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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.
- 4. 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.
- 5. 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.
- 6. 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.
- 7. 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.
- 8. EPG – A MODEL FOR
PROJECTIZING ORGANIZATIONS
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- 9. 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.
- 10. 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.
- 11. Components
of EPG
“PMI” is a registered trade and service mark of the Project Management Institute, Inc.
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- 12. 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.
- 13. 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.
- 14. 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.
- 15. 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.
- 16. “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.
- 17. 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.
- 18. “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.
- 22. 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.
- 23. 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.
- 24. 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.
- 25. 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.
- 26. 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.
- 27. 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.
- 28. 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.
- 29. 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.
- 30. 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.
- 31. 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.
- 32. 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
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©2012 Permission is granted to PMI for PMI® Marketplace use only.
- 33. 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.
- 34. 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.
- 35. 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.
- 36. 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.
- 37. 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.
- 38. 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.
- 39. 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.
- 40. 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.
- 41. 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.
- 42. 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.
- 43. 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.