All PMO s are NOT the same!
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- Barnaby Golden
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1 October 2015 Trissential Consulting Carl M. Manello Practice Lead All PMO s are NOT the same!
2 There is a lack of perceived value of PMOs, a lack of project/program maturity and a lack of executive support [for delivery] *** The definition of PMO success is very limited: deliver on time and on budget* Only half of all organizations globally understand the value of Project and what it delivers** Ensuring delivery to the organization is not one of the top PMO functions*** Over one-third of PMOs do not formally measure & report to leadership*** Twenty-nine percent of PMO s report that managing the health of the project portfolio is not part their role*** In 2010, the PMI noted that, The time it took to implement the PMO is [most commonly] 1 to 2 years. The Project Office (PMO): A Quest for Understanding, Project Institute, Inc.,
3 What we ll review today What a PMO can be (there are so many types) What is the difference between types What makes up a basic PMO 3
4 'It's a stupid name enough!' Humpty Dumpty interrupted impatiently. 'What does it mean?' 'Must a name mean something?' Alice asked doubtfully. 'Of course it must,' Humpty Dumpty said with a short laugh: 'my name means the shape I am and a good handsome shape it is, too. With a name like yours, you might be any shape, almost.' 2015 SQS Trissential 4
5 What is yours called? can represent any of these: Project Center of Excellence (i.e., Process Owners) Governance Office (i.e., Oversee Compliance) Project Manager Resource Pools Portfolio Facilitators Resource Centers and yet we refer to all of them as PMOs 5
6 Organizational Differentiation What should a PMO look like? Project Office Program Office Portfolio Office Project Office Program Office Enterprise Program Office Governance Office Points of differentiation Functional Design Span of Control 6
7 An anecdote A CFO reads in the latest trade magazine about the much celebrated success of a peer company in their implementation of a PMO. Fantastic, she thinks and proceeds to call the CIO. Bill, we need to get your team to build a PMO. I know that they can make a difference, have a financial impact and deliver results. Go make it happen! After hanging up the phone, Bill is not sure where to turn. Does the CFO want a Project Office, Program Office, Program Office, Enterprise Program Office or Governance Office? 7
8 Step 1 Functional Design Step 2 Span of Control 8
9 Functional Design What should my "PMO" do? Any type of PMO may assume any of these responsibilities Varying levels of coverage Varying levels of focus, skill and capability For Example: IT Governance Office focused on leadership, business benefits and governance Integration PMO focused on leadership and communication, resourcing and integration 9
10 Functional Design Another View Delivery Support Providing senior PM s to help with project delivery Resource helping plan for capability and career development Strategy & Planning strategic planning and organizational planning for IT Financial Oversight Office of the IT CFO Reporting & Response standards management and status reporting roll up Delivery Support Services Resource Support Strategy & Planning Financial Oversight 10
11 Functional Design Short List Functions Resource Demand Portfolio PM Resource Pool Time Tracking Oversight & Control Conducting Project Assessments Developing and updating Project Life Cycle Explicitly Define the function Define metrics Establish a way to measure Seek Continuous Improvement Project Financial Status Report Coordination, Challenge: Focus on delivering value to stakeholders. Consolidation and Roll-up Communications Process Project Tools IT Strategy 11
12 Functional Design Focus Know who your customer is focus on their needs 12
13 FUNCTIONAL DESIGN Where to Begin Sample Activities Program Leadership Program Mobilization Program Strategy Stakeholders Communications Organizational Change Sample Deliverables Vision/Strategy Communications Plan Communications Materials Standard Practices & Templates Transition Plan Organizational Differentiation Sample Activities Stakeholder Business Vision Business Benefits Benefits Alignment Benefits Monitoring Business Process Integration Sample Deliverables Business Vision Business Case Continuous Improvement Plan Benefits Report Sample Activities Stakeholder Expectations Stakeholder Satisfaction Monitoring Sample Deliverables Stakeholder Plan Satisfaction Reporting 13
14 FUNCTIONAL DESIGN Where to Begin Sample Activities Project Staffing Resource On-boarding/Training Organizational Structure Knowledge Transfer Vendor Sample Deliverables Organizational Model Staffing Plan Training Plan Knowledge Plan Sample Activities Project Integration Deployment Coordination Change Operational Support Program Infrastructure Sample Deliverables Master Integrated Project Plans Program Plan and Master Schedule Budget and Forecast Internal Service Level Agreements Measured Metrics Sample Activities Program Planning Monitoring and Controlling Risk Issue Quality Quality Reviews Sample Deliverables Quality Plan Risk / Issue Logs Program Status Reports Quality Reports 14
15 Assess Where You Are At Functional Maturity Continuum 15
16 Step 1 Functional Design Step 2 Span of Control 16
17 Where is your PMO? The most common PMO implementation is the IT Project Office Coordination of efforts within IT Other forms of the PMO impact other parts of the organization Program coordination Business Unit coordination Enterprise coordination 17
18 PMO Maturity Building Basics Deliverable Focus Business Focus Integrated View Value Proposition 18
