Introduction

Project portfolio management is stated as process to make decisions about the project investment mix as well as the project policy to manage the portfolio of the organization. Portfolio management helps in matching investments of the organization to the project objectives, includes asset allocation for different individuals as well as provides a balance against the risk performance of the organization (Danesh et al., 2018). Portfolio management mostly refers to manage the investments of the individuals including mixing of policies and balance the risk against performance. This report includes discussing the portfolio management for an organization known as AusBioCon Company (ABC) which is an Australian based biotechnology company. This report explains the situational analysis of portfolio in the organization, include opportunities and threats, states the development plan and the tools and techniques used for implement portfolio in the organization.

Situational context and evaluation

Portfolio management

As ABC is a biotechnology-based company, it is the highest research as well as development industry all over the world. As the demands in the ABC organization are growing and there is a need to implement project management in the business to meet the increasing demand of the business. The project portfolio management solution which are used by different companies are mainly designed for supporting the development of new products and include more innovations in the market faster compared to others (Hadjinicolaou, & Dumrak, 2017). The company can select the projects which will have more funds with the help of portfolio management and they can make their own decisions which will interest their products selling. Depending on the size of the project and the need of project which are to be organized by ABC, portfolio management will help the company to manage the new development projects and there should be various stages as well as include different new ideas to launch the new product.

Current project management and scope for improvement

The company doe not have any project management methodologies implemented in the busines process. The company has their annual strategy planning and the expectance of the company is to focus on the main competence which involves the product innovations for the project which are undertaken (Alexandrova, 2018). The business needs to expand their revenues stream with the development of new product and make an entry to the emerging market. To fulfil this aim, the company presently does not have any project management methodologies or processes. But there is a scope for the organization to include project management methodologies in the business process. The company needs to expand the revenues and for that portfolio management is necessary to manage the process of new product development in the business (Kopmann et al., 2017). The portfolio management in ABC also has the scope to improve the business process and enhance the skills of project as well as manages the product of the managers in the business. Portfolio management in ABC organization will be improve the technical excellence, improve the intellectual property as well as will motivate the staffs along with capital funding in the project.

Sustainability criteria

Decision making for sustainability states a robust model to make development which meets the need of the project without compromising the future generation’s ability by meeting the need of the company presently (Kharat, & Bhukya, 2018). There are different sustainability models which are used by the organization meet the need of the business. The business decisions making process mostly incorporates the sustainability in the decision-making process of the organization. This helps to assess the strategic option for the corporate sustainability. Sustainability criteria mainly helps to maintain the process and the state of the business indefinitely (Patanakul, 2020). Sustainability in the business helps to change the decision-making process, and leads to different specific archetype of decisions for the business. Sustainability development mostly is gained from broad acceptance among the political as well as other stakeholders in the society.

For incorporating the sustainability criteria in the business decision making process, the business should establish a clear objective for sustainability in the business. The business partners of the business should be engaged and the customers should know the need of sustainability in the business (Ayyagari, & Atoum, 2019). The company should also communicate sustainability goals in the business to manage the decision-making process in development of new products in the company.

Opportunities and threats

Success of project portfolio management process

With the implementation of portfolio management in the business, ABC organization will get a large number of advantages which can be used for managing the project more effectively (Lima et al., 2018). The success that the organization is expected to achieve with the implementation of portfolio management in the business are:

1. Improving the selection process of project in the business.
2. The business will have a better view of the big picture of the new product developments in the organization.
3. The portfolio management helps to focus on the objective of the business goals in the business.
4. There can be collaboration over the company competition in the business process.
5. The portfolio management includes more efficient use of different resources.
6. The portfolio management provide more accurate performance for project data in the business (Marco et al., 2018).
7. The portfolio management increases the deliveries of the project in timely manner.
8. This helps to decrease the operational risks in the project.
9. Project portfolio helps to get more informed decision making in the business.
10. With the portfolio management, the company can increase their ROI in the busines process.
    
