Trade off Between Risk Management, Value Creation and Strategic Alignment in Project Portfolio Management

Khadija Benaija, Laila Kjiri

2014

Abstract

Projects portfolio management allows the company to select, prioritize, integrate, manage and check its projects in a multi project context. In this paper, we consider a very important part of the projects portfolio management namely the selection of projects. Indeed, the greatest challenge for managers today is to be sure that the projects initiated achieve the strategic and financial objectives of the company. Our paper proposes a framework for project selection based on three main criteria: value creation, risk management and alignment with the business strategy. After a brief review of the literature regarding the basic concepts used, we propose bivariate analyses: risk-value, risk-alignment and value-alignment. Our contribution in this paper is to design a framework that realizes the trade-off between the three criteria.

References

  1. Aritua, B., Smith, N.J., Bower, D., 2009. Construction client multi-projects: a complex adaptive systems perspective. International Journal of Project Management 27 (1), 72-79.
  2. Association for Project Management, 1997, PRAM Project Risk Analysis and Management Guide. High Wycombe, UK: APM Publishing.
  3. Benko, C., McFarlan, F.W., 2003. Connecting the dots. Aligning projects with objectives in unpredictable times. Harvard Business School Press, USA.
  4. Cooper, R., Edgett, S., Kleinschmidt, E., 1997. Portfolio management in new product development: lessons from the leaders I. Research Technology Management 40 (5), 16-28.
  5. Cooper, R., Edgett, S., Kleinschmidt, E., 2001. Portfolio management for new products, 2nd edition. Basic Books, USA.
  6. De Reyck, B., Grushka-Cockayne, Y., Lockett, M., Calderini, S.R., Moura, M., Sloper, A., 2005. The impact of project portfolio management on information technology projects. International Journal of Project Management 23 (7), 524-537.
  7. Elonen, S., Artto, K., 2003. Problems in managing internal development projects in multi-project environments. International Journal of Project Management 21 (6), 395-402.
  8. Martinsuo, M., 2013. Project portfolio management in practice and in context, International Journal of Project Management 31 (6), 794-803.
  9. Nowak, M., 2013. Project Portfolio Selection Using Interactive Approach. Paper presented at MBMST 2013 Modern Building Materials, Structures and Techniques Conference, Vilnius, Lithuania (16 - 17 May 2013).
  10. Office of Government Commerce, 2009. Portfolio Management Guide (Final Public Consultation Draft). Office of Government Commerce.
  11. Project Management Institute, 2004. A Guide to the Project Management Body of Knowledge (3rd edition). Newtown Square, Pennsylvania.
  12. Project Management Institute, 2008a. The standard for portfolio management, 2nd edition. Project Management Institute, USA.
  13. Project Management Institute, 2008b. A Guide To The Project Management Body of Knowledge (PMBOK® Guides), 4th ed. Project Management Institute, Newtown Square, PA.
  14. Rajegopal, S., McGuin, P., Waller, J., 2007. Project Portfolio Management: Leading the corporate vision. New York, USA: Palgrave Macmillan.
  15. Sanchez, H., Robert, B., 2010. Measuring portfolio strategic performance using key performance indicators. Project Management Journal 41 (5), 64-73.
  16. Sheykh, M.J., Azizi, M., Sobhiyah, M.H., 2013. How Can the Trade-off between Corporate Business Strategy and Project Risk be Optimized? Social and Behavioral Sciences 74 ( 2013 ), 134 - 143.
  17. Venning, C., 2007. Managing Portfolios of Change with MSP for programmes and PRINCE2 for projects. London, United Kingdom: The Stationary Office.
  18. Williams, D., Parr, T., 2006. Enterprise Programme Management: Delivering Value, New York, USA: Palgrave Macmillan.
  19. Wysocki, R. K., McGary, R., 2003. Effective Project Management: Traditional, Adaptive, Extreme. 3rd ed. Wiley.
  20. Young, M., Conboy, K., 2013. Contemporary project portfolio management: Reflections on the development of an Australian Competency Standard for Project Portfolio Management. International Journal of Project Management 31 (2013), 1089- 1100.
Download


Paper Citation


in Bibtex Style

@conference{iceis14,
author={Khadija Benaija and Laila Kjiri},
title={Trade off Between Risk Management, Value Creation and Strategic Alignment in Project Portfolio Management},
booktitle={Proceedings of the 16th International Conference on Enterprise Information Systems - Volume 3: ICEIS,},
year={2014},
pages={447-452},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004952904470452},
isbn={978-989-758-029-1},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 16th International Conference on Enterprise Information Systems - Volume 3: ICEIS,
TI - Trade off Between Risk Management, Value Creation and Strategic Alignment in Project Portfolio Management
SN - 978-989-758-029-1
AU - Benaija K.
AU - Kjiri L.
PY - 2014
SP - 447
EP - 452
DO - 10.5220/0004952904470452


in Harvard Style

Benaija K. and Kjiri L. (2014). Trade off Between Risk Management, Value Creation and Strategic Alignment in Project Portfolio Management . In Proceedings of the 16th International Conference on Enterprise Information Systems - Volume 3: ICEIS, ISBN 978-989-758-029-1, pages 447-452. DOI: 10.5220/0004952904470452