Project Management Office (PMO)

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Information about Project Management Office (PMO)

Published on July 3, 2009

Author: anandsubramaniam



PMO Framework & Phased Implementation Roadmap

Project Management Office Framework & Phased Implementation Roadmap Anand Subramaniam

“Planning is an unnatural process; it is much more fun to do something. The nicest thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression.” - Sir John Harvey-Jones 2

Highlights  Projects Managed without PMO  Projects Managed with a PMO  PMO Life Cycle & Critical Success Factors  PMO – Maturity, Objectives  Link – PMO to Enterprise Strategy  PMO relationship to PPM, Program & Projects  PMO – Function, Type, Resourcing, Method & Control  PMO – Implementation Framework  Planning & Assessment  Roadmap  Lesson Learned  Advanced PMO Model for Project Portfolio Management 3

Projects Managed without PMO

Project - Success & Failure Rates Reason = Inadequate Planning & Governance Large Programs Success Rates Why Projects / Programs Fail Others Poor Organisation & Successful Project Management Technical Problems Practices 11% 16% Problems with Suppliers 4% 4% 36% Insufficient Project 53% Personnel Resources 10% 31% 15% Cancelled 20% Ineffective Project Under Perform Planning Poorly Defined or missing Project Objectives Source: Standish Group International, Survey from 2500 personnel attending project management training 5

Do you face this ... Source -Running the Successful Hi-Tech Project Office - Eduardo Miranda 6

Project - Current Challenges Inaccurate scope definition and / or Inability to achieve on time, on no detailed project plans to achieve it budget and quality of the deliverables due to lack of controls Scope not tightly controlled leading to Lack visibility on project ROI goals unmet procurement and / or Current contract management Lack visibility on Challenge management s Lack buy-in due to less / resource demands no project communications and / or loads Lack rigor in risk Inability to review management / QA existing projects No or irregular against changing project health Poor or no documentation priorities / checks carried out and records management in conditions place 7

Project - Opportunities / Risks Opportunities Risks • Identifies gaps in realisation of • Fragmented project plans strategic objectives • Poorly defined project mission & • Escalates current risks and tasks identifies potential risks earlier • No clear process for escalating • Ensures proper communications risks to senior management to relevant stakeholders • Insufficient reporting to support • Improves monitoring and control top-management decisions of projects • Ineffective enforcement of project • Mediates issue resolution controls and policies • Increases efficiency in tracking • Conflict between line and project progress of projects managers • Integrates project plans for all • Projects do not meet deadlines projects – standardises progress and / or milestones reporting • Lack of standardised reports and reporting frameworks 8

Projects Managed with a PMO

Why PMO? If a firm runs multiple, cross-functional projects concurrently, then it needs … Continuous improvement Repeatable Accurate culture, continual progress project delivery estimates based review towards completion & process & less on firm’s history & improved ROI “reinventing the lessons learned wheel” Why Management and Priorities managed up-skilling resource PMO? based on timelines, budgets, resource loads, what-if analysis Senior information Managemen Consistent Project t support Accurate Management and and direction resource guidance (methods, management systems, processes, across projects tools, metrics etc) 10

Manager – PMO & Project PMO Project Manager Manager Help Plan Advise Track Review Initiate Facilitate Control Audit / QA Manage Mentor / Coach Execute Strategic Planning Estimate Train PM Resources Organise Manage Project Communicate Knowledge 11

Stakeholder Experience with a PMO Scope Managed & • Improved time to market • Increased project effort visibility Delivered • Project goals & scope well understood & managed • Improved communication & stakeholder relationship • Resources managed Stakeholder • Reduced redundant project efforts • Reduced rework with • Decrease cost overruns repeatable process Experience with repeatable process Less Cost Time Lines Met Overruns 12

PMO – Life Cycle & CSF

PMO Life Cycle Loop – Overview Strategic Business Planning Project Continuous Improvement Management Business Office Process Reengineering Project Maturity Portfolio Projects Models Management 14

