Implementing an Enterprise Project Management Environment
By William S. (Bill) Bates
The implementation of enterprise project management is an undertaking that will impact corporate culture and governance. Such an undertaking must be considered to be a serious corporate level project in order to be successful. When one considers that twenty-five percent of the world’s gross product is delivered through projects (PMI Fact
Book 2000), then on average most corporate organizations could also relate at least 25% of their revenue and expenses to projects of all sizes and types. In organizations that deliver their products and services primarily through projects, then the impact of project generated revenues and expenses is much more significant.
A venture into the world of enterprise project management by a corporation or government organization must be prepared to: (1) treat the undertaking as a major project, (2) understand the requirements to accomplish such an undertaking and (3) have a road map to successful completion. This article outlines the general requirements to achieve success and overviews a methodology to provide a road map. The enterprise project management implementation methodology described is based on the methodology developed by Bates Project Management Inc. (Bates)
Requirements for Implementing Effective Project Management in Organizations
Implementing effective project management environments in a company or government agency is much more than buying a new project management software package or a project management training seminar. I propose that there are seven necessary, interrelated ingredients that help ensure a successful implementation of effective project management in your organization. They are displayed graphically in Figure 1.
The seven essential ingredients displayed in the diagram involve:
? management and organizational issues,
? methodologies, systems, processes and procedures issues and
? staff competency issues.
Management and Organizational Issues – The primary three issues
The key to success in implementing effective project environments lies in ensuring that the management and organization issues are always seen by senior management as the key ingredient in the effort. This is evidenced in the "Effective Project Environments Model" that shows (1) "Senior Management Support and Direction", (2) “Project Management Organization and Governance” and (3) “Project Managers
Management,Communications and Leadership Skills” as encompassing all other ingredients.
Methodologies, Systems, Processes and Procedures Issues – The three
Methodology,systems, processes and procedures are the issues that too many organizations place their primary focus. There is no question that the methodologies,
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systems, processes and procedures issues are impoant to opertionalize organizational
project management and will require significant effort and resources to solve. They must
be encompassed within the organization's management direction, support and
leadership. The various methodologies and systems required are:
? project management methodologies and processes,
? the various business and technical methodologies and processes that projects
? automated systems to support the planning and management of all the methods and
processes used in projects of the organization.
Effective Project Environments Model
Support and Direction
PM Organization and Governance
Project Management Methodology Project Business & Management Technology Systems & Tools Processes & Methodology PM Education & Certification
Project Managers Management,
Staff Competency Issues
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To achieve effective project management the staff involved in planning, tracking,
updating, monitoring, reporting and managing projects must have a level of competency
in these areas appropriate for the organization's project environment. In order to ensure that the competency levels are adequate, the organization needs to be able to assess
and educate staff and certify them as competent.
? The staff assessment program should be able to assess staff entering the project
management arena, either as new hires or from internally(?), and determine there
level of knowledge concerning project management, define any areas of deficiency
and prescribe education and work experience solutions.
? A project management education program which trains and educates staff from basic
to advanced requirements should be in place. A complete project management
education program will have many of the characteristics of a graduate degree
program and should be conducted with the same rigor.
? A project management certification program that is by levels from team leader to
project/ program director. The certification program should be based both on
certifiable experience and upon rigorous testing. The current PMI Project
Management Professional (PMP) certification program should certainly be a part of
such a certification program.
An Enterprise Project Management Implementation Methodology
The described methodology was developed to support organizations in establishing and
implementing an effective project management culture and operations. While better and
more effective project management can be implemented for any portion of the
organization, the most effective approach is to include the entire organization. Bates
has developed and uses a five macro-activity methodology that, if properly applied,
should lead to a more successful on-going project operation within the organization.
This methodology is applied within the framework of a corporate project to implement
organization-wide project management. The objective of this project will be to provide a management supported, enterprise wide, consistent and common project management
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The five-macro activities of 3 phases and two subprojects leading to on-going operations
of project management are shown in the Figure 2 and described in summary.
Enterprise Project Management Implementation Methodology
Implementation Phase On Going
Development Phase Assessment & Planning Phase Communications & Change Management Sub-Project
Project Management Organization
& Governance Sub-Project
? Assessment and Planning Phase Commencing with a preliminary investigation of the client organization situation to
plan the assessment, this step assesses both the organizational overall project
management current capability and the staff’s individual current capabilities. Based
on the assessments, a project plan is developed to execute the remaining steps of
? Development Phase
Upon client management approval of the project plan produced in the Assessment
and Planning Phase, development undertakes to:
? Develop or acquire and customize the Project Management Methodology as
? Develop or acquire PMM based training materials as required.
? Define, select, install and test the project management software solution.
? Ensure frequent information inputs to the communications subproject.
? Implementation Phase
The implementation phase normally commences in parallel with the development
phase early activities and includes:
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? Conduct executive and senior management training ? Commence project management training and certification program
? Implement project management software solution service and support
? Implement selected pilot projects
? Review pilot project results and adjust methodology and training materials as
? Proceed to full implementation across the organization based on the developed
? Ensure frequent information inputs to the communications subproject.
? At some defined point after implementation has either reached a major milestone
or is completed, it may be desirable to re-assess the project environment to
ensure that improvement objectives are being met
? Communications and Change Management Subproject
The communications and change management subproject is to ensure constant and
reliable information flow to all to stakeholders and interested parties in the
corporation concerning the Enterprise Project Management Implementation Project.
Its main parts are:
? To develop the project’s communications plan ? To execute that plan to establish and maintain contact with all corporate
stakeholders and impacted employees.
? Ensure good communications links with other portions of the project to ensure
frequent and reliable input about the project. ? To ensure good management of the corporate changes that will be required to
successfully implement and accept the project’s product/deliverable
? Project Management Organization and Governance Subproject
The project management organization subproject is to establish and commence the
operation of the infrastructure necessary to ensure support to the project
management function. In addition to a support structure, the organization should
consider grouping projects by business or support line portfolios. By portfolio
groupings of projects we have a better opportunity to ensure corporate objectives
achievement and prioritization. In addition to the portfolio management approach
for projects, three organizational entities would normally be instituted.
? A Project Review Committee would be established constituted of executives and
senior managers who are significantly impacted by projects in their operations.
This committee would provide senior oversight of the project management
function for the organization.
? A Project Management Office would be established to provide the staff support
necessary to ensure the stability of the project management function. This
organization, reporting at an executive level in the corporation could provide
project management resources for projects, be involved in the career
development and certification of project staff and provide project management
systems, information management and methodology support.
? A Project Managers Council would be formed consisting of all project managers
of the corporation on a volunteer basis to provide a project manager’s view of
current and future needs of project management in the organization.
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In a large tiered corporate structure it is usually necessary to organize these units by
organizational levels. Figure 3 graphically described the suggested structure.
A Tiered Project Management Governance Model
Business Unit Corp. PRC Support Unit VP VP
BU PRC Portfolio Portfolio
Project Project On-Going Manager Ops Council
Project PRC – Project Review Committee PMO – Project Management Office BU – Business Unit
Information and Support to Management and Projects
In summary any approach to implementing enterprise project management is an
organization should be seen as a serious, complex and expensive undertaking that
should always be approached as project. That project needs a very clear and
compelling business case to support its initiation. In order to be successful, the project
to implement effective enterprise project management for the organization should follow
a proven methodology for that implementation.
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