IMPLEMENTING

A Project Management Office

1st October, 2013

Alex Pavlenko

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I. Why a Program /Project Management Office (PMO)?

II. What is a PMO?

III. PMO Roles & Responsibilities

IV. Starting a PMO

V. PMO Services

VI. Executive Buy-In

Agenda

I. Why a Program /Project Management Office (PMO)?

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• Advise funding the right projects

• Maximize resource utilization• Strong Governance • Project Initiation

• Project planning and leadership

• Capture metrics• Report status • Issues resolution• Risk management

• Alignment with business• Increase effectiveness

• Optimized project portfolio• Visibility across all work• Alignment with business

Strategy

Business Area Management

Program/Project Mangement

IT Stakeholders

Project Portfolio Management

Why a Program/Project Management Office?

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The Project Management Office (PMO) A PMO is a centralized organization dedicated to improving the practice and results of project

management

Some PMO initiatives are minimal, involving part-time staff

Other initiatives involve huge infrastructure, with rigid centralized planning, control and methodology

An organizational entity created to assist PROJECT MANAGERS in achieving project goals

A PMO is a group of people with a mission to support project managers in the successful launch, implementation, and completion of projects

Provides an opportunity for project managers to develop professionally more quickly than, if they were working isolated from one another

II. What is a PMO?

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What Is a PMO?

Most often a PMO means project management office; But for some it means program management

office

“An organizational unit to centralize and coordinate the management of projects under its domain. A PMO oversees the management

of projects, programs or a combination of both.” A guide to the PMBOK guide

The definition of a PMO may vary in name by function, but it essentially cenralizes, cordinates and oversees

the management of project and programs

The Project Management Office (PMO) is the department or group that defines and

maintains the standards and processes related to project management within an organization

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The Goals of a PMO

• Manage all projects utilizing Best Practices, a critical factor in achieving higher project completion rates.

• Manage Strategic Change – coherent groups of projects, small enough to succeed, but coordinated to achieve strategic goals.

• Rank and select important tactical improvement projects through Project Portfolio Management, to ensure you don’t over-commit resources, and instead focuses efforts on projects with the highest impact for the cost

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What is a PMO: Essential Culture Components

Enterprise Portfolio

Individual Projects

Organization Environment

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Relationships of Portfolio, Programs, Projects Portfolio

PortfolioProjects

Projects

Programs

Programs

Projects Projects

Projects

Other Work

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Work Efforts in the Project Management Environment

Project•A temporary endeavor undertaken to create a unique product, service or result.Program•A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.Portfolio•A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives.

Definitions are taken from PMBOK

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The Project Management Environment

Internal

External

Project Environment

EXECUTIVE CONTROL BOARDS

BUSINESS UNITS

TECHNICAL STEERING COMMITEES

BUSINESS ENVIRONMENT

PMO

PROJECT MANAGER

PROJECT EXECUTIVEProject Sponsor

Project Team(Technical Staff)

PMOSupport Staff

CUSTOMER

Business Managers & Support Staff

Technical Managers & Support Staff

Customer Business Managers & Support Staff

Customer Project Managers & Teams

VENDORS, SUPPLIERS & CONTRACTORS

REGULATORY & GOVERNMENT AGENCIES

III. PMO Roles and Responsibilities

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PMO Roles and Responsibilities

• PMO Executive• Project Portfolio Manager• Project Management Mentor• Project Management Tool Mentor• Resource Portfolio Manager• Methodology Specialist• Project Management Trainer

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PMO Responsibilities

• Providing qualified project managers • Providing project management consulting • Providing project management mentoring • Creating and maintaining project management processes• Providing project management tools and support• Conducting project orientation and culture training • Providing project planning and tracking support• Creating and maintaining project command centers • Supporting project meetings • Facilitating project meetings• Preparing project status reports • Performing project reviews• Performing post project reviews and follow-ups• Providing contract proposal support• Sponsoring project management education• Archiving/retrieving project records

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What Benefits Does a PMO Offer?

