Portfolio Management: A New Direction in Public Sector Strategic Management Research and Practice

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Public Administration Review - 2023 - Roberts - Portfolio Management A New Direction in Public Sector Strategic Management (1).pdf (644.74 KB)

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https://onlinelibrary.wiley.com/doi/abs/10.1111/puar.13633

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https://doi.org/10.1111/puar.13633
 http://hdl.handle.net/11603/27635

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UMBC School of Public Policy
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2023-04-04

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journal articles
postprints
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Citation of Original Publication

Roberts, P. and Edwards, L.H. (2023), Portfolio Management: A New Direction in Public Sector Strategic Management Research and Practice. Public Admin Rev. Accepted Author Manuscript. https://doi.org/10.1111/puar.13633

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This is the peer reviewed version of the following article: Roberts, P. and Edwards, L.H. (2023), Portfolio Management: A New Direction in Public Sector Strategic Management Research and Practice. Public Admin Rev. Accepted Author Manuscript. https://doi.org/10.1111/puar.13633, which has been published in final form at https://doi.org/10.1111/puar.13633. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.
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Abstract

Portfolio management is widely used by large government agencies and nonprofits, but it is rarely discussed in public administration scholarship. Portfolio management tools can illuminate groups of projects that should be considered as priority investments by highlighting the relationship of risk to outcomes. This article explores historical and theoretical reasons for the neglect of portfolio management, and then proposes using portfolio management to update a classic strategic management framework to guide organizational choices in public administration. Though portfolio management ideas originated in the private sector, public sector portfolio management differs from its private sector counterpart by trading off risk with public value or mission outcomes rather than financial outcomes. Portfolio management is a tool to incorporate risk to mission in investment decisions. It holds promise for adding an intermediate-level implementation tool to develop theories of public value. The paper concludes with hypotheses for future investigation.