The Tactical Guide for Building a PMO. Implementing the PMO. Figure 13.1 PMO Build Schedule - PMO Implementation Process

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1 Chapter 13 Implementing the PMO Figure 13.1 PMO Build Schedule - PMO Implementation Process Task Name Resource Names -Step 6 Implementation PMO Deliverables/Processes Period (Chapter 13) Review the PMO Recommendations Document from Recommendation period. Review all PMO Decisions in the PMO Build Decision Table. Continue to work with Executive team and re-confirm support for Implementing PMO Obtain PMO Budget, or at least get an understanding on what your role is in the budget process +Implement PMO Business Management Area on Centralized Repository Site +Implement Core PMO Items +Hire PMO Team members This will include employees, vendors & contractors across all roles. +Implement PMO Training Including all Training Materials +Implement PMO Reporting +Implement PMO Processes +Implement Process Methodologies where applicable (Portfolio, Program, Project) +Select and Purchase PMO Tools (Portfolio, Program, Project) PMO Implemented & Ready for Ongoing Enhancements 1

2 Questions you should be able to answer after reading this chapter: 1. What are the three input items for implementing a PMO? 2. Why aren t all the steps required? 3. What is the most important step in implementing a PMO? 4. What role does budget play in the implementation process? 5. Defined in the table PMO Implementation Steps there were key steps noted, can you name the first four steps? The implementation phase of building a PMO is one of the most difficult components of the whole process. You are probably wondering where to start. It is understandable and very common to have doubts and questions at this point. So far, we covered all the components of building the PMO, or what to look for when enhancing a PMO, but we haven t learned how to implement anything. That was by design; when you build a PMO, you need to get into the mindset of that particular component and there is a lot of research and things to accomplish when you are creating new ideas. Remember the concept: crawl, walk, run and how that concept is applicable to the build process? Well, it is applicable during the implementation phase as well. From a build process perspective, crawl to build the initial components of your PMO, and then walk to enhance the PMO components that you built, and finally run to apply best practices and procedures throughout your PMO. The running phase takes years to get to, but if you use PMO maturity model (covered in Chapter 5 of this book) correctly, it will guide you in determining when and how fast you mature different components of your PMO. Make sense? Great. Are you ready to move into the implementation phase now? You should be; you did a ton of work to get to this point, and your management team and your customers want you to start building this PMO. Bill s Thoughts: There are a couple of different ways that PMOs get started from an implementation phase perspective, and your management team will likely drive you hard to do this or do that. You need to be organized in how you approach this task; do not force the PMO. This is your chance to do things right, do not mess it up because you are under pressure to get things done quickly because your management team has pressure on you. Even if you are in the situation where you are enhancing an existing PMO, do not be tempted to force new processes or components because management is forcing you to do so. Go slow, be thoughtful, and think about what you are doing. Okay, let s get started. This is exciting, this is your chance to create a PMO from scratch using industry best practices and processes that have been tested and proven to work. It s also your chance to prove to management that you are the right person for the job. Embrace the implementation phase things are going to move quickly you are going 2

3 to try things that don t work, things that do work; the whole experience will be a learning process for you. Have fun, it will be a wild ride! 3

4 PMO Implementation Steps Implementing a PMO will be one of the most rewarding experiences of your professional career. You have spent hours reviewing and deciding on this or that component, and now you have the opportunity to build it in a real environment. As you move into the implementation phase, you start to implement all the decisions you made. This is also the time when you test various processes and procedures that might end up being used for years to come. That s exciting, but also scary because you need to get them right. So, approach this work carefully and slowly and make sure you bring the right people with you through the process. Bring in the people slowly and they will support you along the way. The key to running any successful organization, but especially one as political as a PMO, is the people. The same people you interact with every day can make or break your PMO. You will deal with all kinds of personalities people who are naysayers and others who support everything you do. These people will range from top-level management to individual team members. Regardless of whom you are dealing with, or what level they are at the company, you must build relationships with them especially if they are working in your PMO. It is your role to ensure people at all levels see value and support the PMO work at all times. It is not an easy task, and not everyone is successful, but it s one of the reasons you were hired. Part of your role as is to be part salesperson and part marketer, tooting your PMO s horn at all times. You need to continually show value of your PMO and work with people to gain their support. Ideally, you want everyone who is working in and with your PMO to be a true believer. You will know you have accomplished that when you hear that they are supporting and speaking highly about your PMO to others and when they continue to want to work with your PMO. There is no better feeling at that point because you know you are providing value, making a difference, and in the end, helping your organization. If you are aware of how important people are in your PMO and how those people can help your PMO be successful, you should be fine. You have to focus on it, though, and make an effort to build relationships. Tips & Best Practices Start Implementing your PMO by building a Microsoft SharePoint intranet site or other common repository site because it gives you a central location from which to drive everything. It is time to move into the implementation phase of the book and, ultimately, into the steps to build the PMO. This is the fun part, so let s get started and focus on building a world class PMO. One of the best places to start in a complex process like this is to reference the PMO Build Decision Chart that you have been using while reading chapters 4 through 12 and documenting the various PMO build decisions. Do you remember that chart and the questions at the end of each chapter? Did you document your decisions? You need them documented for this part of the process. Let s look at 4

