MGT8078: Portfolio Program and Benefits Management Analysis Report

This report delves into portfolio program and benefits management within the context of a construction project, specifically the Perth Stadium Station undertaken by Laing O'Rourke. It begins with an executive summary, outlining the challenges faced, including resource management, project portfolio integration, and scheduling. The report provides an organizational context, detailing Laing O'Rourke's background and the specifics of the Perth Stadium Station project. A comprehensive literature review follows, examining the use of project portfolios to deliver strategy and the relationships between portfolios, programs, and projects, drawing on peer-reviewed journals to support the analysis. The report then offers recommendations to address project challenges, such as the need for portfolio analysis and value, justifying each recommendation with supporting literature. The conclusion summarizes the key findings and highlights the benefits of implementing the proposed recommendations. This report aims to provide valuable insights into the application of portfolio program management in a contemporary business environment. The report covers key areas such as project selection, risk management, and resource allocation.

Running head: PORTFOLIO PROGRAM AND BENEFITS MANAGEMENT
Portfolio program and benefits management
Name of the Student
Name of the University
Author Note

1PORTFOLIO PROGRAM AND BENEFITS MANAGEMENT
Executive Summary
There are diverse categories of challenges related with any of the construction project such as
maintaining the availability of the resources involved, incorporation of project portfolio,
maintaining schedule of each phase of the project. The role of the supervisors of the
construction projects is very much significant to deal with its challenges. This report shall be
focusing on the challenges which were faced while developing the Perth Stadium Station by
Laing O'Rourke which is one of the most popular construction agencies in Australia.
Organizational and project contexts shall be discussed in this report along with the current
status of the project. The discussion of project portfolio, relationship between portfolio,
program and projects shall be presented from the perspective of reputed scholars who have
presented their opinion in the peer reviewed articles. Justification shall be provide for the
choice of each literature in this report in order to validate the literature analysis. The ways to
address the challenge faced in this project shall be provided in the recommendation segment
of this report. Justification for each of recommendation shall also be an integral part of this
report, along with that the expected benefits from adopting the recommendations shall also be
stated in this report. This report shall also summarise the findings of the literature analysis
which will be conducted from the peer reviewed journals. Thus, this report will be very much
beneficial for the readers as it will help to identify the contribution of portfolio programs in a
contemporary business environment.

2PORTFOLIO PROGRAM AND BENEFITS MANAGEMENT
Table of Contents
1. Introduction............................................................................................................................3
2. Organizational context...........................................................................................................3
3. Literature Review...................................................................................................................4
3.1 The use of project portfolios to deliver strategy..............................................................4
3.2 Relationships between portfolio, programs and projects.................................................8
4. Recommendations................................................................................................................11
4.1 Supporting the recommendation....................................................................................11
5. Conclusion............................................................................................................................13
6. References............................................................................................................................15

3PORTFOLIO PROGRAM AND BENEFITS MANAGEMENT
1. Introduction
There are diverse categories of Project Management Office (PMO) which are
deployed in the construction projects such as the supportive PMO, controlling PMO and
directive PMO (Brunswick & Zinser 2019). Organizational strategies can be selected in the
first place with the help of PMO (Pajares, Lopez-Paredes & Hernandez 2016). The project
selection process, risk management process, and accuracy of performance data is maintained
in the first place with the help of portfolio programs.
This main purpose of this report is to focus on the use of PMO to manage the
portfolio programs and the complications of the construction projects from the perspective of
a project team member. Literature analysis shall be considered in this report to identify the
impact of using PMO in the construction projects. All the discussions of this report shall be
critically analysed and justification shall be provided for each of the recommendations which
will be there in the concluding section of this report. The recommendations shall be
supported with the help of literature analysis as well.
2. Organizational context
Laing O'Rourke is one of the most reputed construction organization in Australia
which was found in the year 1978 in Dartford, United Kingdom. More than 13000 people
works in this construction organization. This construction organization has two major
geographic hubs Europe and Australia (Projects 2020). The services offered by this
construction agency are construction services, transportation services, water and utilities,
mining services, natural resources, oil and gas industry. This report shall be focussing on the
construction of Perth Stadium Station by Laing O'Rourke which was completed in the year
2016.

4PORTFOLIO PROGRAM AND BENEFITS MANAGEMENT
The client of this project is WA Public Transport Authority (PTA) of Australia, this
project falls under the category of buildings and transport. The services provided from this
organization are engineering projects, infrastructure assignments and building construction
projects (Raad, Shirazi & Ghodsypour 2020). The value of this project was $139M and the
duration of the project is between 2015 to 2017 and the project partner was AECOM. This
project was successfully completed in the year 2017 due to the following of the strict
schedule.
Challenges faced in this construction projects: Currently the project is completed
and diverse categories of construction technologies was deployed to maintain the quality of
outcome of this project. Maintaining the completion date of the construction project was
the prime challenge related with this construction project. Maintaining the program and
portfolio in a project was the other challenge related with this project. The project was
completed on time however additional financial resources were required from the investors to
complete the project.
3. Literature Review
3.1 The use of project portfolios to deliver strategy
According to Klavans and Boyack (2017), project selection process can be improved
in the first place with the help of the project portfolio. The researchers of this paper
highlighted that the business goals of the construction projects, efficient use of the resources
and the significance of collaboration can be affected with the help of project portfolios. The
accuracy of the project performance data can also be affected with the help of the project
portfolio. The project deliveries of the construction projects can also be improved in the first
place with the help of project portfolios (Panel et al. 2018). The organizational risks can also
be managed in the first place using the project portfolio. The following diagram was

