Resource Management and Capacity Planning Handbook

Book Review

The Resource Management and Capacity Planning Handbook by Jerry Manas is the authoritative source for any organization wanting to improve its resource management practices in the context of portfolio management.  The opening chapter does a great job of providing basic context of resource management and capacity planning and strongly leverages a benchmark study by Appleseed RMCP and expert practitioners in the field.

Organizations continue to struggle with the matter of resource management and “when you consider the constant change, lack of visibility into resource capacity, and no sense of which work is most important, the result is a perfect storm of resource management chaos.” In order to address this problem, Manas systematically covers key topics chapter by chapter that provide relevant help to companies seeking to improve. This book is not about mere theory, but gives literally hundreds of practical points based on corporate reality.

Chapter 2 addresses the road to maturity for improving resource management. I am a big believer in assessing organizational maturity, and Manas does a great job of acknowledging that organizations are on a road to maturity, and through the help of expert practitioners, gives examples of how organizations have matured their resource management processes.  The chapter also addresses the matter of time tracking and does an excellent job of providing a balanced view of why to do it and how to make it work.

In chapter 3, Manas presents a systems approach for diagnosing the root causes of poor resource management. He brings out a number of points that should strike a chord in any organizations. In the latter half of the chapter, he uses systems thinking to deep dive on estimating resources and tasks. The Resource Management and Capacity Planning Handbook demystifies the complexities of resource capacity and demand management and offers clear ways for maximizing your limited resources to drive business growth and sustainability.

Chapter 4 addresses the much needed topic of leadership and organizational change management. I was very pleased to see an entire chapter devoted to these two subjects, because most of the time in portfolio management literature, the emphasis is either on process or tools, with little regard for the people dimension (which is very critical). Much of the chapter is spent on the “50 ways to lead your users”, which is a systematic and structured approach to leading change in the organization.

Chapter 5 addresses key roles for making resource management and capacity planning successful. One of the key takeaways is that successful organizations very often have dedicated resources to support capacity planning exercises. He also takes time explaining the expanding role of the PMO.

Chapter 6 is an enjoyable chapter on strategic alignment and how not to manage resource capacity management like failed military leaders in the past.

Chapter 7 is a great chapter focusing on the human side of resource management. As chapter 4 addressed the people side of leadership and change management, this chapter does an equally good job of explaining why it is important for organizations to pay attention to the human side of project execution and resource productivity when trying to improve resource management.

Chapter 8 expands upon a white paper Manas wrote called “the Capacity Quadrant”. This chapter speaks more frankly about the topic of portfolio management and the need for visibility, prioritization, optimization, and integration of the portfolio. I loved his white paper on the topic and felt that this chapter could have been moved up earlier in the book to provide a clearer view of resource management and capacity planning within the context of project portfolio management.

The final chapter, chapter 9, concludes with industry specific challenges of resource management and capacity planning. This chapter turned out to be the cherry on top as it provided insight into unique challenges faced by different industries. Learning about challenges faced by other industries actually gives greater context to the capacity planning problem and puts readers on the alert for identifying and solving these problems in their own company.

My Conclusion to Resource Management and Capacity Planning

The Resource Management and Capacity Planning Handbook is a must-have book for PMO directors and senior leaders struggling with making the best use of limited resources. Jerry Manas has a great writing style that makes the book easy to read and easy to understand. He also does a fantastic job of blending theory with reality by explaining key topics and then providing numerous tips on how to be more successful with resource management.

Rating: 5 out of 5 stars

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Book Review-A Fish In Your Ear

After reading the first three chapters of A Fish In Your Ear, I stopped reading it for about a year. A lot of time is spent discussing the psychology of decision making, which is not often covered in the PPM literature, but it wasn’t enough to keep my attention. I came back to the book a year later and am glad I did because the best part of the book is in chapters 4-7.

