A Two-Stage Method for Strategy-Oriented Dynamic Project Portfolio Selection Considering Project Substitution

Considering the dynamic adjustment of the project portfolio is an important measure to ensure the realization of strategic objectives. The existing research only analyzes the role of strategic objectives in new project selection but does not analyze the impact on the existing project adjustments. In this article, we analyze the relationship between the dynamic adjustment of project portfolio and strategic objectives. On this basis, a two-stage method is adopted to solve the dynamic project portfolio selection problem (DPPSP). In the first stage, we identify the strategic objectives and give the initial project portfolio. In the second stage, a strategy-oriented dynamic project portfolio selection model, including project maintaining, updating, substitution, giving up of the existing projects, and the selection of new projects, is proposed. By comparing the proposed model in different scenarios, the influence and advantage of considering project substitution in strategy-oriented DPPSPs are discussed. The case analysis shows that balancing the relationship between new project selection and existing project adjustment is more conducive for enterprises to the realization of strategic objectives, and considering project substitution in the adjustment process of the existing projects is helpful to avoid unnecessary costs.