Project Portfolio Management

Research-Technology Management, March-April 2003 | Go to article overview

Project Portfolio Management


EIRMA Working Group 59, 2002; Available to IRI and EIRMA members from EIRMA, 34, rue de Bassano 75008, Paris, France, www.eirma.asso.fr

This report by an EIRMA Working Group (chaired by A.V.A. Lombard, division vice president research, Nalco Europe BV) evaluates cross-functional processes for effective and efficient project portfolio management. Best practices are analyzed: for defining and selecting the right portfolio; for managing alignment with company strategy and balancing this with available company resources and core strengths; for integrating key competitive signals; for smoothly transferring know-how between projects and technology to production sites; and for managing personnel. These best practices provide the basis for an organizational and process model that the Group developed.

Examples and case studies highlight how some companies currently manage their portfolio. These offer a framework that can be adopted and modified, and illustrate potential pitfalls for the unwary. The Working Group argues that each and every project objective must reflect the high-level strategies. Otherwise, the portfolio as a whole will suffer misalignment, thereby wasting time, energy and resources. The Group's portfolio alignment model depicts the phases and issues that need to be considered when looking at the alignment process.

The next step is implementation within the project portfolio, aligning R&D strategy with corporate and business strategies. A number of tools are discussed in detail. Roadmapping is considered a powerful way to develop common language between different functions and for exploring possible future scenarios. Transferring the portfolio projects into the production and marketing environment is a further challenge.

Portfolio Balancing is defined as "the activity by which individual R&D projects and products are distributed in different categories in the proportion that is determined by strategic objectives and criteria." The goal is to obtain an appropriate breakdown of R&D spending across markets, project types, technologies, time scales, uncertainties, etc. in order to better manage risks, threats and opportunities through diversity, giving planned outcomes as well as serendipity a chance.

Many tradeoffs are possible and tools for managing these tradeoffs are available and used by EIRMA member companies. Parameters for balancing the portfolio include risk versus reward, feasibility of a project versus importance, durability of competitive advantage versus cost, time-to-market versus quality, novelty of innovation versus novelty of markets. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Project Portfolio Management
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.