Enterprise Project Management Implementation Methodology

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Requirements for Implementing Effective Project Management in Organizations This methodology is applied within the framework of a corporate project to

    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

    operational issues

    Methodology,systems, processes and procedures are the issues that too many organizations place their primary focus. There is no question that the methodologies,

    1 ?Bates Project Management, Inc., 2004

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

    impact and

    ? automated systems to support the planning and management of all the methods and

    processes used in projects of the organization.

    Figure 1

    Effective Project Environments Model

    Senior Management

    Support and Direction

     PM Organization and Governance

     Project Management Methodology Project Business & Management Technology Systems & Tools Processes & Methodology PM Education & Certification

    Project Managers Management,

    Communications and

     Leadership Skills

Staff Competency Issues

    2 ?Bates Project Management, Inc., 2004

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


    3 ?Bates Project Management, Inc., 2004

Methodology Overview

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.

    Figure 2

    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

    Re-Assessment Requirement

    ? 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

    the project.

? 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:

    4 ?Bates Project Management, Inc., 2004

    ? 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.

    5 ?Bates Project Management, Inc., 2004

    In a large tiered corporate structure it is usually necessary to organize these units by

    organizational levels. Figure 3 graphically described the suggested structure.

    Figure 3

    A Tiered Project Management Governance Model

     Corporate Executive

     Business Unit Corp. PRC Support Unit VP VP



     BU PRC Portfolio Portfolio

     Manager Manager

     BU PMO

     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.

    6 ?Bates Project Management, Inc., 2004

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