Using Alignment with Corporate Strategy for the Selection of a Project Portfolio Based On ANP

Abstract

In this paper a new approach to prioritize project portfolio in an efficient and reliable way is presented. The research methodology is based on a combination of a synthesis of the literature across the diverse fields of project management, project alignment, multicriteria decision methods and a parallel analysis of an industrial case study. The paper introduces a rigorous methodology with acceptable complexity which seeks to assist managers of the National Electricity Corporation of Venezuela (Corpoelec) in their yearly resources´ assignment on their projects portfolio. The aim being to determine the degree of alignment of each project to corporate strategy based on the judgments of a group of experts on the expected contribution of the projects to the business strategic objectives. The model presented can be used both as a descriptive and a prescriptive model. The approach presented uses project prioritization based on the multi-criteria decisionmaking technique called Analytic Network Process. Thus the corporate strategic objectives will be used as prioritization criteria to obtain the Relative Alignment Index (RAI).