PMO Practices & Trends Government PMO Forum Adel Khreich, Michael Chachaty January 2011

Transcription

1 PMO Practices & Trends Government PMO Forum Adel Khreich, Michael Chachaty January 2011

2 About Institute of Management A Division of Blue Visions Management Project Management Consulting Vetab Registered Training Organisation (Provider No 91308) Project Management Institute Registered Education Provider (REP Provider ID 2670) Endorsed by the AIPM Endorsed Course Provider 2

3 About bluevisions International consultancy focused on increasing project certainty and reducing risk through innovation, culture and excellence in delivery. Provides the leadership, technical excellence and leading edge tools and methodologies to create platforms for sustained long-term business improvement. Project management services Specialist project planning Contract services (including dispute resolution and expert witness testimony),. Program and Project Management Capability improvement including assessments, benchmarking, project health checks, PMO start-up and methodology development. 3

4 Objectives Understand challenges for organisations and PMOs; Overview role of PMOs in training; Familiarisation with the various PMO Models and industry trends; Develop awareness of the key considerations for implementing a PMO; and Understand maturity levels of PMOs. 4

5 Administration A Copy of the presentation will be on our websites so no need to take a lot of notes 5

6 Understanding Challenges and Purpose of PMO

7 Typical Challenges For organisations undergoing change Competitive advantage Time to market of product development Quality requirements Costs and profitability Innovation strategy Business risks (not just the project risks) Consistency Efficiency Governance and transparency 7

8 Government vs. Private Private Sector Strategic business development Increase in market share Remain competitive Profit focus Global Efficiencies Public Sector Policy driven Response to perceived/actual service/social needs Pressure on funding, IPART, etc Rarely focused on profits, more on Allocations Local Availability of funding and annual cash flow cycles more and more limited resources 8

9 Government vs. Private Private Sector Program Management Office: Resource management prioritizing Set standards for achievement of business benefits and tracks Public Sector Difficulties in managing resources across conflicting needs Sets standards but rarely able to track Deliver the product to market Train the organisation - Develop capability Not commonly involved in delivery Big role in training 9

10 Government vs. Private Private Sector Sometimes have sunset clauses Less documentation Organisation focused policies, procedures and governance Reporting requirements increasing Public Sector Tend to be permanent department(s) Multiple PMOs Significant documentation requirements to satisfy policy/legislation Difficult to influence whole organisation - subject to political influences Significant compliance reporting requirements 10

11 Typical Challenges For PMOs Resource Management is the biggest challenge Sourcing skills Conflicting demands on resources Decision making ability & conflicting authorities Competing requirements and priorities Governance and transparency Improving capability Demonstrating value being able to measure value is the first step 11

12 Trends in Project Management Over the last decade Much more awareness of standards Significant investment in training competency and knowledge based More demand for formal qualifications Sharp increases in membership of industry associations Buyers have become more knowledgeable and demand evidence of good practice 12

13 Missing Ingredients Project Management alone can cause issues Misalignment with strategy: Project targets met but fails to achieve business results (wrong scope) Misalignment with market: Project targets met but was the wrong project Poor ROI: Lack of benefits management (plan and track) Ineffective Coordination: Successful project as a standalone but lost opportunities for collaboration with interdependent projects 13

14 Trends in PMOs US research shows.. Maturity of PMO has become a measure of maturity of organization in Project Management capability More than 80% of large companies have or are implementing a PMO Greater understanding of strategic value of PMOs Increased challenges in resource management PMOs relied on to progress training 14

15 What is a PMO? PMO represents internal capability Program Management Office or Project Management Office (models to be overviewed later) Business Unit Level Functional (department) level Project level To provide centralised and structured leadership & infrastructure for managing & controlling multiple programs and projects Processes & methodology Support Tools Best practice Governance 15

16 Why Have a PMO? It is all about the Business Part of maturity growth For continual improvement in achieving business objectives For consistency To be single point of contact within an organisation 16

17 Purpose of PMO Delicate balance to avoid conflict Make best use of company s time, money and human resources Embed consistent repeatable practices in program and project management Focus on business level strategic success Define the metrics required for monitoring & control Measure program performance Report to executive 17

18 Value of PMO Project Management Solutions, Inc 18

19 Role of PMO in Training

20 Role of PMO in Training An increasing Role. Basic technical skills still accounts for more than 50% of training Training in software tools skills is also very high Training in soft skills and business skills is increasing rapidly as recognition is improving Areas for improvements: Formalise qualifications for PMO staff Formalise competency frameworks Formalise competency assessments Clear capability development roadmap 20

21 Skill Set for Project Managers Technical Skills The Science (30%) Process Champion The PM Knowledge Areas (S,T,C,R,Q,R,P, C) The Ability to apply the knowledge (Experience) Tools and metrics Soft Skills The Art (70%) Stakeholder management (Support and buy-in) Communication (clarity and relevance) Team leadership (high performance) 21

