PRINCIPLES IN PROJECT PORTFOLIO

MANAGEMENT

Lars K. Hansen
Assistant professor
Keywords: Aarhus Universitet
• Project portfolio management (PPM)
• Principles Per Svejvig
Associate professor
Aarhus Universitet

Webinar | December 12, 2023, 08:30 am – 10:00 am | Dansk projektledelse

VELKOMMEN TIL WEBINARET

Behersk projektporteføljeledelse med 17 principper

Vi begynder kl. 8.30

Mens du venter kan du:

• Starte med at sikre, at du står med dit for- og efternavn og ikke initialer eller lign.
• Sige hej i chatten

Vi glæder os til at se dig om lidt!

Agenda

Velkomst (Michael Borre)

Agenda (Per Svejvig)
Principper i projektledelse (Per Svejvig)
De 17 principper i Projektporteføljeledelse baseret på forskning (Lars Kristian Hansen)
Deltagerne vurderer deres brug af de 17 princippper (MENTIMETER)
Q+A session: Deltagerne deler deres erfaringer med de 17 principper
Tak for i dag

Slides er hovedsagelig på engelsk!

Definition of Principles

“…a fundamental truth or proposition that serves as the foundation

for a system of belief or behavior or a chain of reasoning” (Blampied
et al. 2023: 592)

An example of a principle is to “Create a collaborative project team

environment” (Project Management Institute 2021: 28)
Principles in PRINCE2
and Agile Manifesto

PRINCE2-2009 includes the seven principles

and may already be from first version in 1996
(Office of Government Commerce 2009)
PMBOK Guide from process-based to principles-based standard for
project management (ANSI/PMI 99-001.2021)

(Project Management Institute 2021)

The research behind the
presentation

This presentation is grounded in an article

published in Project Management Journal
in 2023.
Topic: Principles in Project Portfolio
Management

(Hansen and Svejvig, 2023)

7
Takeaways
Takeaways

After the presentation you…

 Can define project portfolio management
(PPM)
 Can mention four categories of PPM principles
 Knows about 17 PPM principles
 Can assess your organization's adherence to
the 17 PPM principles
 Create a roadmap to improve PPM in your
organization

12 DECEMBER 2023 9
Definitions
Defining Project Portfolio
Management (PPM)

Principles in Project
portfolio management 12 DECEMBER 2023 11
A bit more about principles

Principles can be understood as

fundamental truths that serve as the
foundation for a system of behavior
(Sankaran et al., 2021)
Principles do not dictate what to do in
specific situations. Instead, they more
broadly tell us how to think in different
situations (Bragg, 2018)
Thus, principles enable us to act in our
day’s organizational environment with
high uncertainty (Fuchs et al., 2023)

12
Our research results
and how we got there
How the PPM principles emerge from 669 PPM articles
Research process

Results

In short:
We conducted a structured literature
review on PPM principles by drawing on
669 articles from seven decades of PPM
research [1950-2019]

14
The four categories consist of
17 PPM principle

Create readiness to change

and deal with paradoxes

Secure strategy effectiveness

and stakeholder involvement

Build a coherent
PPM system

Balance
the portfolio

(Hansen and Svejvig, 2023b)

15
Balance the portfolio

Create readiness to change

and deal with paradoxes

Secure strategy effectiveness

and stakeholder involvement

Build a coherent
PPM system

Balance
the portfolio

(Hansen and Svejvig, 2023b)

16
Balance the portfolio
Principles Themes Examples from the literature
Use Saaty’s Analytic hierarchy process
Priority setting using (AHP) model, to evaluate the value of
(P1) Find priority criteria
multicriteria approaches competing project goals (Meade &
Presley, 2002)
Computed models Real options model to calculate the option
(P2) Formalize selection
(miscellaneous), Real option value of all projects (Bardhan et al., 2004)
Portfolio matrix to support
(P3) Use tools to support Use a matrix to balance the portfolio of
decisions, Software-supported
decision-making projects (Cooper et al.,1997)
decisions
Problems in multiple projects
(P4) Managing portfolios in environments, efficiency, Importance of single-project management
multiple project environments Contingency model (risk) and in PPM (Martinsuo & Lehtonen, 2007)
resources
The shortcomings of Understand the shortcomings of selection
(P5) Comprehend the
mathematical methods, Less models. They are not tested empirically
deficiencies of computed
mathematically complex and are not feasible in practice (Baker &
methods
selection and evaluationPresentation
model Title
Pound, 1964)
12 DECEMBER 2023 17
Balance the portfolio: (P3) Use tools to support decision-making

