Information Technology Services. University of Maine System. Version December 20, 2012
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1 IT PROJECT MANAGEMENT OFFICE (PMO) CHARTER Infrmatin Technlgy Services University f Maine System Versin 0.07 December 20, 2012 Prepared by: Rbin Sherman Authrized by: [1]
2 Table f Cntents EXECUTIVE SUMMARY... 3 PMO JUSTIFICATION... 4 PMO MISSION... 4 CRITICAL SUCCESS FACTORS... 6 BARRIERS t SUCCESS... 6 PMO IMPLEMENTATION STAGES... 7 PMO STAFFING... 8 PMO ORGANIZATIONAL STRUCTURE... 9 PMO STAKEHOLDERS... 9 PMO BUDGET [2]
3 EXECUTIVE SUMMARY The Infrmatin and Technlgy Services (ITS) Prject Management Office (PMO) is a service rganizatin created fr the specific purpse f supprting the University f Maine System s (UMS s) Infrmatin Technlgy (IT) departments. The missin f the PMO is tw-fld: Guide key (IT) prjects t a successful cnclusin. Create a fundatin fr cnsistent prject success thrughut the rganizatin. Achieve this thrugh develpment f a strng and pervasive prject management discipline within the rganizatin s prject teams. In supprt f that missin, the PMO has fur primary bjectives: Deliver successful IT prjects Prvide Prject Management services and versight fr selected IT prjects. Build Prject Management prfessinalism amng Infrmatin Technlgy Services staff Mentr, train, and guide the rganizatin s prject teams as they learn and then adpt PM best practices in their prjects. Keep the Infrmatin Technlgy Service s Management Team and Prject Management cmmunity infrmed Prvide a variety f regular updates ranging frm mnthly status f enterprise prjects t an annual reprt n the rganizatin s prgress at institutinalizing Prject Management. Serve as the University f Maine System s authrity n IT Prject Management practice Set the standard, prvide the tls (e.g. Risk Evaluatin tl, templates) and then be the resident advcate and mdel fr gd Prject Management practice. Thrugh spnsrship by the CIO and supervisin by the Assciate CIO, the PMO gains: Authrity it needs t prmte system-wide rganizatinal change effectively. Based n established gvernance prcess. Independence that can sustain bjectivity. Oversight that can keep its wrk aligned with the rganizatin s business strategy Legitimacy as it fsters an effective, enterprise apprach. INTRODUCTION The University f Maine System s Bard f Trustees has authrized the creatin f an ITS Prject Management Office. The purpse f this charter is t establish agreement n key aspects f the PMO. This charter is, in effect, the rganizatinal mandate fr the PMO t exist. This dcument defines the purpse, visin, missin and functins f the PMO. It states wh the PMO's spnsrs and primary stakehlders are, the services that it ffers and the staffing and supprt structures required t deliver thse services. [3]
4 PMO JUSTIFICATION The purpse in establishing the PMO is t standardize the way prjects are planned, queued, and executed. The need can be fulfilled with the practice f Prject Management discipline and the creatin f a Prject Management Office t ensure that: Prject cmpletin dates are met. Prjects are cmpleted within budget. Prject deliverables have passed quality cntrl measures. Satisfied custmers. PMO VISION Create a fundatin within UMS IT rganizatins fr the enhanced awareness and cllabratin, increased efficiency, and mre cnsistent delivery f the right prjects at the right time with the right resurces. Prject teams and Prject Managers are encuraged t be creative, adpt new appraches, expand their skill set and take apprpriate levels f risk in their pursuit f this Visin. (See sectin belw n PMO as a Learning Organizatin.) PMO MISSION Prvide a slid fundatin fr the UMS s Infrmatin Technlgy departments by creating an envirnment f measurable, disciplined Prject Management prfessinalism where: Custmers reap the benefit f a carefully planned investment. Prject success is the nrm. Prject teams are prud f their wrk. PMO OBJECTIVES Primary PMO Objectives are: 1. Establish and Facilitate Prject Selectin: The PMO will wrk with the CIO s Cabinet t establish quantified criteria fr the selectin f prjects. These criteria will be ROI-based and cnfrm with UMS s verall business bjectives regarding Return n Investment. 