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Improving project portfolio management with strategic alignment

This study describes how to apply a project portfolio management approach to a specific selection of projects by using information obtained from the real-world. More precisely, there are three major goals specified for project portfolio management: Maximizing the value of the portfolio (MVP), balancing a portfolio, and aligning a project portfolio with a business strategy. For the first goal, selecting the MVP projects, the optimization technique is used to determine the optimum portfolio since it portrays a systematic way to find a solution. To balance a portfolio, visual techniques are used to make the right balanced portfolio. Finally, we conclude with the result which came from applying mediation regression analysis to achieve the mediating influence of the alignment. The results establish the context in which to measure the alignment between business strategy and project portfolio on business performance. It also provides a platform to study the alignment between project portfolio and business strategy that could leverage the growing appreciation of this subject.