    

Challenges with the adoption of portfolio management

Portfolio management designs to provide clarity as well as accountability to the project management and the delivery process of the project. The implementation of the portfolio management changes the way to conduct the project. But there are some initial challenges for the implementing the portfolio management tools in the business. The challenges include

1. The existing culture of the company and the in-house politics: The main barrier in adoption of project portfolio management in the business is because of existing culture of the company and the in-house politics of the organization (Kock, & Gemünden, 2019). The staffs of the company are to be educated related to the benefits of the portfolio management so that they can assist the company to adopt the tools of portfolio management in the business process.
2. Failure to manage the project resistance: The management of the company might sometimes fail to take the identify the issues or manage them early in the project process so that there is no mistake in the adoption of portfolio management (Gemünden et al., 2020). There will be changes in the company gradually.
3. Senior management buy in process: The buy in process of senior management benefits as well as values the portfolio management to bring in the business to the adoption of the process in the business. The management should include criteria to select, authorise as well as approve the projects.
4. Changes and disruption: Adoption of portfolio management brings in challenges of disruption and selection of the tool for managing portfolio in a company should be done carefully so that the business challenges can be overcome.
   
   

Development of the plan

Elements to introduce project portfolio and impact on strategic goals

For implementing a successful project portfolio management, there are different common procedures, applications as well as training are needed to that effective sharing of information is needed for managing the projects (Killen, 2017). The organizations should include decision making, project status, prioritization of project, and includes goal setting for the project and also should includes resource capacity for the project. The particular elements which are needed for introducing the portfolio management in the business includes

1. Having proper access to the current situation of ABC’s working process.
2. The company needs to establish different investment objectives.
3. The asset for the company should be analysed and there is a need of proper asset allocation in the development process of the portfolio management plan.
4. The company should have an investment plan for investing money on the project plan. Proper planning is required for implementing portfolio management in the business process.
5. The project will need proper monitoring, rebalancing as well as measuring of the result for the portfolio investment in the business.
   
   

Project portfolio management model

With the project management institute with two different standards in the area of portfolio management. There are different models of project portfolio management which helps in decision making and states the investment process of money in the project development (Caizzi et al., 2017). There four different categories of portfolio management which includes active portfolio management, passive portfolio management, discretionary portfolio management, as well as non-discretionary portfolio management. The portfolio management which is to be used in the project management of ABC company is active portfolio management. This includes a high-level expertise which are present in the markets (Yamakawa et al., 2019). The fund manager helps to implement different active strategy which primarily aims in generating better market returns in the market. The active strategy mainly requires constant evaluation in the market to buy different assets which are undervalued as well as sell the assets when they exceed the norm.

Implementation plan for project portfolio management

Portfolio management mainly ensures the organizations for executing the right project at right time and implementing portfolio management in the ABC business process needs a series of steps which are to be followed. Portfolio management is the main key for the competitive advantage which allows the senior management for making effective decisions in a timely way. The steps which are includes to implement the portfolio management are:

1. Defining the scope of the project: Includes the functional scope and define the scope of the project.
2. Including the implementation plan for the team: This phase includes defining the rules which are needed by the client and the implementation team (Ghasemi et al., 2018). There are multiple roles in the implementation process which are satisfied by single source.
3. Defining a project estimation: There are many activities which are to be performed together to complete the working estimation and that project implementation should be completed within the time period.
4. Include generic schedule for the project: The project portfolio management plan should be generic and should accommodate the client specification along with the availability of resources.
5. Developing software licensing: This phase includes a packaged consisting pf application which has been delivered from the components which supports the installation process.
   