2. Establish Perfrmance Fcused Prject Envirnment: All prjects fr which the PMO is accuntable fr successful delivery, will be regularly mnitred and measured fr perfrmance using Earned Value (EV) r sme ther perfrmance calculatin. All prjects will regularly selfmnitr perfrmance and share these perfrmance measurements with Prject Spnsrs and Stakehlders. 3. Build Prject Management Discipline and Prfessinalism: Mentr PMO prject teams (and ther prject teams by request). Assist prject teams in all phases f their prjects frm prject definitin t rllut. TrainUMS IT Prject Managers in a full range f Prject Management tpics. Prvide training t all levels f UMS management s that supervisrs, middle managers and executives each understand their rle in making prjects a success. [4]
5 4. Keep UMS management team and prject management infrmed: Reprt t CIO n: Enterprise prjects mnthly Other prjects quarterly Special prjects upn request Metrics that measure PMO effectiveness annually Issues and pprtunities as they arise Under the directin f CIO, prvide regular reprting t the CIO s Cabinet. Maintain the PMO Web site. 5. Serve as UMS s Authrity n Prject Management Methds and Practices: Set the UMS s IT Prject Management methdlgy and standards Be the resident advcate fr gd Prject Management practices in the rganizatin. Select Prject Management tls fr rganizatin-wide use. Serve as the fficial surce f prject templates and ther prject aids. 6. Cllabrate with ITS Directrs t manage the IT Prjects prtfli: As part f a management team that includes the CIO s Cabinet, assist in develpment and articulatin f the UMS s technlgy strategy. Wrk with the CIO s Cabinet t make the IT prject-selectin prcess successful. Maintain and publish a master IT prjects schedule, including critical milestnes. Assist with prject resurce management. Warn the CIO s Cabinet f IT prjects at risk and prvide recmmendatins. Perfrm capacity planning with ITS Directrs s that the UMS makes ptimal use f its resurces. Regularly, as agreed, mnitr and measure prject perfrmance. Wrk with the Prject Manager and Prject Spnsr t make adjustments t under-perfrming prjects 7. Manage all UMS IT prjects either directly r indirectly (per definitins that fllw). The PMO directly manages prjects n request: Spnsrs make their requests t the PMO. The PMO, CIO, and CIO s Cabinet cllabrate t decide where PMO resurces shuld be allcated. PMO prvides Prject Management services fr the prject. PMO is accuntable fr successful prject delivery. PMO deals directly with the Spnsr. PMO enfrces its Prject Management methdlgy and standards n these prjects. The PMO indirectly manages prjects n request: Spnsrs make their requests t the PMO. The PMO, CIO, and CIO s Cabinet cllabrate t decide where PMO resurces shuld be allcated. Department prvides the Prject Manager fr the prject. [5]
6 Prject Manager reprts n dtted line t PMO fr duratin f prject. PMO prvides guidance t the Prject Manager but under nrmal circumstances wuld nt prvide direct Prject Management services. PMO deals directly with the Spnsr and Prject Manager. PMO enfrces its Prject Management methdlgy and standards n these prjects. In additin, the PMO: Perfrms quality audits n request Perfrms risk audits n request Prvides Business Analysis services (e.g., Requirements Analysis, Jint Applicatin -Develpment sessins) n request. Nte: The PMO encurages the use f its published Prject Management methdlgy and standards and best practices in all IT prjects. Hwever, the PMO nly enfrces its published Prject Management methdlgy and standards n thse prjects fr which it is accuntable fr successful prject delivery. PMO METRICS Fr each bjective, the PMO will develp ne r mre SMART 1 targets against which t evaluate perfrmance. PMO perfrmance will be reviewed quarterly. SMART targets will be evaluated and renewed annually. PMO gvernance and leadership will agree upn the validity and usefulness f all targets. 