Friday, May 03, 2013

Fallacy of % allocation to multiple projects


I have seen in multiple situations that managers are hesitant about committing their resources to multiple projects. Even if they commit to multiple projects, they (managers and individual resources) go overboard with percent allocation to multiple projects. E.g. if someone is allocated 80% to project A and 20% to project B, people religiously put aside 8 hrs in a week for project B, and they push back on project A if it needed more than 32 hours in that week. Some people put aside few hours every day or one day in a week for project B. These models are ridiculously impractical, and impact all projects. The funniest thing is that 8 hrs and 32 hrs are approximations and some people (not all) use it conveniently based on their preferences. I have not seen anyone literally clocking their time, and it’s not practical either.

It’s expensive to dedicate resources for a single project. We need to come up with a better way to deal with multiple projects situation. The goal is to ensure that all projects are successful.

Let me clarify something. % allocation is mainly used for planning your budgets for accounting needs. We should look at allocation as a decision making framework used to make a right choices. E.g. developers use prioritization guidelines to pick up tasks from project A and project B. Leadership and management team needs to agree on what’s really important for all projects and provide guidance to individuals. Sometimes we need to use common sense to move around schedules to make both projects successful.

Your organization culture and culture within team plays an important role. The right culture will empower individuals to make choices which are in line with business goals. This way we will not spend too much time on analyzing % allocations.