Project Management Office (PMO) Charter. Enhanz Pte. Ltd.

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1 Project Management Office (PMO) Charter for Enhanz Pte. Ltd. Version 1.0 Prepared by Enhanz Consulting PMO Lead I

2 Document Version History Version Date Description of Changes Author Approver /10/2012 Charter Creation PMO Lead Document Executive Sponsor Name Date Organization François Picard Managing Director Enhanz Consulting II

3 Table of Contents Document Version History... II Document Executive Sponsor... II Executive Summary... IV Introduction... V PMO Justification... V PMO Vision... VI Project Success... VI PMO Mission... VI PMO Objectives... VII 1. Establish & Facilitate Project Selection.... VII 2. Encourage a Performance Focused Project Environment.... VII 3. Deliver Successful IT Projects... VIII 4. Build Project Management Discipline & Professionalism... IX 5. Keep Customer s Management Team and Project Management community informed.... IX 6. Serve as authority on Project Management methods & practices.... X Critical Success Factors... X PMO Metrics... XI PMO Staffing... XII PMO Organizational Structure... XII PMO Stakeholders... XIII PMO as a Learning Organization... XIV III

4 Executive Summary Enhanz Pte. Ltd. Project Management Office (PMO) is a service organization created for the specific purpose of supporting Enhanz customers technology programs. The mission of this PMO can be declined in two main axes: Secure and manage technology programs to a successful conclusion. Provide consistent Project Management methods to organization we serve. In order to achieve this mission, the PMO has four key objectives: Deliver successful IT Projects Provide Project Management services and oversight for select IT projects. Contribue to Project Management Excellence among Customers' teams Keep Customers' Management Team and Project Management community informed Report to Customer's IT Project Management authority Mentor, train and guide project teams as they learn then adopt PM best practices. Provide regular updates ranging from monthly status of company projects to an annual report on the organization's progress at institutionalizing PM practices. Following customer's standards, improve PM methodologies and tools, and be the resident advocate and model for good Project Management practice Through firm sponsorship from our Customer s IT Department and supervision of our CTO, the PMO gains: Authority it needs to promote Customers organizational and technological change effectively. Independence that can sustain objectivity. Oversight that can keep the projects aligned with our Customer s business strategy. Legitimacy as it fosters an effective, enterprise approach. The PMO has three sources of staff: Enhanz Consulting Project Managers. Direct appointment of existing Customer s staff into the PMO. Temporary assignments from Enhanz Business Partners (report to PMO via dotted line). The PMO operates under this guiding principle: The success of our PMO is derived exclusively from the success of its customers. IV

5 Introduction In order to administrate its activity and to provide a robust structure to administrate projects for its Customers, Enhanz Pte Ltd has created an Enterprise Project Management Office. The purpose of this charter is to establish agreement on key aspects of this PMO. This document defines the purpose, vision, mission and functions of our PMO. It states who the PMO s sponsors and stakeholders are, the services that it offers and the staffing and support structures required to deliver those services. This charter is a statement of the scope of operations of Enhanz Consulting PMO. PMO Justification The core mission of Enhanz Pte Ltd being to manage and secure technology projects, the establishment of a PMO is a pre-requisite to meet or exceed our Customers quality standards. The key objectives of this PMO include: Securing delivery dates. Managing the costs. Quality of deliveries. Enhanz Pte Ltd. s purpose in establishing the PMO is to provide means for enabling our Project Managers to achieve the best regarding those three objectives. The ultimate goal is to increase our customers satisfaction towards the projects delivered. V

6 PMO Vision Successful Technology Projects. Every Time. Project teams and Project Managers are encouraged to be creative, adopt new approaches, expand their skill set and take appropriate levels of risk in their pursuit of this Vision. (See section below PMO as a Learning Organization ) Project Success Based on input from Enhanz executive management, the PMO considers a project to be a complete success when the following statements are true: Pre-defined Business Objectives and Project Goals were achieved or exceeded. A quality software, platform or service is fully implemented and deployed. Project delivery met or beat schedule and budget targets. There are multiple winners: Project stakeholders are proud of the work achieved. The customer s expectations are reached or exceeded. Management has met its goals. Projects results helped building a good reputation. Methods are in place for continual monitoring and evaluation. PMO Mission The mission of Enhanz Pte Ltd PMO is to provide a solid foundation for our Customers IT Programs by creating an environment of measurable, disciplined Project Management professionalism where: Project success is the norm. Project teams are proud of their work. Project teams are rewarded for high levels of performance. Customers reap the benefits of a carefully planned investment. The PMO operates under this guiding principle: The success of our PMO is derived exclusively from the success of its customers. VI

