PMI Global Congress 2012
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Transcript of PMI Global Congress 2012
EPG - Enterprise Project Governance: A Guide to the
Successful Management of Projects Across the Organization
Session PBM04
Paul C. Dinsmore, PMI FellowDinsmore Associates
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
2“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Presenter: Paul Dinsmore
• President of Dinsmore Associates, international consulting and training company with headquarters in Rio de Janeiro, Brazil
• PMI Fellow since 1994• Author of 20 books on management
and project management
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Presentation Based on
*Released April, 2012. Amacom, NY
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
We´ll Discuss...
• Evolution of Project Management
• The EPG Model
• Case studies: CERN x SSC and Big Pharma
• The EPG Plan
• Implementation Approaches
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Change, Evolution and Projects
•Adam and Eve•Khufu •Leonardo da
Vinci •John Kennedy
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Analogy with Quality Management
• Quality Control• Quality Engineering• Deming and Juran• Quality Assurance• Six Sigma• Quality Awards • Total Quality (TQM)
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Evolution of Project Management
•Single Projects•Network planning ( PERT-CPM-PDM)•Software•Multiple projects and Programs•Portfolios•PMOs •CPMOs•Enterprise Project Governance
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
EPG – A MODEL FOR PROJECTIZING ORGANIZATIONS
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Present Scenario
• World economy in slump
with countries in trouble: Southern Europe
• Companies under increased pressure to
produce faster, cheaper, better
• Constant search to improve overall
productivity
• Since Sarbanes Oxley, Governance seen as
partial solution for improving performance
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
What is Enterprise Project Governance ?
An umbrella held by upper
management that guarantees
projects are:
• Aligned with overall strategy
• Balanced with corporate priorities
• Consistent with established objectives
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Components of EPG
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Strategic Alignment
Effective EPG requires:
• Strategic direction understood by the organization
• Permanent monitoring of strategy implementation
through project management
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Implementation of Strategy Through EPG
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Risk Management
• Directing, including planning and
strategic integration
• Implementating of standards and guidelines through
training
• Executing, including registering, retrieving and
reporting
• Controle & Improvement of progress, lessons learned
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Portfolio Management
“The right combination of the right projects”
This requires:• Balance among the projects competing for resources• Criteria for prioritizing projects
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Organizing for EPG
Organizing for EPG is based on four pillars:
• Governance• Competency• Processes• Culture
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Internal Stakeholders
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
EPG Performance Evaluation
• Establish performance topics
• Identify KPFs
• Create performance indicators
• Assign accountabilities
• Report performance
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Transformation via Change Management • EPG Objective: scope e vision
• Interactions: relationships and communication
• Organization: structure, roles
and responsibilities
• Processes: information, methodology, control
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Why Implement EPG?
• Market demand
• Technological advances
• Shareholder demand
• Governamental requirements
• Need to innovate
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
When to Implement EPG?
• External pressure for more effective
delivery of projects across the enterprise.
• Internal dissatisfaction with the status quo.
• A viable plan
• Leadership capability
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Where to Implement EPG?
In a fertile setting with favorable stakeholders:
• Preferably at a high level in the organization, or
• In a business unit experiencing project difficulties where managment is searching for solutions
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
CERN – European Organization for Nuclear Research - Switzerland
“Superconducting Super Collider” – Texas, USA
Governance is key to Project Success or Failure
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
In July, 2012, CERN announced the discovery of the Higgs boson, known in the media as the “God particle”.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Big Pharma: The Challenge
• Expiration of patents
• Broken patents
• Need to change focus: develop projects aimed at re-
organization, and processes, with commercial slant
• R&D projects decreasing in profitability
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
• CPMOs operating at high levels
• Increased emphasis on training in PM
• Programs aimed at creating a PM culture
Big Pharma: Some Adjustments
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
The EPG Plan: The Road to Transformation and Success
• Decision-making Processes
• Stakeholder Management
• Performance Evaluation
• Transformation
• Information
• Context & Culture
• Directing
• Strategy alignment
• Risk Management
• Portfolio Management
• Structure, Roles and Responsibilities
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
The Plan
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Three Approaches
• Board
• CEO
• Bottom UP
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Board- Sponsored EPG
Applicable in some organizations, through ad hoc
committees, such as:
• “Strategic Planning and Implementation”
• “Oversight of Strategic Initiatives ”
• “Strategic Product Development”
• “Special Events and Programs.”
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
How the Board Can Influence
• Require project prioritization criteria
• Promote EPG implementation
• Provide oversight (without micro-managing)
• Insist on periodic evaluations of project management
maturity.
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
CEO-Sponsored EPG
Responsible for interface between company strategists and the implementers. Here are 3 organizational approaches:
• Chief Project Officer: C-level responsibility for projects
• Corporate PMO: strategic-level project management office
• Program Office: responsible for strategic and multiple
projects
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Bottom Up Approach
Some ideas:
• Intensify training programs in project management across
the organization
• Stimulate use of project management in all types of
projects such as engineering, IT, R&D, HR, Shared Services
and Marketing
• Identify potential sponsors
• Encourage development of PMOs
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
What can you do to promote the cause?
3 Initiatives:
______________
______________
______________
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
We Discussed...
• Evolution of Project Management
• The EPG Model
• Case studies: CERN x SSC and Big Pharma
• The EPG Plan
• Implementation Approaches
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Points to Remember
• Power, Politics and Influence are ever-present factors in
managing stakeholders in the EPG environment.
• EPG constitutes a governance umbrella under which reside:
portfolios, programs and projects
• Different approaches can be used to move an organization
towards EPG
• EPG is the organizational and strategic evolution of
the project management profession
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Thank you for your attention!
-- Paul Dinsmore
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
Contact Information
Paul Dinsmore
+5521 8744 5009