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Vision, Mission and Policies for OPBM and PBMO

SERIES ARTICLE

Establishing Vision, Mission and Policies for Organizational Project Business Management (OPBM) and the Enterprise-Level Project Business Management Organization (PBMO) – Executive Overview

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


Introduction

Executives should view organizational project management as a specific business management con­struct or concept just like Financial Management, Accounting Management, Information Technology Man­agement, Production Management, Engineering Management, or Operations Management—each of which report to the enterprise’s executive level and provide specific business or technical services and support, on an enterprise-wide basis. That is why we use our term of Organizational Project Business Management (OPBM) to emphasize the business aspects represented by the concept of organizational project manage­ment. Organizational Project Business Management, as with Accounting Management, requires a func­tional organization to provide, implement, and maintain the necessary and associated infrastructure within the enterprise. For OPBM, that functional organization is the Project Business Management Organization (PBMO) operating at the senior executive-level. A chief project officer, who reports directly to the chief executive officer, leads the PBMO and is responsible for implementing and managing Project Business Management on an enterprise-wide basis.

For OPBM to be inculcated across the enterprise, the enterprise’s long-term business vision and mission for Organizational Project Business Management must be explicitly defined, cover the implementation and use of the Project Business Management Organization, and be formally issued and mandated by executive management.

Need for Visions, Missions, and Policies

Executives and senior managers need to care about establishing formal institutionalized vision, mission, and policy statements for all of the enterprise’s operational business management functional organizations, that are required to implement and manage those business management functions enterprise-wide, including Organizational Project Business Management, and its Project Business Management Organization.

Why? Because, a properly integrated set of vision, mission, and policy statements accommodates the numerous business and management factors driving the enterprise’s project-portfolios, project-programs, and projects, improves organizational communication, reduces procedural deficiencies, minimizes lost time, and optimizes resource distribution and application. Formally stated visions, missions, and policies enhance the psychological and occupational work environment and improve the physical business environment in which we all live and work. In today’s competitive, litigious, and project environments, a structured, communicated, and concise set of current visions, missions, policies, and the supporting system of methodologies, processes, procedures, and practices is a simple and effective means of establishing and maintaining prudent project/program/portfolio business management. It is a proven means of helping sustain profitability and delivering value and benefits. It is also the first and best defense against un-welcomed litigation.

Formalized visions, missions, and policies must exist to support the enterprise’s development of the methodologies and processes and are required to generate the formal implementing procedures and prac­tices. These documents support the enterprise’s staff so they can repeatedly make the same types of prudent business decisions while routinely and successfully performing the same kinds of tasks. Visons, missions, policies, and procedures establish a large portion of the business environment in which operational and project/program/portfolio personnel work, and they are an important determinant role in instituting organ­izational effectiveness. They direct or influence how personnel resources perform work and how other types of resources are used effectively and efficiently. From a human and organizational effectiveness standpoint, those policies and procedures also determine how personnel reach decisions; how personnel perform when doing their work; and how the enterprise reacts to the performance of portfolio, program, and project per­sonnel.

An enterprise’s set of vison, mission, and policy statements are also indicative of an enterprise’s value system—its beliefs about employee behavior, its concepts of community, and its professional responsibil­ity. What an enterprise espouses will establish how the enterprise is perceived by its employees, customers, suppliers, regulators, shareholders, stakeholders, and community.

Therefore, enterprises must ensure their OPBM and PBMO vision, mission, and policy statements are consistent with the enterprise’s overall vision, mission, values, culture, beliefs, and long-term business strategies and business objectives.

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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 Author

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 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/dennis-bolles/

 

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 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/