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PMI Global Congress 2012
1.
EPG - Enterprise
Project Governance: A Guide to the Successful Management of Projects Across the Organization Session PBM04 Paul C. Dinsmore, PMI Fellow Dinsmore Associates “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
2.
Presenter: Paul Dinsmore •
President of Dinsmore Associates, international consulting and training company with headquarters in Rio de Janeiro, Brazil • PMI Fellow since 1994 • Author of 20 books on management and project management “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only. 2
3.
Presentation Based on *Released
April, 2012. Amacom, NY “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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We´ll Discuss... • Evolution
of Project Management • The EPG Model • Case studies: CERN x SSC and Big Pharma • The EPG Plan • Implementation Approaches “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Change, Evolution and
Projects • Adam and Eve • Khufu • Leonardo da Vinci • John Kennedy “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Analogy with Quality Management
• Quality Control • Quality Engineering • Deming and Juran • Quality Assurance • Six Sigma • Quality Awards • Total Quality (TQM) “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Evolution of Project
Management • Single Projects • Network planning ( PERT-CPM-PDM) • Software • Multiple projects and Programs • Portfolios • PMOs • CPMOs • Enterprise Project Governance “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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EPG – A
MODEL FOR PROJECTIZING ORGANIZATIONS “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Present Scenario • World
economy in slump with countries in trouble: Southern Europe • Companies under increased pressure to produce faster, cheaper, better • Constant search to improve overall productivity • Since Sarbanes Oxley, Governance seen as partial solution for improving performance “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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What is Enterprise
Project Governance ? An umbrella held by upper management that guarantees projects are: • Aligned with overall strategy • Balanced with corporate priorities • Consistent with established objectives “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Components of EPG
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Strategic Alignment Effective EPG
requires: • Strategic direction understood by the organization • Permanent monitoring of strategy implementation through project management “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Implementation of Strategy Through
EPG “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Risk Management • Directing,
including planning and strategic integration • Implementating of standards and guidelines through training • Executing, including registering, retrieving and reporting • Controle & Improvement of progress, lessons learned “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Portfolio Management
“The right combination of the right projects” This requires: • Balance among the projects competing for resources • Criteria for prioritizing projects “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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“PMI” is a
registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Organizing for EPG
Organizing for EPG is based on four pillars: • Governance • Competency • Processes • Culture “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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“PMI” is a
registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
19.
“PMI” is a
registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
20.
“PMI” is a
registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
21.
“PMI” is a
registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Internal Stakeholders
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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EPG Performance Evaluation •
Establish performance topics • Identify KPFs • Create performance indicators • Assign accountabilities • Report performance “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Transformation via Change Management •
EPG Objective: scope e vision • Interactions: relationships and communication • Organization: structure, roles and responsibilities • Processes: information, methodology, control “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Why Implement EPG?
• Market demand • Technological advances • Shareholder demand • Governamental requirements • Need to innovate “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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When to Implement
EPG? • External pressure for more effective delivery of projects across the enterprise. • Internal dissatisfaction with the status quo. • A viable plan • Leadership capability “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Where to Implement
EPG? In a fertile setting with favorable stakeholders: • Preferably at a high level in the organization, or • In a business unit experiencing project difficulties where managment is searching for solutions “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Governance is key
to Project Success or Failure CERN – European Organization for Nuclear Research - Switzerland “Superconducting Super Collider” – Texas, USA “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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In July, 2012,
CERN announced the discovery of the Higgs boson, known in the media as the “God particle”. “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Big Pharma: The
Challenge • Expiration of patents • Broken patents • Need to change focus: develop projects aimed at re- organization, and processes, with commercial slant • R&D projects decreasing in profitability “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Big Pharma: Some
Adjustments • CPMOs operating at high levels • Increased emphasis on training in PM • Programs aimed at creating a PM culture “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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The EPG Plan:
The Road to Transformation and Success • Context & Culture • Directing • Strategy alignment • Risk Management • Portfolio Management • Structure, Roles and Responsibilities • Decision-making Processes • Stakeholder Management • Performance Evaluation • Transformation • Information “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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The Plan
“PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Three Approaches • Board •
CEO • Bottom UP “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Board- Sponsored EPG Applicable
in some organizations, through ad hoc committees, such as: • “Strategic Planning and Implementation” • “Oversight of Strategic Initiatives ” • “Strategic Product Development” • “Special Events and Programs.” “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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How the Board
Can Influence • Require project prioritization criteria • Promote EPG implementation • Provide oversight (without micro-managing) • Insist on periodic evaluations of project management maturity. “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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CEO-Sponsored EPG
Responsible for interface between company strategists and the implementers. Here are 3 organizational approaches: • Chief Project Officer: C-level responsibility for projects • Corporate PMO: strategic-level project management office • Program Office: responsible for strategic and multiple projects “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Bottom Up Approach Some
ideas: • Intensify training programs in project management across the organization • Stimulate use of project management in all types of projects such as engineering, IT, R&D, HR, Shared Services and Marketing • Identify potential sponsors • Encourage development of PMOs “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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What can you
do to promote the cause? 3 Initiatives: ______________ ______________ ______________ “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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We Discussed... • Evolution
of Project Management • The EPG Model • Case studies: CERN x SSC and Big Pharma • The EPG Plan • Implementation Approaches “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Points to Remember
• EPG is the organizational and strategic evolution of the project management profession • Power, Politics and Influence are ever-present factors in managing stakeholders in the EPG environment. • EPG constitutes a governance umbrella under which reside: portfolios, programs and projects • Different approaches can be used to move an organization towards EPG “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Thank you for
your attention! -- Paul Dinsmore “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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Contact Information
Paul Dinsmore paul.dinsmore@dinsmore.com.br paulcampbelldinsmore@gmail.com +5521 8744 5009 “PMI” is a registered trade and service mark of the Project Management Institute, Inc. ©2012 Permission is granted to PMI for PMI® Marketplace use only.
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