5 Table 13.1 PMO Build Decision Chart again and review the information (or the template) that you completed. Table 13.1 PMO Build Decision Chart Chapter Example Row Chapter 4 PMO Build Decision Questions 1, 5 5 2,3,4,5 6 1,3,5 7 1,2,3. Decisions Made My PMO mission statement is, To drive excellence in the management and delivery of projects. MY PMO will focus on program & project management The P s of the PMO will represent program and project management. My PMO model is supportive, but will include parts of the directive model in terms of methodology processes. The categories of my maturity model include, and so on. Is your PMO Build Decision Chart handy and complete? Did you document your decisions for every chapter? If not, go back and do it now, because you need this information to move forward. If you did answer each question, you actually answered a huge list of different questions through the build process. That s right, you made a number of important decisions while going through the different build chapters and you took my recommendation and documented them along the way using the PMO Build Decision Chart. Great work, that s was half the battle. You should be ready to start implementing on all those decisions. Now, these are important decisions, but they are not all critical. Remember that during this process, just because you made a decision about what you were going to do, not every decision has to be implemented right away. Remember, we talked about it earlier: crawl, walk, run when you think about implementing your PMO build decisions, you are in the crawling phase. When you look at the decisions outlined in your completed PMO Build Decision Chart, look at them through that lens because some decisions are critical and some are necessary, but they are not all critical to implement when getting your PMO off the ground. The best example of this is the PMO mentoring program, although, a best practice and highly recommended, it is not critical you can wait some time before implementing a mentoring program in your PMO, it does not have to be done immediately. Okay, let s look at your PMO Build Decision Chart. Also, remember the PMO Recommendation Report you created in Chapter 4, How to Build a PMO? Have it handy too because that work and analysis plays a role in implementing the various components of your PMO. 5

6 PMO Implementation Process The PMO Build Decision Chart will be the key tool to help you move through the implementation process. Another process that you will follow during the implementation phase is focusing on the required components versus the nice-to-have components. Remember, not everything you documented in the PMO Build Decision Chart and the PMO Recommendation Report is required when you start implementing your PMO; some of it can wait until the PMO grows and matures. Do not try to implement everything at once, lay down the basic foundation and the key components first, and then grow and mature the PMO, add more processes, best practices, tools, templates, and so on. PMOs have their own peaks and valleys when they are being built. At the very beginning of the build and implementation process, everyone is very busy and there are lots of things occurring, this is known as the peak times. But, as everything settles down and matures (and it will), this is known as the valley times (slower times), your role will be to continually look for ways to improve and make processes and life easier and more efficient for everyone. For example, imagine how much easier it is for your management team to pull overall status of all the programs and projects in your PMO from an automated dashboard. s usually don t implement PMO dashboards right away, but rather mature into them as they grow their organization. They also would not take on the effort of implementing a dashboard during the peak or very busy times, they would be smart to wait until things slow down and the organization and management are ready for an automated tool like a dashboard. Critical Decisions for Successful PMO Implementation As noted, there are some decisions that you need to make when implementing your PMO. Let us spend some time and review those items now: Management support How well received, politically, is the PMO? PMO budget How much money or budget does the PMO have and do you have the authority to spend that budget? P s of your PMO Which of the P s (portfolio, program and project management) will you implement in your PMO? PMO model Which PMO model did you choose (directive, supportive, and coaching, and so on)? PMO roles What kind of staff (for example, permanent, vendors, contractors) do you need? PMO Implementation Steps It is time now to start the implementation process, but before we do, let s make sure you have the right things in place before you begin. Figure 13.2 PMO Implementation Input Deliverables outlines the top three input deliverables needed to start the PMO implementation process. Take a look and gather the materials now before moving onto the tactical implementation steps. 6

