This paper was submitted for publication October 14, 2011.
It is copyright to Dennis Bolles of DLB Associates, LLC ©2011
Published on this site July 2012.

PART 1 | Introduction | Standardization - the Second Pillar
Iterative Management Processes | Capability - the Third Pillar
Execution - the Fourth Pillar | PBM Maturity - the Foundation | Conclusion

Standardization - the Second Pillar of the Enterprise-wide PBM House of Excellence

The key to successfully executing project business management best practices across an organization depends on incorporating four related components of project business management. The second of these is standardization, see Figure 1: Enterprise-wide PBM House of Excellence in Part 1 of this paper. Standardization in project business management can be defined as establishing a business management model composed of a set of defined project and business management processes and associated written procedures.

Standardization includes the activities required to develop:

  • Project business management governance policies;
  • Portfolio business management policies, processes, and procedures;
  • Program business management policies, processes, and procedures;
  • Project business management processes that are integrated with the development processes of the enterprise's products and services; and,
  • Project management policies, plans, processes procedures, systems, tools, and templates that support the project business management processes.

Standardization requires the formal issuance, acceptance, and implementation of policies, processes, systems, plans, and procedures that are used consistently across the enterprise to authorize and manage all portfolios, programs, and projects. To have formally authorized and issued policies, plans, and procedures in project business management is not any different from having them for the functional divisions and practice areas of accounting, human resources, or safety. Standardization is the best way to effectively spread the unique competencies and skills of project business management throughout an enterprise to achieve maximum benefit.

Incorporating project management into the enterprise's overall business operations process serves two purposes:

  1. The business purpose is to have standard process models, methods and techniques that can be applied to all portfolios, programs, and projects.
  2. The purpose in the vision for enterprise-wide project management is to achieve a world-class proficiency in the consistent application of well-defined project business management practices, processes, procedures, tools and techniques.

The goal is to support inculcating project business management as a core capability and discipline that is part of the fabric of the work that the enterprise performs. From an enterprise business perspective, having standards:

  • Improves efficiency and shortens the learning curve for new portfolio, program, and project managers.
  • Supports schedule improvement and cost reductions.
  • Enhances planning and management skills.
  • Enables consistent tracking of actual versus planned schedule and cost.
  • Facilitates regular management review of status.
  • Aids in maturing the organization's project business management methods.
  • Improves the effectiveness and capability of the enterprise to manage portfolios, programs and projects.
  • Provides standardized management models and tools that support profitability and business growth.
  • Improves the ability to achieve strategic business objectives.
  • Improves operational business processes.
  • Provides standardized material supporting project management career path development.

Experiencing the benefits that can be derived from standardized project business management methodologies requires that they become integrated into the operations of the business. The actual benefits are directly related to the extent the project business management processes are considered a natural and customary part of the work culture and the day-to-day business processes.

PART 1  Introduction to Part 2

Home | Issacons | PM Glossary | Papers & Books | Max's Musings
Guest Articles | Contact Info | Search My Site | Site Map | Top of Page