Integrated Lean Project Portfolio Management Framework

In navigating the complexities of project environments, organizations face a challenge akin to managing a system of systems. This complexity complicates the identification of areas for improvement regarding productivity, focus, value, waste, and variation. While Lean principles have traditionally been more applicable in manufacturing contexts, their adaptation to project environments presents both challenges and opportunities for improvement.

Project Environment as a System of Systems

In a multi-project environment, four interconnected systems emerge:

Task Management System: This system encompasses a comprehensive list of tasks, where each task has designated responsibility. The task details often remain obscured in project schedules, only reflecting the end results—such as “complete electrical wiring” for a construction project.
Individual Project System: Within the individual project system, the sequence of tasks, handoffs, and deliverables converge to achieve specific outcomes. Each project must adhere to defined timelines and budgets, but often, dependencies between projects create challenges that go unaddressed. Risks associated with moving shared resources can impact overall project performance.
Portfolio of Projects System: At the portfolio level, projects are categorized based on product, business, or organization type. Here, competing priorities and resource constraints become apparent, leading to compromises in project execution. Managing customer needs across multiple projects can complicate coordination and resource allocation, with some projects being perceived as “hot” and receiving preferential resource treatment.
Resource Management System: This system is essential for planning resource capacity to support ongoing and future projects. Effective resource management involves the dynamic balancing of resource availability and task execution priorities, ensuring that the right people are allocated effectively across projects.

Leaning Towards Project Optimization

To fortify project management practices within this system of systems framework, several guiding principles and practices can be employed:

Limiting Work in Progress (WIP)

An essential Lean principle is to limit the number of projects running concurrently. This approach requires a thorough analysis of the project lifecycle to identify constraints. A practical starting point could be manageable parameters such as the number of project leaders multiplied by two or the number of visual management tools utilized (whiteboards, analog or digital).

Multi-Project Pulse Structure

Implementing daily pulse meetings is critical for maintaining momentum across within projects. These brief gatherings facilitate focused discussions that allow project leaders to address challenges related to cost, quality, and time. Weekly meetings between project leaders and resource managers should address any resource-related challenges encountered during project execution.

Establishing Project Priorities

Prioritization is vital to effectively utilizing shared resources. Projects must be prioritized based on business impact and strategic alignment, ensuring clarity among team members concerning the most pressing engagements. Having clearly defined priorities helps streamline resource allocation when multiple projects compete for attention.

Support System for Resource Management and Project Priorities

To implement Lean Project Portfolio Management effectively, organizations should develop a support system with two primary pillars: resource management and project prioritization. Additionally, limiting project concurrency is crucial.

Resource Management Principles

Workload Limitation : Limit individual workloads to a maximum of three concurrent projects or assignments. This encourages focus and minimizes task overload.
Time Slice Allocation : Shared resources should work in time slices of four hours or more, with clear communication and synchronization of project schedules. For example, a resource may engage with Project X on Mondays and Tuesdays, Project Y on Wednesdays, and Project Z on Thursdays and Fridays.
Availability Constraint : No resource should be allocated beyond 80% of their available time across projects. This principle ensures a buffer for unforeseen challenges and enhances productivity.
Walk-in Demand Filtering : All short-duration requests should be filtered to establish priorities and assign responsibilities appropriately, preventing disruption to existing project workflows.

Conclusion

Integrating Lean principles into project portfolio management allows organizations to navigate the complexities inherent in multi-project environments more effectively. By focusing on eliminating waste, improving resource allocation, and establishing clear priorities, organizations can enhance productivity and deliver value to customers consistently. Lean Project Portfolio Management serves as a powerful framework to drive continuous improvement and foster collaboration across project systems, ultimately aligning efforts with organizational strategic objectives.