ABSTRACT
In dynamic environments, organizations must adapt to succeed. In project-based organizations, project portfolio management (PPM) can act as a dynamic capability, a strategic capability that provides competitive advantage by enabling an organization to effectively respond to change. PPM is an important organizational capability that enables organizations to manage and balance their portfolio holistically; to align projects with strategy; and to ensure adequate resourcing for projects to maximize the benefits from project investments. A dynamic PPM capability boosts organizational agility and flexibility by facilitating adjustments to the project portfolio and reallocating resources in response to changes in the environment. To remain relevant in a dynamic environment, the PPM capability itself must evolve. Examples of aspects of PPM that provide dynamic capability are outlined in this chapter to provide guidance for practitioners.
