Here we provide 3 steps to more effective project portfolio management. See how some minor tweaks to your current workflow can increase efficiency and productivity.
According to a survey, only 33% of project portfolio managers would categorize the project portfolio management (PPM) practices at their organization highly effective. 62% of managers estimated the practices to be mediocre, and 5% nonexistent.
What’s even scarier, the ones that perceived their project portfolio management process to be highly effective, stated they experience significant delays at the project level.
It might be because there often aren’t sufficient resource planning metrics to measure the efficiency of PPM or it might be because being behind on schedule is rather a fact of life than an alarm bell. And it might be since the project portfolio practices set have become a routine. Something we have to the way we do it since otherwise it would be wrong. Or would it?
I’d say there’s always room for improvement. Maybe even with my morning routine. Otherwise, we’d just stay in one place.
Before we get to suggesting improvements, let’s take a look at current project portfolio management practices. From selecting the projects to allocating resources. Namely, a scholar from MIT made it their mission to understand the current portfolio management practices.
The results of the survey are the following:
When talking about practices that don’t work, we should cover the different expectations to project portfolio management.
While for managers and employees simplicity seems to be the key, organization opt for the low cost. Employees want management practices to bring them interesting tasks, and managers want the process to be helpful while planning, the organization’s aim is to increase productivity. While managers don’t want to compete for resources, the employees don’t want to compete to keep their jobs. And the organizations just aim to reduce project delays.
For example, imagine a situation where each manager is trying to get the best resources for their projects which can cause overutilization of certain resources and leave other dormant. If one manager has a control over too many portfolios, their preferred resource management practices have a toll on the resources. There’s both less competition for them and an access to top talent.
Luckily, these value-action conflicts can be reduced by aligning the expectations using resource management, so the actions made would serve the same goals. The goals of the organization.
In project-based organizations, the resources are what offer the competitive and financial edge. Effective resource management should be viewed as a way to take care of those resources. And managers should be the carriers of these practices rather than someone out for their own interests.
Neither project portfolio management nor resource management can be ‘do it once and it’s done’ kind of a job. There has to be balancing, there has to be reallocating. It can’t be always post hoc, it should be planned and executed. After the initial scheduling, the tasks planned should be revisited. When a new project is added to the portfolio or when a whole new portfolio is added. Or even when nothing new happens, and the project is just approaching.
When PPM is rather idle than circular, managers reproduce a situation where resources are booked just in case or to their best knowledge. Task duration is estimated using its complexity, risk, and historical performance. However, when the resource is either more or less proficient, the task is completed either with less or more time. When that happens, dependent projects and tasks should be moved. If they aren’t, there will be an unnecessary delay that could be avoided more efficient resource management.
While the impact of this problem can be reduced with mapping out the skills of resources using custom data in a resource management software, real life is still more complicated than any data field could be.
If there are no cancellation policies when scheduling resources, managers tend to become excessively risk-averse and will not make decisions until the uncertainty is low enough. Which might even sound like a good thing.
In reality, it’s nothing other than holding in information that could help other managers during planning. If there were cancellation policies in place, managers could take calculated risks and plan in advance considering the available information. Again, if the schedules made on certain uncertainty are revisited, and resource are reallocated after new information surfaces, it won’t harm the portfolio.
Another way to tackle holding in information is encouraging creating backup plans. Planning using different what-if scenarios, and making sure other managers know what the scenarios are, so they could create their own interdependent backup plans.
Perhaps the most important part of it all is making sure every stakeholder would have an access to the same information. Meaning every manager should be able to access and update the same set of online Gantt charts. When talking about continuous resource management cycle, it can’t work if every manager is still working on their own resource planning spreadsheets. It has to be a collaborative system.
Moreover, it’s not only the managers that should be able to access the schedule. If you want your employees to be more engaged and productive, they should be involved in the resource planning process. Consider project portfolio management tools that don’t charge per user, if inviting all the employees wouldn’t be cost efficient with your current software. If confidentiality is an issue, use different user rights and create different sets of access.
If the access is granted, take a step further and give the resources an actual say on the planned task duration, and maybe even the task planned for them. In addition to or instead of giving out monetary rewards, build a system where a top performing employee can choose the tasks they want to complete.
After all, including employees in the resource management process seems to be what makes PPM practices more efficient.
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