organization structures for effective project management...
TRANSCRIPT
ORGANIZATION STRUCTURES FOR EFFECTIVE PROJECT MANAGEMENT
SUPPORT
GEORGE MERGUERIAN
SENIOR PARTNER – GBMC [email protected]
WWW.BMC-GLOBAL.COM
George Merguerian
Senior Partner at Global Business Management Consultants – www.BMC-Global.com Experience developed in leading edge companies: Engineering: Construction, Engine Manufacturing, Oil Services, Executive Development, Information Technology and Consulting sectors. Consulting Experience: Project Programme and Portfolio Management, Strategy Execution, Quality Management, IT/IS Technologies applied in …...
Private sector: Ashland-Solenis, Atos Origin, Coca Cola, DSM, GSK, Goodyear, LJA Engineering, Momentive, MSF, Omron, Pliva-Teva, Schlumberger, Solar Turbines, SMIT, UCB, Valtech, … Public Sector: European Commission, European parliament, NATO Agencies and NGOs: Fusion for Energy, European Defence Agency, EMCDDA, IDF, JRC, Médecins sand Frontières, OHIM …..
Education: Engineering degree and an MBA (IMD) Certified Project Management Professional (PMP®), a member of the Project Management Institute and the Society of European Engineers and Industrialists (SEII). Faculty member for project management programmes at the Rotterdam School of Management, the International Management Institute in Ukraine, Management Centre Europe in Brussels.
Established in 1987 GBMC is a leading provider of project management services globally – coaching, consulting, direct project support, project resourcing, maturity assessments, methodology development and implementation and training.
GBMC Services
Diagnosis & Assessment
Professional Development
Coaching, Facilitation & Management
Methodology & Tools
Competency & Career
Development
Technology &
Automation
PMO Office Development &
Consultancy
Session Objectives
Conclusions
Identify Best Practices for Project Management Offices
Illustrate the role of senior management for successful project management
Discuss Best Practices for Effective Project Management
Example of challenges of Project Teams – distilled from 100 inputs from 3 organisations in 2014
Challenge
Senior Managers do not understand Project Methodology Lack of knowledge of project team members to perform their tasks Lack of senior management support Lack of resources for project Lack of clarity of roles Risk Management is not done Cross project risks are not analysed No risk culture Too many priorities Too many deadlines Lack of management involvement Reactive Vs Proactive Weak interdepartmental communications No link of project to strategy KPIs that cannot be measured Frequent scope changes .. ..
Impact of Project Sponsor Training on a Project’s success
Source: BCG and PMI survey of 897 project managers and 232
executives - 2014
Project Definition and Impact on Organization
Ongoing operations will be impacted by the project
Temporary - resources must be allocated for the duration of the project
Degree of Uniqueness
introduces risks
Structures must be in place to support
effective decision-making
A project "is a temporary organization setup to create a unique product or service within certain constraints such as time, cost, and quality.
The Portfolio Of Projects and Programs Deliver the Strategic Goals
Organisational Resources
Strategic Goals
Vision
Mission
Operations & PPP
Effective Organisational Processes
Governance and competences are required to realize a project’s benefits
Required elements for PM success
Principles and
Methods
Organisation Support
Effective Teams
Successful Projects
Project Manager •Develops and Executes the Project Plans with the Project Team •Directs and Leads the Project Team
Project Owner •Makes the Business Case •Approves the Project Charter •Approves changes •Manages the benefits
Senior Management • Decide on projects and programmes • Monitor projects/programmes • Manage strategy and strategic change
Functional Managers •Provide resources •Coach resources
Broad Project Roles and Responsibilities
Principles and Methods - A Project Management Methodology Source: Adapted from PM²@EC
Project
Charter
Project Plan Project
Deliverables
Project
Drivers
Phase
Inputs
Phase
Outputs
Project
Sponsor initiates
Project
Manager (PM) plans
Project
Core Team (PCT) executes
Project
Stakeholders evaluate
Project
Phases
Business Case
Initiating Define Scope
Assign PM
Planning Elaborate Scope
Assign PCT
Executing Manage Scope
Coordinate
Closing Capture Lessons
Accept Project
RfP Phase Gates
Approvals RfE RfC
Monitor & Control
Project
Charter Project Plan Project
Deliverables Project-End
Report
Effective Project Teams
Mutually Accountable
Interpersonal and Leadership Skills
Technical skills for the project
Gartner PM Maturity Model (modified)
Level 0: Non-existent – ad hoc
Level 1: Initial – reactive
Level 2: Developing – emerging discipline
Level 3: Defined – initial integration
Level 4: Managed – increasing efficiency
Level 5: Optimized -enterprise – orientation
People
Staff assigned to projects on a first-available basis. PM activity based on interests of individual managers.
