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Using the strategic relative alignment index for the selection of portfolio projects application to a public Venezuelan Power Corporation

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  • García-Melón, Mónica
  • Poveda-Bautista, Rocío
  • Del Valle M., José L.

Abstract

In this paper a new approach that uses the alignment of projects with corporate strategic objectives to prioritize project portfolio in an efficient and reliable way is presented. For this purpose, corporate strategic objectives will be used as prioritization criteria to obtain the Relative Alignment Index (RAI) of each project which indicates how close or far each project is from the strategic objectives of the company. The approach presented uses the Analytic Network Process. This technique allows considering the influences among all the elements within the network, that means, the strategic objectives, and specially the projects within a portfolio. The proposed RAI index helps to select the best strategically aligned projects for the organization. The proposed RAI index and its form of evaluation have not previously been considered in the project portfolio literature until now.

Suggested Citation

  • García-Melón, Mónica & Poveda-Bautista, Rocío & Del Valle M., José L., 2015. "Using the strategic relative alignment index for the selection of portfolio projects application to a public Venezuelan Power Corporation," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 54-66.
    • Handle: RePEc:eee:proeco:v:170:y:2015:i:pa:p:54-66
    DOI: 10.1016/j.ijpe.2015.08.023
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    Cited by:

    1. Roychaudhuri, Pritam Sankar & Kazantzi, Vasiliki & Foo, Dominic C.Y. & Tan, Raymond R. & Bandyopadhyay, Santanu, 2017. "Selection of energy conservation projects through Financial Pinch Analysis," Energy, Elsevier, vol. 138(C), pages 602-615.
    2. Kheybari, Siamak & Rezaie, Fariba Mahdi & Farazmand, Hadis, 2020. "Analytic network process: An overview of applications," Applied Mathematics and Computation, Elsevier, vol. 367(C).
    3. Fahime Lotfian Delouyi & Seyed Hassan Ghodsypour & Maryam Ashrafi, 2021. "Dynamic Portfolio Selection in Gas Transmission Projects Considering Sustainable Strategic Alignment and Project Interdependencies through Value Analysis," Sustainability, MDPI, vol. 13(10), pages 1-25, May.
    4. Wu, Yunna & Xu, Chuanbo & Ke, Yiming & Li, Xinying & Li, Lingwenying, 2019. "Portfolio selection of distributed energy generation projects considering uncertainty and project interaction under different enterprise strategic scenarios," Applied Energy, Elsevier, vol. 236(C), pages 444-464.
    5. Quezada, Luis E. & López-Ospina, Héctor A. & Ortiz, César & Oddershede, Astrid M. & Palominos, Pedro I. & Jofré, Paulina A., 2022. "A DEMATEL-based method for prioritizing strategic projects using the perspectives of the Balanced Scorecard," International Journal of Production Economics, Elsevier, vol. 249(C).

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