7 PMO Objectives For each objective, the PMO will develop one or more SMART 1 target(s) against which the performance must be evaluated. PMO Performance will be reviewed quarterly. SMART targets will be evaluated and renewed annually. PMO governance and Customer management will agree upon the validity and usefulness of all targets. Primary PMO objectives are: Establish and facilitate project selection criteria aligned with Customer s business objectives and direction. Encourage a project environment focused on performance and execution. Deliver successful projects. Build Project Management discipline and professionalism among Enhanz staff. Keep Customer s Management Team and Project Management community informed. Serve as the Enhanz authority on Project Management methods and practices. The guidelines below can be derived from this list of primary objectives: 1. Establish & Facilitate Project Selection. Enhanz Project Management will work with Customer s Executive Management and Finance to establish quantified criteria for the selection of projects. The scope of the project will also be challenged, by comparing the value it brings compared to the investment required. This way, most projects will be split in phases, which can be implemented promptly and immediately bring value, from a business standpoint. The criteria will be ROI-based and aligned with Customer s overall business objectives regarding Return on Investment. 2. Encourage a Performance Focused Project Environment. All projects for which Enhanz Pte Ltd PMO is accountable for successful delivery will be regularly monitored and measured for performance. All projects will be encouraged to regularly self-monitor performance and Project Managers will share these performance measurements with Customer s Project Sponsors and Stakeholders. At all stage of the Project, Enhanz Project Managers must provide a clear visibility on the progress to Customer s Management, through a formal presentation for each Project Milestone and regular performance reporting. 1 SMART: Specific, Measurable, Attainable, Result-oriented, Time-delimited. VII

8 3. Deliver Successful IT Projects Enhanz PMO collaborates directly with Customer s to manage the IT Project portfolio: Reporting to Customer s IT Strategy Management team, assist in development and articulation of Customer s technology strategy. Interact with our Customer s PMO (if applicable) or directly with IT Strategy Management team to make the IT Project-selection process successful. Maintain and publish a master IT projects schedule, including critical milestones. Assist IT and Customer s IT Strategy Management team with project resource management. Warn Executive Management of IT projects at risk and provide recommendations to mitigate it and secure the project roadmap. Perform capacity planning between Enhanz pool of talents and temporary external resources (through Enhanz partners network) in order to make optimal use of its resources. Regularly, as agreed, monitor and measure project performance. Work with Customer s Project Sponsor to make adjustments to under-performing projects. Enhanz PMO contributes to its Customer s IT Project Management, and is accountable the successful delivery of projects it has been entrusted for. The PMO directly manages projects on request: Customer s Project Sponsors make their requests to the PMO. PMO and Customer s IT Strategy Management team collaborate to decide where project resources should be allocated. Enhanz PMO provides Project Management services for the project. PMO is accountable for successful project delivery. PMO deals directly with the Sponsor and reports to Customer s IT Strategy Management team. PMO enforces its Project Management methodology and best practices on these projects. In addition, the PMO Quality Board: Performs quality audits on request. Performs risk audits on request. Provides Business Analysis services (e.q. Requirements Analysis and Prioritization, Joint Application-Development Project with Technology Partners) on request. VIII

9 4. Build Project Management Discipline & Professionalism Mentor 2 PMO project teams (and other project teams by request). Assist project teams in all phases of their projects from project definition to rollout. Train 3 Customer s Project Managers in a full range of Project Management topics. Create and maintain a Project Management Core Team with resources taken from Enhanz Talent Ecosystem who work as Project Managers on IT projects. Work with the team a means of building and sharing Project Management expertise. Work with Enhanz Customers and Partners in development of a Project Management Career Track. Recognize excellence in Project Management in accordance with a focused Reward and Recognition Program. Serve as honest broker on all issues brought forward to the PMO by Project Managers. Participate in the performance reviews of Project Managers who report to PMO on dotted line. Provide training to all levels of Customer s management so that the supervisors, middle managers and executives each understand their role in making projects a success. 5. Keep Customer s Management Team and Project Management community informed. Report to Customer s Executive Sponsor on: Enterprise Projects monthly Other Projects quarterly Special Projects upon request Metrics that measure PMO effectiveness annually Issues and Opportunities as they arise Under the direction of Customer s Executive Sponsor, provide regular reporting to the Executive Management Team. Maintain and publish a Lessons Learned knowledge base. Maintain the PMO Website. Serve as the technology-to-english translator for the Executive Body. 2 Mentor in such areas as: RFP Development Vendor and Partner Management Risk Assessment Issue Management Team Development Organizational Change Management 3 Training Formal Project Management classes In-service training elective (sponsored through Personnel and designed for each department) Special seminars and workshops Supervise fundamental Project Management training provided by a third party E-Learning sessions. IX

