Portfolio Management of Infrastructure Projects

Abstract

Project portfolio management (PPM) in guiding infrastructure development is often overlooked though it has crucial importance. PPM has been categorized into two phases. The first phase is about selecting the right projects in a portfolio while the second phase is about managing the selected projects to maintain strategic alignment with the organizational goals. The paper investigates the existing PPM practices in the Norwegian infrastructure sector to provide possible improvements for successful infrastructure project delivery. A literature review and structured interviews with selected experts in the infrastructural sector were carried out. The findings reveal that literature often focuses on criteria for portfolio selection, leaving the second phase of PPM with managing the selected projects unexamined. This happens despite all the interview respondents saying that portfolio management is important for maintaining strategic alignment with the organizational objectives. The interviews revealed that there is no standardized framework or guidelines yet for managing projects in portfolios for infrastructures. Significantly, the study found that there is a big contrast in the way the private and public organizations manage PPM. This study concludes that there is a need for further research to bridge gaps, enhance the practical applicability of the project portfolio management principles, and possibly establish a standardized framework fitted to the Norwegian Infrastructure projects.