This presentation analyzes the potential impact of applying project portfolio management on project success

1. Supervisor : Dr. Hemanta Doloi Presented By: Iman Baradari

2. Table of Content
 Introduction
 Literature review: Project success
 Literature review: Project portfolio management(PPM)
 Research Aim, Hypothesis and Method
 Different levels of Maturity in PPM
 Research Results – Part 1
 Research Results – Part 2
 Research Results – Part 3
 Conclusion
 Acknowledgement
 References

3. PPM definitions
Nowadays Project portfolio management is considered as a strategic tool for
organizations to achieve their goals and objectives.
 Shehnar et al. (Shenhar, 1997) Described project and project portfolios as
powerful strategic weapon in organizations to achieve their strategic
plans.
 Project management Institute (PMI) (2008)described project portfolio
management as “coordinated management of portfolio components to
achieve specific organizational objectives” and concentrated on the
effects of applying project portfolio management on organization in order
to achieve their strategic goals.
 On the one hand Office of Government Commerce (OGC) (Stephen
Jenner, 2011) defined project portfolio management as a collection of
strategic processes to prepare the most effective business balance.

4. Research Reason
PPM Is always described as an approach that
helps organizations to achieve their strategies
Huge amount of organizations do not have
clear documented strategy plan
Regarding the popular definition of PPM, many
of project oriented organizations do not believe
that PPM is effective for them
?
Not only PPM can help organizations to achieve
their goals and objectives, but also it helps
them to improve their project success rate

5. The Organizational context of
Portfolio management
In this research the second relationship of project portfolio management is
evaluated. In the other word, this theory is examined that is there any correlation
between applying project portfolio management and Project success?

6. Literature Review
2 different literature review are carried out in order to
accurately define Project portfolio management and project
success.

7. Literature Review 1
Project success

8. Literature Review 2
PPM Processes and functions

9. Research Aim
The main aim of the research is
evaluating the impact of Applying
project portfolio management on the
project success. According to our
literature review on project success
and project portfolio management,
Aaron et al. (Shenhar et al., 2001) and
OGC (Stephen Jenner, 2011)models
have been selected as reference
models of the research.

10. Research Hypothesis
Management and Meet time and
control budget
Achieved goals
PPM Maturity levels
Resource and objectives
management
Project success
Customer
Financial Satisfaction
management
User satisfaction
Risk management
Project team
satisfaction
Stakeholder
management
Business success
Benefit
management Increased market
share and benefit
Organizational
governance Prepare the future

11. Research Hypothesis
Hypothesis 1: Is there any coefficient correlation
between maturity level of applying project portfolio
management and project success?
This Hypothesis aggregates project success criteria
and examines the correlation between project
success and different maturity levels of project
portfolio management.

12. Research Hypothesis
 Hypothesis 2: Is there a coefficient correlation between maturity levels of applying project portfolio
management and Meeting project time and budget as one of the most important project success
criteria?
 Hypothesis 3: Is there a coefficient correlation between maturity levels of applying project portfolio
management and Achieved project goals and objectives as one of the most important project
success criteria?
 Hypothesis 4: Is there a coefficient correlation between maturity levels of applying project portfolio
management and Customer satisfaction as one of the most important project success criteria?
 Hypothesis 5: Is there a coefficient correlation between maturity levels of applying project portfolio
management and user satisfaction as one of the most important project success criteria?

13. Research Hypothesis
 Hypothesis 6: Is there a coefficient correlation between maturity levels of applying
project portfolio management and increased market share and profit as one of the
most important project success criteria?
 Hypothesis 7: Is there a coefficient correlation between maturity levels of applying
project portfolio management and exploring new opportunities or innovations as
one of the most important project success criteria?
 Hypothesis 8: Is there a coefficient correlation between maturity levels of applying
project portfolio management and Preparing the future as one of the most
important project success criteria?

14. Research Survey
In order to test the mentioned hypotheses a survey is designed
with 3 sections.
Section 1
Section 2
Section 3
Receiving
demographic Evaluating and
information about identifying the Project
respondents and their Portfolio Management Evaluating the impact
organization. Maturity level in the of applying PPM on
Respondents’ different project
organizations success criteria

15. Demographic information

16. Demographic information

17. Classification of maturity levels

18. Evaluating the PPM maturity levels
According to received data, each respondent has 7 marks for different functions
and processes of project portfolio management. The average of these marks is
rounded in the SPSS software and the result assigned to the respondent’s
organization as a level of maturity. Therefore at the end of this stage all of
organizations have a level of Maturity between one and five. The distribution of
respondents in different levels of maturity can be seen as following.

