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Project Portfolio Management & Strategic Alignment: Governance as the Missing Link
Jönköping University, Jönköping International Business School, JIBS, EMM (Entrepreneurship, Marketing, Management).
Jönköping University, Jönköping International Business School, JIBS, EMM (Entrepreneurship, Marketing, Management).
2009 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Introduction – Project-based organizations face a series of challenges when trying to implement and manage their project portfolios successfully in line with their strategic goals. Good project portfolio management (PPM) practices play a crucial role in maintaining well performing portfolios, but PPM is still a fairly new academic field. And it was found that the current PPM literature embodies a gap in providing explicit governance criteria to assure consistent portfolio decision-making.

Problem – What are the criteria of portfolio governance that contribute to better aligning the project portfolio to organizational strategy? Do project-based organizations in fact not implement a governance framework to guide their decision-making rationale? If there is some sort of a governance framework, do project-based organizations implement it in a consistent manner every time they take portfolio-related decisions?

Purpose – The purpose of this study is two-fold. First, we attempt to fill a gap in the current PPM literature by proposing a portfolio governance framework that could enhance project portfolio decision-making. Secondly, it is our goal to find out whether decision makers in project-based organizations consistently cover all issues related to portfolio governance at portfolio meetings.

Methodology – The study employs both qualitative & quantitative methods to fulfill the two-fold nature of the study. A Portfolio Governance Framework, comprising 26 statements, was developed on the grounds of existing literature on PPM, strategy & governance. The proposed Framework was then used as a basis to carry out an online survey in which 31 respondents (executive level) from 25 project-based organizations (operating in Sweden) were asked about how consistent they are in discussing relevant portfolio governance issues.

Conclusion – The empirical findings of this study indicate that the majority of project-based companies do not employ a governance framework when it comes to portfolio decision-making. In the few cases that they do, it is mostly a set of policies that is not applied on a consistent basis.

Place, publisher, year, edition, pages
2009. , p. 101
Keywords [en]
Project Portfolio Management, Strategic Alignment, Portfolio Governance, Portfolio Review Board, Portfolio Characteristics, Decision-Making Rationale, Maturity Models, Project-Based Organizations
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:hj:diva-9575OAI: oai:DiVA.org:hj-9575DiVA, id: diva2:224486
Presentation
(English)
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Available from: 2009-06-24 Created: 2009-06-18 Last updated: 2009-06-24Bibliographically approved

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