PROJ6005 Report: Sustainability in Project Portfolio Management

This report evaluates project portfolio management, focusing on sustainability within Origin Energy Ltd. It examines the situational context, opportunities, and threats associated with implementing project portfolio management, including its impact on financial performance and sustainability criteria. The report details the development of a plan, incorporating key elements like strategic and capital planning, opportunity and resource management, and portfolio analysis. It discusses tools and techniques such as Oracle Primavera and outlines best practices for effective project portfolio management implementation. The analysis highlights the benefits of the portfolio management process, such as improved project selection and resource allocation, while also addressing potential limitations. The report concludes with a comprehensive assessment of the subject matter.

Running head: SUSTAINABILITY IN PROJECT PORTFOLIO
Sustainability in Project Portfolio and Program Management
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
Introduction:...............................................................................................................................2
Situational Context and Evaluation:...........................................................................................2
Opportunities and Threats:.........................................................................................................4
Development of the Plan:...........................................................................................................7
Tools and Techniques:...............................................................................................................8
Conclusion:................................................................................................................................9
References and Bibliography:..................................................................................................10

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Introduction:
The overall assessment aims in evaluating the portfolio management that has been
adopted by Origin Energy Ltd in their operations. Moreover, the relevant evaluation of the
requirements that is maintained by the project management is disusing the assessment. There
are relevant requirements such as situational context, evaluation, opportunities, threats,
development of plan, tools and techniques, which can help in determining the financial
performance of the organisation. There are certain criteria’s that has been evaluated to
understand the portfolio management measures that has been taken into consideration by the
organisation. Furthermore, adequate plan is developed for improving the performance of the
organisation in the long run.
Situational Context and Evaluation:
The introduction of portfolio management into the operations of the organisation will
be welcomed by the management of Origin Energy Ltd, as the company continuously
maintains adequate level of portfolios for securing their expenses. However, the company
does not have any kind of project portfolio management function, which helps in improving
quality of the project that is adopted by the management. The introduction of portfolio
management would mainly allow the management to detect correct valuation of the relevant
projects and the overall resources that would be required for completing the project and
increasing the overall income of the organisation. Operations of Origin Energy Ltd is relevant
high, which will require additional level of projects and larger size for maintaining the level
of operations and profitability for the organisation (Originenergy.com.au, 2019).
Origin Energy Ltd does not maintain a project portfolio management function within
its operations, which is used for analysing the comprehensive ability of the project. In

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addition, the quality of projects that is required by the company will mainly increase, which
might help in improving the financial performance and revenue generation capability. Thus,
the implementation of the project portfolio management function would eventually help in
improving the level of projects that increase performance of the organisation in the long run.
The incorporation of sustainability criteria into its business decision making process
and its operations would directly allow the organisation to increase its social equity,
economic efficiency and environmental performance. The improvement of sustainability
criteria would eventually help in determining the appropriate level of financial performance
that would improve its productivity level. The above figure provides information about the
sustainability measure that is being implemented by Origin Energy Ltd for appropriately
supporting the programs that implement health, safety, and environmental strategies. The
sustainability measure that has been implemented by the organisation directly includes safety
such as mental health and physical wellbeing. Moreover, the sustainability program adopted
by Origin Energy Ltd has the capability of identifying economically, socially and
environmentally sustainable developments, which could improve their overall functionality
(Originenergy.com.au, 2019).

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The figure indicates about the skill level of the board in sustainability measure, which
helps the organisation to improve their current functionality and performance. The social
equity has been maintained by Origin Energy Ltd, where the organisation is maintaining
Cultural diversity and Indigenous Australians within its work force. Thus, the company
implements that Reconciliation Action Plan, which reflects about the commitment to
Aboriginal and Torres Strait Island peoples by the Origin Energy Ltd (Originenergy.com.au,
2019). The company also focuses on Environmental performance, where gas operations have
relevant impact on their performance. The company has been maintaining LNGs for reducing
the negative impact on environment and increase the level of productivity in the meantime.
Moreover, relevant measures have been taken into consideration by the organisation for
improving the environment sustainability and reduce damage to the atmosphere.
The organisation has been focusing on improving the level of economic conditions
and creating more job opportunities in the current business environment. The company has
been deploying appropriate level of operations, where the company has been sharing the
economic benefits with the community by increasing the level of health and safety measures
in workplace. Thus, it has been detected that Origin Energy Ltd has adequately utilised its
economic growth for generating high level of income from operations (Originenergy.com.au,
2019).
Opportunities and Threats:
There are both opportunities and threat present, while making relevant introduction to
project portfolio management process, which can have direct impact on the performance of
the company operations. There is a likelihood of success that might be conducted from the
introduction to project Portfolio Management process in the operations Origin Energy Ltd.

