(c) 2006 DLB Associates, LLC All Rights Reserved 1. Definition. Cultural Change Requires: The Driving Forces Behind EPM.

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1 Chapter Meeting September 13, 2006 Program by Dennis Bolles, PMP All Rights Reserved 1 All Rights Reserved 2 Program Outline Overview PM Is A Business Function Critical First Moves Initiating the House of Excellence Governance Standardization Capability Execution All Rights Reserved 3 Enterprise Project Management - Definition Enterprise Project Management is a mindset, a way of communicating and working that is supported by technology. EPM organizes an enterprise s resources in direct alignment with the Enterprises vision, mission, strategic initiatives, and business objectives (VMSO). Enables the enterprise to translate VMSO into executable portfolios, programs, and projects. All Rights Reserved 4 Cultural Change Requires: Mission the degree to which the enterprise knows why it exists and what its direction is Governance. Consistency the company s systems and processes which support efficiency and effectiveness in reaching enterprise business objectives - Standardization Commitment the degree to which individuals at all levels of the enterprise are engaged in and hold that direction as their own Capability Agility the ability of the company to know what Customers want, and the degree to which it can respond to external forces and demands Execution All Rights Reserved 5 The Driving Forces Behind EPM PAIN! Loosing Market Share Competition is Faster to Market Fewer Resources Available Cost Cutting Budget Reductions Customers are demanding it Dynamic Growth NEED ACTION All Rights Reserved 6 All Rights Reserved 1

2 E Benefits Expands PM Practices Enterprise-wide Opportunity to Recognize Successes Facilitates Internal Benchmarking Distribute Lessons Learned Establishes Best Practices Enables PM Training and Development Project Business Management Project Business Management is the integration of General Business Management and Project Management policies, processes, and procedures. Project Business Management begins with Strategic Planning, and progresses through developing Business Objectives, establishing Portfolios that prioritize and manage the authorization of Programs and Projects. All Rights Reserved 7 All Rights Reserved 8 Establishing Enterprise-wide Project Management Establish a E enterprise Structure Requires Careful Planning The first move often determines the outcome of the game All Rights Reserved 9 Important Steps to Take 1) Obtain top executive commitment and support 2) Get middle management commitment & support 3) Assess the current situation 4) Create a E Charter and get it formally adopted by the management team 5) Make a big splash to get everyone s attention All Rights Reserved 10 Important Steps to Take - Continued 6) Create a current Portfolio of Programs and Projects 8) Implement a Project Management Methodology standard 9) Provide Education & Training 10) Sell the concept of enterprise-wide PM whenever you can Establishing Enterprise-wide Project Management Is Not A Trivial Pursuit! Establishing E Enterprise Assessment / Plan to Achieve the Future State Assess the Current State Define the Future State Plan to Fill the Gap All Rights Reserved 11 All Rights Reserved 12 All Rights Reserved 2

3 The Importance of Positioning Position is equated with Authority Position establishes level of Acceptance Position enables enterprise-wide Adoption Position defines level of Autonomy All Rights Reserved 13 All Rights Reserved 14 Vision To create an environment that enables world-class proficiency in managing projects enterprise-wide within the enterprise. All Rights Reserved 15 All Rights Reserved 16 Mission To provide the leadership that will guide the enterprise in providing its Programs, Projects, and Services by utilizing best- in-class class project management methodologies, tools, templates, and technology. Strategy Create an environment within the enterprise that embraces project management as an intrinsic enabler for achieving its strategic initiatives and business objectives. All Rights Reserved 17 All Rights Reserved 18 All Rights Reserved 3

4 Business Objectives To establish and institutionalize project management practices as the natural way to accomplish work and treats it as a business function to the degree that PM becomes part of the enterprises core competency. All Rights Reserved 19 All Rights Reserved 20 Establishing EPM Critical Success Factors Establish Governance Define Standardization Develop Capability Enable Execution All Rights Reserved 21 All Rights Reserved 22 Establishing The E Created E Charter E Charter Management Sign-off Purpose Vision Mission Strategy Goals & Objectives Methodology Critical Success Factors Roles/Responsibilities/Accountability/Authority - Leadership - Consulting - Mentoring All Rights Reserved 23 All Rights Reserved 24 All Rights Reserved 4

5 Enterprise Organization Structure E Reporting Structure Corporate Level E Enterprise-wide Project Management Office Forecasting, Strategic Planning E E = Executive Level Division Level D Divisional Overview & Master Project Planning D D D D = Division Level Business Unit Level BU Business Unit Planning,Scheduling, Reporting BU BU BU BU = Business Unit level Project Level Project Management Office Planning,Scheduling, Reporting Mission-Critical Strategic Projects = Mission Critical Project Level All Rights Reserved 25 All Rights Reserved 26 All Rights Reserved 27 All Rights Reserved 28 Manage Enterprise Resources Limited Resources Capacity And Capability To Do Work Benefits E staffing, responsibilities and skill level requirements change as the enterprise matures. Strategies evolve as maturity progresses Resources Cost Tracking Maturity Path New Opportunity Requires Reprioritization Of the Portfolio Evolutionary state of the E Time Scheduling Tools & Templates Procedures Work Instructions Project Management Process Management All Rights Reserved 29 All Rights Reserved 30 All Rights Reserved 5

