THE PROJECT MANAGEMENT OFFICE

Transcription

1 THE PROJECT MANAGEMENT OFFICE A culture change in business Presented By José A. Rodríguez López, PE, PMP Quality Assurance Manage Puerto Rico Industrial Development Company

2 Objectives Establish the need for Project Management Define what is a Project Management Office Suggest a proven path

3 Project Management THE ART OF GETTING THINGS DONE

4 Why Project Management? Project Management is the means used by organizations today to turn their vision and mission into results Promotes creativity and innovation Maintains the organization integrated and focused on the business priorities

5 Project Management Facts Poorly management project cost U.S. Companies and Government $145 billion/year. CIO magazine, When Bad things Happen to God Projects, October 1997 The cost of failed projects in U.S. is more than twice of money spent in all training and performance improvements in 1999($62.5 billion). Training Magazine, % of the 62.5 billion was spent on Project management training. Training & Development Magazine 1999 State of the Industry Report, % of IT application development projects were cancelled before completion. CIO magazine, When Bad things Happen to God Projects, October % of organizational projects are cancelled before completion and half of them run as far as 190% over budget. PM Network Magazine, January 2001

6 Project Management Facts Organizations which operate 15% percent and higher effectiveness rely heavily on PMOs. 66% of projects at organizations with PMO were successful. 78% of high-performing organizations have a PMO PM Network, Unleashing the power of the PMO, June 2013

7 Inadequate Governance and Poor Planning the Root Cause of Failure Large Programs Success Rates Why Projects / Programs Fail Others 53% 16% Successful Technical Problems Problems with Suppliers Insufficient Project Personnel Resources 4% 4% 10% 11% 36% Poor Organization and Project Management Practices 31% 15% Under Perform Cancelled Ineffective Project Planning 20% Poorly Defined or Missing Project Objectives Source: Standish Group International, Survey from 2500 personnel attending project management training

8 Standish Group: Success Rate Score of IT Projects Still the same problems Successful Challenged Failed Project Smart

9 Business Competiveness Successful development of new products and services,require that organizations foster a culture of innovation. Innovation is a key ingredient for business and organizational productivity and competitiveness.

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15 Project Management Impact on Economy Dr. Donncha Kavanagh

16 Why is difficult to implement? Upper management thinks that project management is a software tool Organizations don't value the upfront (planning) investment of time Its perceived as a burocratic process Lack of commitment Organizations don't know how to implement culture change

17 What is a PMO? Dedicated Resource to serve project needs Start-up Support Monitoring and Control Develop Templates Cultural Change Personnel Development Professionalism in PM Efficient Use of Resources Etc..

18 When do we need a PMO? Poor project delivery track record Projects are highly complex and time sensitive Lots of simultaneous projects and project managers Impact of project failure is high

19 Reasons to Establish a PMO The PMO helps to manage the organization s future through: An emphasis on ensuring consistency and uniformity in projects Comply with regulations and business trends An organizational desire to excel An enterprise focus on improvement in project management competency A reduction in project overruns An increase in the delivery speed of projects An increase in customer satisfaction

20 Role of Project Office Development Recruiting Training Development of PMs Support Procedures Policies Reports-Priorities Control Functions Evaluation Assignment Ensure deliverables

21 PMO Primary Targets Establish Methodology Provide Tools Choose the Project Portfolio Mix Prioritize the porfolio Provide executive portfolio cockpit Mentor Project Managers Establish Data Archives Market its services Drive down project cycle times Track and report progress Help desk Focus corrective action Facilitate project governance Provide training Assist troubled projects

22 The functions of the PMO have evolved It is not just an organization to provide support for scheduling and monitoring activities on a single project It is becoming an essential component for the future success of the organization It provides services and organizational focus in core and supporting areas of project management

23 Where does the PMO belong in the organization? Depends on its scope The broader the scope the higher its visibility and impact

24 Where to Position a PMO? Corporate Office Project Support Office Business Unit Program A single project or business program

25 Components of a PMO* Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services What the PMO does How it is done and for whom Alignment with business value Vision statement Principles/Goals " The PRIDCO Project Management office manages and supports Transitional industrial projects Activities that promote the economic development of Puerto Rico

