Case study

Project portfolio management for Amstelveen/Aalsmeer

Municipal portfolio managers of infrastructure projects need to keep control of future costs 

Delivering my project within the predetermined planning, budget, and quality norms - that is the natural responsibility of a project manager. But that kind of project-based steering doesn't always align with the annual budget cycle of a city. Maarten Wilschut, head of department of infrastructure projects at the municipalities of Amstelveen and Aalsmeer, tells us about his most important challenges - and the effective approach he's selected to meet them. 

"How do I get a clear overview of the expected costs?"

“Our annual financial administration is in order, but it's primarily designed to look back: how much have we spent? It's very difficult to prepare next year's budget solely on that information. We currently maintain a sizeable buffer in our budget to manage uncertainties. Sometimes it takes up to six weeks for everything to be processed. What I really want is to be able to look ahead: what financial commitments do we have? I should have access to those numbers in order to build a clear overview of the costs. Without that information, I'm not fully in control. But it takes a lot of time to gather it: many hours of calling and e-mailing in order to collect all the puzzle pieces.
            It can be very tricky when project leaders make decisions on their own account, which may seem very logical from their perspective, but which may have counterproductive effects on the entire portfolio of infrastructure projects. Maybe there is no winter frost and a project leader decides to go ahead and accelerate a project. But that could result in much higher costs in this calendar year than budgeted, and that could get me in trouble." 

"How do I keep an up-to-date overview of the planning and adjustments?"

“For planning, the situation is similar to budgets. I don't just want to know whether a project phase has been delivered according to planning, looking back, but I'm primarily interested in the information that is now often stuck in the heads of project managers: when do they expect to start and finish their project phases? What are the latest insights? If we have all that information in one place, we can make better decisions, for example to combine certain projects."

"How can I make the best course adjustments based on recent information on expected costs and planning estimates?"

“The more accurate and recent the information is that I have access to, the better the decisions are that I make as a head of department. If a project leader expects that their project will not be realized within the original budget or planning estimates, I want to know that as soon as possible. Then I can make an early decision to postpone another project or shift some budgets around - take some money here and add some money there. That's why it's so important that project managers know exactly how much budget they have, and that we keep communicating and sharing information year-round. 

"How do you manage both an annual budget as well as a project budget? How do you get recent data on the expected start and end dates of project phases?"

  • We manage all our costs with the Cognos financial system and our planning with MSP. MyPortfoliomanager™ reads the planning and budget data from these sytems every month. 

  • Project managers receive a monthly e-mail with an overview of the budgets, realization and planning. This way, they don't have to go looking for information in complex databases like MSP and Cognos.
     
  • Projectmanagers can reply to this monthly e-mail with any adjustments to the expected planning, budget or (new) requirements. MyPortfoliomanager™ then renders this information accessible to the portfolio manager, who can use this to anticipate changes and make adjustments in Cognos and MSP. 

  • If relevant changes occur outside of the monthly cycle, project managers can easily submit these through the online portal of MyPortfoliomanager™. As the head of department, I kunnen projectmanagers deze op laagdrempelige wijze doorgeven via het online portaal van MyPortfoliomanager. Als afdelingshoofd krijg ik dan meteen een melding en ben ik op de hoogte. 

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