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Project Manager : Project Manager Dec Jan 2013
www.aipm.com.au Project Manager 25 ENTERPRISE PROJECT MANAGEMENT "Project management trends move in 10-year cycles," says AIPM National President David Hudson. "And at the moment, we are just over halfway through an enterprise project management trend." In other words, if you're not on board yet, it's time to get on board. A 2005 sur vey of senior executives from nancial ser vices, IT, telecommunications, utilities, education, gover nment, transport and manufacturing organisations, carried out by EQuest consulting and presented to AIPM NSW in 2005, traced the evolution from the project o ce to the enterprise project management o ce (EPMO) in the rst years of the 21st century. e evolution began with the project and program o ces, with their focus on single projects, high rates of project failure and narrow assessment perfor mance in ter ms of time and budget. Next came the widespread creation of project management o ces (PMOs), which could administer and manage multiple projects, signalling a shift towards the initiation of business projects and improvement of project management competency across organisations. Finally, the rise of the EPMO began in early 2005, and the project management needs of an entire organisation could be centralised. At this time, PM principles were already providing organisations with substantial strategic advantages, and the EPMO could ensure that all projects aligned with an organisation's needs. In 2005, one in three of the sur veyed organisations had established an EPMO and implemented EPM concepts. Of these organisations, 76 per cent addressed reporting at the enterprise level, while only 40 per cent used the EPMO or EPM concepts to align projects to strategy, and just 22 per cent to manage quality. Five years later in 2010, consultancy r m Business Improvement Architects carried out a global study of the impact of the PMO, and its more recent incarnation the EPMO, on organisational e ectiveness. e landscape, of course, had changed. A global recession meant that budgets had been slashed, in some cases PMOs and EPMOs had been shut dow n, and those remaining were often called on for signi cant cost savings. e study found, however, that PMOs and EPMOs were having a positive impact on their organisations' bottom lines, despite traditional perceptions of them as non-revenue generating and the global economic climate. e key to the EPMO's success in this respect, of course, is to ensure it is working to align projects with corporate strategies. Further reading: Loader, RJ. Enterprise Project Management: Delivering on the Strategic Promise. Find this article on the AIPM website: www.aipm.com.au/ resource/0810055Final00086.pdf ALIGNING PROJECTS WITH STRATEGIC GOALS The value of the EPMO is ensuring that all projects throughout the organisation align with and further its strategic goals. While the nuts and bolts of how to make this happen vary according to the structure of the organisation and what the individual strategic goals are, the main thing is to ensure that decisions about which projects run and which do not are made with a 'strategic thinking' cap on. So, rather than focusing on how much a project will cost to run versus what it will add to the bottom line at the end of the financial year, take a step back and consider: 1 What are the organisation's main strategic goals this year, in five years and ten years? Some organisations will already have distributed their strategic goals among staff so that everyone can work together towards them; in other organisations this stage will require high- level discussions and a potentially protracted consultation process. 2 Which prospective projects would contribute the most to the organisation meeting its strategic goals? If project management maturity and staff development are among your organisation's goals, consider the benefits of the actual process of each project in those respects, as well as the outcomes of each project. Of course, goals may include growth and profit, but keep in mind that doesn't equate to simply running money-making projects -- some projects will promote growth without necessarily boosting the bottom line in the short-term. without reducing its scope can force project managers to sacri ce quality and bene ts by reducing testing or resolving only critical defects. Of course, this a ects stakeholder satisfaction, can increase operational risk and, if employee engagement su ers, incur real costs in recr uitment and training. Hyde suggests, however, that an alter native is possible. "Signi cant cost savings can be achieved without disr upting the organisation, its sta or its customers," he says, by combining two approaches: 'systems thinking'-- considering a problem as part of an overall system and guring potential solutions in terms of overall impacts and outcomes rather than as reactions to speci c events -- and ' business excellence' -- a systematic, holistic approach to assessing and improving perfor mance. is would increase the focus on value- adding activities, reducing time wasted on adding 'value' that is not recognised by the client or repeating steps that were not done right in the rst place. Overall, the key to e ciency is excellence. Project or process performance is measured in terms of quality, dependability, speed, exibility and cost, and capability needs to be built in this order to improve the bottom line. "Cost reduction," says Hyde, "relies on a cumulative foundation of improvement in the other performance objectives before sustainability reductions can be achieved." Further reading: "Systems thinking and project management -- time to reunite" . International Journal of Project Management 11.2 (1993): pp111-117. (
Project Manager Oct Nov 2012
Project Manager Feb Mar 2013