Creating a PMO out of Thin Air The Art of Persuasion. Sally Trigg Leon Spackman
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1 Creating a PMO out of Thin Air The Art of Persuasion Leon Spackman
2 Speaker Introductions and Roles Hired as Project Manager Led PMO Creation Effort, became PMO Manager Currently Manager of Strategic Planning Office Leon Spackman Hired as Lean Manager Supported PMO Creation Effort Currently Director of Vendor Relations Management Slide 2
3 Definition Persuasion: Getting someone to think a certain way and/or to do a certain thing. Slide 3
4 Slide 4 First, The Story
5 LHP Project Management History and Baggage Previous PMO at Lovelace ended 2009 Multiple enterprise projects managed off the side of the desk Corporate IT PMO in Nashville IT Projects with contracted PMs 2010: Idea of new PMO comes up, goes away Beginning of 2011: 2 FTE PMs doing vendor management and managing an enterprise project Slide 5 Leon Spackman
6 Early 2011: PMs Educate Leaders about Project Management Project definition, prioritization Project Update Report Weekly Project Update Presentations to Leadership Major PM-led enterprise project completed Slide 6 Leon Spackman
7 Second Quarter 2011: PMs Create PMO Development Project. Focus: Persuasion Regular team meetings Team Lead develops project plan, drives project Core project team creates initial presentation, vets with individual leaders. Responses vary Preparation for major persuasive presentation to executives Slide 7
8 PMs Continue to Add Value. Focus: Persuasion Continue written project update report and presentations Develop and roll out meeting facilitation templates and training Create PM LITE simplified project management appropriate for intradepartmental projects. Slide 8
9 PM LITE Development. More Persuasion Process flow Templates: Charter Communication plan Status report Closure document Three-hour class Milestone document (simplified plan) Risk and issue logs Lessons learned Constant communication with Leadership, including PM LITE presentation Leadership makes PM LITE mandatory for all medium-sized projects Slide 9
10 Slide 10 Second: Justifying the PMO s Existence Persuasion
11 How do we convince our audience to create a PMO? Our Steps 1. Recruit PMO Sponsor 2. Create presentation 3. Shift from our point of view to Leadership s point of view 4. With sponsor s support, vet presentation with leaders, revise 5. Make presentation to LHP CEO, then to entire Leadership Slide 11
12 PMO Proposal Presentation Our Persuasive Approach Part 1 Presentation Title PMO: An Essential Component Opening Databite results of 2002 survey: inadequate project management implementation constitutes 32% of project failures, lack of communication constitutes 20%, and unfamiliarity with scope and complexity constitutes 17%. In short, nearly 70% of project failures can be attributed to project management and process. Slide 12 Leon Spackman
13 PMO Proposal Presentation Our Persuasive Approach Part 2 PMO definition: A Project Management Office (PMO) is an organizational entity established to assist project managers throughout the organization in implementing project management practices, methodologies, tools, and techniques. Slide 13 Leon Spackman
14 PMO Proposal Presentation Our Persuasive Approach Part 3 Explore current project management problems Project Failures Added work and issues late in project Inconsistent project management practices across LHP Inadequate project change, risk, and resource management processes and documentation Lack of metrics for measuring project effectiveness No standard project formation process Failure to link projects to strategic goals Inconsistent project reporting and documentation Slide 14 Leon Spackman
15 PMO Proposal Presentation Our Persuasive Approach Part 4 Describe proposed PMO roles: Enterprise Project Management Project Portfolio Development & Management Project Resource Management PM Staffing and Training Intradepartmental PM Training, Coaching, Oversight PM Standard Process, Tools, and Methodology Development Strategic Planning Process Oversight: Planning, Development, Documentation PM Metrics and Reporting Slide 15 Leon Spackman
16 PMO Proposal Presentation Our Persuasive Approach Part 5 Explore Benefits to LHP from PMO: Projects scoped, examined before approval Resources are planned for lifetime of projects Organization-wide metrics developed to measure projects and PMO Projects developed in consistent way using standard templates and tools Intradepartmental project managers get coaching Strategic Planning orchestrated Slide 16 Leon Spackman
