Ercan Emin Cihan, Cigdem Alabas Uslu and Özgür Kabak
This study aims to develop a new integrated decision-making framework specifically designed to address complexity and uncertainty for project portfolio management. It particularly…
Abstract
Purpose
This study aims to develop a new integrated decision-making framework specifically designed to address complexity and uncertainty for project portfolio management. It particularly focuses on managing portfolios in a post-merger context. The paper portrays a normative and prescriptive approach to effectively creating a well-balanced project portfolio in a post-merger scenario.
Design/methodology/approach
This study introduces hyper-project portfolio frame as a prospective methodology for evaluating post-merger portfolios. The proposed method especially addresses the challenges associated with integration following a merger.
Findings
Hyper-project portfolio frame provides fundamental leaps in post-merger project portfolios. The frame gives opportunities to check consistency with policy, organizational scalability, flexibility and product diversity. It also underpins achieving the strategic objectives of mergers and acquisitions (M&As).
Research limitations/implications
The literature synthesis is approached from an interpretative standpoint. The research incorporates discussions and comparative studies from the relevant literature and introduces a novel approach. Additionally, new descriptive studies can expand the proposed process-oriented decision-making. Moreover, this research does not consider hostile takeovers.
Originality/value
Nested in content and process-oriented fashion, the frame provides suitable prequalification analysis for portfolios in a post-merger under the concepts of complexity, uncertainty, risk and value.
Details
Keywords
Ercan Emin Cihan, Çiğdem Alabaş-Uslu and Özgür Kabak
This paper aims to develop an algorithm to pretest an industrial portfolio on a new scale. Portfolios include complex and uncertain projects at the front-end phase. The study…
Abstract
Purpose
This paper aims to develop an algorithm to pretest an industrial portfolio on a new scale. Portfolios include complex and uncertain projects at the front-end phase. The study, therefore, proposes a procedure that helps decision-makers to handle various complex projects and defines a common scale applicable to various kinds of industrial projects.
Design/methodology/approach
Decision-makers can employ the preference algorithm to reach a common understanding. To this end, the current paper posits the organization of criteria in various project sets. A sexagesimal scale is developed based on project complexity and its ability to achieve broad impact, both these factors being gauged on a five-point scale of user-friendly numberings.
Findings
The proposed algorithm shows the equivalence of industrial projects in different fields. Also, the algorithm articulates the status in terms of uncertainty, complexity, risk, and value of projects. The connections between decision-makers and criteria operate on the basis of the foreseen complexity, risk, and value. It can be said that this study exemplifies and visualizes the portfolio and criteria relationship.
Research limitations/implications
The procedure covers contingency exercises at the front-end phase of a portfolio and supports decisions. However, updated information can change support positions.
Originality/value
The paper presents original scoring guidance for portfolio complexity on a new scale. The scaling and scoring are adjustable and calibrated using the proposed sexagesimal system. It presents an original classification of project risk and value. The main contribution is the presented algorithm which can be used to pretest industrial portfolios composed of projects that vary in both size and context.