“A chemical company
uses this bubble diagram
to represents its portfolio”
(Cooper et al 1997)

18
(Cooper et al., 1997)
Build a coherent PPM system

Create readiness to change

and deal with paradoxes

Secure strategy effectiveness

and stakeholder involvement

Build a coherent
PPM system

Balance
the portfolio

(Hansen and Svejvig, 2023b)

19
Build a coherent PPM system
Principles Themes Examples from the literature
Understand maturity in four stages (ad
hoc, defined, managed, and
P6) Increase maturity by Maturity models, Guided by
synchronized). Move up in maturity level
adopting best practices benchmarks
to increase portfolio success (Jeffery &
Leliveld, 2004)
Stage-gate models, Front-end
Build more effective go/kill decision points
(P7) Apply a process view activities, An integrated model,
(Cooper, 1990; Cooper et al., 2002)
Integrated planning process
Implement and link elements,
Horizontal and vertical Recognize the importance of portfolio
(P8) Develop governance
coordination, Portfolio control linkage mechanisms (Hansen et al., 2017;
mechanisms
mechanisms, Program Müller et al., 2008)
frameworks
Understand PPM decision-making as
Contingency model, Learn
having different decision-making styles
P9) Create a supportive from the best performers,
(evidence-, power-, and opinion-based),
culture Adapt decision-making style to
and each decision style demands distinct
the needs of the organization
input (Cooper et al., 1999)
12 DECEMBER 2023 20
Build a coherent PPM system: (P7) Apply a process view

Stage-gate-model

(Cooper 1990)

21
Strategy effectiveness and stakeholder involvement

Create readiness to change

and deal with paradoxes

Secure strategy effectiveness

and stakeholder involvement

Build a coherent
PPM system

Balance
the portfolio

(Hansen and Svejvig, 2023b)

22
Strategy effectiveness and stakeholder involvement
Principles Themes Examples from the literature
Implementing strategy through
Use benefits realization management
projects, Value as an
(P10) Focus on strategic (BRM) to close the gap between strategy
integrating means between
effectiveness planning and execution (Serra & Kunc,
strategy planning and
2015)
execution, Effectiveness

(P11) Apply a holistic value Broadening the scope of value, Assessing the project portfolio value by
approach Strategic, Noncommercial using a pluralistic value approach (Ang et
value, Sustainability al., 2022)

Senior management
(P12) Focus on stakeholder involvement, Portfolio and The effects of the engagement intensity of
involvement, roles, and middle management senior managers on success are inverted
responsibilities involvement, Customer u-shaped (Beringer et al., 2013)
relations
PPM is more than rational Including all projects in PPM is not
(P13) Use alternative
decisions, Broaden project and feasible and may impact employees’
understandings
portfolio scope motivation (Blichfeldt & Eskerod, 2008).
Presentation Title 12 DECEMBER 2023 23
Strategy effectiveness and stakeholder involvement:
(P11) Apply a holistic value approach

24
(Ang et al, 2022)
Create readiness to change and deal with paradoxes

Create readiness to change

and deal with paradoxes

Secure strategy effectiveness

and stakeholder involvement

Build a coherent
PPM system

Balance
the portfolio

(Hansen and Svejvig, 2023b) 25

Create Readiness to change and deal with paradoxes
Principles Themes Examples from the literature
Dynamic capabilities, External Use sensing, seizing, and transforming
(P14) Cope with uncertainty (Petit, 2012)
and internal environment-
oriented approaches,
Focus on the key processes that drive
(P15) Establish preconditions Preconditions for innovation exploration efforts and the shape
for innovation and change portfolios, Lineage innovation trajectory; this is defined as
management multiproject lineage management (Maniak
& Midler, 2014)
Focus on commitment, transparency,
(P16) Enable agility Agile at scale, Agile stage-gate
collaboration, and team orientation
outside of individual projects models
(Stettina & Hörz, 2015)
Ambidexterity, Balancing
flexibility and structure by
(P17) Deal with paradoxes in improvising, Project structures Apply structural and sequential separation
transitional times to achieve competitive of exploration and exploitation (Eriksson,
innovation projects, Capability 2013)
paradox, Deliberate and
emergent strategyPresentation Title 12 DECEMBER 2023 26
Create Readiness to change and deal with paradoxes:
(P14) Cope with uncertainty
Build Dynamic capabilities

