A Three-Dimensional Project Portfolio Management Framework for Construction Companies

Many construction companies struggle with multi-project optimization and change despite adhering to normative project portfolio management instructions and best practices. One explanation is that managers lack extensive multi-project management experience from which to apply related theory to practical outcomes. This paper proposes a three-dimensional segmentation framework to guide companies with no prior project portfolio management experience in establishing a project portfolio management system and applying it to their situation. The framework decomposes an expansive and disorganized multi-projects group into a set of simple activities from three different dimensions (project type, project phase, and the management layer) to facilitate the introduction of project portfolio management theory and principles. Then, a case study illustrates the application and utility of the proposed framework. Although this framework was initially developed for a Chinese electric power construction company, it can also be applied to other construction companies in similar circumstances worldwide.

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