Project Portfolio Management (PPM) focuses on the integration and alignment of projects with the business operation in order to achieve most value and cost-efficiency for the investment in projects. PPM is often a challenge and especially so for improvement projects where PPM is considerably underdeveloped. In this paper, we present a model for Project Portfolio Improvement combining predicted success and expected value. The core of the model is about measuring expected value up against a measure of the predicted project success rate. Value can for example be measured as earnings/profit, maturity, and/or efficiency. Success can be measured using the ImprovAbility model that is part of ISO 33014. We then present a case from Vestas, one of the leading windmill producers in the world. Vestas have used the model for project portfolio management in three rounds in 2016-19 to improve their abilities and increase the rate of success dramatically. Finally, we conclude that our generic model may be very useful for process improvement and innovation PPM in other companies.
|Title of host publication||At the junction of project leadership and innovation|
|Editors||Magnus R.P. Hansen, Jan Pries-Heje|
|Place of Publication||Frederiksberg|
|Publication status||Published - 2020|