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There are certain advantages that will be accommodated by the organization after the
implementation of the portfolio management process which are depicted as follows.
Increment in detection of appropriate project:
The implementation of the Portfolio Management process would eventually help the
organization to increase the level of detection of appropriate projects that could generate
higher level of returns from investment. The process directly allows the organization to detect
the relevant expenses and income that will be generated from a particular project, which will
then be compared with another projects to identify most valuable investment option for the
company (Schwalbe, 2015). Project Management process would mainly ease the burden of
the organization and increase the level of efficiency in selecting and completing the overall
projects.
Reduction in expenses:
The implementation of project management process would eventually allow the
organization to reduce his overall expenses by identifying irrelevant segments that could be
improved via cost reduction. The expenses of a project is relatively a major concern for
organizations, as it reduces the level of income that would be generated in the long run which
is adequately managed with the help of Portfolio Management process. The process directly
dissects all the relevant expenses and operations of the project and understands the level
of capital exposure that is required for completing the overall investment option (Turner,
2016).
Smoothing the flow of resources:
One of the major contributions that are conducted by the project management process
is the smoothing of resource flow. The process can eventually help the organization identify
and detect all the relevant resources that are required for a particular project and segregate
them to reduce the level of expenses that is incurred in different operations. The project

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management process aims in optimizing the overall resources that is currently available to an
organization and appropriately segregates them among the active projects. This measure
would eventually help in reducing the level of excessive expenses that was uncontrollable
before due to the lack of management process (Teller, Kock & Gemunden, 2014). Thus, the
adoption of relevant operations would eventually help in generating a level of returns in the
long run.
However, there are certain limitations to the adoption of the portfolio management
process within the organization, which are depicted as follows.
No tangible investment strategies:
The implementation of the project management process would reduce the tangible
investment strategy of an organization. The project management process directly utilizes the
concept of budgeting and other investment options that rely on the overall cash inflows that
would be generated over the period of time. However, the management process does not
allow the organization to segregate between the need and requirements of the organization
instead only focuses on the overall capital budgeting conditions to generate higher level of
returns in the long run. The requirements of the business are neglected by the portfolio
management process, which will reduce the tangible investment strategies that can be used by
the organization to support its objectives and overall business concept (Martinsuo & Killen,
2014).
Not breaking down large projects into smaller pieces:
The adoption Project Management process would also reduce the overall capability of
the organization two breakdown structure projects into smaller pieces for completing it and
generating adequate returns in the process. The project management process directly select
the investment option that is most suitable for the organization but does not break down the
project into different smaller pieces as it does not provide adequate information about the

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overall benefits that it could generate over the period of time. The organization utilizing the
project management process would only select the project that is whole and not broken into
smaller pieces of investment. This reduces the capability of the company to complete big
projects, which hampers their capability to generate higher returns.
Not prioritizing projects:
Implementation of the project management process will directly reduce the capability
of the organization to accommodate for the low priority projects. The focus of the process is
to highlight projects that maximum level of Returns and are high priority. The project
management process increases the prioritization of projects, as the company would only
access the projects that would generate higher level of returns and reduced any kind of
Investments that would benefit the whole growth of the organization. This limits the
organization ability to sustain the level of investments inadequate operations to fulfill their
investment objectives in the long run. The project management process only focuses on
projects that provide higher returns and does not select investment options that are most
suitable for company’s objective (Crawford, 2014).
Development of the Plan:
The overall project portfolio management key elements that needs to be introduced
within the organization effectively completing the process is strategic planning, capital
planning, opportunity management, project development, resource management, portfolio
analysis and reporting. These key elements would eventually help the completion of Portfolio
Management and allow the management to detect all the relevant investment options that
could be utilized to increase the returns generation capability of the organization. Thus, the
development plan of the project management process needs to agave the required level of key
elements for ensuring the continuation of the business process.

