Multi-project management: Definition + 7 success factors

In today's business world, project-oriented companies must simultaneously pursue their business goals without interfering with day-to-day operations. This is often done through parallel projects to diversify the business, gain competitive advantages and adapt quickly to market changes. Multi-project management is the method of choice here. However, many companies have false expectations about this method and do not always achieve the desired success.

In this article, you will learn how to overcome the challenges of multi-project management and your Complete projects successfully.

Definition: What is multi-project management?

Multi-project management is used in Gabler Business Encyclopedia Described as:

“Selection, planning, management and monitoring of a company's entire project landscape.”

With multi-project management, you aim to effectively complete several projects running in parallel, taking into account existing resources such as employees, financial resources and equipment. This requires a clear concept and appropriate coordination. The Approach is similar to Classic Project Management: Clearly Formulated Goals, Available Budget and Responsible Project manager. However, these criteria are particularly important when several projects are being implemented at the same time. The biggest challenge is implementing or prioritizing projects in parallel without losing track of things.

Decisive questions are therefore: How do you effectively share, manage and manage your capacities? How is your team integrated and involved in relevant functions?

Strategic multi-project management

Strategic multi-project management is an approach in which companies select, coordinate and strategically align projects over the long term in order to achieve their overall goals and consolidate the strategic direction of the company.

Objective methodsSelection of projects with the highest benefitEvaluation of projects according to attractiveness and risk prioritization of current projectsProject selection based on strategic importance and urgencyEnsuring a balanced project portfolio with regard to risk balance comparison of projects based on defined criteriesShowing the effects of plan changesImpact matrix of projects in combination compliance with project governance correlation analysis

Operational multi-project management

Operational multi-project management aims at effective management of individual projects. This involves the optimal distribution of resources, ensuring smooth communication between teams and continuous monitoring of project progress.

Objectives Possible MethodsEfficient use of resourcesEvaluation of projects according to strategic goals and resources

Optimal allocation of resources

Timely completion of projectsPlanning schedules & budgets taking into account dependenciesCompliance with quality standardsStatus reporting and progress trackingRisk management planning of schedules & budgets taking dependencies into account

Conflict escalation management

Cooperation between project team & stakeholdersStatus reporting and progress tracking

Conflict escalation management

Multi-project management: These challenges must be overcome

As an experienced project manager, you know the challenge of having to manage many projects with consistent resources. The fact is: No project can be planned 100 percent. This uncertainty poses the following challenges:

Multitasking — Not suitable for every team

Multi-project management is organizational multitasking whose negative effects, such as increased cognitive energy expenditure, loss of time and reduced productivity, have been known for a long time. These changes impair short-term memory and can Productivity losses of up to 40 percent cause. Research shows that similar negative effects can also occur at organizational level, such as increased error rates, longer waiting times and permanent stress that leads to burnout Can lead with project managers. Efficient multi-project management should therefore aim to minimize context changes in order to reduce these negative effects.

Urgency

When managing multiple projects, many tend to prioritize time-critical tasks, although Not all equally important or effective Are. Some tasks are important but not urgent, while others are urgent but less relevant. Often overwhelmed by the volume of tasks, project managers frequently give priority to urgent but less important tasks, a phenomenon known as Mere Urgency Effect. A central goal in multi-project management should therefore be carefully weigh up importance, urgency and effects.

Deadlines — hinder productivity

Deadlines are often essential to coordinate work phases in multi-project management and to manage the availability of highly specialized team members, as is the case with large construction projects or in software development. While necessary, deadlines can also reduce productivity. An investigation of Oxford University Shows that remote deadlines give the impression that a task is more difficult and time-consuming than it actually is. This phenomenon is described by Parkinson's laws, according to which “Work expands as time is available”, which often results in teams starting just before the deadline.

Rigid Plans — Blow Up the Budget

According to a survey by Project Management Institute (PMI) in 2021, only 50 percent of projects in Europe were completed on time, 57 percent remained within budget, and 40 percent failed completely, leading to budget losses. A major reason for this is scope creep, which Gradual expansion of the project scope during the process Without taking into account the impact on time, budget and quality. Additional requirements or changes, often due to new expectations or strategic adjustments, make the problem in multi-project management even more complex. Nevertheless, projects are often planned in inflexible, long-term time frames that do not take such adjustments into account.

Peanut Butter Approach

An example illustrates the facts: A company needs an artificial intelligence specialist for several projects, but there is only one qualified person. In organizations with unclear prioritization and high volumes of work, this person is often spread over too many projects. This multitasking not only has negative effects, but also results in Hardly any progress has been made Become. This procedure, known in America as the Peanut Butter Approach, describes the Distributing resources too thinly. A clear prioritization of responsibilities is therefore crucial in multi-project management.

Multi-project management with ZEP: More overview for your projects!

