Development of a project portfolio management model for executing organisational strategies: a normative case study
Various research studies show that organisations struggle to bridge the gap between strategy formulation and its day-by-day implementation (Project Management Institute, 2014a and 2016b; Morris and Jamieson, 2004; Sull, Homkes, and Sull, 2015). These studies also show that organisations are not effectively implementing and applying portfolio management (also referred to as project portfolio management in the literature to distinguish it from financial portfolio management) best practices to achieve strategic results. Understanding the value of portfolio management, implementing and applying best practices are vital to successfully execute business strategies and strategic objectives. This research study is a normative case study to develop a portfolio management model for Eskom, the South African National Electricity Utility, to effectively implement and embed portfolio management best practices and enhance decisionmaking to select, categorise, prioritise, optimise and balance, authorise, plan and manage the right projects and programmes and allocate the limited resources (e.g. funds and manpower) available to maximise business value and deliver strategic results effectively. The research study also expands the theory/body of knowledge on the steps (activities, processes, roles and responsibilities, tools and techniques, etc.) to be followed to successfully implement and embed portfolio management in organisations. The implementation of the recommendations resulting from this research can improve the maturity of portfolio management processes and contribute towards Eskom becoming a high agile organisation by ensuring that projects and programmes align to the strategic objectives and delivers the required strategic results as outlined in Eskom's Corporate Plan. The effective application of portfolio management best practices within Eskom will result in a more reliable security of electricity supply to meet the electricity demand in South Africa. The development of a portfolio management model can also serve as a blueprint for other State Owned Companies and other organisations.
- Engineering