765 MILESTON 2

Project Portfolio Selection

1) There are various methods applied for project portfolio selection. It is imperative to analyze the known methods so that an effective approach is applied when planning a new project. The methods discussed here shall apply when minimizing resources to create an efficient project (Chaparro et al., 2019).

Financial Procedures

The method ensures selection of a project that is financially feasible.

“Probabilistic” techniques

The technique performs various scenarios to determine the most appropriate outcome.

“Option pricing theory”

The approach is mathematical and gives results of analysis of all participants of a project.

Strategic techniques

These provide a clear plan of action for selection of a particular project

Scoring techniques

Projects get analyzed based on different performance criteria. The best gets selected.

“Combinatorial optimization”

The method promotes collaboration of different methods to develop an effective tool for project completion.

Behavioral techniques

This promotes selection of a project that creates effective opinions from a company’s leaders.

Mapping techniques

This applies technical approaches that display how a project behaves based on its environmental factors.

“Real options”

The technique analyses different projects against the status of an economy to develop the most appropriate and doable project. It is beneficial to apply this tactic since it aligns a project to a company’s vision (EcoSys, 2020).

Integrated techniques

The method analyses how different project approaches, with various classifications can be joined to form a single effective plan.

“Information gap theory”

This technique helps managers to analyze known facts which they apply in evaluation of effectiveness of a project.

“Scenario-based” technique

The approach analyzes different known project approaches to determine the best.

2) There are steps taken to select an appropriate project which are effective and shall be discussed below (Benaija & Kjiri, 2015).

Project identification

This is important since it collects information concerning different projects to determine a clear classification.

Evaluation

Companies take this step to study each projects capability of providing the decision-making team with desired outcome.

Authorization

This step takes information analyzed and determines the only projects that shall be implemented.

Reporting

This step provides a decision-making team with a clear account of how a project got implemented and its effect on accomplishment of goals.

3) There is another approach for project portfolio selection where organizations incorporate a decision-making team to formulate various objectives (Raad et al., 2020). These are imperative in determining the most strategic project.

4) There is another approach of project selection where companies develop a business strategy that analyzes strengths of each project proposal (Hasselbalch, n.d.). This approach is effective since it guides a company’s leaders.

5) There is a selection technique that involves two steps where the first step is to analyze many projects. The projects are the scored to determine their potential to generate revenue and save up on operational costs (Zucker, 2018). The next step is to develop a list of the highest scoring projects then to pick the best for implementation.

6) It is imperative to analyze environmental factors surrounding a business to determine how an effective project can be selected (Lee et al., 2019). A business analyzes its market share characteristics to determine how it would react to changes.

7) The process of project selection is an intricate process involving multiple alternatives, objectives, criteria, connections, limitations, and risk avoidance techniques (Elbok & Berrado, 2017).

8) After analyzing various techniques of selection, it is mandatory to create a organizational direction (Aston, 2020) to achieve desired results.

Reference

Aston, B. (2020). Beginner’s Guide To Project Portfolio Management—Critical Steps, Tools, Benefits. Retrieved 20 November 2020 from https://thedigitalprojectmanager.com/project-portfolio-management-guide/

Benaija, K., & Kjiri, L. (2015). Project portfolio selection: Multi-criteria analysis and interactions between projects [Ebook]. Retrieved 20 November 2020 from https://arxiv.org/ftp/arxiv/papers/1503/1503.05366.pdf

Chaparro, X., Gomes, L., & Nascimento, P. (2019). The evolution of project portfolio selection methods: from incremental to radical innovation. Revista De Gestão, 26(3), 212-236. doi: 10.1108/REGE-10-2018-0096

Confido, J., Wibisono, D., & Sunitiyoso, Y. (2018). A proposed selection process in Over-The-Top project portfolio management. Journal Of Industrial Engineering And Management, 11(3), 371. doi: 10.3926/jiem.2448

EcoSys Team (2018). Project Selection: A Guide to Project Prioritization and Selection. Retrieved 20 November 2020 from https://www.ecosys.net/blog/project-selection-prioritization-guide/

Elbok, G & Berrado, A. (2017). Towards an Effective Project Portfolio Selection Process [Ebook]. Retrieved 20 November 2020 from http://ieomsociety.org/ieom2017/papers/508.pdf

Hasselbalch, P. (n.d.) Best Practices for Project Portfolio Selection. Retrieved 20 November 2020 from http://apppm.man.dtu.dk/index.php/Best_Practices_for_Project_Portfolio_Selection

Lee, S., Lee, Y., & Choi, Y. (2019). Project Portfolio Selection Considering Total Cost of Ownership in the Automobile Industry, 11(17). doi: 10.3390/su11174586

Raad, N., Shirazi, M., & Ghodsypour, S. (2020). Selecting a portfolio of projects considering both optimization and balance of sub-portfolios. Journal Of Project Management, 5, 1-16. doi: 10.5267/j.jpm.2019.8.003

Zucker, A. (2018). Project Portfolio Management: Simplify the Selection Process. Retrieved 20 November 2020 from https://pmessentials.us/project-portfolio-management-simplify-the-selection-process/