PMO Life Cycle – Critical Success Factors Leadership, Commitment Sponsorshi p Organisation Benefit Alignment Assurance Continuously Capture PIR, Lesson Learnt Project Select. Prioritise Improve Measuremen Critical Capability Success t Development Factors Coach / Mentor Risk, Defects, ROI, QA Collaborate Communicate Knowledge Mngt Prof Development Project Stakeholder Management Managemen Process, Standards t Tools, Project Plan checklist Managemen Communication, Integration Risk, Quality, Com, Cost, Time etc t 15

PMO – Maturity, Objectives

PMO - Maturity Levels Tactical Strategic Source – The Complete Project Management Office Handbook - Gerard M. Hill 17

PMO - Objectives Source – The Complete Project Management Office Handbook - Gerard M. Hill 18

Link – PMO to Enterprise Strategy

PMO – Conceptual Overview Projects Drill Down Capability Status Executive Business Management Project Portfolio Units Database Policy Vision / Mission Budget Proposals Approvals/Adjustments/Status Firm’s Strategy Business Cases Business Trends Project Justification Direction Standard Program / Project Reporting PMO Requirements • Status • Overview • Funding Evaluation Training • Issue Resolution • Risk Management • Exception Analysis • Business Function • Scope Management Resource PPM Tools • Contract Management Pool • $$ / Time Performance PPM Operations • Resource Forecast & Guide Analysis Contractor Process Database Library 20

PMO - Strategy Alignment Feedback Direction Governance Governance Enterprise Review Review Board Strategy Board Business Unit Delivery Strategy Prioritisation Prioritisation Project Management Program / Office Project QA / QC Manager Project Status Reports, Time Sheets, Expenses, Project Schedules Feedback Feedback 21

PMO Owners Sponsors Executives Auditor / QA Project Team Users/Consumers Support & Maintenance Value Category  X X Pla nn ing X Pr ior i t is X X X at i De on li v er y X X an To de ols xe ,b cu es t io X X Me tp n nto r ac r in t ic g es X X X X Mo n it or ing X X Re an po d /o r ti rt X ng r ac X Qu an ki n al i dv g ty i si bil as i ty X X Ri su sk r an ma ce na X X X X I ss ge ue me r es nt olu t io n PMO - Business Unit Alignment 22

Project / Initiative - Governance Review Initiative # Initiative Description Initiative Deliverables   Key Resources Required Inputs / Dependencies   Key Stakeholders Costs / investments Required   Initiative Project Sponsor Initiative – Project Owner   Scope – In & Out Business Benefits   23

PMO inter-relationship with Project Portfolio, Programs & Projects

Project Portfolio Mngt & Governance Project Portfolio Management (PPM) and Governance Process Enterprise Information (Critical Success Factors, Strategy/Goals/Objectives, Key Performance Indicators) Governance Process (Project Selection Criteria, Track - Project Goal Achievement , Customer Experience) PPM - Information Portal PPM Support Tool PPM Reports / Score Card / Dashboard PM Resource Pool PM Skills Development, Coaching, Mentoring PPM Repository PM Methodology, Standards, Templates, Tools, Checklist Project Management Office or Program Management Office (PMO) PMO Support Tool PMO Reports / Score Card / Dashboard PMO Repository PMO – Specific Methodology Options, Tools, Checklists Programs & Projects (Pg / Proj) Pg / Proj #1 - Repository / Status Infor. Control, Communication, Documentation, Lesson Learned Pg / Proj #2 - Repository / Status Infor. Control, Communication, Documentation, Lesson Learned Pg / Proj #3 - Repository / Status Infor. Control, Communication, Documentation, Lesson Learned 25

Org Structure – PMO & Projects PSC members – Names Project Steering Committee (PSC) Stakeholder Forums / Committees  Project director – Name  Project Advisor – Name    Project co-ordinator – Name Project Management Office (PMO)  Project Quality Assurance – Name Project support – Name Management Consultant – Name  Master planning – Name  Risk Advisor – Name Sub-project owner Sub-project owner Sub-project owner Sub-project owner Sub-project owner Sub-project owner Sub-project owner Name Name Name Name Name Name Name Sub-project # 1 Sub-project # 2 Sub-project # 3 Sub-project # 4 Sub-project # 5 Sub-project # 6 Sub-project # 7 External Procure to Pay Order to Cash Product Life APS / MES / Lean / Six Innovation / Sustainability Help Desk service Cycle Mngt SCADA Sigma NPD providers Finance Service Human resources Provider # 1 Technical / Quality Control Service Support Provider # 2 Sales & Marketing Teams Engineering / Manufacturing Service Provider # 3 Distribution / Logistics Service Materials Management Provider # 4 26

