PMOProject Management Office

DILAWAR ABBAS

PMO MODEL

PMO MODELThere are two (2) standard Project Management Office (PMO) models:

Administrative and Functional.

The key difference between the two is “ownership” in terms of Accountability.

The Administrative PMO is responsible for maintaining the approved policies, processes, andprocedures commonly applied across all programs/projects, as well as the centralized ProjectAdministration support necessary to ensure consistent implementation.

A Functional PMO, on the other hand, is an organizational activity that assigns the ProjectManager (PM) resources responsible for program/project cost, schedule, and technical/quality performance. It is important to note that a Functional PMO also performs all of the functions of an Administrative PMO, including assignment of a Project Administrator

PRIMARY REASON FOR IMPLEMENTING PMOEfficiency – making optimal use of available resources;

Effectiveness – ensuring Project Management processes are delivered in a correct,consistent, and timely manner; and

IT Governance – providing the leadership, organizational structure, regulations,standards and processes that ensure projects comply with best practices in accordancewith the enterprise charter/mission, strategies, and business objectives

Regardless of whether it follows an Administrative or Functional model, the PMO serves as amechanism for satisfying six (6) standard process control objectives:

SIX STANDARD PROCESS CONTROL OBJECTIVESProcess Owner – designates an “owner” for each Project Management process so thatperformance responsibility is clear

Process Repeatability – Project Management processes are defined and yield consistentprocess results/outcomes

Clear Goals and Objectives – establishes clear goals and objectives for effectiveexecution of each Project Management process

Assigned Roles and Responsibilities – defines unambiguous roles, activities, andresponsibilities for each Project Management process to ensure efficient execution

Process Performance Evaluation – objectively measures the performance of eachProject Management process against defined goals and objectives

Approved Policy, Plans, and Procedures – documents, reviews, approves, andcommunicates to all stakeholders the applicable policy, plan, and procedure/workinstructions that drive each Project Management process

HOW PMO CAN BE SUCCESSFUL

PROJECT PLANNINGFor the PMO and PM to be successful, all activities, goals, milestones, and schedules must bedocumented in a Project Plan.

Project Plans are based on the Work Breakdown Structure (WBS), which identifies the activities necessary to deliver the highest value project work products and performance. The WBS defines the total project work scope, and each descending level of the WBS represents an increasingly detailed definition of the work to be performed.

The WBS provides the project scope definition foundation for resource and performance planning, time and cost estimating, budget formation, and progress/performance tracking and reporting.

Initiation

Planning

Costing

Execution

Control

Closing

PROJECT

PROCESS

COMMUNICATION MANAGEMENTEffective communications are a key factor in Project success. Project communications bestpractices include periodic Project Team meetings, regularly scheduled Client meetings andformal reviews and audits, and submission of regular (e.g., monthly) Cost and Schedule StatusReports (CSSRs).

To facilitate communication among the Project Team members and timely service delivery to Clients, a PMO can employ a variety of collaboration tools.

PMO

Project

Project Managers

PMO Management

Team Leads

Team

CHANGE MANAGEMENTProject Change Management - a general term describing the procedures used to ensure that changes are introduced in a controlled and coordinated manner.

Change Request – Requests to expand or reduce the project scope, modify policies, processes, plans or procedures, modify costs or budgets, or revise schedules.

Change Order – Used in some companies to identify approved change requests (change request when the request is made and change order once it has been approved)

Identify Change

Discuss

Analyze Document

Implement

Report

QUALITY MANAGEMENT Quality Management is a less-emphasized function of the PMO. In large IT organizations, primary Quality guidance is provided by a centralized Quality function and actual implementation guidance by the PMO. For smaller IT organizations, the PMO.

However, it is important that the PMO incorporate the Quality Management aspects into its guidance and governance systems, since process-orientation can bring in discipline and streamline all activities in the Programs/projects.

QUALITY MANAGEMENT The key responsibilities of a PMO for Quality Management include:

• Setting up quality standards if none exists or tailoring organizational standards.

• Provide guidance on defining acceptance criteria to measure successful completion of the project.

• Provide guidance on setting up Program and project specific metrics for monitoring, tracking progress and quality.

• Schedule, conduct and review Program and project audits to ensure they are following the guidance provided by the PMO.

• These aspects can be detailed out in a Quality Management Plan. A well-structured QM Plan can help the Program/Project adhere to the accepted practices in their projects. In addition, the PMO may also provide.

• Quality management support to projects through a dedicated team of people.

QUALITY MANAGEMENT A typical QM Plan will have the following Table of contents (sections):

• Reference to organizational processes (if available)• List and reference to any adaptations to the organizational processes, templates and

checklists• List and reference to program/project specific processes, templates and checklists• List and reference to all standards/guidelines (including technical, industry-specific

regulations, domain etc.)• Release Reviews performed by the Quality function before any customer/production

release.• Program/Project specific metrics and tolerances• Work product reviews that will be performed by people in the Quality function• Tools and techniques used for Quality activities• Defect prevention, causal analysis activities and techniques• Reports and Dashboards• Frequency and timing of project reviews and audits by the Quality function

QUALITY MANAGEMENTPROJECT DELIVERABLE MANAGEMENT

Prepare Work Product

QA / QC Review

Rework?

Deliver to PDU

PDU Review

Rework?Yes

No

Yes

No

Approve for DeliveryDeliver to Client

Client User Acceptance

Testing

Approved?

Client Comments

ProjectLibrary

CR

Yes

No

RISK MANAGEMENT

A risk is a possible future event that may affect your project either positively

or negatively.

