Project Management Office

Presented by- Group F

Group F - PMOs Implementation,Functions and Sustainability

• PMO is a centralized Organization dedicated to improve practice and results of project management

• PMO is termed as a ‘Value Machine’ that provides higher return on investments that any organization makes in projects

• PMOs can be deemed as the arms of executives to meet their strategic goals by being the single point of knowledge

Introduction

Group F - PMOs Implementation,Functions and Sustainability

Roles of a PMO

• Provision of administrative support• Identify, develop and mentor PM maturity• Determine if a new project is ‘fit’ for the changing

organization• Linking project strategy to project execution• Establish and enforce good PM processes such as

procedures for bidding ad risk analysis• Identify downstream changes in the and impacts on

current projects• Ensuring lesson learnt are documented and

implemented for continuous improvement

Group F - PMOs Implementation,Functions and Sustainability

Categories of PMO

Project Management

Office

Supportive PMO

Controlling PMO

Directive PMO

Group F - PMOs Implementation,Functions and Sustainability

PMO Framework

STRATEGIC MANAGEMENT

Programs and Projects

Formulate Strategy

Reformulate Strategy

Optimize Effort

Gather Data

PMOCollate and

AnalyzeClarify Actions

Leadership and

Processes

Processes and

Procedures

• PMO is a governance structure for organizational project management

• Before Sustainability PMOs position in the organization should be known (direction)

• PMO work in a lifecycle with major roles associated to it

• The PMO articulates the processes and procedures associated with the strategy

• Data gathering and amendments are made looking into the project and program

Group F - PMOs Implementation,Functions and Sustainability

PMO Value ScaleIn

crea

sing

Res

pons

ibili

ty

Increasing Value

Project Reporting

Project Controlling and

Execution

Project Portfolio

Benefit Management and Strategic

Alignment

Group F - PMOs Implementation,Functions and Sustainability

Engaged and relied-upon for involvement in strategic activitiesV A L U E

K E Y P L A Y E R Staffed with experienced professionals

PMO: The Value Creator

Group F - PMOs Implementation,Functions and Sustainability

Capabilities for PMO Success

• Project Portfolio Selection• Financial Planning• Performance tracking• Project Status Reporting• Project Dependency Management• Change Order Management• Project Quality Assurance• PM Training

Group F - PMOs Implementation,Functions and Sustainability

Benefits Obtained from PMO

• Provides a full transparency into all aspects of the projects

• Better control over the projects• Better equipped with information that allows for

decision-making• Minimizing uncertainty and associated risks• Increasing support and buy in from all

stakeholders

Group F - PMOs Implementation,Functions and Sustainability

Why PMOs Fail

• Change of Leadership• Not adapting key project practices• Benefits are too long coming• Organizations don’t take the change• Irrelevance• Difficult to get a buy-in from the top management

Group F - PMOs Implementation,Functions and Sustainability

Ensuring Sustainability of PMOs

• Continuous Improvement• PMO has to have an environment where ideas

can be created• Governance• Continuous Training• Standardization & Optimization of Project

Management Methodologies• Create uniqueness in organizational

operations• Consulting and Mentoring roles

Group F - PMOs Implementation,Functions and Sustainability

Success Factors PMO

• Clear understanding of the expectations of the client

• Clear and effective communication• Client Involvement• Involvement of top executives as major

stakeholders in the place• Executives should understand the PM practices

fully• PMOs should be aligned with the organizations

strategy

Group F - PMOs Implementation,Functions and Sustainability

Forms of PMOs

• PSO - Project Support Office

• PPSO - Projects & Programme Support Office

• PMO - Project Management Office

• EPMO - Enterprise Programme Management

Group F - PMOs Implementation,Functions and Sustainability

Categories of Functions

1. Project Focused• Consulting Services• Mentoring• Compiling lessons learnt• Budget and cost monitoring • Schedule and record meetings• Archiving performance data• Establish knowledge management systems

2. Enterprise Oriented• Staff augmentation• Communication • Team building • Problem solving• Training

Group F - PMOs Implementation,Functions and Sustainability

Determining Appropriate PMO Roles

Assess Current Management Practices

Ensure PMO involvement throughout

the Project

Identify Loopholes in managerial processes

Implement Strategic or technical approach for

functional delivery

Group F - PMOs Implementation,Functions and Sustainability

Group F - PMOs Implementation,Functions and Sustainability

Evolution of PMO

3 Processes evolving PMOs

• Reduce Business Risk PMO to improve project delivery and develop competent project managers.

• Effective Manage of Resources Move to a programme management office to coordinate business and project teams.

• Contribute to Business Growth Evolve to a Portfolio Management Office to optimise organisation’s Project Portfolio and its realisation of benefits.

Understand the role the business wants the PMO to play. Don’t deliver a battleship solution you can’t support and that the business doesn’t need.

Mike McLaughlinDirector IT PMO and cross-functional services EMC Corporation

Group F - PMOs Implementation,Functions and Sustainability

Group F - PMOs Implementation,Functions and Sustainability

Conclusion

Group F - PMOs Implementation,Functions and Sustainability

• PMO roles are temporary but is still a vital office to maintain Project, Programme and Portfolio Success.

• PMO needs to be flexible to allow for any changes in situations.

Group F - PMOs Implementation,Functions and Sustainability

References• ANDERSEN, B., HENRIKSEN, B. and AARSETH, W., 2007. Benchmarking of Project Management Office

Establishment: Extracting Best Practices.  Journal of Management in Engineering, Vol. 23 Issue 2, p97-104• ESI International & PMO white paper., 2010. Taking Your PMO to the Next Level: Four Steps to Value

Improvement.[online]. Available from :• http://www.projectsmart.co.uk/docs/taking-your-pmo-to-the-next-level.pdf [Accessed 2 March 2013]• HURT and THOMAS, 2009. Building Value Through Sustainable Project Management Offices, Project

Management Journal, Vol 40, No 1, p55-72• LARSON, E. W. and GRAY, C.F., 2011. Project Management: The Managerial process. New York: McGraw-Hill, 5th

ed.• KENDALL, G. I. and ROLLINS, S. C., 2003. ADVANCED PROJECT PORTFOLIO MANAGEMENT AND THE PMO,

Multiplying ROI at Warp Speed [online] Available from : http://books.google.co.uk/books?id=Zb2L9awkAsAC&printsec=frontcover&dq=PMO&hl=en&sa=X&ei=Mu4tUdXfEcHC0QXSloDYBQ&safe=active&redir_esc=y [Accessed 03 & 04 May, 2013]

• MEREDITH, J.R. and MANTEL, S.J., 2012. Project Management A managerial approach. 8th ed. John Wiley & Sons, Inc. pp. 192-196.

• RAYNOR, D. and FINCH, C., 2011. Unlocking PMO Profitability, Project Smart Website [Online] Available from http://www.projectsmart.co.uk/unlocking-pmo-profitability.html [Accessed 02 March, 2013]

• SHARMA, J., 2012. The Benefits of Having a Project Management Office (PMO) [online] Available from: http://www.tribridge.com/Blog/epm/default/2012-04-25/The-Benefits-of-Having-a-Project-Management-Office-PMO.aspx [Accessed 03 & 04 May, 2013]

Group F - PMOs Implementation,Functions and Sustainability