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The Importance of Project Management Governance in IT Organizations

Navigating the multifaceted world of project landscapes, IT firms such as Systems Integrators (SIs) are often faced with the daunting challenge of synchronizing multiple internal units and departmnts while delivering high-quality solutions to their customers through their external projects. This is where the pivotal role of a well-structured project management governance framework comes into play. Beyond merely guiding project execution, this framework ensures that all internal units function in harmony, resonating with the overarching organizational objectives.

Developing Project Management Governance Using External Standards and Organizational Goals

Benchmarking against market and competition for project management best practices

An initial step for system integrator organizations is to understand their standing in the market. Continual benchmarking against industry standards and competitors' best practices provides valuable insights. This process helps organizations not only identify their current position but also discover areas of potential improvement.

Adapting external standards to internal project management needs

While universally recognized standards like PMI, IPMA, and IT-centric standards such as SAP Activate offer foundational guidance even beyond the methodology part, they aren't one-size-fits-all solutions. System integrators must mold these standards according to their operational dynamics and integrate their distinctive assets. This tailored approach to project management ensures a blend of best global practices with inherent organizational strengths.

The process of optimizing the project management organizational structure

Structural efficacy is at the heart of optimized project management. A well-defined Project Management Team, either in form of a dedicated department or alternatively structured as an Organizational Project Management Office (OPMO) as detailed in the PMI PMO Frameworks, plays a pivotal role. The maturity in understanding and implementing OPMOs in regions like the USA surpasses that in many European companies, highlighting an opportunity for many organizations to evolve.

The process of optimizing communication between internal organizational departments

Effective project management isn't confined to methodologies or project outcomes; it's equally about the seamless communication between various organizational departments. Optimizing this inter-departmental communication ensures that every unit is aligned with the broader project goals, fostering better collaboration and efficient decision-making.

Choosing the Right Project Management Governance Organizational Approach

  • Decentralized Project Management Governance: Decentralized project management governance gives autonomy to individual teams, which can stimulate creativity and enable swift, localized decision-making. However, it's crucial to maintain a consistent strategic direction to prevent silos.
     
  • Centralized Project Management Governance: Centralized project management governance, with its top-down approach, guarantees alignment with the larger organizational objectives. While offering clarity, it may at times restrict localized innovation.
     
  • Hybrid Approach - Balancing centralized and decentralized project management governance utilizing the OPMO from the PMI PMO Frameworks: Striking a balance between centralized and decentralized strategies, the hybrid approach offers the best of both worlds. This method, utilizing the OPMO (Organizational PMO) from the PMI PMO Frameworks, ensures a blend of structured decision-making with the flexibility to innovate.
     

Methodological Approaches in Project Management

  • Methodology Portfolios, Methods, and Standards for Project ManagementDiverse projects necessitate a varied toolkit of methodologies and standards. Recognizing the subtle differences between them empowers system integrators to select the most fitting approach for each project.
     
  • Project Management Standards: PMI PMBOK, IPMA/GPM, and PRINCE2 as examplesStandards like PMI PMBOK, IPMA/GPM, and PRINCE2 provide guiding principles, helping organizations navigate the intricacies of project management. Program management further enhances this by overseeing multiple interrelated projects under a singular program umbrella, ensuring alignment and success.
     
  • Program Management: PMI Program Management and the MSP standard as examplesOversight of multiple interconnected projects requires specialized strategies. Program management standards like PMI Program Management Standard and the MSP offer frameworks to ensure cohesive management of various projects under an overarching program.
     
  • IT-related Methodologies: SAP Activate as an example: Incorporating IT methodologies like SAP Activate brings a tech-savvy edge to project management. However, it's essential to understand that such methodologies cannot function in isolation. They require integration with broader standards like PMI and the organization's unique assets to be truly effective.

  • Enablement: Synchronizing with HR and Designing Learning JourneysThe cornerstone of successful project management governance lies in the capabilities of its practitioners. Collaborative efforts between project management governance organizers and HR, coupled with well-designed learning journeys, nurture and equip talent, ensuring they remain at the forefront of industry best practices.
     

Conclusion

A centralized project management governance team within the own organizational boundaries is not just an operational necessity for systems integrators, but a strategic key to success. When companies start to optimize their project management practices, they can rely on the experience that experts like OYSTEC offer specialized solutions to identify and implement them - be it setting up or optimizing the structure and process organization of a central internal project management governance, or creating or optimizing a suitable methodology portfolio including the necessary program and project methodologies. Interested readers are welcome to contact OYSTEC directly for further information and tips, or to get a first impression of methodology design by clicking on the links below.
 

  • Link 1 - Design of a Project Management Methodology (based upon PMBOK®7)
  • Link 2 - Design of a SAP® Project Management Methodology (based upon SAP Activate and further PM Standards)
  • Link 3 - Design of a Program Management Methodology (based upon PMI Program Management Standard)
  • Link 4 - Global Delivery Business Developer
  • Link 5 - Offering Portfolio Manager

 

Copyright: PMI, PMBOK, IPMA, SAP, SAP Activate, PRINCE2, and MSPare property of their respective organizations. Any other mentioned brand names, website addresses, and trademarks or logos are the property of their respective owners. This article was optimized with AI technologies from Midjourney Inc., OpenAI Inc. and DeepL SE.

 

 

タグ: Market Insight