A performance measurement framework in portfolio management

Rogério Tadeu de Oliveira Lacerda (Federal University of Santa Catarina, Florianópolis, Brazil)
Leonardo Ensslin (Federal University of Santa Catarina, Florianópolis, Brazil)
Sandra Rolim Ensslin (Federal University of Santa Catarina, Florianópolis, Brazil)

Management Decision

ISSN: 0025-1747

Publication date: 3 May 2011

Abstract

Purpose

The main aim of this paper is to present a framework to create a better understanding of the context and aid the portfolio management process. The paper seeks to present a case to illustrate the proposed methodology, identifying and measuring the success parameters for a project in a portfolio.

Design/methodology/approach

The research method is a qualitative and quantitative mixture and it is presented as a study case. The primary data were obtained using semi‐structured interviews with decision makers. Bibliographic research is used in order to construct the theoretical framework and the intervention instrument adopted is the multicriteria decision aiding methodology – constructivist (MCDA‐C).

Findings

The methodology allows the criteria that must be taken into account, according to the decision makers' values and preferences in the project selection and sorting processes, to be visualized. The framework supports the ordinal and cardinal measurement of the project performance, making it possible to compare and rank proposals, as well as providing a process to improve project proposals.

Practical implications

This process has helped in negotiations between stakeholders in a portfolio context and, consequently, has helped the chief project officer (CPO) to select and prioritize strategic projects within the demand for new products.

Originality/value

This paper offers an empirical understanding of the application of performance measurement to portfolio management context and identifies complementary tools in this interdisciplinary area.

Keywords

Citation

Tadeu de Oliveira Lacerda, R., Ensslin, L. and Rolim Ensslin, S. (2011), "A performance measurement framework in portfolio management", Management Decision, Vol. 49 No. 4, pp. 648-668. https://doi.org/10.1108/00251741111126530

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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