PORT Presentation Milestone 2

Running Head: PRESENTATION OUTLINE

PRESENTATION OUTLINE

Presentation Outline

Name

Institution

Presentation outline

Topic: Project portfolio selection

I. Introduction

· A project portfolio is a group of projects that are intended to be carried out and sponsored by a particular organization.

· There is usually competition for scarce resources among these projects (Jafarzadeh et al, 2018).

· Project portfolio selection involves picking a portfolio from the project proposals available and the currently underway projects.

· This selection has to be linked to the business strategy of the organization so that the selected project can guarantee maximum returns (Perez et al, 2018).

II. The rationale for project portfolio selection

· The need to make rational decisions on investment that will ensure maximum returns for the organization.

· The need to make effective and efficient use of organizational resources for maximum benefits (Kalashnikov et al, 2017).

III. Project portfolio selection process

· The process of selecting a portfolio from the available proposals involves four steps. These are:

A. Identification and categorization

· It involves taking inventory of all the project proposals and the currently underway projects and creating a project sheet for each.

· These projects are then grouped by type, for example, major ones versus minor ones (Zhang et al, 2020).

B. Evaluation and prioritization

· Here the projects are evaluated for gains.

· The projects with the biggest gains are prioritized (Zhang et al, 2020).

C. Authorization

· Here the decision on which projects will be implemented is made.

· The organization's capacity to implement the project is analyzed and the projects assigned to different project managers (Mohagheghi et al, 2017).

D. Reporting and revision

· All the reports on the authorized projects are consolidated.

· This facilitates decision-making on the continuation of projects by senior management (Mohagheghi et al, 2017).

IV. Project portfolio selection methods

· Advanced knowledge in project portfolio selection has come up with methods that can be used to enhance project portfolio selection. Some of these methods are:

A. Financial methods

· The most important criterion for selection in this method is profitability.

· The project that is expected to have maximum returns is selected (Ma et al, 2020).

B. Option pricing methods

· These methods are based on mathematical models and calculate the variation of demand with pricing.

· These models focus on the project elements that affect profitability (da Silva et al, 2017).

C. Scoring methods

· These methods identify specific requirements and aspects that projects have to meet and select the projects that meet most of these.

· They rely on the subjective rating which is a shortcoming of this method (Elbok & Berrado, 2017).

D. Integrated methods

· Here, two or more methods are applied to guide the project portfolio selection process.

V. Project portfolio selection challenges

· It is difficult to provide an updated view of all the portfolio of company projects.

· Understanding the risks and opportunities of complex projects fully is not easy and this may affect decision-making (Danesh et al, 2018).

· There is also a challenge in assigning the right project to the right project manager and the team at the right time to ensure maximum benefits (Sefair et al, 2017).

VI. Conclusion

· Project portfolio selection is the process of selecting a portfolio from the available project proposals and the projects that are currently underway.

· It ensures that rational investment decisions are made for maximum benefits.

· It is a four-step process that involves identification, evaluation, authorization, and revision of a project portfolio.

· Several methods have been designed to facilitate this process and they include financial, scoring, option pricing, and integrated methods.

· Some of the challenges in project portfolio selection include understanding the risks and opportunities of the projects and assigning the project to the right team.

References

da Silva, C. G., Meidanis, J., Moura, A. V., Souza, M. A., Viadanna Jr, P., de Oliveira, M. R., ... & de Barros, R. S. (2017). An improved visualization-based approach for project portfolio selection. Computers in Human Behavior, 73, 685-696. Retrieved from https://www.sciencedirect.com/science/article/pii/S0747563216309128

Danesh, D., Ryan, M. J., & Abbasi, A. (2018). Multi-criteria decision-making methods for project portfolio management: a literature review. International Journal of Management and Decision Making, 17(1), 75-94. Retrieved from https://www.inderscienceonline.com/doi/abs/10.1504/IJMDM.2018.088813

Elbok, G., & Berrado, A. (2017). Towards an effective project portfolio selection process. In International Conference on Industrial Engineering and Operations Management Rabat, Morocco. Retrieved from http://ieomsociety.org/ieom2017/papers/508.pdf

Jafarzadeh, H., Akbari, P., & Abedin, B. (2018). A methodology for project portfolio selection under criteria prioritisation, uncertainty and projects interdependency–combination of fuzzy QFD and DEA. Expert Systems with Applications, 110, 237-249. Retrieved from https://www.sciencedirect.com/science/article/pii/S0957417418303282

Kalashnikov, V., Benita, F., López-Ramos, F., & Hernández-Luna, A. (2017). Bi-objective project portfolio selection in Lean Six Sigma. International Journal of Production Economics, 186, 81-88. Retrieved from https://www.sciencedirect.com/science/article/pii/S0925527317300154

Ma, J., Harstvedt, J. D., Jaradat, R., & Smith, B. (2020). Sustainability driven multi-criteria project portfolio selection under uncertain decision-making environment. Computers & Industrial Engineering, 140, 106236. Retrieved from https://www.sciencedirect.com/science/article/pii/S0360835219307053

Mohagheghi, V., Mousavi, S. M., Vahdani, B., & Shahriari, M. R. (2017). R&D project evaluation and project portfolio selection by a new interval type-2 fuzzy optimization approach. Neural Computing and Applications, 28(12), 3869-3888. Retrieved from https://link.springer.com/article/10.1007/s00521-016-2262-3

Pérez, F., Gómez, T., Caballero, R., & Liern, V. (2018). Project portfolio selection and planning with fuzzy constraints. Technological Forecasting and Social Change, 131, 117-129. Retrieved from https://www.sciencedirect.com/science/article/pii/S004016251730937X

Sefair, J. A., Méndez, C. Y., Babat, O., Medaglia, A. L., & Zuluaga, L. F. (2017). Linear solution schemes for Mean-SemiVariance Project portfolio selection problems: An application in the oil and gas industry. Omega, 68, 39-48. Retrieved from https://www.sciencedirect.com/science/article/pii/S0305048316302778

Zhang, X., Fang, L., Hipel, K. W., Ding, S., & Tan, Y. (2020). A hybrid project portfolio selection procedure with historical performance consideration. Expert Systems with Applications, 142, 113003. Retrieved from https://www.sciencedirect.com/science/article/pii/S0957417419307201