How To Build Successful EPMO?

Are your real estate development ambitions crumbling under the weight of chronic delays and budget overrun?

Every missed deadline and overrun, not just eroding your profit margins, but it is turning your strategic goals into dust. Are you ready to control it and stop the risk of failure?

Is this the legacy you want to leave as a business leader – a trail of stalled projects and shattered dreams?

Do you feel frustrated by EPMO processes that is helpless of giving you full project controls and seem more like bureaucratic burdens than valuable tools?

Let’s face it, in the cutthroat world of real estate development, the main KPI of any real-estate development is the alignment between the development business case and the control over changes on the long years from concept to close out.

Enterprise Project Management Office (EPMO) could be your game-changer if implemented correctly to provide you the right insight before you face the challenges which are many before it becomes a risk dragging you on a serious of reactions dragging you more into a nightmare and more bleedings.

EPMO understanding of the complex processes between meeting the starting business goals and the engineering requirements is a key for success. For instance, a decision to flattening the project site as a business decision without considering all engineering thinking will lead (with no doubt to delays and cost overrun). Similarly, going for a dream and unusual design concept, would means a lot for challenges starting with getting the right skills and the right workshop to implement it.

So how can you elevate your EPMO from a project controls tool to a successful project delivery rocket?

Let’s start by highlighting the duration for projects development is a long process for a product we did not see or did before on more than 90% of any development projects. This long duration along with the reality of construction complexity on the ground and the markets uncertainties is your first risk which you should manage. You should deliver on a certain time frame and stick with it to avoid the market uncertainty which is approved always that it is a strategic killer for any real estate development goals.

The second risk to control is to keep the business case a live document to be the main controller for any change and ambition decision and dream which might hinder the whole project goals.  

The third risk is not allowing your property management operations to manage the delivery process from concept. They are the sellers; they are the responsible people to maintain the property and the are the main responsible owner of the business case. The project delivery is their delivery hand only.

The fourth risk is not aligning the EPMO process methodology and the governance appetite with the people DOA. Project delivery governance owners are key decision makers with the operation management (not the business leaders). For example, applying agile governance which is needed a lot can’t be done with a delivery team which will vanish when the construction is done. The decision makers should be people who are accountable for their decisions on the long run. For example, a CEO of a company or a director of a company who fails to deliver might be banned from establishing a new real estate development company.

Now, after you control the main risks on the beginning, lets drill into the EPMO implementation process and governance to make works. This principle can be applied even for the established EPMO with small changes.

Think of a EPMO not as another layer of management, but as a powerful optimization engine. It streamlines processes, centralizes resources, and provided real-time data, and insights empowering you to achieve the main EPMO goals which are:

Standardizing The Project Delivery

This refers to the process of establishing consistent and uniform practices across an organization. In project management, this means defining standard methodologies (e.g., Agile, Waterfall.. etc.) and templates (project plans, risk assessments) for project initiation, planning, execution, monitoring, and control. Standardizing these processes ensures everyone involved in the project understands the expected approach and follows the same steps.

Tip: never comprise on eliminating steps on the project delivery process unless you have proper governance and risk controls around it.

Project Governance

This is the broader framework that defines how projects are managed and controlled within an organization. It encompasses standardizing processes, but also includes other aspects like:

• Roles and responsibilities: Who is accountable for making decisions, managing resources, and overseeing project execution?
• Decision-making authority: Who has the authority to approve project changes, allocate resources, or address major roadblocks?
• Risk management: Establishing a framework for identifying potential risks, developing mitigation plans, and monitoring risk throughout the project lifecycle.
• Communication and reporting: Defining clear communication channels and standardized reporting procedures to ensure everyone involved has access to the latest information.

Tip: Design the DOA with the quality of people in mind. Any trust issues during implementation, means problems so choose the people wisely and align the governance of decision-making agility around their reputation and shared values more than experience.

