What Is Enterprise Project Management?
Typically, large enterprise organizations run multiple complex projects simultaneously. Although each of these projects do not necessarily seem connected to each other, they are related because they all impact the same enterprise organization. That’s where the practice of enterprise project management comes in.Enterprise project management (EPM) refers to the practice of managing projects on a companywide scale. It generally involves implementing various strategies and processes aimed at streamlining and improving the effectiveness of project management on such a large scale. According to the Project Management Institute (PMI), these initiatives can include:
- Using project management software to consolidate multiple projects and make them more visible and trackable across the organization
- Creating a project management department
- Using “stages of growth” models to improve project-management capabilities
What makes enterprise project management different?
Traditional project management practices focus on seeing one specific project through from beginning to end, with a defined, measurable objective.
Enterprise project management puts the focus on the enterprise, prioritizing and highlighting its business goals and managing and grouping projects to ensure they meet those broader organizational objectives.
The end objective is not necessarily a successfully completed project. It is a project that effectively provides value to the organization.
Benefits of enterprise project management
Despite the fact that roughly 25 percent of the gross domestic product of developed nations is spent on or through projects, PMI points out that there is often a lack of alignment among projects within an organization, resulting in duplication, wasted effort, missed opportunities, inconsistent decision making and other hurdles. Organizations, and project managers within the company, need to ensure all projects are strategically focused on their overarching business objectives in order to be successful. Enterprise project management aims to do just that. As Villanova University explains, EPM practices can “identify when projects conflict or duplicate efforts, and they can recognize underfunded projects that might present an opportunity for the organization.” The university cites a potential 20 percent increase in profits for organizations that employ an EPM system.
PMI outlines additional benefits of enterprise project management, including:
- Higher-quality output
- Improved productivity
- Reduced impact of skills shortage
- Reduced project risks
- Enhanced reliability of delivery
Implementation of enterprise project management
Since enterprise project management focuses on the organization’s core mission and strategic objectives, implementation of an EPM system begins with a thorough look at the company’s existing projects and its organizational culture—after all, EPM will require adaptability and openness to change.
Including stakeholders is critical to the success of any EPM system, since the end goal is full transparency, wider participation, more project visibility and increased monitoring. A high level of communication is essential to bring everyone on board, including executives, and ensure goals and efforts are aligned.
- What It Takes to be a Project Portfolio Manager
- The Major Challenges of Enterprise Project Portfolio Management