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Enterprise-Wide PBM Methodologies

SERIES ARTICLE

Enterprise-Wide Project Business Management Methodologies and the PMO

Series on Project Business Management and the PMO

By Darrel G. Hubbard, PE
President, D.G.Hubbard Enterprises, LLC
California, USA

and

Dennis L. Bolles, PMP
President, DLB Associates, LLC
Michigan, USA


A situation frustrating and plaguing executive management within many enterprises is their inability to adequately control resources, materiel, and facilities when managing a range of projects. This commonly results from the enterprise lacking a system of documented, formal, simple, and properly integrated project-portfolio/project-program/project policies, standards, methodologies, processes, procedures, and practices, which support the safe, prudent, strategically-focused, and cost-effective business management of the enterprise’s projects.

Most enterprises recognize the management value and usefulness of the Project Management Institute’s (PMIâ) and other international project management organizations’ standards and guides in addressing this issue. However, executives at all levels still struggle with how to implement those professional standards and guides within their own enterprises. Many executives view the PMI and other international standards as methodologies; this is not the case. Those standards are only intended to serve as the basis for developing an enterprise’s own portfolio/program/project policies, standards, and methodologies.

Understanding Project Business Management Methodology Development

This article discusses at a summary level how an Enterprise-level Project Business Management Organization can support the enterprise in developing an overall project management system of six major components. As practitioners and PMO managers, we need to understand the meaning of those component terms, within the context of the project management discipline, to more effectively employ them and to communicate to executive management their particular meaning and their functioning when managing projects in a business environment.

A System, in the project business management setting, can be seen as an integrated structured set of interconnected, interacting, interdependent, and interrelated components forming an intricate whole, which has inputs, outputs, and feedback mechanisms and is created to accomplish defined objectives or results in the enterprise’s management of its projects. Each project management system has defined and maintainable relationships among its major components of policies, standards, methodologies, processes, procedures, and practices, and, therefore, the whole operates better than the basic sum of its components.

Project business management Policies are the foundation of any system for project management and are the formally prepared, and management issued, statements concerning the enterprise’s governing or guiding principles, which are stated courses of action to be taken by the enterprise. Established policies are considered expedient, prudent, and advantageous by an enterprise’s executives and are intended by them to influence and determine future decisions and actions in the management of the enterprise’s portfolios, programs, and projects.

The enterprise’s Policies are commonly addressed by developing supporting Standards. A Standard, within the discipline of project management, establishes a model that provides for the common and repeated use of rules, guidelines, or operational characteristics when performing activities or obtaining results in managing portfolios/programs/projects. It is developed through consensus and promulgated by a recognized authority such as PMI, or a corporate executive, and is aimed at the achievement of an optimum degree of performance and outcomes in a project business management context. A third party professional standard can either be adopted as is by an enterprise, or it can be converted into an enterprise specific standard. In either case, those standards need to be operationally translated into a set of enterprise specific Methodologies for use by the enterprise in managing its portfolios/programs/projects.

A Methodology is an organized body of intra-related business management methods to be employed and followed in the project business management of the enterprise’s portfolios/programs/projects. Here a Method is a specific group of processes, procedures, and/or practices for attaining particular outcomes or objectives in the management of a portfolio/program/project. A Process within any particular project business management Method is a higher-level series or set of interrelated actions, activities, and rules performed to achieve a pre-specified set of outcomes, results, or services, when managing a portfolio/program/project. Each process is normally implemented by developing and issuing one or more implementing Procedures and Practices.

A project business management Procedure is a systematic presentation of instructional material that gives a series of steps to be followed in a definitive and prescribed order to accomplish a specific task, or set of tasks within a Process, during the enterprise’s management of a portfolio/program/project. A specific implementing Practice within the project business management discipline is an established way of doing things developed through, and documented based upon, experience and knowledge. It is a specific set of project business management actions that contributes to the execution of a project business management process or procedure and it may employ one or more techniques, tools, and/or templates.

For most enterprises, translating the PMI’s A Guide to the Project Management Body of Knowledge, The Program Management Standard, The Portfolio Management Standard, and Implementing Organizational Project Management: A Practice Guide, and other non-United States standards and guides into enterprise specific Standards and methodologies is a daunting task. Our research shows this task is most effectively performed by a Project Business Management Organization (PBMO) positioned at the executive-level of the enterprise. A properly chartered and established PBMO has the required capabilities to translate the concepts and processes within those standards and guides and to integrate them with the enterprise’s operations, business development, and services methods and processes.

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Editor’s note: Bolles and Hubbard are the authors of The Power of En­terprise PMOs and Enterprise-Wide Project Management (PBMconcepts, 2014); A Compendium of PMO Case Studies – Volume I: Reflecting Project Business Management Concepts (PBMconcepts, 2012); and A Compendium of PMO Case Studies – Volume II: Reflecting Project Business Management Concepts (PBMconcepts, 2016). This series of articles is based on their books, research, courses and executive consulting experience.


 

About the Authors

pmwj42-Jan2016-Bolles-BOLLES
Dennis
L. Bolles, PMP

Michigan, USA

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Dennis Bolles
, PMP, President – DLB Associates, LLC, has over forty-five years of experience in multiple industries providing business and project management professional services. He assists organizations, as a Subject Matter Expert (SME) consultant, to achieve their business strategic objectives with the analysis of their business process improvement needs and development of business and project management capabilities.