EPMO Implementation (Understand the Potential Pitfalls Early)

While a well-implemented EPMO offers significant advantages for real estate companies, the implementation process itself can encounter challenges. Here’s a breakdown of potential pitfalls and strategies to mitigate them:

Pitfalls During Implementation

• Lack of Clear Goals and Objectives: Without clearly defined goals (e.g., reduce project delays by 20%), it’s difficult to measure success and assess the EPMO’s impact.
• Focus on Tools over Processes or Process over Tools: While choosing the technology and systems define the processes implementation time, designing processes without considering the applicable system or thinking about one system and tweaking the processes around it, can lead to a EPMO implementations problems which you will live with in pain during delivery and create many governance and delivery issues.
• Inadequate Stakeholder Buy-In: Without buy-in from senior management and key stakeholders across departments (development delivery, property management, procurement, etc.), the EPMO might face resistance and limited adoption of new processes.
• Unrealistic Expectations: Expecting immediate and dramatic improvements can lead to disappointment. A phased implementation with realistic timelines is crucial.
• Poor Communication and Change Management: Inadequate communication about the EPMO’s purpose and benefits can create confusion and resistance. A well-defined change management plan is essential.
• Insufficient Training: Without proper training on EPMO processes and tools, staff might struggle to adopt the new system, hindering its effectiveness.
• Scope Creep: Starting with an overly ambitious scope can overwhelm resources and delay implementation. A phased approach with a well-defined initial scope is recommended.
• Integration Challenges: Integrating the EPMO with existing systems (ERP, CRM) can be complex and require careful planning to avoid data silos and duplication of effort. Consider the integration while you are designing the processes.

Now after we thought about the early risks and normal pitfalls lets design the key strategies for success:

 Success Factors

• Clearly Define Goals and Objectives: Outline specific, measurable, achievable, relevant, and time-bound (SMART) goals for the EPMO to ensure alignment with company objectives.
• Secure Stakeholder Buy-In: Actively engage senior management and key stakeholders from various departments. Demonstrate how the EPMO benefits their specific needs and how it aligns with the company’s strategic goals.
• Set Realistic Expectations: Communicate a realistic timeline for achieving results. Focus on demonstrating early wins and progress through clear metrics and reporting.
• Effective Communication and Change Management: Develop a comprehensive communication plan to keep stakeholders informed throughout the process. Implement a change management strategy to address concerns, provide training, and foster user adoption.
• Invest in Training: Provide comprehensive training on EPMO processes and tools for all relevant staff. Ongoing support ensures continuous improvement and knowledge retention.
• Focus on processes while suitable system is in mind: Establish standardized project management processes framework fit for organisation purpose and capability before introducing technology. After that design the processes and leverage EPMO tools to automate and streamline existing processes.
• Phased Implementation: Start with a defined core set of functionalities and expand the scope based on success and user adoption. Don’t pressurize the organisation team with implementation challenges while they are delivering.
• Address Integration Challenges: Thoroughly plan system integrations, considering data mapping, security measures, and user access controls.

Tip: If you have a plan for a major project, make it your pilot project. Let the consultant who will supervise (the design and construction) bring their EPMO system with them, implement it while delivering the project, test it, train your staff on it and expand it to other departments when successfully applied. (Here there is an implied tip too. Think about it!).

Now, after you successfully implemented the EPMO what can hinder EPMO during delivery:

• Lack of Ongoing Support: Without ongoing support and improvement, the EPMO can become stagnant and fail to adapt to evolving project management needs.
• Insufficient Resources: Inadequate staffing or budget allocation for the EPMO can limit its effectiveness in supporting projects and achieving goals.
• Inflexible Processes: EPMO processes that are overly rigid or fail to adapt to project variations can hinder efficiency and discourage user adoption.
• Limited Data Quality: Inaccurate or incomplete data can lead to unreliable reports and hinder informed decision-making based on EPMO data.
• Poor Measurement and Reporting: Without effective measurement and reporting, it’s difficult to track progress, identify areas for improvement, and demonstrate the EPMO’s value.