7 Figure 13.2 PMO Implementation Input Deliverables As illustrated, the following three key input items will drive the implementation of your PMO: Organizational factors What does the company and management team think about the PMO, and what are the political factors involved in making the PMO work at your company? Who supports it, who is against it, how bad is program and project execution today? These factors will impact what you initially will be able to implement for your PMO. PMO Build Decision Chart This chart includes the documented decisions you made while mentally going through the build process. These decisions made sense before you were actually building anything, but now at the time of implementation, you need to consider these decisions again and make sure your management teams supports your decisions. PMO Recommendation Report This is the report for areas of improvements and proposed changes you created early on during the assessment process when you were looking at the organization and determining or recommending changes to management. This report plays a role in the implementation process. There could be other various PMO 7

8 recommendations as well that also factor into this input that maybe outside of what is documented in the PMO Recommendation Report. These three items are important and key inputs for the next process: the actual PMO implementation steps. Let us now look at the steps in Table 13.2 PMO Implementation Steps to help you create the PMO for your company. In this table, you will see a REQ (required) column, which represents the need to implement that particular task at the time of implementing your PMO. Not all tasks are required, but review and check that column for each task. A Y/N indicator in the table signifies something you decided during the build process. Let us look now at the table and the steps to implement your PMO. Table 13.2 PMO Implementation Steps # REQ PMO Build Decision Implementation Possibilities 1. Y Obtain management support and approval Continually seek and work with your management team for PMO support and approval. There is no implementation without support. How you handle obtaining that support will be company specific, but ensure you collect and obtain that support before moving forward. 2. Y Obtain PMO budget The budget process will be reexamined and addressed during the implementation process just as it was during the build process. You may have a second ask for budget during implementation. 3. Y Implement the PMO centralized repository site 4. Y Implement a PMO mission statement Every PMO needs a mission statement that sets the guiding principles of the PMO. 5. Y Implement a PMO vision statement Every PMO needs a vision statement; select Implement this intranet or repository in a central location for your company. Make sure everyone can access the information and pull data from it. It is important to add the mission statement to all marketing decks, presentation materials, and your centralized repository for visibility. Add the vision statement to all marketing materials and the 8

9 # REQ PMO Build Decision Implementation Possibilities something that is relevant and applicable to your organization. 6. Y Implement PMO value drivers and KPIs Select and document your PMO value drivers and KPIs. It is important for PMOs to have performance indicators as a tool to create metrics and performance reporting. 7. Y Implement the P s in your PMO Selecting and determining which methodologies will be in your PMO is critical. Select whether your PMO will have components of portfolio management, program management, or project management. This is the defining factor for your PMO and will drive many components of what you do in your PMO on an ongoing bases. 8. Y Implement the PMO model The PMO model includes supportive, directive, controlling, and so on. Every PMO has a combination of different models, but you should have a major theme or preference. 9. Y Implement the PMO maturity model You must understand the different categories and rating system to use in your PMO. centralized repository. Implement drivers or KPIs in marketing materials, PMO metrics, or PMO dashboards where you show performance results. After selecting the different methodologies, there are many implementation considerations. Depending on your selection, you will set up organization groups, repositories, and complete operations around the methodology selected. The implementation choices of the PMO model are critical. You will make multiple decisions based on the model(s) you choose for your PMO. Add the maturity model to your centralized repository, marketing decks, and PMO presentations. Make sure you can speak to this model with everyone. Your measurement of our PMO is critical and done mainly through the use of a PMO Maturity Model. 9

10 # REQ PMO Build Decision Implementation Possibilities 10. Y Implement your PMO service offerings The offerings, such as a centralized repository, best practices, auditing, and so on, define your PMO. 11. Y Create the PMO roles to service- offerings matrix 12. Y Hire PMO team members This includes employees, vendors and contractors across all roles. 13. Y Create and implement training plans 14. N Create a PMO Mentor Program or PMO Buddy System The PMO model plays a big role in the service offerings you decide to implement. Implementing service offerings also includes creating the processes around those offerings, creating training materials, and creating pilot programs to ensure each of the offerings are successful. This is an important step in the implementation process for understanding the staff you need to hire. Use this matrix on marketing materials, PMO presentations, and in staffing conversations to justify staffing requests and costs. The implementation process for hiring PMO team members entails hiring them and getting them ramped up in their respective roles. Create a PMO training plan and the budget request to support the execution of that plan. This includes creating an initial training plan, and then determining the training details. (e.g. Project Communications training) Implement this program slowly, following the steps documented earlier in Chapter 7 of this book. This is not a critical step or something that needs to occur immediately, but certainly a best practice and highly recommended when the organization is ready. 10

