Figure 2: A Three-Dimensional View of Project Business Management
The graphic shows how, for some enterprises, about two-thirds of available funding is distributed for operational work while about one-third goes to non-operational work. This statistic leads one to draw the conclusion that many processes, procedures and management methods have been developed and deployed by most enterprises for the operational side of the business, while the non-operational work side has been neglected. But the non-operational work is the thing that can shape the future business and financial success of the enterprise.
Consequently, the products and services delivered by non-operational work are not given the level of strategic planning and tactical execution required to increase the bottom line. A related issue facing many organizations is the significant number of project failures resulting from poor planning, lack of requirements definition, and lack of adequate resources to name a few. The factors that cause project failures are largely the result of inadequate strategic and tactical planning processes.
Project business management and the PBM methodology are a unique approach and structured solution to managing the project-related business of an enterprise. The set of processes and the steps within each PBM process can be adjusted and modified to suit the business size of the enterprise employing the PBM methodology. The purpose of the PBM methodology is to implement project management to serve the enterprise's strategic business initiatives and business objectives and to harness the enterprise's existing project management capabilities.
The outputs of the processes contained in the PBM methodology flow down from strategies, to objectives, to portfolios, to programs, and to projects. This hierarchically integrated set of processes is used to produce the required deliverables and to assure the values and benefits desired by the enterprise can be attained. Knowing what specific actions are required and how to proceed after executive management gives the go-ahead is a key objective of the PBM methodology.
PMOs are currently employed in only a few enterprises as a successful business function at the executive level. However, we believe this practice will become a standard practice of future enterprise organizational models. Executives and business unit managers in today's most forward-thinking enterprises are already taking project management disciplines beyond handling specific projects in manufacturing, product development, services, and information technology, and adopting its powerful methods enterprise-wide. Employing project management enterprise-wide is applicable to any type of enterprise, whether it is a for-profit company, a non-profit company, or a governmental agency. Therefore, the PBMO organization structure proposed in this paper is aimed at existing enterprises with established business operations and defined functional organizations who desire to effectively achieve there strategic business objectives.