PMO – Functions, Types, Resourcing, Methods & Control

PMO - Functions Project registration Tools and techniques Training Ongoing education Maintaining the methodology The project handbook Promoting best practice Project Conducting project reviews External seminars definition Check & Project Executive approve Information & Maintain the project intranet Recording lessons learned support Manage projects Assigning project mentors & contracts Certification Administration Cultural Operational 28

PMO Types Centre of Project Office Basic PMO Standard PMO Advanced PMO Excellence Single Tactical vs. No one size. vs. Multiple It depends on.. Strategic PM maturity Vision & goals of sponsor PMO drivers / business needs Business / organisation mission Political & cultural environment Departmental Number of projects Internal vs. Organisation size vs. Enterprise Etc. Etc External Authoritative ~ Advisory 29

PMO – Authoritative ~ Advisory Authoritative Hybrid Advisory • Provides a centralised • Assumes ownership over • Ownership of standards, supporting function to assist execution of business unit processes and performance projects with policies, projects - managing “ the reporting procedures, resourcing program ” • Delivery accountability • Delivery accountability • Central management of remains with the PM and remains with the PMs and Business Unit resources; project staff are business units “loaned out” to business units • Support for training, project • Provides centralised resourcing • Manage external staff training, resourcing & procurement where required procurement support to the • Central coordination of projects / business units communications • Implement standard policies • Supports benefits, and procedures knowledge management • Drives benefits assurance, • Central coordination of knowledge management communications 30

Resource Management – Across PMO Project Office Basic PMO Standard PMO Advanced PMO Centre of • Identifies project • Provides • Introduces Excellence resource needs, guidance for oversight • Manages coordinates utilisation of capability for standards of • Collaborates with project resource essential project project resources performance for HR and business acquisition and resources project resources units to determine assignment • Implements resource • Establishes basic practices for • Develops formal utilisation • Manages project procedures for acquisition of procedures for requirements resource requesting and project resources deployment of performance assigning project project resource • Forecasts resources • Collaborates utilisation of requests and • Conducts project resources • Prepares routine assignments for competency reports project resources assessments for • Identifies needs documenting project resources and recruits project resource • Implements project resources assignment and guidance for • Monitors & utilisation project resources evaluates performance performance of project resources management 31

PMO – Methods & Support Model PMO PMO Support Methods 1.1 Project Mngt Delivery Life Project Consulting / Contracts / Process Cycle Control* Mentoring Procurement Process Life Cycle Schedule Startup SOW Definition Definition Assistance Assistance Assistance Initiation COTS / Open Time Tracking JIT RFP Source` Assistance Assistance Planning Design Code Library Risk Bid Evaluate Test Maintain Management Assistance Executing Waterfall Communi- Contract Project cation Recovery Tracking Controlling RAD / Agile Project Procurement Management Visibility Consulting Closing Spiral QA / * See Next Slide Governance 32

PMO – Support & Control Model Support PMO Control • Master Project Schedule • Project Audits • Issue Tracking/Reporting • Business Case • PM tools and tools support • Project Approval • Integrated Project Reporting • Project Prioritisation • Project Document Repository • Project Management • Project administrative support • Contract Management • Project Consulting and mentoring • Resource Management • PM coaching / training / certification • Cost and Schedule Control • PM standards, methodology, processes • Project Portfolio Management 33

PMO – Implementation Framework

PMO – Continuous Improvement  Phased approach Review Slide (PMO Life Cycle – Critical Success Factors)  Obtain Management Buy-in  Organisation alignment  Define initial steps  Define PMO - “services”  Justify value  Define & measure results  Project Management Standards  Capability Development  Stakeholder Management  Center of Excellence  Continuous Improvement 35

PMO – Phased Implementation Schedule Phase 1 Phase 2 Phase 3 High Level Planning Manage Stakeholder Expectations As ~ Is To ~ Be Knowledge Continuous Assessment Assessment Portal Improvement Method / Tool Capability Development Development PMO Pilot - Implementation Multi-site Rollout 36

