Playing Tetris With Your Project Portfolio
When planning the projects for next year, how do you decide which projects are a go and which are a no? One straightforward way is to say yes to projects when there are resources lined up to get them done and no to all others. Sure, the projects must have a good return on investment but we’re pretty good at that part. But we’re not good at saying no to projects based on real resource constraints – our people and our budgets.
It’s likely your big projects are well-defined and well-staffed. The problem with these projects is usually the project timeline is disrespectful of the work content and the timeline is overly optimistic. If the project timeline is shorter than that of a previously completed project of a similar flavor, with a similar level of novelty and similar resource loading, the timeline is overly optimistic and the project will be late.
Project delays in the big projects block shared resources from moving onto other projects within the appropriate time window which cascades delays into those other projects. And the project resources themselves must stay on the big projects longer than planned (we knew this would happen even before the project started) which blocks the next project from starting on time and generates a second set of delays that rumble through the project portfolio. But the big projects aren’t the worst delay-generating culprits.
The corporate initiatives and infrastructure projects are usually well-staffed with centralized resources but these projects require significant work from the business units and is an incremental demand for them. And the only place the business units can get the resources is to pull them off the (too many) big projects they’ve already committed to. And remember, the timelines for those projects are overly optimistic. The big projects that were already late before the corporate initiatives and infrastructure projects are slathered on top of them are now later.
Then there are small projects that don’t look like they’ll take long to complete, but they do. And though the project plan does not call for support resources (hey, this is a small project you know), support resources are needed. These small projects drain resources from the big projects and the support resources they need. Delay on delay on delay.
Coming out of the planning process, all teams are over-booked with too many projects, too few resources, and timelines that are too short. And then the real fun begins.
Over the course of the year, new projects arise and are started even though there are already too few resources to deliver on the existing projects. Here’s a rule no one follows: If the teams are fully-loaded, new projects cannot start before old ones finish.
It makes less than no sense to start projects when resources are already triple-double booked on existing projects. This behavior has all the downside of starting a project (consumption of resources) with none of the upside (progress). And there’s another significant downside that most don’t see. The inappropriate “starting” of the new project allows the company to tell itself that progress is being made when it isn’t. All that happens is existing projects are further starved for resources and the slow pace of progress is slowed further.
It’s bad form to play Tetris with your project portfolio.
Running too many projects in parallel is not faster. In fact, it’s far slower than matching the projects to the resources on-hand to do them. It’s essential to keep in mind that there is no partial credit for starting a project. There is 100% credit for finishing a project and 0% credit for starting and running a project.
With projects, there are two simple rules. 1) Limit the number of projects by the available resources. 2) Finish a project before starting one.
Image credit – gerlos