Presentation on theme: "Should You Establish a Project Management Office (PMO)?"— Presentation transcript:
1Should You Establish a Project Management Office (PMO)?
2What is a PMO? Deploys a consistent methodology Provides common management structurePromotes best practicesTraining/Mentoring/CoachingGathers/Tracks metrics from all projectsPromotes PM throughout the organization
3The PMO Value Proposition A successful PMO enhances an organization’s ability to execute projects and make deliverables on time and under budget while improving the overall level of quality.
4The PMO Value Proposition QualityServicePriceA successful PMO could improve performancein all three areas of the QSP triangle
5The PMO Value Proposition Quality(More Valuable Deliverables)ServicePrice(More Efficient Performance)(Reduce Waste)The cost of the PMO must beexceeded by the benefits
6Styles of PMOs - Centralized One PMO office with a group of managers and servicesEvery project includes a PM from the PMOEasier to manage and consolidate metricsExpertise may not be portable among projects
7Styles of PMOs - Distributed Central PMO organization not including PMsMight have multiple document repositories (for different disciplines)Supports PMs on projectsConsistency is harderCoordination might be harder
8Styles of PMOs - Assistive No, or very small, central organizationOffers guidance to other departments on project management issuesTraining/coachingGood way to do a little that could pay off a lot
9PMO’s in IT PMOs have been around for years IT “discovered” PMOs during Y2KConsulting firms used PMOs
10Building a PMO No two PMOs are alike Define the PMO’s function PMOs are customized to the organizationDefine the PMO’s functionFull/limitedFormalize the PMO organizationallyDecision making/expectations
11Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesWhat the PMO doesHow it is done and for whomAlignment with business valueVision statementPrinciples/Goals"The Acme Project Management Office (PMO) implements and supports project management methodology to enable our organization to deliver projects faster, cheaper, with higher quality, and within estimates and expectations."
12Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesHigh-level set of directionsAlign PMO strategicallyLong-term goals (years)Tactical decisions (day-to-day)
13Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesResponsible for PMO fundingManager PMO reports toCritical for culture changePolitical supportPolicy enforcement
14Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesPerson/group staked in PMOInternal/ExternalCollaborative organizationsSuppliersInvestors
15Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesRequestors of PMO serviceOthers the PMO helpsachieve their project andbusiness goals
16Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesConcrete statementsLower-level milestonesAchievableMeasurableTimedEvaluated at end of projectand/or end of time period
17Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesTangible deliverablesServicesFulfilling others’ needsAchievement of objectives
18Components of a PMO Mission Strategy Sponsor Stakeholders Clients ObjectivesProducts/ServicesTransitional ActivitiesBuilding the PMOStaffingProcedures
19Deploying a PMO Create (or buy) a project methodology Provide training and coachingConduct project audits/assessmentsProvide consolidated metricsConsulting firms can fill gapsCulture changeDeploy in waves
20Deploying a PMO Culture change People will have to do things differentlyRequires different behaviorsMore than teaching new skillsEvaluate aspects driving behaviorReinforce positivesEliminate/change negativesConsultants can drive change sometimes
21Deploying a PMO Culture change First do a gap analysis to show need Enablers/Barriers/AttitudesSuccess ratesRolesSkillsStandardsWork environment
22Deploying a PMO Culture change First do a gap analysis to show need Use a cross section of staffInterviewsSurveysFocus groupsUse the gap analysis to define the future look of the PMO
23Deploying a PMO Deploy in waves Don’t change things all at once General awareness sessionsProject management trainingStandards/TemplatesReward/Recognition systemGet management buy-inAudits and evaluationsPMO support organization
24The Methodology Processes Procedures Templates Best Practices Standards/Guidelines/PoliciesMust be adaptable“Methodology management”
25Methodology Management DevelopmentBuild/Buy/Buy and CustomizeSupportQuestions/Repository/TrainingEnhancementsExpanding/Training/EnhancingDon’t over-engineer it.Don’t let methodology get in the way.
26PMO Training Scope of training Determine needs Teach all stakeholdersDecide which skills you will teachDetermine needsRespond to feedbackCreate training strategyDelivery, audience, timing, in/outsideDevelop/buy curriculum
27PMO Coaching More informal than training More one-on-one Talking through situationsAlign coaching services with deployment
28AuditsIn order for new processes to be adopted successfully, they must be used properlyProject-level auditsDon’t audit every projectsIdentifies failures to use methodologyOrganizational audits
29Consider outsourcing this effort. AuditsProject-level auditsDid stakeholders participate?Stakeholders approve project definition?Work plan being used? Is it accurate?All deliverables completed?On track: cost, duration, quality?Are risks being managed?Are issues being managed?Consider outsourcing this effort.
30Consider outsourcing this effort. AuditsOrganizational-level auditsShow how the “gap” is closingKeep you stakeholders informedIdentifies compliance (or not)Identifies whether or not the PMO is a good idea for the organizationIdentifies if PMO is being delivered in the best way for the organizationConsider outsourcing this effort.
31Audits Trend successive audits Identify changes that need to be made Identify training needsStress progress along lines of business alignmentDon’t be afraid to say things are wrongIt’s probably not going to be totally successful
32Metrics Consolidate metrics and reporting Organization-wide portfolio This is a great way to be visible and useful to upper managementThis can also be time consumingVery hard to measure the value of the PMO precisely (like holding a cloud)
33Metrics Problems gathering project metrics Be clear and concise Timeliness –response is low priorityAccuracy – reported status is not correctCompleteness – too briefBe clear and conciseUse standards and automation
34Metrics Savings with scope change mgmt. Savings with risk management Savings by proactive actionSavings by way of re-useAssess the value of increased qualityThe PMO is likely to increase everyone’s workload and responsibility… so probably won’t be liked by everyone