Priority projects get appropriate staffing – everything else is “first available”.
PMO(s) established. Project resource capacity issues begin to be addressed.
PM leader role formalised. Shared-resource pools formalized.
Network of PM leaders exist. Capacity planning enabled.
PM leaders exist. Accepted specialisation (programme, portfolio) supports maximum performance.
PM Processes
Projects are assigned to line or staff managers. No formal PM process beyond high-level budgeting.
All internal processes centred on management of critical projects.
Project processes in place. Risks reviewed.
PM function established. PMO(s) organised.
Projects are approved on a portfolio basis.
Portfolio is actively managed and maintained. in real-time
Level 0: Non-existent – ad hoc
Level 1: Initial – reactive
Level 2: Developing – emerging discipline
Level 3: Defined – initial integration
Level 4: Managed – increasing efficiency
Level 5: Optimized -enterprise – orientation
Technology
Intermittent use of project schedulers, spread sheets.
Project scheduling tools and milestone reporting adopted.
Project collaboration and team workspaces supported.
Portfolio tool is in place. Reporting dashboards.
Workflow added to toolset. Business users adopt tools as useful.
Single, integrated system supports reporting, collaboration and analysis.
Financial Management
Projects done without formal cost, benefit or risk valuation.
Projects have budgetary estimates. Actual cost can be estimated. Some benefit statements
Project cost and labour hours captured. Estimate of benefit made for each project.
Costs are captured and forecast. Benefits are identified and related to strategy in the portfolio.
The portfolio is modelled and appropriately optimized, factoring in risk. Benefit realisation is tracked
Programmes have their own financial resources and full life cycle costing is available.
Gartner PM Maturity Model (cont’d)
Project Management Maturity - Organizational Support Sub System
3.13.1
3.3
3.5
3.2
2.32.3
3.6
2.5
2.7
3.2
2.9
Senior management awareness & Support
Projects Review Committee
Project Plans demanded
Project Manager / Line relationship
Projects Prioritized
Project Management Development Forums
Spirit of Co-operation
Project Management System Development
Project Management Center of Excellence
Project Management performance evaluation
Project Management System Auditing
Process
Integrated Project Teams
Variance
Variance Target (3.5)
Maturity
Example of Maturity Assessment (GBMC model)
Project Management Maturity - Methods Sub System
2.6
2.3 2.6
2.6
2.5
2.7
3.12.6
2.92.7
2.32.6
3.0
2.9
2.7
2.9
3.0
Objectives
WBS
Project Organization
Scheduling & Resourcing
Baseline (Budget)
Interfaces
Project Plan
Closure & Post Activity
Risk PlanningRisk Assessment
Risk Response
Risk Control
Control Process & Behaviors
Control Infrastructure
Control Techniques
Reporting Process & Behaviors
Reporting Infrastructure
Variance
Variance Target (3.5)
Maturity
Example of Maturity Assessment (GBMC model)
Assessing Organizational Competences
ENHANCED PERFORMANCE
Snr. Mgmt. Coaching of
Pmgrs
Prioritized Projects
Project / Line Mgr. Relationships
Project Planning Process
PEP’s Demanded
Line Mgr. Support
Measured
Resource Planning
Project Performance
Measured
PM Training
PM Practice Audited
Percentage of the time you agree that these are done
100-90% 89-75% 74-50% 49-25% 24-0%
1. A management group formally exists which meets to review the performance of projects with Project Managers to assist them in removing obstacles that impede their progress.
1. Snr. Mgmt. Coaching of Pmgrs
2. Prioritized Projects
3. Project / Line Mgr. Relationships
4. Project Planning Process
5. PEP’s Demanded
6. Line Mgr. Support Measured
7. Resource Planning
8. Project Performance Measured
9. PM Training
10. PM Practice Audited
Assessment
2. Project priorities are established, reestablished as necessary and clearly communicated to the project teams and appropriate managers. 3. The project managers meet regularly with their respective line managers to review progress, problems and corrective actions.
4. Project planning and control processes exist, are documented, understood, and practiced across the organization. 5. A Project Execution Plan is required before a project is permitted to begin.
6. Line managers are evaluated on the degree to which they support the performance of cross functional project teams as well as projects in their own areas.
1. Snr. Mgmt. Coaching of Pmgrs
2. Prioritized Projects
3. Project / Line Mgr. Relationships
4. Project Planning Process
5. PEP’s Demanded
6. Line Mgr. Support Measured
7. Resource Planning
8. Project Performance Measured
9. PM Training
10. PM Practice Audited
Percentage of the time you agree that these are done
100-90% 89-75% 74-50% 49-25% 24-0%
Assessment
7. Resource plans and commitments are maintained by the line organization and an appropriate mechanism exists for sharing and resolving resource problems.
