What is Organizational Project Business Management (OPBM)?
Executives should view organizational project management as a specific business management construct or concept just like Financial Management, Accounting Management, Information Technology Management, Production Management, Engineering Management, or Operations Management—each of which report to the enterprise’s executive level and provide specific business or technical services and support, on an enterprise-wide basis. That is why we use our term of Organizational Project Business Management (OPBM) to emphasize the business aspects represented by the concept of organizational project management. Organizational Project Business Management, as with Accounting Management, requires a functional organization to provide, implement, and maintain the necessary and associated infrastructure within the enterprise. For OPBM, that functional organization is the Project Business Management Organization (PBMO) operating at the senior executive-level. A chief project officer, who reports directly to the chief executive officer, leads the PBMO and is responsible for implementing and managing Project Business Management on an enterprise-wide basis.
For OPBM to be inculcated across the enterprise, the enterprise’s long-term business vision and mission for Organizational Project Business Management must be explicitly defined, cover the implementation and use of the Project Business Management Organization, and be formally issued and mandated by executive management.
A basic understanding of the OPBM construct and Project Business Management (PBM), as shown in the OPBM Framework and PBM Model, and the PBM Organization figure above. The OPBM and PBMO business constructs are based upon our Project Business Management Framework and Model—which is illustrated below.
Project Business Management (PBM) is the business strategy and management framework underlying Organizational Project Business Management, that drives the use of integrated general business manage-ment and project management knowledge, skills, tools, and techniques—when applying project-portfolio, project-program, and project processes, methodologies, and procedures within an enterprise’s business context and structure—to meet or exceed stakeholder and customer needs. PBM is employed within an methodologies, and procedures within an enterprise’s business context and structure—to meet or exceed stakeholder and customer needs. PBM is employed within an enterprise by a Project Business Management Organization to derive benefits from, and captures value through, any project-related actions and activities utilized to accomplish the enterprise’s strategic initiatives and related business objectives.
The Organizational Project Business Management (OPBM) construct can be defined in business terms as the framework of organizational strategies with requisite capabilities that utilizes a Project Business Management Framework and Project Business Management Organization Models to provide the systematic business-oriented management of an enterprise’s project-portfolios, project-programs, and projects. OPBM organizationally facilitates the business-based selection, prioritization, and execution of projects to effectively and efficiently accomplish the enterprise’s strategic initiatives, and related business objectives—and establishes a sustainable competitive business posture and culture. Or, more simply put, a business management-construct employing an executive-led Project Business Management Organization to perform the application and implementation of a Project Business Management Framework on an enterprise-wide basis.
The related Project Business Management Organization (PBMO) is defined in business terms as the organizational business function within an enterprise that institutes and manages the Project Business Management processes for project-portfolios, project-programs, and projects. Positioned at the executive level of the enterprise, it is the organization accountable for enterprise-wide development, distribution, and implementation of Organizational Project Business Management (OPBM). The PBMO is a corporate business function, with a title and responsibility similar to traditional business functions—such as finance, engineering, marketing, sales, manufacturing, information technology, etc.—that provides leadership and has ownership of its respective functional discipline.
Successfully employing Organizational Project Business Management (OPBM) and the PBMO, on an enterprise-wide basis, requires executive management to formally set forth the enterprise’s long-term business-based vision and mission for OPBM. And, for management to establish the related and supporting project/program/ portfolio business management OPBM-based vision and mission for the PBMO. These OPBM and PBMO vision and mission statement documents must be approved by the enterprise’s board of directors, and issued by the chief executive officer.
Executives and senior managers must explicitly drive, and be involved in, establishing formal institutionalized vision, mission, and policy statements for all of the enterprise’s operational business management functional organizations. These strategic business based documents have been shown to be required to successfully implement and manage those business management functions that operated on an enterprise-wide basis, including Organizational Project Business Management, and its Project Business Management Organization.
Enterprises that have a structured development approach to creating visions, missions, policies, and procedural systems have thereby developed good operational management, project/program/portfolio management, and regulatory compliance histories. Those enterprises recognized that clearly written and concise visions, missions, policies, methods, processes, and procedures are vital to the success of both their operations management and project/program/portfolio management. Their structured development approach fully implements the strategic business concept of doing work and performing tasks simply, efficiently, effectively, and correctly the first time, in full compliance with all requirements and in direct support of the enterprise’s strategic initiatives.
Our research shows that successfully employing Organizational Project Business Management (OPBM) and a Project Business Management Organization (PBMO) on an enterprise-wide basis requires executive management to formally set forth the enterprise’s long-term business-based vision and mission for OPBM. Having well developed visions and missions for the enterprise, OPBM, and the PBMO is a proven means of maintaining a business focus and a strategic focus in the management of projects, pro-grams, and portfolios. It promotes producing the value and benefits the enterprise desires to obtain from the execution and implementation of its project, programs, and portfolios, while minimizing negative inter-organizational politics.