6 Develop Standards Establish Project Business Management Standards including: policies, procedures, processes, tools and templates that will be commonly applied to all enterprise portfolios, programs, and projects. All Rights Reserved 31 All Rights Reserved 32 Establishing A Methodology Publish the Project Management Methodology Guidelines (PMMG) Introduction Project Authorization Project Initiation Project Planning Project Execution Project Closing Education & Training PM Templates 1A-1 Update Enterprise Vision and Mission 1A-2 Develop Business Strategies for Next Business Cycle 1A-3 Identify Applicable Enterprise Environmental Factors 1A-4 Define Strategy Prioritization Criteria 1A-5 Develop Strategy Accomplishment Metrics Strategy Initiating ( A ) PBMM Business Strategy Development Model 1B-1 Prepare Strategic Business Plan 1B-2 Prepare Business Cases 1B-3 Prioritize Business Strategies Strategy Planning ( B ) Strategy Executing ( C ) 1C-1 Implement Strategy 1C-2 PerformStrategy Status Reviews Strategy Monitoring & Controlling ( D ) 1D- 1Manage Strategy Change 1D- 2Monitor Strategy Metrics Performance Strategy Closing ( E ) 1E-1 Close Strategy All Rights Reserved 33 All Rights Reserved 34 PBMM Business Strategy Development Initiation & Planning PBMM Business Strategy Summary (Example) OBJECTIVE: ENTRANCE CRITERIA: Management approval to proceed. EPM and PM identified. TASK DESCRIPTION: Initiate Obtain organizational commitment for the project. Setup funding for planning and initial startup activities. TYPICAL INPUTS: Identify Core Integrated Product Development Team members Prepare/open start- up EPA. Proposal/Contract/Sales Order/Project material EXIT CRITERIA: Start- up EPA approved OUTPUTS: Core Integrated Product Development Team members identified and assigned (Required) Approved start- up EPA (Required) All Rights Reserved 35 All Rights Reserved 36 All Rights Reserved 6

7 Education & Training Develop a Project Business Management Education & Training program, which defines education and training requirements, testing criteria, and validation processes for portfolios, programs, and projects. All Rights Reserved 37 All Rights Reserved 38 General Population Education & Training Program Project Teams Project Managers Knowledge Objectives Learning Objectives Assessment Methods Executives & Managers Enabling The Enterprise Develop Education & Training Program Project Management Career Path Qualification Advanced Certification Entry Intermediate All Rights Reserved 39 All Rights Reserved 40 Project Authorization Establish a Portfolio/Program/Project Authorization process to initiate authorization to ensure the use of resources are in alignment with corporate strategic initiatives and supporting business objectives. All Rights Reserved 41 All Rights Reserved 42 All Rights Reserved 7

8 PBMM Business Strategy Development Data Flow Business Objective Planning Process All Rights Reserved 43 All Rights Reserved 44 PBMM Business Objective Development Data Flow Business Objective/Project Prioritization & Selection Process All Rights Reserved 45 All Rights Reserved 46 PBMM Portfolio / Program / Project Process Data Flow Portfolio Authorization Process All Rights Reserved 47 All Rights Reserved 48 All Rights Reserved 8

9 All Rights Reserved 49 All Rights Reserved 50 Review Gate Review Gate Review Gate Initiating Phase Planning Phase Executing Phase Closing Phase Project Readiness Check Capture Lessons learned Capture Lessons learned Capture Lessons learned Enabling The Enterprise Established Monthly Portfolio/Program/Project Reviews PM s Report By Department New Projects WIP Projects Completed Projects (lessons learned) Lessons learned Review All Rights Reserved 51 All Rights Reserved 52 Enabling The Enterprise Provide Hands-on Mentoring & Coaching Assist With Project Starts Cost Benefit Analysis Scope Statement Risk Analysis Baseline Plan Communications Plan Maturing Process PM is fully distributed where it is a core competency Continuous improvement and innovation is common 4. Distributed 5. Sustained Product and project 3. Managed management processes are fully integrated 2. Repeatable Project business management methodology is consistently applied to all projects 1. Initial A Baseline and a E is established All Rights Reserved 53 All Rights Reserved 54 All Rights Reserved 9

10 Implementation Time Line Timing Depends on Level of Support QUESTIONS Develop PMMG Design Distribute PMMG Basic Training Stage Two Maturity Establish PMCoE All Rights Reserved 55 All Rights Reserved 56 Contact Information Dennis Bolles, PMP DLB Associates, LLC Phone: Website: All Rights Reserved 57 All Rights Reserved 10