EFQM FRAMEWORKMultiProject Management

s

®

© EFQM 2010No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means (be this electronically, mechanically, through photocopy or recording, or otherwise) without either the prior written permission of, or a license permitting restricted copying and use for a third party, from the publisher.

EFQM SHARES WHAT WORKSEFQM is a not for profit membership foundation. For the past twenty years we have shared what works between our member organisations as a way to help them implement their strategies. EFQM brings together organisations striving for Sustainable Excellence. Through our network of members comprising private and public organisations of every size and sector, many active around the world, EFQM applies its know-how and extracts outstanding approaches by engaging with executives and front-line managers. EFQM is the custodian of the EFQM Excellence Model, a non-prescriptive framework that can be used to gain an holistic view of any organisation regardless of size, sector or maturity. Over the past 20 years, the EFQM Excellence Model has been a blueprint for EFQM members and organisations across and beyond Europe to develop a culture of excellence, access good practices, drive innovation and improve their results. Those organisations have become more attentive to the needs of their stakeholders. They have learned how to learn, innovate and improve their overall performance. Their leaders have increased their abilities to take informed decisions and to understand the drivers of their strategy. Many of those organisations have acted as role models for other organisations, winning management practices have been re-used and adapted through EFQM “sharing what works”. This has led to a significant reduction of waste, increased economic efficiencies and improved societal relations.

EFQM is now actively helping to prepare a new generation of business leaders by offering training and development opportunities built on practice-based learning and exchange between organisations. Our exchanges are underpinned by shared tools for assessment, calibrated during two decades of use within organisations and as the basis for discerning the recipients of the EFQM Excellence Award, Europe’s most prestigious award for organisations. Look for the stamp to ensure you are using the present version of the the EFQM Excellence Model.

2 MultiProject Management Framework - EFQM 2010

Foreword The efficient management of a Multi Project environment and the development of a Multi Project working culture are of key importance for the development and success of organisations in today’s continually changing environment. The management of an individual project is an art in itself, as it requires a number of complex competencies from individuals, the team and the environment. The management of multiple projects in a Multi Project environment is an exceptional challenge and needs the art of balancing priorities and available resources in order to achieve the determined objectives. About Trimo Trimo’s mission is to ensure original and complete solutions in the area of steel buildings in accordance with the requirements of our buyers. In itself, our basic activity involves the management of several projects simultaneously and the complexity of the Multi Project environment is completed by developmental, organisational, innovative and other projects. One of the main factors in the development of business excellence, which is the philosophy behind Trimo’s operation, is therefore the efficient management of a Multi Project environment. This is why we developed a good practices model and a self-evaluation tool together with EFQM and partners. This model and tool help us recognise required improvements and the development of innovative practices in Multi Project Management. Allow me to express our gratitude on behalf of myself and all of Trimo’s employees who participated in this project, as well as on behalf of the project’s sponsor, Ms. Tatjana Fink, CEO. Polona Briški Trimo Business Excellence Development Manager

3MultiProject Management Framework- EFQM 2010

Introduction This framework provides you with an approach developed as part of an EFQM project led by Trimo, global provider of complete solutions of steel buildings. The following pages propose a framework structured according to the EFQM Model 2010 that can be used to assess the capability of an organisation to manage efficiently a portfolio of projects (Multi Project Management - MPM). This framework is the result of a benchmarking exercise amongst EFQM members and of the practical implementation conducted directly within Trimo. In recent years many companies have improved the efficiency of single projects. Under the pressure of always shortening product cycles and increasing competition, a next step needs to be taken. By managing multiple projects at the same time, the efficiency of a portfolio of projects can be increased.

