This thesis investigates the relationship between subjectively measured project-portfolio success and objectively measured business success. In doing so the investigational background is initially explained, namely the determination of examined companies and the general construct of multi-project management. In approaching the issue the two kinds of success measurement utilized (subjective and objective) are discussed. Furthermore, the two main fields within this thesis are described: first, key success factors for project-portfolio success and second, the complex construct of business success. Due to the many facets of business success, this thesis also follows up with the different perspectives on business success and its measurement dimensions. In doing so, particular key figures will be discussed in more detail. While examining the issue, subjectively measured data that represent key figures for portfolio success were collected within the 5th benchmarking study at the Technical University of Berlin. Objective business success data were extracted from the companies’ annual reports between 2008 and 2010.
Although the multiple regression analysis delivers several statistically significant results, these were not sufficient to lead to a unambiguous conclusion concerning the examined relationship. Consequently, there must be additional factors that influence overall business success and the goodness of fit of the regression models used. However, following further studies and the statistically significant findings within this thesis, there is a trend which confirms the hypothesized relationship. Possible implications for companies complete this thesis.
Table of Contents
1 Introduction
1.1 Study subject and objectives
1.2 Structure
2 Theoretical Basis
2.1 Definition of examined companies
2.2 Multi-project Management
2.3 Success and Performance
2.3.1 Success measurement
2.3.1.1 Subjective
2.3.1.2 Objective
2.3.1.3 Summary
2.3.2 Project-portfolio success
2.3.3 Business success
2.3.3.1 Definition
2.3.3.2 Complexity
2.3.3.3 Perspectives
2.3.3.4 Measurement
3 Study design
3.1 Method
3.2 Identification of essential key figures
4 Data Analysis
4.1 Results
4.2 Discussion
4.2.1 Limitations of this thesis
4.2.2 Further studies of the examined subject
4.2.3 Recommendations for further research
5 Conclusion
Objectives and Research Themes
This thesis examines the relationship between subjectively measured project-portfolio success and objectively measured business success. By analyzing empirical data from a multi-project management benchmarking study and extracting financial metrics from annual reports, the research aims to determine if there is a statistically significant connection between efficient project-portfolio management and overall corporate performance.
- Measurement of project-portfolio success via subjective indicators.
- Evaluation of multidimensional business success using objective financial key figures.
- Comparative analysis of the relationship between these two success constructs.
- Identification of critical success factors within multi-project environments.
- Discussion of strategic implications for project-oriented organizations.
Excerpt from the Book
2.3.2 Project-portfolio success
As distinguished above between subjective and objective performance measurement, the project-portfolio success, which represents the subjective measures within this thesis, will be further described now. The theoretical analysis will lead to a definition, which also follows the criteria within the used empirical benchmarking study. However, this is only another contribution to a common assessment of project or project-portfolio performance respectively, because there is no agreement on standards, or even an operative framework for measuring project success.
Definition
First, there are different ideas regarding a definition of project-portfolio success in literature. Martinsuo and Lehtonen (2007) argue that aligning projects to portfolio objectives influence the project-portfolio efficiency in a positive manner, whereas Meskendahl (2010) directly uses the term project-portfolio success regarding activities that deliver benefits to a project-portfolio. Assuming that efficiency leads to success, this thesis determines the term project-portfolio success as basis for a clear definition.
Summary of Chapters
1 Introduction: Introduces the growing importance of project-oriented organizations and defines the core research question regarding the link between project-portfolio success and business performance.
2 Theoretical Basis: Establishes the framework for the thesis by defining examined company types, explaining multi-project management, and discussing the measurement of success from both subjective and objective perspectives.
3 Study design: Details the empirical approach, covering data collection through questionnaires and annual reports, and identifies the essential key figures for the subsequent analysis.
4 Data Analysis: Presents the results of the multiple regression analysis, tests the formulated hypotheses, and discusses the implications and limitations of the findings.
5 Conclusion: Summarizes the key insights, acknowledges the complexities found in the data, and provides recommendations for future research in the field of project and business success.
Keywords
Multi-project Management, Project-portfolio Success, Business Success, Performance Measurement, Subjective Measurement, Objective Measurement, Regression Analysis, Sales Growth, ROA, ROE, TSR, Altman's Z-score, Strategic Fit, Portfolio Balance, Benchmarking Study
Frequently Asked Questions
What is the core focus of this thesis?
The thesis investigates the relationship between subjectively measured project-portfolio success and objectively measured business success in companies.
What are the primary themes covered?
The main themes include multi-project management frameworks, methods for measuring performance, and the influence of project success on corporate financial outcomes.
What is the primary research goal?
The goal is to determine if a statistical relationship exists between project-portfolio success factors (like strategic fit and synergy) and business success indicators (like sales growth and profitability).
Which scientific method is applied?
The study utilizes a multiple regression analysis applied to empirical data collected from a benchmarking study and secondary financial data from annual reports.
What topics are discussed in the main section?
The main section covers the theoretical definitions of success measurement, the identification of key success factors, and the practical application of regression models to analyze the proposed relationship.
Which keywords best characterize this work?
Key terms include multi-project management, business success, project-portfolio success, and regression analysis.
Why are both subjective and objective measurements used?
Using both types of measurement allows the study to capture both internal project management quality (subjective) and external corporate financial results (objective), providing a more comprehensive view.
What is the significance of the "between-method" investigation approach?
This approach allows for a direct comparison between internal subjective success metrics and external objective financial performance, which helps mitigate the biases associated with relying on only one data source.
- Quote paper
- Robert Mulsow (Author), 2011, The Relationship between Project-Portfolio Success and multi-dimensional Business Success, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/190248
