Business Case Control in Project Portfolios—An Empirical Investigation of Performance Consequences and Moderating Effects
IEEE transactions on engineering management
Practitioners place strong emphasis on business cases with the expectation that using business cases to inform and drive investment decisions will assist in creating value from those investments. Maximizing the value generated by project investments is a central aim of project portfolio management, and the business case provides the underlying rationale for the evaluation of the value created in each project. However, research regarding the use of business cases at a project portfolio level is
... portfolio level is scarce and there is little guidance for portfolio managers on when and how to control business cases. We identify three elements of business case control at the portfolio levelthe initial review, the ongoing monitoring during project execution, and the post-project tracking until the business case is realizedand investigate the relationship between business case control and project portfolio success. Furthermore, we analyze enablers and contingencies for the application of business case control. Based on a cross-industry sample of 183 firms we find that business case control is positively related to project portfolio success. Accountability for business case realization and corresponding incentive systems increase this positive effect. Finally, we show that portfolio complexity also positively moderates the relationship.