Chapter 4 describes the importance of managing portfolio data, data integrity, and how to collect the right data. He opens up the chapter with a great quote by Bill Gates, “How you gather, manage, and use information will determine if you win or lose.”  Early on Menard mentions that an organization’s central nervous system is its information management system and that an organization is only as effective as its knowledge is good.  After a solid discussion on variables, data integrity, data-quality influencers, and other items he concludes the chapter on data collection. The list of questions in this section is one of the gems of the book. Menard does a great job of highlighting how asking the right questions can uncover the data needs of the organization.

A Fish In Your Ear

Chapter 5 builds on chapter 4 and discusses decision criteria. Having the right information is important, but it is even more important that senior leaders have defined and agreed-upon criteria to discriminate between projects. In the middle of the chapter he gives a great explanation for why having clear objectives is a necessity for making the right decisions. “Once we clarify our objective and can clearly state and compare it to alternatives, it becomes a guiding star helping us navigate to our chosen destination.”

Chapter 6 continues with a good discussion of data visualization. I fully agree that in order to make sense of so much data, it has to be visualized. Not only GenSight, but companies like Tableau are working hard to help users visualize data. The results can be very enlightening. In this chapter, Menard discusses the various elements to help visualize data: color, shapes, size, and matrices. He concludes with visual rules: give people what they want, show what matters, make it rich, make it valid, and have a purpose.

Chapter 7 focuses on portfolio selection. He brings up two burning questions early in the chapter: “will this portfolio deliver our strategic goals?” and “do we have enough appropriate resources to execute the portfolio?” The first question touches the matter of what the organization should do, the second on what they can do. The second half of the chapter provides a great discussion on the matter of portfolio optimization.

In short, chapters 4-7 of A Fish In Your Ear are worth the price of the book and provide some of the best explanations of collecting and utilizing portfolio data that I have read. Rating: 4 out of 5 stars.

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PMI Standard for Portfolio Management Third Edition

The PMI Standard for Portfolio Management Third Edition is the first edition that is worth buying. Having read the 1st and 2nd editions and reviewed the exposure draft for the 2nd and 3rd, PMI has come a long way with the third edition. Nearly all the major components of portfolio management are referenced in this edition (gate reviews being the most significant omission). At the time of this review, I am preparing for the PfMP exam and have read over most of the 3rd edition twice and have studied several sections in detail. It is still not perfect as there are several inconsistencies and items I consider too theoretical (hence the 4 out of 5 star rating), but overall it is a worthy addition to the portfolio management library. 

Chapters 1-2 do a great job of giving an overview of portfolio management with the roles and responsibilities needed to make it work. Chapter 3 also does a pretty good job of creating a structure around which to organize the remaining chapters by setting each of the five knowledge areas (Portfolio Strategic Management, Portfolio Governance Management, Portfolio Performance Management, Portfolio Communication Management, and Portfolio Risk Management) in a table with the three process groups (Defining, Aligning, and Authorizing/Controlling). Chapters 4-5 in my opinion are the weakest parts in the book. There are some great additions such as the portfolio strategic plan and the portfolio roadmap, but some of the strategic processes seem out of order (e.g. prioritizing projects before they have been evaluated by a governance board) or are omitted (e.g. gate reviews). In addition, the Portfolio Charter deliverable is just too theoretical for most organizations to adopt. Chapter 6 does a good job of addressing resource capacity management and benefits realization (two big omissions in previous editions). I found chapter 7 to be very useful related to portfolio communication and I got fresh insight on portfolio risk management from chapter 8.

In short, the PMI Standard for Portfolio Management Third Edition is worth buying and offers great information for portfolio management practitioners.

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Book Review – IT Governance

Book review of IT Governance by Peter Weill and Jeanne Ross (Harvard Business School Publishing, 2004)

IT Governance


“IT governance is the most important factor in generating business value from IT.”

“Good governance design allows enterprises to deliver superior results on their IT investments.”