19 Span of Control Project Office Provides assistance to and coordinates non-related projects within a single functional area Information Technology Marketing Research & Development May take on any number of functions from prior slides Portfolio management Resource management Oversight & Control 19
20 Span of Control Program Office Internal to a large scale business initiative Coordinates reporting between initiatives Reports up to management Center for issue and risk escalation Dependency planning Portfolio management (within the context of the program) 20
21 Span of Control Program Office Coordinates efforts within a large business organization Coordinates between non-related initiatives Interacts with large scale programs (and their PMOs) Facilitates interactions with other parts of the company Core Functions may remain the same, but focus is broader Portfolio management (within the context of the whole business unit) 21
22 Span of Control Enterprise Program Office Sits at the enterprise level Reports to the Office of the CEO or Office of the Chairman Oversight and control responsibilities for the whole company Leverages all other PMO s to do the work These implementations are rare Their success is dependent upon: 1) the maturity of functional practices in the company 2) the maturity of other PMO s 22
23 PMO Maturity Span of Control Building Basics Core PM Deliverable Focus Project Office Business Focus PMO Integrated View Program Office Value Proposition EPO 23
24 The Difference PMO #1 Large Electronics Manufacturer IT team Project skills distributed throughout Information Technology Cowboy practices On-time, On-budget, within Scope was less than stellar Not getting the right skills in the right place at the right time Narrow focus for Project Office PM resource pools all IT PM s reorganized to this team for assignment Oversight and governance that PM s adhered to the same methods and practices for delivery 24
25 The Difference PMO #2 National Retailer Needed coordination for the integration of two large companies Each company did things its own way Coordination of same functions into a single-team of timelines to ensure integration to meet Wall Street / Shareholder commitments Senior Executive PMO Owned the rolled up program schedule Responsible for coordination of reporting to the Office of the Chairman Sourced experienced PMs to support operational teams Chief integration and escalation point for all work-streams 25
26 PMO Differentiation Characterized by Function and Span of Control Don t lump your PMO in with all the others Differentiate it: For clarity of purpose To your stakeholders For establishing measures For defining success criteria Define what your project management organization will provide. Define your customers Define the structure that gets you there 26
27 PMO Differentiation Clarify Your PMO Understand your business challenge Short term vs. long term needs Operational vs. project needs Focus on one business area or all across the enterprise Define your core functions Understand your span of control Establish your current maturity level Build measures and improve delivery Deliver VALUE 27
28 PMO Differentiation What To Do Next Assess the current state of the project management organization Map where you want take your PMO Build on short-term wins Grow, develop and aim for continuous improvement 28
29 PMO Transformation Map Path for continuous improvement Stage 1: build a base Stage 2: narrow the functional focus for enhancement Stage 3: targeted growth Project Schedule Identify Issues Risk Identification Narrative Status Reactive Project Project Description Reactive Project Reactive Project Ad-hoc Project Files Issue Capture Risk Capture Formal Project Status Simple WBS Business Case PM Policies Standard Metrics Project Charter Project Repositories SDLC Issue Risk Qualitative Status Central Repository Standard WBS TPNA Metrics Cost/Benefit Analysis PM S.O.P. s Plan Templates PM Life-Cycle Project Demand Status Reviews Configuration PM Templates Portfolio Documented Work Flow Discrete Time Keeping Measure Metrics Standard Schedules Schedule Status PM Work Aides Monitor & Report Phase Level Time Capture Project Sequencing Project Level Work In-Take Time Capture Process Project Inventory Change Control Process Schedule Estimating IT Goals Lessons Learned Portfolio Prioritization Est. Leading Indicators Life-Cycle Metrics Annual Measures Customized Schedules Schedule Metrics Impact IT Qualitative Dashboard Annual Plan Identify Project Sponsors Quantitative Status Knowledge PMO Checkpoints Project Histories Queue IT Project Plan Active Sponsors PM Quality Reviews Stakeholder Communications Ad-hoc Resource Assignment Expectations Resource Time Capture Quantitative Dashboard Integrated Master Schedule Functional Roles & Responsibilities HR Roles Defined Role Based Forecasts Resource Resource Loading Stratify Capabilities Define Competencies Customer Communications Resource Balancing Resource Assessment Portfolio Mgmt Tools Resource Metrics Balanced Score Card Role Based Sourcing Forecast by Dept. Forecast by Capability Proactive Effective Portfolio Delivery Forecast by Individual PM Certification PM Career Path As-Needed Training Career Planning Resource Development TPNA Process Certification 29
30 Parting Thoughts Ensure Success Through Organizational Change Get the business engaged (your stakeholders/customers) Get PM s and project teams to buy-in Demonstrate Value delivered to counter the perception of administrivia PMO Symposium October
31 31
32 Practice Director Efficient
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