Instant growth often results in a deluge of concurrent business projects. For most of us in operations, been there, done that. However, if your organization is lacking robust business project governance, precious capital could be wasted, resources tied up and far worse, the business value of those business projects may not be achieved to enable or sustain the current growth.
In the following case study, WGA outlines some real world problems that many organizations face regarding poor business project governance.
Problem: Poor Business Project Governance as a result of fast organic growth
WGA was engaged by a global biotechnology company to examine, diagnose and treat a number of large-scale business project failures. Our client had dramatically evolved over time and business project governance was an afterthought. Over a period of 3 years, our client’s leadership team had seen $400MM dollars in business projects have to be re-scoped, over budget or behind in schedule. After an internal review found 7 out of every 9 business projects were at least +27% percent over budget and took +42% percent longer to complete than planned, WGA was engaged to address the challenges.
Approach: Identify the problems, fix them, align the org, execute the solution
WGA conducted a fast analysis of the business project governance, supporting organization, project history, business project management methodology, business project reporting processes and in-flight efforts.
Delivered a tailored transformation plan that:
•Simplified the business project governance methodology which aligns with best practices based on a quality management framework
•Instituted a business demand and project portfolio capability
•Implemented a program governance model to require “gated” reviews of project health
•Identified tools to support improvements and provide meaningful dashboard reporting
Solution: Accountability restored, PMO capabilities improved
WGA managed the cultural change and streamlined the complexity of the existing project management methodology to:
•Develop a business demand process to formally submit, evaluate, authorize, prioritize, and fund business proposals and projects
•Realign all in-process and planned projects into business value portfolios with investment performance metrics
•Moved to an iterative “gates-based” review of project health
•Identify and implemented a single business demand and PPM tool to automate new processes
Results: Enduring change transforms project ROI
•Within six months of engagement completion, 2 projects were cancelled at the Phase 1 gate – saving $18.5 Million dollars in poor performing efforts
•Project variance in schedule and spend was within +/-4%, versus +/-12% prior to the governance initiative
To learn more about WGA’s services, please feel free to Contact Us or visit our website at www.wgaconsulting.com