pmo challenges and opportunities; dipmf presentation
DESCRIPTION
The term PMO has been around for many years but it stills creates confusion. There is no standard definition of what a PMO is, even what some of the letters represent. A lack of common definition is acceptable, yet desirable since one-size does not fit all. In this short presentation, the speaker will share his insights on PMO’s, purpose, mandates and why many PMO fails or are challenged. In addition, the speaker will discuss the critical link between PMO (Project Management Office) and OPM (Organizational Project Management) … closing with our hypothesis that unless the PMO own OPM, the organization will not achieve higher level of project management maturity and significantly enhance organization performance.TRANSCRIPT
www.sukad.com | [email protected] | Offices in Lebanon and United Arab Emirates
PMO Challenges and Opportunities
Definitions
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The Acronym PMO – “P”?
Project?
Program?
Portfolio?
Process… People…Profit…?
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PMO – Two Possibilities
• Usually for one major project or program
• Dismantled once project or program is complete
One Program/ Project PMO
• For multiple projects or programs
• Organizational unit• Should be permanent
Organizational PMO
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Challenges
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No consensus on value of PMO
Perceptions of high/low value are based on different characteristics
PMO are short-lived
Mandate covers either most, or few projects
PMO houses few, or all project managers
Dr. Brian Hobbs Survey – 1
Organizational Project Management | PMO Challenges and Opportunities 6
PMI Research
Dr. Brian Hobbs Survey – 2
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Most PM have small staff; apart from project managers
Important functions are determined by the needs of the specific organizational context
Location of PMO has an impact on mandate
PMO performance depends on authority and organization's culture and PM maturity
PMI Research
Does the organization have PMO (Q8)
67%
15%
15%3%
Does the Organization Have PMO
Yes No Considering Other Comments
SUKAD Research 2010
Organizational Project Management | PMO Challenges and Opportunities 8
PMO Success (Q18)
10%
42%30%
8%3% 7%
PMO Success - Respondents' View
Highly Successful Successful Neutral Not Successful Failure Others
SUKAD Research 2010
Organizational Project Management | PMO Challenges and Opportunities 9
Comments on success rating (Q19)
Highly successful• Top management satisfied with reporting level
and escalation issues• The organization following the PM methodology• They get the job done• Recently established & successfully implemented
PM fundamentals• Before failures we cancel projects• Meet deadline and budget
SUKAD Research 2010
Organizational Project Management | PMO Challenges and Opportunities 10
Comments on success rating (Q19)
Not Successful• Resistance and lack of accuracy
• No repeated success stories
• Trying to cover all types of project management and in the end looses focus
• Does not meet its stated objectives
• Not properly supported and championed by executive management
SUKAD Research 2010
Organizational Project Management | PMO Challenges and Opportunities 11
Comments on success rating (Q19)
Not Successful• Not enough authorities provided to PMO
• No educated manager, no PMO methodology, no career path, no leadership
• Projects done per the old way
• Repeated failure in achieving the target
• Was too utopian for a start-up organization
• Novice PM capabilities
SUKAD Research 2010
Organizational Project Management | PMO Challenges and Opportunities 12
Project Management in GCC1
Project Failures• Number 1 reason is lack of a methodology – 78%
of respondents
Other factors• Lack of communication – 75%
• Unrealistic target completion dates – 67%
• Inadequate senior management support – 59%1 ITP Publishing - 10 May 2010
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Gaps in PMO implementation“Role of PMO must become more strategic and must develop its capabilities accordingly”
PMI Thought Leadership Publication
PMO are often • Not effective or not delivering optimal solutions,• Not able to become the organization’s PM department
Still too much focus • On reporting or support; not leading or directing• Often not building the necessary OPM system
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The PMO continuum
Most common, lower value
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Opportunities
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Why the PMO
Be ready to consider that the organization does not need a PMO
Ensure you can differentiate on whether you need a PMO or OPM System
Beware of false expectations!
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PMO as an organizational unit11 Human Systems International: the effective PMO survey 2009
EnterprisePMO
Business/division
PMO
ProgramPMO
ProjectPMO
Hierarchical positionHigher - Lower
Nat
ure
of o
rgan
isatio
nTe
mpo
rary
-Pe
rman
ent
Organizational Project Management | PMO Challenges and Opportunities 18
Stra
tegi
c al
ignm
entp
roce
ss
Strategic alignment within organization
EPMO?
PfPMO?
PgPMO?
PjPMO?
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PMO’s in an organizational structureEPMO
BPMO
PtfPMO
PgPMO
PPMO
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The PMO continuum
Most common, lower value
Not as common, most value
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Organizational commitment to PM
According to Dr. Schloss, PM@Siemens has:
• Attributed more than €39 billion in annual revenue to project management - drawing best practices from their experiences and internationally accepted standards
• This is half of Siemens' annual revenue
Report from Milan - PM@Siemens presentation during PMI Global EMEA Congress 2010
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Project management maturity
Awareness
Excelling
Improving
Applying
Learning
Performance ImprovementCost
Spe
nt o
n Pr
ojec
t Man
agem
ent
1
2
3
4
5
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The Center for Business Practices
Think PMO Maturity = Project Management Maturity
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The key is:can we change the Mindset?
Organizational Project Management
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The origin of the concept
The Engines of Project
Management
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Processes
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The Core –Fundamental
Elements
The Differentiating
Elements
The Differentiating
Elements
The Strategic Element
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The vital points to noteThe strategic aspect is critical for any OPM or organizational systemThe fundamental elements are a must for any organization wanting to manage projects • They provide the core elements and processes
However, to elevate performance we need the differentiating elementsEach element have numerous components
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How to build?
Implementing OPM System Program
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The Program – Extended Approach
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SUKAD Business Divisions
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http://learning.sukad.com
http://solutions.sukad.com
http://technology.sukad.com
http://multimedia.sukad.com
SUKAD Knowledge Sharing Sites
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http://sukadway.sukad.com
http://knowledge.sukad.com
http://blog.sukad.com
http://blog-ar.sukad.com
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SUKAD OPM System workshop
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http://learning.sukad.com/courses/organizational-project-management
Thank you!
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