Maximizing Success with Organizational Project Management (OPM) Approach

Organizational project management (OPM) provides a holistic framework for managing projects that maximizes success. Adopting OPM principles can transform how your organization delivers value through projects. This article explains what OPM is, why it matters, and how to implement it effectively.

What is Organizational Project Management?

Organizational project management (OPM) is a strategy execution framework that utilizes portfolio, program, and project management practices with organizational strategy and objectives. It provides a structure for managing projects at the portfolio, program, and project levels.

Unlike traditional project management which focuses on individual projects, OPM takes a broader, enterprise-wide view. It aligns project delivery with the organization's strategic goals. OPM integrates project management as well as organizational-enabling practices to consistently and predictably deliver value.

The Project Management Institute (PMI) defines OPM as "the systematic management of projects, programs, and portfolios in alignment with the achievement of strategic goals." It is a holistic approach that coordinates efforts across the organization to achieve strategic objectives.

Why is OPM Important?

There are several compelling reasons why organizations should adopt OPM principles:

• Strategic alignment - OPM ensures projects align to strategy and business objectives. Without this alignment, projects may not provide value.

• Portfolio optimization - OPM allows organizations to focus resources on the right projects. This leads to better ROI and reduced risks.

• Improved governance - OPM establishes standards, policies, and procedures for consistent project delivery. This improves oversight and decision making.

• Better resource management - By coordinating across projects, OPM improves utilization of people, budgets, and assets.

• Higher success rates - OPM drives process maturity which leads to more predictable outcomes and fewer failures.

• Competitive advantage - OPM improves organizational agility and the ability to respond to change. This makes the organization more resilient.

In essence, OPM takes a systemic approach that creates organizational capabilities to deliver projects successfully. Organizations that embrace OPM principles can execute strategy more effectively.

Key Elements of the OPM Framework

OPM aligns three levels of activity with organizational strategy:

Portfolio Management

Portfolio management oversees project selection and prioritization. The goal is to allocate resources to the projects that best support the organization's objectives. Activities include:

• Determining which proposals move forward based on feasibility, resources, and alignment to strategy

• Balancing the portfolio across different dimensions like risk, budget, timelines etc. 

• Monitoring active projects and programs for continued viability.

Program Management

Programs group together related projects to achieve strategic objectives. Program management coordinates projects for efficiencies, knowledge sharing, and benefits realization. Responsibilities include:

• Organizing interdependent projects into programs.

• Overseeing project integration and alignment.

• Managing shared resources across projects in a program.

• Monitoring program-level performance and risk.

Project Management

Project management executes and delivers projects. While traditional project management remains a key capability, OPM expands the focus to organizational strategy and performance. Important OPM enhancements include:

• Developing project charters aligned to strategic goals.

• Establishing Stage Gates or toll gates for governance and control.

• Embedding sponsors, PMOs and steering committees into projects.

• Adopting standardized practices, templates, and tools.

• Emphasizing benefits realization post-project.

When portfolio, program and project management work together, projects achieve strategic objectives predictably.

Implementing OPM Best Practices

Transitioning to OPM requires changing culture, processes, and systems within the organization. Critical steps for a successful implementation include:

• Secure executive sponsorship and leadership commitment.

• Develop a clear vision and roadmap for OPM adoption.

• Establish a PMO to oversee OPM practices.

• Implement structured portfolio management processes.

• Develop stage gates for governance at the project level. 

• Adopt standard methodologies, tools, and templates.

• Provide extensive training and build OPM competencies.

• Assess OPM maturity and audit processes periodically.

• Automate reporting and analytics using PMIS systems.

• Reward and incentivize the right behaviors.

Realizing Benefits from Organizational Project Management

Companies that embrace OPM principles reap significant rewards:

• Projects show greater alignment to corporate strategy.

• Increased project success rates and fewer failures.

• Higher ROI from proper resource allocation.

• Faster time-to-market for strategic projects.

• Better visibility into project pipeline and resource capacity.

• Reduced risks with centralized governance.

• More agility in responding to market changes.

The benefits of OPM are realized over time as processes and culture evolve. With a phased approach, organizations can drive continuous improvements in project delivery.

In summary, OPM takes a holistic view of managing projects strategically. With portfolio, program and project management interconnected, organizations can achieve strategic objectives more predictably. OPM provides the needed capabilities to excel in today's dynamic business landscape.

Key Takeaways from OPM

• OPM aligns project delivery with organizational strategy and goals.

• It coordinates portfolio, program, and project management.

• Critical capabilities include portfolio optimization, governance, PMOs, and resource management.

• Implementing OPM improves project success rates, agility, and competitive advantage.

• Strong executive sponsorship, change management, and training are key enablers.

• Maturing OPM capabilities takes time but leads to significant rewards.