PMO can… If a PMO is not used…

Make available qualified project managers With several projects under way, project managers are probably not learning from one another

Provide support personnel to assist project managers

PM’s are probably not sharing best practices

Allow project managers to pool their skills and knowledge

PM’s are not challenged to continuously improve their skills

Help project managers to develop professionally

PM’s can be overtly influenced by line managers

Recommended for organizations with many PMs

PMs scattered across an organization lack common bond for consistent application of best practices

Provide consulting-type services and products

The most important service of a PMO is to provide qualified project managers to an organization…

IV. Starting a PMO

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Starting a PMO (Executive Summary) Many companies are finding that they must build project management capability if they are going to meet the business challenges in the future. The also understand that project management processes should be implemented consistently across the organization. This leads to efficiency and help deliver projects even better, faster and cheaper. Given the need for consistent project management, the next question is how best to implement this common project management environment. Many companies give this responsibility to one or more people in a Project Management Office (PMO). There are many structures for a PMO and many types of services that the PMO can offer. Each organization must first determine the services that are important to them and then create an overall approach to implementing. Since this is a culture change initiative, the effort can be time-consuming and difficult. However, the rewards are also large. If the PMO is established with a clear vision, strong sponsorship and a solid approach, it can be a vehicle for creating a tremendous amount of value for the company

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Starting a PMO

• Executives must deliver in two key areas – ongoing operational results and improvement efforts.

• Functional managers are continuously evaluated by senior management, peers, and subordinates for their ability to complete projects.

• Many projects involve multiple departments and functional areas.• Each organizational unit has its own language, its own standards, its own project

management techniques.

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The Project Office

Benefits Benefits

A strategic planning focal point for the project management process

Centralized lessons learned files on completed projects

An organization dedicated to continuous improvement

A “hot line” for problems without involvement senior management

An organization dedicated to benchmarking for project management

An organization for sharing ideas and experiences

Organizational mentorship for inexperienced project managers

An organization for creating project management standards

Centralized project planning and scheduling Centralized cost control and reporting

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There are 3 basic types of Project Management Office (PMO) organizations, varying in the degree of control and influence they have on projects within the organization. You will need to determine which type you need to establish in order to have an effective project office.

PMO types ?!

1. Supportive PMOThe Supportive PMO generally provides support in the form of on-demand expertise, templates, best practices, access to information and expertise on other projects, and the like. This can work in an organization where projects are done successfully in a loosely controlled manner and where additional control is deemed unnecessary. Also, if the objective is to have a sort of "clearing-house" of project management information across the enterprise to be used freely by project managers, then the Supportive PMO is the right type.

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PMO types ?!

2. Controlling PMOIn organizations where there is a desire to "rein in" the activities, processes, procedures, documentation, and more - a controlling PMO can accomplish that. Not only does the organization provide support, but it also requires that the support be used. Requirements might include adoption of specific methodologies, templates, forms, conformance to governance, and application of other PMO controlled sets of rules. In addition, project offices might need to pass regular reviews by the controlling PMO, and this may represent a risk factor on the project. This works if a) there is a clear case that compliance with project management organization offerings will bring improvements in the organization and how it executes on projects, and b) the PMO has sufficient executive support to stand behind the controls the PMO puts in place.

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PMO types ?!

3. Directive PMOThis type goes beyond control and actually "takes over" the projects by providing the project management experience and resources to manage the project. As organizations undertake projects, professional project managers from the PMO are assigned to the projects. This injects a great deal of professionalism into the projects, and, since each of the project managers originates and reports back to the directive PMO, it guarantees a high level of consistency of practice across all projects. This is effective in larger organizations that often matrix out support in various areas, and where this setup would fit the culture.

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PMO types ?!

The best type is very specific to the organization, culture, and history of what works and what does not. But the objectives are - more or less - to:•Implement a common methodology•Standardize terminology•Introduce effective repeatable project management processes•Provide common supporting tools•Ultimately, the objective is to improve levels of project success within the organization

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Starting a PMO PMO Sustainability Requirements:•The PMO must be aligned with the interests and goals of the organization •The PMO value must be measurable•Projects get better when they are measured•PM must be able to control and manage project outcomes.

The PMO should focus on portfolio management of:•Project investments•Resources•Assets•Strategic objectives

A PMO has responsibility for educating the organization it serves about the benefits it brings to projects A PMO must create and track metrics to show the results of its contributionsA PMO should survey its customers routinely to verify it is adding value

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Elements of An Effective PMO

The right people •Include people from the supply side and market side of the organization.•A PMO requires skills in marketing and communications.•The PMO should cover multiple disciplines.The Right Tools •PMOs may purchase Enterprise Project Management (EPM) tools•With Low project management maturity, sophisticated tools meet heavy resistance.•PMOs without a marketing plan to gain strong buy-in on tool usage are doomed.The Right Data•To improve, project delivery must be measurable.•This process is often accomplished with project status report.•The PMO must diagnose system problems to help solve them.

