Comprehensive Report on Portfolio Management for Construction

This report provides a detailed analysis of portfolio management within the context of Multiplex Construction Australia. It explores the significance of portfolio management in large organizations, emphasizing the strategic approach needed to manage numerous projects effectively. The report delves into Multiplex's organizational structure, investments, and optimization strategies, highlighting its ability to adapt to changes and deliver promised benefits. It examines the methods used for portfolio evaluation, including the aligning process group, and justifies their application. Challenges in a global environment, the importance of the benefits management lifecycle, and methods to align projects with strategic objectives are discussed. Furthermore, the report covers the role of a project management office, quantitative and qualitative tools used, maturity levels, and best practices to improve the maturity level using the PRINCE2 model. It also addresses change implementation and corporate culture aspects that support project portfolio management and its sustainability criteria. The report concludes with an overview of the challenges faced and provides a comprehensive understanding of portfolio management in the construction industry.

RUNNING HEAD: PORTFOLIO MANAGEMENT
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PORTFOLIO MANAGEMENT
Student Name
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Contents
Introduction......................................................................................................................................4
Situational Context..........................................................................................................................4
Organization investment..............................................................................................................4
Organization optimization............................................................................................................5
Organization execution................................................................................................................5
Ability to absorb changes.............................................................................................................6
Organization execution on promised benefits..............................................................................6
Portfolio evaluation.........................................................................................................................6
Methods used to evaluate project portfolio..................................................................................6
Justification of practicing chosen method....................................................................................8
Challenges in operating in global environment by using chosen method....................................8
Significance of management lifecycle in the evaluation process................................................8
Portfolio Management.....................................................................................................................9
Methods to ensure that collective projects of organization are aligning with strategic objective
......................................................................................................................................................9
Significance of project management office in the organization..................................................9
Quantitative and qualitative tools used in organization to manage project portfolio................10
Maturity levels...............................................................................................................................10
Maturity level for Multiplex Construction Australia.................................................................10

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Key best practices to improve the maturity level and right model for it...................................11
How to implement changes and assistance required from Multiplex Construction Australia...11
Corporate culture...........................................................................................................................12
Corporate culture of Multiplex Construction Australia.............................................................12
Change management initiative taken by Multiplex Construction Australia..............................12
Aspects of corporate culture that will support project portfolio management and its
sustainability criteria..................................................................................................................12
Challenge in getting project portfolio management and its sustainability criteria taken up by
Multiplex Construction Australia...............................................................................................13
Conclusion.....................................................................................................................................13
Reference.......................................................................................................................................15

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Introduction
The report will discuss in detail about the significance of portfolio management in an
organization and its successful implementation. Large companies do not have the luxury to treat
the project in an isolated manner. Since there are hundreds of projects in operations at point of
time, a more strategic kind of approach in the management of portfolio is important in order to
sideline any kind of duplicate efforts with number of complex and conflicting issues and
challenges in allocating the resources (Kaiser et al, 2015). The report will discuss in detail about
the Multiplex Construction Australia. This company is considered as one of the leading and
global construction company and headquarter of the company is in Sydney, Australia. The
company is an international company and the operations are expanded in places like India,
Australia, Europe, Canada and The Middle East.
Situational Context
Organization investment
As per the analysis, the Multiplex Construction company has been able to propose the
acquisition of Multiplex which valued the company at $7.3 billion. The offer that has been given
by Brookfield to the shareholders is $5.05 per security. Here, there are other remaining 10% of
the Multiplex securities and the delisted company formats from the ASX. The company focus on
building the skills and the capability of the people which focus on the innovation and
collaboration. The investments are settled with the property subject where the current processes
are based on resolving all the outstanding commercial issues.