11 # REQ PMO Build Decision Implementation Possibilities 15. Y/N Implement the portfolio management methodology In this case you see both a Y and a N. This is where you will decide Yes or No whether you will use Portfolio Management or not in your PMO. 16. Y/N Implement the program management methodology In this case you see both a Y and a N. This is where you will decide Yes or No whether you will use Program Management or not in your PMO. Depending on the type of PMO, which P s are in the PMO, and if portfolio management is part of the implementation process, follow the details in Chapter 8, Portfolio Management Methodology to implement portfolio management. ** It is highly recommended that you take the components of portfolio management and make pocket-sized copies of the methodology for your Portfolio Managers. The miniature version provides help to the Portfolio Manager going through the portfolio process and gives them a handy pocket guide that they can use on a daily bases. ** Same as the portfolio description, it depends on whether program management is part of the PMO. ** Create handy pocket guides that they can use on a daily bases. ** 17. Y/N Implement the project management methodology In this case you see both a Y and a N. This is where you will decide Yes or No whether you will use Project Management or not in your PMO. Same as the portfolio & program management descriptions, it depends on whether project management is part of the PMO. There is a good chance it will be as most PMOs do include it. ** Create handy pocket guides that they can use on a daily bases. ** 11

12 # REQ PMO Build Decision Implementation Possibilities 18. Y Implement PMO reporting It is important to think about the minimum set of reports to use when starting to implement your PMO. 19. Y Implement PMO tools The tools will be specific to the different P s selected for the PMO (portfolio, program, and project) and any software products required to run the PMO. Examples include: Centralized status system From an implementation perspective, PMO reports during the initial implementation phase should include basic program and project data only. These reports can focus initially on ontime and on-budget tracking. Enhance reporting only as the PMO matures and do not add too many reports initially. The implementation possibilities around PMO software are endless. Think about implementing only limited PMO software packages to start, and then add additional packages as the PMO matures. Think about software training and the processes needed to use the tools anytime you add them. Centralized financial systems Centralized HR performance system Centralized timesheet system Centralized purchasing system for processing POs and work orders Centralized employee training systems 20. Y Implement PMO processes These are the key PMO processes that are specific to running and driving the PMO. The implementation possibilities around PMO processes include timeframes for submitting status reports, running financial 12

13 # REQ PMO Build Decision Implementation Possibilities Examples include: PMO governance process processes, running change control, and so on. PMO escalation process PMO change control process PMO financial process PMO lessons-learned process PMO procurement process PMO resource management process Portfolio review board process Tips & Best Practices Focus on the key implementation steps outlined in the table. They can make or break the implementation process if you do not get them right. Bill s Thoughts: In a couple of my PMOs, I created pocket-sized guide books for my Program Managers and Project Managers, and people loved them. They were great marketing collateral to show day-today responsibilities, but they were also incredible job aids. I highly recommend creating these guide books for your organization. Regardless of the subject or material, they will go over well with management, customers, and your PMO team members. Follow these 20 steps for an excellent foundation for a world class PMO. As PMO Manager, your role is to actively drive each phase and continue to refine and grow each PMO process where applicable, while maintaining a speed that the company can handle. Do not expect that your company can adopt the processes as quickly as you can think of them; go slowly and be methodical in your approach. Be careful during this process and do not underestimate the importance of communicating changes to your organization (e.g. known as Organizational Change Management) and slowly moving your people through the different processes or tools that you are implementing in your 13

