Building and Using A Practical Portfolio Benefits-Realization Plan with MS Project (Part - 1)

Bugs smell, features tell, benefits sell.

-    From the book, I Want To Be A PfMP, the Plain and Simple Way

Portfolios fundamentally exist in an organization to achieve organizational strategies and objectives. One or more strategic objectives of an organization flow into the portfolio strategic plan. After the identification, categorization, evaluation, prioritization, and authorization of portfolio components, their execution begins and benefits are delivered. This, which in turn, helps in achieving the organization’s strategic objectives.

But then following questions come -up:

• How do you ensure strategies are fulfilled in order to meet the strategic goals?
• How do you find out that the portfolio components authorized earlier are actually delivering the benefits?
• How to plan for, measure, and monitor the organization’s (business) value achievement?

The answers to above questions lie with portfolio benefits management. The Standard for Portfolio Management (SPfM®), clubs benefit management under Portfolio Performance Management. Benefits and their subsequent realization are extremely important in portfolio management. And as the opening quote tells, it's only benefit that sells! 

In this article, we will understand portfolio benefits, the benefits dependency map, and above all, how to build a benefits-realization plan with the MS Project software tool. The portfolio benefits-realization plan will be based on the template provided by SPfM from Project Management Institute (PMI®).

This series: Part – 2

Portfolio Benefits

Portfolio benefits are first identified during the definition stage of the portfolio and documented in the portfolio strategic plan (PfSP). These benefits will flow into the Portfolio Performance Management Plan (PfPMP) and are documented in the Benefits Realization section of the PfPMP. 

Benefits can be qualitative or quantitative, tangible or intangible, financial or non-financial, short- or long-term. Irrespective of the type of portfolio benefits, they need to be clearly defined and documented in the PfPMP.

The portfolio benefits actually come from the portfolio components. These benefits are aggregated at the portfolio level. The benefits in turn help achieve the strategic objectives of the organization. To understand it graphically, you need to be aware of another fundamental concept, the benefits dependency map (BDM).

Benefits Dependency Map

A simplified benefits dependency map is shown below.  

As shown in the above BDM, moving from left to right of the map, we have organizational vision (and mission) translated to strategic objectives. These objectives, in turn, translate to benefits, and then to outcome to outputs (or results). In other words, moving from left to right we are asking – “How the strategic objectives are finally executed to give results/outcomes/output”? On the other hand, moving from right to left we are asking – “Why this portfolio component (e.g., project), which is giving this result (or service or product) is undertaken in the first place?” 

As you can see, we are moving from strategic objectives at the level of portfolio to benefits at the level of portfolio components. With these fundamentals, let’s see how to build the benefits-realization plan. 

A Practical Benefits-realization plan

We will take a step-by-step approach to build the Portfolio Benefits-realization plan with MS Project software. Along the way, we will do a few customizations and apply them to the software tool. 

Step – 1: Add A ‘Portfolio’ Custom Field 

To add a custom fieldle, go to Gantt Chart Tools > Format tab > Columns group > Custom Fields command and add a Text custom field “Portfolio”. Under this custom field we will have various portfolios undertaken by the portfolio manager. 

Next, add three portfolios under this custom field – Portfolio I, Portfolio II and Portfolio III. For each portfolio we will have a number of components and we will add them shortly.  

Step – 2: Rename ‘Task Name’ Column to ‘Portfolio Component’ *** UPIDATED ***

Before adding the components, rename the Task Name the column to Portfolio Components. This can be done by right clicking on the Task Name column and choosing Field Settings option.

When you have both the Portfolio custom field showing having the above three portfolios and the renamed column of Portfolio Component, you will have the following figure. 

For the time being, do not worry about the start and finish dates for the portfolios. Abecause after we add the portfolio components and strategic objectives, we will get those dates. 

Step – 3: Add the Portfolio Components and Strategic Objectives

In our next step, we will add the portfolio components and the strategic business objectives, which will be met when the benefits delivered by portfolio components are realized. 