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Organization optimization
The organization optimization is based on having the workforce where the reflection is based on
the diversity of the communities which it operates and are set in the local and the globalized area.
The labor force employees, with the customers, clients and the partners is generally depending
upon the coverage of demographics like the age, caring and the responsibilities. The ethnicity,
and the race with the individual diversity is set to include the employees who are valued to
handle and work towards the potential plan. The optimization is also through evaluating the
issues and setting the excessive conflicts with any unclear roles, shadow groups and the poor
work flow with reduced responsiveness. The overdependence on the extra organizational groups
and the teams leads to the basic elements of how the enterprise is built up.
Organization execution
The performance by Multiplex Construction Australia is primarily focus on being a project based
companies. In other words, it is called as project oriented organization and it actually depends
highly not just on the implementation successfully of one or two projects. But it also depends on
the fact that how the complete project is managed in an effective manner (Walker, 2015). There
are multiple projects that perceive portfolio project management as the competitive advantage
and settle a formal kind of system that make sure that with the time in hand and limited resource,
the company is able to select that the best project to achieve success. The company also needs to
follow multiple processes to be a function for selecting and evaluating the projects. The selection
of decision and the evaluation of the project are made by considering the overall goal and
strategies adopted by the business.

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Ability to absorb changes
The company is focusing on the challenging opportunities with the learning and growth plans.
With this, there is a proper encouragement of the ideas and the learning that leads to a better
support and the combination of the coaching and mentoring. The frameworks are related to the
International university and the talent management plans, where the culture is considered to be
one of the outperformance, innovation and the collaboration. The culture and the treaty of the
employees is set with the accountability where there is a built of the entrepreneurial spirit that is
driven to deliver the best quality product.
Organization execution on promised benefits
With the Multiplex Engineering Innovation, there are forms which include the increasing value
for the clients and then benefitting the communities. This applies with the edge of innovation and
analyzing how the reduced materials need to handle the safer fabrication, assembling and
construction.
Portfolio evaluation
Methods used to evaluate project portfolio
Following is the detailed discussion of the aligning process group used by the company to
evaluate project portfolio: -
 Identification: the main aim in this step is to develop updated list with ample
amount of information and new elements that can be properly managed with the
help of portfolio management.

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 Categorization: the main aim of this step to properly group all the recognized
elements into important business group and a common set of filters and
categorization can be application for testing, selecting as well as prioritizing the
process along with perfect balance of all elements (Purnus & Bodea, 2015).
 Evaluation: this step is vital for collecting all kind of information in order to test
the elements used in project with a motive of properly comparing them to help in
the selection process.
 Selection: the step is crucial to develop a short list of elements which is
completely relies on the evaluation or testing process with recommendations
along with organizations resource abilities. The evaluation process also decides
the overall value of every element and the resources used by the company decided
the number of elements that any company can eventually authorize.
 Prioritization: the motive of this process is properly ranking the elements within
every strategic category along with right investment timeline, focus of the
company and comparison of risk with return profile.
 Portfolio balancing: the main aim of this step is to inculcate the element mix of
the portfolio with high amount of potential and also properly support the strategic
initiatives taken by company and accomplish strategic goals (Kerzner, 2013).
 Authorization: the main aim of this step to properly communicate the decision of
portfolio balancing to the team and also allocate the human resources needs and
financial needs selected elements in the project.

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Justification of practicing chosen method
The Aligning process group taken up the company here is considered one of the most active
especially at the time when the company refreshes the strategic goals and further lays out the
budget along with plan for the company. In traditional sense, this is done at yearly budgeting
time and the company like Multiplex Construction Australia refreshes this cycle more than usual.
This is primarily because of the constant changes in the business climate (Turner, 2016).
Challenges in operating in global environment
Concept is one of the vital issues which are being faced by the project manager while executing
this process specifically during Initiation phase. This is done to test different kind of new
concepts on how project will be executed in long run. A concept can be defined as an effective as
well as orderly approach that suggests, evaluate and judge the advantages of the new ideas for
project. Right before it, important resources are committed to formal project.
Benefits management lifecycle in the evaluation process
The benefits management involves the proper planning, measuring and the tracking of the
benefits which is important for reaching a specific end. This is incorporated in Multiplex for
properly delivering the unique requirements which enable the long term and the cost-effective
outcomes.

