Lesson 9: Caution - Overhead Work in Progress

Working with overhead projects presents unique challenges that require careful planning. Lesson 9 in project management emphasizes the importance of caution in handling overhead work in progress (WIP) as it carries significant implications for productivity, morale, and project success.

Overhead WIP refers to tasks that fall into the "support" category, such as infrastructure development, policy formulation, training, and project management itself. These activities are essential for an organization's smooth operation but can nonetheless disrupt workflow if not managed properly. This lesson helps us navigate this delicate situation and optimize overhead project delivery.

Understanding Overhead WIPs

Overhead WIPs are often misunderstood due to their indirect nature. Unlike frontline projects with immediate and visible outputs, overhead projects require a nuanced approach. This misunderstanding can lead to underestimation, inappropriate allocation of resources, and neglect of these critical activities.

To mitigate these risks, your organization needs to acknowledge the strategic importance of overhead WIPs. They play a pivotal role in enhancing productivity, fostering innovation, and driving overall organizational performance. Treating them with the same level of priority and discipline as frontline projects is not only recommended but necessary.

Classifying Overhead WIPs

Before diving into project management, it's crucial to classify overhead WIPs. This step helps in resource allocation, stakeholder management, and, most importantly, scheduling. The most common types include:

• Foundational: These WIPs establish the necessary framework for other projects, such as setting up a new system or standardizing processes.
• Improvement: These WIPs focus on enhancing existing systems or processes, like updating software or introducing new policies.
• Strategic: These WIPs align with the organization's long-term vision. They could involve market research, strategic planning, or investment in future technologies.

Managing Overhead WIPs

Managing overhead WIPs involves balancing the need for urgency with the reality of their indirect nature. Here are some practical strategies:

• Prioritize Wisely: Use a system like MoSCoW (Must Have, Should Have, Could Have, Won't Have) to prioritize overhead WIPs based on their value and dependency on other projects.
• Set Clear Objectives: Clearly define the expected outcome of each WIP. This step not only helps in tracking progress but also ensures alignment with organizational goals.
• Guestimate but Review: Overhead WIPs can be challenging to estimate. Use expert judgment and historical data to create initial estimates, but be prepared to review and update them regularly.

Embedding Overhead WIPs in Project Management

Incorporating overhead WIPs in your project management system helps ensure these activities are neither neglected nor disrupted by frontline projects. Here's how:

Overhead WIPs should have their dedicated project managers who report to a senior management committee. This committee oversees the portfolio of overhead WIPs, approves resource allocation, and monitors progress.

Integration with Frontline Projects

Despite their distinct nature, overhead WIPs intersect with frontline projects at numerous touchpoints. For instance, a policy update might affect multiple frontline projects, or a training session might be required for teams working on various projects. Therefore, integrating overhead WIPs into your project portfolio management (PPM) system is essential.

Regularly review and update your PPM to reflect all WIPs - frontline and overhead - and their interdependencies. This approach helps in identifying potential resource conflicts, aligning expectations, and ensuring everyone is working towards the same strategic goals.

Building a Culture of Continuous Improvement

Overhead WIPs often involve driving organizational change. This process can be challenging and slow, given the inevitable resistance to change. To overcome this hurdle, foster a culture of continuous improvement.

Encourage open dialogue about process inefficiencies, create safe spaces for experimentation, and celebrate small wins. Reward teams and individuals who identify and implement process enhancements. This approach not only helps in managing overhead WIPs effectively but also creates a stimulating work environment.

In the world of project management, overhead work in progress often gets overshadowed by more visible, high-impact projects. However, the dividends of successful overhead WIP management - improved productivity, increased innovation, and a cohesive project portfolio - make it a critical investment. By acknowledging their significance, classifying them appropriately, and integrating them into your PPM system, you're setting the stage for organizational success.