By anticipating potential pitfalls and implementing these success strategies, you can significantly increase your chances of achieving a successful EPMO implementation that delivers the desired results for your projects delivery and organisation goals.

 Project Controls

Now let’s see how we can utilize EPMO to take control of projects delays and cost overrun.

One of the above risks we managed in the beginning are the governance controls while we design the processes. This is the first point to look how EPMO works within the organisation. There is misconception of making the EPMO under full control of development and delivery team which makes issues with other departments. EPMO in a real estate company system which is turning the organisation into project-based delivery organisation. The EPMO board is (the CEO, the CFO, the property management head, the strategy head, selling head, development and delivery head and technology head, the head of project controls (report directly to the CEO)). All are responsible and have access to the EPMO data and they are monitoring their responsibilities during any decision impacting it.

Tip: There is also project development and delivery PMO (which is more about portfolio controls within the EPMO). Here the portfolio governance is the main driver and aligned with the overall EPMO).

Having said the above, what do you think is the Cost of EPMO Implementation:

The cost of implementing a EPMO can vary depending on several factors. It varies based on the size of the company from USD50k to USD2 million until going live. This cost including the following steps and tools:

• Scope of EPMO Services: A comprehensive EPMO covering project management, portfolio management, resource allocation, governance, and reporting will be more expensive than a basic EPMO with limited functionalities.
• Implementation Approach: Consultant-led implementation offers expertise and faster setup but comes with higher costs. Internal implementation using existing resources is more cost-effective but takes longer.
• Tools and Technology: EPMO software licenses, infrastructure, and chosen tools contribute to the cost. Cloud-based solutions offer subscription models, while enterprise-grade software requires significant upfront investment.
• Training and Change Management: Training staff on EPMO processes and tools is essential. Costs include training materials, workshops, and ongoing support. Change management efforts to ensure adoption and alignment with organizational goals also impact costs.

While the cost can be significant, a well-implemented EPMO can generate substantial returns on investment through increased project success rates, improved efficiency, and better cost control.

Let me finally provide you with a suggested Scope of EPMO through A Phased Approach:

Once you’ve considered the cost factors and determined it aligns with your budget, you can move forward with a phased implementation process. Here’s a breakdown of the key steps involved in each phase:

Phase 1: Foundation and Core Functionalities

• Standardization and Governance: Define and document standard project management methodologies tailored to your company’s needs (e.g., Agile, Waterfall). Establish clear roles and responsibilities for project stakeholders, including the EPMO team. Develop governance frameworks for project approvals, risk management, and change control.
• Project Management Processes: Implement standardized templates and tools for project initiation, planning, execution, monitoring, and control. These can include project charters, risk assessments, communication plans, and status reports.
• Resource Management: Develop a central resource pool to identify and allocate skilled personnel across projects effectively. This might involve a skills matrix and resource request/allocation processes.
• Basic Reporting and Dashboards: Set up core reporting functionalities to track project progress, resource utilization, and key performance indicators (KPIs). Real-time dashboards summarizing project health can be valuable for management oversight.

Phase 2: Building on the Foundation

• Advanced Project Management Techniques: Consider implementing more advanced project management methodologies like Earned Value Management (EVM) for complex projects.
• Portfolio Management: Develop a portfolio management approach to prioritize projects based on strategic alignment and resource availability.
• Advanced Reporting and Analytics: Implement more sophisticated reporting tools to analyze project performance trends and identify areas for improvement.
• Integration with Existing Systems: Explore integrating the EPMO with existing enterprise systems like ERP or CRM for data exchange and improved information flow.

As I mentioned above, even if you had your EPMO established the above mind set can be applied to fix your pitfalls and problems. Just use new mindsets because the same people who create the problems will be short of solving it easily while delivering the projects although, their input and views are very valuable to understand where the pain points are.

I hope the above gives you some ideas to implement your successful strategy and project delivery. Remember, EPMO is the tool only.

Please comment, be critical and discuss the above method and give us your experience on similar implementations. wishing you all the best,

Engr. Ziad Al-basir

EPMO and Project Controls Consultant.