To add the portfolio components, fyou just have to fill -up the line entries under the Portfolio Components column with respective component projects, programs, operations, and strategic objectives. This is very much like adding the task names in a normal MS Project plan. After you add the entries, you will have the following plan.    

This is the first -cut of our Portfolio Benefits-Rrealization Pplan, which we are going to refine as we proceed. As shown above, for Portfolio I:

• There are three component projects - Project 1, Project 2, and Project 3 - and also Component Program 1.
• Organizational Strategy and Objective I will succeed the completion of the project and program components. 

Similarly, we have components, including operations, for other portfolios such as Portfolio II and Portfolio III in the evolving plan. 

Step – 4 (mini one): Ensure Proper Timescale

Did you notice on the right side of the above figure that the timescale has changed?! This is important because, without proper timescale adjustment, you won’t be able to visualize the long running portfolio components such as a program or a long-term project. 

In our case, I’ve used the below timescale customization.  

As shown above, we have:

• Two tiers – Middle Tier and Bottom Tier.
• For the middle tier, Units used is Years, whereas for the Bottom Tier, Units used is Quarter.
• The Preview is shown belowbelow, and the exact same view is available in the previous figure.

Step – 5: Build the Dependencies

Now that we have the right time-scaling, we must ensure the dependencies between the portfolio components and the strategic objectives which will be met when they are complete. 

After you add the dependencies, the view will come as shown below. For an in-depthTo understanding of know in-details about dependencies, lead, and lag, , you can use this course.

 

Interpreting the above figure and dependencies, one can say:

• Component Program 1 has finish-to-finish (FF) dependency with Component Project 1 and Component Project 2. 
• Organizational Strategy and Objective I has FF dependency with Component Project 3 and Component Program 1. 
• Organizational Strategy and Objective I also has FF dependency with Component Project 3 and Component Program 1.

In other words, you can say that Organizational Strategy and Objective I will be achieved when component Project 1, Project 2, Project 3, and Program 1 are completed and associated benefits are realized. This is important to understand.

Similarly, as you can see in the above plan, other organizational strategic objectives are associated with other portfolio component projects, programs,  and operations.

In the next part, we will follow few more steps such as seggregating the components based on their classes or categories. We will conclude with a video demonstration.

This series: Part – 2

References

[1] NEW Book - I Want To Be A PfMP, The Plain and Simple Way, by Satya Narayan Dash

[2] Article - Strategic Alignment of Project (Portfolio Components), by Satya Narayan Dash

[3] Article – Benefits Realization Management for Projects, by Satya Narayan Dash

Practical Risk Management with Primavera Risk Analysis – Working with An Oil and Gas Industry Project

The Practical RMP with Primavera Risk Analysis course is used by risk management practitioners around the world, including PhD candidates pursuing their doctorates. Professionals from construction, software, EPC (engineering, procurement and construction), space and other industries use this course.

Currently, I received questions on its usage on in the oil and gas (O&G) industry. The question is on practical applicability in that industry. The Practical RMP course is industry transparent and uses its own project and builds-up step-by-step from risk planning, identification to risk monitoring and tracking. Along with the theory, you will learn to do risk management in a practical, hands-on manner. The later part, hands-on, is crucial. Above all, you can apply your learning in any industry.

Coming to the Oil and Gas industry, the Practical RMP course can be used and the risk management concepts can definitely be applied. For this article, I’m going to take a sample risk management plan. This is a .plan file as called in Primavera Risk Analysis (PRA) software tool. 

The .PLAN file

This plan is taken from the provided sample plans available in PRA tool. When imported to the software, it pops-up a message about cost uncertainty in this oil and gas project. 

Uncertainties can come in various ways:

• Duration uncertainty
• Cost uncertainty
• Network uncertainty, among others.

You can learn more on these uncertainties in this article. All these uncertainties can be modelled. 

Analyzing the .PLAN file 

Now that we have imported this file, we need to have a quick look on the plan, which is shown below. 

As shown:

• We have a number of activities under the heading “A” such as Civils, Buildings, Structural Steel & Painting, Mechanical Equipment Supply etc.
• Each of these activities have the cost shown – minimum fixed cost, maximum fixed cost and most likely fixed cost.
• For example, the ‘Structural Steel & Painting’ activity has minimum fixed cost of $900,000, maximum fixed cost of $1,100,000 and most likely fixed cost of $1,300,000.