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The organization needs to have different types of project portfolio management
models for effectively engaging and selecting the adequate projects for the
business. Engagement model and selection model needs to be used by the organization for
effectively completing the overall project. Both the models can adequately allow the
organization to select and engage on a relevant project to effectively improve its efficiency
and return generation capability (Muller, 2017).
There are five best practices for effective project portfolio management
implementation that can be conducted within an organization. These implementations are
depicted as follows.
 Developing adequate inventory process to accommodate the requirement of the
project portfolio management, which is project inventory and resource inventory.
 Establishing of PMO to increase the processes and coronations efforts within the
organization
 Developing project evaluation criteria for increasing the efficiency of the business and
minimizing any kind of risk attributes of the organization.
 Developing risk management strategy to help improve efficiency and reduce risk
mitigation strategies
 Invest in a PPM solution, which will allow the organization to increase its cohesion
and visibility into the Portfolio project management (Sanchez, 2015).
Tools and Techniques:
The overall tools and techniques that can be used in portfolio project management are
Saviom, Celoxis, Hive, Oracle Primavera, Sciforma, Wrike, Changepoint, Clarizen,
Mavenlink, and Liquid Planner. These tools can be used by the organization for effectively
improving the portfolio Project Management process and select adequate investment options.

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The improvements adopted by the organization with the help of project management would
eventually help Origin Private Ltd to increase the level of revenues by adopting the best tools
to support its operations. Using Oracle Primavera is the best possible tool for the
organization, which can help in detecting the adequate level of investment options for the
organization. Thus, relevant techniques can be used for creating an inventory, establishing a
strategy, analyse, ensure alignment, management, Test and adapt. Thus, the discussed tools
and techniques can be used by the organisation for adequately improving the level of income
that can be generated from investment (Kerzner, 2017).
Conclusion:
The overall assessment directly evaluates the portfolio project management that can
allow the organization to improve their project selection and completion process. The
analysis has been conducted on Origin Private Ltd to identify the level of measures that has
been accommodated by the organization to achieve sustainable growth from its operations.
The adequate opportunities and threats that could be achieved by the organization after the
implementation of portfolio project management have been adequately highlighted. This
would eventually help in generating high level of returns from the selection process of
adequate projects that could contribute to the objective of the organization.

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References and Bibliography:
Brook, J. W., & Pagnanelli, F. (2014). Integrating sustainability into innovation project
portfolio management–A strategic perspective. Journal of Engineering and
Technology Management, 34, 46-62.
Costantino, F., Di Gravio, G., & Nonino, F. (2015). Project selection in project portfolio
management: An artificial neural network model based on critical success
factors. International Journal of Project Management, 33(8), 1744-1754.
Crawford, J. K. (2014). Project management maturity model. Auerbach Publications.
Daniel, E. M., Ward, J. M., & Franken, A. (2014). A dynamic capabilities perspective of IS
project portfolio management. The Journal of Strategic Information Systems, 23(2),
95-111.
Heldman, K. (2018). PMP: project management professional exam study guide. John Wiley
& Sons.
Kaiser, M. G., El Arbi, F., & Ahlemann, F. (2015). Successful project portfolio management
beyond project selection techniques: Understanding the role of structural
alignment. International Journal of Project Management, 33(1), 126-139.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Korhonen, T., Laine, T., & Martinsuo, M. (2014). Management control of project portfolio
uncertainty: A managerial role perspective. Project Management Journal, 45(1), 21-
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Martinsuo, M., & Killen, C. P. (2014). Value management in project portfolios: Identifying
and assessing strategic value. Project Management Journal, 45(5), 56-70.
Meredith, J. R., Mantel Jr, S. J., & Shafer, S. M. (2017). Project management: a managerial
approach. John Wiley & Sons.
Muller, R. (2017). Project governance. Routledge.
Originenergy.com.au. (2019). Reports & Presentations - Origin
Energy. Originenergy.com.au. Retrieved 30 July 2019, from
https://www.originenergy.com.au/about/investors-media/reports-and-results.html?
page=1&tag=*&fromdate=&todate=
Sánchez, M. A. (2015). Integrating sustainability issues into project management. Journal of
Cleaner Production, 96, 319-330.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Teller, J., Kock, A., & Gemünden, H. G. (2014). Risk management in project portfolios is
more than managing project risks: A contingency perspective on risk
management. Project Management Journal, 45(4), 67-80.
Turner, R. (2016). Gower handbook of project management. Routledge.