Effectiveness in project portfolio management: Toward a conceptual definition

While project portfolio management (PPM) has increased its significance in various business contexts, research on effectiveness of PPM is still limited. In fact, PPM effectiveness has not been clearly defined; factors contributing to PPM effectiveness have not been thoroughly investigated; and measurement criteria for PPM effectiveness have not been proposed. The lack of such research has practitioners continuing with a PPM approach that has not been measured as to its effectiveness and impact on business results. As part of a major research initiative, the objective of this study is to develop a conceptual definition of PPM effectiveness. Based on extensive literature review and case study research with three market-leading organizations in the US, the author proposes a definition of PPM effectiveness. After understanding what PPM effectiveness is, practitioners should be able to create organizational conditions that promote PPM.