ENTERPRISE PROJECT MANAGEMENT

A Lenati Point of View

Martin Mehalchin, Principal

mmehalchin@lenati.com

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Contents

• Introduction

• Enterprise Project Management Governance and Project Portfolio Management

• Project Management Framework: Standards & Practices

• Lenati

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INTRODUCTION

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Most Organizations Struggle to Consistently Execute Project Work

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• Successful Projects– Completed and meets objectives– On time – On budget – All scope delivered

• Challenged Projects– Completed but may not meet all objectives– Large cost overruns– Severe schedule slippages– Delivered significantly reduced scope

• Failed Projects– Not completed or did not meet objectives

AverageProject

89% Cost Overrun

122% Schedule Overrun

60% Scope

Delivered

Source: Standish Group

The Path to Consistent Execution Requires An Enterprise-Wide Approach

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Individual Projects

•Standard Roles, Documentation

•Required Measurement and Reporting

Phase / Gate Approach

EPMO: Set & Maintain Standards, Develop/Offer Training, Foster Community of Practice

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Project Portfolio Management

•Assemble

•Rationalize & Rank

•Monitor Execution

ENTERPRISE PROJECT GOVERNANCE AND PROJECT PORTFOLIO MANAGMENT

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Project Portfolio Management Aligns Projects With Your Overall Strategy and Objectives

Assemble Portfolio

•Inventory existing

•Charter new

Rationalize & Rank

•Align to strategy

•Size portfolio to available resources

•Prioritize

Monitor Execution

•Hold projects to milestones and delivery of results

•Resolve escalated issues

•Assess results

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Phases

Tools

Cost Control

Service Line Expansion

Clinical Quality

Project A

Project B

Project C

Strategy / Initiative Alignment Matrix

Project NPV

New System $1,000,000

New Facility $750,000

ReengineerProcess

$500,000

Financial Ranking

A Stage/Gate Approach Applies Rigor to the Projects In the Portfolio

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Project Phase Deliverables / Critical Decision Gates

Project Phases

Deliverables

Mandates, Department

Planning, Strategic

Planning

Business Case

DevelopmentDetailed Planning Implementation Closeout & Turnover

Problem

Definition/Needs

Analysis

Assumptions/

Constraints/Risks

High-level

Specifications

Alternatives

Selection

Resource ImpactCost Estimate

Statement of

Support

Critical Decision

Gates

Scope Baseline

Resource

Allocation

Commitments

Detailed Cost

Estimate/ROI

Calculations

Detailed

Schedule

Including

Milestones

Quality Control

ProceduresRisk Assessment

Communications

Plan

Project Status Reports

- Issues Log

- Meeting Notes

Project Performance Requirements

- Earned Value Requirements

- Cost Variance Analysis

- Schedule Variance Analysis

Lessons Learned/Knowledge Management

- Scope Changes

- Cost Variance/Controls

- Schedule Variances

- Process Adjustments

- Resource Utilization

Project Completion Sign-off Form

- Milestones Completion Buy-off

Communicate Project Successes

- Executive Sponsor

- Executive Management Group

- Project Team Members

- Project Steering Committee

- Broad Employee Base

Critical Decision

Gate 1

Critical Decision

Gate 2

Critical Decision

Gate 3

Critical Success

Factors

Business Case Document Project Charter

Financial Impact

(ROI projection)

Go-Live Signoff Document

•Require all projects to proceed through standard phases

•Measurements of cost & impact are refined as the project progresses

•Strategic fit & ROI projection tested at each gate

•Each gate represents a go / no-go

•Executive management involvement in all gating decisions

Use An Enterprise Project Management Office (EPMO) As the Focal Point for a Community of Practice

• Lead the community of practice– Develop the standard definitions and document templates used by all

projects

– Develop and deliver internal training for project management roles

– Coach, mentor, facilitate sharing and learning across the enterprise

• Support executive engagement– Administration of project portfolio

– Aggregate monthly reporting into an enterprise roll-up for executives

• Note: Not a bureaucracy– Minimal full-time staff

– Designated representatives from a broad cross-section of the organization

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Executive Governance & Engagement Is a Critical Success Factor

• Executive team must promote and model the enterprise standards

• Regularly scheduled executive team review of project portfolio– Typically an agenda item for a standing meeting

• Executive sponsor for all projects; executive chairs all Steering Committees– Size thresholds may apply

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PROJECT MANAGEMENT FRAMEWORK: STANDARDS & PRACTICES

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Benefits of Standard Project Management Framework

• Reduces confusion and churn time within a project

• Everyone speaks the same language which results in improved communication amongst the project team

• Enables a greater amount of time to work on a project rather than time being used to establish a new framework or tools for each project

• Provides integrated approvals to ensure ongoing engagement and support from key stakeholders

• Clear expectation setting and buy in with sponsor and key stakeholders

• Increases likelihood of delivering stated objectives

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Commonly Understood Phases, Roles & Vernacular

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Phases

Business Sponsor

Executive Sponsor

Core Team

Program/Project Manager

Business Owner

RolesVernacular

Issues

Assumptions Constraints

Risks

Library of Standard Document Templates

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Drivers for a Successful Project

• Clear and prioritized Objectives, Goals and Benefits

• Project scope & objectives align with corporate goals

• Executive Management Support

• Roles & responsibilities are clearly identified and communicated

• Proper planning

• Clear Requirements and Specifications

• Input and buyoff from all participants (user involvement)

• Issues, Risk and Changes are Managed

• Communications are planned and managed

• Lessons are learned and documented along the way

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LENATI

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Lenati is a professional services firm offering solutions to organizations striving to maximize performance, revenue, and market share.

Our goal is to help Mid-Market and Enterprise clients go to market more successfully (higher returns) and more efficiently (lower cost) with a focus on creating competitive advantage via differentiated customer experiences.

As part of our drive to be a services industry leader in helping organizations maximize their market performance, we have assembled a small, high powered group of professionals and strategic partnerships that help us deliver innovative solutions that can help your organization make an immediate impact in the marketplace.

Lenati Project Management Offerings

• Project Portfolio Management– Advise on approach– Gather and analyze data on current inventory of projects– Facilitate initial series of review meetings

• EPMO– Advise on set up and selection of resources – Design and implement stage/gate process– Assist with development of standards and templates– Provide pre-built training; train-the-trainer programs for staff

• Large Projects– Project audits & resource assessments– Advice on turnaround or close-out of troubled projects

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