The Project Management Office. Structuring a PMO that

Transcription

1 The Project Management Office Structuring a PMO that Delivers Value to The Organization 1

2 Project Planning Our project failed. However, we did sell our project plan to an art collector for $2 million, thereby exceeding our project financial goals by 500%.

3 Agenda PMOs That Deliver Value Introduction Setting the scene for understanding PMO issues PMO success factors Summary 3

4 Veris Introduction Project management services Experienced practitioners Calgary focused Rob Coutts, Matthew Hillhouse, Jeffrey Wallace 4

5 Veris Services What Do We Do? Project Management Business Analysis Program/project management Project recovery Project assessments PMO/PSO structure and methodology Requirements gathering Requirements and test traceability and validation Veris Team Process Analysis Process mapping Process analysis Process improvements Business process management Veris Knowledge Base Consultant Our Clients Change Management Change management strategy Change management planning and execution Reinforcement tactical planning Rob Jeffrey Matthew Management Consulting Strategic planning Project prioritization RFP/RFI 5

6 Topic introduction Top 10 Reasons NOT to have a PMO 10. Our customers really love us, so they don't care if our products are late and don't work. 9. Organizing to manage projects isn't compatible with our culture, and the last thing we need around this place is change. 8. All our projects are easy, and they don't have cost, schedule, and technical risks anyway. 7. We aren't smart enough to implement a PMO without stifling creativity and offending our technical geniuses. 6. We might have to understand our customers' requirements and document a lot of stuff, and that is such a bother. 5. Having accountability on projects requires integrity and courage, so they would have to pay me extra. 4. Our bosses won't provide the support needed for a PMO; they want us to get better results through magic. 3. We'd have to apply project management to all projects regardless of size and complexity, and that would be stupid. 2. I know there is a well-developed project management body of knowledge, but I can't find it under this mess on my desk. 1. We figure it's more profitable to have 50% overruns than to spend any money on project management standards to fix them. Copyright 1996, Jim Chapman. Reprinted by Permission.

7 Let s start with some questions.. How many people here today are influenced or affected or involved with respect to PMOs in their organization? How many of you are highly satisfied with your interactions with the PMO? How many of you are not happy to any degree with your interactions or added value of the PMO? 7

8 PMOs What Are They? Centralized Organization Project Success Project Controls Administrative Roadblock Documentation Standards Escalated PM Learnings 8

9 PMOs One Model Does Not Fit All Administrative Governance & support Command & Control Templates, guidelines, centralized storage for project documents Coaches with experience and credibility, proven processes/ methodology, standards that add value Accountable for all projects and their outcomes 9

10 PMOs Top reasons why a PMO exists 10 - Inaccurate project status reporting 9 - No consistent standards for project delivery 8 - Limited professional project management expertise 7 - No method to assess and stop projects in mid flight 6 - No linkage between projects and strategic corporate goals 5 - No way of viewing projects across the organization 4 - No consistent lifecycle and progress checkpoints 3 - No project intake and prioritization process 2 - Resourcing constraints 1 - Project overruns 10

11 How PMOs Typically Fail to Deliver Value - Rob

12 How PMOs Typically Fail to Deliver Value slide 1 Created in a crisis planning phase pressures I Want it ALL and I want it NOW Appropriate model for culture one size does not fit all Over processing way too beaurocratic 12

13 How PMOs Typically Fail to Deliver Value slide 2 Lack of accountability It s not my fault Non compliance appropriate enforcement Not results focused too academic Poorly defined roles, responsibilities and authority

14 How PMOs Typically Fail to Deliver Value slide 3 No PMO performance metrics lack of expected benefits No credibility limited real life project experience I can coach Usian Bolt over the 200mtrs.. Poor intake and priority process not linked to business strategy

15 How PMOs Typically Fail to Deliver Value slide 4 Lack of real sponsorship Sorry Can t make the kick-off meeting after all. You handle it Perceived as corporate project police no value add Weak communication and expectation management from PMO

