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Implementing a Project
Management Office


Ricardo Viana Vargas, MSc, IPMA-B, PMP
ricardo.vargas@macrosolutions.com.br

                  © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Ricardo Viana Vargas, MSc, IPMA-B, PMP
Ricardo Viana Vargas is a project, portfolio and risk management specialist. During the past 15 years, he has been responsible
for over 80 major projects in various countries in the areas of petroleum, energy, infrastructure, telecommunications,
information technology and finances, comprising an investment portfolio of over 18 billion dollars.


He was the first Latin American volunteer to be elected Chairman of the Board for the Project Management Institute
(PMI), the largest project management organization in the world with close to 500,000 members and certified professionals in
175 countries.

Ricardo Vargas has written ten books on project management, published in Portuguese and English, which have sold over
200,000 copies throughout the world. In 2005 he received the PMI Distinguished Award for his contribution to the
development of project management and the PMI Professional Development Product of the Year award for the PMDome®
workshop, considered the best project management training solution in the world.

He is a project management professor for various MBA courses, and actively participates on editorial boards for specialized
journals in Brazil and the United States. Vargas is a recognized reviewer of the PMBOK Guide, the most important reference in
the world for project management, and also chaired the official translation of PMBOK into Portuguese.

He is a chemical engineer and holds a master’s degree in Industrial Engineering from UFMG (Federal University of Minas
Gerais). Ricardo Vargas also holds a Master Certificate in Project Management from George Washington University and is
certified both as a Project Management Professional (PMP) by PMI and as IPMA-B by the International Project Management
Association. He attended the Program on Negotiation for Executives at Harvard Law School.

Over an eleven year timeframe, which began in 1995, Ricardo, in conjunction with two partners, established one of the most
solid Brazilian businesses in the area of technology, project management and outsourcing, which had a staff of 4,000
collaborators and an annual income of 50 million dollars in 2006, when Ricardo Vargas sold his share of the company to
dedicate himself on a fulltime basis to the internationalization of his project management activities.

He is a member of the Association for Advancement of Cost Engineering (AACE), the American Management Association
(AMA), the International Project Management Association (IPMA), the Institute for Global Ethics and the Professional Risk
Management International Association (PRMIA).

                                                                                                                                 2
                      © BY MACROSOLUTIONS SA. TODOS OS DIREITOS RESERVADOS
Agenda

 Introduction

 Current Scenario

 5 Don’t’s

 5 Do’s

 The Challenges in the Implementation of PMO’s

 PMO Trends

 Conclusion

          © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
PMO


 The Project Office is the central place to:

 • Conduct, plan, organize, control and finish the
   project activities;
 • Obtain an overview of the project without
   getting into details;
 • Be the main information and control center.

 It can also be the project team’s
 home, where all support is to be found.
        © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Justifications


There is no standard way to report performance.

The project managers are overloaded and with no
time to analyse information and make decisions.

Lessons learned are not documented.

Project management is acknowledged as a critical
competence for achieving success.

        © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Portfolio Management



              Corporation                        Strategy




                              Portfolio
      Goals                                                      Assets
                             Management




                     Projects              Resources




       © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Justification for the Implementation of PMO’s




        © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
PMO Benefits




       © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Critical Factors for the Implementation




        © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
The Value of Project Management

 Quite a few
 corporations
 which do not
 use project
 management
 still manage to
 achieve success
 without wasting
 time and
 money
The Types of PMO’s

Self-contained
Project

Project Support
Office

Excellence Center

Enterprise Project
Management Office
Self-contained Project

 The Project Office is separated from the company’s
 operations

 It is aimed at managing an independent project or
 program




        © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Self-contained Project Office
                                        Board




                 Self-
               contained                                    Operations
                Project



                                                                          Dept of
   PMO
                                                                          Finance


                                                                          Dept of
                                                                         Marketing
  Team            Team                  Team



         © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Project Support Office

                                               It provides support, tools and
  It is the project office aimed at
                                                 planning services, schedule
  departments/business units to
                                              controle, costs, quality, among
  support simultaneous projects.
                                                        other things.



                           It provides technical
                             resources, project
                               management
                         methodology, knowledge
                        management methodology
                       and organizational interfaces.




           © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Project Support Office
                                              Board




                     IT                  Finance              Marketing   Engineering




   PMO




 Project(‘s)         Operations



               © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Enterprise Project Support Office

 It is the project office at the corporate level, responsible
 for the strategic management of all projects in the
 corporation.


 Its main roles are:

  • Strategic planning of projects;
  • Management of projects across departments/business units;
  • Corporate knowledge management.




          © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Enterprise Project Office
                                             Board




   PMO



                   TI                   Finance             Marketing           Engineering




 Project(s)         Operations                    Project(s)            Operations




                           Project(s)          Operations

              © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
The Current Scenario


 It’s widely spoken of. Few people
 know. Almost nobody has a PMO…


 The lack of competency while
 implementing project offices is the
 cause for deep frustrations in many
 corporations.

 Wrong use of the PMO structure,
 such as the intent of “auditing” and
 “controlling” areas and business
 units.


          © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
The 5 Don’t’s of Project Management Offices

   Believe that implementing a project office only takes installing a
   software


   Not look for support from corporate executives, as if it was just a
   technical issue.


   Implement with the intent of creating an auditing structure, and not a
   collaboration structure.


   Follow the trend since everybody is doing the same...



   Be too ambitious and implement in all areas of the corporation at once.




           © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
The 5 Do’s of Project Management Offices

   Invest... Invest... Invest in culture change.


   Foster a collaboration environment that everybody can win, and not
   only the corporate executives.


   Develop the standards to be used in a democratic manner.


   Always seek to align the projects with the business objectives.


   Break the paradigm of immediate results. Accept that the realization of
   its benefits often take time.




           © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Implementation Challenges

 Overcome information decentralization.


 Obtan buy-in to the new work standards.


 Beat the “myth” of auditing and punishment.

 Have the necessary patience to accept that the results are
 not instant.

 Never give up.


         © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Conclusions

Keep focused on the details


There’s no silver bullet


Take good care of your allies

Convert opponents into collaborators.
How:
• Involve them in the process (Latham and Locke).
• Reinforce the positive aspect of the change.
• Do not be the “owner” nor cultivate envy at
  those who do not participate in the process.
• Treat change naturally. It won’t be the first
  neither the last one...

             © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
Visit
   www.ricardo-vargas.com
to access other presentations,
podcasts, videos and technical
content about project , risk and
    portfolio management.

           © BY MACROSOLUTIONS SA

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Implementing a Project Office Management

