The Planning Process of an iterative project takes place at multiple points in the project lifecycle.  There is an initial plan which may only include a Rough Order of Magnitude (ROM) estimate of the phases of the project.  Once the project is sanctioned to begin the Project Manager will detail the schedule for the first phase of the project and update the estimates for subsequent phases.  In an iterative planning environment the goal is to, “Plan the Plan-able” and update when appropriate information becomes available in the future.  For example during the initial Planning Process in a lifecycle which includes Envision, Design, Construct, Test and Deploy it may only be possible to plan the Envision Phase in detail.  ROM estimates for the subsequent phases should be validated or updated to the degree possible.  Axiomatically, the planner should be able to apply a more accurate estimate to the Design Phase than the Deploy Phase in this example.

Microsoft Project allows 11 baselines to be saved for an individual schedule, which is sufficient for common iterative planning processes that suggest planning at the phase level,  such as MBASE or RUP.  The typical lifecycle model has 4-7 phases.  Assuming one baseline is saved to always reflect the Current Baseline, 10 are still available.  Because the Current Baseline should represent the contract between the service provider and the business customer, updates to the Current Baseline should only be allowed through a sanctioning process.  This agrees the iterative philosophy of assessing each project at the conclusion of each phase and determining whether to continue or terminate the effort.  Part of that process should be to re-plan and update the baseline with more detailed information for the next phase.

A common misunderstanding of iterative planning and the “Plan the Plan-able,” approach is to forego any estimate of future phases.  This is incorrect, and quite frankly it is inconceivable that funding decisions can be made in the absence of at least a ROM estimate for a project.  Microsoft Project allows the user to capture ROM estimates as well as phase estimates for the entire project lifecycle which can then be used for analysis to improve estimating and project performance.

Process

Create a schedule containing ROM estimates for proposed projects that are not yet sanctioned.  At this point the schedule may contain little more than the phases of the project, generic resources, and estimates of duration.

The PMO or governing body for proposed projects should save the ROM Estimate to Baseline 1 in MS Project then copy Baseline 1 to Baseline (Baseline will be used for the Current Baseline throughout the project lifecycle).  

Setting Baseline 1

Select Entire Project and Click OK.

Open the Set Baseline dialog again and copy Baseline 1 to Baseline. (See below)  Note: Only users with Set Baseline permissions will be allowed to do this (PMO or governing body).

At this point the Baseline can be displayed in the Tracking Gantt view, Critical Path in Red, Baseline In Black. 

At a point in the future the project may be sanctioned to begin and a Project Manager (PM) assigned.  As part of the Planning Process the PM will assess, validate, and update the ROM estimates, using other team members as they become available or Estimating Subject Mater Experts (SMEs).  The PM will then follow the defined process to elaborate the schedule for the upcoming phase and possibly add known detail for subsequent phases. Notice the changes to the values (Below): 

Baseline Values can be added to the view for more detailed analysis: 

When the PM is satisfied with the updates to the schedule she will schedule a meeting with the PMO or governing body.  The schedule should be checked for quality as well as viability, and a decision made to go forward or stop.  If the project will proceed the PM will save a baseline to Baseline 2.  The PMO will review the baselined values and save Baseline 2 to Baseline (the Current Baseline).  See steps below:PM saves Baseline 2: 

The PMO reviews and then sets Baseline 2 to the (Current) Baseline: 

Confirm that the Current Baseline should be overwritten: 

Baseline data is now set to the values agreed to for the next sanctioned phase: 

Comparisons can also be made with Baseline 1:  

If during the course of execution of the phase a dramatic change takes place, the Current Baseline can be modified, but normally it should be preserved until the end of the phase.The schedule is statused per the organization’s policy throughout the phase, and near the conclusion of the phase the PM begins elaborating the schedule for the next phase.  Notice the changes caused by reporting actuals: 

The PM will meet with the team, and the PMO or governing body to review the results and determine whether to continue the project.  If they decide to continue, the PMO and governing body will review the schedule with the PM and when they are in agreement the PM will save Baseline 3.  The PMO will then review the schedule once more and then save Baseline 3 to the Current Baseline.

PM: 

PMO: 

This process continues until all phases of the project are complete or the project is stopped.  At the conclusion of the project a full suite of estimating assumptions made at each phase of the project are available for review and analysis.  Each saved baseline can be added to views in MS Project as well as the Gantt chart:

 Right Click in the Gantt Chart and select Bar Styles . . . : 

Conclusion

By using the multiple baseline feature of Microsoft Project you can capture the assumptions and actual performance at progressive phases of a project schedule.  This data can then be compared and analyzed to determine the effectiveness of the estimating and planning processes that are in use by the organization.  Additionally, the data can reveal trends that occur during the execution of projects and help provide valuable feedback to improve processes.