Chapter 13

Enterprise Project Management

The transition of project management practices from individual projects to the organizational level holds huge potential for improving productivity. Enterprise project management is the conscious integration of processes, technology, organizational structure and people in order to synchronize organizational strategy with the execution of its projects. According to EPM, all projects need to be managed at three different levels; the project tier, project portfolio and program tier. The four components of enterprise project management are processes, EPM technology, people who work on the project and the project office. Verzuh uses the example of integrated product teams in Boeing and Lockheed Martin to illustrate this transition. Established organizations are increasingly using the process of IPTs -integrated product teams to focus on the product being developed in the project. This is an approach which is moving away from the emphasis on functional specialities.
When Boeing developed its 777 aircraft, it used IPTs to optimize design and speed development of the product. All the disciplines and functional teams from manufacturing, engineering, procurement, finance, technology etc worked together as a team on the project.
Similarly, the example of Lockheed Martin was also a case in point for IPTs as enterprise project management used to develop the new joint strike fighter aircraft. As a result of integrating IPTs , it reported better program management decisions, early detection of cost and schedule problems, timely performance reports and higher level of efficiency and quality.