The Optimization Trap in Multi-project Management

We often find ourselves caught in the cycle of optimizing resources to manage multiple projects that share common resources. The goal is straightforward: schedule projects to maximize portfolio delivery within the available capacity.

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This gives the impression that it's an optimization problem to solve, leading us to rely heavily on software algorithms in search of the best possible solutions. Over the years, numerous heuristics have been developed in pursuit of this goal. The assumption is that projects will follow the estimated timelines in the specified sequence and that resources will perform exactly as planned—but this is not possible in ??????????????.

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1. Impractical Schedules: The solutions provided by these algorithms often suggest impractical actions, such as shifting resources from Project A to Project B, then to Project C, and back to Project A. This is not feasible on the ground.

2. Sub-Optimal Results: Even if you rely on critical path-based heuristics, the outcomes are often far from optimal. Kelly & Walker, the inventors of the Critical Path Method, acknowledged this limitation themselves.

3. Unpredictable Execution: Once a project hits the execution phase, delays, changes, and shortages inevitably arise, rendering the optimized plan useless. After a few cycles of re-planning and re-optimization, even with the best software available, teams often revert to manual management using spreadsheets.

?? Solution? After trying everything else, first acknowledge that this is not an optimization problem. Let go of the myth of 100% resource utilization. If you are convinced, change your approach to finding a good starting solution for a plan that remains valid even in the face of delays, changes, and shortages.

So essentially, the plans should be different from traditional ones, with the objective to maximize speed of the project in any given scenario and not optimizing available resources. And further it is all about enforcing a discipline to change reactions in the face of delays, changes, and shortages - issues that will inevitably arise in any project.

Few other posts by him

1. Radical Change in Project Performance

https://www.dhirubhai.net/posts/surajit-pal-96864154_projectplanning-projectmanagement-projectcontrol-activity-7206404571542224896-Qnfq?utm_source=share&utm_medium=member_desktop

2. Mirage of Meeting Dates in Project Management

https://www.dhirubhai.net/posts/surajit-pal-96864154_projectplanning-projectmanagement-projectcontrol-activity-7202383323766169600-rHOF?utm_source=share&utm_medium=member_desktop