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Setting Policy and Establishing the Charter for the Enterprise PMO

SERIES ARTICLE

Series on Project Business Management and the PMO

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

and

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

USA


Incumbent upon the executives within any enterprise is the requirement to recognize that the management of project-portfolios, project-programs, and projects is a critical business management function necessary to successfully achieve the enterprise’s business strategies and associated business objectives.

Embedding Project Business Management as a core competency within an enterprise requires a business strategy leading to the various organizational functions accepting project management as a business management function. Once accepted, but before embarking on an effective enterprise-wide implementation of project management as a business function, the enterprise’s executives must establish a unique organizational business strategy. That strategy is to create the specific organizational structure known as an Enterprise Project Management Organization (EPMO) at the executive level designated to manage the processes for implementing Enterprise-Wide Project Business Management (EWPM). The business responsibilities of the EPMO are to ingrain the project management disciplines and manage the processes, procedures, practices, templates and tools used to employ those disciplines enterprise-wide within the organization, and, as a strategic business objective, to implement project management as a core competency.

The added business benefits and value, of incorporating the various disciplines of project management into the strategic planning processes of the enterprise’s overall business operations, are to improve those strategic planning processes by adding a Project Business Management perspective. An EPMO, when included within the enterprise’s strategic planning process:

  • Supplies an executive-level project management planning input for development of business strategies;
  • Allows early identification and planning for the implementation of the Project Business Management processes applicable to developing the enterprise’s business strategies;
  • Provides assurance that business strategies do not conflict with those Enterprise Environmental Factors applicable to the organization;
  • Gives assurance that any business strategy to be accomplished by project-related actions and activities will support the enterprise’s vision and mission;
  • Provides a timely and accurate oversight capability to executives for future portfolios; and
  • Enables maturation of the enterprise’s Project Business Management strategic planning processes.

Establishing Enterprise-Wide Project Management (EWPM) practices as a business mindset improves communication and cooperation among all business functions. One value proposition of EWPM is that it focuses the enterprise’s resources on the leadership’s vision, mission, strategies, and related business objectives. This focus enables the enterprise to translate those objectives into executable project-portfolios, project-programs, and projects.

Establishing EWPM requires management to successfully make organizational and cultural changes, because EWPM implementation affects every level of the organization from the boardroom to all the staff below. Implementing EWPM is not easy, but the rewards to the overall enterprise are significant. The entire organization must recognize and adopt new attitudes that embrace Project Business Management best practices as the normal way of working. The successful acceptance of the significant changes affecting the enterprise’s organizational culture requires everyone to understand each change that is being implemented, why is it being done, and how it will affect their job. A number of actions can be taken by management to support individuals in gaining this understanding and help them support the changes that EWPM implementation will bring. Those actions include:

  • Encouraging individual participation in implementing the changes to provide a sense of personal ownership;
  • Acknowledging how the changes will improve the overall enterprise;
  • Articulating the benefits to both the enterprise and affected staff members;
  • Demonstrating that management has the tenacity to see the change process through to successful completion; and
  • Showing how management is providing overall planning and strong management support from start to finish for the EWPM implementation.

Adopting these changes requires the various existing organizational functions to embrace the Enterprise Project Management Organization (EPMO) and necessitates that the following be addressed by management:

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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

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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 en-terprise’s strategic business and tactical objectives. He provides analysis of their man-agement structures, business processes, general business operations, and project man-agement 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 http://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/