most experienced gold partner (est. 1994)
TRANSCRIPT
Anaheim, CA | February 2-5, 2014
Konstantin PopovIT Program ManagerChevron
Fireside Chat on Best Practices for the PMO as a Service Model Ken Prush
Senior ConsultantPcubed
PC274
Fastest Growing Global Program, Portfolio and Change Management Consultancy
Most Experienced Gold Partner (est. 1994)
Fastest Growing Global PPM Consultancy
+1200 Skilled Consultants
11 NA offices 30 Global Offices
Results with 50% of Fortune 100
+30% Reduced Time-to-Market
+20% Resource Optimization
Managing Business Transformation for50% of Fortune 100
Beyond Technology Solutions • Pragmatic,
holistic Approach
• Fast, Embedded Results
Konstantin Popov• Chevron
• 12+ years’ experience with project management and PMO
• PMP, MCTS, PMI-RMP
• Chevron• One of worlds top 6 super majors, leading integrated
energy company• Engaged in all aspects of Oil, Gas and Geothermal
across 180 countries• 11th ranked in Global Fortune 500 list
Photo
Photo
Ken Prush• Pcubed Consultant
• 6+ years experience in project, portfolio and PMO consulting
• Has led or supported PMO development projects for IT and business in the Energy, Health Care, Insurance, Financial, High Tech, Media, and Manufacturing industries
• Pcubed – Management consultancy focused on program, portfolio and change management• 30+ offices globally• Serving half of the Fortune 100• Solutions that go beyond technology
Two Truths…
Truth #1:
(Plan – Governance) + Time = Variance
We understand this when managing projects, but forget this when managing our project management!
Variance Matters?Even something small – such as the calculation for Estimate at Completion – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.
EAC = BAC / CPI!
EAC = AC + ((BAC-EV) / CPI)!
Truth #2:
America may run on Dunkin’…
…but Project Organizations run on Data
(They both drink a lot of coffee, though!)
Getting good data can be a challenge…Even something small – such as the calculation for Earned Value – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.
I love gathering data and
reporting my project’s status!
Getting good data can be a challenge…Even something small – such as the calculation for Earned Value – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.
…said no Project
Manager, ever.
Source: P3O, Fig 1.2
Organisation Portfolio Office (Permanent)
Hub Portfolio / Programme
Office (Permanent)
Hub Portfolio / Programme
Office (Permanent)
Programme Office for a
specific initiative(Temporary)
Project Office for a specific
initiative(Temporary)
Challenges with Traditional PMOs• The broad range of possible roles for a
PMO is a primary cause of failure
• The lack of a clear purpose contributes to uncertainty over the types and level of skills required by the PMO
• They are often seen as added bureaucracy, and not perceived as adding value
• They are often in matrixed environments with reduced leverage over PMs
• Poorly placed within organization related to functional role
• Often reduced to a reporting role with no additional value or function
Enter the PMO-as-a-Service• Role is more easy to codify; “services for
projects” is the defining mantra
• PMO becomes part of the team, not a layer above it
• Cost is partially (or completely) paid by projects, which can be offset by project savings provided by PMO services
• Project teams invite PMO in, which encourages collaboration and inclusiveness
• Becomes less shackled to organizational set up and location within organization
• Critical aspect is mentality: “We’re not promoting bureaucracy – we’re providing value”
Controller
BU 1
PMO as a
Service
Controller
BU 2
PMPMPMPM
IT/BusinessPartner
Designing a PMO
Understanding the ChallengesGood
methodology model,
inconsistently implemented
Inconsistent metrics for
quality measurement
Competing tools & technology
within different groups
Non-PMs acting as
PMs
Large, siloed
organization
Lack of cross-project
dependency visibility
Geographically dispersed
Lack of resource visibility
“Food Fight” for project
initiation and resourcing
The Approach We TookAt Chevron, we took an initial two-prong approach. Because processes around project management were in place, it was decided that data quality and capacity management would be the top two challenges to address.Project Controllers
Dedicated project schedulers who also provide resource and report management for project managers
Schedule Templates
Project .mpp files provide a framework for task information and project data standardization
Project Pro 2013
A common tool to help align project schedules and resourcing across multiple business units and OpCos
Project Server 2013
A central platform to allow enterprise visibility over project status, cost reporting, and resource capacity
Why Project Server 2013 for Chevron?• Familiar platform – many of Chevron’s
OpCos are already using a version of Project Professional and Project Server
• Schedule, Cost, and Resource Management – Project Server provides flexibility and depth of functionality to enable key PMO service offerings
• Portfolio Analysis – intended as future functionality to improve annual, monthly, and ad-hoc decision making around projects and portfolios
• Scalability – Project Server can work natively across OpCos and portfolios
• Reporting – the BI Center and SSRS offer a variety of ways to capture and report on key project data
Lessons Learned, and LearningDon’t think small We took an early opportunity to re-align our goals with a much larger
audience within Chevron. This not only provided visibility with higher level stakeholders within the organization – it also presented Chevron with an opportunity to align more of its business units around a standard technology model.
Be prepared to be a salesman
A lot of PMs (and business units) can be territorial, and may not want an “outsider” stepping into their domain. The key to winning these groups over is to focus on value – not just in discussion, but in demonstration.
Know when to focus on inclusion, and know when to push ahead
Understanding when to pause for related projects, and when to move forward without them requires not only careful analysis of that project’s impact, but also an understanding of the team involved, and their ability to execute on their work.