The resources are fixed cost for these activities and the cost uncertainty has been shown for each. The default probability distribution has been used for them. 

The overall project statistics is shown below. This is can be seen by going to Plan menu > Plan Information … > Statistics tab.  

As you can see, the total planned cost is $19.123 M (million) and the planned finish is 31 October, 2025. I’ve changed the date of the plan. Also, you would have noticed that there are 7 resources, in total, for this cost plan.

Risks as Part of the .PLAN file

This plan is somewhat different compared to the other sample plans available. This is because the risks are added as part of this cost plan. 

The risks have probabilities associated, along with modelling numbers. This is because only risk can have uncertainties as they are in the future and they are uncertain. Activities are planned and will be executed. But they do have uncertainties and hence the modelling.

The risks associated with this cost plan along with the probabilities are shown in the below figure. 

As shown above three risks are directly plan of the plan, not the risk register! There are:

• Material supply problems with 10% chance.
• Key personal availability with 25% chance.
• Design complexity underestimated with 20% chance.

In addition, each of these risks has minimum, most likely and maximum fixed cost. 

Running the Cost Analysis

Next, with this available plan (I’ve made some changes), we will run the risk analysis with respect to cost. This can be done by going to Risk menu > Run Risk Analysis … option. We will use the default parameters while going through analysis and will use the Monte Carlo simulation.

Post analysis, the Latin-Hypercube simulation (a modified version of Monte Carlo), we have the following representation.  

Analyzing the above report, one can say the following:

• The chance of meeting the estimated planned budget of $19.123 is hardly 11%.
• To have a 50% chance the budget has to go up and it has to be $19,679 M. In order to have 100% chance, the budget has to be $22, 249 M.
• Do note that the risks are included in the analysis and they are also impacting the final cost.

Conclusion

As we just learned, any kind of O&G project can be used for risk analysis using the Primavera Risk Analysis software tool. This is a special and advanced project with only the cost aspects. For duration too, the PRA software can be used.

You need not have any apprehension about it. If you are keen to learn detailed and end-to-end risk management with a software tool, then Practical RMP course is the right fit for you.

References

[1] Online Course: Practical RMP with Primavera Risk Analysis, by Satya Narayan Dash. 

[2] eBook: I Want To Be A RMP, 2nd Edition (Updated), by Satya Narayan Dash.

Planned Vs. Actual Percent Complete – Building A Solid Histogram Report with MS Project

In the earlier article, we learned the Format () function. This function is used to format the Planned % Numbers given when you plan, baseline and track your project. In this article, we will learn how to build a histogram report using the available functionality in MS Project. 

As noted in the previous article, your stakeholders will not see the data, but the report. Hence, it’s important that you learn it well. 

Current Project Case

The current project is very similar to one we have had earlier in the article of Planned and Actual Percent Complete with MS Project, with a slight modification. 

As shown above:

• Under Phase – 1, 
• Work Packages A1, B1 and C1 are 100% complete – both planned and actual. 
• Work Package D1 has been delayed and it’s actually 33% complete, though per plan, it should have been completed.  
• Phase – 1 end milestone is 50% complete.
• Under Phase – 2, 
• Work Packages A2 and B2 are 75% and 50% complete, respectively. Ideally, per plan, they should have been completed.
• Work Package C1 started late when compared with the baseline (baseline date is shown in the left column) and it’s actually 14% complete, though per plan, it should be 20% completed.  

It’s important to note that the status date is set as September 15, 2025 (9/15/25). It’s highlighted above. 

At this stage, I’d strongly recommend that you read the article of Planned Vs. Actual Percent Complete to get the best value out of this article. 

Create A Fresh Histogram

We will start to create a histogram by going to the Report tab > New Report > Chart, as shown below. 

It’ll pop-up a message to give a name to the report. Provide the name as “Planned Vs Actual - Histogram Report”. A dummy report will be auto-created. You can change the name to “Planned Vs. Actual Percent Complete - Histogram Report” to have more clarity. 