What’s the purpose? What are the advantages? The benefits are manifold: Innovation can be stimulated by orchestrating relevant relationships amongst projects. By combining different projects under one umbrella, synergies are created, resources are optimized and benefits for project members, owners and customers can be enhanced. Good practices can be shared amongst different kinds of projects. MPM pushes towards an interactive project culture. Improved profitability can be reached through better overall capacity management. This also leads to improved flexibility and to an ability to react on changing external conditions. The purpose of a more multi project management approach is to improve the way an organisation executes and delivers projects simultaneously and successively, with a maximum of effectiveness and value created. Beyond the synergies highlighted above, there are a number of additional advantages:

A Multi Project Management approach turns faster the lessons learned from completed projects into immediate benefits for current and forthcoming projects. Companies can standardise best practices and eliminate unsuccessful approaches.

During any project life cycle, changes do occur. The management of these changes and of the way they are affecting resources allocation and re-allocation can be supported by adopting a proper Multi Project Management approach.

An MPM approach helps create a common project delivery culture and a better execution

of repeatable tasks and activities. As a consequence, successful methods, tools and techniques don’t need to be reinvented over and over again.

4 MultiProject Management Framework - EFQM 2010

Definitions Managing a single project implies:

Identifying requirements Establishing clear and achievable project objectives Balancing the competing demands for quality, scope, time and cost within the limits of the

available resources Adapting the specifications, plans and approach to the different concerns and expectations

of the various stakeholders

There are 3 important differences between managing a single project and managing multiple projects:

The scale of daily operations is vastly different. It requires the coordination of a lot of activities, some of them recurrent along time and across projects, others more specific to a particular project.

The effective and efficient overall project support and coordination which is more than the aggregation of the support and coordination of all individual projects.

The development and use of soft skills to help prioritise, delegate and manage risks together with a fresh look at Project Management techniques and concepts.

Allocation of resources between competing needs with each of them different and with changing priorities.

Multi Project Management includes:

the use of all kinds of strategies and support mechanisms for the management of a portfolio of projects

the integrated management of different projects (whether it be a marketing project, customer-centred projects, R&D, knowledge management, organisational restructuring etc.)

optimization of the use of resources in single projects The following definitions are important for the understanding of the present framework: Programme: a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programme Management - the centralized coordinated management of a programme to achieve the programme’s strategic objectives and benefits. Portfolio: A collection of projects or programmes and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programmes of the portfolio may not necessarily be interdependent or directly related. Portfolio Management: The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing and controlling projects, programmes, and other related work, to achieve specific strategic business objectives.

5MultiProject Management Framework- EFQM 2010

What challenges does Multi Project Management hold for your company? Improved management of resources and changes, more efficient management of innovation and lessons learnt, and the development of a common project culture, linked with a proper Multi Project Management approach, implies the conscientious implementation of good practices, and are not the spontaneous result of delivering a collection of projects. In alignment with those specifically defined and elaborated organisational features, appropriate project management methods and tools need to be adapted as a way to take advantage of the Multi Project Management potential within different contexts. Five main challenges exist:

Allocation of resources Projects need to be managed within a framework of shared, common resources and facilities, i.e. within the boundaries of available delivery capacity. Allocating and optimising the use of shared resources, in order to avoid over or under utilisation, appears to be key in reducing project costs and delivery times. Attention has to be paid to the difference between multiple internal and customer projects.

Prioritisation Most time should be spent on value-added tasks and a process has to be in place to choose those that yield higher and better results. Often this has to be done amongst projects with different, external stakeholders.

Delegation All but the most important task have to be delegated. Trust in teams has to be higher than in other situations. Therefore it is recommended to have people you have worked with before and / or people with experience in Multi Project Management environments.

Integration of project scheduling Having a Multi Project Management view, enables management to select the projects that need to be executed first and probably at the same moment. This requires proper project portfolio management and resources sharing. Different tasks and phases of projects can be scheduled in harmony in simultaneous time slots.

Introduction of Innovation Newly introduced concepts or innovations, whether based on technology, ICT, organisational managerial aspects, have to be properly put into operations in order to not compromise the overall success of ongoing projects and business development.