Everyone is a stakeholder
When you’re implementing organizational change, it’s critical to remember that everyone – executives, managers, and team members alike – will be impacted by your decisions, so socialize accordingly.
Question #1
What’s a typical approach to defining a PMO? How do I decide which functions my PMO needs?
Functions of a PMO
Portfolio ReportingPortfolio
Analysis
Pipeline Manageme
nt
Portfolio Optimizatio
n
Portfolio Controls Strategic
Driver Prioritizatio
n
Program & Project
Controls
Program & Project
Governance
Benefits Manageme
nt
Capacity Manageme
nt
Resource Manageme
nt
Portfolio Governanc
e
Process Manageme
nt
PM Tool Manageme
nt
Program & Project
Reporting Program &
Project Recovery
Program & Project
Assurance
Comms & Stakeholder Manageme
nt
Project Management Training
Mentoring & Coaching
Project Initiation Support
Risk & Issue
Management
Professional Developme
nt
Administrative Support
This model is presented by the Corporate Executive Board.It uses the parameters of:• Involvement in Project Execution, and• Degree of Authority over Risk
Managementto highlights the four ‘archetypes’ of:• Coach• Auditor• Player• Financial Advisor
The key question it poses for most organisations is the one on ‘involvement’, as a lack of consensus on this point is often a point of failure
Source: Corporate Executive Board
Coach
Financial
Advisor
Auditor
Player
Degree of Authority over Risk Management
Involv
em
en
t in
Pro
ject
Execu
tion
Models: CEB, the Four Archetypes
This model is presented by Cranfield University.It uses the parameters of:• Operational vs Strategic, and• Supply vs Demand
to highlight the following four types of PMO:• the Project Office (PO) – focus on
mainly supply side delivery• the Project Support Office (PSO) –
focus on tactical support• the Enterprise Project Office (EPO)
– supporting strategic demand side and supporting governance etc.
• the Project Management Office (PMO) – demand side focus
Models: Cranfield, PMO ServicesPortfolio Mgmt Focus
Investment decisions and prioritisation
Maximise value from resource allocation
Inter-project communication
Resource Mgmt Focus
Competency and capability development
Effective deployment of resources
Project Benefit Focus
Conduct reviews and health checks
Report on value being delivered
Increase benefits actually realised
Product Delivery Focus
Improve supply processes
Monitor and report progress
Manage risk of delivery failure
Supply Demand
Op
era
tion
al
Str
ate
gic
This Pcubed model was developed using the parameters of Influence and Capability and highlights the four key roles that a PMO can play:• Enabler – acts in an administrative
role • Guardian – an office that makes sure
everybody is doing things correctly• Coach – communicates upward to
keep stakeholders informed on program status
• Partner – can design processes and put in place and influence strategy
This model is often used to show how the maturity of the PMO can move through the roles.
Models: Pcubed, Capacity and Influence Partner
Services: Proactive Executive Support;; Disciplined Delivery & Assurance
Benefits: Delivery Accelerator, Confidence in Success
Guardian
Services: Program & Project Assurance, Audits, Gateway Management, Tracking & Reporting
Benefits: Management by Facts, Early Warning
Coach
Services: Capability Planning & Building, Training, Coaching & Mentoring
Benefits: Increased Capability, Skills Transfer, Embedded Best Practice.
Enabler
Services: Best Practice Processes & Tools Repository, Information Hub, Project Administration
Benefits: One Stop Shop for Methodology & Data
Capability
Infl
uen
ce
This model represents the output of client through the development process using the previous frameworks, as well as a discovery and workshop process with key stakeholders.The client required a simple and distinctive model that showed the:• breadth (strategic and operational)
and• depth (project and portfolio)
of the services that they intended to provide.The quadrants highlight the beginnings of the ‘Service Catalogue’ and provided the basis for the PMO organisation’s structure
Models: Sample Client Analysis
Develop, Champion, and Monitor Standards
Develop competency standards and lead staff development
Ensure the portfolio is aligned to and supports the delivery of the corporate strategy
Appraise project (comparison)
Manage inter-dependencies between projects
Manage portfolio level risk
Manage portfolio Change Control
Appraise project (in isolation)
Manage Gateways
Lead project re-appraisals
Operational Strategic
Pro
ject
Port
folio
Targeted PMO Service Offerings
Portfolio Reporting
Portfolio Analysis
Pipeline Manageme
nt
Portfolio Optimizatio
n
Portfolio Controls Strategic
Driver Prioritizatio
n
Program & Project
Controls
Program & Project
Governance
Benefits Manageme
nt
Capacity Manageme
nt
Resource Manageme
nt
Portfolio Governanc
e
Process Manageme
nt
PM Tool Manageme
nt
Program & Project
Reporting Program &
Project Recovery
Program & Project
Assurance
Comms & Stakeholder Manageme
nt
Project Management Training
Mentoring & Coaching
Project Initiation Support
Risk & Issue
Management
Professional Developme
nt
Administrative Support
Questions
SummaryThe PMO-as-a-Service model offers organizations a value-driven approach to governance, schedule, and data management
The challenge is in trying not to do too much; focus on key value areas to best align your PMO team’s skills with their intended role
Technology is as important as good processes and good team members, so ensure all three are in place and aligned to support your PMO’s mandate
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