Enterprise Pyramid = Enterprise PM

By MaryGrace Allenchey, PMP

To continuously improve financial performance and sustain organizational growth, enterprises must continually review and establish strategic goals.  These performance goals are determined by an objective “SWOT” assessment to evaluate the organization’s Strengths, Weaknesses, Opportunities, and Threats; and to decide upon the specific ventures to pursue during the next fiscal cycle as well as future cycles.

Strategic goals must be effectively communicated throughout the organization and realized through successful implementation of specific initiatives.  Individual business units or operational departments must effectively manage initiatives, and ensure their functional teams and individuals successfully perform the tasks to deliver the required products and services to attain enterprise goals.  Performance at every level must be managed and monitored to ensure alignment with the stated goals.  There must also be an effective management discipline to monitor and track the alignment.

The following diagram, the Enterprise Pyramid graphically displays executive management expectations that all operations are aligned with the enterprise strategic goals.  The top level are the Enterprise Strategic Goals, below that level are the Corporate Initiatives, below that level are Organizational Functions and finally at the lowest level, Tactical Operations. Management may expect all levels are aligned, but there are or may be no methods or processes that are applied to measure and confirm the alignment.

Figure 1a

Enter Project / Program / Portfolio Management (PM) !!!!



Organizations are increasingly recognizing the value of Project, Program and Portfolio Management (PM) to effectively manage enterprise resources, to successfully complete mission-critical projects, and ultimately to achieve mission-critical strategic objectives and ultimately improve overall performance of the enterprise.
When Enterprise Goal Achievement is viewed as the product or service deliverable, enterprise strategic goals can be effectively achieved through projects and programs.  Specific corporate initiatives become the programs to ensure delivery of the desired product or service.  The functions of the business or operational units are then focused on the specific projects that are required and established to support the various programs.  And the tactical teams perform the required activities to produce the critical project deliverables to realize the strategic goal.

The following diagram graphically depicts the measurement capability of Project and Program Management (PM) best practices, as defined in the Project Management Body of Knowledge (PMBOK Guide®) and The Standard for Program Management, global standards and publications of the Project Management Institute (PMI).

At the top level again are the Enterprise Goals, the next lower level now becomes the Programs required to achieve specific Corporate Initiatives. The next lower level includes the Projects of the various Organizations to effectively support the Programs. And finally at the lowest level, the specific activities are performed by the Tactical Groups to deliver the products and services of the critical projects.

Figure 1b

Application of the processes, techniques and tools of PM best practices provides the critical measurement tool to ensure operational alignment with the strategic goals throughout the enterprise.

With this project mindset, organizations can apply effective project management techniques to successfully monitor and manage the activities, projects, and programs required to implement the portfolio of strategic initiatives and ensure organizational alignment with strategic goals.

Projects undertaken to provide innovative products, services and solutions, provide an effective competitive and growth response in a recessed or volatile business climate.

PM therefore emerges as the critical management discipline to promote and sustain effective enterprise performance.  Application of PM best practices’ standards, processes, and techniques, is indisputably the effective and mandatory management tool for successful delivery of competitive and unique products and services.

To attain goals….             You must Inspect ….. Not Just Expect !

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