Multi-Project Management

Increasing regulatory requirements, cost-cutting measures, digitization and ongoing

optimization - the complex and parallel challenges banks are facing today can
rarely be solved efficiently in traditional line organizations. Instead, project work
is becoming increasingly important. In a multidimensional project landscape of an
organization, however, individual projects can no longer be viewed separated from
each other. Digitization as an integrated and integrative discipline is characterized by
the consideration of various interfaces and of end-to-end processes - not by isolated
components. Instead of an incomplete digitization strategy with isolated solutions, a
comprehensive modernization of all processes must be driven forward. Many companies
therefore increasingly focus on planning and control of the entire project landscape and
no longer only on individual projects - an integrated, holistic view becomes necessary. The
importance of multi-project management (MPM) is growing.

In addition to classic line or matrix functions, many companies have project-oriented

organizations in which, they have their own teams for the implementation of projects on
a permanent basis. This knowledge-intensive discipline of project management requires
bundling and targeted development of expertise.
Portfolios, programs and projects must be aligned with the strategic goals of the company
in order to achieve the desired success. Separate control of individual projects across
program boundaries makes it difficult to align them with corporate goals. Due to the lack
of a holistic approach, synergy effects are not exploited - disputes over limited resources
are inevitable under these circumstances.
Simultaneous processing of several projects requires transparency of prioritization
and status of all projects in order to create a clear basis for decision-making and, if
necessary, early intervention options for the multi-project manager. However, the
parallel management of several projects also entails the risk of losing focus on the original
individual project objective.
The aim of MPM is to increase the effectiveness and efficiency of complex project work.
This can be achieved with a suitable combination of projects through an optimized use
of technical, financial and human resources as well as content-related coordination. A
professional MPM can become a decisive success factor.

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Definition
Multi-project management refers to the selection, planning, comprehensive control and
monitoring of the entire project landscape of a company or another organizational unit.
At the same time, potential conflicts between the individual projects are considered.
A portfolio includes all projects of a company, also those without thematic integrity. A
program, on the other hand, summarizes several thematically related projects. Multi-
project management represents a further stage. Within a company‘s portfolio, there may
be several projects that are to be processed jointly as part of a multi-project approach or
pursue a common goal. One example would be to increase the efficiency of all projects in
a department - these projects do not all have to be part of the same Program as well as to
represent the entire Program (Fig. 1).
Similar to portfolio management, MPM considers possible conflicts between projects.
This takes place across Program boundaries and thus in an environment with potentially
competing goals between the respective projects.

Fig. 1: Relationship between portfolio, Program, project and multi-project management

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Benefits and success factors
The correct application of MPM, enables apart from the use of synergies and thus
resources across projects, also the combination of project know-how and experience of
the employees. The MPM makes the creation of links between company and project goals
possible as the early detection of any conflicts that may arise. The higher effectiveness
has an impact on competitiveness. Clear priorities, effective communication and a high
degree of transparency reduce complexity.
In the age of classic, agile and freely combined project management methods, the
MPM can „normalize“ the different approaches of individual projects to a higher-
level perspective and compare project data as the progress stages. This facilitates the
reporting to the top management. Projects with dependencies, which are coordinated
with different, freely selectable approaches in planning and control, are optimized.

When managing a large number of parallel projects, challenges such as inefficient

scheduling, resource conflicts or cost increases are not uncommon. These problems result
from various reasons such as the lack of overview of all projects and resources, unrealistic
planning, incorrect priorities or inadequate project structures. Targeted approaches can
eliminate these factors. The success of the means used and the MPM depends above all
on the following points:

• Project selection and prioritization: Based on an analysis of the portfolio,

top management prioritizes and implements those projects that can optimally
support and implement the company‘s goals. In MPM, projects are managed together
which are linked by e.g. common goals, specific content overlaps or process-related
superordinate with each other.

• Framework: The processes surrounding MPM, such as reporting and

communication channels, must be defined and accepted by all stakeholders. Goals,
structures and tasks must be clear to all involved parties.

• Resource management: The division of team members should be analogous to

the prioritization of projects and possible interdependencies should be considered.
The aim is to plan employees with the necessary skills as early as possible and make
them available at the right time. Otherwise, project costs increase because too few

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 suitable employees are available at the required time or projects cannot be completed
on time.

• Project plan: A particular focus is on the project plan, as projects often compete
for the same resources such as budget and personnel and do not exist independently
of each other. Changes in time, cost or resource planning of an individual project often
have an impact on other projects. Careful scheduling and cost planning, the definition
of the project structure and - especially in MPM - clarity about interfaces to other
projects and a corresponding communication plan are therefore indispensable.

• Rules: Transparency and clear rules are not only crucial for the selection,
implementation and prioritization of projects, but also for resource allocation and
uniform evaluation. Standardization of project processes enables the reduction
of additional and duplicate work. This also prevents misunderstandings caused by
ambiguity.

