Managing multiple projects with portfolios in MS Project
In today’s dynamic business landscape, handling multiple projects concurrently is no longer the exception but the norm. A strategic approach to organize and control a collection of projects with specific business objectives is known as Project Portfolio Management (PPM). Microsoft Project, with its robust features, stands out as an invaluable tool for managing project portfolios. So, in this tutorial, we’ll delve into leveraging Microsoft Project for efficient project portfolio management — from portfolio setup to performance tracking and optimization.
Briefly about project portfolio management
Project Portfolio Management (PPM) entails the synchronized management of multiple projects in alignment with organizational goals. Its primary objective is to maximize benefits by prioritizing projects, allocating resources effectively, and making informed, data-driven decisions.
Key aspects of PPM include:
1. Project selection
Project managers should identify and prioritize projects based on their strategic value, risks, resources, and potential returns.
2. Portfolio balancing
When the projects are selected, the task is to achieve an optimal balance between risk and return, while considering resource constraints.
3. Resource management
Having a project portfolio and clearly defined priorities, managers can allocate available resources among projects so as to maximize efficiency and achieve strategic goals.
4. Monitoring
PPM implies tracking the progress of projects within the portfolio to timely identify issues and adjust plans.
5. Assessment
Based on the data on project performance and results, managers and other stakeholders can make conclusions to improve portfolio management processes.
Microsoft Project offers a comprehensive suite of tools and features specifically designed to support project portfolio management. From project planning and scheduling to resource management and reporting. It’s not the easiest tool to use, and, in fact, any decent alternative to Microsoft Project (examples here) may offer you a more convenient workflow. But, if you are determined to take over Project, let’s explore how to find and use them in the program!
How to work with a project portfolio in MS Project?
1.Set up a project portfolio in Microsoft Project
Before delving into the technical aspects, it’s crucial to clearly define the scope and objectives of the portfolio. This entails pinpointing specific goals, boundaries, and desired outcomes for all projects within the portfolio. For a technology company, this might encompass developing new software products, upgrading existing ones, and conducting market research in potential markets.
Once projects are categorized, customize their attributes, such as priority, status, and key performance indicators (KPIs), to streamline portfolio analysis and decision-making. To prioritize projects, use a scoring system or decision matrix and assign values to each project based on criteria such as alignment with strategic goals, expected financial return, and risk level. This approach will help to compare and rank projects and then allocate resources effectively to projects that offer the greatest benefit.
To set up a project portfolio in MS Project, initiate a new project file as the master project. Navigate to the “Project” tab, select “Subproject,” and choose each individual project file to include in the portfolio. Insert them as subprojects by selecting the files and clicking “Insert.” Ensure “Link to project” is enabled to maintain a connection with the original project files, ensuring updates synchronize across the master and subprojects.
2. Manage resources within project portfolio in MS Project
To manage resources across multiple projects that constitute a portfolio, create a shared resource pool. The process is straightforward. Begin by opening the “Resource Sheet” view from the “View” tab and input the details of all shared resources (e.g., names, types, maximum availability) across projects. Once completed, save this file with a distinct name indicating it serves as a resource pool.
Next, open each project file utilizing the shared resources. Navigate to the “Resource” tab, click “Resource Pool,” and choose “Share Resources.” Opt for “Use resources” from the subsequent project and select the resource pool file you generated.
You’ll then choose between two options: “Pool takes precedence” (where changes in the pool affect the project) or “Sharer takes precedence” (where changes in the project affect the pool) for each project linked to the pool.
Resource management in MS Project for portfolio is similar to any standalone project. You can use resource leveling and capacity planning tools to optimize resource utilization and prevent overallocation.
Track portfolio performance
In MS Project, you have the flexibility to customize your portfolio tracking. For instance, you can identify key performance indicators (KPIs), such as cost variance or schedule changes against the established baseline, and create specific custom fields for them (“Project” > “Custom Fields”).
For each custom field, you can set up a formula to automatically calculate its value based on existing data. For example, to calculate cost variance, you might use a formula where you deduce Baseline Cost from Cost. This dynamic approach will provide ongoing updates and insights into project and portfolio performance as data evolves.
To enhance visual representation, consider incorporating graphical indicators within custom fields. Using color-coded icons to signify whether a project is on track, at risk, or off track, can be a visual aid for swiftly assessing project health across the entire portfolio.
Generate reports for portfolio analysis
Microsoft Project’s reporting feature goes beyond tracking individual projects. It’s your go-to for analyzing and communicating your entire project portfolio’s performance. Head to the “Report” tab to craft custom reports that bring together data across your portfolio — think overall progress, costs, and resource allocation. Want a visual snapshot? Customize reports with charts, tables, and timelines to create dashboards right within Microsoft Project, showcasing your portfolio’s highs and lows.
Creating cross-project reports, you will get big-picture details like total portfolio cost, average project delays, or resource utilization rates. What’s more, you can export that report data to Excel,
unleash advanced data visualization tools like pivot tables and charts, and share those portfolio performance insights far and wide.
Conclusion
Implementing project portfolio management using Microsoft Project will empower your team to adeptly handle the intricacies of managing multiple projects. Tailored for portfolio management, Microsoft Project boasts robust features, proving itself invaluable across the entire project lifecycle. Whether setting up a project portfolio, efficiently managing resources, or tracking performance with insightful reports, MS Project offers a comprehensive suite of tools. This tutorial aims to serve as a foundational guide for seamlessly navigating the challenges of concurrent project management.