  • 1. Implementing a Project Management Office Ricardo Viana Vargas, MSc, IPMA-B, PMP ricardo.vargas@macrosolutions.com.br © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 2. Ricardo Viana Vargas, MSc, IPMA-B, PMP Ricardo Viana Vargas is a project, portfolio and risk management specialist. During the past 15 years, he has been responsible for over 80 major projects in various countries in the areas of petroleum, energy, infrastructure, telecommunications, information technology and finances, comprising an investment portfolio of over 18 billion dollars. He was the first Latin American volunteer to be elected Chairman of the Board for the Project Management Institute (PMI), the largest project management organization in the world with close to 500,000 members and certified professionals in 175 countries. Ricardo Vargas has written ten books on project management, published in Portuguese and English, which have sold over 200,000 copies throughout the world. In 2005 he received the PMI Distinguished Award for his contribution to the development of project management and the PMI Professional Development Product of the Year award for the PMDome® workshop, considered the best project management training solution in the world. He is a project management professor for various MBA courses, and actively participates on editorial boards for specialized journals in Brazil and the United States. Vargas is a recognized reviewer of the PMBOK Guide, the most important reference in the world for project management, and also chaired the official translation of PMBOK into Portuguese. He is a chemical engineer and holds a master’s degree in Industrial Engineering from UFMG (Federal University of Minas Gerais). Ricardo Vargas also holds a Master Certificate in Project Management from George Washington University and is certified both as a Project Management Professional (PMP) by PMI and as IPMA-B by the International Project Management Association. He attended the Program on Negotiation for Executives at Harvard Law School. Over an eleven year timeframe, which began in 1995, Ricardo, in conjunction with two partners, established one of the most solid Brazilian businesses in the area of technology, project management and outsourcing, which had a staff of 4,000 collaborators and an annual income of 50 million dollars in 2006, when Ricardo Vargas sold his share of the company to dedicate himself on a fulltime basis to the internationalization of his project management activities. He is a member of the Association for Advancement of Cost Engineering (AACE), the American Management Association (AMA), the International Project Management Association (IPMA), the Institute for Global Ethics and the Professional Risk Management International Association (PRMIA). 2 © BY MACROSOLUTIONS SA. TODOS OS DIREITOS RESERVADOS
  • 3. Agenda Introduction Current Scenario 5 Don’t’s 5 Do’s The Challenges in the Implementation of PMO’s PMO Trends Conclusion © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 4. PMO The Project Office is the central place to: • Conduct, plan, organize, control and finish the project activities; • Obtain an overview of the project without getting into details; • Be the main information and control center. It can also be the project team’s home, where all support is to be found. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 5. Justifications There is no standard way to report performance. The project managers are overloaded and with no time to analyse information and make decisions. Lessons learned are not documented. Project management is acknowledged as a critical competence for achieving success. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 6. Portfolio Management Corporation Strategy Portfolio Goals Assets Management Projects Resources © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 7. Justification for the Implementation of PMO’s © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 8. PMO Benefits © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 9. Critical Factors for the Implementation © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 10. The Value of Project Management Quite a few corporations which do not use project management still manage to achieve success without wasting time and money
  • 11. The Types of PMO’s Self-contained Project Project Support Office Excellence Center Enterprise Project Management Office
  • 12. Self-contained Project The Project Office is separated from the company’s operations It is aimed at managing an independent project or program © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 13. Self-contained Project Office Board Self- contained Operations Project Dept of PMO Finance Dept of Marketing Team Team Team © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 14. Project Support Office It provides support, tools and It is the project office aimed at planning services, schedule departments/business units to controle, costs, quality, among support simultaneous projects. other things. It provides technical resources, project management methodology, knowledge management methodology and organizational interfaces. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 15. Project Support Office Board IT Finance Marketing Engineering PMO Project(‘s) Operations © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 16. Enterprise Project Support Office It is the project office at the corporate level, responsible for the strategic management of all projects in the corporation. Its main roles are: • Strategic planning of projects; • Management of projects across departments/business units; • Corporate knowledge management. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 17. Enterprise Project Office Board PMO TI Finance Marketing Engineering Project(s) Operations Project(s) Operations Project(s) Operations © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 18. The Current Scenario It’s widely spoken of. Few people know. Almost nobody has a PMO… The lack of competency while implementing project offices is the cause for deep frustrations in many corporations. Wrong use of the PMO structure, such as the intent of “auditing” and “controlling” areas and business units. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 19. The 5 Don’t’s of Project Management Offices Believe that implementing a project office only takes installing a software Not look for support from corporate executives, as if it was just a technical issue. Implement with the intent of creating an auditing structure, and not a collaboration structure. Follow the trend since everybody is doing the same... Be too ambitious and implement in all areas of the corporation at once. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 20. The 5 Do’s of Project Management Offices Invest... Invest... Invest in culture change. Foster a collaboration environment that everybody can win, and not only the corporate executives. Develop the standards to be used in a democratic manner. Always seek to align the projects with the business objectives. Break the paradigm of immediate results. Accept that the realization of its benefits often take time. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 21. Implementation Challenges Overcome information decentralization. Obtan buy-in to the new work standards. Beat the “myth” of auditing and punishment. Have the necessary patience to accept that the results are not instant. Never give up. © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 22. Conclusions Keep focused on the details There’s no silver bullet Take good care of your allies Convert opponents into collaborators. How: • Involve them in the process (Latham and Locke). • Reinforce the positive aspect of the change. • Do not be the “owner” nor cultivate envy at those who do not participate in the process. • Treat change naturally. It won’t be the first neither the last one... © BY RICARDO VIANA VARGAS. TODOS OS DIREITOS RESERVADOS
  • 23. Visit www.ricardo-vargas.com to access other presentations, podcasts, videos and technical content about project , risk and portfolio management. © BY MACROSOLUTIONS SA