“Effective IT governance is the single most important predictor of the value an organization generates from IT”

The quotes above should draw attention to the importance of well defined and well communicated IT governance. Although not exciting, IT governance helps generate greater value from IT. The authors define governance as “specifying the decision rights and accountability framework to encourage desirable behavior in using IT.” “Governance determines who makes the decisions. Management is the process of making and implementing the decisions.”

Much of the book is spent developing two questions. The first question focuses on the types of decisions that must be made to ensure effective management and use of IT. The authors answer this question by describing five key areas of IT governance that require decision making:

IT Principles—a related set of high level statements about how IT is used in the business.

IT Architecture—the organizing logic for data, applications, and infrastructure, captured in a set of policies, relationships, and technical choices to achieve desired business and technical standardization and integration.

IT infrastructure—determining shared and enabling services.

Business Application needs—specifying the business need for purchased or intentionally developed IT applications.

IT Investment and Prioritization—choosing which initiatives to fund and how much to spend.

The second question addressed in the book focuses on who makes these decisions. The authors address this question by describing six archetypes (decision-making styles) used by enterprises in IT decision making:

Business Monarchy—top managers

IT Monarchy—IT specialists

Feudal—each business unit making independent decisions

Federal—combination of the corporate center and the business units with or without IT people involved

IT Duopoly—IT group and one other group (for example, top management or business unit leaders)

Anarchy—isolated individual or small group decision making

Much research and analysis was made by the authors in connecting the decisions being made with the right decision makers. They conducted an extensive survey of over 250 companies across 23 counties. Based on the results, they concluded that the best performers conducted IT governance differently from the low performers and drew conclusions of what distinguished the two groups.


IT Governance was very useful to me personally as it is the most thorough work on the topic that I have read and provided a lot of good insight into how to make governance work. Project portfolio management (PPM) is tightly linked with IT governance, “Portfolio management without governance is an empty concept” (Datz). In order to make portfolio management processes successful a proper governance structure must be in place. Project governance is very much about the types of decisions being made and the people who participate in the decision making. The Project Management Institute’s Standard for Portfolio Management 2nd Edition briefly discussed governance but did not go into the same level of detail as this book. Another well respected PPM expert, James Pennypacker, developed a portfolio management maturity model which identifies governance as a key criteria. This book strongly supplements that maturity model.

This book enlarged my view of IT governance particularly with the five key areas of: IT Principles, IT Architecture, IT infrastructure, Business Application Needs, IT Investment and Prioritization. PPM is very focused on the last area of investment and prioritization, but the four preceding areas lead up to the point of making the investment decisions. It was very clear that a governance structure needs to be set up to account for all five areas.

This book also strengthened my view concerning the people involved with governance. I liked the quote stating, “IT governance is a senior management responsibility. If IT is not generating value, senior management should first examine its IT governance practices—who makes decisions and how the decision makers are accountable.” Governance cannot be delegated to someone else. The authors made it very clear that one of the critical success factors of IT governance is the involvement with senior/executive leadership. Without the adequate leadership, solid governance is likely to fail. In addition, “If business leaders do not assume responsibility for converting [IT capabilities] into value, the risk of failure is high. With high risk comes the likelihood of frustrated business leaders who often respond by replacing the IT leadership or abdicating further by outsourcing the whole ‘IT problem’”. Here the point was made that outsourcing IT may come out of a frustration by the business leaders with IT. Yet, the source of the frustration may very well lie in the poor governance structures established.

Another striking point that affects my current work is the need for improved communication with senior management. Governance communication cannot happen too much. The authors found that “the best predictor of IT governance performance is the percentage of managers in leadership positions who can accurately describe IT governance.” They found that most senior managers could not explain their own governance processes, which would explain why their IT governance doesn’t work properly. These points reinforce my need to continually educate senior management and communicate both the process and the results of our governance procedures so that we have greater project success.

