Knowledge-driven industries like software development, marketing, and asset management have found the concept of a pull system to be a highly beneficial strategy.
Originally developed for manufacturing, a pull system is a fundamental part of lean methodologies. It is designed to optimize workflow and increase efficiency by only starting tasks when there is demand.
Pull systems, however, work better only at the single-project level. Scaling them up to a portfolio of projects brings unique challenges.
This comprehensive guide is exclusively about the pull system. Learn details like:
- how to implement a pull system
- the steps required to successfully implement a pull system on the portfolio level
- overcoming common issues
- ensuring your organization can enjoy the full benefits of this powerful methodology.
What Is a Pull System?
A pull system is an approach where work is initiated based on actual customer demand or the next process rather than forecasted demand. Unlike push systems, where tasks are pushed into the workflow based on schedule or predictions, a pull system allows work to be “pulled” only when needed. It thus ensures resources are efficiently utilized without creating unnecessary bottlenecks.
Pull System Works On The Project Level But Struggles at the Project Portfolio Level. Why?
Pull systems are relatively easy to implement on a smaller scale. Here, the tasks can be visualized, team members can easily manage their workload, and everyone knows when new tasks should be pulled into the system. Overall, the workflow becomes smoother, and productivity rises.
However, scaling a pull system to a group of projects or portfolios is much more complex. A portfolio involves multiple projects, teams, and departments, each with its tasks and responsibilities. If not appropriately managed, the pull system can become chaotic, with teams pulling in tasks without considering how their work affects the overall process.
Lack of coordination results in many problems, even if the teams seem to be working efficiently. For example, businesses can experience misaligned priorities and inefficient workflows because of the lack of communication.
How to Implement a Pull System at the Portfolio Level
Since the pull system is a great strategy, we must implement it at the top management level and the project portfolio level. Organizations must adopt a holistic approach to make this strategy work.
Learn each step of a pull system implementation at the portfolio level by exploring the steps below.
1. Visualize the Workflow Across Multiple Layers
Visualizing the breakdown of work is essential at the top project portfolio level. You can use the Kanban system to map out the different layers of tasks and initiatives. It will help you visualize the work breakdown. Kanban boards make tracking progress on big goals easier by dividing them into smaller, more manageable tasks.
For example, you might start with a high-level board that outlines your organization’s main objectives. From there, you can break these down into individual projects. You can then assign each of these projects to a specific team with its own dedicated Kanban board. And if you want to keep everything connected and transparent, you can link each task back to its larger goal. This way, you will ensure that nothing falls through the cracks.
This approach helps teams stay aligned with the broader portfolio objectives. It also prevents problems like bottlenecks or uneven workloads across departments, which can derail progress.
2. Establish Parent-Child Relationships Between Tasks
Establishing a parent-child relationship is extremely productive at the project portfolio level because it ensures clarity and focus. Parents’ tasks are the larger tasks in an initiative, and the smaller, actionable items necessary for the completion of parent tasks are termed child tasks.
Let’s assume a scenario. For instance, Launching a new software product is the larger initiative. The parent tasks would be research, product development, and marketing strategy. Each of these parent tasks would be further broken down into steps like coding, testing, campaign creation, etc. which would be the child tasks.
The role of the pull system in such cases is to ensure no parent task is considered complete until all its associated child tasks are completed. This creates clear accountability and ensures progress on major projects is always visible and measurable.
3. Limit Work in Progress (WIP) on the Portfolio Level
One of the biggest mistakes organizations make when implementing a pull system at the portfolio level is failing to apply work-in-progress (WIP) limits.
Apart from being essential at the individual project level, the implementation of WIP limits becomes more critical at the higher project portfolio level. Otherwise, if not done, you can risk overwhelming your teams by pulling too much work into the system at once. Results? Bottlenecks missed deadlines and decreased efficiency.
On the contrary, you can ensure teams only take on work that they can efficiently handle by setting WIP limits at the portfolio level. When you implement this approach, all of your teams can focus on completing tasks first rather than starting new ones. And obviously, it will result in a smoother and more efficient workflow.
