This document discusses how mapping project interdependencies can improve decision making for complex project portfolios. It provides examples of tough questions that can be answered through visualizing relationships between projects, such as how optimizing one project's funding may impact others. Research is cited showing mapping interdependencies leads to higher quality decisions than traditional lists or matrices. The document demonstrates how a visual map can help choose which projects to cut from a portfolio to reduce spending.

1. The
tough
questions
you
face
• We
map
the
interdependencies
in
large
complex
portfolios
to
enable
better
decision
making.
• Tough
questions
we
answer:
– Need
to
optimize
project
spend
-­‐
how
will
this
impact
other
projects?
– A
large
project
is
struggling
–
what
risk
does
that
represent
for
the
portfolio?
– Our
project
managers
aren’t
seeing
the
‘big
picture’
–
how
do
we
communicate
interdependencies?
• How
do
we
improve
decision
quality?
– See
example
below…
www.optimice.com.au
1

2. Scenario
–
“Cut
10%
off
the
$16mill
project
portfolio
investment!”
IDEA / PROJECT
Investment
C (thousands)
NPV (thousands)
NPV/C
Strategic fit
is dependent
upon:
A
$
300.00
$
1,200.00
4.0
9
B, I, K, O
B
$
240.00
$
466.00
1.9
8
A, I, K, O
C
$
100.00
$
367.00
3.7
6
J, W, Y
D
$
120.00
$
330.00
2.8
6
L, V
E
$
700.00
$
2,770.00
4.0
7
-
F
$
800.00
$
1,560.00
2.0
8
U
G
$
872.00
$
1,500.00
1.7
3
N, X
H
$
50.00
$
400.00
8.0
7
P
I
$
1,400.00
$
3,500.00
2.5
5
A, O
J
$
2,500.00
$
4,000.00
1.6
7
W, Y
K
$
400.00
$
500.00
1.3
5
A, B, I, O
-
L
$
985.00
$
680.00
0.7
9
M
$
350.00
$
500.00
1.4
4
-
N
$
950.00
$
1,450.00
1.5
6
G, K, U, W, X
O
$
232.00
$
1,600.00
6.9
7
A, B, I, K
P
$
554.00
$
1,600.00
2.9
8
F
Q
$
400.00
$
2,650.00
6.6
6
W, X
R
$
562.00
$
3,000.00
5.3
9
P
S
$
391.00
$
120.00
0.3
7
D, L, V
E, K, M, U, Z
T
$
160.00
$
450.00
2.8
9
U
$
400.00
$
2,000.00
5.0
7
-
V
$
843.00
$
1,900.00
2.3
6
D, L
W
$
620.00
$
1,900.00
3.1
7
A, J, X
X
$
720.00
$
46.00
0.1
7
-
Y
$
871.00
$
676.00
0.8
7
Traditional
list:
Very
hard
to
quickly
understand
impacts
and
dependencies.
Which
project(s)
would
you
choose?
…then
look
at
next
slide…
C, W
www.optimice.com.au
2

3. Visualising
project
interdependencies
Mapping
allows
decision
makers
to
see
connections
and
thus
impacts
on
projects.
Highlighted
projects
will
not
impact
the
portfolio
if
removed.
Arrows
point
from
a
dependent
project
to
a
project
that
is
depended
upon
Strategic
Importance
Low
High
Circle
Size
=
Initial
Investment
www.optimice.com.au
3

4. Map
=
Decision
Quality
• 264
separate
experiments
conducted
by
University
of
Technology
Sydney
has
proven
that:
“The
use
of
[Visual
Portfolio
Maps]
is
correlated
with
the
highest
levels
of
decision
quality“
Killen,
C,
2013,
“Visualizations
of
project
interdependencies
for
portfolio
decision
making:
Evaluation
through
decision
experiments”,
Decision
Sciences
Institute
Annual
Conference,
Baltimore
Maryland
Map
List
www.optimice.com.au
Matrix
4

5. Project
meta-­‐data
• Only
a
few
simple
data
points
provide
deep
insights
into
the
portfolio
structure
About
each
project
Strategic
Fit
• High
• Medium
• Low
Budget
• $
• NPV
• Etc.
Benefit
• High
• Medium
• Low
About
each
dependency
Importance
• Critical
• Important
• Minor
Risk
• High
• Medium
• Low
Type
• Outcome
• Resource
• Etc.
Project
A
Project
A
Project
B
www.optimice.com.au
5

6. Explore
online
• Explore
example
online
map
at:
www.optimice.com.au/
projectinterdependencies.
php
See
example:
www.optimice.com.au/projectinterdependencies.php
www.optimice.com.au
6

7. More
information
• Contact
Cai
Kjaer
for
a
confidential
discussion
– cai.kjaer@optimice.com.au
or
+61
411
569
594
– Visit
www.optimice.com.au/projectinterdependencies.php.
• Where
does
this
come
from?
– Optimice
and
University
of
Technology
Sydney
(Australia)
have
researched
the
power
of
visualising
project
interdependencies
over
a
2
year
period.
– Winner:
Best
Technical
Paper
at
the
APMI
conference
in
2010
– International
recognition:
Published
in
the
International
Journal
of
Project
Management
in
2012.
– Results
of
264
experiments
demonstrates
that
visual
maps
of
interdependencies
are
far
more
effective
than
traditional
methods.
These
exciting
results
are
presented
at
the
Decision
Sciences
Institute's
annual
conference
in
November
2013.
www.optimice.com.au
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