project management office (pmo) implementation february 7, 2011
TRANSCRIPT
Project Management Office (PMO)Implementation
February 7, 2011
Overview
What is a PMO
Starting a PMO
Types of PMO’s
PMO Roles and Responsibilities
Executive Buy-In
PMO Best Practices
Sources and Suggested Reading
Reference Material
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What Is a PMO?
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Project Management Office (PMO)
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PMO Responsibilities
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Benefits a PMO Will Offer
PMO’s are/can…
Provide qualified project managers (resource pool)
Provide support personnel to assist project managers
Allow project managers to pool their skills and knowledge
Help project managers to develop professionally
Recommended for organizations with many project managers
Provide consulting-type services and products to its constituency
If a PMO is not used…
With several projects under way, project managers are probably not learning from one another
PM’s are probably not sharing best practices
PM’s are not challenged to continuously improve their skills
Project managers can be overtly influenced by line managers
Project managers scattered across an organization with no common bond are significantly handicapped
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Starting a PMO
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FACTS
Executives must deliver in two key areas; ongoing operational results and improvement efforts.
Functional managers are evaluated by senior management, peers, and subordinates for their ability to make things happen quickly.
Many projects involve multiple departments and functional areas.
Each organizational unit has its own language, its own standards, its own project management techniques or lack thereof.
Many central project management coordination units have sprung up in the last few years.
Today, there is estimated to be over 50,000 such organizations in the U.S. alone.
FACTS
Executives must deliver in two key areas; ongoing operational results and improvement efforts.
Functional managers are evaluated by senior management, peers, and subordinates for their ability to make things happen quickly.
Many projects involve multiple departments and functional areas.
Each organizational unit has its own language, its own standards, its own project management techniques or lack thereof.
Many central project management coordination units have sprung up in the last few years.
Today, there is estimated to be over 50,000 such organizations in the U.S. alone.
Starting a PMO
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PMO Requirements: PMO value must be measurable to become sustainable.
If you cannot measure, you cannot control and if you cannot control, you cannot manage.
The PMO must be aligned with the interests and goals of the organization to sustain itself.
PMO Requirements: PMO value must be measurable to become sustainable.
If you cannot measure, you cannot control and if you cannot control, you cannot manage.
The PMO must be aligned with the interests and goals of the organization to sustain itself.
•PMO has responsibility for educating the organization it serves; focus is on project benefits
•PMO must use metrics to illustrate contributions
• PMO should survey its customers routinely to verify it is adding value
•PMO has responsibility for educating the organization it serves; focus is on project benefits
•PMO must use metrics to illustrate contributions
• PMO should survey its customers routinely to verify it is adding value
PMO focus is on portfolio management of:
Project investments
Resources
Strategic objectives
The Next Generation PMO
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Traditional PMO Next Generation PMO
Focus mostly on tactical issues Focus on strategic and cultural issues
Science of project management Art and craft of project management
Views organization as a "complex machine"
Views organization as a "complex ecology"
Emphasis on monitoring and control
Emphasis on collaboration
Provides tools similar to a precise "map" to follow
Provides tools similar to a "compass" that show the direction
Internal process focused Focus on end products, customers and outcomes
Process driven Business driven
Standard (heavy) methods and practices
Adaptable and flexible (agile) methods and practices
Based on rules; follow rules Based on guiding principles; follow rules and improvise if needed
Defined, repeatable, managed and optimized practices
Adaptive and innovative practices
Focus on efficiency Focus on effectiveness and innovation
Process leadership Thought leadership
Heavy management and governance
Balanced management, governance and leadership
Table courtesy of J. Duggal, Projectize Group, http://www.projectize.com.
What Does a PMO Look Like?
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Typical starting point for a PMO can be three project managers, a team leader, and five team members (also called PMO support personnel).
Typical starting point for a PMO can be three project managers, a team leader, and five team members (also called PMO support personnel).
PMO Project Starter Services…
Provide well-trained and competent project managers to run key projects.
Provide project management consulting.
Review contract proposals from vendors.
Sponsor project management education.
Develop, document, and maintain project management best practices.
Conduct project culture training.
Perform project reviews.
Perform post-project reviews.
Ensure that new projects apply lessons learned.
PMO Project Starter Services…
Provide well-trained and competent project managers to run key projects.