8. Contribution and performance in support of project teams is formally recognized in performance reviews.
9. Project team members are adequately trained in project management techniques and methods.
10. Management reviews, audits and evaluations of the project management system are conducted regularly and actions are taken to improve it.
• Project Plans that have resource requirements over time
• Process that updates data on a regular basis
• Regular forum that takes responsibility for addressing short, medium and long term resourcing issues
Typical components and data required to manage resource and capacity
Enterprise Wide Resource and Capacity Planning
Typical Functional Capacity Plan
Department %
Projects
%
Functional
Resource
available
for projects
Hrs per
day
Hrs per
week
Hrs per
year
IT - Architect. 85% 15% 3 18 89 4284
IT- Programming 70% 30% 11 54 270 12936
IT-Testing 50% 50% 11 39 193 9240
IT User Services 10% 90% 8 6 28 1344
Corporate - Anne 80% 20% 1 6 28 1344
Corporate - Bill 40% 60% 1 3 14 672
Corporate - Legal 30% 70% 4 8 42 2016
Corporate - Finance 25% 75% 8 14 70 3360
Marketing 20% 80% 4 6 28 1344
Marketing Comms 20% 80% 2 3 14 672
Operations 0% 100% 13 0 0 0
Total 37212
Enterprise Wide Resource and Capacity Planning
0
20
40
60
80
100
120
02-Jul 09-Jul 16-Jul 23-Jul 30-Jul 06-Aug 13-Aug 20-Aug 27-Aug
Mdys
UAT Demand UAT Availability HDQ Demand HDQ Availability Total Demand Total Availability
ASC Ph2 - NAU-EOT *
ASC Ph2 - Pt shipm't flt list *
ASC Ph2 - AWB in use * ASC Ph2 - Pt 1 shed manifest *
ASC Ph2 - Pt 1a shed manifest *
ASC Network - NFM *
ASC Network changes 'J' package *
ASC Ph2 - Planned support/maint. *
35
Survey Results of What PMO’s Do
Firefighting and Keeping the
Lights on 20%
Running Strategic
Projects Most of the time
26% A good balance of firefighting and executive
strategic projects
23%
Supporting company growth
and competitiveness
20%
Supporting the launch of new
products 11%
Source: Gartner and CA Survey, 2009
Three Levels of a PMO
Level 3
Strategic PMO
IT PMO
EnterprisePMO
CEO
IT Operations Finiance
PMO
Systems SupportDevelopment
Project Level 1Project PMO
Level 2
Business Unit
PMO
PO
PMO Structure
PMO role from a High Maturity Industrial Organisation
• PLC Definition
• Gates Pass Process
• Select
• Implement
• Support
• Maturity Assess.
• Alignment to strategy
• Train
• Coach
• HR Plan
• Data & Knowledge Capture
• Knowledge diffusion
Knowledge Management
PM Competency
PLC Governance PM Tools
Typical PMO Roles that vary with Maturity
A. The Weather Station (Project Office)
(Traces and reports events without effecting them) Progress against schedule milestones and deliverables, Budget performance, Quality performance against requirements, Risk.
C. The Resource Pool (Enterprise Portfolio Management Office)
(Provides a pool of skilled, supervised project managers to be assigned to projects) Develops, coaches, supervises and maintains a pool of project managers; assigns project managers to projects; accepts overall quality, schedule and budget performance responsibility for projects
B. The Control Tower (Program Management Office)
(Nurtures project management as a business process within the company) Establishes, enforces, improves and maintains and consults on management standards, e.g. life cycle management, planning and control, risk management, portfolio management support.
PMO Roles
- C
olla
tes, m
onitors
, re
ports
pro
gre
ss
and a
dm
inis
tration
- P
roje
ct P
rioritiza
tion
- P
roje
ct C
lassi
fica
tion
- P
ortfo
lio C
ontr
ol
- P
rogra
m M
anagem
ent
- S
ets
Pro
cedure
s a
nd
Meth
ods
- A
udits
the U
se o
f M
eth
ods
and P
ract
ice
- P
rovi
des
PM
Coaches
- S
ets
the P
M B
aselin
e/M
atu
rity
- D
efin
es P
M C
om
pete
ncie
s
and C
are
er
Path
- R
ecr
uits
PM
sta
ff &
manages
succ
essi
on p
lannin
g
- K
now
ledge E
xpert
- O
wns the P
M C
om
pete
nce &
Deve
lops the P
M 'V
isio
n'
Y
Resource
Pool S Y Y Y N Y Y Y Y Y Y Y
Control
Tower S S S N Y S Y S N N S Y
Weather
Station Y N N N N S N N N N N Y N
S
Y
Control Tower Example PMO Monitors KPIs of the Programs
Program: c
Program: IT 4G
Program: A
Program: X
Strategic Goal X
PMO Role Example - Project Gate Management
Governance during Start
Up - Screening &
Prioritization
Governance during
Implementation – Progress
Reviews, Checkpoint and
Highlight Reporting
Governance at
closure
– validation of
benefit realization
Business
Case
Approval
Proposal Concept
G0
Idea Approval
Or
Rejection
Handover,
demobilization
and closure
Execution Project
Planning
Project
Initiation
Project
Launch
Approval
to
Execute Continuous
Execution reviews
Project Sign-off
& Lessons
Learned
G1 G2 G3 G4 G5 1 2 3 4
Approval to
Transition
Does your PMO demonstrate value to Business?
