Presented By:
Anamika Saxena
Aritra Sen
Aniruddha Datar

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The Resource Allocation syndrome: the prime challenge of multi-project management
Introduction
In case of Multi-Project Management:
2 research questions:
(1) On a project portfolio-level, are there any operational problems that are general to multi-project management?
(2) If so, which underlying mechanisms of the multi-project setting cause these problems?
Flow of Presentation:
• Two cases were analyzed :
– Signaling systems, contract division
– Telecom operator R&D division
• Common characteristics and differences were observed.
• The common problems and their reasons.
• Solution
Similarities
• Project interdependencies and lack of resources
• Priority setting and resources reallocations
– issues concerning prioritization of projects and the distribution personnel
• Competition between projects
– Due to ambiguous cause–effects relationships, unclear project priorities, and conflicting interests between different projects and departments
• Short term problem solving
– both the steering committees and middle management were occupied with ad hoc problem solving.
– Long-term knowledge development or process improvements, were always subordinated to short-term problem solving in different singular projects.
Consequently, there was a widely spread feeling of inefficiency in both organizations.
• 1. Common multi-project management problem
Resource allocation syndrome.
• This happens when the portfolio management is overwhelmed with issues like:
– Prioritization of projects
– Project personnel transfer
– Search of slack resources.
• This particular problem is common to all multi-project setting independent of project type, size, members or the context.
• But resource re-allocation is not a fruitful solution, it causes more negative effects and forces the management to continuous fire fighting which leads to reactive behavior and short term problem solution.
• 2. The underlying reasons???
1. Causes disturbing resource demand
• Failing project scheduling
• Failing project scheduling
• Centralized resource planning system in both the cases.
• Personnel allocated to different projects w.r.t time schedule and office priorities.
• So, priori planning becomes after-the-fact-prioritization.
• Over commitment
• “Canary cage approach”- by Clark and Wheelwright.
• Without changing the platform technology and any increase in resource availability, more projects are added by management.
2. Causes disturbing resource supply
Management accounting system
• Paying based on engineering hours spent on projects. This is considered as earning to the particular department.
• Department meeting, learning and idle time are considered as costs to the department.
• So incentives for engineering hours only, not for productivity improvement.
• In case of R&D, no available information about personnel and potential efficiency improvement to the management.
• Opportunistic behavior of project managers
• Politics between departments
Conclusion
• It proves that resource allocation syndrome is the common enemy to all multi-project portfolios.
• This problem is not only a planning and scheduling issue, the accounting system, incentive structure, internal politics etc are playing vital role in it.
• Multiple projects handling does not mean to superimpose an extra level of co-ordination on the traditional system and structures, more time and money must be spent on review meetings, new necessary infrastructure .
• The whole system of managerial procedures has to be re-conceptualized from its roots.