Provide project management consulting.
Review contract proposals from vendors.
Sponsor project management education.
Develop, document, and maintain project management best practices.
Conduct project culture training.
Perform project reviews.
Perform post-project reviews.
Ensure that new projects apply lessons learned.
PMO Models
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Early on in PMO history, the Gartner Group identified three PMO models as flourishing:
• "Project Repository Model”
• "Project Coach Model"
• "Enterprise PMO Model"
There is a fourth model, called the "Deliver Value Now Model," that should not be ignored.
PROJECT REPOSITORY MODEL
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PROJECT COACHING MODEL
PROJECT COACHING MODEL BENEFITS
• Assumes a willingness to share some project management practices across functions and uses the PMO to coordinate the communication. • Best practices are documented and shared and project performance is monitored actively. • Results are used to raise enterprise performance and train inefficient or new project managers.
• Acts as trainer• Consultant or mentor• Source of information on project processes• Often helps in project setup and post-project reviews
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ENTERPRISE PMO MODEL
ENTERPRISE PMO MODEL BENEFITS
• The most permanent, consolidated, organizational model and concentrates project management within the PMO.• The mission of the EPMO implies direct management or oversight of projects. • All project managers are staffed within the shared service and consigned to projects as needed. • The EPMO acts as a contracted project manager, assessing scope, allocating resources and verifying time, budget, risk, and impact assumptions.
• Many firms have since learned that a consultative approach aimed at increasing project throughput and reducing project durations requires teamwork between the EPMO and the project teams.• The idea of a PMO owning the project managers has some significant potential negative effects.• The project management expertise and standards may not filter through to functional areas. • When significant portions of the projects are part of one functional area, that functional area may not feel as committed. 14
"DELIVER VALUE NOW" MODEL
"DELIVER VALUE NOW" MODEL BENEFITS
• Puts organization goals first. • Improvements in PM methodology are viewed as a means to an end, and not the end in itself. • A holistic approach, embracing methods, skills and strategy that views project management as one piece of a bigger puzzle.• Enables consistent motivation for the entire organization to seek out accelerated project deliveries.• A stronger, more balanced project portfolio and better project performance.
• A strong, well-balanced project portfolio that identifies up-to-date project workload, sponsorship, tactical progress, health status and current data gaps.• A monthly "plan and forecast" that identifies portfolio opportunities and threats, top issues and risks, projects over/under budget summary.• A project prioritization model for all portfolio projects based on ability to form a Governance Board to direct model creation.• Governance Board setup and/or modification enables the force-ranking of the portfolio of projects.• Project management training, coaching, and mentoring based on need.
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DETERMINING THE PMO MODEL FOR YOUR ORGANIZATION
Questions you should ask…
1. Who will initially be the main customers of the PMO?
2. What is the maturity level of the project management community?
3. How well does the Executive Team work together for the good of the enterprise?
4. Where is the greatest pain?
5. Will the PMO be able to deal with the intensity of missed delivery expectations from the executives and all of its implications?
6. Will the PMO be able to rescue troubled projects critical to the business? What if it cannot?
7. Will the PMO be funded sufficiently and supported by the executives to meet the value opportunities and threats?
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PMO Roles and Responsibilities
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PMO EXECUTIVE
PROJECT MANAGEMENT TOOL MENTOR
PROJECT PORTFOLIO MANAGER
RESOURCE PORTFOLIO MANAGER
PROGRAM MANAGER
PROJECT MANAGEMENT MENTOR
PMO Services Overview
As a PMO begins to define its objectives, it needs to consider what services it will provide to meet those objectives.
It must also assess when in its implementation schedule it will provide these services.
The services that are required dictate the various roles and responsibilities.
Each service provided will require some level of staff support.