With ZEP, you retain control in multi-project management and can manage several projects at the same time. Our software for Project time recording Enables efficient administration, strategic resource planning and clear prioritization to avoid congestion. Transparency is ensured by the Ticketsystem Created, with which projects can be divided into prioritizable individual tasks.

7 success factors for efficient multi-project management

As an experienced project manager, you are probably familiar with all of the challenges mentioned above. And I'm sure you've tried to solve the problems that arise as a result. Today, we have easy access to multi-project management tools that offer a variety of ways to address these issues. Learn the seven most successful multi-project management methods that can help you Plan projects successfully, can carry out and complete:.

1. Maintain an overview

Maintain control over numerous projects running in parallel. With a central database, you can generate a wide range of informative reports for well-founded decisions. In the best case scenario, use software such as ZEP, which, in addition to a central project list and an overview of resources, i.e. offers the option of exporting status reports and budget planning. With a uniform solution for your Project Management You have the option to track all information down to the smallest detail, from the aggregated overview. With ZEP, you can start with less functionality and add additional modules as needed.

2. Use software

To ensure efficient management of your multi-project management environment, your projects must meet specific structural and task standards. In addition, it is necessary to define processes according to which your projects are to be planned and managed. In ZEP, you can do that Additional module Planning Hours Use.

Since decisions can have effects across projects, your projects should be managed at the same pace and with as up-to-date data as possible. As a project manager, you need to know exactly what to do, when and how. One Project time recording software How ZEP ensures professional management of your multi-project management with suitable processes and high data quality.

3. Prioritize correctly

Your aim should be to implement appropriate administrative and control costs in line with the project scope. So make sure that the most resources are actually used for the most important projects (keyword:

4. Plan strategically

Strategic resource planning is about making sure you have people with the skills you need ahead of time. In addition, you must ensure that strategically important projects can be implemented at the right time with qualified employees. Otherwise, your projects cannot be completed on time due to insufficient resources. This increases your project costs unnecessarily and results in dissatisfied customers in the end. With the ZEP module resource planning Always keep an eye on the workload of your employees and can immediately see which tasks are next.

5. Tactical resource planning

Tactical resource planning focuses on ensuring that the right people are available at the right time for specific projects. This is crucial to complete projects on time and to ensure customer satisfaction. A lack of resources can lead to delays and increase project costs. Modern tools such as the ZEP Resource Planning module make it possible to monitor employee utilization and identify bottlenecks at an early stage in order to take timely action and ensure project success.

6. Create transparency

In multi-project management, new requirements can constantly arise, for example with regard to significant milestones in a project. These requirements are distributed by management to the corresponding projects and your task as project manager is to ensure implementation. Ensure transparency so that all project participants are and remain at the same level of knowledge at all times. With ZEP Ticketsystem You have the option of dividing your projects into prioritizable individual tasks for your employees. In this way, you avoid overwork and at the same time create transparency in terms of responsibilities.

7. Get feedback

In a multi-project management environment, numerous stakeholders are involved in various projects. There is a high need for content feedback here. Your stakeholders may feel the need to bring their perspective to different places in order to have a sense of control. As a project manager, as well as your team, you may want to ensure that no one is ignored and protect yourself against criticism. Meetings are often convened for this purpose or email mailing lists with long conversations and numerous recipients are maintained. This leads to one thing in particular: project delays. To counteract this, learn how to create a Constructive feedback culture Be able to establish in your company.

These are the benefits of multi-project management at a glance!

Multi-project management offers companies the opportunity to manage and monitor multiple projects at the same time. As a result, resources can be used more efficiently, risks can be better managed and productivity can be increased. These are the most important benefits of multi-project management:

🌿 Efficient use of resourcesBy managing several projects at the same time, resources can be optimally distributed and bottlenecks avoided. ⚠️ Improved risk monitoring risks are identified early on and can be managed more effectively through central coordination. 🔄 Higher flexibilityManaging multiple projects enables a faster response to changes and adjustments to new circumstances. 🗣️ Better CommunicationCentral control ensures a better flow of information and clear communication between project teams. 💰 Cost SavingsBy Bundling Projects, Be reduced As shared resources and synergies can be used. 🔍 More TransparencyMulti-Project Management provides a better overview of the progress and performance of all projects, which enables informed decision-making 🚀 Increased ProductivityCoordinated Collaboration and Sharing of Best Practices help to increase overall productivity.

Conclusion

Multi-project management means exploiting potential to successfully complete projects. As a software for project time recording, ZEP helps you to ensure your competitiveness in the long term. Not using ZEP yet? You can use our tool Test 30 days free of charge & without obligation.

If you are already one of the more than 1,800 ZEP users and are interested in one of our additional modules that you have not used before, you can Contact our support team Or you can use the option of activating the desired module once in the self-service tool for a free test for 30 days.