Key Characteristics of Enterprise Project Management
Posted by Brad Egeland
In my very first article for PM Tips in December 2008 I wrote about an Engagement Management Organization as opposed to a Project Management Organization. While not exactly the same, the concepts presented below which are based on the book “The Portable MBA in Project Management” contain somewhat similar views in the broad range of thinking that is required with such an infrastructure. It goes beyond looking merely at the project portfolio and into the enterprise as a whole. Projects aren’t mere projects, but an extension of the organization’s strategy, goals, priorities, and investments.
The Enterprise Project Management model establishes an infrastructure that links every project undertaken in an organization with the organization’s long-term vision and objectives. Key characteristics of the model include:
- Strategic alignment of the organization’s projects from the vision and strategy level through the individual project level
- Priority-based selection and routine health checks of project investments
- Multi-project coordination and reporting through a program management office
This three-tiered model provides the framework by which organization, processes, and information technology capability required for maturity can be implemented in an organization. Each level is critical to the successful integration of project data from the strategic level down to the project level. Most organizations struggle with effectively integrating data between these levels. The greatest benefit accrued from doing this successfully is the assurance that all project work can be tied to one or more strategic objectives, thereby eliminating the probability of non-value-added projects.
Three Levels of Integration
Strategic
Level 1, the top level of the model, represents the strategic level of the organization. The governing body at this level is often a strategic executive committee whose role is to define the organization’s vision and mission. In most organizations, the organizational vision and mission are further detailed into key business or strategic objectives. These objectives are the drivers; they determine which projects or initiatives an organization should select to accomplish its higher-level vision and mission.
Program
Level 2, the middle level of the model, represents the program management level. This level is the integration point between the portfolio of projects selected by the strategic executive committee and the individual projects represented in level 3. It serves to bridge the gap between the strategic level of the organization, where the portfolio of projects is established and the project management level where project work is executed.
Project
Level 3, the lower level of the model, represents the activities associated with project management. Organizations performing any kind of project management function are generally operating at this level. The functions performed at this level are operational in nature and are focused on the mechanics of planning and executing projects.
For the purposes of this discussion, the enterprise refers to a larger organizational entity. It should be noted, however, that many of the attributes previously discussed can be applied to lower-level organizational units, even departmental levels, with ensuing benefits. The model described previously has the greatest impact on project success at the corporate or divisional level because corporate strategy, project prioritization, and executive support generally take place at these levels. As noted in my previous article – and many articles before that – executive involvement was one of the attributes of best practice companies that contributes greatly to project success. Therefore, when applied at higher levels of organizations, project success is driven throughout the organization and resultant benefits are greatly magnified.
This article is based on information from Eric Verzuh’s book “The Portable MBA in Project Management.”
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2 Comments to “Key Characteristics of Enterprise Project Management”
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Dana says:
Excellent post – I believe that businesses from 2 – 200,000 people could benefit from some kind of project management solution. This is a great article for those who need to understand project management for their organization – large or small.
Prince2TrainingTime says:
Yep fully agree, most organisations I’ve worked for or with could do with an efficient pm system, in the office we currently use BaseCamp, which is ok but a bit limited. Have you heard of Google Wave? Check it out http://www.youtube.com/watch?v=p6pgxLaDdQw
It could really help project managers, esp for real time collaboration online.