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PMO Services
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PMO Services
Portfolio Management
Consulting & PMO Services Training Admin./H.R. Archives
Project portfolio information
Project rescues Methodology Project accounting
Information repository
Asset, strategic objectives and resource portfolios
Project acceleration, assessments, threats and opportunities, auditing, risk management
Tools Operations planning and forecasting
Data integrity and security
Executive reporting and governance
Project management processes, tools, methodologies
Project management basics
Data collection and report distribution
Project document library/knowledge management
Prioritization techniques
Mentoring Certification Asset tracking Lessons learned
Staggering of projects
Help Desk Teamwork Materials and supplies
Closed contracts
Strategic resource management
Web portal/information management
Advanced project management
Contract and change management
Analysis Resource recruiting
Scheduling software
Metrics, bonuses, career path, rewards and recognition
Customer interface
Customer interface Customer interface
Customer interface
Customer interface
Executive Buy-in of The PMO
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A PMO must deliver on its promise through four major processes:
Choosing the right project mix; a new way of strategic planning
Linking the executive team's strategies to current and planned projects
Managing the project portfolio effectively
Measuring the PMO to improve project performance relative to the executives' strategic goals
A PMO must be able to help executives with execution of strategy, as determined by the project mix and flow, or the PMO will not achieve sufficient level of value to sustain itself.
Executives Embrace a PMO when…
PMO in instrumental in helping the executives meet the goals on which they are measured
Projects are completed on Time, on Scope and on Budget Projects teams are Agile and project durations are shorter The impact of the PMO is clearly felt on both the top and
bottom lines of the organization Executives and managers throughout the organization feel
that they are measurable benefits of the PMO
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Elements of An Effective PMO
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PMO Implementations fail when…
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PMO did not define its value proposition.
PMO is not perceived as impacting project delivery abilities.
PMO is seen as a threat — most often too authoritative.
PMO does not have buy-in from the senior management.
PMO is too low in the management reporting.
Project Management Overhead — the bad PMO acronym.
PMO is micromanaging — trying to control every project directly.
Some Final Thoughts on starting a PMO…
Establishing a PMO that brings recognized value in the first six months of its existence is critical.
Recommendation to go beyond the original models.
As you plan the PMO implementation, seriously consider establishing visible value to senior management from the get-go.
Go after the low-hanging fruit that helps everyone win and the PMO will be o its way.
Avoid being perceived as sitting in the "Ivory Tower of Project Management Excellence".
Build a PMO that will "Deliver Value Now."
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Sources and Recommended Reading
Advanced Project Portfolio Management and the PMO: Multiplying ROI at Warp Speed ~Gerald I. Kendall and Steven C. Rollins, J. Ross Publishing © 2003
The Enter Prize Organization: Organizing Software Projects for Accountability and Success ~Neal Whitten, Project Management Institute © 2000
Improving Your Project Management Skills Larry Richman, AMACOM © 2006
Building Project Management Centers of Excellence ~Dennis Bolles, AMACOM © 2002
Introduction To Project Management ~Kathy Schwalbe, Thomson Course Technology © 2006
“In Common” ~ Bud Baker, Ph.D., PM Network magazine, September 2007
“Definition Impossible” by Bud Baker, Ph.D., PM Network magazine, June 2007
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Next Steps Overview
I. Executive Summary/Proposal Letter with these sections:
I. Business Case
II. Scope
III. Approach
IV. Risk
V. Cost and Benefits
VI. Timeline
II. To successfully gain executive buy-in meet functional executives to assess the current environment
III. Executive Presentation
IV. The problems in managing projects
I. The cost of the problems
II. The connections between the root problem and the executive problems
III. Simulate one of the problems to show the executives the impact
IV. The PMO Solution
V. Discussion
VI. Conclusion26
PMO Executive
RoleResponsibilitie
s Value Required Skills When
• Leads the development of the PMO value proposition• Leads the PMO strategically• Key to gaining organization-wide support.
• PMO charter development and implementation• Ensuring all PMO activities are driving bottom line value• Buy-in and involvement of executives • PMO staffing• Approval of monthly forecast and work plan report• PMO staff retention• Approval authority on project mgmt. contracts
• Measured by how much documented value is brought to the organization
• Executive oriented • Project management professional• Has the ability to work well with all levels of the organization• Cross-functional experience with project portfolio management• Consulting background
• This is the first person hired into the PMO.
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Project Portfolio Manager
Role Responsibilities ValueRequired
Skills When
PMO Career Path
• Leads and maintains the development of the project, resource, asset and strategic objective portfolios• Reports to the PMO executive• Financial and what-if analysis.
• Analyzes the project portfolio and makes recommendations to decision makers• Balances the portfolio• Evaluates and helps to implement processes to improve project flow• Publishes the monthly forecast and work plan report• Manages the development and definition of the prioritization model• Can be backup to the PMO executive
• Same measurement as PMO executive• Improvement in ROI in project portfolio.