   

Tools and techniques

Tools to manage different types of project portfolio

The tools which are used for managing the project portfolio are:

1. Planisware
2. Clarizen One
3. Asana
   
   

The tool which can be used for managing the portfolio management of ABC company will be asana tool. The tool is mainly a cloud-based solution which is to be provided in the organization to handle multiple projects (Sarbazhosseini et al., 2019). The software mainly offers a scheme as well as business solution for managing the tasks in the project and ABC company can manage all their project at the same time using this tool. This tool also supports different tracking view on different ongoing projects and includes overview of the project progress in the project.

Conclusion

The portfolio management includes discovery, as week as asset portfolio which categorizes the investments in each phases of IT life cycle and enables in decision making related to inventory, balancing, aligning as well as optimization of investments accordingly. Portfolio management helps to embrace the technology which enables to lower down the cost of project procurement management and the cost of completing and running the projects. Portfolio management helps to reduce the payback period of the project. For improving the portfolio management in the organization, the organization should include a culture to promote management of portfolio in the business process to ensure that the processes are rooted well in the company. Although portfolio management is needed to manage the project process life cycle, the management should be aware of all the challenges that the project will face to complete the process of project development. Adopting the poor tools as well as technologies which are in-effective includes inadequate knowledge as well as understanding of the project. The company should adopt different tools which can help to manage the portfolio of the project effectively. The managers of the project should agree with a suitable time line to complete the project development process.

References

Alexandrova, M. (2018). A principal component analysis of project portfolio management practices. Ekonomicko-manazerske spektrum, 12(2), 96-105.

Ayyagari, M. R., & Atoum, I. (2019). Understanding Customer Voice of Project Portfolio Management Software. International Journal of Advanced Computer Science and Applications (IJACSA), 10(5), 51-56.

Caizzi, C., Young, J. B., & Zellner, D. (2017). Project portfolio management at Northwestern University Libraries: Developing an innovative solution to managing project life cycles. Journal of Digital Media Management, 6(2), 195-204.

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.

De Marco, A., Bozzo, R., Rafele, C., Guida, R., & Grimaldi, S. (2018). Measuring the Effectiveness of Risk Assessment in Project Portfolio Management. XXIII Summer School “Francesco Turco”–Industrial Systems Engineering.

Gemünden, H. G., Kock, A., Schultz, B., & Kopmann, J. (2020). Project Portfolio Management Information Systems’ Positive Influence on Performance–The Importance of Process Maturity.

Ghasemi, F., Sari, M. H. M., Yousefi, V., Falsafi, R., & TamošaitienÄ—, J. (2018). Project portfolio risk identification and analysis, considering project risk interactions and using Bayesian networks. Sustainability, 10(5), 1609.

Hadjinicolaou, N., & Dumrak, J. (2017). Investigating association of benefits and barriers in project portfolio management to project success. Procedia Engineering, 182, 274-281.

Kharat, V. J., & Bhukya, K. R. N. (2018). Best practices in project portfolio management for dynamic decision making. The Journal of Modern Project Management, 6(1).

Killen, C. P. (2017). Managing portfolio interdependencies: The effects of visual data representations on project portfolio decision making. International Journal of Managing Projects in Business.

Kock, A., & Gemünden, H. G. (2019). Project lineage management and project portfolio success. Project Management Journal, 50(5), 587-601.

Kopmann, J., Kock, A., Killen, C. P., & Gemünden, H. G. (2017). The role of project portfolio management in fostering both deliberate and emergent strategy. International Journal of Project Management, 35(4), 557-570.

Lima, A., Fernandes, G., & Machado, R. J. (2018, September). Mapping between PMI and OGC artefacts for project portfolio management. In 2018 International Conference on Intelligent Systems (IS) (pp. 754-762). IEEE.

Patanakul, P. (2020). How to Achieve Effectiveness in Project Portfolio Management. IEEE Transactions on Engineering Management.

Sarbazhosseini, H., Banihashemi, S., & Adikari, S. (2019, July). Human-centered framework for managing IT project portfolio. In International Conference on Human-Computer Interaction (pp. 432-442). Springer, Cham.

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