Aligning Project Portfolios with Strategic Objectives: A Conceptual Framework for Achieving Success in Project-Oriented Organizations

Abstract

The alignment of project portfolios with strategic objectives is crucial for the success of project-oriented organizations. However, achieving this alignment is a complex task that requires a systematic approach. This article presents a conceptual framework for project portfolio alignment with strategic objectives in project-oriented organizations. The framework consists of four main components: strategic objectives, project portfolio selection, project portfolio management, and performance evaluation. The strategic objectives component defines the organization's overall goals and objectives, which guide the selection and management of projects. The project portfolio selection component involves identifying and prioritizing projects that align with the strategic objectives. The project portfolio management component includes the processes and tools used to manage the selected projects. Finally, the performance evaluation component measures the effectiveness of the project portfolio management in achieving the strategic objectives. The framework emphasizes the importance of continuous alignment between the project portfolio and the strategic objectives. This requires regular monitoring and evaluation of the portfolio's performance against the strategic objectives. The framework also recognizes the need for flexibility in project portfolio management to adapt to changing strategic objectives and market conditions. The framework is based on a review of existing literature on project portfolio management and strategic alignment. It provides a comprehensive approach to project portfolio alignment that can be adapted to different organizational contexts. The framework can also serve as a basis for future research on project portfolio alignment and its impact on organizational performance. Overall, this article contributes to the understanding of project portfolio management in project-oriented organizations by providing a conceptual framework for aligning project portfolios with strategic objectives. The framework can help organizations improve their project portfolio management practices and enhance their overall performance.