PMO – Planning & Assessment

PMO… Where to Start ? Project Admin Project Mngt Program Mngt PM - Centre of Strategic Proj Excellence Office • Proj Reporting • PM standards, • Coordination of • PM recruiting • Project • Proj Costing guidelines, large projects or interviewing selection, • Proj Metrics methodologies programs • Reporting prioritisation & • Proj Comm. • Tools & relationships approval • Proj Portfolio techniques • Coordination process maintenance across multiple • Career planning • Training, projects & development • Project Portfolio • Proj Library mentoring, Management (resources, cost coaching, team • Project structure • PM advocacy vs. budgets, building • PM best • Strategic risks, QA, • Project practices planning & lessons learned, • Facilitation of standards • Proj measures, alignment Artifacts, re- project peer metrics, usable reviews benchmarking • Resource components) • Risk & issue allocation management • Continuous • Project recovery improvement • PM support • Quality services Assurance 38

PMO – High Level Planning Nominate and Review Tools, Communicate Develop PMO Conduct First Confirm PMO Processes & PMO Goals Master Plan PMO Session Team Templates  Identify,  Structure PMO  Review process,  Conduct work-  Confirm logistics nominate and with relevant identify areas for shops with key & communicate obtain approval stakeholders improvement stakeholders timing and for the PMO agenda of first leadership from  Communicate  Define, develop  Prioritise PMO session senior involvement and and distribute - initiatives and management PMO tools, processes conduct high-  Discuss issues, expectations and templates level review of dependencies, any (inter) project plan  Engage & obtain  Define and (re) dependencies & recommendation buy-in on develop - overlaps & role of PMO program project reporting, going forward objectives and risks, issue,  Consolidate approach change and initiative project  Distribute communication plans into a program-related management consolidated process processes master plan information 39

PMO – Initial Assessment Areas Existing Organisation Process Project Culture Management Existence of Maturity Flexibility of the documented organisation processes Value placed on project Adaptability to Effectiveness of management change existing processes Commitment to project Business strategy Consistent adherence management alignment to documented processes Effectiveness / success Clarity of of projects organisational roles Accessibility of and responsibilities documented Existence of a processes standardised project life Attitude towards cycle or methodology projects – expense / Measures in place to investment control projects Level of training 40

Remember…  PMO Charter  Change Management  Implementation Strategy  Staff - Training / Coaching  Metrics / Performance  Critical Success Factors  Project Management Practices - Maturity 41

PMO – Charter Development Scope Memo • Business Needs • Mission / Vision • Sponsor • Goals/Objectives • Type • Sponsor • Maturity • Service Offering • Resourcing • PMO Governance • Functions • Key Performance Metrics • Methods • Funding model • Control • ROI Analysis 42

PMO – Culture / Change Management Firm’s Change Political Culture Management Landscape PM maturity Assess impact of Winners/Losers change PMO charter Management Resistance Support Existing skill level Inform Key driver Educate Implementation Involve strategy 43

PMO – Implementation Strategy Incremental Revolutionary Drivers • Lower start up costs • PMO charter • Higher startup costs • Will take longer to • PM maturity • Implementation risks demonstrate ROI • PMO drivers higher • Implementation risks • PMO Roadmap • May be able to lower • Perception of value demonstrate quicker • More suitable if high • Political environment ROI resistance to change • Culture / Value System • More suitable, if crisis and low management • Sponsor and or recognition at high support management support level that change is imperative 44

PMO – Resourcing Approach Skills • In-house resources • Project Manager • Hybrid (In- house / • Project Portfolio Manager contractors) • PMO Director / Manager • Ad hoc contractors • Administrative Support augmentation • PM Process / Methodology Trainer • Relationship / Account Manager • Tools Support / Administration • Librarian / Document Control 45

