Categorizing projects for portfolio selection using clustering techniques

Abstract

This work presents a project categorization process that will help practitioner's and decision makers, in a given organization, to group project portfolio components, falling within common strategic orientations. This is a crucial step before they can initiate candidate projects prioritization and selection process based on common criteria. In this regard, we developed an empirically-based categorization approach through clustering techniques where general but most important project attributes are emphasized. It is initiated by considering the organizational strategy and project characteristics, specific to the organization. The suggested approach is then illustrated through the categorization of more than 50 projects in the case of a company operating in the automotive industry.