enterprise project managemententerprise project management ... · pmmg design stage two maturity...
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(c) 2006 DLB Associates, LLCAll Rights Reserved 1
(c) 2006 DLB Associates, LLC All Rights Reserved 1
Chapter Meeting
September 13, 2006
Program byDennis Bolles, PMP
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•• PM Is A Business FunctionPM Is A Business Function•• Critical First MovesCritical First Moves
OverviewOverview
Initiating the House of ExcellenceInitiating the House of Excellence
•• GovernanceGovernance•• StandardizationStandardization•• CapabilityCapability•• ExecutionExecution
Program OutlineProgram Outline
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Enterprise Project Management is amindset, a way of communicating andworking that is supported by technology.
EPM organizes an enterprise’s resourcesin direct alignment with the Enterprisesvision, mission, strategic initiatives,and business objectives (VMSO).Enables the enterprise to translate VMSOinto executable portfolios, programs,and projects.
Enterprise Project ManagementEnterprise Project Management --DefinitionDefinition
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•• MissionMission – the degree to which the enterpriseknows why it exists and what its direction is –Governance.
•• ConsistencyConsistency – the company’s systems andprocesses which support efficiency andeffectiveness in reaching enterprise businessobjectives - Standardization
•• CommitmentCommitment – the degree to whichindividuals at all levels of the enterprise areengaged in and hold that direction as theirown – Capability
•• AgilityAgility – the ability of the company to knowwhat Customers want, and the degree towhich it can respond to external forces anddemands – Execution
Cultural Change Requires:Cultural Change Requires:
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The Driving Forces Behind EPMThe Driving Forces Behind EPM
• Loosing Market Share• Competition is Faster to Market• Fewer Resources Available• Cost Cutting – Budget Reductions
• Customers are demanding it• Dynamic Growth
PAIN!NEED
ACTION
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EPMO BenefitsEPMO Benefits
Expands PM Practices Enterprise-wide
Opportunity to Recognize Successes
Facilitates Internal Benchmarking
Distribute Lessons Learned
Establishes Best Practices
Enables PM Training and Development
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Project Business ManagementProject Business Management
Project Business Management is theintegration of General Business ManagementGeneral Business Managementand Project ManagementProject Management policies, processes,
and procedures.
Project Business Management begins withStrategic Planning, and progresses through
developing Business ObjectivesBusiness Objectives, establishingPortfoliosPortfolios that prioritize and manage theauthorization of ProgramsPrograms and ProjectsProjects.
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Establish a EPMO enterprise StructureRequires Careful Planning
The first moveoftendetermines theoutcome of thegame
Establishing EnterpriseEstablishing Enterprise--widewideProject ManagementProject Management
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1) Obtain top executive commitment andsupport
2) Get middle management commitment &support
3) Assess the current situation4) Create a EPMO Charter and get it
formally adopted by the managementteam
5) Make a big splash to get everyone’sattention
Important Steps to TakeImportant Steps to Take
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6) Create a current Portfolio of Programsand Projects
8) Implement a Project ManagementMethodology standard
9) Provide Education & Training10) Sell the concept of enterprise-wide
PM whenever you can
Establishing Enterprise-wide ProjectManagement Is Not A Trivial Pursuit!
Important Steps to TakeImportant Steps to Take -- ContinuedContinued
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Establishing EPMOEstablishing EPMOEnterprise Assessment / Plan to
Achieve the Future State
Assess the Current StateAssess the Current StateDefine the Future StateDefine the Future StatePlan to Fill the GapPlan to Fill the Gap
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The Importance of PositioningThe Importance of Positioning
• Position is equated with Authority
• Position establishes level of Acceptance• Position enables enterprise-wide Adoption
• Position defines level of Autonomy
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VisionVision
“To create an environment that enablesworldworld--class proficiencyclass proficiency in managingprojects enterprise-wide within the
enterprise.”
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MissionMission
“To provide the leadership that will guidethe enterprise in providing its Programs,Projects, and Services by utilizing ‘‘bestbest--
inin--classclass’’ project managementmethodologies, tools, templates, and
technology.”
