Management Control of Project Portfolio Uncertainty: A Managerial Role Perspective

Abstract

■ This article presents empirical results on different managers' viewpoints regarding the sources and management of project portfolio uncertainty. As a key result, this study demonstrates the versatility of uncertainties experienced by managers, the limited degree of perceived control over them, the use of an almost complete management control package in managing uncertainties, and the necessity of managers' cooperation in the skilled use of the management control package when managing uncertainties. In addition, a further research agenda is proposed.

Corporate Innovation Culture and Dimensions of Project Portfolio Success: The Moderating Role of National Culture

“…Second, to date two distinct levels of context of a project portfolio have been addressed: On a micro level, the sizes of project portfolios and the interdependencies that exist between single projects (e.g., in terms of resources, time, and personnel) have been acknowledged to influence project portfolio success (Killen & Kjaer, ; Martinsuo & Lehtonen, ; Teller et al, ). On a macro level, the highly dynamic context regarding technologies and markets (Kock, Heising, & Gemünden, ; Sethi & Iqbal, ) has been identified as a challenge in project portfolio management (Korhonen, Laine, & Martinsuo, ). Furthermore, culture has been put forward as one contextual impact factor for project management (Turner et al, ) and project portfolio success (Killen, Hunt, & Kleinschmidt, ; Killen & Kjaer, ).…”

Project Portfolio Management

“…This suggests that emergence itself can be guided or steered, in a process sometimes called 'planned emergence' (Grant, 2003;Levina & Su, 2008). A study of portfolio-level managerial controls reveals how such controls aid in the management of uncertainty and suggests that they can improve organizational ability to meet strategic objectives (Korhonen et al, 2014). We propose that strategic control mechanisms implemented at the portfolio level can play a role in managing emergence.…”

“…Through continuous coordination and control activities, PPM provides mechanisms for response to changing organizational priorities, project plan deviations, and/or risks and opportunities (Korhonen, Laine, & Martinsuo, 2014;Müller et al, 2008;Teller & Kock, 2013). In doing so, this phase addresses challenges that stem from a dynamic external and internal environment and enables an organization to adapt to changing conditions.…”

“…First, portfolio steering can provide strategic control functions to ensure alignment with strategy and to manage uncertainty (Korhonen et al, 2014). Second, a portfolio perspective of current projects can create and reveal strategic opportunities that emerge within the strategy implementation (Kopmann, Kock, Killen, & Gemünden, 2014).…”

Shedding New Light on Project Portfolio Risk Management

“…This perception has opened a new research area in the literature: the management of this version of uncertainty. Available studies discuss this subject both from a theoretical [45][46][47] and empirical point of view [48]. The second significant aspect of risk management involves the consideration of risk as an event that not only generates hazards, but also reveals opportunities that may be taken by the organisation [5,9,12].…”