Portfolio Optimisation: Managing Dependencies & Resources
Why Portfolio Optimisation Matters
Companies often roll out many projects to increase organisational value, meet strategic objectives and address needs. These projects build up what is called a portfolio. However, what companies often don’t consider when making bigger plans is the management of these projects across the organisation and how best to optimise them at a higher level, allowing them to remain on track and delivering impact. Due to this, there is often a battle between business-as-usual tasks and project activities. In this blog I want to explore how effective portfolio optimisation and planning hinges on managing resource constraints and other project dependencies, along with the benefits, challenges and tools that support it.
Benefits of Portfolio Optimisation
Portfolio optimisation offers numerous advantages, including enabling businesses to build highly efficient teams through smart resource management. Since projects can often deviate from original resource plans due to unforeseen circumstances, it’s essential to maintain a live environment that can adapt to these changes. This means optimising resource allocation, upholding efficiency, and leading seamless project execution with on-time delivery. It not only fulfils the requirement of achieving strategic objectives but also fosters the business’s potential to grow and confidently launch new initiatives.
Defining Dependencies and Their Impact
The first step is to understand the different types of interdependencies that may arise across projects, so companies know what to watch out for. The three most common interdependent types are resourcing, scheduling, and technical – where delays or changes in one project can directly affect others.
In circumstances where a critical resource is shared between two or more projects, there arises a resource interdependency. In an ERP environment, a resource interdependency might occur when two projects, say one implementing the Finance module and another rolling out a Procurement module, both rely on the same Subject Matter Expert (SME) for configuration and testing. If the Finance project falls behind and demands more time from the SME, the latter project may suffer delays as well. Even though the projects are technically separate, their progress is intertwined through shared personnel, making resource allocation a key risk to manage.
A scheduling interdependency occurs when one project’s timeline directly affects another’s outcome, such as when a Procurement module depends on a Finance module going live first with accurate structures like cost centres, GL accounts, budget codes, and approval hierarchies. A delay in Finance prevents Procurement from properly configuring or testing its processes, causing misalignment and overall project delays. Similarly, a technical interdependency arises when one project’s systems or components rely on another’s to function. Procurement, for instance, needs Finance’s supplier data, tax rules, and payment details to operate correctly. If Finance isn’t ready or changes its setup, Procurement can’t complete its build or testing, so both teams must coordinate closely to ensure seamless integration and smooth system performance.
Remember: Dependency management requires ongoing attention, as dependencies can quickly become outdated without regular oversight. It is not a one-off exercise!
Portfolio Optimisation Through Resource Management
Considering the interdependencies outlined above, a portfolio should at least implement a structured resourcing strategy or plan to ensure effective allocation of limited resources. The goal is to maintain a balanced workload and smooth workflow while delivering projects within the agreed scope, timeframe, and budget.
To optimise portfolio management, it’s important to maintain a bird’s-eye view of all related stakeholders and projects.To achieve this, project leads should aim to outline the names of all team members, the percentage of their time allocated to each project, and the proportion dedicated to business-as-usual (BAU) activities. It’s also important to note each team’s peak work periods (for example, April or month end for a finance team) and any planned leave in advance. Another important consideration is that if too many projects are scheduled, it’s essential to prioritise them and focus on delivering those that best align with the organisation’s strategic objectives and needs. In such cases, the Portfolio Management Office (PMO) plays a crucial role by collating and analysing resource inputs to support evidence-based decision-making and prioritisation, helping to identify and address potential resource overallocations and determine which projects should take precedence.
Remember: Project portfolio management and resource management are closely interconnected and must be managed in tandem.
An approach to identify interdependencies early in the portfolio is by mapping projects against one another and using keys or symbols to highlight the various types of interconnections. For mature portfolios, consolidating status reports and RAID logs at the PMO level helps surface recurring issues and themes. Many tools now use AI to analyse reports and generate summaries, streamlining management. Where tools aren’t available, some organisations opt for manual portfolio-level RAID meetings.
Choosing Tools and Technology Wisely
When selecting a Project Portfolio Management (PPM) software, organisations should carefully consider several key factors. First and foremost, if a business is implementing an ERP system with an additional module for project management, planning, or resourcing, it’s important to clarify any ambiguous terminology. Such modules may often be designed for managing BAU activities rather than supporting portfolio-wide project management needs.
Tools should, at a minimum, enable accurate tracking of resources allocated across multiple projects within a portfolio, including the exact percentage of time assigned. This is to prevent overallocation and resource conflicts. Additionally, the tool should provide a PMO-level overview via a centralised dashboard that consolidates key portfolio information and scales appropriately with the size of the business and potential growth. It is also highly beneficial for the tool to include forecasting capabilities, enabling forward planning and providing visibility into future project utilisation across teams. The final critical factor an organisation should consider is cost. If there is limited in-house expertise with such tools, investing in complex, high-cost solutions may not be the best option, especially when assessing return on investment.
Remember: The features of a PPM tool should minimise manual work and eliminate silos, providing a clear, high-level view of both current and future portfolio statuses.
A key advantage of PPM tools is their ability to support collaboration and provide real-time data access for multiple users. In ERP implementations, where both internal and external team members are often involved, such platforms enable seamless access to live documentation, visibility into team availability, and collaborative planning, all of which enhance project efficiency
Turn Complexity into Clarity
Portfolio optimisation isn’t just about juggling projects, it’s about aligning resources, navigating dependencies, and leveraging the right tools to drive strategic value. By mastering these elements, organisations can transform scattered initiatives into a cohesive, high-performing portfolio. Whether you’re refining your current approach or building from the ground up, the path to optimisation starts with visibility, adaptability, and empowered decision-making.
Take hold of your portolio today and get in touch with one of our experts for an initial consultation.