• Project Management Office (PMO): Finally, the establishment of a project

office as an organizational unit in the project structure, as it is also used in other
project forms, is of central importance for multi-project coordination. The PMO
acts as an instance between project and team leaders, decision-makers and
controllers and thus supports professional multi-project management. Critical
human, time or financial resources are planned centrally via the PMO in order
to efficiently manage the multi-project environment. Standards and methods,
management, progress monitoring and, for example, data quality assurance should
also be created centralized. In addition to resource conflicts and project delays,
cost and expense overruns can thus be identified and reduced at an early stage.
Analog to portfolio management, it is recommended to monitor all projects
in MPM by means of continuous monitoring in order to be able to react as
quickly as possible to changes - this is also a task of PMO. It is not advisable
to focus solely on the typical success criteria of time and budget, since these
factors alone have little significance for the benefit of the project result.
Regular reviews show whether the originally planned benefit is still feasible or
whether a realignment is required. This also includes terminating critical, unsuccessful
or obsolete projects at the right time. In this way, capacities can be gained for all
further projects.

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• Synergies: It is necessary to use the synergies that arise within the scope of the
MPM. Experience from the most diverse projects and knowledge of employees can
be made available through suitable knowledge and information management. An
appropriate knowledge sharing system can support this process. In this way, the
individual projects can benefit from each other. An appropriate communication plan
helps to create transparency in cross-project dependencies.

If the success factors listed are considered within the framework of multi-project
management, the advantages of project diversity can be effectively exploited.

MPM Tools
Many tools and methods are used equally in the portfolio, program and project
management environment and differ primarily from the applied perspective. A transfer
can usually be made between the disciplines without any problems. For illustration
purposes, two methods are presented which are used in MPM.

1. Portfolio-Techniques
For the illustration and prioritization of projects
the so-called portfolio technique can be used
as an example. In general, this very flexible
technology is used for the evaluation of similar
objects (e.g. projects). To this end, one should
first be clear about which superior common goals
are to be achieved. These in turn are used to
determine criteria and an appropriate weighting.
These success criteria can, for example, lie in
Fig. 2: Weighted criteria for success
customer benefit (Fig. 2).

The criteria are then evaluated in a table on a predefined point scale for each
project and multiplied by the weighting defined at the beginning. The strategic
importance of the individual projects finally results from the summed, weighted
score of the success criteria (see score in Fig. 3). High values for individual projects
illustrate a high strategic value compared to other projects. Such projects are
usually prioritized and carried out with appropriate planning and attention.

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Fig. 3: Evaluation of project alternatives

The next step involves the visualization

of projects according to their scores in a
matrix and other variables such as effort or
profitability (Fig. 4). By calculating a score,
more than two dimensions can be considered
for this two-dimensional representation, as
shown in this example.

2. Dependency Analysis
In traditional project management, Fig. 4: Visualization of the project portfolio
interdependencies between projects are
generally paid less attention. Multi-project management, its overarching perspective and
the possible conflicts between Program objectives, however, have to consider this fact.
Synergies and conflicts can be identified with the dependency or interdependence
analysis, which enables the derivation of suitable recommendations for action.
For this purpose, the projects to be analyzed are entered in the rows and columns of a
matrix. The use of paired comparison shows to what extent a project in a row influences
the project in a column.
A scale is defined for this purpose (e.g. from 0 = no influence to 5 = strong influence).
The type of influence is defined in advance. The sum of the rows result in the value of
the effects of one project on other projects. The sum of the columns shows how much a
project depends on other projects (Fig. 5).

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Fig. 5: Dependency analysis

This results in different types of projects which requires different approaches: Critical
projects are interdependent in both directions: they strongly influence others, but are
also affected by others. Active projects have a great influence on other projects, passive
projects are influenced by other projects. Projects that can be carried out relatively
isolated in this context are characterized by little interaction with other projects.
In general, the task of multi-project management is to ensure appropriate information
flows and regular communication among the projects in order to be able to react in a
timely manner to changes and challenges.

Conclusion
The high relevance of a central coordinating and controlling function across several
projects becomes particularly clear in an environment with scarce resources and
diverging goals. A lack of overview, control and communication across several individual
projects inevitably leads to conflicts, duplication of effort and uncoordinated results;
a lack of focus results in ineffectiveness and inefficiency. No MPM is therefore not an
option.
A multi-project manager is not least a manager who can also contribute to the culture
in the respective projects and thus to the motivation and performance of the project
members. This function is located at a central point and provides orientation in order to
carry on the company‘s direction and orient the project managers towards common goals.

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Our team of project managers can actively support you with their long-time experience
from different and international project environments in successful planning and
implementation of projects. Alternatively, we are also available as sparring partners
and coaches or support you to restructure your project environment with associated
processes and tools tailored to your needs.
We see ourselves as modern consultants who work with their clients in a target- and
relationship-oriented manner. With us you have a dynamic partner by your side who
combines new and proven methods. Contact us for a not binding offer.

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 About the Authors

Corinna Reibchen
CEO | passcon GmbH

Mobile +49 152 04280986

[email protected]

Julia Engel
Manager | passcon GmbH

Mobile +49 172 6503329

[email protected]

Jannik Grantz
Consultant | passcon GmbH

Mobile +49 172 4030459

[email protected]

Further Information
passcon GmbH
Neuer Wall 63 | 20354 Hamburg | Germany
Tel. +49 40 808 093 323 | [email protected]

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