PMO – Performance Metrics Internal focus - Measure and demonstrate Executive focus - Measure and performance or quality of PMO functions Fu demonstrate value to business nc PMO budget & improvement PMO e tio performance al u Justify existence na sV Baseline or benchmark performance lP Expressed primarily in dollars es er savings / revenue or ROI sin Expressed ( percent or counts ) fo depending on functions performed rm Bu PMO vs. Project Metrics an ce Service Level Customer focus - Measure and demonstrate service level or quality of service to customer Service Level / Operational Level Agreements Select the most important value to stakeholder community 46

PMO – Success Factors Review Slide (PMO Life Cycle – Critical Success Factors) Sponsor Clear reports Charter to Board Top Continuous Bottom Down Improvemen Up Buy- Support t / communi- in cation Manage Training Stake- / Coach holder 47

PMO – Implementation Roadmap

PMO – Implementation Roadmap Organisation- Project Initiation Project Office Project Office Wide Standards and Planning Establishment Infrastructure Development Rollout and Operations Training Transition Stage Project Closure Stage Preparation 49

Initiation & Planning - Deliverables  Charter  Objectives  Project Plan  Project Scope  Project Budget  Business Case  Success Factors  Measures & Metrics  Project Organisation  Project Standards & Control Procedures  Educating Top Management & Project Staff 50

Establishment - Deliverables  Project Office Budget  Project Office Staffing Plan  Project Office Facilities Plan  Project Office Communication Plan  Project Office Documentation Plan  Project Office Organisation Structure 51

Office Infrastructure - Deliverables  Project Office Guidebook  Projects Base-lining Procedures  Project Office Interface Structure  Software and Hardware Procedures  Operational Management Procedures  Standard Projects Justification Criteria  Security and Budget Control Procedures  Communication and Staffing Procedures  Projects Resource Allocation Procedures  Projects Meeting and Reporting Guidelines  Measurement & Exception Management Procedures 52

Org Standards - Deliverables  ISO  CMMi  Project Planning  Requirements Management  Software Quality Assurance  Software Configuration Management  Software Subcontract Management  Software Project Tracking and Oversight 53

Training Rollout - Deliverables  Rollout Approach  Rollout Scope Document • Objectives • Risks and Constraints • Other Initiatives  Rollout Increments  Training Strategy  Change Resistance Strategy 54

Transition - Deliverables  Project Office Support  Project Office Reports Based on Transition Stage Performance  User Feedback & Process Improvements 55

Operations Stage - Deliverables  Process for Projects Assessment & Prioritisation  Ongoing Projects  New Projects  Project Office Reporting on Projects  Cost Analysis  Time Analysis  Performance Analysis  Assessment of Project Office Activities 56

Project Closure – Deliverables  Lessons Learned  Project Closure Meeting  Process Improvement Report  Project Performance Measures  Action Plans for Remaining Open Items  Maintenance Guide for Project Office Activities  Celebration of Success! 57

Note …. PMO PMO is the Develop a evolution is “enabler” sound a journey but senior Business with managemen Case and a manageable t has to be positive ROI phases the “driver” Ensure PMO Train and manager coach Users has prior on PMO PMO process experience Send PMO PMO vision Create staff to the and an Managemen trenches overall t awareness and avoid strategic on PMO “ivory tower” plan approaches syndrome 58

PMO – Lessons Learned

Lessons learned  Celebrate small wins / success  Cater reporting to stakeholder needs  Tell management about the successes  Write a Project Management Handbook  Provide monitoring and advisory services  Create PMO services across the spectrum  Create a Lessons Learned Database / Portal  Standardise – methods, process, tools, techniques, checklists etc 60

Advanced PMO Model for Project Portfolio Management

Advanced PMO Model Traditional Advanced • Process leadership • Thought leadership • Tools as a “map” • Tools as a “compass” • Based on rules • Based on guiding principles • Focus on efficiency • Focus on effectiveness & innovation • Focus mostly on tactical issues • Focus on strategic & cultural issues • Science of project management • Art and craft of project management • Internal process focused • Focus on end products & customers • Emphasis on monitoring & • Emphasis on collaboration control • “Agile” methods and practices • “Heavy” methods and practices • Adaptive and innovative practices • Defined, repeatable, optimised • Balanced management, practices governance and leadership • Heavy management and governance 62

“We are what we repeatedly do. Excellence then, is not an act, but a habit.” - Aristotle 63

Good Luck 64

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