1. PMO
Research
Project Management Office Value
London 2008
2. PMO – Value Proposition
A 2002 study by KPMG found 65% of the companies surveyed reported that their projects were:
Grossly over budget
Far behind schedule
Involved non-performing technology
Over half of the executives interviewed believed that this state was Normal
According to the Standish Group:
50% of projects cost twice their budget
16% of software development projects are completed on time
31% of projects are cancelled before completion
3. PMO - Managing Risks
Controls – Define, implement and enforce measurements
Expectations – Ensure consensus at project inception
Key elements – Standards to ensure completeness
Requirements – Change management controls to prevent creep
Communications – Required reviews and health checks
Project Complexity – Review of projects by senior staff
Project Management skills – Mentoring and education programs
Implementation strategy – Application of best practices
Roles and responsibilities – Clearly defined and understood
Leadership and sponsorship – Obtain and maintain commitments
4. PMO – Goals
Customer satisfaction
Ensure delivery of project that meets or exceeds customer expectations
Process excellence
Improve project management processes to drive process excellence
Value realization
Capture and communicate benefits and any positive/negative change to the business resulting from the project
Compliance
Security and regulatory requirements must be able to be built in as part of the deliverables of the project results. Not an after-thought, but planned
activities.
Transition management
Manage transition of People, Processes to close the loop of project completion
Leadership and sponsorship – Obtain and maintain commitments
5. PMO & Maturity Model
Maturity Level Key Point Performance Effective Span Key PM Focus Planned Deliverables
5 Integration within Continuously improving Enterprise PM Center of Excellence •Improvements
Optimizing business Continuous Improvement •Knowledge base additions
strategy &
operations
4 Solidify gains & Comprehensive; high Multiple Business Units Committing to a project • Performance measurement &
Refining PM expand Quality; high management culture improvement
Process customer satisfaction • Knowledge base (e.g., estimating
2 – 5 years
data)
3 Macro-level Integrated; Multiple Project Implementing PM • Move to project-based (matrix)
Standardizing PM Change positive value-added processes for organization
Process results Governance & multi- • Program management
project management
Decreasing Risk
2 Stabilize Local consistency; Single Project Introducing a structured • PM Methodology & tools
Controlling Performance Short term positive PM approach • Measurement
Projects results Portfolio controls • Central project repository
• PM Training
1 Acknowledge Ad hoc; heroes, Pilot projects; single Using inconsistent PM • PM Framework
Defining PM negative impact inconsistent results business area processes • Development methods
(Common • PM Training
Process) • Executive orientation
• Common language
7. PMO - Transition Management
Transition Management
Portfolio Program Multi-Project Single Project
Management Management Management Management
Purpose Selection and Create and Resource Perform
Prioritization Manage Allocation Provide
products, information
processes and
services
Focus Strategic Strategic/ Tactical Tactical
tactical
Planning Long and Long term Medium to Medium to short
Emphasis Medium Term Short Term
Responsibility Executive with Program Project and/or Project manager
PMO support manager with Functional with Functional
functional (Resource) manager support
support Manager with
PMO
9. Which PMO?
Project Office Basic PMO Standard PMO Advanced PMO Center of Excellence
Manage the preferred Establish essential Introduce PM structure Expand PM and Review and analyze
project team structure project roles and business alignment project organization
relationships and structure
• Specify standard • Evaluate PM structure • Develop PMO • Analyze effectiveness
roles for project team options organizational of PM organization
members alignment
• Implement preferred • Examine
• Facilitate internal project team structure • Align project effectiveness of
business unit managers with PMO project team structure
relationships • Implement preferred
PMO staffing • Manage broader • Identify capability
• Identify project structure stakeholder associated with
stakeholders alignment current structure
and participation
10. PMO – Big Picture
Level of Services
Strategic
Strategic PMO Components
Span of Control
• Organization
Permanent • Structure
on
Enterprise
Enterprise
• Communications
ti
• Competencies and
lu
Capabilities
vo
Program
Program
• Risks and Issues
E
• Staffing and
Temporary Procurement
Project
Project
Reporting Guidance Full
Reporting Guidance Full
12. PMO - Roadmap
Portfolio Management Program Management Project Management
• Translate the • Establish standards • Plan, control and
Strategic Plan, to and procedures to execute the
create a portfolio of manage portfolio component projects.
programs. components.
• Provide and control
• Manage resources • Manage the resources to ensure
and capital at the execution of success of the
highest level programs and inter- Strategic Plan, from
disciplinary points of the ground up.
interaction.
13. PMO - Roadmap
Strategic
Assess Strategize Plan Implement
Review
Translate Assess the Determine Create and Set it up
the firm’s state and strategic approve a
Roll it out
Strategic capacity of approach, tactical plan
Plan into a Program scope of to make the Staff it
portfolio of Management services strategy a
Train the
work to be in place today and span of reality
owners and
performed control to be
stakeholders
taken
Strategic Program Management Approach
Enterprise Program Management Approach
14. PMO - Roadmap
Execution
Executive
Sponsor
• Tools
• Training & Mentoring
Steering Enterprise
• Executive Reporting
• Vendor Management Committee PMO
• Program/Project Managers
• Organization Model Program PMO
• Methodology Development Manager
• Governance Procedures
• Subject Matter Experts
Team 1 Team 2 Team 3
• Development Facilities
• Integration Services
Project Teams
15. PMO Value
PMO strives to be a full-service provider
PMO Mindset
Integrator - Assimilating technology, people, process, equipment to a common goal
Facilitator - Creating collaborative opportunities to turn intentions to actions
Accountability Experts - Embracing the ownership of results to meet expectations
in time, budget, quality and customer satisfaction
16. PMO Functional Deployment
Senior PMO Project/
Staff Program
Managers
Director Manager Process- Project
specific management
expertise expertise
Ensuring
no overlapping Prioritizing Involving
projects projects stakeholders
Ensuring
Providing data for end-game becomes
decision making Ensuring business-as-usual
projects can be Providing tools for
Ensuring executive deployed broadly data mgmt
support
coordinating project Increased developing project
management activities management processes
productivity
17. PMO Funding
PMO cost should be fully funded by projects
Customer projects – by customers
Internal Projects – by Department sponsoring the project
Global projects – by the Global Capital Budget – fund allocation.
Short term to leverage technical consultants who have strong project
management skills, and engage contract project managers
Long term to recruit permanent resources justified by demand, and supplemented
by contractors
Run like a “business”
Generate demand through effectiveness
Driving cost down through Internal Projects and skills development
Strive for cost transparency to manage the right cost drivers