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PMO Services Overview

• As a PMO begins to define its objectives, it needs to consider what services it will provide to meet those objectives.

• No one solution fits all needs• It must also assess when in its implementation schedule it will provide

theses services.• The services that are required dictate the various roles and

responsibilities.• Each service provided require support staff.

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PMO Implementation Prerequisite Work

Business Needs Determination

Organization Culture

Evaluation

Stakeholder Analysis

PreliminaryPMO

Charter

Current Practises

Assessment

PMO Resource

Requrements

PMOStructure and Alignement

Determine PMOFunctionality

Plan PMOImplementation

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Implementing a PMO: Basic Stages

Assessment

Definition

Commitment

Initiation

Planning

Execution/Control

Transition /Shutdown

Assess current business culture: PMO Maturity Assessment, Current Projects Assessment, ROI and COST Model Assessment

Define Program/Project Management Office(PMO): PMO Charter and Scope Statement

Gain Executive Commitment to Build and Maintain PMO

Initiate PMO Project: Governance Process, Business Case Development Sign-off

Plan PMO Project: PMO Manual, PMO Project Plan Sign-off

Build and Implement the PMO: Initiate Training, Support, PMO Processes

Hand-over to Client, Close Project: Transition Plan, Project Review

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Implementing a PMO: Key Checkpoints

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Implementing a PMO: A Typical Lifecycle

PMO Maturity

Model

Program InitiationWorkshop

PMOStrategy (Charter)

ProjectAssessment

Project PlanningWorkshop

Program Management

Planning

Cost Planning

AdministrationControls Planning

Planning

CommunicationsPlanning

GovernanceProcess

Plan Execution

Cost Management Tracking

Monitoring & Controling

Performance Reporting & Information Distribution

Execution

Administration of PMO

Team Development/Mentoring

PMO Turn Over

PMO Deliverables

TransitionAssessment/Initiation

2 Months 3 Months 6 Months 1 Month

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Implementing a PMO: Resource Consideration

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Jump Start PMO Implementation

Identify the portfolio of projects – seeing the volume of work gets senior leader attention

Begin monthly senior leader governance meetings immediately, refining the process as you go•Operating units need to see someone in charge, to whom theymust sell new project requests•PM’s need to see someone make prioritization decisions

PMO Champion (CEO/COO) directs that:•Projects follow the same methodology (workshops, templates)•PM’s report weekly and brief to a designed senior leader monthly

PMO Services

V. PMO Services

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PMO ServicesPortfolio Management•Project portfolio information•Asset strategic objectives and resource portfolios•Executive reporting and governance•Prioritization techniques•Scheduling of projects •Analysis of projects Consulting and PMO Services•Project rescues •Project assessments•Processes, tools and methodologies•Mentoring•Web portal information & knowledge sharingTraining•Methods•Tools•PM processes•Certification•Advanced courses

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PMO ServicesVendor Management•Vendor tracking selection•RFW/RFPs•Contracting•Performance Tracking

Project Archives•Information repository•Project Library•Knowledge Management•Lessons Learned•Closed projects

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Governance. Project Initiation Process

Use one project request from form for all

projects• Only

authorized individuals can submit project requests

• All project requests go directly to PMo

PMO evaluates requests

Steering Committee approves/

disapproves requests

Develop detailed cost

&schedule estimates for

approved projects

Steering Committee

reviews estimates and

approves/disapproves funding of

pursuit of funds

Project execution

begins

Enterprise architecture & project ranking tools

Authorizes detailed planning of the requests

No finding approval at this point

Normal budget &

finacial processes

allocate funds

PMO reports status to Steering

Committeemonthly

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People in the Project Management Office

VI. Executive Buy-in

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Executive Buy-in of The PMO

Executives will embrace a PMO that dramatically increases the probability of meeting goals. A PMO must deliver on its promise through four major processes:

1.Choosing the right project mix – a new way of strategic planning2.Linking the executive team’s strategies – to current and planned projects3.Managing the project portfolio correctly – high value projects over nice to have4.Measuring the PMO – to tangibly improve project performance

A PMO must be able to help executives with execution of strategy, as determined by the project mix and flow, or the PMO will not achieve sufficient level of value to sustain itself.

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Executive Embrace a PMO If…

Characteristics of a PMO that will be supported by executives:•It must drive more projects through completion, without correspondingly increasing resources•Projects must be completed in drastically shorter times•The impact of the PMO is clearly felt on both the top and bottom lines of the organization •Executives and managers throughout the organization fell that they are getting benefit out of the PMO