The Project-Oriented Firm and the Role of Project Portfolio Management in Strategic Development: A Review and Analysis
Abstract
The objective of this paper is the review of the concept Project Portfolio Management as possible contributor to the strategic management thinking of a firm. The method used in this analysis included an in-depth review of the underlying principles and applications of Project Portfolio Management in contrast to strategic management. The results indicate that Project Portfolio Management (PPM) can be presented as a strategic planning alternative to traditional strategy models that supports project success. It is proposed that the use of PPM can improve organisational agility with respect to the development of intended strategies and that, combined with other project management tools, allow a project-oriented firm to better plan for and implement its strategies on the basis of its resources, abilities, skills, risk, stakeholders and competitive advantage. A review of the literature on PPM and an analysis of the approaches adopted by project-oriented firms is undertaken. The conclusion is that the utility of PPM as a strategic planning enabler is a useful tool to consider in the context of strategic planning and management. PPM also contrasts with other strategy development models and can assist organisations to improve project success rates and maturity levels.
Keywords: Project Portfolio Management, Strategic Management, Project-Oriented Firms.References
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