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Strategy
“Create an environment within theenterprise that embraces project
management as an intrinsic enablerintrinsic enabler forachieving its strategic initiatives and
business objectives.”
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Business ObjectivesBusiness Objectives
“To establish and institutionalizeproject management practices as thenaturalnatural way to accomplish work andtreats it as a business function to thedegree that PM becomes part of the
enterprises core competency .”
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Establishing EPMEstablishing EPM
Critical Success Factors
Establish GovernanceEstablish Governance
Define StandardizationDefine Standardization
Develop CapabilityDevelop Capability
Enable ExecutionEnable Execution
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Establishing The EPMOEstablishing The EPMO
Created EPMO Charter
PurposePurpose VisionVision MissionMission StrategyStrategy Goals & ObjectivesGoals & Objectives MethodologyMethodology Critical Success FactorsCritical Success Factors RRoles/Responsibilities/Accountability/Authorityoles/Responsibilities/Accountability/Authority
-- LeadershipLeadership-- ConsultingConsulting-- MentoringMentoring
EPMOEPMOCharterCharter
ManagementSign-off
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Enterprise Organization StructureEnterprise Organization Structure
EPMOEnterprise-wide ProjectManagement OfficeForecasting, Strategic Planning
Corporate Level
Business Unit PMOPlanning,Scheduling, Reporting
PMOPMOBUPMOBusiness Unit
Level
Divisional PMOOverview & Master ProjectPlanning
PMOPMODPMODivision
Level
Project Management OfficePlanning,Scheduling, ReportingMission-Critical StrategicProjects
PMOPMOPMOProjectLevel
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EPMO Reporting StructureEPMO Reporting Structure
EPMO
DPMODPMO DPMO
BUPMOBUPMO BUPMO
PMOPMO PMO
EPMO = Executive Level
DPMO = Division Level
BUPMO = Business Unit level
PMO = Mission CriticalProject Level
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Manage Enterprise ResourcesManage Enterprise Resources
New OpportunityRequires Reprioritization
Of the Portfolio
CapacityAnd
CapabilityTo Do Work
Limited Resources
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EPMO staffing,responsibilities and skill levelrequirements change as theenterprise matures.
Strategies evolve asmaturity progresses
ResourcesCost Tracking
SchedulingTools & Templates
ProcessesProcedures
Work Instructions
Project Management
Process ManagementEvolutionary stateof the EPMO
Maturity Path
Time
Ben
efits
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Establish Project BusinessProject BusinessManagement StandardsManagement Standards including:policies, procedures, processes,tools and templates that will be
commonly appliedcommonly applied to all enterpriseportfolios, programs, and projects.
Develop StandardsDevelop Standards
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Establishing A MethodologyEstablishing A MethodologyPublish the Project ManagementMethodology Guidelines (PMMG)
IntroductionIntroductionProject AuthorizationProject Authorization
Project InitiationProject Initiation
Project PlanningProject Planning
Project ExecutionProject Execution
Project ClosingProject Closing
Education & TrainingEducation & Training
PM TemplatesPM Templates
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1E-1 Close Strategy1D- 1Manage Strategy Change1D- 2Monitor Strategy MetricsPerformance
1C-1 Implement Strategy1C-2 Perform StrategyStatus Reviews
1B-1 Prepare StrategicBusiness Plan1B-2 Prepare Business Cases1B-3 Prioritize BusinessStrategies
1A-1 UpdateEnterprise Vision andMission1A-2 DevelopBusiness Strategiesfor Next BusinessCycle1A-3 IdentifyApplicable EnterpriseEnvironmentalFactors1A-4 Define StrategyPrioritization Criteria1A-5 DevelopStrategyAccomplishmentMetrics
Strategy ClosingProcesses
( E )
Strategy Monitoring &Controlling Processes
( D )
Strategy ExecutingProcesses
( C )
Strategy PlanningProcesses
( B )
StrategyInitiatingProcesses
( A )
PBMM Business Strategy DevelopmentModel Processes
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PBMMBusinessStrategyDevelopmentInitiation &PlanningProcesses
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PBMM Business Strategy Processes Summary(Example)
Initiate ProcessesOBJECTIVE: Obtain organizational commitment for the project. Setup funding for
planning and initial startup activities.
