How to Select and Adjust Project Portfolio Based on the Alteration of Strategic Objective in Uncertain Environment

The impact of strategic objective alteration on project portfolio (PP) selection is always ignored in the existing research, which makes the selected PPs cannot smoothly support the realization of enterprise strategy. Under this circumstance, this paper firstly studies the project portfolio selection and adjustment (PPSA) problem based on strategic objectives alteration in the uncertain environment, aiming to help enterprises develop a robust project portfolio selection and adjustment method. Firstly, combining the adjustment cost function of PP and strategic objective constrain, an extended model of PPSA is established. Then the uncertain theory is introduced and the influence of manager risk preference is further discussed. Finally, the PPSA problem is reformulated into the shortest-path planning problem, based on which an improved Dijkstra algorithm is proposed. The analysis of a case study demonstrates that 1) selection the PP with the lowest cost in each period is not the optimal decision for the PPSA problem, and managers should pay more attention to the potential cost arising from the strategic objective alteration, 2) the total implementation cost of PP in the whole planning cycle increases with the rise of the manager's tolerance level of cost overrun, 3) the proposed algorithm has high solving efficiency, and the calculation time increases with the increase of the number of projects