• Ability to report bad news• Ability to work well with all levels of the business• Portfolio management experience for project portfolios > $25 million.
• Part of the first group of people hired into the PMO
• PMO Executive
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Project Management Mentor
Role Responsibilities ValueRequired
Skills When
PMO Career Path
• Supports project rescues• Works in the field assisting project teams• Trains project managers• Conducts project assessments• Reports to the PMO executive.
• Provides coaching and mentoring services to the project management community on top portfolio-related components• Works with project sponsors and project managers to identify project delivery opportunities and threats.
• Same measurement as PMO executive• Monetarily identified in overcoming project team threats and opportunities
• Ability to work well with all levels of business• Consultative in nature and duties• Certified Project Management Professional (PMP)• Complete grasp of PMI PMBOK® fundamentals• Ability to work in high stress situations
• Part of the first group of people hired into the PMO
• PMO Executive• Project Portfolio Manager
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Project Management Tool Mentor
Role Responsibilities ValueRequired
Skills When
PMO Career Path
• Provides technical leadership, coaching and mentoring on all PMO tool utilization• Reports to the Project Management Mentors
• Ensures the integrity of all data captured through the supported PMO tools• Responsible for the competence of all project managers, resource managers and team members in PMO tools and applications• Helps with project rescues in rescheduling work loads in the scheduling tool.
• Same measurement as PMO executive• Data integrity and completeness
• Expert in scheduling tools• Quick learner on software packages• Ability to work well with all levels of the business• Complete grasp of PMI PMBOK® fundamentals• Ability to work in high stress situations
• Part of the first group of people hired into the PMO
• Project Management Trainer• Project Management Mentor
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Resource Portfolio Manager
RoleResponsibiliti
es ValueRequired
Skills When
PMO Career Path
• Oversees resource portfolio, including strategic resources• Works with Project Portfolio Manager to help balance the portfolios• Seeks to implement resource portability
• Full and correct utilization of the organization's strategic resources• Tracks resource utilization trends in alignment with portfolio objectives• Assists project management community in locating just-in-time resources.
• Same measurement as PMO executive• Utilization and throughput per week of the organization's strategic resources• Primary PMO executive measurement: to reduce delays caused by unavailable non-strategic resources.
• Ability to work in high stress situations with project team partners• Strong negotiation skills.
• Part of the second group of people hired into the PMO
• Project Portfolio Manager
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Methodology Specialist
RoleResponsibiliti
es ValueRequired
Skills When
PMO Career Path
• Works with project teams in the application of the project management methodology
• Assesses team's methodology usage for method compliance and associative risk management for all key projects• Works with Project Management Mentor to identify and overcome obstacles and resistance
• Same measurement as PMO executive• Percentage of project management community claiming that methodology is worthwhile
• Strong background in PMI/PMBOK® concepts and their application• Ability to teach concepts to work teams• Certified as a Project Management Professional (PMP®)• Able to work with business sponsors and their project teams in project startups.
• Part of the second group of people hired into the PMO• Brought in early if the work environment has very low project management maturity
• Project Management Mentor• Trainer• Resource Portfolio Manager
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Project Management Trainer
RoleResponsibiliti
es ValueRequired
Skills When
PMO Career Path
• Works with project teams, functional units and other organizations to provide and arrange project management training
• Teach project management basic and advanced concepts
• Same measurement as PMO executive• Agreed upon financial impact of the training, signed off by sponsors or functional executives.
• Professional training experience
• Part of the second group of people hired into the PMO• Brought in earlier if the work environment has low project management maturity
• Methodology Specialist• Project Management Mentor
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Data Administrator
RoleResponsibiliti
es ValueRequired
Skills When
PMO Career Path
• Constructs the monthly forecast and work plan report• Document librarian• Supports all PMO role players• Provides primary support for the portfolio manager
• Ad hoc reporting; PMO data repository processing and integrity• Review of portfolio project status reports and schedules for data completion
• Same measurement as PMO executive• Customer satisfaction with information (not data) provided.
• Ability to work in high stress situations with project team partners
• Should be part of the first group of people hired into the PMO
• Help Desk Specialist• Methodology Specialist
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