Chapter 7

Contributions and Implications

This qualitative study was conducted to investigate the PPM practices of organizations in order to propose a definition of PPM effectiveness, identify key factors impacting PPM effectiveness, and propose measurements of PPM effectiveness. From this study, PPM effectiveness is the organizational capability to (1) form and govern a project portfolio such that the portfolio aligns with the organization's strategic direction, addresses risks and opportunities, and is adaptive to the internal and external changes in order to provides short and long-term value or benefits to the organization, and (2) to manage projects in the portfolio to promote transparency, process consistency, visibility and predictability of projects in the portfolio, and to promote integrity, cohesion, and the morale of the project community. The research findings also suggest keys factors impacting PPM effectiveness, which include (1) the formal strategic planning and capital budgeting process, (2) organizational entities responsible for project and portfolio management and their organizational placement, (3) frameworks and processes for project portfolio management and information systems support, (4) organizational culture, and (5) committed, active, and competent participants. In terms of measurement, PPM effectiveness should be measured using (1) outcome measurements and (2) process measurements. The outcome measurements assess PPM effectiveness based on the accomplishment of the portfolio outcomes. The process measurements help evaluate the efficacy of the processes and evaluate whether or not the process may generate desirable outcomes.

The results of this study contribute to the theory and practice of project portfolio management. In terms of the theoretical contribution, first, this research proposes an empirically grounded definition of PPM effectiveness that serves as a platform for future studies on PPM effectiveness. Future studies can be conducted to investigate the linkage between PPM effectiveness and organizational effectiveness and the linkage between PPM effectiveness and project management effectiveness or team effectiveness. These studies should promote a better understanding of organizational effectiveness, especially in the context of a project-oriented organization. In addition, to further improve the definition of PPM effectiveness, future research can be conducted to validate and fine-tune this definition to different settings. Second, this study identifies key factors impacting PPM effectiveness. Researchers can use these findings as a basis for conducting more focused studies to further understand how these factors impact PPM effectiveness. Future studies can be conducted to investigate the relationships among these factors and their impact on PPM effectiveness. This includes studies on mediating and moderating relationships among these factors. Third, this study proposes measurements of PPM effectiveness. These measurements can be used to assess PPM effectiveness in future sample studies.

For practitioners, the findings of this study provide several managerial implications. First, the study reveals PPM practices of five organizations. These organizations have different goals toward the implementation of PPM, and therefore, represent different levels of PPM maturity. Practitioners can use this information as a benchmark for development and improvement of their PPM practices. Second, the study proposes a definition of PPM effectiveness, derived from the research evidence and literature review. By understanding what PPM effectiveness is, practitioners should be able to develop and implement a PPM approach that will enhance the effectiveness. While an overall definition of PPM effectiveness was proposed in this study, practitioners should contingently adopt this definition. Within one organization, different functions may have different responsibilities for PPM. Those functions should focus on certain elements of PPM effectiveness that are relevant to their responsibilities. As discussed in this study, the Development PMO of Beta was not responsible for project selection and prioritization. Their main responsibility was the successful delivery of projects in the portfolio. While overall PPM effectiveness should be achieved, the PPM effectiveness in the context of the Development PMO should be perceived in terms of resource allocation, project success, and integrity, cohesion, morale, and learning of the project management community. Third, since the study reveals key factors impacting PPM effectiveness, it gives practitioners guidelines on what conditions they should create to promote PPM effectiveness. Fourth, the measurements of PPM effectiveness proposed in this study should provide practitioners with a basis for developing appropriate measurements contingent to their organization and PPM practice.