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The Enterprise PMO in Operations Business Management

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

 


Integrating Projects with Strategic Initiatives and Business Objectives

One of the primary goals of employing Enterprise-Wide Project Management (EWPM) is establishing an Enterprise Project Management Organization (EPMO) to implement a more effective and efficient business model, which focuses on completing the strategic initiatives and associated business objectives being set by executive management for the enterprise. Realizing this goal requires the enterprise’s projects to be aligned with those strategic initiative and related business objectives. The EPMO can be the effective ex­ecutive-level functional business organization in accomplishing this goal.

Merging the business aspects of project management processes with the enterprise’s existing opera­tional business processes requires performing an analysis of how the enterprise is currently developing its business strategies and accomplishing the related business objectives. The analysis must also determine those processes requiring modification to promote a management-focus on the business of attaining those initiatives and objectives.

The executive management of the enterprise must determine where the internal organizations are with respect to effectively employing enterprise-wide project management from a business perspective, and then create a clearly documented baseline against which business-oriented improvements can be measured. Two key points of understanding should be drawn from that baseline analysis. These points relate first to strategic and tactical planning and secondly to the planning and execution of projects, project-program, and project-portfolios. Those points are: 1) the enterprise has identifiable enterprise environmental factors that are related to achieving its vision and accomplishing its purpose, and 2) it has also developed organizational process assets that directly affect the ability to accomplish the business objectives and successfully perform the associated projects. To be useful, this baseline needs to include the:

  • EPMO business purpose for the enterprise;
  • EPMO vision/mission related to the enterprise;
  • EPMO functional organizational structure definition;
  • EPMO related Organizational Process Assets identification; and
  • EPMO related Enterprise Environmental Factors identification.

This management documented baseline is essential to:

  • Identifying where the operational business processes need to be modified;
  • Streamlining some of the project-related business operational management processes;
  • Identifying where the project management processes need to be modified;
  • Folding project management business-oriented project-processes into the current business-management operational-processes;
  • Overseeing the management of project-portfolio, project-programs, and projects from the corporate office level;
  • Having the capability to quantitatively demonstrate the added value of project management;
  • Integrating project management with operations management in an effective manner;
  • Institutionalizing project management as a core business management competency;
  • Controlling enterprise operational and administrative cost levels (and profits if applicable) while implementing the EPMO;
  • Showing, in a demonstrable way, the benefits gained from establishing an EPMO;
  • Achieving the highest project management maturity level consistent with the enterprise’s needs; and
  • Sustaining project management as a functional business organization.

The task of senior executives is first to analyze and then to understand how the management discipline of project management can interoperate with the other management disciplines within their enterprise and how project management can support business operations. This analysis task should:

  • Identify, with a project management focus, the key operational aspects of the enterprise;
  • Document which management aspects are only operations business management processes;
  • Document which management aspects are only project business management processes;
  • Determine which aspects require folding project business management oriented project processes into the project-related business management operational processes; and
  • Determine where within the enterprise and at which organizational levels to integrate project management with operations management.

Many of the management analysis techniques that support executives in maintaining control in a dynamic and changing environment are based on one premise: break the process or operation down into manageable pieces. This premise is founded on the concept of cascading analysis. The management technique takes the entire process or operation and dissects it into successively lower and lower levels of detail until management understanding is possible and control can be ensured. In most processes, this means until a level of detail is reached where the management actions and activities can be quantified. This analytical concept is used in many management areas including:

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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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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/