Advanced Project Management Office:

A Necessity for Todays Global, Complex Projects

Dr. Ginger Levin

Project Management ConsultantAdjunct Professor University of Wisconsin-PlattevilleLighthouse Point, Florida, USA954-783-9819954-783-9235 (fax)ginlevin@aol.com

Presentation OverviewMotivations to Establish a PMOPMO Functions Project and EnterpriseDetermining Functions to PerformPMO Implementation

Definition of a PMOThe Project Management Office is:The organizational entity with full-time personnel to provide a focal point for the discipline of project managementIt may be called a:Project OfficeProject Support OfficeProgram Management OfficeProject Management GroupProject Management Center of ExcellenceDirectorate of Project Management

The Increased Importance of a PMOThe functions of the PMO have evolved:It is not just an organization to provide support for scheduling and monitoring activities on a single projectIt is becoming an essential component for the future success of the organizationIt provides services and organizational focus in core and supporting areas of project management

Reasons to Establish a PMO The PMO helps to manage the organizations future through: An emphasis on ensuring consistency and uniformity in projectsAn organizational desire to excelAn enterprise focus on improvement in project management competencyA reduction in project overrunsAn increase in the delivery speed of projectsAn increase in customer satisfaction

PMO GoalsSet Industry StandardsShow Higher Corporate ProfitsIntegrate Project Management into the OrganizationImprove Divisional Project Management Performance Have Competent and Productive Project TeamsImplement Consistent, Formalized Project ManagementFinish this Project on Time/BudgetFunding and CommitmentOrganizational Recognition

Presentation OverviewMotivations to Establish a PMOPMO Functions Project and EnterpriseDetermining Functions to PerformPMO Implementation

PMO FunctionsProject-FocusedConsultMentorAugmentEnterprise-OrientedPromoteArchivePracticeTrain

Project-Focused FunctionsAugmentFill the gaps in team resourcesMentorWork side by side with novice team membersConsultProvide occasional validation and assistance

Project Areas of AssistanceStandards for managing projectsStandardized report formsPM softwareProposal development methodologyProject start-up assistanceCharters and scope statementsKickoff meetingsProject risk assessmentProject visibility roomProject requirements changesProject workbook or libraryTimesheetsAdministrative assistanceProject reviewsIssue resolutionProject closeout support

Enterprise-Oriented Functions Enterprise objectives have more long-term effects and include: Promoting consistency and uniformity in project managementArchiving project performance dataProviding a centralized point of reference for the project management practiceImparting specific skills and knowledge through training to project professionals

Enterprise-Oriented FunctionsPromotePM culture advocateArchiveClearinghouse for project performance informationPracticeBest practices and state-of-the-art procedures and guidelinesTrainOngoing training in PM

Enterprise Areas of PerformanceEstimatingProject selectionData integrationReward and recognitionProject auditsCommunication facilitationCustomer satisfaction

Presentation OverviewMotivations to Establish a PMOPMO Functions Project and EnterpriseDetermining Functions to PerformPMO Implementation

Organizational Goals and PMO Functions The organizations goals affect the functions that the PMO will perform: The PMO can change the direction of the organization to one of enterprise project managementIt also can primarily assist individual projectsIt can serve as the interface between the project managers and others in the organization

The PMO and Maturity LevelsLevel 1 Supports One ProjectLevel 2 Supports Several Projects in a ProgramLevel 3 Supports a Division/DepartmentLevel 4 Supports the Entire OrganizationLevel 5 Supports Business Strategy and Enterprise Resource Allocations

The PMO at Level 5 Functions of a PMO according to PMIs PMO SIG:The organizational structure, methodologies, processes, procedures, controls, tools, people, training, and other components serve to integrate existing projects, manage the portfolio, control functions, and successfully deliver the organizations business objectives

PMO ActivitiesMature OrganizationCrisis Management ModeEnterprise Functions

Presentation OverviewMotivations to Establish a PMOPMO Functions Project and EnterpriseDetermining Functions to PerformPMO Implementation

Phase 1 - Define the Goals for the PMO Assign a lead for the initiativeThis individual will require the skills and ability to communicate and effectively negotiate with senior managementIdentify organizational constraints and assumptionsDefinitions and terms to establish a common languageBusiness processes and procedures that all projects must useOrganizational and project metrics

Phase 1 - Define the Goals of a PMOContinued To define the goals:Gather problem analysis information with a focus on business needsDetermine the root causes of troubled projectsAssess results from maturity assessmentsAnalyze the gapsThen list the goals and the prioritized business needs

Phase 2 Obtain Organizational SupportCreate a Communications Plan to determine:Is the PMO of sufficient importance that a formal announcement by the sponsoring executive is needed?What type of communication media describing the PMO should be used?Are there any organizational entities that will not be receptive to having a PMO, the functions it provides or the authority it exercises? What special orientation is needed for them?Should there be a meeting with all organizational entities? Individually or as a group?

Phase 2 Obtain Organizational Support ContinuedCreate a presentation for an orientation that addresses:Why is a PMO being created?What are the objectives of the PMO?What benefits will the PMO provide?How will the PMO and organizational entities interact?What is the frequency/schedule for the interactions?What will organizations need to provide to the PMO?What will the PMO provide to organizational units?

