Project Management Office (PMO) Observations 2004

Vision – Mission - Realization

International Association of Project and Program Management

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

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

Real Value Role of IT Perceived ValueCost of IT operations IT is supporting the business Efficiency

Contribution to business goal IT is a value added partner Ability to enable business change

Market value of IT IT is a strategic partner Ability to drive business change

*Table courtesy of the META Group

4

Achieved through Value Mgmt

Definition Definition Conception Conception Deployment Deployment Improvement Improvement Retirement Retirement

TransformationTransformation

ValueCreation

ValueRealization

ValueSustenance

Value Management

ValueProposition

Management Life cycle

Management Life cycle

5

PMO – Value Realization

Definition Definition Conception Conception Deployment Deployment Improvement Improvement Retirement Retirement

ValueCreation

ValueRealization

ValueSustenance

Value Management

ValueProposition

Providing the “Motion” to turn “Vision” into “Reality”

Management Life cycle

Management Life cycle

TransformationTransformation

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

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

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

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”

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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

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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

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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

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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

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PMO Roadmap

Q2, 2004 Q3, 2004 Q4, 2004 Q1, 2005

Phase 1Projects Under Control

Phase 2Project Value Proposition

Phase 3Portfolio Management

Phase 4Project 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.

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Organization (Short)

PMODirector

ProjectManagers

ConsultantsManaging projects

Project AdminGeneral AdminFinance Admin

Short-term (6 - 12 months)

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Organization (Medium)

PMO

ProjectManagers

ConsultantsManaging projects

Project AdminGeneral AdminFinance Admin

Medium-term (1 – 2 years)

EP PM Champ

ToolsPM Champ

MetricsPM Champ

“Work along side”

BenchmarkPM Champ

PM Champion • EP = Enterprise Projects/Programs• Works alongside with project

managers and consultants to train, coach, support them.

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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

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Partnering with PMOTo Leverage Strengths

Customer Oriented More visibility with Customer

Strong Commitment Enhance skills development

To Fortify Performance

Rubber band Mgmt PM Methodology, Processes, & Tools

Change Mgmt

“Favor” Mgmt Teaming & Accountability

Base Biz vs Projects Value & Portfolio Management

To Turn into Positive Energy

“My Hands are tied” Being Integrator, Facilitator, Accountability Expert

“Non-delivery Get away” Metrics

“Weak leadership unity” Make connections and alignment

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PMO Metric

Opportunities

Baseline project commitment and Institute Project change control.

Definition: Number of projects with Green schedule statusTotal number of projects

Project Management OfficeMeasure: Meet Project Schedule Project Management Office

Measure: Meet Project Schedule Monthly

75% to 85%

Above 85%

Below 75%

Vision –Motion –Realization

Meet Project Schedule

0%

20%

40%

60%

80%

100%

Jun Jul Aug Sep Oct Nov Dec

2003

26%21%

47%

69% 68%

81%

Action Plan

1. Present all projects to PMOManagement Team for approval of all projects in the portfolio

2. Bring in other projects into PMO

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Value Realization

Initiative What did we do Original CostNew Cost Value Start date 2003 Impact 2004 Impact

Network Center upgrade Negotiation $3,000 $2,500Cost Reduction 1-Nov-04 ($1,000) ($6,000)

Network Backbone Negotiation $152,000 $112,000Cost Reduction,End-to-end management

1-Oct-04 ($10,000) ($40,000)

Circuit Provisioning RFP $1,331,028 $1,065,012Cost Reduction,Increased bandwidth

1-Nov-04 ($61,550) ($266,016)

Project ABC) RFP $290,000 $150,000Cost Reduction,Improved vendor management

1-Nov-04 ($25,000) ($140,000)

Project BCD Build End node $98,544 $74,808Cost Reduction,Increased bandwidth

1-Sep-04 ($386) ($23,736)

Project CDE Introduced new ISP $91,750 $53,600Cost 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)

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PMO Maturity level*

*Based on META Group Project Management Office Capability Maturity Model

5

Incorporated

Value Management

Business Continuity Planning

Procurement Management, Contract Management

PM Center for Excellence

4

Managed

Program Process Management

Project Integration Management

Customer Relationship Management

Career Path

3

Defined

PM Methodology

Change Management

Risk/Issue Management

PM Training

2

Stable

Planning

Tracking

Schedule Management

Progress Reporting

1

InitialAcquisition of Project Managers

You are

here

You are

here

20042004

20052005

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PMO Value

PMO strives to be a full-service provider

Project SupportTools

Administrative work

Project SupportTools

Administrative work

Consulting &MentoringEffectiveness

Consulting &MentoringEffectiveness

Methods &Standards

Efficiency

Methods &Standards

EfficiencyTraining

Core Competency

TrainingCore Competency Project Managers

Flawless Execution

Project ManagersFlawless Execution

PMOPMO

PMO MindsetPMO 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

www.iappm.org

Advancing Project and Program Management

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