The book was reasonably well written. Although the content was great, I felt that the case studies and diagrams were really lacking. I normally like case studies, but I do not feel that the cases used in this book added any value to me. Many of the diagrams could have also been explained better. As far as improvements, the topic of project portfolio management was barely discussed and is quite important in terms of executing strategic change within an organization. I overlooked it because of the book’s value to the topic of governance, but I definitely feel the authors should have spent more time on this topic. Otherwise, this is a great book for a topic that is overlooked but very necessary. I would definitely recommend it to anyone that is involved with portfolio management or any part of IT governance.

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Book Review – Mastering Project Portfolio Management

Mastering Project Portfolio Management is focused on helping organizations master the decision making science of project portfolio management and is best suited for mature organizations wanting to perform advanced portfolio management. It is also great for MBA or Executive MBA students wanting to learn how to develop an organizational data-driven decision making process. Mastering Project Portfolio Management is perhaps the strongest book on the market related to the decision-making science of PPM; the authors state in chapter 1 that “the essence of PPM is reasoned decision making”.  The authors arranged for readers to access Expert Choice, a leading decision making software tool, and include significant material on how to utilize the software to make better portfolio management decisions. In addition, each chapter of the book is based on a portfolio management framework they developed, which helps provide structure for the material.

Chapter 1 provides a great overview of PPM. In one example, the authors compare portfolio management with a ship captain ordering course corrections to the helmsman. “As strategic plans change, the portfolio must change, requiring the portfolio process to be adaptable, flexible, and responsive to rapidly adjust its limited resources in an ever changing global market place.” Chapter 2 covers four key steps for establishing the strategic foundation for solid portfolio management (defining the mission, developing the vision, establishing goals, determining objectives).

Mastering Project Portfolio Management

In my mind, chapters 3 and 4 are the real heart of the book as it goes into detail on the importance of ratio scale measurements and using the Analytical Hierarchy Process (AHP) to prioritizing objectives and projects. “The ability to structure decisions, measure options, and synthesize the measurements to derive priorities is critical to implementing an effective PPM process and in selecting optimal portfolios.” This book provides the clearest explanation on why ratio scale measurements should be used and how AHP enhances portfolio decision making.

Chapters 5-9 continue to develop the PPM framework for identifying, evaluating, and selecting a project portfolio. Chapters 10 focuses on portfolio governance and chapter 11 covers the implementation and evaluation phases by discussing how to utilize earned value management (EVM) to evaluate performance. For organizations ready for advanced portfolio management, Mastering Project Portfolio Management is worth looking at.

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Checklists Plus Discipline Improves Portfolio Quality and Efficiency

Atul Gawande, a well-respected surgeon, is the author of The Checklist Manifesto: How To Get Things Done Right. The book is focused on using checklists as a means of improving quality and reducing defects in such areas as hospitals, businesses, construction projects, airplane flights, etc. Moreover, a number of gripping stories help to convince the reader of the benefits of using checklists across these varied disciplines. The entire book is fascinating and deliberate on its message of using checklists, but the book takes a very interesting turn in chapter eight to see the application of checklists in the business world.

In short, checklists=discipline. The checklist helps business professionals be as smart as possible and helps teams improve their outcomes without any increase in skill (p. 168). I love these quotes because it shows that anyone can improve their outcomes today through the use of a simple tool. In the age of complexity, simple tools like a checklist can give someone an advantage over people who think they can remember all the critical details all the time. Using a checklist doesn’t mean that someone no longer has to think about basic tasks, rather, it marks the most critical steps (steps that should never be missed) so that more time can be devoted to the critical thinking, based on experience and training.  Sadly, many surgeons (and business professionals) have ignored the checklist because they want to ‘be in control’ and not bound by something that appears to be petty.

