pmo presentation color final

7/21/2019 PMO Presentation Color Final

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IT Project Management Office

Paul R. Astiz, MBA, PMP, CDP

[email protected]

(703-610-2435)
mailto:[email protected]:[email protected]


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Presentation Objectives

Provide an overview and generalunderstanding of PMO models,functions, success factors, and

implementation

Introduce the CobiT PM CMM as aframework for establish and evolving

the PMO Project Managementfunctions


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Outline

IT PMO Trends

PMO Models

PMO Key Considerations

Charter Culture Change

Implementation Strategies

Staffing/Skills

Performance MetricsCritical Success Factor

Introduction - CobiT CMM


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IT PMO Trends67% of IT organizations in 2003 have PMOs (Forrester Survey)More than half established since 2000 (Forrester Survey)Government is moving to standardize IT ProjectManagement Nov, 2003, Federal CIO Council recommends setting up

Federal PMO to standardize PM practices Jun, 2004, SC requires management of major and inter-agency IT projects to use standard practices and be managedby PMP

Jan, 2001, NY sets up PMO to standardize management oftechnology projects

Jun 2002, CA CIO established objectives for statewide project

management standardsIT PMOs are becoming strategicIT PMOs are gaining more influence


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Whats Driving IT PMO

Proliferation?Late and over budget IT projects Lack of coordination of activities Poor project management practices Lack of standardization of PM methodology

Need for consolidated project reporting to driveprioritization/decisions

More focus on IT project ROI More focus on alignment of IT projects with business strategy Strategic value and dependency on IT applications/technologies

Increase in IT Project workload Proliferation of IT project proposals Delays in getting projects approved

More complex IT environment and solutions Enterprise solutions/cross-functional projects Distributed development organizations Outsourcing and contracting out of IT projects


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PMO Benefits

Companies that implementedsuccessful PMOs achieved:80% ROI

20% reduction in project time30-35% successful project delivery

Companies without a PMO

experience 74% project failure rate

Source: Forrester Research


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PMO ModelsOne size does not fit all PMO drivers/business needs PM maturity Vision and goals of sponsor Business/organization mission

Organization size Number of projects Political and cultural environment

Tactical vs. strategicInternal vs. external focusDepartmental vs. enterprise (IT vs. LOB)Single vs. multipleStaff vs. line organization


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SUPPORT CONTROL

Project administrative support

PM standards, methodology, processesProject Consulting and mentoring

PM coaching/training/certification

Integrated Project Reporting

Issue Tracking/ReportingMaster Project Schedule

Project Document Repository

PM tools and tools support

Project Audits

Cost and Schedule ControlBusiness Case

Project Approval

Project Prioritization

Project ManagementResource Management

IT Asset Management

Project Portfolio Management

PMO Support/Control Model


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Key Considerations

PMO charter

Culture change

Implementation strategyStaffing

Metrics/Performance

Success factorsMaturity of Project ManagementPractices


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PMO Charter

Charter Scope Business Needs

Sponsor

Public vs. Commercial

PM MaturityCharter Document Mission/Vision

Goals/Objectives

Sponsor

Service Offering

PMO Governance

Key Performance Metrics

Funding model


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PMO - Culture ChangeNatural resistance to changePolitical landscape Winners/Losers Management Support

Degree of cultural change PM maturity PMO charter Existing skill level Key driver implementation strategy

Change Management Assess impact of change Inform Educate Involve


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PMO Implementation StrategiesStrategy drivers PMO charter PM maturity Sponsor and management support PMO drivers Perception of value

Political environment Culture/Value System

Evolutionary/Incremental Lower implementation risks Lower start up costs Will take longer to demonstrate ROI More suitable if high resistance to change and low management

supportRevolutionary/Wholesale Higher implementation risks Higher startup costs May be able to demonstrate ROI quicker More suitable if crisis or recognition at high level that change is

imperative


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PMO Staffing/Skills

Staffing Approaches In-house resources

Hybrid (In-house/contractors)

Ad hoc contractors augmentation

Skills PMO Director/Manager

Project Manager

Project Portfolio Manager

PM Process/Methodology Trainer

Relationship/Account Manager

Tools Support/Administration

Administrative Support

Librarian/Document Control


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PMO Performance MetricsPMO vs. Project metricsLess that 15% of PMOs employ formal metrics program (Source: Forrester Research)Metrics are essential for growth and support demonstrate progress, value, andproductivityPerformance metrics are driven by charter no such thing as typical metricsBusiness value metrics

Executive focus - Measure and demonstrate value to business Help justify existence during downsizing Expressed primarily in dollars savings/revenue or ROI Tend to be few and harder to derive

Functional performance metrics Internal focus - Measure and demonstrate performance or quality of PMO functions Help justify PMO budget Help improve PMO performance May require baseline or benchmark to demonstrate performance Expressed primarily in percent or counts

Tend to be many depending on functions performed Must be selectively chosen so as not to overwhelm

Service level metrics Customer focus - Measure and demonstrate service level or quality of service to customer Help improve and maintain customer satisfaction SLA/SLO Expressed in a variety of ways Select on key and most important value to customer community


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Success Factors

Clear Charter Creates clear expectations

Defines boundaries for implementation

Top-Down Support

Bottoms up Buy-inSponsor - Reporting to senior executive

Strong LOB representation

Communication/PR

Promotion of services Education of value

Performance metrics that demonstrate business andcustomer value


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PM Capability Maturity Models

Valuable tool for establishing PMO andhelp define objectives, charter, andprocesses

