From The Editor's Desk

For the inaugural debut of this column I would like to take this opportunity to clear up any confusion there may be over the subjects of Enterprise Project Management (EPM), Project Portfolio Management (PPM), and OPM3. Everything stated in the column will of course be from my perspective and using my interpretation of the definitions of all three. If you feel I am in error on any point, please feel free to drop me a note.

I continue to find individuals who make statements like, “PPM is the new EPM,” or “OPM3 will replace EPM.” I even had someone tell me that PPM was the umbrella under which EPM operated. (I think my head spun around a few times on that one :-) Why is there so much confusion? Well I think the obvious answer is that most people have heard of EPM, but never knew what it really meant.

So let's start clearing the air by turning to Paul Dinsmore, one of the leading authorities on EPM, for his definition of EPM. Mr. Dinsmore states in his 1999 pioneering book, “Winning Business with Enterprise Project Management,” defines EPM to be “the management of organizations by projects.”

He also stated in one of his EPM presentations,

“Enterprise Project Management is based on the principle that prosperity depends on adding value to business, and that value is added by systematically implementing new projects of all types, across the organization.”

My interpretation is that since projects are used to implement almost anything an organization wants to accomplish, by default this means projects are extremely important to an organization’s ability to fulfill its goals. So, if projects are this important, then they should be treated as such and the approach to managing projects should be done in an organized, consistent, and visible manner. EPM also calls for organizations to expand its capability to recognize projects even ones that have not been traditionally considered to be projects. Once project has been identified, it should be made as visible as all other projects and executed in a way consistent to the organization’s standard.

Embracing EPM may be a major change in philosophy for many organizations, which of course also would mean a major change to their culture.

However, if CEOs can go from deciding on goals for their organization and then hoping that somehow by magic they will be accomplished, to methodically executing projects to accomplish their goals, it is well worth the effort because the effects can be quite dramatic.

EPM provides the foundation for the implementation any strategy an organization may wish to execute. If an organization wishes to manage by projects and implement strategies through the use of projects, they will need to increase their Project Management maturity dramatically to ensure success.

To help us, Mr. Dinsmore provided fourteen principles in his book to act as a guide to achieving the goal of managing an organization by projects.

1. Developing and delivering faster, cheaper, and better products and services depend on an organization’s ability to cultivate the chicken-and-egg relationship between project management and process management (both need to work hand-in-hand and matured over time).
   
2. Enterprise project management is based on the concept that most managerial energy is expended on the development, planning, and implementation of an organization’s portfolio of projects, as opposed to the running of repetitive operations.
   
3. Successful enterprise project management requires bridging the gap between the company vision and the projects underway, which in turn calls for coordination among corporate strategies, general project alignment, specific project alignment, and project implementation.
   
4. Changes are required in organizational structure and culture, managerial style, and information flow for enterprise project management to be effective.
   
5. The project office is key to ensuring that the project management is effectively applied across the organization.
   
6. In an enterprise project management setting, stakeholder management is a must in order to generate synergy and minimize conflict among key players.
   
7. A key role of executives, sponsors, and managers in enterprise project management is to ask the right questions at the right time during the project cycle.
   
8. Making organizations effective in the management and support of multiple, fast-tracking projects requires top executives to managers who know the basics of managing stand-alone projects.
   
9. Extensive education, training, and modeling of proper project practices throughout the organization are needed to make enterprise project management work.
   
10. The measurement of individual competence in managing projects calls for reaching beyond the knowledge-based testing, into the field of competence assessment.
    
11. Boosting the level of project management maturity across the enterprise increases productivity and contributes to the company’s bottom line.
    
12. Compensation packages consistent with the importance of projects to a company’s success are fundamental for retaining project managers and top team members on projects.
    
13. Communication in enterprise project management covers the spectrum from alignment of company-wide goals on one end to interpersonal communication on the other end.
    
14. Project management will continue to take on new forms to meet the demands of change.

So my understanding is that EPM is a philosophy or a perspective, as much as it is an approach.

Next month we will look at the relationship PPM has with EPM. However, after looking at the fourteen principles I think you probably can guess where we are headed.