From The Editor's Desk

To recap from part one, we are looking at the definitions of EPM, PPM, OPM3, and the relationship each has with the other. Now that we have defined EPM (see Part I), what is Project Portfolio Management (PPM) and how does it relate to EPM?

Simply put, PPM is the practice of managing an organization's projects as a visible collection (or inventory), combined with a process which ensures that the projects in the collection contribute directly to the organization's goals.

By ensuring an organization's projects align to their goals and then managing them as a collection, the organization should realize the following benefits:

•  Elimination of waste from redundant projects
•  Ability to strategically manage risks inherent in projects
•  Project prioritization and resources are optimized
•  Helps to maximize the ROI on project investment
•  Enables an organization to more quickly react to external influences such as  market demand.

Of course this is not a comprehensive list, but it gets the point across.

So how does PPM relate to EPM? To answer that question, lets remind ourselves that EPM is the philosophy of managing an organization by projects. So what contribution does PPM make toward this goal? The answer is, a very substantial one. PPM provides the basic tracking/monitoring and control of the projects in the scope of the portfolio.

So if you implement PPM have you achieved the state of EPM? The answer is of course no. Just because you are choosing the appropriate projects and tracking their progress does not mean that the level of success of those projects is going to change to a large degree. It also does not mean that all of the activities in an organization that have project like attributes have been included in the portfolio.

PPM addresses how to track/monitor and control a project, but does not address how an organization should organize themselves to tackle the cultural change aspect of moving toward a EPM lifestyle. This is where the concept of a Project/Program Management Office (PMO) comes into play. The PMO is one of the key organizational structures used to assist an organization down the path toward EPM enlightenment. Depending on the PM maturity of the organization, the responsibilities of the PMO will vary. PMOs have traditionally been responsible for a variety of the following:

•  PM Training
•  PM Methodology and Standards
•  Project Portfolio Management Implementation and Sustainment
•  Metrics/Performance Monitoring
•  Process Improvement Implementation (CMMI, ISO, Six Sigma, etc.)
•  Vendor Management
•  PM Support (assist with project Startup, Closeout, Issue Resolution, etc.)

As you can see a PMO is essential to improving an organization's PM maturity. Although many establish PMOs sprinkled throughout their organization, few have taken the leap to establish an Enterprise PMO (EPMO). EPM is a relatively new concept so it is not surprising that few have embraced managing their entire organization by projects. Establishing an EPMO should be an obvious step toward fulfilling the EPM vision.

Next month we will continue our 3 part series with a look at the relationship OPM3 has with EPM.