Jamal Moustafaev

Jamal Moustafaev

How to Determine Resource Pool Available for Your Project Portfolio?2 min read

Very frequently when teaching my Project Portfolio Management Masterclass I get asked the following question:

One of our major challenges is assessing the size of our resource pool.  No matter how meticulous our calculations are, we constantly end up with way more projects than we can handle! Sometimes we are talking orders-of-magnitude errors in estimation!

So, here is an example of a “back of the envelope” calculation of total project resources bucket at a company that has proven to be extremely robust.

Imagine that there are 250 employees working at the head office. It has been estimated via survey or questionnaires that approximately 30% of their time is spent on project work and 70% on business as usual, i.e. normal daily non-project tasks. Based on that information we can assess the size of the total project resource bucket at the company:

Total number of people at the head office = 250 people

Total number of working months in a year = 10  minus two months for vacation, holidays and sick days)

Percentage of time spent on projects = 30% (estimated based on surveys)

Thus:

Total Project Resource Pool = 250 people X 10 months X 0.30 = 750 person-months

Therefore the total project human resources available for the entire portfolio are 750 person-months. Using this figure and knowing that there are 12 months in a year we can calculate the approximate resource pipeline throughput at the company as follows:

Project Pipeline Capacity = Total Project Resources/Number of Months in a Year = 750 person-months/12 months = 62.5 person-months/month

In other words the total project resource requirements at the organization should not exceed 62.5 person-months in any given month.

So, here is my traditional multiple-choice question for you:

How do you measure your portfolio resource pool?

  • A. We don’t measure it at all. The projects are added to the portfolio on an “ad-hoc” basis without checking our resource availability.
  • B. We use some kind of back-of-the-envelope calculation similar to the one described above.
  • C. We use a very sophisticated method and/or software package that takes into account resource specialties, project involvement per specific person as well as individual vacation times.

This was a guest article written by Jamal Moustafaev from Thinktank Consulting.

SHARE THIS POST

LinkedIn
Twitter
Facebook

Related Blog​s

Project Portfolio Management
Tim Washington

Pipeline Management-Stage Gates Part 1

Stage-Gates™ are a critical component of project selection. A winning portfolio must contain winning projects, therefore the project governance board must be able to discriminate between good projects and great projects.The decision gate process enables the project governance board to review these projects based on

Read More »
Project Portfolio Management
Tim Washington

Tactical or Strategic PPM

Fundamentally, portfolio management is about strategic execution and maximizing value to the organization through important project investments. Through various processes, leadership teams can determine how well their project investments align to key strategic goals. Optimization techniques can further enhance the value of the portfolio, ensuring that organizations

Read More »
Project Portfolio Management
Dinesh Kashyap

The Purpose and Goal of Prioritization

Prioritization is about focus—where to assign resources and when to start the work. It is not about scoring methods and ranking mechanisms. Without defining project priorities, it is difficult to effectively distribute personnel to carry out the highest valued projects. Project priorities enable management to assign their employees to the most

Read More »

©2020 Cloudbyz Inc. All Rights Reserved.