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Portfolio Management
Methods to strategic objective
The strategy for the future proofing with the evaluation of the risks activities, like the
waterproofing, corrosion, stone and the masonry handling is important. The plan is to handle the
constructions with the technical capability to work on the complex building of the projects.
Along with this, there is a check on working over the material selection, best practices and
minimum standard.
Significance of project management office in the organization
The standards defined by the company are the basis for describing normally and widely accepted
processes which is related with portfolio management. It is important to understand here that
portfolio management is a continuous process and the target is having a clear strategic focus

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which later helps a company to make sure that the decisions are well aligned with the strategy.
when the elements of the portfolio are not properly aligned with the business strategy, a company
like Multiplex Construction Australia can anytime question the reasons behind the work being
undertaken. The portfolio management is discussed with the help of three-phase constant
lifecycle (Clough et al, 2015). The company should also define the period which depend on the
size as well as complexities of the current business. Any kind of transformation in the strategy
may further trigger a review of the whole portfolio.
Quantitative and qualitative tools used in organization to manage project portfolio
The company is involved in two-tier process in order to collect information. There are two
processes, first is literature survey which was used to inform the development of a semi
structured guide for interview. This is actually a process to locate, read, obtain and evaluate the
researched literature. Another method is interview which is based on purposeful discussion that
exists between two or more individual (Hardin & McCool, 2015). The usage of qualitative
research based interviews helps in getting a detailed set of information.
Maturity levels
Maturity level for Multiplex Construction Australia
There are different types of maturity process levels that are present in every kind of business. It
is important to understand that it is a part of the evolution of natural business. Every organization
and department is able to evolve along specific level of maturity and it can organic or intentional
by nature. The Multiplex Construction Australia is in business for almost fifty five years. The
company is at fifth maturity level which is last stage or level in maturity called as Value (Bodie

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et al, 2014). It is based on numerous connected processes which can be shared as well as well
measured by the company.
Key best practices to improve the maturity level and right model for it
The model taken up by the company to improve the maturity level can be PRINCE 2 which is
actually a process for impactful project management. The concept is in fact can be considered as
de facto standard primarily used by the government of UK and hence the model is widely
recognized as well as adopted by companies like Multiplex Construction Australia on global
platform. There are some usual set of questions which needs to be answered while initiating any
project and the answer are usually associated with the building blocks of the management of
project (Nicholas & Steyn, 2017). Structured form of project management is also based on the
project which is based on defining different steps to make the whole process more organized.
How to implement changes and assistance required from Multiplex Construction Australia
As discussed PRINCE 2 model is more of a process based approach for managing different
projects. It further helps to function and also involved in project along with different roles and
accountabilities. This model has a set of different process in order to work and further explain
about the required information. Companies like Multiplex Construction Australia use PRINCE2
as a methodology that initiate with accredited amount of training. Training is important as the
system used is complex by nature with different processes as well as angles and the training will
also help in providing important knowledge to everyone associated with project (Winch, 2014).
The model is adaptable by nature and can further be applied in all kind of projects despite their
size.

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Corporate culture
Corporate culture of Multiplex Construction Australia
The business was built on the foundation of ability and best skills set of the people of the
company. The company has recruited an experience team of employees who deal with issues as
well as opportunities with same zeal. The culture of the company has been based on innovation,
association or collaboration and outperformance. The company also takes a lot of pride in the
culture where employees are treated like families with right kind of values are inculcated in
them. The company is also committed to building a workforce that shows diversity of so many
societies in which the company can work at local and international level (Guerard et al, 2015). It
also focuses on the people it employs, and the consumer or partners it operates with. The main
focus is on diversity which is broad by nature since it covers so many criteria like age, disability,
demographic, accountability, race and ethnicity and many more.
Change management initiative taken by Multiplex Construction Australia
Aspects of corporate culture that will support project portfolio management and its
sustainability criteria
The company believes in providing challenging options for people to learn as well as grow and
this is done through training as well as on the job work. The company constantly takes efforts in
thinking out of box approach for each project and it also encourages sharing of ideas and
effective learning all across the business (Guerard et al, 2015). The learning and development