In response to our series on the Project-Centric Approach, Philip McGuin makes several interesting points in his blog post, Challenging the Project-Centric Approach. However, he seems to believe that most, if not all, organizations have already adopted a project-centric approach to their business. This could not be farther from the truth. After over ten years of research on this subject, I find that most organizations, unfortunately, do not view their work as “project-centric.” Taking a project-centric approach is just the first step in running a business more efficiently and effectively. And as Mr. McGuin states, “project portfolio management” is the end goal.
But before implementing PPM there are several other issues these organizations must address. The first is to develop a project-centric approach to organizational work, and have that thinking permeate throughout the organization. Taking this step also requires organizations to look at how they set up projects, and to standardize and structure projects so that they can be analyzed to determine their overall value to the organization. At a minimum, these organizations must organize projects and determine their:
- Strategic and tactical value to the organization,
- Risks associated with completion time, cost or not initiating the project at all,
- Project cost,
- Resource requirements,
- Project schedule, and
- Project return on investment.
It is with this basic information (and there is certainly much more that should be captured) that organizations can begin to evaluate their portfolio of projects using PPM.
The purpose of this counter-argument to Atlantic Global’s PPM Blog is to make what I believe is an essential point: A PPM solution can only be effective after the organization has taken a project-centric approach to its business. Then, they must use the information they gather from their project-centric practices in a structured and standardized way, so that PPM technology may truly add value to the organization. Companies that believe that PPM will cure what ails them, without changing the way they approach their business, are greatly misinformed.
#1 by Randy Urquhart at March 6th, 2007
The tail is not wagging the dog. If businesses don’t think of their initiatives using a project-centric approach before they adopt PPM, they run the risk of getting ahead of themselves. You must effectively manage projects before you can effectively manage portfolios of projects.
I have posted a full response on here on Talent on Target: http://www.talentontarget.com/talent_on_target/2007/03/ppm_needs_the_p.html
#2 by Philip McGuin at February 13th, 2007
Is the tail wagging the dog?
Who runs the business – executives or project management stream?
The Project Centric approach certainly empowers the project manager but does it really empower the business. One of the biggest drawbacks of David Hofferberth’s Project Centric argument is the fact that project managers and executives do not always speak the same language nor do they have the same focus and view of the business.
(For the complete response, see the Atlantic Global PPM blog post here: http://www.project-portfolio-management-blog.com/2007/02/13/is-the-tail-wagging-the-dog/ )