Practices, methods and tools for project portfolio management

The article deals with project portfolio optimization and management as an important tool for strategy implementation. Firstly, shortcomings of strategy implementation and important features, goals and drawbacks of project portfolio management are characterised. Further attention is paid to processes of project portfolio management and their methodical support. Followed by comparison of seven process models of project portfolio management from the perspective of their structuring into phases, agreement, differences and shortcomings. The core of the article is project portfolio development and optimization, where the basic categories of portfolio optimization models are characterised. These categories constitute deterministic optimization models, deterministic equivalents of stochastic optimization models, computer supported heuristic optimization models and stochastic optimization models. Attention is also paid to determination of input variables of these optimization models including values of projects and probability distributions of quantitative evaluation criteria. Conclusion presents benefits and assumptions of successful project portfolio management implementation in practice.