THE IMPORTANCE OF PROJECT PORTFOLIO EVALUATION ASPECTS IN BUSINESS ORGANISATIONS
Keywords:
Project Portfolio, Project Portfolio Evaluation, Project Sustainability, Project Selection Methods, Project Portfolio BalanceAbstract
The aspects of this article is to review and to establish the balance and coordination between different
projects with equal aspects of coordination. After analysing the obtained emperical study results, the aim is then to
improve the efficiency of work in the business organisation (using the method of PPM). The target of this article,
using examples of case studies, is to prove that the evaluation of the aspects of the portfolio plays an important role
in the application of project portfolio management as a method in business organisations. A questionnaire with 18
questions has been created to assess different aspects of the project portfolio in two business organisations. We
received 33 responses from employees in both organisations. The purpose of this article is to review and to balance
and coordinate different projects with the same goals. All projects are competing between each other, and they have
to be distinguished by giving priority to one project that may need it while delaying another. However, only larger
organisations implement their strategic plans through a project portfolio, no matter that it is best suited for planning
the strategies and activities of an organisation. Project portfolio management reduces risk and increases returns in an
organisation. This article discusses the topic of evaluating aspects of the project portfolio - project selection,
processes, advantages and disadvantages of the PPM method as a successful ‘frame’ in the business organisations.
As each organisation needs a different portfolio management model, the evaluation of project portfolio aspects and
evaluation methods are based on the following indicators: To achieve a return on investment and increase company
capital; The strategy and the ultimate goal of the projects to coincide; Projects to be in line with the requirements of
the organisation; To clarify the methods for implementation of the projects; The selected projects in the portfolio
have to be sustainable and their repetition to lead to their development and improvement and last but not least - To
achieve a balance of projects in the portfolio of the organisation (as a result of detailed selection). The evaluation of
the project portfolio aspects gives a clear idea of how properly to select projects, which projects to continue and
which one to drop out. The results of this article prove that the evaluation of project portfolio aspects plays an
important role in the successful implementation of projects in business organisations. In order to apply the methods,
they have first to be evaluated. The ‘qualitative method’ has been applied, to emphasise the importance of the study
and the ‘quantitative method’ has also been applied (to provide a summary of statistics from the empirical study).
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