{"id":41737,"date":"2023-03-08T12:41:41","date_gmt":"2023-03-08T17:41:41","guid":{"rendered":"https:\/\/centricconsulting.com\/?p=41737"},"modified":"2023-03-08T12:41:41","modified_gmt":"2023-03-08T17:41:41","slug":"implementing-enterprise-portfolio-project-management-tools-5-ocm-pitfalls-to-avoid","status":"publish","type":"post","link":"https:\/\/centricconsulting.com\/blog\/implementing-enterprise-portfolio-project-management-tools-5-ocm-pitfalls-to-avoid\/","title":{"rendered":"Implementing Enterprise Portfolio Project Management Tools: 5 OCM Pitfalls to Avoid"},"content":{"rendered":"
As organizations expand their digital transformation efforts, enterprise portfolio and project management (EPPM) capabilities and tools become important. By centralizing and standardizing data and processes as well as reducing variation in planned versus actual costs, EPPM tools and capabilities support significant improvements in on-time and on-budget delivery.<\/p>\n
Realizing these benefits typically requires a major, enterprise-wide initiative to modify planning, scheduling and costing processes and implement new EPPM applications and tools. While the technical aspects of this type of transformation are challenging, we find the organizational change management<\/a> (OCM) or human aspects of EPPM transformation to be equally, if not more, critical to successful results.<\/strong><\/p>\n This blog will focus on five change management pitfalls and how to avoid them. Along the way, we\u2019ll provide some best practices to help you maximize your effectiveness.<\/p>\n Although most of our clients no longer make this mistake, we still see change management activities and deliverables reduced, eliminated or delayed in a mistaken effort to lower the cost of implementation. Doing so inevitably results in delays and cost overruns on the back end.<\/strong> Recent global research by Ernst & Young<\/a> found that \u201cOrganisations that put humans at the centre of their transformation journey are 2.6 times more likely to be successful than those that do not (73% chance of success versus only 28%).\u201d This is consistent with our experience. We subscribe to the axiom, \u201cYou can\u2019t separate project management and change management<\/a>.\u201d<\/p>\n A few best practices to avoid this pitfall include:<\/strong><\/p>\n An executive sponsor might give you the green light to find a new EPPM tool and the funding you need to get it. But often, leadership sees an EPPM tool as exclusively for PMO and project manager (PM) use.<\/strong> An executive does not see the decision as something that impacts them directly.<\/p>\n In reality, developers built most modern EPPM tools for collaboration and use across the organization. Executives will directly interface with and consume information from the solution.<\/p>\n A few best practices to avoid this pitfall include:<\/strong><\/p>\n Implementing a new EPPM tool is never as easy as flipping a switch and watching everybody dump their old tools in favor of something new. In many cases, organizations use spreadsheets in lieu of an EPPM tool. In these situations, introducing an EPPM tool requires an emphasis on training with the new tool.<\/strong><\/p>\n Another potentially difficult scenario is when various siloed teams already use a patchwork of EPPM tools. Bringing all your teams onto a common platform has many advantages (better cross-team communication, cost savings, easier vendor relationship management<\/a> and more). However, getting teams to give up or steer away from a familiar tool (they may love using) can require careful resistance management. Too often, companies make exceptions for individual teams to let them continue to use the tool they are accustomed to, greatly diminishing the benefits of a better alternative.<\/p>\n A few best practices to avoid this pitfall include:<\/strong><\/p>\n New EPPM applications offer the opportunity to significantly improve scheduling and costing processes and functions. This improvement includes changes in job roles and responsibilities and how scheduler and costing resources perform their jobs. Successful job redesign is core to realizing the full benefits of new EPPM processes and tools. Equally as important, expanded and more desirable job roles and responsibilities will improve adoption.<\/strong><\/p>\n As an example, we had a recent client recognize they no longer needed to spend half their time locating and aggregating data in their current costing and scheduling roles when they could make this data centralized and easily accessible in the future state with their new EPPM application. Instead, they recognized they could combine these roles and cross-train employees to perform each job. In addition, they have the potential to transform each role to deliver business analytics, scenario planning and forecasting functions with their freed-up time.<\/p>\n A few best practices to avoid this pitfall include:<\/strong><\/p>\n Organizations implement new EPPM processes<\/a> and tools to significantly improve portfolio and program performance, including nimbly responding to ever-changing customer demands. New EPPM technical capabilities also allow you the flexibility to respond to changes in internal organizational priorities, such as shifting from portfolio profitability to top-line revenue targets.<\/strong><\/p>\n Although EPPM tools provide the technical ability to quickly modify scenarios and shift plans, companies often limit the business and finance acumen to take advantage of the tools to a few individuals. We have seen organizations make the mistake of training only on the technical features and functions of the new EPPM tools.<\/p>\n Instead, we recommend emphasizing business and financial acumen training to ensure employees use the new tools to deliver optimum results.<\/p>\n A few best practices to avoid this pitfall include:<\/strong><\/p>\n1. Starting OCM Activities Late (or Not at All)<\/h2>\n
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2. Not Having an Interested and Engaged Executive Sponsor<\/h2>\n
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3. Managing EPPM Resistance by Avoiding It<\/h2>\n
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4. Not Redesigning EPPM Roles<\/h2>\n
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5. Emphasizing Technical Training over Analytical or Financial and Power Skill Training<\/h2>\n
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Conclusion<\/h2>\n