19. Major Results
Correlation
1
Between PPM
maturity levels
and project
success criteria
3 2 Impact of
Evaluating the Applying PPM
Coefficient of on project
determination success without
considering
maturity levels

20. Research Method
Meet time and
budget
Achieved goals
PPM Maturity levels
and objectives
Project success
Customer
1 to 5 -2 to +2 Satisfaction
Variable 1 Variable 2 User satisfaction
Significant Negative Project team
impact(-2, Significant satisfaction
positive impact(+2)
Business success
Increased market
share and benefit
Prepare the future

21. Research Method
Regarding this fact that the research aim is
analyzing the coefficient relationship between
project portfolio management levels and its
impact on project success, Spearman approach
helps us to mathematically compute the
degree of association between two variables.
• If R∈ [0.8, 1] or r∈ [-1, -0.8], it shows that
there is a strong relationship
• If R∈ (0.5, 0.8) or r∈ (-0.8, -0.5), it shows
that there is a moderate relationship.
• And if R∈ [-0.5, 0.5] it shows that there is a
weak relationship.

22. Results – Part 1
The following table shows the results in order to evaluate the coefficient
correlation between applying project portfolio management and project
success. Considering this fact that R is equal to 0.89 it shows that there is a
positive correlation between these variables. Based on the Strong, moderate
and weak correlation definition, it can be stated that there is a strong positive
coefficient correlation between project portfolio management maturity level
and project success. In other words, increasing the maturity level of project
portfolio management can lead to the project success improvement.
PPM
Maturity
Count Impact STD R Sig
Levels
Means
Level 1 5 0.32 0.17
Level 2 16 0.51 0.24
Level 3 15 0.51 0.23 0.89 0.001
Level 4 22 1.22 0.30
Level 5 22 1.80 0.25
1

23. Results – Part 1
Type of Coefficient
Project success criteria title R
Correlation
Meet Project time and budget 0.57 Positive Moderate
Achieve project Goals and Objectives 0.71 Positive Moderate
Achieve Customer satisfaction 0.82 Positive Strong
Achieve User satisfaction 0.67 Positive Moderate
Increase the Market share and organization profit 0.72 Positive Moderate
Explore new opportunities or innovations 0.77 Positive Moderate
Make new skills and prepare for the future 0.67 Positive Moderate
Project Success as a whole 0.89 Positive Strong
1

24. Results – Part 1
Maturity level
Project success critical Level Level Level Level Level
1 2 3 4 5 The Mean
Meet project time and budget 1.0 1.12 1.26 1.72 1.9 value for the
Achieve business goals and objectives 0.60 0.87 1.2 1.5 2.0
impact of PPM
on project
Achieve customer satisfaction 0.00 0.31 0.46 1.31 1.90
success
Achieve user satisfaction 0.00 0.25 0.4 1.0 1.31 criteria in
Increase the market share and different level
0.20 0.18 0.53 0.9 1.72
organization profit of maturities
Explore new opportunities or innovations 0.0 0.12 0.46 0.95 1.72
Helps to make new skills for the future 0.0 0.68 0.8 1.18 1.86
Total grade 0.31 0.5 0.73 1.22 1.77
1

25. Results – Part 1
2
Impact of applying PPM on project
1.8
1.6
1.4
1.2 The project
success
1
success trend in
different PPM
0.8
maturity levels
0.6
0.4
0.2
0
level1 level2 level3 level4 level5
Maturity Level
1

26. Results – Part 1
the impact of PPM
on project success
criteria in different
levels of maturity
1

27. Results – Part 2
The impact of applying PPM without 2
considering level of maturities

28. Results – Part 2
2

29. Results – Part 3
Coefficient of determination
The coefficient of determination, commonly called the “R-squared" value, for
maturity level of project portfolio management and project success is calculated
that is 79.21. It means that although there are some other factors that can effect
on project success, applying project portfolio management is one of the most
important factors. In other words, 79% of variation in “Project success” can be
explained by variation in the “maturity level of project portfolio management”.
. It means that improving the maturity level of project portfolio management is
more reliable method to improve project success rate compared to other
approaches.
1

30. Conclusion
This research has 2 major outcomes. Firstly, some organizations believe that they do
not need project portfolio management because they do not have clear strategy
plan. But this research shows that project portfolio management not only is
effective because of the mentioned statement, but also it can be an effective
approach in improving project success rate.
Secondly, based on results project portfolio management has less impact on 3
project success criteria including achieving user satisfaction, increasing the market
share and organization profit and exploring new opportunities and innovations. It
indicates that existing processes and functions are not effective enough to help
organization to achieve project success in these areas. Therefore this research can
be an appropriate base for further researches to analyze the new processes and
functions or improve existing processes and functions in order to increase the
effectiveness of project portfolio management in the mentioned area.

31. Acknowledgement
I am heartily thankful to my supervisor, Dr Hemanta Doloi, whose
encouragement, guidance and support from the initial to the final level enabled me
to develop an understanding of the research. This research would never be
completed without his assistance.

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