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1. Background and Objective

A common requirement in portfolio and program management is the need to manage dependencies between tasks in otherwise separate projects, referred to as Inter-Project Dependency Management (as distinct from Intra-Project Dependency Management, which manages dependencies between tasks within a single project).

The project with tasks dependent on deliverables from another project is referred to as the downstream project, while the project responsible for providing the deliverable, or “resolving the dependency”, is referred to as the upstream project.  

The overall objectives of Inter-Project Dependency Management are to:

1. Prevent delays to the critical path and key milestones of the downstream project 
2. Minimise additional effort required from both the downstream and upstream projects
   
   

Some programs encounter this requirement, specifically where critical path tasks depend on deliverables from projects external to the program (referred to collectively herein as boundary projects).

The purpose of this document is to describe the method by which these dependencies are managed in order to protect the program's critical path, without introducing unnecessary or duplicated effort for either the program or boundary project teams.

2. Practice Definition: Inter-Project Dependency Management

The Program Management Office (PMO) will initially identify dependencies with upstream boundary projects and include the resulting milestone list in the appropriate location within the program’s integrated workplan.

Only material dependencies - those with a significant schedule impact - should be captured, and only at WBS level 1 or 2. Capturing WBS level 3 or lower from boundary projects in the integrated workplan would create unnecessary administrative effort.

PMO will utilize other personnel to support this identification, including boundary project managers (PMs), leadership, and PMO teams.

PMO will:

• Identify and document in the integrated plan any material dependencies on upstream boundary projects, including the date by which the dependency must be satisfied and any critical path impact if the dependency is not realized.
• Agree on the dependency, delivery date, and critical path impact with upstream PMs, PMO, and leadership, as appropriate.
• For dependencies with a Medium or High critical path impact, enter and track them as a WBS level 1 or 2 milestone in the integrated program workplan.
• Obtain periodic updates from upstream PMs on progress toward meeting dependency delivery dates.
  
  The frequency of updates will depend on:
  1. Critical path impact (Higher impact requiring more frequent updates, typically weekly)
  2. Proximity to the Delivery date (with frequency increasing as the Delivery Date approaches).
  
  
• Ensure that updates include:
  1. Forecasted delivery date compared to baseline delivery date
  2. Clearly highlighted forecasted delays
  3. Recommended recovery actions to prevent delays
  
  Note: The project management methods and tools used by the boundary projects should properly be considered a black box, as long as they reliably meet these information requirements.
  
• In the case of forecasted delays, raise a formal risk with probability and impact reflecting the critical path impact.  
• As the impacted entity, the program owns the risk. Specifically, the impacted workstream lead(s) act as risk owners, and relevant PM/workstream leads from the upstream project are the risk participants.
  
  The RACI is as follows:
  1. The program is accountable for the risk, and in some cases, jointly responsible if mitigation actions require its participation.
  2. The boundary project is responsible (for executing required mitigation actions) and consulted. 
  3. Program and boundary project leadership are informed, as appropriate.
     
     
• Direct the relevant parties to resolve the risk using standard risk management practices (e.g. conducting a risk workshop to determine mitigations, which are then implemented by the agreed due date.)
• Importantly, define and direct the risk management process but does not execute it, in line with the principle “PMO defines, project teams execute”.
• In determining appropriate mitigations, ensure that all relevant parties consider options beyond adding extra resources, increasing working hours, and/or delaying milestones. 

This approach minimizes effort by not requiring a regular “dependency management” meeting involving large numbers of upstream and downstream project members.  Dependency reporting, as described above, identifies risks to the program's critical path while involving only the personnel directly required for mitigate.

It also minimizes effort by eliminating the need for upstream and downstream teams to modify or have visibility of each other’s detailed workplans.

3. Practical Application: Dependency Structuring and Tracking Model

To complement the Inter-Project Dependency Management approach described above, the following model provides a practical structure for representing, tracking, and coordinating dependencies across upstream and downstream projects.