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The Enterprise PMO as a Business Organization


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

 


 

The need to compete globally, increase market share, reduce costs, and improve profits — all in the pursuit of producing better products and services faster — are just a few of the reasons why most business enterprises seek proven ways to improve time-to-market, cost-to-market, and quality-to-market. Within businesses, the lines between operations business management and project management have become, and will remain, blurred and interlaced. The discipline of Project Management itself has grown and matured during the past 65 years. It now encompasses the management aspects of project-program management and project-portfolio management. Therefore, if all projects are to be planned and managed to provide the desired benefits and value to the enterprise then project management and business management must be integrated within and across the enterprise. It is this integration that we call Project Business Management (PBM) and its sustainable application requires an Enterprise Project Management Organization (EPMO).

To address this, the construct of Project Business Management provides for the utilization of integrated general business management, project-portfolio, project-program, and project management knowledge, skills, tools, and techniques in applying project-portfolio, project-program, and project processes. Project Business Management also places an emphasis on the start-up processes for projects, project-programs, and project-portfolios, making executives and senior management more aware of the impact these processes have on their business practices. The underlying objective is to meet or exceed stakeholder needs, and to derive benefits from, and capture value through, any project-related actions and activities used to accomplish the enterprise’s business objectives and related strategies.

Operations management and project management must coexist within the enterprise’s organizational structure and support the various business aspects and strategies of the enterprise. The PBM construct provides this holistic business view of the various aspects of project management, when coupled with the related business aspects of operations management. Our related PBM Framework and associated Model are based upon our ongoing research of, case studies for, and models of project/project-program/project-portfolio organizations (PMOs) and the application of enterprise-wide Project Business Management to generate enterprise business value and benefits.

To employ Project Business Management, the enterprise as a whole must recognize and adopt new attitudes that embrace project management best practices as the best way of doing project/program/portfolio business. This enables the enterprise to bring the full power of this new competitive weapon to bear in the battle of continued business growth and in many cases ensuring the enterprise’s ultimate survival in today’s highly competitive global market.

The effective use of project management techniques employed by PMOs, on an enterprise-wide basis, has become widely recognized as an effective approach for achieving improvements in all these areas. Some enterprises even view the project/program/portfolio organization (PMO) as a key weapon in their business arsenal to increase customer satisfaction and outdistance the competition.

Establishing senior executive ownership of the Project Business Management and the enterprise PMO within the enterprise is equated with authority in organizational structures; the closer a business unit is to the top, the higher is its actual and perceived level of authority, acceptance, adoption, and autonomy.

Positioning the project business management function at the top in a hierarchical organizational structure establishes its autonomy and thus “ownership” for setting up, distributing, supporting, and managing the application of project management best practices within the enterprise…

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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/