Risk management is the systematic process of managing an organization's risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law. It consists of the planning, organizing, leading, coordinating, and controlling activities undertaken with the intent of providing an efficient pre-loss plan that minimizes the adverse impact of risk on the organization's resources, earnings, and cash flows.

RISK MANAGEMENT

Risk Assessment has three elements:

Identify UncertaintiesExplore the entire project plans and look for areas of uncertainty.

Analyze RisksSpecify how those areas of uncertainty can impact the performance of the project, either in duration, cost or meeting the users' requirements.

Prioritize RisksEstablish which of those Risks should be eliminated completely, because of potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention.

RISK MANAGEMENT In the same way, Risk Control has three elements, as follows:

Mitigate Risks.Take whatever actions are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan.

Plan for Emergencies.For all those Risks which are deemed to be significant, have an emergency plan in place before it happens.

Measure and Control.Track the effects of the risks identified and manage them to a successful conclusion.

EARNED VALUE MANAGEMENTEarned Value Management (EVM) is a project management technique that objectively tracks physical accomplishment of workMore Elaborately:

• Earn Value Management (EVM) technique used to track the Progress and Status of a Project & Forecast the likely future performance of the Project.

• EVM technique integrates the scope , schedule and cost of a project.• EVM technique answers a lot of questions to the stakeholders in a project related to the

performance of the project.• EVM technique can be used to show past performance of the project, current

performance of the project and predict the future performance of the project by use of statistical techniques.

• Good planning coupled with effective use of the EVM technique will reduce a large amount of issues arising out of schedule and cost overruns.

. . . follow process and progress will follow.

DETERMINING THE PMO

MATURITY LEVEL

LEVEL 1 REACTIVE PROJECT MANAGEMENT – AD HOCLevel 1 is the Reactive Project Management stage where methods are undocumented and delivery, budgets and schedules are uncontrolled.

At this basic level, PMO need to establish methods for project scheduling, time tracking,resource assignments, project tracking, oversight & support and perhaps use an automatedproject dashboard to track project success.

Key Identifications:

• No formal Project Management Process exist across the organization.

LEVEL 2 REPEATABLE PROCESS – CONSISTENTLevel 2 occurs when companies begin adopting Repeatable Processes. The main projectmanagement processes have been defined, but not constantly used. Still, project teams find it difficult to repeat earlier successes and the project still risks exceeding budgets and schedules.

At this established phase, PMO's should automate project budgeting, risk and issue tracking,requirements tracking, resource management.

Key Identifications:

• Secure Management Support.• Establish Project Goals across IT & Project Teams.• Consistent use of Documented Process.• Establish & Implement PM Training

LEVEL 3 PROACTIVE, STANDARDIZED PROJECT MANAGEMENT – INTEGRATEDLevel 3 PMO's show a commitment to Proactive, Standardized Project Management. Theyemploy documented standard project management and delivery processes, and consistently use these processes companywide for project delivery.

In this growth phase when these new tasks are mastered, the PMO can focus on automatingother functions such as financial management and business process modeling.

Key Identifications:

• Integrate Business & PM Processes.• Integrate Project Information Through PMIS.• Develop Advanced Techniques.

LEVEL 4 MEASURED PROJECT MANAGEMENT – COMPREHENSIVEPMO’s demonstrate Measured Project Management. Quantitative key performanceindicators have been specified for project success and are monitored frequently. The PMO has achieved predictable and controllable project delivery and is now free to become more“innovative.”

Key Identifications:

• Define goals for all functions and processes.• Promote metrics based performance.• Promote participation of all stakeholders.• Establish risk management culture.• Establish a PM core competency.

LEVEL 5 MATURED – OPTIMIZINGAt Level 5, the most mature PMO enterprises continuously improve project management. Atthis level, the “connected” PMO can focus on automating vendor management, collaboration through social networks and blogs – and communication through text, IM, video or mobile.

Key Identifications:

• Proactively prevent defects.• Implement a continuous improvement strategy.• Achieve high project success rates.

PMO MATURITY MATRIXAd Hoc

• No formal Project Management Process exist across the organization

CONSISTENT• Secure

Management Support.

• Establish Project Goals across IT & Project Teams.

• Consistent use of Documented Process.

• Establish & Implement PM Training

INTEGRATED• Integrate

Business & PM Processes.

• Integrate Project Information Through PMIS.

• Develop Advanced Techniques.

COMPREHENSIVE

• Define goals for all functions and processes.

• Promote metrics based performance.

• Promote participation of all stakeholders.

• Establish risk management culture.

• Establish a PM core competency.

OPTIMIZING• Proactively

prevent defects.

• Implement a continuous improvement strategy.

• Achieve high project success rates.

Tactical Strategic

PMO OBJECTIVES DURING MATURITY STAGES

Ad Hoc• Discourage

"Under the Table" or Untracked Work

CONSISTENT• Review progress

through Weekly / Monthly Checks

• Provide general support

• Assist with Project Planning

• Enforce Project Standards

• Strengthen PM Skills (Coach, Mentor, Train)

INTEGRATED• Identify

overlapping projects

• Performed troubed projects rescue / abandonment / postmonement

• Monitor project scope creep

• Develop advance processes (Risk Management, SCope Management)

• Help PM's too secure Buy-In and Support from Managers and Executives

• Leverage Historical Lessons Learned

COMPREHENSIVE

• Manage project prioritization and reprioritization

• Resource capacity planning

• Improve ROI• Collect Project

Data in Consistently used PMIS

OPTIMIZING• Actively manage

and enhance processes and procedures

• Achive high project success rates

We are what we repeatedly do.Excellence then, is not an act, but a habit.

Thank You