Developing Project Offices

William Franklin

Objectives

• Context for project, programme and portfolio management support structures and centres of excellence

• Structure of portfolio, programme and project offices

• Benefits of establishing a structured framework of support, standards and information sharing

Portfolio Management

Project Management

Programme Management

Vision and Strategic Objectives

Change Management

Core

Bus

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Chan

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Chan

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Responsibilities for best practice

Accredited Training Organisation

Owner of BestManagement

Practice

Examiningboard

PRIORITISATION

COORDINATION COORDINATION Risk

DELIVERY DELIVERY

PORTFOLIOLEVEL

PROGRAMMELEVEL

PROJECTLEVEL

INDIVIDUAL PROJECT &PROGRAMME SUPPORT

Manages overallRisk exposure

Decision enabling/delivery support model

Integrated model

PRIORITISATION

COORDINATION COORDINATION Risk

DELIVERY DELIVERY

Integrated modelCentre of Excellence

P3 and BAU

Portfolio – “The totality of an organisation’s investment (or segment thereof) in the changes required to achieve its strategic objectives.”

Programme – “A temporary flexible organisation created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisation’s strategic objectives”

Project – “A temporary organisation structure designed to deliver specific outputs over a defined period of time according to specified cost, quality and resource constraints”

Business as usual – “Day to day work, with standardisation and limited changes. Based on a line management structure, where staff have certainty and stability over their work and are clear about their roles”

Portfolio vs. Programme or Project Offices

Portfolio Offices Programme and Project Offices

Focused on doing the ‘right changes’ Focused doing the ‘change right and doing the change well’

Define right changes, those that best align with strategic objectives, at that particular time, attract acceptable risk, complexity, cost and impact on business as usual

Support programme and project managers to delivery a specific change on time, within budget and to standard

Usually permanent, aligned with corporate financial governance structures and decisions

Temporary, aligned with Programme or Project governance structure arrangements

Contact with Senior Management Board

Contact with Programme or Project Board

Benefits by Business ImpactBenefits - disciplined project selection

Lots of initiatives, company is growing and

investing in new directions

Strategic

Establishing new presence in new

region

Speculative

Improving quality of delivery

Operational

Cost reduction and efficiency improvements

Support

Strategic Speculative

Operational Support

Importance to current organisation

Imp

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Benefits – quality standards• Enables implementation of quality

management standards

• Increases the number of project deliverables that are ‘right first time’

• Enables implementation of international best practice in P3O:—Portfolio management—Programme management—Project management

Benefits – efficient use of resources

Project 1

Project 2

Available resources

• Disciplined project selection process based on business benefits/value for money/strategic contribution

• Enables one vision of all projects across the organisation, leading to focussed project activity

Benefits – information exchange

PMO

Projecttolerances

Projectprogress/exceptions

Project Board

Project Manager

Team Manager

Stagetolerances

Stageprogress/exceptions

Work Packagetolerances

Work Packageprogress/issues

• To PMO:• Project progress• Project level risks, issues

and changes• Exceptional items

• From PMO:• Decisions on priority in

overall portfolio• Decisions on resource

availability and allocation

• Information on risks, issues and changes from other projects

Dir

ect

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Ma

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eliv

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PMO responsibilities

Support/Enabling Assurance/RestrainingGovernance

Provision of tools, techniques and resource

database

Information hub for senior management

Central management of core project, programme and portfolio functions

Verifying achievement towards planned

outcomes

Optimisation of portfolio to achieve successful

implementation of change

Ensuring viability of desired strategic outcome

Level o

f bu

siness ch

an

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Typical P3O roles

Management roles• PO Sponsor• Head of PO• Programme or project

specialist (coach/mentor)• Programme or project

officer (coordinator or administrator)

Functional roles• Benefits• Commercial (contract)• Communications & stakeholder

engagement• Information/Config Mgt• Finance• Issue/Risk/Change• Planning• Quality assurance• Resource management• Reporting• Secretariat/administrator• Tools expert

© Maven Training 200915

P3O Sponsor• Ideally member of main board • Directs and champions establishment and evolving

operation of the P3O • Committed to developing maturity of project

management across the organisation• Has strong leadership and management skills• Understands wider objectives of the portfolio and

programmes• Develops and maintains relationships with senior

managers, programme and project teams and 3rd parties

© Crown copyright 2008

© Maven Training 200916

Head of P3O• Establishes and runs permanent office• Develops and maintains robust relationships with

business, programmes and projects• Understands wider objectives of the change, has

credibility within environment to influence others • Provides strategic challenge, overview and scrutiny• May be a Strategic or Business Planning Manager or

Director• Has significant experience of project management• Has understanding of programme and portfolio

management

P3O pitfalls• Not investing appropriately in the right skills• Investing too heavily in tools which the organisation is too immature to

use effectively• Trying to do too much too quickly – instead of a phased implementation• Unsupportive culture due to lack of senior management support• Lack of skilled programme and project managers• Lack of clarity in roles and responsibilities of individuals or of the

Programme Office Lack of integration of functions and services offered by P3O offices and the wider organization

• Lack of buy-in of business owners into the need for project and programme discipline

• Low level of understanding of the Senior Management role in sponsoring business change

• Lack of appetite on the part of senior managers for decision support information

www.mavenprojectmanagement.co.uk

www.mavenprojectsponsorship.co.uk

Thank you

www.maventraining.co.uk