Multiple Projects And The Project Slate
The discussion in this section has focused on single projects. A trade-off approach has been defined to determine the most appropriate project concept for an international project. However, in the real world there are multiple projects that are reviewed and approved at the same time. The same approach can be extended to multiple projects.
The real world is a political world where there are multiple projects, hidden agendas, and trade-offs. It is better to make trade-offs in a proactive way. The project slate is the set of approved projects at a particular point in time.
Here are the steps to follow:
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Step 1: Identify potential projects at both the local and international level.
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Step 2: Undertake to develop project concepts for each of the projects with the most promise.
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Step 3: Collect the roles and resource requirements for the projects.
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Step 4: Prepare a resource analysis table.
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Step 5: Perform trade-offs and select which projects are to go ahead and which of the current projects should be cancelled.
What is a resource analysis table? A format appears in Fig. 2.9. In this figure the locations or business units are listed as rows in the first column. In the second column comments about non-project work are entered. The next set of columns is for the major current projects. The third set of columns is for new projects. The entries in the table for these columns are comments about resources and resource requirements.
How do you employ this table? Well, much of life is a “zero-sum” game. That is, there are only so many resources. If you allocate a resource to one project, it is really not available for other projects. The purpose of this table is to actively support trade-offs between projects and regular work with regard to resources.
A fundamental lesson learned for us has been that companies embark on international projects without performing this kind of trade-off analysis. Projects are approved individually without regard for the available resources. You have to look at the available resources and what has already been committed before you can commit to more projects. This is a basic point of the book. This theme will return again and again in almost all chapters. If resources are not proactively considered in approving projects, here are some of the major problems that are likely to occur.
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A new project will be approved. When work begins, each location and business unit will be forced to make on-the-spot trade-offs. What is more important? To finish the current project; to complete other work; or to start another project? From the wording it is clear that the new project loses.
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The new project will begin to cause a ripple effect. Problems in other projects due to resource shortages will start appearing. It is as if starting the new international project is like casting a stone in a lake—the effects emanate out from where the stone hit the water.
That is why you must work to sell the new project to management and employees at the local as well as headquarters levels. That is also why you want to encourage people to review current projects and kill off those that are not making progress or that will not produce substantial benefits