1 SMART = Specific, Measurable, Attainable, Results-riented, Time-delimited Metrics shuld measure thse aspects f PMO perfrmance that are directly related t its Missin. On that basis, the fllwing areas f fcus can be used t judge PMO value: Imprvement in prject success ver time can be measured thrugh decreases in schedule and budget variances. Prject Management apprach can be measured by quality and timeliness f prject planning dcuments, accuracy f time and cst estimates, and effectiveness at managing risk. Staff attitudes can be measured thrugh use f a shrt survey. The PMO staff will develp r acquire apprpriate instrument(s) with which t btain bjective measurements. The PMO Spnsr will apprve the instrument(s) befre they are used. CRITICAL SUCCESS FACTORS The fllwing may be cnsidered necessary steps the UMS can take that help ensure PMO success: CIO and CIO s Cabinet prvides the PMO with unanimus, visible, and vcal supprt. Intrduce PMO functins in a phased manner. D nt try t d it all at nce. CIO and CIO s Cabinet supprts the prcess f Organizatinal Change. Managers recgnize that sme grups and individuals will embrace the change in Prject Management practice better than thers. BARRIERS t SUCCESS In additin t the items listed abve, the fllwing barriers have been identified as pprtunities t address when cnsidering the implementatin f a PMO as they ften lead t difficulty and resistance in acceptance. [6]
7 Unclear purpse - nt well defined r cmmunicated N executive buy-in PMO is seen as an verhead r marketing functin Unrealistic expectatins that the PMO is a quick fix t cre business-level prblems PMO is seen as t authritative, r perceived as a threat The PMO will attempt t arbitrate issues prir t escalating t the next level in the chain. If a remedy is nt pssible, the issue will be escalated and dcumented by the PMO. The escalatin path is as fllws belw: Level 1 Prject Manager escalates issue t PMO. The PMO will attempt t reslve the issue with help frm the Prject Manager and Clients. Escalatin will be frmally dcumented and disseminated. Level 2 Issue cannt be reslved and will be escalated by the PMO t the Prject Spnsr fr remedy. Escalatin and remedy will be frmally dcumented and disseminated. Level 3 Issue cannt be reslved at the Prject Spnsr level. PMO will escalate the issue t the Executive Spnsr fr remedy. Escalatin and remedy will be frmally dcumented and disseminated. PMO IMPLEMENTATION STAGES Just as Prjects are managed via a series f phases r stages, the implementatin f the PMO will prgress thrugh fur stages. STAGE ONE 7/12 12/12 Train PMO team n basic prject management prcesses and reprting mechanisms. Develp and adpt: Methdlgy that includes an verall framewrk fr prject management which includes a life cycle apprpriate t the rganizatin. Standards t be fllwed when running prjects. Prcesses that detail hw prjects will be executed. Tls such as templates, checklists, frms and flw charts. Knwledge base that includes a library f all current and histrical prject management infrmatin and lessns learned. Select and implement prject management tl t assist with scheduling, resurce and risk management, and status reprting. Remediate at risk prjects and use ur invlvement n existing prjects t build mmentum. Review existing initiatives t determine where PMO can prvide immediate assistance. STAGE TWO 1/13 6/13 Train PMO team n mre cmplex prcesses and techniques. Use lessns learned during early prjects t fine-tune prject planning and cntrl prcesses. Develp and intrduce resurce management plan. Develp prject management training plan and deliver training during prject initiatin phases. Submit PMO prgress reprts t CIO and CIO s Cabinet. Begin t review prject prtfli management systems. [7]