Assess current statusCompare against best practices

Develop strategy and road map for PMO

Help communicate vision and get buy inDifferent models (CobiT, OPM3, ISO15504, CMM/CMMI)


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CobiT Capability Maturity ModelCobiT CMM is valuable and comprehensive framework forassessing maturity of IT organizationCobiT CMM International Open Standard for IT Governance IT Governance Institute (ITGI)

Information Systems Audit and Control Association (ISACA)ITIG not associated with Software Engineering Institute(SEI), Carnegie MellonCobiT CMM uses same conceptual framework as SEIsCMMDefines maturity of IT organizations in four domains

Planning and Organization Acquisition and Implementation Delivery and Support Monitoring

PM CMM part of CobiT Planning and Organization domain

Sources: WWW.ISACA.ORG and WWW.ITGI.ORG


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CobiT Maturity Levels

0 Non-Existent Not applied

1 Initial Ad hoc and disorganized

2 Repeatable Follow regular pattern

3 Defined Documented/communicated

4 Managed Monitored and measured

5 Optimized Best practices followed/

automated

Source: CobiT 3rd Edition, Management Guidelines


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CobiT Project Management

Process Control Statement

Control of project managementprocess with the business goal ofsetting priorities and delivering on

time and within budgetIs enabled by the organizationidentifying and prioritizing projects in

line with the operational plan and theadoption and application of soundproject management techniques for

each project undertakenSource: CobiT 3rd Edition, Management Guidelines


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Level 0 Non Existence

PM techniques not used

Organization does not considerbusiness impact of poor projectperformance



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Level 1 Initial/Ad Hoc

Aware of need for project structure and risks of poorlymanaged projectsUse of PM techniques left to the individualProjects are generally poorly defined and do not incorporatebusiness or technical objectives of the organization orstakeholders

Lack of management commitment and project ownershipCritical project decisions are made without usermanagement or customer inputLittle or no customer and user involvement in defining ITprojectsNo clear organization within IT projects and

roles/responsibilities are not definedProject schedules and milestones are poorly definedProject staff time and expenses are not tracked andcompared to budgets



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Level 2 Repeatable but Intuitive

Sr. Management has gained andcommunicated an awareness of the needfor IT Project Management

Organization is in the process of learningand repeating certain techniques andmethods from project-to-project

Projects have informally defined business

and technical objectivesLimited stakeholders involvement in PM

Some PM guidelines developed, but left todiscretion of project managers



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Level 3 Defined ProcessPM process and methodology formally established andcommunicatedIT projects defined with appropriate business and technicalobjectivesStakeholders are involved in the management of IT projects

Defined project structure with roles and responsibilitiesDefined and updated project milestones, schedules, budgetand performance measurementsIT Projects have formal post systems implementationproceduresInformal project management training provided

No established policies for using combination of internaland external resourcesQuality assurance procedures are defined



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Level 4 Managed and MeasurableFormal and standardized project metricsPM measure and evaluated throughout organization not justITPM process enhancement formalized and communicated,and project team members are trained on all enhancements

Risk management performed as part of PMStakeholders actively participate in projects or lead themProject milestones and criteria for evaluating success ateach milestones are establishedValue and risk are measured and managed prior to, during,and after project completion

Management has established a program managementfunction within ITProjects are defined, staffed, and managed to addressorganizational goals, rather than only IT specific ones.



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Level 5 - OptimizedProven full life-cycle project methodology is implemented

and enforced, and integrated into organizational cultureOn-going program to institutionalize best practices hasbeen implementedStrong and active project support from Sr. Managementsponsors and stakeholdersImplemented project organization structure withdocumented roles, responsibilities, and staff performancecriteriaLong term IT resources strategy is defined to supportdevelopment and operational outsource decisionsIntegrated Program Management Office is responsible forprojects from inception to post implementationProgram Management Office is under the management ofthe business units and requisitions and directs IT resourcesto complete projectsOrganization-wide planning of projects ensures that usersand IT resources are best utilized to support strategicinitiatives



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CobiT PM Success FactorsExperienced and skilled project managers are availableAccepted and standard project management process in placeSr. Manager sponsorship of projects, and stakeholders and ITstaff share in the definition, implementation, and managementof projectsThere is an understanding of the abilities and limitations of theorganization and the IT functions in managing large, complexprojectsOrganization-wide project risk assessment methodology isdefined and enforcedAll projects have a plan with clear traceable work breakdownstructures, reasonably accurate estimates, skill requirements,

issues to track, quality plan, and transparent change process(my note effective PM methodology enforced)Transition from implementation team to operational team is awell-managed processSystem development life cycle methodology has been definedand is used by the organization



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CobiT PM Key Goal Indicators

Increased number of projects completed on timeand on budget

Availability of accurate project schedule andbudget information

Decrease in systematic and common projectproblems

Improved timeliness of project risk identification

Increased organization satisfaction with project

delivery servicesImproved timeliness of project managementdecisions


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CobiT Project Management

Key Performance Indicators

Increased number of projects delivered inaccordance with defined methodologyPercent stakeholders participation inprojects (involvement index)

Number of project management trainingdays per project team memberNumber of project milestones and budgetreviews

Percent of projects with post-projectreviewsAverage number of years of experience ofproject managers


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Conclusion

IT PMOs can improve IT project deliveryperformance

One size does not fit all

PMO Support/Control model most usefulClear charter, top down support, & bottomups buy is key to PMO success

PMO performance metrics should focus on

value to key stakeholdersCMM valuable framework for establishingand evolving PMO

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