 

As shown, we have three fields in the above dummy report – Actual Work, Remaining Work and Work. We will remove these fields and have out fields (Number 3 and % Complete) added to it. 

Remove the Default Fields in the Histogram

To remove the fields, select the Chart Area, right click and choose “Show Field List” command. Next from the Field List pane, select the fields and remove them by using “Remove Field” command. You can also deselect the fields from fields available under the “Work” section. 

Add Our Fields into the Histogram

Now that we have removed the fields, we have to add our own custom fields. We will add two fields:

• Number3 custom field: It’ll be available under Number > Custom.
• % Complete field: It’s available under Number. 

Both of the above fields are Task related fields. With it, the histogram will be created by taking Number3 and % Complete field.  

And don’t forget to change the Outline Level to Level 3 from Level 1. Because our work packages are at Level 3!

Next, change the labels of these fields to be displayed on the report. Do the following changes:

• Number3 will be changed to Planned % Complete.
• % Complete will be changed to Actual % Complete.

This can be done by selecting the respective field, right clicking and choosing “Field Settings”. In the popped-up message, provide the labeling. This is shown below. 

Add and Format the Data Labels

Next, we add the data labels to the columns of the histogram. There are two columns for the two fields of “Planned % Complete” and “Actual % Complete”. These are represented in blue and orange color, respectively. For these we have the data labels, i.e., the % value. 

To add the data labels for the columns in the histogram, select any column, right click and choose “Add Data Labels” command. This should be done for both types of columns. Once you are done, the report will come as shown below. 

As you can see above, there are data labels added for both Planned % Complete and Actual % Complete. But for the former, the % notation next to the number is missing. For this purpose, we will provide the formatting. To do so, select the Planned % Complete Data Labels, right click and choose “Format Data Labels” command.

In the shown Format Data Labels pane (below), select the Label options and then select the Custom category for the Number. This is shown below. 

It’s important to note that the category of label here is custom and type given is “#,##0%”. This way the proper formatting will happen for the labels with respect to the Planned % Complete field, which is shown below.

As shown above, the formatting for Planned % Complete field is clearly shown with % in the notations for the blue colored columns in the histogram. 

In addition, we have to change the data series overlap and gap width so that there is a clearer visualization. The data series are with respect to the columns. To do so, select the Planned % Complete Data Labels, right click and choose the “Format Data Series” command. Then provide the needed value, which is shown below.

Isn’t much clearer now than before?

Change the Color Coding 

Our next and final step is to change the colors for the columns in the histogram. For the Planned % Complete column of the histogram, I’ve taken green color, whereas for the Actual % Complete I’ve taken the purple color. This can be done by going to the Task tab > Font group > Theme colors command.  

In addition, we will also make the labels bold and respective color coded. I’ll also change the rotation of the X-axis to 45%, which can be done by selecting the X-axis (the work package notations), right click and choosing the Format Axis option. 

As shown above, the custom angle given is -45 degree. 

Final Touches

Our final histogram comes as shown below. 

 

This can be then transported to a PDF file, an image file or a power point presentation. For example, one can use the export to PDF function of MS Project using the backstage view. 

 

When exported to the PDF, we will have the following view. 

Last Words

That’s it! It might look like a number of steps, but if you go through sincerely and practice a few times, you can easily create this report in a matter of minutes. 

MS Project is a complex tool, but comes with a lot of powerful functionalities. The reporting functionalities given are quite good and you can use them to generate the report for Planned Vs. Actual % Complete. 

I receive a number of questions on the creation of this histogram. I hope this article helps you to prepare the needed histogram anytime in your project planning and tracking. 

References:

[1] Online Video Course: MS Project Live Lessons, Guaranteed Learning or Your Money Back 

[2] Article: Understanding Planned Vs. Actual Percent Complete with MS Project, by Satya Narayan Dash, CIPSA, CHAMP

[3] Article: Planned Vs. Actual Percent Complete – Understanding the Format () Function in MS Project, by Satya Narayan Dash, , CIPSA, CHAMP