PMI Global Congress 2012

EPG - Enterprise Project Governance: A Guide to the

Successful Management of Projects Across the Organization

Session PBM04

Paul C. Dinsmore, PMI FellowDinsmore 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“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.

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


Presentation Based on

*Released April, 2012. Amacom, NY


We´ll Discuss...

• Evolution of Project Management

• The EPG Model

• Case studies: CERN x SSC and Big Pharma

• The EPG Plan

• Implementation Approaches


Change, Evolution and Projects

•Adam and Eve•Khufu •Leonardo da

Vinci •John Kennedy


Analogy with Quality Management

• Quality Control• Quality Engineering• Deming and Juran• Quality Assurance• Six Sigma• Quality Awards • Total Quality (TQM)


Evolution of Project Management

•Single Projects•Network planning ( PERT-CPM-PDM)•Software•Multiple projects and Programs•Portfolios•PMOs •CPMOs•Enterprise Project Governance


EPG – A MODEL FOR PROJECTIZING ORGANIZATIONS


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


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


Components of EPG


Strategic Alignment

Effective EPG requires:

• Strategic direction understood by the organization

• Permanent monitoring of strategy implementation

through project management


Implementation of Strategy Through EPG


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


Portfolio Management

“The right combination of the right projects”

This requires:• Balance among the projects competing for resources• Criteria for prioritizing projects



Organizing for EPG

Organizing for EPG is based on four pillars:

• Governance• Competency• Processes• Culture






Internal Stakeholders


EPG Performance Evaluation

• Establish performance topics

• Identify KPFs

• Create performance indicators

• Assign accountabilities

• Report performance


Transformation via Change Management • EPG Objective: scope e vision

• Interactions: relationships and communication

• Organization: structure, roles

and responsibilities

• Processes: information, methodology, control


Why Implement EPG?

• Market demand

• Technological advances

• Shareholder demand

• Governamental requirements

• Need to innovate


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


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


CERN – European Organization for Nuclear Research - Switzerland

“Superconducting Super Collider” – Texas, USA

Governance is key to Project Success or Failure


In July, 2012, CERN announced the discovery of the Higgs boson, known in the media as the “God particle”.


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


• CPMOs operating at high levels

• Increased emphasis on training in PM

• Programs aimed at creating a PM culture

Big Pharma: Some Adjustments


The EPG Plan: The Road to Transformation and Success

• Decision-making Processes

• Stakeholder Management

• Performance Evaluation

• Transformation

• Information

• Context & Culture

• Directing

• Strategy alignment

• Risk Management

• Portfolio Management

• Structure, Roles and Responsibilities


The Plan


Three Approaches

• Board

• CEO

• Bottom UP


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.”


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.


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


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


What can you do to promote the cause?

3 Initiatives:

______________

______________

______________


We Discussed...

• Evolution of Project Management

• The EPG Model

• Case studies: CERN x SSC and Big Pharma

• The EPG Plan

• Implementation Approaches


Points to Remember

• 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

• EPG is the organizational and strategic evolution of

the project management profession


Thank you for your attention!

-- Paul Dinsmore


Contact Information

Paul Dinsmore

[email protected]

[email protected]

+5521 8744 5009

mailto:[email protected]

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PMI Global Congress 2012