Sensing
Seizing
Transforming
Inspired by Teece et al (2016)
12 DECEMBER 2023 27
 Assess your
organization's
adherence to the 17
PPM principles
Does your organization adhere to
the 17 principles? Principles Degree the principle
is applied in our
organization [1-7]
Balance the portfolio
(P1) Find priority criteria
(P2) Select
(P2) selection
the right
Formalize projects
(P3) Use tools to support decision-making
(P4) Managing portfolios in multiple project
environments
(P5) Comprehend the deficiencies of computed methods
Build a coherent PPM system
(P6) Increase maturity by adopting best practices
(P7) Apply a process view
(P8) Focus on governance
(P9) Secure a supportive culture
Secure strategy effectiveness and stakeholder involvement
(P10) Focus on strategic effectiveness
(P11) Apply a holistic value approach
(P12) Focus on stakeholder involvement, roles, and
responsibilities
(P13) Use alternative understandings
Create readiness to change and deal with paradoxes
(P14) Cope with uncertainty
(Hansen and Svejvig, 2023b)
(P15) Establish preconditions for innovation and change
(P16) Enable agility outside of individual projects
(P17) Deal with paradoxes in transitional times
(Hansen and Svejvig, 2023b)
29
Scale to assess your organization’s
use of PPM principles

1 - Minimal degree: The organization rarely or never applies the

principle, and the principle is not integrated into its practices.
2 - Low degree: The organization occasionally applies the
principle, but it is not a consistent or comprehensive practice.
3 - Moderate degree: The organization applies the principle, but
there is room for improvement in terms of consistency and
breadth of application.
4 - Significant degree: The organization consistently applies the
principle in project portfolio management, demonstrating good
integration into its practices.
5 - High degree: The organization applies the principle with a
strong emphasis on its consistent application throughout the
organization.
6 - Very high degree: The organization extensively applies the
principle with high consistency and integration into its
processes.
7 - Full degree: The organization fully embraces and
consistently applies the principle all making it a fundamental and
guiding aspect of its decision-making processes and practices
30
 Principle
assessor

We will return to assessing your

organization’s use of the 17 principles
but first, we will talk about how to
make a roadmap….

31
Create a roadmap
Bridging the gap between theory
and practice with three steps

Hansen and Svejvig (2023) Your organization

S.1 S.2 S.3

PPM principles PPM principles
in theory in practice

Grounded in research, Useful, adapted,

abstract, and universal situated
Creating a roadmap S.2 Organizational implementation
1) Bring stakeholders together to
in three steps formulate and revise
Input principles
2) Give a written list of the PPM
principles to relevant employees
Input 3) Align goals, and key metrics,
with principles.
Fuchs et al (2023)

Strong principles:
PPM-defining
Distinctive S.3
Debatable
Transferable PPM
Integral Use, communicate, and
people revise your organization’s
Hansen and Svejvig (2023)
list of PPM principles

Principle 1
Principle 2
Principle A Principle 2
Principle B Principle 3
Principle C Select and tailor Principle 4
Principle D Principle N
Principle E
Principle F Refer to your principles as often
Principle N
S.1 as possible!

Your domain-specific principles 34

Wrap-up
Takeaways

After the presentation you…

T1  Can define project portfolio management
(PPM)
T2  Can mention four categories of PPM principles
T3  Knows about 17 PPM principles
T4  Can assess your organization's adherence to
the 17 PPM principles
T5  Create a roadmap to improve PPM in your
organization

12 DECEMBER 2023 36
 T1
Can define project
portfolio
management (PPM)
Can create a
roadmap to improve
PPM in your
organization
T5 Can mention four
categories of PPM
Can assess your
principles T2
organization's
adherence to the 17
Principles in Project
PPM principles portfolio management
T4
T3
Know broadly about
the 17 PPM (P14) Cope with uncertainty
(P11) Apply a holistic value approach principles

(P7) Apply a process view

37

(P3) Use tools to support decision-making

Passing the baton to the audience

38
 Assess your
organization's
adherence to the 17
PPM principles
Assess your organization's
adherence to the 17 PPM principles The Menti-quiz will be a survey
based on this framework

(Hansen and Svejvig, 2023b)

40
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48
TAK FOR I DAG!