26 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities High-level set of directions Align PMO strategically Long-term goals (years) Tactical decisions (day-to-day)

27 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Responsible for PMO funding Manager PMO reports to Critical for culture change Political support Policy enforcement

28 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Person/group staked in PMO Internal/External Collaborative organizations Suppliers Investors

29 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Requestors of PMO service Others the PMO helps achieve their project and business goals

30 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Concrete statements Lower-level milestones Achievable Measurable Timed Evaluated at end of project and/or end of time period

31 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Tangible deliverables Services Fulfilling others needs Achievement of objectives

32 Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Creating the PMO Recruiting Systems and Procedures

33 Vision answers PMO purpose and goals? What you need to do to get there? Where do we see the PMO s future objectives?

34 Mission answers What the PMO does? How is done? For whom? Compares PMO to its business value

35 Deploying a PMO Create (or buy) a project methodology Provide training and coaching Conduct project audits/assessments Provide consolidated metrics Consulting firms can fill gaps Culture change Deploy in waves

36 Deploying a PMO Culture change People will have to do things differently Requires different behaviors More than teaching new skills Evaluate aspects driving behavior Reinforce positives Eliminate/change negatives Consultants can drive change sometimes

37 Deploying a PMO Culture change First do a gap analysis to show need Culture Enablers/Barriers/Attitudes Success rates Roles Skills Standards Work environment

38 Deploying a PMO Culture change First do a gap analysis to show need Use a cross section of staff Interviews Surveys Focus groups Use the gap analysis to define the future look of the PMO

39 Deploying a PMO* Deploy in waves Don t change things all at once General awareness sessions Project management training Standards/Templates Reward/Recognition system Get management buy-in Audits and evaluations PMO support organization

40 Not all PMO s are created Equal Organization Area A Organization Customer Area B Area C PMO Internal PMO External PMO The Program Management Office : Craig J. Levatec, PMP

41 The PMO Implementation Roadmap

42 PMO Challenges & Opportunities Examples of Challenges Project mission and tasks are poorly defined Lack of a clear process for escalating risks to senior management Insufficient reporting to support topmanagement decisions Ineffective enforcement of project controls and policies Conflict between line, project managers Projects do not meet deadlines / milestones Lack of standardized reports and reporting frameworks for all projects - Fragmented project plans Opportunities of PMO Identifies gaps in realization of strategic objectives Escalates current risks and identifies potential risks earlier Ensures proper communications to relevant stakeholders Improves monitoring and control of projects Mediates issue resolution Increases efficiency in tracking progress of projects Integrates project plans for all projects Standardizes progress reporting

43 WHAT TO MEASURE? CUSTOMER SATISFACTION DURATION SLIPPAGE EFFORT SLIPPAGE COST OF DURATION SLIPPAGE COST OF EFFORT SLIPPAGE

44 Project Portfolio Management and Project Selection Establish a Projects Portfolio Management System Senior Management Involvement Project Program Selection Business Strategy Scorecard Evaluation Development Action Plan

45 Project Screening Matrix

46 End User PMO Project Manager New Project Identified Project Request Received Project Manager Assigned Project Scoped Budget Developed Project Feasibility document To Approval Process

47 The Added Value of an Effective PMO Value ($) Efficient Program Management Office Value 2: Delivers Incremental Value Traditional Program Management Implementation Planning & Set-up Assessment & Concept Developmen t Validation& Detailing, Planning Time Value 3: Reduces Risk of Failure Value 1: Accelerates Progress

48 FOCUS -FUNDING FOCUS Tactical : Product Development Strategic: Business / Function FUNDING Market side: Capture / Develop new produts Supply side: Corporate investment

49 The Cost of implementing a PMO PROJECT MANAGERS and SUPPORT PERSONNEL SALARIES TRAINING COSTS MENTORING COSTS FACILITIES PROJECT MANAGEMENT SOFTWARE

50 Projects when properly manage. MEET THEIR GOALS

51 What creates credibility? Results

52 Questions? What is not planned will not happen