Phase 2 Obtain Organizational Support ContinuedPrepare a PMO implementation plan and develop organization-specific PM procedures:In all areas of project managementFor all divisionsUse the plan as a basis for:PromotingTrainingConsultingMentoringAugmentingDisseminatingArchiving

Phase 2 Obtain Organizational SupportPresent a realistic schedule for PMO results:Project-level PMOThree Months One YearDivision-level PMOOne Three YearsEnterprise-oriented PMOThree Seven Years

Phase 2 Obtain Organizational Support ContinuedDevelop implementation milestones:Metrics for success evaluationMilestones and metricsShort term, three monthsMid term, three six monthsLong term, beyond six months

Phase 2 Obtain Organizational SupportWrite a Charter for the PMO including:Goals and objectivesResponsibilities/authorityAssumptionsConstraintsMajor risksMajor milestonesApprovals

PMO Charter

Phase 2 Obtain Organizational Support ContinuedReach agreement and gain commitment:Provide an initial estimate of the PMOs budgetEstimate the number of beneficiaries and organizational coverageOutline the schedule and tasks needed to set up the PMORecommend the actions the sponsoring executive will need to take to support the effortSee whether a formal presentation and a special announcement are required

Phase 3 Define the FunctionsIdentify the basic functions of the Project Management Office:Project-focused functionsEnterprise-oriented functionsFunctions may be phased in over time

Phase 3 Define the FunctionsContinuedDefine the scope (limits) of the PMO with options such as:All organizational units or only certain unitsAll programs and projects or just a subset of certain projects, e.g. just high risk, high budgetThe complete project life cycle or only support of concept phase and business case but not implementation

Phase 3 - Define the Functions ContinuedDecompose the items identifiedBegin with a set of initial functions that will solve the highest priority problems and contribute most to the business improvements expected and that require the least investmentSet reasonable expectationsAfter the PMO is operational and gains support, then expand its scope

Phase 4 DefineRoles, Responsibilities and InterfacesDefine the roles and responsibilities of the PMO:Vice President of ProjectsPMO DirectorPMO Staff MembersDetermine roles and responsibilities relative to:Project ManagersFunctional Managers

Phase 4 DefineRoles, Responsibilities and Interfaces ContinuedDefine the interfaces with other organizational entitiesList those entities with which the PMO will interact:Internal organizationsExternal organizationsFor each entity above identify:Direction that will be received from the entityDirection that will be given to the entityInformation that will be provided to the entityInformation that will be received from the entity

Phase 4 Define Roles, Responsibilities and Interfaces ContinuedDetermine where in the organization the PMO should report:List advantages, disadvantages, challenges and critical success factors associated with each optionDiscuss and negotiate options with the sponsoring executive

Phase 4 Define Roles, Responsibilities, and Interfaces ContinuedDetermine the PMO placement

Phase 5 - Identify the PM Processes and Tools Describe internal and external project management processes and tools the PMO will use:

Internal PMO FunctionsFunctionProcessesToolsRisk ManagementQuality AssuranceChange ManagementSchedule ManagementFinancial ManagementSupplier Management

Phase 6 Estimate the ResourcesSeveral techniques can be used:A top-down or analogous estimate appropriate when comparing to a PMO with another unit of similar scope and functionA bottom-up estimate based on the functions and interfaces to provide the most accurate estimateAn affordability estimate, based on the overall budget available, provides a limit as to what can be provided with a limited budget

Phase 6 Estimate the ResourcesContinued Promote Archive Practice T rain Consult Mentor AugmentScope-------Cost-------Quality-------Schedule-------Risk -------Contract-------Integration-------Reporting-------Communications-------Team Relations-------Client Relations-------Vendor Relations-------Cost of the infrastructure for:

Phase 6 Estimate the ResourcesContinuedConsider the Organizations Maturity Rating:

Phase 6 Estimate the ResourcesContinuedDetermine Project Performance Costs:

Phase 6 Estimate the ResourcesContinued

PMO Cost EstimatesLaborEstimated based upon functions to be performed, interfaces and processes and tools.Labor costs by monthTravelWhere there are geographically-dispersed projects, travel may be required. Identify all locations where travel is anticipated, the number of trips to make, length of trips and the number of individuals making the trips.Travel costs by monthFacilitiesFacilities include costs for use of office resources or costs for set up of home offices. Furniture, telephone, and computer connections make up the majority of this budget item.Startup facility costsRecurring monthly costsTools/ProcessesThis category includes hardware costs, software, site license fees, etc.Startup facility costsRecurring monthly costs

SuppliersFor services of subcontractors or other outsourced entities.Startup facility costsRecurring monthly costs

Phase 7 - Get Budget and Approval to StartObtain executive approval:Convince the decision-makers based on sound research as outlined in the previous phases:Be thoroughly prepared with a complete knowledge of your planning dataAnticipate questions and be prepared to defend your logicFinalize operating procedures:Include documentation of the outputs from the previous phases that is approved by the stakeholders

Phase 8 Staff the PMOAcquire the individualsStart with a understanding of the functions to be performedEnsure staff have expertise to gain early confidence and acceptanceOrient and train the individuals to the:OrganizationBusiness processesPMO objectives, plans and success factorsFunctions to perform and tools to use

Advanced Project Management Office:

A Necessity for Todays Global, Complex Projects

ReferencesAdvanced Project Management Office, by Parviz F. Rad & Ginger Levin, CRC Press, 2002 Achieving Project Management Success Through Virtual Teams, by Parviz F. Rad & Ginger Levin, J. Ross Publishing, 2003Assuring Project Success With Metrics-Based Management, by Parviz F. Rad & Ginger Levin, In PreparationPeople Skills for Project Managers, by Steven W. Flannes & Ginger Levin, Management Concepts Press, 2001Project Estimating and Cost Management, by Parviz F. Rad, Management Concepts Press, 2002

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