The basics of the project portfolio management generalized body of knowledge

Abstract

Several experts’ surveys show that the success indicators of a new product in the market have a strong positive correlation with the performance of project portfolio management in organizations, and the success of the project is strongly related to the maturity of portfolio management. At the same time, it is noted that the existing portfolio management methodologies do not sufficiently consider the interaction of a potential project with an existing portfolio in terms of cash flow, schedule, or risk. To effectively manage a project portfolio, an organization can take the path of forming its management approach. To meet this challenge, it requires complete and well-structured information on existing standards and guidelines for project portfolio management. The proposals described in the literature and the views of experts on the components of an effective approach should also be considered. To select or develop an approach to portfolio management, it is proposed in this work to create a project portfolio management generalized body of knowledge. The structure and mathematical model of such the body of knowledge have been developed. Information on five common standards and portfolio management guides are added to the body of knowledge. A method is proposed for choosing an approach for managing a projects portfolio based on optimizing risks and management cost.