The real trick lies in balancing the workload with what the team can realistically handle. Let’s say you have a department with fewer resources and you want to improve its efficiency. What you can do is leave your team idle instead of overloading them with more work.
4. Coordinate Across Departments and Teams
Take any large organization and you will notice that they have a lack of visibility between departments. You will see that one team is pulling work and they are not away of the work progress of other teams. As a result, organizations face delays, inefficiencies, and rework. If you want to avoid this, establish clear communication and coordination across departments.
A great way to tackle this is by using a Portfolio Kanban system. It gives everyone a shared view of how tasks across teams connect to the bigger picture. Plus, it encourages teams to think about each other’s capacity when taking on new tasks.
5. Apply Lean Principles to Reduce Waste
When it comes to improving efficiency, lean principles can really make a difference. For example, the pull system not only keeps workflows running smoothly but also emphasizes reducing waste. You can use strategies like continuous improvement (Kaizen) if you want your teams to regularly analyze their workflows. This way, they can spot things like duplicated efforts or unnecessary wait times.
And by reviewing feedback and performance metrics often, you can fine-tune processes to make sure teams focus on tasks that deliver the most value to the organization.
6. Shift from Forecast-Driven to Demand-Responsive
When you shift from a traditional forecast-driven approach to a pull-based system at the project portfolio level, it all starts with a change in perspective. For example, a pull system will focus on responding to actual demand in real-time instead of predicting what work might be needed.
This way, you’re acting on what’s genuinely required downstream, which makes the entire process more efficient and effective.
At this point, real-time data becomes critical. By gathering insights into customer needs, market trends, and operational capacity, you can make sure teams are pulling in only the work that’s necessary and valuable.
Technology is a big enabler here. You can use AI and data analytics to anticipate demand and manage resources more effectively. By integrating these solutions, you can keep your portfolio responsive, agile, and perfectly aligned with evolving priorities.
Don’t go further from this part
Industry Trends Shaping Pull Systems
AI has been a blessing in helping businesses manage project portfolios currently when the shifts in ideology and practices is quite common and quick. Pull system can become more efficient when coupled with AI.
WIth real-time data analysis, predicting demand, and offering personalization at scale, AI can:
- “Polish decision-making”
- “Customer engagement”
- “Operational efficiency”
AI & Asset Management
According to estimates, AI in Asset management is expected to grow by $59 billion by 2024. The numbers speak for its tremendous growth and importance in various fields. And not to forget, less than 10% of private equity funds had implemented AI in core functions in 2023., soAI is making waves across the business landscape.
When implemented in asset management, relying on pull system, it facilitates asset management in ensuring that their projects and tasks are aligned with real time demand and priorities. AI supports the initiative by supplying information and real time data needed to make informed decisions about which particular tasks to pull through the system in the first place.
These approaches thus help asset management firms to a adapt to changing market conditions more quickly and operate effectively.
Private Equity
AI is revolutionizing private equity by portfolio assessment and increasing clarity. This allows for more frequent and accurate valuations. Besides, it also opens doors for new investors by providing deeper insights into portfolio performance.
Benefits of Implementing a Pull System at the Portfolio Level
The successful implementation of the pull system on the portfolio level after trying the strategies mentioned above can bring along these benefits:
- Increased value by aligning team efforts with strategic goals.
- Achieving a smoother workflow and shorter cycle times.
- Prevents bottlenecks through effective visualization and WIP limits.
- Improves decision-making, workflow optimization, and real-time responsiveness by leveraging AI.
Conclusion
Implementing a pull system on the project portfolio level is a powerful way to improve organizational efficiency. However, it requires a well-coordinated approach across teams and departments. If you have been wondering how to implement a pull system, this guide has it all.
By visualizing workflows, establishing parent-child task relationships, applying WIP limits, and leveraging technology, you can overcome challenges that arise when scaling pull systems beyond the team level.
