Canheit Alley

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Published on January 15, 2009

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Using a Project Management Office to Drive Change and Deliver Benefits : Using a Project Management Office to Drive Change and Deliver Benefits John Alley, MBA Director, Project Management Office University Technology Services McMaster University Outline : Outline types of Project Management Office (PMO) McMaster’s PMO governance model project management tools Types of PMO : Types of PMO a continuum of types the process – PM – PMO continuum the PM triangle PM vs PMO – responsibilities Based on Competency : Based on Competency project office delivers projects basic PMO provides repeatable PM methodology standard PMO establish capability and support infrastructure advanced PMO applies PM capability to achieve business objectives centre of excellence manages continuous improvement to achieve strategic business goals Types of PMO Gerard Hill, The Complete Project Management Office Handbook, 2004 Based on Focus : Based on Focus tactical planning, scheduling, tracking and efficiency across multiple projects cross functional coordination and risk reduction for cross functional projects strategic ensure project business case is aligned with strategy enterprise for large project driven enterprises with a focus on ROI Types of PMO David Tilk, Price Waters Coopers, 2005 Based on Authority : Based on Authority consultancy resource to project managers no authority over PMs or projects centralized provides PM services to other groups PM reports to PMO matrix organization Types of PMO Megan Santosus, CIO Magazine, 2005 Based on Control Objectives : Based on Control Objectives Types of PMO Process Guidance : Process Guidance “Project Management Support Office” consulting focus 2-3 people, formal office no direct reporting by PMs relationships essential – PMs and managers deliver training flexible tools and templates consulting facilitate evaluation Types of PMO Process Guidance : Process Guidance governance may recommend governance practices may support governance body does not make decisions on project selection proof of PMO benefits hard to prove - no control of practice no control of project selection major risks seen as a project to define practice but no continuing commitment individual personalities can be blockers Types of PMO Process Control : Process Control “Project Management Office” control focus 2-3 people, formal office supported by senior management PMs report to PMO in matrix deliver training standard tools and templates conduct evaluation Types of PMO Process Control : Process Control governance same as process guidance model proof of benefits partial control practices (matrix) no control of project selection major risk managing the matrix can be a challenge Types of PMO Resource Control : Resource Control “Project Management Office” formal office with >3 PMs and project staff PMs report to head of PMO PMO responsible for: training standard tools and templates conduct project and product evaluation continuous improvement delivering solutions Types of PMO Resource Control : Resource Control governance may participate in decisions on project selection may participate in strategic planning proof of benefits full control practices no control of project selection major risk managing expectations Types of PMO Project Control : Project Control “Program Management Office” formal office same as resource control model adds planning staff head of PMO is senior management PMO responsibilities: same as resource control model Types of PMO Project Control : Project Control PMO involved in strategic plan and delivers projects to achieve that plan governance controls governance practices makes decisions on project selection does or participates in strategic planning proof of benefits full control practices full control over project selection risks strength of strategic planning will control success Types of PMO Based on Control Objectives – Summary : Based on Control Objectives – Summary Types of PMO The Process – Project Continuum : The Process – Project Continuum highly repeatable work cost stream resources geared to production usually minimize process time produces inventory / serves many customers revenue centre or cost centre manage for efficiency runs as a steady state unique work one-time cost resources as needed for project schedule and cost optimized single product / service single customer cost centre only manage scope/time/resources creates change Process Project Types of PMO The PMO - PM Continuum : The PMO - PM Continuum repeat similar(?) projects cost stream resource for number of projects usually minimize project time produces multiple products / serves many customers usually cost centre only manage for efficiency manages change unique work one-time cost resources as needed for project schedule and cost optimized single product / service single customer cost centre only manage scope/time/resources creates change PMO (resource control) Project Types of PMO The PM triangle …. : The PM triangle …. Time Scope Resources ($, people) Quality Strategy Types of PMO PM vs PMO – Responsibilities : PM vs PMO – Responsibilities Project Manager understand strategy deliver outcome/product prepare business case prepare charter manage scope, time and resources report progress select team identify / manage risks celebrate success apply learnings / best practice PMO / governing body strategic alignment define outcome/deliverable approve business case approve charter approve changes to scope, time, resources monitor progress select project manager approve risk plan celebrate success evaluate projects / define best practice Types of PMO So … what type is right? : So … what type is right? a continuum of types – one is right for you all PMOs are about the process of project management make your PMO responsible for strategic alignment get a PMO that helps your PMs Types of PMO McMaster’s PMO : McMaster’s PMO history selecting the type strategic alignment structure History : History technology environment before 2003 Deloitte and Touche risk analysis Refining Directions - 2003 Sept 2003 – CIO hired Sept 2004 – PMO formed McMaster’s PMO Selecting the Type : Selecting the Type objectives: build a culture of project management bring projects to completion deliver on a tight budget align with strategy therefore need to be able to: demonstrate the drive for change be able to achieve and sustain a new way of business select projects for strategic alignment achieve efficiency and continuously improve selected a Resource Control model McMaster’s PMO Strategic Alignment : Strategic Alignment Refining Directions University Technology Strategy identifies potential projects identifies potential governance process builds commitment to technology goals PMO recommends detailed governance process will support governance supports and develops project teams manages project team transitions McMaster’s PMO Structure : Structure McMaster’s PMO Structure : Structure McMaster’s PMO Governance Model : Governance Model business cases steering committees post-project evaluation product evaluation Business Cases : Business Cases business cases in public sector benefit metrics (qualitative) student benefits faculty benefits cost metrics – all inclusive ROI / present value / 5 yr constant dollars opportunity cost capability / commitment weighting of factors Governance Model Steering Committees : Steering Committees accountable for project scope, time, budget approve project plan monitor progress approve minor trade-offs in scope, time and resources guide and support PM promote the project and benefits accountable for achieving benefits Governance Model Post Project Evaluation : Post Project Evaluation owned by PMO lessons learned in managing project project team business area promoted by PMO for continuous improvement Governance Model Product Evaluation : Product Evaluation steering committee (or sponsor) accountable for achieving business benefit PMO role in measuring based on project metrics defined in business case PMO accountable for brining learning into project selection process Governance Model PM Tools : PM Tools budget control risk analysis project status reporting project charter future initiatives Budget Control : Budget Control PM Tools Risk Analysis : Risk Analysis PM Tools Project Charter : Project Charter PM Tools Status Reports : Status Reports PM Tools PM Tools : PM Tools budget control risk analysis project status reporting project charter future initiatives requirements documentation testing tools – regression, load standard development test environments infrastructure standards Conclusion : Conclusion there is a type of PMO for every need a resource control PMO suits McMaster an effective governance model is key there are many project management tools that can be adapted to your needs Conclusion : Conclusion a PMO can help achieve change new org unit shows commitment to change with the right type – aligns with strategy build strong, enduring relationships develop staff Conclusion : Conclusion a PMO can deliver benefits permanent staff saves costs – eg on a 10 person team: one wrong hire adds 2-3% hiring contract staff adds approx 10% better practices reduce re-work – eg. requirements identified during testing: add 30% to development and testing costs add 15% to project costs and schedule Q & A : Q & A Copies of templates available from CANHEIT web site. If you wish other sample templates for these and other topics, I have a growing library of examples: alleyj@mcmaster.ca

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