Concepts
Portfolio Management Professionals (PfMP) has a key role in understanding and managing risks that arise from intradependencies and interdependencies within or across projects and portfolios. By performing a dependency analysis, portfolio managers can outline the connections between tasks, teams, and resources, and use this information to predict the impacts of potential risk events. Effective dependency analysis enables better decision-making and risk mitigation.
Performing Dependency Analysis: Intradependencies and Interdependencies
Intradependencies are connections between tasks within a single project or program. This could be a sequence of tasks that must be performed in a specific order. For instance, a construction project cannot install windows before the walls are built. Recognizing and managing such intradependencies can aid in scheduling tasks efficiently and predicting possible risks.
Interdependencies, on the other hand, are connections between different projects or programs within a portfolio. For example, a software development company may have separate projects for developing a new product and designing a new website to market that product. If the product development is delayed, the website design project is also likely to be delayed.
A careful dependency analysis would involve mapping out these intra- and interdependencies and identifying potential risk points where delays or other problems could ripple through the portfolio.
Case Study: Performing Dependency Analysis
Let’s consider a case study of a telecommunications company that has a portfolio containing two major projects: a network upgrade and a customer service enhancement program. These projects have an interdependency — the customer service project is dependent on the network upgrade to provide better services.
Here is a simplified version of how they might conduct a dependency analysis:
- Identify tasks for each project: For network upgrade, it might include tasks like finalizing a network design, purchasing equipment, installing and testing the new network. The customer service program might involve tasks such as developing training materials, conducting service workshops, and hiring additional staff.
- Identify dependencies: In this case, the primary interdependency is that the customer service enhancement cannot provide enhanced services until the network upgrade is complete.
- Assess risks: The company must then consider what would happen if there were delays or problems in the network upgrade. This could delay the customer service enhancement or result in it delivering a lower standard of service than anticipated.
- Risk Management Planning: Once potential risks are identified, the next step involves creating a risk management plan. This may involve mitigation strategies such as contingency plans, buffers, resource allocation, etc.
- Monitor: Regularly review and update the risk register to manage identified risks and identify new ones.
Table For Risk Assessment:
Risks | Probability | Impact | Risk Level | Mitigation Plan |
---|---|---|---|---|
Delay in network upgrade | High | High | High | Adding resource buffer in project schedule |
Budget overrun | Medium | High | Medium | Contingency budget planning |
Technical failures | Low | Medium | Low | Provision for technical troubleshooting |
Effective dependency analysis and risk identification are vital to the success of portfolio management. By outlining and managing these dependencies, the company can better coordinate their projects and programs, and make more informed decisions regarding potential sources of risk.
To conclude, balancing the complex interdependencies and intradependencies within a portfolio is a cornerstone of successful portfolio management. It allows PfMPs to implement efficient mitigation plans and sensible decision-making when handling risks. Dependency analysis is indeed a powerful tool for any PfMP.
Answer the Questions in Comment Section
True or False: Dependency analysis is a project management process that identifies and assesses the interdependencies and intradependencies between tasks and resources within or across portfolios.
- Answer: True
Explanation: Dependency analysis is critical in predicting the effects of changes in a project or portfolio. It is used to identify issues that may arise due to the interplay between different tasks and resources.
Which of the following is NOT a form of dependency in project management?
- a) Functional dependency
- b) Temporal dependency
- c) Sequential dependency
- d) Random dependency
Answer: d) Random dependency
Explanation: Random dependency is not a standard form of project dependency. Functional, Temporal, and Sequential dependencies are commonly recognized types.
True or False: The aim of dependency analysis is to avoid risks associated with interdependencies and intradependencies across portfolios.
- Answer: True
Explanation: The main aim of performing dependency analysis is to identify and mitigate the risks associated with various elements of the project portfolios. The process helps in taking decisions that support the overall project objectives.
How can dependency analysis aid in decision-making in portfolio management?
- a) By predicting the outcomes of potential decisions
- b) By understanding the interplay between different tasks
- c) By identifying and monitoring risks
- d) All of the above
Answer: d) All of the above
Explanation: Dependency analysis is used to predict potential outcomes, understand the interplay between different tasks and risks, and help in deciding the best path forward.
Interdependency risks can be offset by careful project sequencing. True or False?
- Answer: True
Explanation: Careful sequencing of projects can prevent the cascading effect of delay or failure from one project to another, thus offsetting interdependency risks.
Which tool is NOT used for conducting dependency analysis?
- a) Network Diagrams
- b) Fishbone Diagrams
- c) Gantt Charts
- d) None of the above
Answer: b) Fishbone Diagrams
Explanation: Fishbone diagrams are used for root cause analysis and not for depicting dependencies.
In a portfolio,______ dependency exists when one project cannot start until another one finishes.
- a) Start-to-finish
- b) Finish-to-start
- c) Start-to-start
- d) Finish-to-finish
Answer: b) Finish-to-start
Explanation: A finish-to-start dependency in a portfolio indicates that one project cannot start until another project finishes.
True or False: Dependency analysis does not support decision-making in project sequencing.
- Answer: False
Explanation: Dependency analysis not only helps in identification and monitoring of project risks but also supports decision making in project sequencing.
Single select: In portfolio management, the risks related to interdependencies and intradependencies of portfolio components are considered __________.
- a) Threats
- b) Opportunities
- c) Both
- d) None
Answer: a) Threats
Explanation: While some risks may represent opportunities, the risks related to interdependencies and intradependencies of portfolio components are typically considered threats to successful portfolio management.
An intradependency within portfolio refers to the dependency of:
- a) Tasks within the same project
- b) Tasks across different projects
- c) Projects within the same portfolio
- d) Portfolios within the same organization
Answer: c) Projects within the same portfolio
Explanation: Intradependency often refers to the relationship and dependencies between the projects within the same portfolio. Interdependency, on the other hand, generally refers to the relationship between portfolios within the organization.
__________ is a visual tool often used for performing dependency analysis in project management.
- a) Gantt Chart
- b) Pareto Chart
- c) Matrix Diagram
- d) Scatter Plot
Answer: a) Gantt Chart
Explanation: Gantt Chart is a popular tool used for displaying dependencies in project or portfolio management. It clearly presents the start and finish dates of various projects/tasks and their dependencies.
True or False: In a start-to-start dependency, the dependent activity cannot finish before the preceding activity starts.
- Answer: False
Explanation: In Start-to-Start (SS) dependency, the dependent activity cannot start until the preceding task starts. Not necessarily finish.
Great insights on dependency analysis! I’ve found that using dependency matrices really helps in visualizing and managing interdependencies. Anyone else using similar tools?
Can anyone recommend specific software for conducting dependency analysis within portfolios?
Thank you for this blog post! It was very helpful.
Dependency analysis is crucial in avoiding risks that can cascade across projects. It’s always better to be proactive.
How often do you all perform dependency analysis? Is it a continuous process or periodic?
Thanks for this detailed post, very informative!
I find it challenging to get buy-in from stakeholders for continuous dependency monitoring. Any tips?
Is there any certification that focuses on dependency analysis other than PfMP?