Published on January 9, 2009
Project Management Office (PMO) Observations 2004Vision – Mission - RealizationInternational Association of Project and Program Management : Project Management Office (PMO) Observations 2004Vision – Mission - RealizationInternational Association of Project and Program Management IT Credibility : 2 IT Credibility Recent research* has indicated that 70% of Global 2000 IT operations struggle with the business-side perception of value from IT services. Even when 99.9% SLA compliance and IT balanced scorecards are reported, the IT operations organization’s credibility is low. Reasons Uncoordinated IT requirements/initiatives Project success not measured in terms of business success Business KPIs have weak alignment with IT metrics Our challenge is to improve the IT value perception of our customers *META Group Intent : 3 Intent To drive Projects/Programs to move from operations efficiency to business effectiveness, from cost to revenue, and from project providers to business partners *Table courtesy of the META Group Achieved through Value Mgmt : 4 Achieved through Value Mgmt Definition Conception Deployment Improvement Retirement Transformation Value Creation Value Realization Value Sustenance Value Management Value Proposition Management Life cycle PMO – Value Realization : 5 PMO – Value Realization Definition Conception Deployment Improvement Retirement Value Creation Value Realization Value Sustenance Value Management Value Proposition Providing the “Motion” to turn “Vision” into “Reality” Management Life cycle Transformation Project Management – IAPPM view : 6 Project Management – IAPPM view As Core Competency Project & Program Management is a Competitive edge for Organization Issue: We promote technical people to project managers because they are good in their technical work! Project & Program Management is a Profession! Core skills that warrant specialization, formal training and recognition As Value Realization Not just about completing the projects & programs on time, budget, quality, but also what value they bring to the business Alignment of project & program metrics against business results As Flawless Execution Project Management is THE model of execution due to cross-functional virtual teaming, matrix reporting, ability to react to constant changes From Vision to Motion to Realization PMO Roles & Responsibilities : 7 PMO Roles & Responsibilities Project Portfolio management Facilitate the process of selecting and de-commissioning of projects in the Project Portfolio All projects are recognized by their customers as a positive impact (value) to their businesses – financially and functionally (capabilities). Project & Program management Enforce PMLC methodology, project management disciplines and other relevant project processes such as Change Management, etc Direct project managers and technical consultants Work with Business owners, global PMO and key customers to align project deliverables and business metrics Conduct post implementation reviews to verify the sustainability of the service/system in the first 6 months of production PMO R&R (2) : 8 PMO R&R (2) Customer satisfaction Ensure delivery of project that meets or exceeds customer expectations Process excellence Improve project management processes to drive process excellence Using the IAPPM project Dashboard (or…your own) 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 Observations : 9 Observations Strength Customer Oriented Strong Commitment Performance Rubber band management “Favor” management Base business vs Projects Energy “Hands are tied” / “Beyond my control” “People get away with non-delivery” “Weak unity in the leadership” Phase 1 : 10 Phase 1 Objective is to clearly define the project boundaries and resources, and put in simple processes to ensure consistent reporting and change management. Deliverables “What is a Project” defined PMO Handbook developed (IAPPM objective for 2004) Projects documented in an Enterprise Project System Project Resources clearly identified Project Change process incorporated Phase 2 : 11 Phase 2 Objective is to clearly capture business values and impact to your customers Deliverables Regular update of project status to customers Project value documented Financial benefits Cycle Time improvements Customer Satisfaction Change in the way “we” do business Market results Project Management funding model defined Phase 3 : 12 Phase 3 Objective is to select projects/programs that have the greatest returns of investment and/or strategic values to your organization and/or clients Deliverables Project prioritization process must be implemented Time tracking must be implemented Project metrics and business metrics must be aligned Resource allocation methodology proposed Phase 4 : 13 Phase 4 Objective is to install a governance model to review and approve project progress at each stage of the project life cycle. (applies to all methodologies) Deliverables Project portfolio management review process implemented Project start-up phase review process implemented Development/Solutioning review process implemented Project closure process implemented Post implementation review process implemented PMO Roadmap : 14 PMO Roadmap Phase 1 Projects Under Control Phase 2 Project Value Proposition Phase 3 Portfolio Management Phase 4 Project Management Governance Objective is to clearly define the project boundaries and resources, and put in simple processes to ensure consistent reporting and change management. Objective is to clearly capture business values and impact to our customers Objective is to select projects that have the greatest returns of investment and/or strategic values to the operating companies Objective is to install a governance model to review and approve project progress at each stage of the project life cycle. Organization (Short) : 15 Organization (Short) PMO Director Project Managers Consultants Managing projects Project Admin General Admin Finance Admin Short-term (6 - 12 months) Organization (Medium) : 16 Organization (Medium) PMO Project Managers Consultants Managing projects Project Admin General Admin Finance Admin Medium-term (1 – 2 years) EP PM Champ Tools PM Champ Metrics PM Champ “Work along side” Benchmark PM Champ PM Champion EP = Enterprise Projects/Programs Works alongside with project managers and consultants to train, coach, support them. PMO Funding : 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 Partnering with PMO : 18 Partnering with PMO PMO Metric : 19 PMO Metric Opportunities Baseline project commitment and Institute Project change control. Definition: Number of projects with Green schedule status Total number of projects Project Management Office Measure: Meet Project Schedule Project Management Office Measure: Meet Project Schedule Monthly Action Plan 1. Present all projects to PMO Management Team for approval of all projects in the portfolio 2. Bring in other projects into PMO Value Realization : 20 Value Realization Initiative What did we do Original Cost New Cost Value Start date 2003 Impact 2004 Impact Network Center upgrade Negotiation $3,000 $2,500 Cost Reduction 1-Nov-04 ($1,000) ($6,000) Network Backbone Negotiation $152,000 $112,000 Cost Reduction, End-to-end management 1-Oct-04 ($10,000) ($40,000) Circuit Provisioning RFP $1,331,028 $1,065,012 Cost Reduction, Increased bandwidth 1-Nov-04 ($61,550) ($266,016) Project ABC) RFP $290,000 $150,000 Cost Reduction, Improved vendor management 1-Nov-04 ($25,000) ($140,000) Project BCD Build End node $98,544 $74,808 Cost Reduction, Increased bandwidth 1-Sep-04 ($386) ($23,736) Project CDE Introduced new ISP $91,750 $53,600 Cost Reduction, Increased performance 01-Oct-04 ($6,300) ($38,150) Lost City Project Build network Better performance to enable ERP applications, desktop management 01-Oct-04 Total ($104,236) ($513,902) PMO Maturity level* : 21 PMO Maturity level* *Based on META Group Project Management Office Capability Maturity Model PMO Value : 22 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 IAPPM : IAPPM Did you enjoy this presentation? 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