5PORTFOLIO PROGRAM AND BENEFITS MANAGEMENT
suggested by the researcher of this paper to understand the significance of project portfolio to
deliver strategy.
Figure 1: Advantages of project portfolio
(Source: Klavans and Boyack 2017)
Justification: The date of publication of this journal is 2017 and all the information of
this journal is critically analyzed as a result the reliability of the data is very much on the
higher side.
According to Mathur et al. (2019), project selection process, focusing on the
objectives of a project, efficient use of the resources, accuracy in project performance data,
decreased project risk are the prime advantages related with the deployment of project
portfolios in complex projects. The other benefits of using the project portfolio can be
understood from the following pictorial illustration.

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Figure 2: Advantages of project portfolio
(Source: Mathur et al. 2019)
Justification: This journal was published recently as a result all the data of this
journal is very much reliable. The scholars of this journal highlighted most of the advantages
of deploying portfolio using pictorial illustration which is illustrated above.
On the other hand, as described by Lopez (2016), portfolio has both limitations as
well as advantages which has to be considered by the project managers of a construction. The
journal helped in understanding that advantages such as risk prioritization, categorizations,
stakeholder advantage, financial management, resource management is very much helpful for
the successful completion of a project (e Silva et al. 2017). However, challenges such as over
diversification of resource which occurs due to the use of project portfolio can have a
significant impact on a project as well. The following diagram critically evaluates project
portfolio.

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Figure 3: Critical Evaluation of project portfolio
(Source: Lopez 2016)
Justification: This journal supports the arguments of the discussion of this report and
is very much relevant to purpose of this report. The discussion of this journal is aligned in
such a manner so that it can be very much useful to evaluate the use of a concept like project
portfolio in a complex project.
However, as discussed by Dawson et al. (2018), there are few limitations related with
the use of project portfolio as well such as the ineffective selection of resources, prioritizing
the activities of a project, and management of the wider scope of a project. The following
diagram will be very much significant to understand the impact of project portfolio in a
systemized modus.

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Figure 4: Limitation of portfolio analysis
(Source: Dawson et al. 2018)
Justification: The research conducted in this journal is very much useful to
understand the discussions. All the concepts and the arguments of this journal is critically
analyzed hence it is considered in this section of the paper.
3.2 Relationships between portfolio, programs and projects
According to Bathallath, Smedberg and Kjellin (2016a), project is very much
significant for the creation of new and innovative product of services, whereas a program is
defined as a group of project which are related with each other. The researchers of this paper
was very much useful as it provided a detailed description of the management and co-
ordination required to manage programs and projects (Panel et al. 2018). The researchers also
helped in understanding that portfolio is defined as the group of projects or programs which
are related with each other. The researchers stated that programs can be written within a
portfolio, strategic plan of an organization can be maintained by both portfolio as well as
programs.
Justification: The prime reason behind the selection of this journal is that this journal
is peer reviewed. Hence, the reliability of this journal is very much on the higher side.

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On the other hand, as suggested by Bathallath, Smedberg and Kjellin (2016b),
strategic goals of a project can only be determined with the help of the project portfolio. The
researcher also suggested that a project can exist without a program, however a program
cannot exist without a project. The researcher of this journal has successfully identified the
relationship among each of these concepts which is illustrated in the following pictorial
illustration.
Figure 5: Relation between the concepts
Justification: The main reason behind the selection of this journal is its legitimacy.
This journal considered different data collection method which increased the reliability of the
data.
As discussed by Rydberg (2018), portfolio management, program management and
project management are very closely related with each other. The following tabular
illustration can be very much useful to understand the relationship among them.

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Figure 6: Relationship among the three topics
(Source: Rydberg 2018)
Justification: The relationship among the three concepts is explained in a systemized
modus in this peer reviewed journal. This journal is also recently published which helps in
identifying that all the discussions of this paper is very much valid and can be helpful to
identify the relationship among them.

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4. Recommendations
The changes required in this project which could have solved the challenges such as
maintaining the time completion of each phase of the project and maintaining portfolio will
be recommended in this section of the report. Justification shall be provided for each of the
recommendations in this report. Literature analysis shall be conducted to support the
recommendations which will be made in this unit of the report.
The prime issue of this project was the need for additional information in order to
meet the deadline. The following list of recommendations could have been very much useful
in this project to deal with this issue in a systemized modus.
 Portfolio analysis is very much recommended in this kind of complex projects as it
have numerous challenges associated with it such as maintaining the quality of the
final outcome. The diverse perspectives of a project can also be identified using
portfolio analysis, this analysis can also be very much useful to maintain the cash
flow of a project as well.
 Justification: Portfolio analysis is very much significant to deal with most of the
constraints in a complex project like time management and quality management.
 Portfolio value is also very much recommended in this kinds of complex projects to
deal with the money market equivalents, cash equivalents and cash required in each
phase of the project.
 Justification: The risks of a project can be effectively addressed with the help of
portfolio value.
4.1 Supporting the recommendation
According to Guigues (2018), challenges of a construction project such as
maintaining the quality of the final outcome of the project and maintaining the schedule in