Answer to Question #224058 in Management for Nablis

Question

how do you identify and recommend the portfolio of projects that will yield the maximum value or return to your organization in the long-run? 

Answer 1

Please use this answer, it has up-to-date in-text citations and references. Ignore the first one

Introduction

A project portfolio is a group of operations packed together to achieve targeted business objectives. They are managerial, operational tools. It helps to sell the company and improve the profits. They enhance the efficiency of the business. The project portfolio harmonizes the operations of the organization. According to (Wu et al. 2012), a project portfolio is an art that synchronizes different techniques and tools in an organization to meet the business goals.

A good portfolio should have a clear organizational strategy. The strategy should be communicated to all the members of the organization.  An organization that develops a portfolio through the outsourced client for their business is likely to fail. This is due to a lack of integration and communication of the business strategy to the members.

All the project inventories should be centralized, involve a risk management system, and state the company's resources constraints. The portfolio is used to allocate resources to various projects. The portfolio should be transparent, and members are accountable. This ensures that the resources are being used optimally

A good project portfolio should not be based on a single project; it should incorporate all the firm's projects (Jonas et al., 2013). If a portfolio is based on one project, it may give a misleading report as a success in one project does not translate into success in another project. A good portfolio should bridge the gap between all the projects within the organization.

Conclusion

A project portfolio is an important tool in project management. It can increase the productivity of the business. It can be used to make decisions and consequently increase the return on investment of the projects. Businesses should show much care in portfolio management and put more effort into portfolio management to maximize the effective implementation of the projects.

References

D. Jonas, A. Kock and H. G. Gemünden (2013) "Predicting Project Portfolio Success by Measuring Management Quality—A Longitudinal Study," in IEEE Transactions on Engineering Management, vol. 60, no. 2, pp. 215-226, doi: 10.1109/TEM.2012.2200041

Yunna Wu, Jiangshuai Li, Jiali Wang, Yong Huang (2012)Project portfolio management applied to build energy projects management system, Renewable, and Sustainable Energy Reviews, Volume 16, Issue 1, Pages 718-724, ISSN 1364-0321,

https://doi.org/10.1016/j.rser.2011.08.037. https://www.sciencedirect.com/science/article/pii/S1364032111004473