Chapter eight also highlighted the experience of three investors who used checklists when evaluating companies in which to invest. They noted that the checklists improved their efficiency, allowing them to comb through far more prospects because by the third day it would be very clear which companies were worth continued evaluation and which ones should be dropped. This compares very well with project portfolio management and the benefits of using a checklist at gate reviews. When due diligence is performed, misaligned and doomed projects can be caught earlier on so that critical resources can be put on winning projects. If organizations are disciplined enough to learn from past mistakes and capture the potential pitfalls of projects, they could significantly increase the value delivered through the portfolio of projects. To repeat, this requires discipline.

In my experience as a portfolio analyst, I have seen checklists used in various ways:

1) Project deliverable checklists to ensure that the right deliverables are produced at the right time.
2) Decision-Gate content check lists to ensure that the right information is communicated during gate reviews.
3) Implementation checklists to ensure that all the necessary steps have been taken (e.g. training, documentation, support) in order to implement the project solution in production (operations)

Here is the link to the surgical checklist produced by the World Health Organization discussed in the book:

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Book Review—Death by Meetings by Patrick Lencioni Part 2

This post is a continuation of the previous book report on Patrick Lencioni’s book, Death by Meetings. He recommended four types of meetings, three of which are briefly discusses in relation to portfolio management.

2) Weekly tactical meeting: these meetings are focused on tactical issues of immediate concern. There should be discipline to this meeting and structural consistency. A quick lightning round allows everyone to share their top two or three priorities for the week. The next component is a review of key metrics without lengthy discussion. The third component is a real-time agenda, not one created prior to the meeting. Disciplined spontaneity is important for those leading the meetings who can allow the meeting to shape itself based on the most urgent matters.

PPM application: this meeting would allow project and program managers to provide quick status and then address current issues affecting their projects.

3) Monthly strategic meetings: allows managers to wrestle with, analyze, and debate important issues that affect the organization. It is important that they occur regularly so that it serves as a parking lot for strategic matters that get brought up in other meetings. “This gives executives confidence to table critical issues knowing that they will eventually be addressed.”

PPM application: These meetings are particularly relevant to the portfolio management team to actually discuss current strategies and provides time for them to develop clearer strategic criteria. These meetings could also be used for longer-range phasing plans for strategic completion.

4) Quarterly off-site: “provides executives an opportunity to regularly step away from the daily, weekly, even monthly issues that occupy their attention, so that they can review the business in a more holistic manner”. These off-sites should include a comprehensive strategy review, team review, personnel review, and even a competitive industry review.

PPM application: this get away allows the portfolio management team adequate time to consider the strategic direction of the organization and develop future goals.

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Book Review—Death by Meetings by Patrick Lencioni Part 1

Patrick Lencioni’s book, Death by Meetings, is a great book and relevant to the PPM community.

“Meetings are boring because they lack drama”
“Meetings are ineffective because they lack contextual structure”

Problem #1—Lack of drama

Meetings are interactive and relevant to our lives, yet they usually lack some amount of drama. “When a group of intelligent people come together to talk about issues that matter, it is both natural and productive for disagreement to occur. Resolving these issues is what makes a meeting productive, engaging, and fun.”

PPM application: portfolio management is both fun and exciting because it is the mechanism for accomplishing strategic initiatives. There are always ongoing changes that requires participants to be engaged, strategies to be clarified, priorities to be established and communicated, and projects to be executed. Keeping this view in front of the portfolio management team and project managers will help keep everyone focused.

Problem #2—Lack of Contextual Structure

The basic problem is that too many things are crammed into meetings and often frustrate many people for different reasons. Tactical near-term decisions may get added to the same agenda as longer-term strategic items. Nothing gets the attention it deserves, people don’t get to weigh in sufficiently and/or are not adequately prepared. The problem isn’t to necessarily spend more time in meetings as it is to break down the content for the appropriate meeting. To resolve the contextual structure issue, Lencioni advocates four types of meetings:

1) The daily check-in: this may be relevant for a leadership team or another group that does work closely together. It’s intent is to provide everyone a quick overview of the days events in five minutes or less (approximately).

PPM application: for organizations that are project focused, having such a meeting may help project managers and key team members stay on the same page with each other.

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