"Enterprise Project Management Systems and Practical Project Management"
By Michael Beard, PMP Partner, Value Based Project Management
Enterprise Project Management systems (EPM) have been around for a number of years but not as long as project management. In today's workplace EPM systems are often bought and implemented with little or insufficient thought regarding the synergy, integration, and level of project management capability required to generate full value of the EPM system for the enterprise. Most systems are purchased with the good intentions of increasing productivity and communication, which they do. However, without understanding the level of project management capability and synergy required, the purchase of an EPM system is no different than buying a gas guzzling car when you know your daily commute is a roundtrip of 200 miles. There are companies today that have purchased complete EPM systems that are used for no more than time accounting, resulting in waste and loss of value.
"We Need a PMO Now That We Have Purchased an EPM"
Some companies believe that setting up a PMO will be the cornerstone of fixing any problems and ensure an EPM system deployment will be successful. Having over 15 years managing and directing in PMOs with four and five year programs with values up to $100 million we know that the PMO is not the Silver Bullet because you are purchasing an EPM system. Also, an EPM system is not the Silver Bullet for fixing enterprise problems.
An enterprise must start out by understanding its current maturity capability and develop a roadmap for success. Perform a project management maturity or capability maturity gap analysis of the enterprise. As a part of the gap analysis ensure there are specific steps or projects that need to be taken to ensure success. Understand the enterprise requirements to enable success and add value. Have a solid estimate of the cost for the desired capability. We state the "desired level of capability" because achieving any level cost the enterprise but why try to achieve a level 4 capability when level 3 with certain unique aspects of level 4 or 5 will suffice, cost less, and result in lower overheads.
The old saying "If you don't know where you are going any path will do" really applies.
"We Need an EPM System Now That We Started a PMO"
There are companies that instantly believe that since the formation of a PMO has started an EPM system is required. What these companies need to do is go back to the drawing board and replan the development of a PMO that includes an EPM system. An EPM system introduced to an enterprise with a relatively new PMO results in a tremendous drain on resources diverted off of projects/programs, increases the conflict mediums during the initial "Forming and Storming" stages of both deployments, increases risks to current projects/programs, and delays the initiation of future projects/programs.
What was envisioned to take 6 months suddenly turns into years. The PMO deployment has stalled and is seen as a wound that has generated gangrene and needs to be amputated. The system that was purchased sits idle or is under utilized by people at a tremendous cost to the enterprise and the corporate bottom line.
The development of a PMO must have a plan that is strategically and tactically defined to ensure that the introduction of new systems does not degrade the expected performance gains. The enterprise must view the development of a PMO as a system, something rarely done, and not just another functional department. Real, value added PMOs take years to mature and generate benefits.
"We Just Purchased an EPM System so Let's Do Project Management"
This scenario is occurring every day. Just like the other two scenarios, learning project management after purchasing an EPM system will ultimately result in disaster, missed expectations, reduced moral and productivity, "brain drain", and more. We have seen and know of many failures because of enterprises taking this position. The cultural shock alone will reduce an enterprise's effectiveness immediately.
As a company, if this has taken place we suggest an immediate drive to ensure people are trained to a competent project management level. But do not stop there. Training alone does not solve the entire problem. Acceptance of training in the workplace that is undergoing a drastic cultural change requires project management mentoring, executive coaching, and On-the Job-Training (OJT), something that has been unheard in most enterprises.
Summary
Failures are costly in the current economic environment. We believe that numerous failures could have resulted in success and value added if a systems approach was utilized to accomplish the intended objectives. If your company is contemplating changes look at the forest, the trees, and use a systems approach to deployment that considers all known parameters.
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