This thesis examines the role of Portfolio Management (PM) within Swedish public sector organizations (PSOs). The introduction outlines the context of the challenges faced by PSOs, presents the digital strategy of the Swedish Association of Local Authorities and Regions (SKR), and defines the research problem. The research question is: What are the key lessons from deployment of Portfolio Management, as an approach to govern Digital Transformation, in Swedish public sector organizations? The study is specifically confined to Swedish PSOs.
The thesis structure consists of sections on theoretical frameworks, research methodology, results presentation and analysis, comprehensive discussion, and a conclusion with implications for future research. The second chapter presents a literature review on digital transformation (DT), strategic management (SM), and PM. It highlights the complexity, phases, and transformational nature of the socio-technical system and the digital business strategy. Moreover, it identifies the challenges specific to PM in the public sector. The literature review synthesizes findings from 12 articles, identifying challenges and biases in public sector PM. The theoretical framework integrates models of DT, transformation management, SM, and PM to explore coordination and alignment in public sector DT.
The methodology employs a qualitative survey approach, utilizing semi-structured online interviews for data collection. Exploratory and non-probability sampling methods, including purposive and snowball sampling techniques, ensure a diversity of perspectives. The data analysis follows Braun and Clarke’s (2006) thematic analysis framework. Ethical considerations are emphasized, particularly confidentiality, informed consent, and objectivity. The study's limitations acknowledge potential biases and the generalizability of findings to other PSOs.
The results indicate that implementing PM in PSOs requires significant efforts in strategic alignment, process design, change management, and capacity planning. However, when successfully deployed, PM can provide substantial benefits, including enhanced transparency, standardization, and coordinated strategy execution.
PM deployment in PSOs is complex and multifaceted, involving various structural components, internal impacts, and key implementation challenges. While PM has the potential to effectively govern digital transformation, this study identifies obstacles such as bureaucratic control, resource allocation issues, and an internal process bias that can hinder its success. To be effective, PM deployment should incorporate elements of project management, change management, and continuous learning to adapt the concept to the organization's specific context.