by Ron Rosenhead
I travel a lot and see many companies trying and deliver major changes through project and programme management. There are sometimes problems with this:
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there are often too many projects on the go within the business with resources thinly stretched
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not all of the project link to the overall company strategy ( PMI have reported that effective strategy implementation is directly linked to an organisation’s capability to deliver successful projects and programs – see latest report
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energy and effort is put into delivering nice to have projects taking valuable resources (staff and money) away from key projects
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project priorities are not clear with project managers and stakeholders often confused as to where the effort should go first
So, what is needed? Companies need a mechanism for ensuring that all projects go through a formal approval process, a process that will avoid some (and more) of the above issues. So what should this approval process be? I suggest a small group of people who operate at the corporate level (no more than 5 or 6 people). There is no one overall process as each company needs to think through what is required which could include:
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Developing a list of all company projects and establishes how each one fits with the overall objectives of the business
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Checking the company has sufficient resources to deliver the project – remember there is a skills shortage. Resources includes money and people
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Approving or otherwise projects ensuring they fit with the overall company objectives and link into the overall portfolio of projects
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Retrospectively reviewing and approving (reapprove) projects on the list (I) above. This may mean stopping or reprioritising projects. Stopping would release valuable resources and budget for higher priority projects
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Checking whether there a business case for each project and there are agreed benefits identified and they are being measured along the way.
There are clearly more areas for this small group to consider. I see this group as part of the overall governance process ensuring the strategic challenges will be met with a clearly focussed list of projects to be delivered.
Order and structure is needed to ensure that the company controls the overall portfolio of projects. The alternative; leave things as they are and end up with what one person described as a ‘right spaghetti mess’ – an interesting metaphor.
Picture courtesy of freedigitalphotos.net
