Key attributes of effectiveness in managing project portfolio

While project portfolio management (PPM) has been practiced, the understanding of PPM effectiveness is still limited. The lack of such an understanding has practitioners continuing with a PPM approach that has not been measured as to its effectiveness and impact on business results. To promote a better understanding of PPM effectiveness, this study investigates PPM practices in real-life business settings to identify key attributes of PPM effectiveness. As a result, six attributes of PPM effectiveness were identified. The strategic attributes are 1) strategic alignment, 2) adaptability to internal and external changes, and 3) the expected value of the portfolio. The operational attributes are 1) project visibility, 2) transparency in portfolio decision making, and 3) predictability of project delivery. Based on these attributes, a definition of PPM effectiveness was purposed. This paper concludes with contributions and implications, including limitations and agenda for future research. (C) 2015 Elsevier Ltd. APM and IPMA. All rights reserved.