable...
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