Key attributes of effectiveness in managing project portfolio

•This study was commenced to identify key attributes of PPM effectiveness.•Organizational and team effectiveness literature provided theoretical foundation.•Strategic and operational attributes of PPM effectiveness were identified.•Definition of PPM effectiveness was proposed based on the key attributes.•Future research and implications are suggested.

While project portfolio management (PPM) has been practiced, the understanding of PPM effectiveness is still limited. The lack of such an understanding has practitioners continuing with a PPM approach that has not been measured as to its effectiveness and impact on business results. To promote a better understanding of PPM effectiveness, this study investigates PPM practices in real-life business settings to identify key attributes of PPM effectiveness. As a result, six attributes of PPM effectiveness were identified. The strategic attributes are 1) strategic alignment, 2) adaptability to internal and external changes, and 3) the expected value of the portfolio. The operational attributes are 1) project visibility, 2) transparency in portfolio decision making, and 3) predictability of project delivery. Based on these attributes, a definition of PPM effectiveness was purposed. This paper concludes with contributions and implications, including limitations and agenda for future research.