‘WE DELIVER’

 

Background

This article examines the approaches and rationale for implementing an Enterprise Programme Management Office (EPMO) within an organisation about to undertake a strategic transformation and how the EPMO can help achieve the organisation’s strategic vision and objectives. It is based on recent real life case studies.
The paper also considers the benefits of an EPMO over a PMO and the steps needed to implement it quickly and effectively using a pragmatic approach, whilst supporting the fundamentals of PMP Project Management and ensuring that planned benefits are realised.

The PMI Learning objectives include:

• The challenges of Project Management and PMOs

• A clear understanding of the evolution of the PMO

• An overview of a development and implementation approach for an EPMO

• The benefits of an EPMO

• How the EPMO approach enhances the PMI Knowledge areas

• Project Scope Management

• Project Communications

• Project Risk Management

along with its interaction with others.

A fuller version of this paper was recently presented at PMI’s 15th International Conference which was held in Bahrain in January 2015.

This article examines the approaches and rationale for implementing an Enterprise Programme Management Office (EPMO) within an organisation about to undertake a strategic transformation and how the EPMO can help achieve the organisation’s strategic vision and objectives. It is based on recent real life case studies.
The paper also considers the benefits of an EPMO over a PMO and the steps needed to implement it quickly and effectively using a pragmatic approach, whilst supporting the fundamentals of PMP Project Management and ensuring that planned benefits are realised.

A fuller version of this paper was recently presented at PMI’s 15th International Conference which was held in Bahrain in January 2015.

 

The Challenges of Project Management and PMOs

 

Based on the author’s experience the constraints and challenges faced by many organisations today include:

• Lack of focus - too many programmes and projects with many not adding value;
• Insufficient project management and technical skills and capabilities;
• Governance and project management disciplines and processes not well developed, not adhered to and not streamlined ;
• Functional (hierarchical) rather than matrix (cross departmental) based project organisations; likewise passive rather than directional PMOs
• Lack of understanding that corporate culture is as important a success factor as strategy;
• EPMOs still remaining in early stages of development but the opportunity exists for them to manage major transformational change and reap significant corporate benefits.

 

Our challenges as reported by PMI’s Pulse:

PMI’s Pulse (2014)

 

 

The challenges facing our PMO’s are similar to projects; as with projects most PMOs fail:

Gartner, 2014

Association of Project Managers, 2011

The Standish Group, 2013.

 

So what can we learn from organisations around the world who have recently delivered their strategies and successful business transformations in short timescales, typically in 2-3 years?

An important common success factor is that they have set up an EPMO as a central centre of excellence, charged with co-coordinating and delivering strategy through Portfolios, Programmes and Projects. The rationale for and execution of an EPMO has never been more urgent.

“To cut across silos and connect strategy to program execution, Gartner predicts that most C-suites in the largest global organisations will rely on activist Enterprise Program Management Office (EPMO) leaders by 2017.” Gartner, 2014.

This prediction is driven by three distinct factors:

• The first is the increasing pressure towards innovation and differentiation:
• The second is that organisations need to significantly improve their ability to execute strategy and do it faster:
• The third is the continuing backlog of projects and traditional PMO failure to deliver.

 

PMI recognises three types of PMO all of which have not consistently delivered what organisations of today require:

 

Figure 1. Types of PMO – Project Management Institute, (2013).

 

Note: none of the above reach 5 star performance, whilst “68% of stakeholders perceive their PMOs to be bureaucratic”. Gartner (2013).

The bottom line is that there is “too much focus on the theory of project management” and “too little focus on the business in which project management is applied”. Gartner (2013).

In the authors’ experience there should also be more focus on what works in practice and whilst theory and standards are the foundation upon which project managers preach a practitioner is worth more than an academic any day.

 

Figure 2: Based upon: PMO evolution over the years –

EPMOs stepping up on the PMO maturity path to maximise the value of the return. Association of Project

Managers, 2013.

 

The EPMO should therefore drive and support the organisation to ‘Become a High Performing Business’ ; by delivering and releasing the full potential of the organisations strategy by:

• Optimising your strategy;
• Assessing true value drivers;
• Maximising portfolio potential;
• Undertaking maturity audits and realigning against organisational priorities;
• Providing effective and efficient governance to deliver change through your people;
• Mobilising and motivating the right resources to remove constraints and deliver results.

 

 

The approach taken to the implementation of the EPMO is important but it’s easy to take the wrong path and get lost if you don’t have conviction or know what you’re doing.

One vital tip - to give the EPMO and the business the best opportunity for success run it as a programme to provide clear objectives, direction, deliverables, justification, accountability and value.

 

Implementation Approach for an EPMO

The three key objectives of the EPMO are:

• • Successfully deliver the organisation’s 3 / 5 year Strategic Plan by directing the delivery of the supporting Portfolios, Programmes and Projects;
  • Bring about required Business Transformation and Change, along with supporting IT Infrastructure;
  • Manage the Investment whilst delivering the Benefits.

 

It is recommended that the EPMO is developed and implemented as a Strategic Programme – and it should lead by example. The key steps are shown below:

 

Figure 3: The key implementation steps for an EPMO

Set the Foundations, Vision, Mission, Objectives & Values

As with any programme the formation of the EPMO should be ‘set up for success’ and run as a programme using PMBOK as a guide. The vision, mission and objectives should be developed and agreed with the organisation’s board / executive committee. This is best achieved by the Head of the EPMO working directly with the board / executive committee.

In some of the most successful implementations the EPMO is formed as the strategy is being developed and works with the board / executive committee on strategy formulation. This leads to a common understanding of the strategy and the priorities which will prove invaluable during the execution of the resulting Portfolios, Programmes and Projects.

