Best Practices for Project Portfolio Selection
Abstract
Almost any larger company nowadays must have a succesfull Project Portfolio Management (PPM) in order to preserve a positive revenue. PPM is essential to ensure that a company chooses the right projects to pursue, however it can be very challenging to choose the right projects. Coopers et al. (2001) analysis has concluded that there are five dominant methods or tools that a larger amount of organisations uses to ensure a good Project Portfolio Management. These methods or tools consists of [1]:
- Financial methods, includes financial key figures.
- Business strategy, defines the strategy for allocating financial ressources.
- Bubble Diagram, plots project in a X-Y coordinate where several factors are relevant for determine a projects worth.
- Scoring Models, sums up a projects score from a range of criteria.
- Checklists, uses yes/no questions related specifik to the company.
These five methods or tools are also seen as the best practices within Project Portfolio Management.
The aim of this article is therefore to enlighten the Project Portfolio selection methods and tool and their best practices. Furthermore will this article describe the limitations and benefits of these best practices.
- ↑ Cooper, R.G., Edgett, S., Kleinschmidt, E. Portfolio management for new product development: results of an industry practices study, October 2001
