Execution - the Fourth Pillar of the Enterprise-wide PBM House of Excellence
Execution is the last of the four pillars of the enterprise-wide project management house of excellence and applies the Project Business Management Methodology (PBMM) Model developed in the Standardization component. It is supervised, implemented, monitored, and controlled by the project business management office (PBMO) governance with its organization structure and positions developed in the Governance component. The PBM Methodology model employs the capabilities of the PBMO staff and the project business management system (PBMS) developed in Capabilities component to perform the execution of the enterprise's portfolios, programs, and projects.
The PBMM model employs five common project business management planning processes, into which project business management content and activities have been integrated, and that add minimal administrative cost to the normal business planning operations.
The first three elements relate to objective identification and selection:
- Business strategy planning process: involves establishing a business priority strategy and business cases documented for each strategy;
- Business tactical planning process: produces documented business objectives with stated accomplishment criteria that fully support the business strategies. They are arranged based upon the final priority rank in which they should be performed and completed and separated into two different sets of business objectives:
Project selection process: separates the objectives to be performed as projects from the normal business unit objectives that will be handled by the next phase of the enterprises normal business execution processes. This process assembles those project-based business objectives into portfolios with programs and/or projects, programs with projects, and standalone projects.
- Non-project business objectives and action items that could be directly performed by the respective business units.
- The enterprise's business objectives that need to be performed as projects.
The fourth common project business management planning process is initiation and authorization. Project initiation and authorization activities are performed on each portfolio, program, and project, which result in the approval and issuance of a portfolio, program, or project charter. This provides the formal recognition and authorization and allows the implementation planning to then be performed according to the PBM3 planning process procedures established for the enterprise by the EPMO during the standardized processes development.
The fifth common project business management planning process is the integrated execution planning of each portfolio, program, and project.
Cost Benefit of Project Business Management Planning
The benefits of effective mature standardized PBM planning increase with the complexity, size, and number of portfolios, programs, and projects and the establishment of an executive level PBMO. The intent of having mature project management business processes is to create significant benefits at low cost through documented and implemented structured portfolio, program, and project development and execution methodologies. Considering current project management research, the downside risk, of poor project execution depicted above, could be some 20% of project total costs. An integration of standardized practices, processes, and procedures is required to ensure effective project business management is used throughout the enterprise's business operations. The more uniformly and consistently a mature institutionalized project business management process is applied, the greater will be the results and benefits obtained.