ENTRANCE CRITERIA: TYPICAL INPUTS: Management approval to proceed. EPM and PM identified.
Proposal/Contract/Sales Order/Projectmaterial
TASK DESCRIPTION:Identify Core Integrated Product Development Team membersPrepare/open start - up EPA.
EXIT CRITERIA: OUTPUTS: Start- up EPA approved Core Integrated Product Development
Team members identified and assigned(Required)
Approved start- up EPA (Required)
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Develop a Project BusinessProject BusinessManagement Education & TrainingManagement Education & Trainingprogram, which definesdefines educationand training requirements, testing
criteria, and validation processes forportfolios, programs, and projects.
Education & TrainingEducation & Training
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Education & Training ProgramEducation & Training Program
GeneralPopulation
ProjectTeams
ProjectManagers
Executives&
Managers
Knowledge Objectives
Learning Objectives
Assessment Methods
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Enabling The EnterpriseEnabling The Enterprise
Develop Education & Training Program
Entry
Intermediate
Advanced
Project Management Career Path• Qualification• Certification
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Project AuthorizationProject Authorization
Establish a Portfolio/Program/ProjectPortfolio/Program/ProjectAuthorizationAuthorization process to initiateinitiate
authorization to ensure the use ofresources are in alignment with
corporate strategic initiatives andsupporting business objectives.
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PBMM Business StrategyPBMM Business StrategyDevelopment Data FlowDevelopment Data Flow
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Business Objective PlanningBusiness Objective PlanningProcessProcess
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PBMM Business ObjectivePBMM Business ObjectiveDevelopment Data FlowDevelopment Data Flow
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Business Objective/Project Prioritization &Selection Process
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PBMM Portfolio / Program / ProjectPBMM Portfolio / Program / ProjectProcess Data FlowProcess Data Flow
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Portfolio Authorization Process
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Initiating Phase
Planning Phase
Executing Phase
Closing Phase
ReviewGate
ReviewGate
Project Readiness CheckProject Readiness Check
ReviewGate
Lessons learned ReviewLessons learned Review
Capture Lessonslearned
Capture Lessonslearned
Capture Lessonslearned
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Enabling The EnterpriseEnabling The Enterprise
Established MonthlyPortfolio/Program/Project Reviews
PMPM’’s Report By Departments Report By Department
New ProjectsNew Projects
WIP ProjectsWIP ProjectsCompleted ProjectsCompleted Projects
(lessons learned)(lessons learned)
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Enabling The EnterpriseEnabling The Enterprise
Provide Hands-on Mentoring & Coaching
Assist With Project StartsAssist With Project StartsCost Benefit AnalysisCost Benefit Analysis
Scope StatementScope Statement
Risk AnalysisRisk AnalysisBaseline PlanBaseline Plan
Communications PlanCommunications Plan
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1. Initial1. Initial A Baseline and a EPMO is established
2. Repeatable2. Repeatable Project business managementmethodology is consistently applied toall projects
3. Managed3. Managed Product and projectmanagement processesare fully integrated
4. Distributed4. DistributedPM is fully distributedwhere it is a corecompetency
5. Sustained5. SustainedContinuous improvement andinnovation is common
Maturing ProcessMaturing Process
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Implementation Time LineImplementation Time Line
DevelopPMMG Design
Stage TwoMaturity
DistributePMMG
Timing Depends on Level of SupportTiming Depends on Level of Support
BasicTraining
Establish PMCoE
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QUESTIONS
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Contact InformationContact Information
Dennis Bolles, PMP
DLB Associates, LLC
Email: [email protected]: 616-392-2292
Website: www.dlballc.com