This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
Thursday, July 03, 2003
Questions on Strategic Enterprise-wide Project Management -- David Whelbourn poses some questions in the comment section related to last month's diagram...
This is a nice graphical representation showing the inter-relationships. I have two questions/comments.
1. I just wondered where Programmes and Programme Management fitted also there is a large emphasis in the UK on Benefit Delivery and Benefit Realisation as part of the responsibilities of Programmes.
Programs can either be considered sub-portfolios or meta-projects in the diagram, depending on the size, complexity, and dedication of resources. Regarding benefits, I take a broad holistic view of what should constitute a project or program. In the best of all possible worlds, benefit delivery and realization would be included within project plans themselves, i.e., the objectives, deliverables, and success criteria should be directly related to actual "bottom line" benefits, and thereby go beyond the usual function silo borders, thereby making the process true enterprise-wide project management.
It's not enough to manage the development of a piece of software or a new product and toss it over the wall. Managing the realization of benefit involves the implementation of the new business process the software supports or the marketing, manufacturing and pipeline filling of the new product. The reason we do projects in a for-profit environment is to ring some sort of cash register. Project Management should be used to do so.
The classic case of Harris/Intersil/Fairchild Semiconductor's construction of their Mountaintop, PA production facility is an example of this, building and managing a plan not to just open the doors of the new plant and turn on the equipment, but rather to achieve ramp-up to 90% of the designed production rate. This changed the whole nature of the project, shifting emphasis from the technology and construction to a critical path/chain that included a large component related to acquisition and training of staff, so they would be ready to go when the doors opened and the machines were turned on.
2. How would you see a PMO overlaying this diagram?
The way I see it, a PMO would be intimately involved in the pieces that are on the borders of the three major management processes (strategic, resource, and project). The PMO role would include facilitating leadership in the development of the Portfolio and Priorities, translating them into the Pipeline (perhaps even providing pipeline and cross-project management), and providing facilitation, analysis, and feedback on the Capacity aspect of resource. In addition, I would expect a PMO to provide guidance for consistent enterprise-wide methodolgy or methodologies at the Project level.
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