Project Portfolio Management in the Construction Sector: Alignment with Organizational Strategies
Project portfolio management (PPM), when tailored to context, improves the effectiveness of senior management decision making on selecting, prioritizing, funding, monitoring, and adjusting projects. Such portfolio-level approaches can improve alignment with an organization’s strategy and enhance return-on-investment (ROI).
Although the construction sector is strongly project-based and represents a major segment of the global economy (13% of GDP $ 10 trillion in 2018 projected to $14 Trillion by 2025), little is known about whether and how Project Portfolio Management (PPM) can provide benefits in this important sector. The research team from Australia and the United Kingdom investigated approaches to strategic alignment and PPM through inquiring into project-based practices of organizations in the construction sector. We found that PPM approaches are used in the case firms investigated, despite the fact that the terms ‘portfolio’ and ‘portfolio management’ were not always used. Our findings also show PPM approaches being tailored to suit the construction context.
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Acknowledgements: Laura Schofield