10 6. Serve as authority on Project Management methods & practices. Set Enhanz Project Management methodology and standards PMO works with an advisory group of Enhanz Project Managers to update and maintain the methods, practices and standards. Methods and Standards are posted on the PMO Website. Be the resident advocate for good Project Management practices in the organization. Select Project Management tools for organization-wide use. Serve as the official source of project templates and other PM tools. Critical Success Factors The following may be considered necessary steps Enhanz must take that help ensure PMO success: Implement a Reward and Recognition Program that specifically supports the Project Management process and achievement of project objectives. Enhanz Senior Management Team provides the PMO with unanimous, visible and vocal support. Introduce PMO functions in a phased manner. Enhanz Senior Management Team supports the process of Organizational Change. Managers recognize that groups and individuals will embrace the change in Project Management practice better than others. X

11 PMO Metrics Metrics should measure those aspects of PMO performance that are directly related to its Mission. On that basis, the following areas of focus can be used to judge PMO value: Are Enhanz projects more successful over time? Is there evidence that Enhanz Project Managers are taking a more professional approach toward project management discipline and practices? Are Enhanz Project Managers embracing best practices on their projects and results improving significantly? Are Customer s business objectives met by the Enhanz projects? Are these business objectives met through improvements in project performance and project success rate? In order to obtain these objective measurements, Enhanz PMO staff will develop or acquire appropriate instruments. Enhanz Senior Management will approve the instruments before they are implemented and used. Examples: Improvement in project success over time can be measured through decreases in schedule and budget variances. Customer Satisfaction Index can be used to measure how projects meet their targets. Project Management efficiency can be measured by quality and timeliness of project planning documents, accuracy of time and costs estimates, and effectiveness at managing risks. A team composed of staff from Enhanz PMO and Customer s Sponsors can perform the assessment. XI

12 PMO Staffing The PMO staffing, as agreed to by Enhanz Senior Management team, is dimensioned to serve the scope of projects under the responsibility of this PMO. Once fully implemented, the PMO has the following staff: Director (PMP) 1 Project Coordinator Project Managers Committee When required, the PMO will partner with external organizations to empower external resources: Business Analysts: Architects: Work with Customers Business Entities to capture the project requirements. Perform Requirement Analysis and Prioritization over the set of requirements captured. Support the Project Team in building the specs to address the set of requirements selected. Based upon the requirements captured and Customer s existing architecture, propose an architecture for the project which is robust, scalable and cost-effective. Promote principles of reusability and harmonious integration into existing IT legacy systems. Demonstrate the accuracy of the architecture proposed through prototyping key parts of the architecture. Technical Leaders: Perform a Cost Analysis for the Project, to be challenged by Business Analyst and PM. Build the specs to address the set of requirements selected with Project Team Are the interfaces between Technical Team and Project Manager. PMO Organizational Structure PMO reports to a PMO Governance Board consisting of Enhanz Senior Management team, Customer s Sponsors and the PMO Director. Through firm sponsorship from our Customer s IT Department and supervision of our CTO, the PMO gains: Authority it needs to promote Customers organizational and technological change effectively. Independence that can sustain objectivity. Oversight that can keep the projects aligned with our Customer s business strategy. Legitimacy as it fosters an effective, enterprise approach. XII

13 PMO Stakeholders Enhanz PMO regards the following as primary stakeholders: Stakeholder Relationship with PMO Expectation of PMO Enhanz Executive Team Member Executive Team Oversight A member of the PMO Governance Board who provides Senior Management Team oversight. PMO Director PMO Management A member of the PMO Governance Board in charge of administrating the PMO Customer Project Sponsor Project Sponsorship A temporary member in charge of providing guidance on Projects business objectives. Project Coordinator Projects Coordination A permanent member in charge of optimizing resources allocation to projects Project Managers PMO Reports PM reports to Project Sponsors on projects. PM Performance record is kept by PMO. Executive Member PMO Director Enhanz Talent Pool Project 1 Project Sponsor Project Manager Project.. Project Sponsor Project Manager Project n Project Sponsor Project Manager XIII

14 PMO as a Learning Organization The PMO models itself as a Learning Organization in its relationship with Enhanz Executive Management, Project Managers, Project Teams and Customers. A learning organization may be defined as an organization that facilitates the learning of all its members and continuously transforms itself to achieve superior competitive performance. Learning organizations have the following characteristics: Are adaptive to their external environment and continually enhance their capability to change/adapt. Develop collective as well as individual learning, and use the results of learning to achieve better results. Learn from both failure and success, understanding that finger-pointing and blame are detrimental. Link individual performance with organizational performance. Foster inquiry and dialogue, making it safe for people to share openly and take risks. Embrace creative tension as a source of energy and renewal. The PMO will express its Learning Organization orientation through many means, including: Positive use of Lessons Learned exercises to encourage continual improvements in projects. Maintenance of a Lessons Learned knowledge base to promote organizational learning. Encourage of cross-training and stretch assignments Promotion of continual learning and professional growth in Project Management. Working with staff to develop the ability to consistently select and execute projects with significant positive ROI. XIV

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