Modeling for project portfolio synergy benefits measurement

ABSTRACT

Generated by internal synergy relationships in project portfolio (PP), project portfolio synergy benefits (PPSBs) are essential for enterprises to achieve their strategic objectives. However, few studies have been conducted on measuring PPSBs, which hinders managers from making rational use of PP synergy relationships to realize and improve PPSBs. This research deals with this issue by constructing a PPSB measurement model. First, the PPSB measurement model elements, including PP synergy, PPSB measurement criteria, and PPSB influencing factors, are identified. At this stage, to integrate PP synergy into the measurement model, a new method that emphasizes project similarity based on the project niche is proposed to quantify it. Then, a system dynamics model is developed by quantifying the causal relationships within these elements to measure PPSBs. Finally, the proposed model is demonstrated and validated with a numerical example. Results show that this model can help managers to measure and optimize PPSBs. To our knowledge, this proposed model is the first to realize the measurement of PPSBs, enriching the literature on project portfolio management and providing managers with a tool for enhancing the PPSBs following the organization strategy.

KEYWORDS:

• Project portfolio synergy benefits
• synergy relationships
• benefits measurement
• system dynamics

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

The work was supported by the National Natural Science Foundation of China [72002018; 72171025]; Innovation Capacity Support Plan of Shaanxi Province [2020KJXX-054]; Soft Science Project of Shaanxi Province, China [2022KRM012]; Fundamental Research Funds for the Central Universities, China [300102232601;300102231639]; Social Science Foundation Project of Shaanxi Province, China [2022R027]; Soft Science Project of Xi’an City, China [22RKYJ0055]; Youth Innovation Team of Shaanxi Universities, China [21JP009].

Notes on contributors

Libiao Bai

Libiao Bai received the Ph.D. degree in management science and engineering from Northwestern Polytechnical University, Xi’an, China, in 2015. He is currently a Professor with Chang’an University, supervisor of doctoral students, and responsible professor of management science and engineering discipline. He has authored or coauthored articles published in Annals of Operations Research, Computers & Industrial Engineering, and Journal of the Operational Research Society. He is mainly engaged in theoretical research and practice in project portfolio management, project control and optimization.

Jiachen Lin

Jiachen Lin is currently working toward the M.S. degree in management science and engineering from Chang’an University, Xi’an, China. Her research interests include project portfolio synergy and project portfolio benefits.

Luyao Zhang

Luyao Zhang received the M.S. degree in management science and engineering from Chang’an University, Xi’an, China, in 2023. She has authored articles published in China Journal of Highway and Transport. Her research interests include project portfolio value and project portfolio risk.

Tong Pan

Tong Pan received the M.S. degree in management science and engineering from Chang’an University, Xi’an, China, in 2023. She has authored articles published in Ain Shams Engineering Journal. Her research interests include project portfolio synergy and project portfolio selection.

Yongjian Ke

Yongjian Ke is an associate professor in the University of Technology Sydney, Australia. He has authored or coauthored articles published in International Journal of Sustainable Transportation, Production Planning & Control, and International Journal of Construction Management. His research interests include risk allocation, contracting behaviours, social acceptance, and social sustainability, among others in the delivery of infrastructure projects.

Xinyu Zhou

Xinyu Zhou received the M.S. degree in management science and engineering from Chang’an University, Xi’an, China, in 2023. She has authored or coauthored articles published in Urban Climate, Technological Forecasting and Social Change, and Computers & Industrial Engineering. Her research interests include project benefits and low carbon management.