Implementing EPM in an Organization

SEVEN-STEP PROCESS FOR CONNECTING YOUR BUSINESS PLAN TO PROJECT DELIVERY

Implementing EPM in an organization is a project in itself. Now that we have reviewed several key elements that make or break the implementation, we are now ready to review the actual stages, deliverables, and activities of the implementation. We have found that this can be accomplished successfully by following a seven-step process, which serves as the framework for the plan to manage the implementation (figure 3 below).

Step 1: Assess the Organization's Capabilities and Challenges

Successful EPM is accomplished with consistent application of planning, communication, and execution principles, yet each organization will have its own unique needs and challenges to be addressed. The purpose of the assessment is to determine the organization's consistent challenges and what type of solution will improve the situation. The outcome of the assessment phase is an EPM vision specific to that organization, along with an estimate of the skills required to implement such a vision. The assessment phase is also the first step in the cultural shift to EPM. Executive stakeholders must understand the general nature of EPM, they must understand and accept their challenges, and they must participate in forming the high-level vision of EPM for their organization.

One effective method for establishing an EPM vision with Executives is to “projectize” the business plan. That is, evaluate their current business plan and convert it to the integrated view of projects that would exist with EPM. This first version of a projectized business plan is key to the vision, in that it serves as a tangible illustration of the capabilities an organization gains with an EPM system implemented.

Step 2: Launch the EPM Project

Once Executives have a vision established, it is time to obtain commitment to move forward. The EPM project can be formally launched with an executive briefing session that outlines the vision and magnitude of effort in moving to EPM. Executive commitment is demonstrated by the allocation of key subject matter experts and other resources to the EPM project.

Once key subject matter experts are on board, they need to be prepared for their roles—not just in practical aspects of their assignment, but also in the cultural shift. One thing they must understand is that they must abandon a “that's not how we do it here” mentality in favor of an open, no-limits approach to improving the organization.

Step 3: Analyze the

Detailed EPM Requirements

This is the first step in transitioning from a high-level vision to a detailed, practical solution. As with any project, constraints and boundaries must be defined before moving into the detailed definition and prioritization of requirements. Just as the EPM solution will represent a full alignment of the organization from top to bottom, the definition of detailed EPM requirements must be in full alignment with the Executive EPM vision set forth. Throughout analysis, the definition of requirements and refinement of the vision will occur in an iterative fashion.

The iterative evolution of detailed requirements and high-level vision provides another excellent opportunity for propelling the cultural shift to EPM. Executives and subject matter experts must collaborate and work through understanding, acceptance, and participation to establish the parameters of the solution that makes sense for their organization.

Step 4: Design the EPM Model

This is the time when the pivotal role of the Program Organization and the mechanics of the EPM solution are defined. There are two areas of focus in the design phase: improving or realigning existing processes, and developing new processes based on EPM requirements. Point-to-point processes may already exist that simply need to be redefined to an enterprise perspective. The goal is to define an organization-wide solution that achieves total alignment, while taking advantage of an organization's most successful capabilities and features.

The designed processes become the basis for the software and system configuration. It used to be that planning and scheduling software were literally “out of the box”. Getting started with software was simply a matter of installing it on a PC. The sophistication of planning and scheduling software has increased in conjunction with the increased complexity faced by organizations in meeting their objectives. To make the most of the features of the more sophisticated software, the configuration of the software must be defined prior to any installation. In many cases, this means defining user access, defining data structures, and defining business rules within the software.

Step 5: Build the EPM Tools

This is the point at which the EPM software and systems are installed and tested. The configurations defined in the design step are built into the system. The build step concludes when the EPM processes and tools are fully designed, built, and integrated.

Step 6: Validate the EPM Model

The best way to prove the concepts is to test drive them using a select set of projects. Working with a select set of projects provides an opportunity for the newly formed Program Organization staff to become familiar with their roles and responsibilities, while refining the EPM model.

In determining which projects are suitable to pilot, there are two ends of the spectrum to consider. At one end of the spectrum is the project that is in chaos and requires recovery. The advantage of choosing this type of project for validation is that if successful, you will have provided proof to the most vocal skeptics. The risk of choosing the broken project is that it could be destined to sink regardless, thereby also taking the EPM project down with it.

At the other end of the spectrum is the simple, quick-win project. This is the type of project where the organization universally recognizes the need for the project to be successful, and a motivated team is in place to deliver. The advantage of the quick-win project is that you could take advantage of an already motivated team to adopt the principles and practices defined in the EPM project. Plus the project will be successful, and the EPM principles and practices can be seen as a part of that success. The drawback is that people may observe the inevitable success of the project and in turn question the role of the EPM model in the success.

Step 7: Implement EPM Organization-Wide

The key to EPM implementation is compelling people to follow the seven-step process. This requires an executive commitment to communication and leadership. An effective implementation approach is to truly projectize the business plan, then bring each project team on board to the EPM model as their respective projects are launched. As each project is launched, a new cross-section of stakeholders at different organizational levels is brought on board. These leaders create the foundation by which decisions can be made and program and project direction is given following the EPM process. The successes and lessons learned from validation become a pivotal message and teaching tool for implementation.

AFTER THE IMPLEMENTATION

Moving through the seven steps is about focusing on fundamental solutions that are easily adoptable and scalable to increases in EPM maturity. With fundamental EPM capabilities, an organization will be able to:

• Develop strategies, plans, and budgets in a continuous, proactive fashion.
• Define, initiate, plan, and execute projects in alignment with the organization-wide strategy and budget.
• Prioritize and allocate resources in alignment with organization-wide priorities.
• Provide consistent performance-to-plan measures, communication, and reporting for all of its projects.
• Establish a consistent project management approach for all divisions and departments.

As an organization becomes more experienced in its use of EPM practices, it will be able to improve accuracy of estimating, scheduling, and performance-to-plan measures. The Program Organization, in its role as the organization's EPM steward, takes responsibility for continuous improvement of EPM capabilities. Completion of the seven steps to EPM provides tremendous benefits, and is the first stage of a continuous evolution towards improved planning and execution in support of an organization's vision, strategy, and goals.