14 PMO. People often struggle to embrace new ideas or processes quickly, so make sure to consider how your new PMO idea might impact the execution and flow of existing programs and projects. Aggressive s often implement too many processes and procedures too quickly and end up not lasting long in their roles. But, PMO Managers who can grow into the role and understand and balance the needs of the PMO with the needs of the company, while continuing to show and prove value of the PMO, tend to be the ones who last the longest and have the ongoing support of their management team. Understand this balance and consider how important it is during the implementation process. Implement and Sustain Now that you have implemented your PMO and built the foundation, you can move into an ongoing process of improving and refining your PMO. One of your main responsibilities as is to constantly look for areas to grow and improve while being aware of areas that are not working well and removing them, when necessary. You must have a constant understanding of what is working and what is not working. Having this knowledge of what is working and not working is such an important point because, as you may recall, earlier in the book it was mentioned the shelf-life of a typical and the various reasons why they do not last long (typically, three-four years) at any one company. You do not want to be in that position; you want to ensure that your PMO is providing value and that your program and project teams are executing and meeting customer expectations. Celebrate Success As, remember to celebrate your PMO employees successes throughout the year. In Figure 13.3 PMO Build Schedule, you will remember we talked about a Celebrate Period where the takes the team to an offsite event, usually once a year, to celebrate everyone s great work. This event is very important and highly recommended, but it may not be enough for some employees, so what else can you do during the year to celebrate success? 14

15 Figure 13.3 PMO Build Schedule Task Name -PMO Build Schedule +Step 1 - Grow Skills - Ongoing Activity +Step 2 - Obtain Executive Support (Chapter 3) +Step 3 - Assessment Period (Chapter 4) +Step 4 - Recommendation Period +Step 5 - Design & Build or Enhance Period (Chapter 5-12) +Step 6 Implementation PMO Deliverables/Processes Period (Chapter 13) +Step 7 - Refine, Enhance and Grow Period (Chapter 14 - Chapter 16) +Step 8 - Celebrate Period +PMO Built & Implemented - Time to Mature and Grow - PMO Project Complete Resource Names Well, that is easy, and something that any can do while keeping the costs low and morale high. One of the best practices for celebrating success during the year is creating a PMO Professional of the Month award. This award process includes the recipient receiving a trophy and PMO certificate that celebrates their great work for the month. The can take a picture of the individual with the trophy and certificate and post the picture on a centralized repository for everyone to see and acknowledge the great work of the individual. Bill s Thoughts: I have created a Project Manager of the Month award in my last couple of PMOs and they have been incredibly successful. The employees loved it, it was low-cost, it boosted morale, and it was basically a great way to keep highlighting the great work the PMO employees were doing throughout the year. This is a highly recommended best practice. Summary As we conclude the implementation process, you should have a solid foundation for your new or enhanced PMO. How exciting is that and was it not a fun process to go through? Most people say it is very fulfilling to do. Now you have the organization and you have the foundation to make it even better. It is in your hands to grow and mature the organization and to make changes and enhance it as the company matures. Depending on the choices and the crawl, walk, run process you followed throughout the implementation phase, you should have a good handle on areas you need to work on to grow your PMO. 15

16 Remember the people in this process and how implementing a new PMO impacts them. Think about the impact on them from a tactical perspective and how you just added a new level of rigor and structure to their projects that they may not be comfortable with. They also might not be in the best position to snap to a new set of structure and you might need to work with them to understand how they can adopt some of the new PMO processes you just implemented. Also, it is important to not forget about the concept of resources, procedures, and infrastructure we have talked about all along during the PMO build process. Think about how each area is critical for everything you implement in your new PMO. We talk about people, procedures/processes, and infrastructure throughout building our PMO and focus you on thinking about each continually during the build and implementation processes. Finally, remember that new procedures or processes can be a struggle for project teams to adopt and so do not force it during this implementation process. It can take several years for every program and project to use a common set of processes. Keep working on them, though. Your role as is to ensure that as many program and project teams are using the processes and procedures and are following the best practices you outlined in your PMO. The PMO implementation process is a slow but rewarding journey. Eventually, the teams get there and, if you do it right, your PMO has a great chance of being successful. Chapter Review Answers 1. Items for implementing a PMO include: management support, PMO budget, and the P s of your PMO. 2. Not all steps are required due to a variety of factors. For example, if you are creating a PMO that is only a program management PMO, you would not implement the portfolio or project management methodologies. 3. Trick question there is not one single most important step when implementing a PMO; every company and situation is different, but if you have to pick one thing, Management Support tops the list. 4. Budget plays a significant role during the implementation phase because the available budget impacts how much money you have to hire people, offer different service offerings, purchase tools, and so on. The more budget you have, the more flexibility you have growing your PMO. 5. Obtain management support and approval, implement the PMO model, implement the PMO maturity model, and implement the PMO service offerings. 16

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