PMO AssuranceGetting Value from Management Information

Jon Street & Jez Batt

2

Introduction

•Objectives for next 30 minutes:• A short story: how our PMOs provision of management information and

analysis has provided assurance for a wide range of stakeholders including organisations Board of Directors

• Challenge all of us on the value we currently get from our management information and what we could do to improve

•Why is PMO assurance important to our clients

•What is “assured” and who for

3

Contextual project support

•The PSO role – understanding a project’s needs

•Project controller

•Consistency of approach (multiple areas with varying complexity and maturity)

•Heartbeats and month-end

4

Programme assurance

3 key aspects:

1. Data assurance

2. Informing leadership through relevant MI

3. Enabling proactive action through analysis of MI

• P3M specialist – promotes industry and P3M best practice

• PMO Service Management & Consultancy – to optimise service quality

Programme Assurance

PMO Service Management

& Consultancy

P3M Specialist

5

Transforming “MI” to “BI”

1. What Happened? Using the available data to present progress made2. Why Did It Happen? Using the available data to understand progress made3. What Is Likely To Happen? Using the available data to predict onward progress and

success potential4. What Should I Do About it? Using the available data to take proactive action to increase

the likelihood of success

Management Information (MI)

BusinessIntelligence (BI)

6

Example of finance assurance (1)

 

Delegated FY Budget Actual to Date Forecast POT Outstanding 

CommitmentActual + 

Commitment

Project A 6,100,000 1,267,988 8,350,875 1,388,220 2,656,208

Project B 2,400,000 342,921 2,951,422 26,765 369,686

Project C 4,800,000 2,134,773 4,800,000 2,665,227 4,800,000

Project D 2,150,000 0 2988238 14,308 14308

  15,450,000 3,745,682 19,090,535 4,094,520 7,840,202

Even with a simple financial table it’s not that easy to tell what is going on with this Programme’s financial position, or what we need to consider...

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Example of finance assurance (2)

41365 41395 41426 41456 41487 41518 41548 41579 41609 41640 41671 416990.00

5.00

10.00

15.00

20.00

25.00

19.0919.10

7.84

15.45

Theme Plan Actual/Forecast Last Month Committed Delegation

• We should request additional budget delegation before funding runs out in January• However, we should review forecasts in light of under spend against original plans• The monthly burn rate for second half of the year requires more than a 400% increase• Committed funds are lower than forecast spend by October

all figures £m

By visualising the data analysis, and by adding key messages we quickly identify where and what action the programme should consider...

8

Portfolio advantage

•Consistent data repositories and maintenance through-out the stack

•Allow for reporting to senior managers and directors

•Board reviews

Project planning data

Programme planning data

Supply chain workbooks

Inter-project dependencies

Steering group reports

Supply Chain dashboards

Project dashboards

Work authorisation and financial delegation

Board review

9

Board reviews

Types of MI/BI at different organisational levels:

•Board > MI/BI, coherence and alignment against organisation strategy, and personal interaction

•Portfolio > MI/BI and coherence of portfolio

•Programme > MI/BI (time, cost, resources)

•Project > MI/BI (time, cost, resources)

•Supplier > MI/BI (time, cost, resources)

10

Take-awaysWe are succeeding if we are providing...

Increased MI integrity and clarity of delivery progress Increased ability to take the advanced action necessary to

enhance delivery performance, through: Early warnings Identifying trends and patterns Analysis based on what could happen, rather than what has

happened...

Increased visibility and linking of finance - delivery - risk Increased support for delivery management and control

processes Optimised application of, and continuous improvement of,

P3M best practice and governance

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Question for table discussion

Consider where your project, programme and/or organisation fits on the “transforming MI to BI” slide

What one or two things would you like your PMO to do differently to be help you get the greatest value from your MI?

Management Information (MI)

BusinessIntelligence (BI)