8 STAGE THREE 7/13 12/13 Cntinue t train PMO team n mre cmplex prcesses and techniques. Select and implement prject prtfli management system. Begin evaluating impact f PMO t determine if centralizatin f prject management is being accepted, and if the chsen standards and methdlgies are prving effective. Intrduce prject perfrmance metrics and dashbards t gain summarized views f prject statuses and prject scheduling. Intrduce the ability t perfrm prject audits. Psitin PMO t becme engaged in and relied-upn fr invlvement in strategic activities as prject prtfli management and strategic alignment. STAGE FOUR 1/14 6/14 When the PMO reaches this stage, it wrks with senir management in strategic planning and managing business alignment. All prjects will have well-develped prject plans and frmal prject planning and cntrl prcesses will be recgnized as a required cre cmpetency and an essential functin with the University f Maine System. Cntinue t imprve services by measuring effectiveness, implementing changes t existing services where necessary and adding new services. Updates t the charter may be necessary. Develp and implement a lng-term plan t imprve that capability. PMO STAFFING The PMO has the fllwing permanent staff: Senir Prject Manager 2 Prject Managers The PMO may als have temprary staff in the frm f cntracted cnsultants r departmental Prject Managers wh reprt via matrix n a dtted line t the PMO Directr r t a PMO Prject Manager. This can ccur when a department: Supplies the Prject Manager but requests that the PMO indirectly manage the prject Requests this arrangement as a means f mentring their Prject Manager. [8]
9 PMO ORGANIZATIONAL STRUCTURE PMO EXECUTIVE SPONSOR The UMS CIO is the Executive Spnsr and is the persn wh is ultimately respnsible fr verseeing and certifying the accuracy, viability, and defensibility f the PMO at the Organizatinal Level. The Executive Spnsr has the fllwing rles and respnsibilities: Champin the PMO. Prvide high-level versight, directin, and supprt. Prvide escalatin remedy. Ensure the PMO meets its gals. Apprve majr scpe changes t PMO. Prvide resurces, if applicable. Apprve the PMO Charter. PMO STAKEHOLDERS The PMO regards the fllwing as primary stakehlders: Stakehlder CIO s Cabinet CIO ITS staff Relatinship with PMO Executive Team Oversight Spnsr Custmer Expectatins f PMO The CIO s Cabinet is a member f the PMO Gvernance Bard and prvides Senir Management Team versight. The CIO supervises the PMO directr and prvides guidance n PMO business bjectives and supprts the PMO s effrts t achieve them. The CIO lks t the PMO as a surce f expertise and supprt in all matters related t management and successful delivery f IT prjects. The PMO supprts the ITS Department in its missin t deliver successful IT prjects. [9]
10 Campus IT Directrs Other Management staff All staff engaged in prjects Custmer Custmer Campus IT Directrs expect the PMO t prvide guidance, drive prjects t success and deliver updates. Expect the PMO t set the PM standard; prvide training and mentring; wrk with ITS Directrs t create an envirnment cnducive t prject success. PMO BUDGET All prject funds will cme frm spnsring departments thrugh gvernance prcess r allcated funds. PMO AS A LEARNING ORGANIZATION The PMO mdels itself as a Learning Organizatin in its relatinship t the UMS s Executive Management, Prject Managers, Prject Teams and Custmers. A learning rganizatin may be defined as an rganizatin that facilitates the learning f all its members and cntinuusly transfrms itself t achieve superir cmpetitive perfrmance. The PMO will express its Learning Organizatin rientatin thrugh many means, including: Psitive use f Lessns Learned exercises t encurage cntinual imprvement in prjects. Maintenance f a Lessns Learned database t prmte rganizatinal learning. Encuragement f crss-training. Prmtin f cntinual learning and prfessinal grwth in Prject Management. Wrking with staff t develp the ability t cnsistently select and execute prjects with significant psitive ROI. PMO CHARTER APPROVAL <Name> <Title> Executive Spnsr Date <Name> <Title> Date [10]
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