The role of an EPMO typical embraces:

• Optimising and delivering strategy, considering alternatives, and seeking to remove decision bias;
• Ensuring the organisation’s strategy stays ahead of trends;
• Responsibility with Executive for Transformation and facilitating and driving the ‘Leadership Factory’;
• Prioritising and maximising the portfolio potential and assessing any changes;
• Managing and directing the strategic Portfolios, Programmes and Projects;
• Providing effective and efficient governance to deliver change through your people;
• Assessing and focusing on value add;
• Mobilising the right resources in line with the organisations priorities (re-allocating from secondary priorities);
• Mitigating risks and constraints;
• Reporting and controlling;
• Assisting in communication vision, objectives and achievements.

 

While setting the foundations for development of the EPMO it should produce the standard Project initiation documents: Justification/Business Case leading to Programme Charter, Plan and Stakeholder Register, Communications plan and RAID Log.

See PMP documentation for Project Initiation:

https://pmp-practitioners.com/product-category/initiating_phase/

Note: successful communication is important to success in both the implementation of the organisation’s strategy but also the EPMO; the perception of PMOs needs to change: they need to be more proactive and less bureaucratic.

Build a Case and a Compelling Story

It is important to build a Business Case for the EPMO and the organisation’s strategy. Ensure that all the Board members and Executive understand the mission and vision along with their role within it.

 

Analyse Stakeholders, Culture and Behaviors

The EPMO needs to undertake not only an analysis of its internal and external stakeholders but also culture and behaviors, and the Enterprise’s Environmental Factors.

Note: Effective team building is one of the prime responsibilities of the EPMO both upwards and downwards throughout the organisation.

 

It is also important to remember that with the advent of the global economy comes an increased interaction between people of different countries and an increase in the need to deal with cultural differences. Ralf Mueller and Rodney Turner, (2004).

Hence communication and team working is key.

 

Undertake a Gap Analysis and develop Approach

Organisations will normally have existing Project Management Offices, Portfolios, Programmes, and Projects all in flight. Organisation will also have established ‘Organisational Process Assets’ which cover standard processes and procedures.

A “Current State Situation Analysis” (see our future article on “Maturity audit’) review should be undertaken leading to the development of a Gap Analysis, from which the approach for implementation can be developed.

The Current State Situation Analysis / Maturity audit should consider:

• Existing Portfolios, Programmes and Projects taking into account strategic alignment, priority, value, complexity, resourcing timing and dependency;
• Status and performance on programmes and projects that the stakeholder is involved in, differentiating between strategic, operational and system support projects, reviewing how projects are delivered, and benchmarking against best practice;
• Governance structures including roles and responsibilities of all key parties, reporting lines and routines, and reporting content;
• Review, approval, decision making, and actioning and feedback processes;
• Understanding roles and responsibilities and engagement in project management;
• Identification of key business and individual objectives, drivers and constraints;
• Understanding of and compliance with project governance and procedures;
• Understanding formal and informal reporting lines and communications, organisational modus operandi and barriers to change in the organisation;
• Review of programme project risks assumptions issues and dependencies (RAID);
• Assessment of skills and resources related to programmes and projects;
• Identification of improvements including quick wins/fixes;
• Review and identification of project management training and personal development needs.

 

The review should also rationalise non -strategic activity ensuring that the EPMO and organisation’s efforts will concentrate on Strategic Portfolios, Programmes and Projects.

The gap analysis will identify the gap between where the organisation is today and where it wishes to be. The EPMO can then develop the approach to achieve what is required to deliver the organisations strategy.

Plan, Engage and Deliver

Based on the outputs of the activities above the EPMO should then develop a roadmap and supporting plans with the board / executive committee for Strategic Portfolios, Programmes and Projects to deliver the organisation’s strategy.

Regular monitoring and control is also important. We recommend that this should include formal monthly board / executive committee reviews along with quarterly ‘deep dive’ reviews of the Strategy, Portfolios, Programmes and Projects highlighting progress against the key objectives of the organisation and the objectives of the EPMO.

Conclusion

To conclude the implementation of an EPMO aids the organisation in:

• Delivering the strategy;
• Establishing the ‘Leadership Factory’;
• Working with the Executive;
• Jointly delivering Transformation;
• Managing and directing the delivery of the organisation’s strategic agenda.

 

Have a good journey!

 

Reference

1. Project Management Institute, Pulse (2014). The High Cost of Low Performance - 4
2. Gartner (2014).PPM & IT Conference June 9-10 Summit 2014 in London, UK - Special Briefing - 4
3. Lindsay Scott, (2011).Association of Project Managers, (2011). The Business Driven PMO, posted on 16 February, 2011 http://www.apm.org.uk/news/business-driven-pmo#.VDcAF2ddWAg – 4
4. The Standish Group, (2013). The Standish Group Report, CHAOS - 4
5. Gartner PPM & IT Governance, (2014). June 9-10 Summit 2014 in London, UK - 5
6. Project Management Institute (2013), A Guide to the Project Management Body of Knowledge, 5th Edition, Page 11–12 Project Management Office - 6
7. Gartner PPM Summit, (2013) – 7
8. Lindsay Scott, (2011). Association of Project Managers, The Business Driven PMO, posted on 16 February, 2011 http://www.apm.org.uk/news/business-driven-pmo#.VDcAF2ddWAg.-7
9. Ralf Mueller and Rodney Turner, (2004). Innovations Project Management Research, “Cultural Differences in Project Owner-Project Manager Communications”-12.