He has been a member of the Project Management Institute (PMI) since 1985, received his PMP® certification in 1986 (#81), and is a founding member of the PMI Western Michigan Chapter, serving on its Board of Directors and in several positions since its 1993 inception.

Bolles performs speaking engagements and assists Project/Program/Portfolio Organizations (PMOs) start-up teams begin the planning and implementation processes; conducts on-site organizational project management capability assessments; provides virtual and periodic on-site support for development of business and project management methodologies, policies, procedures, processes. systems, tools, and templates for organizational governance and corporate strategy; assists in the implementation of a project business management methodology that integrates strategic planning, business objective development, portfolio management, program management, and project management processes to achieve strategic objectives and maximize operational efficiency enterprise-wide through the development and management of Project Management Organizations.

Bolles served as the PMI Standards Project Manager who led the project core team to a successful completion and on-time delivery of the Project Management Body of Knowledge (PMBOK®) Guide Third Edition in 2004. He has served on and has contributed to multiple PMI Standards bodies over the past 20 years.

He is a published author of many project management articles, is a PMI Congress/ Symposium/Chapter speaker, and author of Building Project Management Centers of Excellence, AMACOM, NY, 2002. He is the co-editor of The PMOSIG Program Management Office Handbook, JRoss, 2010. He is the co-author with Darrel G. Hubbard of The Power of Enterprise-Wide Project Management: Introducing a Business Management Model Integrating and Harmonizing Operations Business Management and Project Management, hardcover – AMACOM, NY, 2007, now in paperback, revised, and retitled The Power of En­terprise PMOs and Enterprise-Wide Project Management – PBMconcepts, MI, 2014, and of A Compendium of PMO Case Studies – Volume I: Reflecting Project Business Management Concepts, PBMconcepts, MI, 2012 and of A Compendium of PMO Case Studies – Volume II: Reflecting Project Business Management Concepts, PBMconcepts, MI, 2015. He can be contacted at [email protected] and at LinkedIn at http://www.linkedin.com/in/dlballc01. Visit the http://www.pbmconcepts.com/ for information about current and future book projects.

To view other works by Dennis Bolles, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/darrel-g-hubbard/

 

pmwj42-Jan2016-Bolles-HUBBARD
Darrel G. Hubbard, P.E.

California, USA

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Darrel G. Hubbard
is President of D.G.Hubbard Enterprises, LLC providing executive consulting and assessment services. He has over 50 years of experience in consulting, line management, and technical positions. He has served as a corporate executive officer; managed the due diligence processes for numerous mergers and acquisitions; managed information technology, proposal, accounting, and project control organizations; was a program manager on engineering projects; was a project manager on commercial projects; and a designated “key person” under government contracts. He has also held executive positions in, and was professionally licensed in, the securities and insurance industries.

He assists organizations, as a Subject Matter Expert (SME) consultant, to achieve their enterprise’s strategic business and tactical objectives. He provides analysis of their management structures, business processes, general business operations, and project management capabilities, while supplying specific recommendations on business, methodology, and process improvements. Mr. Hubbard also assists companies, as an out-side third party, with the intricacies of the due diligence process in their merger and acquisition activities. He also supports companies in the managerial development and establishment of their Project/Program/Portfolio Organizations (PMOs) and provides work­shops and seminars focusing on the business management aspects of project management.

Mr. Hubbard holds a bachelor’s degree in mathematics and physics with a minor in chemistry from Minnesota State University at Moorhead. He is a registered Professional Engineer in Control Systems in California. Mr. Hubbard joined the Project Management Institute (PMI) in 1978 (#3662), is a charter member of the PMI San Diego Chapter, and was deputy project manager for the Project Management Body of Knowledge (PMBOK®) Guide Third Edition ANSI Standard by PMI. He was the Exhibitor Chairperson for the 1993 PMI North American Congress/Seminar/Symposium, is a published author of many articles, a presenter at several PMI Congresses and other Project Management Symposiums, and a guest speaker at PMI and IIBA Chapter meetings. Darrel is also a Life-Member of the International Society of Automation (ISA).

He is a contributing author to The AMA Handbook of Project Management, AMACOM, 1993 and The ABCs of DPC: A Primer on Design-Procurement-Construction for the Project Manager, PMI, 1997. He is the co-author with Dennis L. Bolles of The Power of Enterprise-Wide Project Management: Introducing a Business Management Model Integrating and Harmonizing Operations Business Management and Project Management, hardcover – AMACOM, NY, 2007, now in paperback, revised, and retitled The Power of Enterprise PMOs and Enterprise-Wide Project Management – PBMconcepts, MI, 2014, and of A Compendium of PMO Case Studies – Volume I: Reflecting Project Business Management Concepts – PBMconcepts, MI, 2012 and of A Compendium of PMO Case Studies – Volume II: Reflecting Project Business Management Concepts, PBMconcepts, MI, 2016. He can be contacted at [email protected] and LinkedIn at http://www.linkedin.com/in/DarrelGHubbard Visit www.PBMconcepts.com for information about current and future book projects.

To view other works by Darrel Hubbard, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/darrel-g-hubbard/