22 Skill Set for Program Managers Business Skills Business Champion achieving Benefits, outcomes, ROI Market, environment Process and project management acumen only Leadership Skills Lead teams (to achieve high performance) Communication (to influence) Stakeholder management (engagement) 22

23 Skill Set for Portfolio Managers Business Skills Product Champion focus on market & customer Determine business value of a product / project Technology / product changes in market place Resource & risk management Leadership Skills Communication (to influence) Stakeholder management (engagement) 23

24 PMO Models

25 Why so Many Models? One size does not fit all. Models depends on... Size, structure and geographical spread of organisation Complexity of investment (works) program Intended PMO Charter Proposed function Amount of likely influence Level within the organisation Type of organisation (business) 25

26 PMO Models Typical Models Discussed in this Presentation Project Control Office project level Functional Program Office functional (department) level Enterprise PMO business (unit) level Other Models Project Office actually delivers projects Support Model supports through training and administration Resource Model provides PM resources to other business units Or a combination of the above... 26

27 PMO Models General Management Enterprise PMO IT Engineering Program A Program B Tools Systems Support Functional Program Office Project Project Project Control Office 27

28 Trends on PMOs An increasing trend in... Trust by executives More than 50% reporting to the highest level of the executive Authority and empowerment Work on strategic tasks Strategic planning Governance Key advise to executives Benefits PMO managers selected for their business acumen not just PM skills Starting to be involved in portfolio management 28

29 Project Control Office Model Support for project teams Maintain procedures Support tools Schedule maintenance Earned value tracking Project metrics and tracking administration 29

30 Functional Program Office Model Supports program and project managers within a department Central repository of program and project information More administrative in nature Maintain program schedules Tracking of data reporting 30

31 Enterprise PMO Model Useful for large organisations with distributed environment The centre for program management competencies & practice within an level comparable to other critical functions PMO manager part of senior management PMO manager has sufficient influence to broker tension 31

32 Enterprise PMO Reporting Reporting Manage Manage Projects, Projects, Programs Programs & Portfolio Portfolio Knowledge Knowledge management management Training Training Qualifications Qualifications Coaching Coaching Professional Professional development development / / support support Process Process development development / / support support Enterprise Enterprise PMO PMO Tool Tool Selection Selection / / support support Resource Resource management management Reviews Reviews Health Health checks checks PIR PIR Benefits Benefits realisation realisation 32

33 Elements of Enterprise PMO Empowerment by organisation align to strategy Operational management Admin Schedules Tracking and reporting Change management & documentation Facilitation Risk management Methods & processes Information systems centralised, accessible Tools evaluate, select, deploy & maintain Metrics & tracking track, collect, analyse data and report Management review formal health checks, gates, post completion, etc.. Competency training learning and continuous improvement 33

34 Tools for PMO Much more sophistication around... Information management Schedule management Financial management Risk and issues management Change control Benefits management Resource and capacity management Document storage with version control Forums and discussions Contact lists Quality control Reporting tools 34

35 PMO Top 5 Priorities Current trends and focus Improve resource planning & forecasting Skills Demand Capacity Contracted vs. Internal contracted is still more than 50% 2. Improve processes 3. Enhance reporting and metrics 4. Improve performance measurement - KPIs 5. Improve governance 35

36 Implementing a PMO How it is implemented impacts success Buy-in, resistance Roles & responsibilities Decision making ability Political environment Level within the organisation Use a PM approach to implement Interactive and incremental (multiple cycles including pilots) Foundation Charter & objectives Current capability vs.. future (end) state gap analysis Transformation plan (roadmap) Senior sponsor visible sponsorship Appoint PMO senior team Communication and change plan Transformation pilot (incremental development, training, rollout, early wins) Fully functional Refine & improve Regular assessment of success 36

37 Change is Personal 37

38 Understanding Capability & Maturity Levels

39 Observation Basis of strong capability: Effective project managers (good technical and soft skills with demonstrated experience) Standardised processes (for consistency) Standardised tools (for efficiency) 39

40 Capability Development maturing together in step 40

41 The 5 Levels of Maturity Level 5 optimized process Level 4 managed process Level 3 defined process Level 2 repeatable process Level 1 awareness of process Continuous process improvement is being enabled. Processes repeatedly applied and measured against overall performance measurement framework. Processes documented and integrated to some extent Basic practices established, and processes are developing, some are used consistently Processes not documented, terminology not standardised 41

42 Developing Capability An incremental process with a carefully designed change management program Master the people aspect of change Analyse before you optimise - Identify the opportunities, conduct benchmarking exercises and capability maturity assessments Strategies to enable early adoption and create ownership within the project management community Consider impact on organisational design, job or role definition, performance management, training needs, 42

43 Industry PMO Maturity Project Management Solutions, Inc 43

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