Strategic Project Portfolio Management: an Empirical Investigation

Abstract

The mission of project portfolio management (PPM) is seen in evaluating, prioritising, and selecting project in line with the business strategy. Alignment of all on-going projects with the overall business strategy is generally recognised as very important for most modern organisations. The aim of this paper is to develop a conceptual framework embracing a number of key variables of PPM and corresponding interrelations, derived from the extant body of literature, and to test it empirically. We conducted a survey among experienced portfolio managers representing a wide range of organisations possessing established PPM mechanisms. Data obtained in this tailor-made survey was tested in the framework using Structural Equation Modelling. Our results provide support to most of the formulated hypotheses. On the basis of our findings, we formulate several managerial implications.