Building and Using A Practical Portfolio Benefits-Realization Plan with MS Project (Part - 2)

In the earlier part, we understood the fundamentals and importance of a Portfolio Benefits-Realization Plan. We also took a number of steps to build this plan. In this part, we will conclude and give a finishing touch to the plan, followed-up with a video and concluding remarks.

This series: Part – 1

Step – 6: Segregation of Components and Strategic Objectives

As the portfolio components are all blue color-coded, the distinction among components in the graphical side of the plan is not very clearclear. Hence, our next step is to segregate the components with the help of additional custom fields. For our plan, we will have three Boolean custom fields:

• IsProgram: A Boolean flag indicating the component is a program.
• IsOps: A Boolean flag indicating the component is an operation.
• IsStrObj: A Boolean flag indicating the organizational strategic objective. 

Again, to create these custom fields, go to Gantt Chart Tools > Format tab > Columns group > Custom Fields command and add three Boolean flags as shown below. 

Next, we need have to change the conditions associated with these three flags. Whenever a new portfolio component or a new strategic objective is added, the respective bar in the Gantt Chart view will display the requisite color.  For this, go to Gantt Chart tools > Bar Styles group > Format drop down menu and choose the Bar Styles command. We will add the following tasks with respective conditions:

• Program Task: N It’ll be a normal, active task with the ‘isProgram’ flag applied.
• Ops Task: NIt’ll be a normal, active task with the ‘isOps’ flag applied.
• Strategic Obj task: NIt’ll be a normal, active task with the ‘isStrObj’ flag applied.

To add these new tasks, simply use the functionalities available in the Bar Styles dialog box such as Insert Row, Cut Row, and Paste Row.  

As shown above, we have four task types, including the default task type for the component projects represented with a blue bar.

Next, we willhave to apply them in the Gantt Chart view in the following manner:

• Set ‘isProgram’ field “Yes” for the component programs.
• Set ‘isOps’ field “Yes” for the component operations.
• Set isStrObj’ field “Yes” for the strategic objectives.

When you have all the respective fields set for the component projects, programs, operations as well as the strategic objectives, we will have the following view.  

As shown, the component programs (e.g., Program 1), component projects (e.g., Project 3), and component operations (e.g., Operational Work 1) are shown in green, blue, orange colors, respectively. On the other hand, the strategy and objective (e.g., Organizational Strategy and Objective I) is shown with red color coding.

As you present this bBenefits-realization plan or share with your stakeholders, you may want to just show the minimal fields. Additionally, based on your need, you can also add the component names in the graphical side of the Gantt Chart view. This is depicted in the below figure. 

As shown above, we now have complete Portfolio Benefits Realization as documented in PMI’s Standard for Portfolio Management. If you have business proposals (or cases) as another portfolio component class, you can exactly follow the same previous steps with a new custom Boolean flag, conditions,  and a separate color.

Video – Demonstration of Portfolio Benefits-Realization Plan 
*** NEW ***

I’ve put together a video depicting a portfolio benefits-realization plan. In addition, I've some more explanation with respect to this plan. My video [duration: 4m:26s] shows all the components in the plan, which we recently learned in the article. They are demonstrated with different color coding for the individual components.

Conclusion

Finally, you might be wondering,  can someone add the benefits accrued from the components into the portfolio benefits-realization plan? 

Yes, you can! But do ensure the linking and dependencies are properly managed. 

However, the PMI-SPfM puts the portfolio components, benefits, and strategic objectives, along with the benefits realization based on schedule and number of other parameters in a separate portfolio report called portfolio performance variance report. As you manage your portfolios, along with key deliverables such as portfolio roadmap, portfolio reports play a significant role. Hence, while doing portfolio management and sharing the status with your stakeholders, you can use both the portfolio benefits-realization plan and the portfolio performance variance report.

Many perceive and/or believe that MS Project software tool can’t be used to create a Portfolio Benefits-Realization Plan! As we just learned, you can certainlydefinitely build one and dynamically change the plan as per your needs. 

This series is concluded. I welcome your thoughts, reviews, and feedback in the comment section below.

This series: Part – 1

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This article was first published by MPUG.com on 5th December, 2023. The current one has been updated with content and video.

References

[1] NEW Book - I Want To Be A PfMP, The Plain and Simple Way, by Satya Narayan Dash

[2] Article – Benefits Realization Management for Projects, by Satya Narayan Dash

[3] The Standard for Portfolio Management, by Project Management Institute (PMI)