17 PMO Proposal Presentation Our Persuasive Approach Part 5 MOST IMPORTANT: PMO Saves Money because: Less project rework Fewer failed projects (with lost revenue) Less employee burnout throughout organization because of poor resource planning Less project delay Fewer regulatory sanctions Slide 17 Leon Spackman
18 PMO Proposal Presentation Our Persuasive Approach Part 6 Emphasize Work already done to develop LHP Project Management Capabilities: Already developed PMO Mission & Vision Two PMs doing work that adds value to LHP Already developed project formation process Already developed PM LITE Slide 18 Leon Spackman
19 PMO Proposal Presentation Our Persuasive Approach Part 7 Show we have a realistic, concrete plan through Phase 1: Phase 2: Phase 3: Projects managed PMO staffed PMO charter Portfolio oversight and documentation PM LITE Training PM Guidelines (risk, cost, resource, change) set up Resource planning and reporting set up 2012 Projects set up 2013 strategic planning, metrics established Slide 19 Leon Spackman
20 PMO Proposal Presentation Our Persuasive Approach Part 8 Proposal Ending: Quote : Building a Project Management Office (PMO) is a timely competitive tactic.organizations who establish standards for project management, including a PMO with suitable governance, will experience half the major project cost overruns, delays, and cancellations of those that fail to do so. Gartner Industry Research Slide 20 Leon Spackman
21 Slide 21 Third, Making it Happen Focus: Persuasion
22 Late 2011: Accelerated Strategic Planning. PMO proves its value Late 2011: Develop 3-year strategic plan in 6 weeks. PMs orchestrate process Strategic Plan completed October 30, Projects identified 13 total Slide 22
23 Late 2011: Accelerated Project Formation, PMO Development. PMO proves its value Shock over number of new projects PMO goes into High Gear Determines staffing needs, makes proposal. Approval takes months. Creates Project Information template Gathers project information in project SME meetings Leads project prioritization process Slide 23
24 PMO Staffing It Takes Time and Work. Creating and fine-tuning job description. Justifying staffing requests while defining projects Dealing with salary concerns scale needed revision Working with HR to recruit applicants Orchestrating interviews with project stakeholders Not settling for warm bodies, but seeking the best people Orienting and training new hires Slide 24
25 PM LITE Rolled Out. PMO proves its value Senior Managers identified students based on PM characteristics Process, templates taught in 3-hour session with high evaluation scores Over 75 attendees to date Currently polling LHP for further classes desired Slide 25
26 Developing PMO Tools No Time. Solution: Consultant Hired Project management documentation templates Standard project management process for enterprise projects Metrics for project management and PMO Alignment of LHP PMO with Corporate PMO Resource and financial management tools Risk and issue-tracking tools Slide 26
27 Development of Strategic Planning Office: more Persuasion Recognition that strategic planning belongs outside PMO. Projects come from Strategic Plan, not vice versa. Feb 2012: Presentation proposing separate office presented to CEO. Proposal accepted. Slide 27
28 Development of Strategic Planning Office: more Persuasion Current SPO status 1.5 staff members 2011 Strategic Plan Rolled Out posters, quiz, training SP calendar/process developed SP Work Team formed Environmental analysis and SWOT Completed Developing 2012 Strategies Slide 28
29 Current PMO Status 8+ PM Staff members working 2012 projects Executive Portfolio Status Update streamlined, automated Regular Project Portfolio Report-outs to Leadership Templates developed and adopted Vendor Selection Process in development Financial tools being developed Slide 29
30 What did we learn about creating a PMO? How did we PERSUADE?
31 Advice for creating a PMO Develop tools, processes independently and early Seek out advice of potential sponsors Research history of project management at organization & the remaining baggage, then deal with baggage Form PMO Development Project and stick with it Focus on the needs of the organization, not on what you want or think is a good idea Have a concrete plan Slide 31 Leon Spackman
32 Questions? Thank you! Slide 32 Leon Spackman
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