A performance measurement framework in portfolio management

Purpose – The main aim of this paper is to present a framework to create a better understanding of the context and aid the portfolio management process. The paper seeks to present a case to illustrate the proposed methodology, identifying and measuring the success parameters for a project in a portfolio. Design/methodology/approach – The research method is a qualitative and quantitative mixture and it is presented as a study case. The primary data were obtained using semi‐structured interviews with decision makers. Bibliographic research is used in order to construct the theoretical framework and the intervention instrument adopted is the multicriteria decision aiding methodology – constructivist (MCDA‐C). Findings – The methodology allows the criteria that must be taken into account, according to the decision makers' values and preferences in the project selection and sorting processes, to be visualized. The framework supports the ordinal and cardinal measurement of the project performance, making it possible to compare and rank proposals, as well as providing a process to improve project proposals. Practical implications – This process has helped in negotiations between stakeholders in a portfolio context and, consequently, has helped the chief project officer (CPO) to select and prioritize strategic projects within the demand for new products. Originality/value – This paper offers an empirical understanding of the application of performance measurement to portfolio management context and identifies complementary tools in this interdisciplinary area.