16 How PMOs Typically Fail to Deliver Value Summary Created in a crisis planning phase pressures Appropriate model for culture one size does not fit all Over processing way too beaurocratic Lack of accountability Non compliance appropriate enforcement Not results focused too academic Poorly defined roles, responsibilities and authority No PMO performance metrics lack of expected benefits No credibility limited real life project experience Poor intake and priority process not linked to business strategy Lack of real sponsorship Perceived as corporate project police no value add Weak communication and expectation management from PMO

17 10 steps to PMO success - Jeffrey

18 10 steps to PMO success Step 1 Define the problem or problems we are trying to fix. Provide an infrastructure of people, procedures and tools for effective program management of all Company D initiatives Which means. The ability to provide Company D management with the information and resources to proactively manage and control the scope and activity of a program from beginning to end. 18

19 10 steps to PMO success Step 2 Assess the corporate maturity level in terms of project management. Expectation management We need results today not in 3 years We need results today not in 3 years work out how to get this set up by year end (July 200N)

20 10 steps to PMO success Step 3 Establish Specific Objectives for the initiative If a man knows not what harbor he seeks, any wind is the right wind. -Seneca

21 10 steps to PMO success Step 4 Using the results outputs from steps 2 and 3, develop some ideal structures that might work in the corporation

22 10 steps to PMO success Step 4 Enterprise Company Company D D Enterprise PMO Reporting Division Analyze Program Monitoring Process Collect Actions Program & Project Company D Master Agreement Company D Division 1 Company D Division 2 Company D Division (n) USA Program 1 Program 1 Program 1n Mexico Program 2 Program 2 Program 2n Canada Program 3 Program 3 Program 3n Existing Programs New Programs PMO Initiating and Planning Process Enterprise PMO Overview

23 10 steps to PMO success Step 5 Develop Roles and Responsibilities chart (RACI works well). PMO EXECUTIVE PROJECT PORTFOLIO MANAGER PROJECT MANAGEMENT MENTOR PROJECT MANAGEMENT TOOL MENTOR RESOURCE PORTFOLIO MANAGER HELP DESK SPECIALISTS DATA ADMINISTRATOR

24 10 steps to PMO success Step 6 Complete an organizational impact assessment and have it approved by all key stakeholders. Meteorite impact

25 10 steps to PMO success Step 7 Develop an implementation plan for the initial implementation

26 10 steps to PMO success Step 8 Develop an organization Change Management Plan to accompany the Implementation Plan. We ve always done it this way. Why do we have to change it?

27 10 steps to PMO success Step 9 A Establish senior executive sponsorship (CEO works best) and a clear budget. B - Execute the PMO implementation and change management plans. Implementation is the action that must follow any preliminary thinking in order for something to actually happen.

28 10 steps to PMO success Step 10 Assess performance against Objectives and adjust implementation plan and Roles accordingly. There is nothing so useless as doing efficiently There is nothing so useless as doing efficiently that which should not be done at all!

29 10 steps to PMO success Step 10 Step 1 Define the problem or problems we are trying to fix. Step 2 Assess the corporate maturity level in terms of project management. Step 3 Establish Specific Objectives for the initiative Step 4 Using the results outputs from steps 2 and 3, develop some ideal structures that might work in the corporation Step 5 - Develop Roles and Responsibilities chart (RACI works well) Step 6 Complete an organizational impact assessment and have it approved by all key stakeholders. Step 7 Develop an implementation plan for the initial implementation (up to 18 months out) and a high level milestone view for completion to steady state. Step 8 Develop an organization Change Management Plan to accompany the Implementation Plan. Step 9a Establish senior executive sponsorship (CEO works best) and a clear budget. Step 9b - Execute the PMO implementation and CM plans Step 10 - Assess performance against Objectives and adjust implementation plan and Roles accordingly

30 PMO health check Pre implementation checklist What are the critical success factors (CSFs)? Have we defined what services the PMO will provide to satisfy each CSF? Have we defined how these services will be provided? Post implementation/maturity level checklist Is the PMO delivering the type of benefits the organization specified Improve consistency project results Centralized cost control Accurate project reporting to senior management Opportunity to enhance project execution practices 30

31 Questions?