Project 2010 Portfolio Strategy for Large Organizations RRS feed

  • Question

  • Is it possible to use Project 2010 Portfolio Strategy (PPS) feature in an company where there are several large independent groups sharing one instance of Project Server 2010, each wanting to use PPS?  Some of these groups share human resources with other groups while the other groups are totally independent (ie., the latter doesn't share human resources with any of the other groups).  However, they are all constraint by the same corporate monetary budget. 

    Would such a company be able to make use of PPS to help them with their project selection?  In the end, each group should have a share of the company's capacity!  I.e., no group can be left out in the cold with no projects because all the available money has been allocated to the other groups due to how their projects have been prioritized (and align to the business drivers).

    Can PPS help determine what share of capacity each group should have, and in turn the projects that it can afford to undertake?  Or, would the company first need to figure out on its own how it would wants to allocate its monetary budget to each of these groups?  If it is the latter, would this organization still be able to use PPS given, as described above, some of them share their human resources while other groups do not?

    It comes down to this... we have a fixed number of clients that all need to be served.  Some share our human resource capacity and some clients use a dedicate pool of human resources.  The company has a fixed amount of money every year to serve all the clients.  Can PPS help use figure out what the optimal mix of projects is?   

    /Spiro Theopoulos

    Sunday, August 15, 2010 3:40 PM


  • Good question.  The quick answer from my perspective is that we're typically trying to allocate a specific shared resource pool across multiple departments.  Therefore, it makes sense to treat as a single portfolio all projects using the same shared resource pool.

    For departments with their own dedicated resources, I would treat them as their own resource pool with their own optimization models.

    PPS is designed for specifically that configuration, as you can prepare multiple models based on your portfolios.

    The real question is overarching though.  It sounds like your question is how do we allocate funds across multiple distinct resource pools.  That's not necessarily a tool question per se, but more a stategy development methodology question.  To me, it's highly dependent on the values of the organization.  Strategy is derived from those values, whether they be home grown or purchased off the shelf in the case of ITIL, Six Sigma, Lean, TOC, etc.

    The best overview I've seen on strategy development (which is not to say it's the best out there, but someone recommended it to me) is Strategy Safari by Mintzberg, Ahlstrand, and Lampel - although apparently Mintzberg is kind of a controversial name in some circles.

    For something with a bit more Microsoft flavor that is more aligned with the specific tool in question, you may want to look at Simon Moore's Strategic Project Portfolio Management.


    Sunday, August 15, 2010 4:13 PM