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Not at all Very little Somewhat Considerably We deliver comprehensiveROI reports to the business
in real time
Source: Gartner and CA Survey, 2009
PMO Competences
• Business acumen
• Organizational
• Leadership
• Change Management
• Service delivery
Service Excellence
• Understanding the customer and needs
• Proactive to business needs
• Support available when needed
• Service received perceived better than externally available
• Continuous improvement
• Continuous competence development
• Evolving with the business
• “Unbureaucratic”
PMO Service Excellence –Example of Metrics
Criteria Importance of Criteria (1-5)
Current Rating Actions to improve Rating
Capability to enable business strategy
5
Capability to support projects
5
Capability to extend reach
5
Performance metrics - costs 5
Performance metrics - SLA 5
Competence of PMO Resources 5
Ease of communicating with PMO
5
PMO Assessment and Improvement
III. Capability Planning A B C D E PMO has clear understanding of its annual objectives to be
achieved.
PMO works at developing a project teams.
PMO keeps close contact with Project Managers.
PMO conducts capability and resource requirement plans.
PMO has Programme Set up and Management competencies.
PMO has portfolio analysis and management competences. PMO proposes alternative solutions to problems to senior
management for consideration.
Total 0 0 0 0 0
IV. Monitoring and Controlling A B C D E
PMO continually reviews projects performance.
PMO maintains current projects schedules chart that displays
actual progress toward objectives compared with the originally
planned progress toward these objectives for each task being
controlled. PMO maintains projects cost charts that displays budgeted costs
or levels of effort for work completed and the actual cost of the
work. PMO informs relevant parties of needed corrective actions
whenever accomplishments deviate significantly from the plan.
PMO reviews regularly project managers' risk registers.
PMO keeps respective line managers well informed about the
projects performance.
Total 0 0 0 0 0
Percent of time you agree with the Question
A B C D E
90-100 75-89 50-74 25-49 0-24
I. Business Management A B C D E
1 PMO maintains close personal liaison with senior management for all critical
projects. 2 PMO facilitates all processes of project lifecycles. 3 PMO supports project teams in resolving their problems 4 PMO proposes solutions to project problems to management 5 PMO supports PIR of projects
6 PMO reports to management on organisational support elements status with
respect to improving the services that it provides. 7 PMO establishes SLAs and provides performance data
8 PMO demonstrates it's value added to the organisation
Total 0 0 0 0 0
II. Organization A B C D E
1 PMO develops a clear chart describing its roles and responsibilities in the
organisation. 2 PMO staff have clear roles and responsibilities. 3 PMO has defined lines of authority for all PMO staff. 4 PMO provides a good balance of workload for its staff.
5 PMO provides advice to line managers in selecting project managers for
projects. 6 PMO makes best possible use of skills and talents of its staff.
7 PMO provides guidance to project managers at the beginning of each
project.
8 PMO provides coaching to project managers.
Total 0 0 0 0 0
Percent of time you agree with the Question
A B C D E
90-100 75-89 50-74 25-49 0-24
V. Reporting A B C D E
1 PMO has adequate project resources for quality reporting.
2 PMO writes reports that are tailored to the target audience.
3 PMO validates all reports prior to distribution to various stakeholders.
4 PMO maintains close personal liaison with project managers throughout the duration of the project.
5 PMO requires project managers to report on progress on: Risks, Quality, Schedule and Budget
objectives of projects.
6 PMO submits periodic reports to management on: Risks, Quality, Schedule and Budget objectives of
projects.
7 PMO reports to management when projects pose risks to the organisation when performance is lagging
plans.
Total 0 0 0 0 0
Percent of time you agree with the Question
A B C D E
90-100 75-89 50-74 25-49 0-24
SCORING
After you have completed all questions, your column totals for each of the PMO Functions which will be automatically
transferred to the table below to calculate the total scores for each.
A B C D E Total
I . Business Management 0 0 0 0 0 0
II. Organization 0 0 0 0 0 0
III. Capability Planning 0 0 0 0 0 0
IV. Monitoring and Controlling 0 0 0 0 0 0
V. Reporting 0 0 0 0 0 0
PMO Assessment and Improvement