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Practices, methods and tools for project portfolio management

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  • Jiří Fotr

Abstract

The article deals with project portfolio optimization and management as an important tool for strategy implementation. Firstly, shortcomings of strategy implementation and important features, goals and drawbacks of project portfolio management are characterised. Further attention is paid to processes of project portfolio management and their methodical support. Followed by comparison of seven process models of project portfolio management from the perspective of their structuring into phases, agreement, differences and shortcomings. The core of the article is project portfolio development and optimization, where the basic categories of portfolio optimization models are characterised. These categories constitute deterministic optimization models, deterministic equivalents of stochastic optimization models, computer supported heuristic optimization models and stochastic optimization models. Attention is also paid to determination of input variables of these optimization models including values of projects and probability distributions of quantitative evaluation criteria. Conclusion presents benefits and assumptions of successful project portfolio management implementation in practice.

Suggested Citation

  • Jiří Fotr, 2016. "Practices, methods and tools for project portfolio management," Ekonomika a Management, Prague University of Economics and Business, vol. 2016(4).
    • Handle: RePEc:prg:jnleam:v:2016:y:2016:i:4:id:291
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    References listed on IDEAS

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    5. Tomac Cater & Danijel Pucko, 2010. "Factors of effective strategy implementation: Empirical evidence from Slovenian business practice," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 15(3), pages 207-236.
    6. Huang, Xiaoxia, 2007. "Two new models for portfolio selection with stochastic returns taking fuzzy information," European Journal of Operational Research, Elsevier, vol. 180(1), pages 396-405, July.
    7. Ballestero, E. & Gunther, M. & Pla-Santamaria, D. & Stummer, C., 2007. "Portfolio selection under strict uncertainty: A multi-criteria methodology and its application to the Frankfurt and Vienna Stock Exchanges," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1476-1487, September.
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    More about this item

    Keywords

    Project portfolio management; Strategy implementation; Process models of project portfolio management; Deterministic and stochastic optimization of project portfolio; Tvorba a řízení portfolia projektů; Implementace strategie; Procesní modely řízení portfolia projektů; Deterministická a stochastická optimalizace portfolia projektů;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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