5G. The Project System

5G1. The project system is the enterprise-wide system for governing the projects and initiatives in the organization.
5G2. There should be one owner for the organization’s project system.
- 5G2i. The project system owner has individual accountability for the system used to manage projects/initiatives across the organization.
  - 5G2ia. Initiatives are internally focused large-scale projects and will be referred to generically as projects. The system for managing them falls under the generic term project system.
  - 5G2ib. The owner may or may not have a team that works with her to oversee the project system.
5G3. The organization’s project system should include:
- 5G3i. A methodology for defining innovative business solutions (the upfront part of the project process).
- 5G3ii. A standardized, team-based project methodology for planning and managing projects.
- 5G3iii. A standardized project steering process that sectors and vectors can use for managing their project portfolios. The process should include selection, funding, oversight, and lessons learned.
- 5G3iv. A continuous improvement process for the project system.
5G4. Project steering process:
- 5G4i. A successful project steering process produces a portfolio of completed projects/initiatives that collectively achieve the goals of the Sector or Vector Steering Council.
- 5G4ii. The process starts with strategic goals being decomposed into achievable deliverables that will be produced by projects or initiatives.
- 5G4iii. Projects to improve or redesign sector elements are overseen by the Sector Steering Council. Projects to improve internal organizational operation are overseen by a Vector Steering Council.
- 5G4iv. The steering council oversees the selection process for adding projects to their portfolio of projects.
  - 5G4iva. In the selection stage, the Steering Council should first ensure the proposed solution is the best possible solution. This is done by having a team work through the steps of creating an innovative business solution. This will ensure that the solution to be selected is both innovative and adoptable.
- 5G4v. The Steering Council then selects the solutions and projects to be included in a portfolio and prioritizes them.
  - 5G4va. Based on the priority, projects are allocated resources to complete the startup and planning phases.
  - 5G4vb. Once planning is complete, the team reviews the plan and allocates the necessary resources and funding to move the project into the Creation and Adoption phases.
- 5G4vi. Once a project is in Creation, the steering process moves into the oversight stage.
  - 5G4via. The oversight stage is when project status is reviewed, change requests are approved or denied, and projects are re-prioritized as needed.
  - 5G4vib. Oversight also requires the periodic review of projects for “go/no go” decisions for continuing the project.
- 5G4vii. The project system owner collects project system improvement recommendations from the various Sector and Vector Steering Council teams.
  - 5G4viia. Improvements to the project system are initiatives that are funneled through one of the Vector Steering Councils.
5G5. The rules of the project system include:
- 5G5i. Define the best possible solution before a project/initiative is launched.
- 5G5ii. Funnel all projects through a sector or vector project steering process.
- 5G5iii. Do not start up projects if there are insufficient resources to properly plan and then complete them by the required deadline.
- 5G5iv. Projects that aren’t started are prioritized so they can get started in order of importance when resources become available.
- 5G5v. Ensure that each project has a single project leader.
- 5G5vi. Ensure that each project has a single project sponsor.
- 5G5vii. Use a standardized collaborative project management method for all projects.
- 5G5viii. Base prioritization of projects on the prioritized set of goals.
- 5G5ix. Have repeatable technical business processes for projects to use.
- 5G5x. Have a standard collaborative project management methodology that is used by all teams.
5G6. First steps for implementing a project system:
- 5G6i. As organizations begin the shift to MM 2.0, they often don’t have sector and vector structures in place, so one of the first steps is to create a single Project Steering Council (PSC) that oversees all projects (internally and externally focused) within the organization.
- 5G6ii. The PSC should be a cross-functional team of senior leaders. They manage the entire project portfolio of the organization (at a strategic level). If there are too many projects for one council, subcouncils can be created that report back to the PSC. These should be established based on categories of projects such as enterprise-wide projects, revenue producing projects, cost reduction projects, etc. They should not be functionally aligned.
- 5G6iii. Each subcouncil is allocated a percentage of the total project resources to deploy in order to accomplish its goals. It then defines which programs and projects are needed to fulfill those goals.
- 5G6iv. Everyone who sits on the PSC shares accountability for the goals for the portfolio. Therefore, everyone on the PSC has team accountability to meet those goals. The leader of the PSC has individual accountability for those same goals.
- 5G6v. The rules for the PSC are the same as those cited above for the MM 2.0 project system.

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