Mgt 613 - Project Portfolio Management and the PMO Module 8 - Fundamentals of the Program Management Office Dr. Alan C. Maltz Howe School of Technology Management Stevens Institute of Technology Alan.Maltz@stevens.edu © Alan C. Maltz, Ph.D, 2014

What is a project/program management office What is a project/program management office? Why does an organization need a PMO? © Alan C. Maltz, Ph.D, 2014

What are the core operational areas of a PMO? Consulting and support organization Knowledge organization Standard organization © Alan C. Maltz, Ph.D, 2014

PMO – operational design principles CONSULTING KNOWLEDGE MANAGE-MENT STANDARDS PROJECT-BUSINESS INTEGRATION RESOURCE & CAREER CENTER Overview of PMO design principles, beginning with Knowledge Management as the fundamental building block. A PMO that has attained a Consulting status has achieved the highest maturity level possible in an organization. © Alan C. Maltz, Ph.D, 2014

PMO as a Consulting organization… Providing project administrative support Providing project consulting and mentoring Serving as a center of expertise for project management Being first point of contact for question regarding PM processes, standards, reporting requirements, etc. © Alan C. Maltz, Ph.D, 2014

PMO as a Knowledge organization… Acquiring, organizing, maintaining, and disseminating knowledge and activities related to PM training and professional development Knowledge: Internal project assets, organizational know-how, lessons learned, external knowledge, etc. Training and development © Alan C. Maltz, Ph.D, 2014

PMO as a Standards organization… Establishing and maintaining organizational PM standards PM processes, tools, and techniques © Alan C. Maltz, Ph.D, 2014

What are the core operational areas of a PMO? Consulting organization Knowledge organization Standard organization Anything else? © Alan C. Maltz, Ph.D, 2014

What are the core operational areas of a PMO? Consulting organization Knowledge organization Standard organization Project-business integration and governance unit Resource and career center © Alan C. Maltz, Ph.D, 2014

PMO Models Strong PMO model Consulting PMO model Blended PMO model Letavec, 2006 © Alan C. Maltz, Ph.D, 2014

Strong PMO model Central project and program management body in the organization Significant influence over the standards and processes governing projects in the organization Singly accountable to management for setting direction and vision for project management practices Organizational benchmarking, maintaining project libraries, lessons learned, best practices Portfolio management and may manage key projects © Alan C. Maltz, Ph.D, 2014

Consulting PMO model Monitoring and fostering a sense of PM community in the organization Establish standards and may serve as center of expertise Provide training and development opportunities Publish best practices © Alan C. Maltz, Ph.D, 2014

Other PMO Models.. (Hill, 2008) Project Office Basic PMO Standard PMO Advanced PMO Center of Excellence Applies effective practices for project performance and oversight; and employs standard life-cycle processes when available Introduces critical processes and practices of project management: Identifies and develops critical processes Manages cross-project critical process use Identifies best and preferred practices Establishes and monitors use of a complete project management methodology: Provide full project life-cycle coverage Integrates technical processes Conducts methodology user training Enhances content and monitors use of a comprehensive methodology: Integrates business processes Optimizes automated tool alignment Facilitates methodology use across relevant business units Conducts project management methodology analyses: Examines process variation in business units Assesses methodology use and ongoing process improvement (Hill, 2008) © Alan C. Maltz, Ph.D, 2014

Project office The fundamental unit of project oversight in PM environment Created as a domain of the project manager, responsible for the successful performance of one or more projects Applying principles and practices of modern PM, through the skill and knowledge of the project manager, to achieve project success Serving as the direct interface to project team performance management Applying organizational policies, standards, executive decision, etc. to each project effort More than one project office can exist within an organization The challenge then lies in ensuring that each project office pursues a common approach to project management © Alan C. Maltz, Ph.D, 2014

Basic PMO Introduce project management as a professional discipline in the relevant organization through its prescription of applicable standards, designation of qualified project managers, training and empowerment of project teams, and specification of roles and responsibilities of stakeholders in the project management environment The first level that deals with multiple project oversight and control Provide aggregate oversight and control of multiple projects relative to the performance of multiple project managers © Alan C. Maltz, Ph.D, 2014

Basic PMO cont/d… Provide the means to compile aggregate results and analyses of project status and project progress Responsible for implementing capability across all PMO functions. Nevertheless, most of that capability is fundamental and emphasize establishing the foundation of a viable project management environment Can be a program office and represent the domain of the program manager There could be many PMOs in the relevant organization © Alan C. Maltz, Ph.D, 2014

Standard PMO Serve as the centerpiece of PM support in the relevant organization Focus on support that optimizes individual and project performance in PM environment Function as the interface between the business and PM environments Translate policy and executive guidance for project performance and implement actions and activities associated with strategic business interests and objectives in PM environment Act as the facilitator of PM environment process and practice design and as a catalyst for project management excellence, e.g. introduce project reporting tools and collaboration practices; provide executive support processes regarding governance, portfolio management, and business performance © Alan C. Maltz, Ph.D, 2014

Standard PMO cont/d.. Serve as the representative of the PM environment to the senior executive, and participate in or possibly convene or lead associated control boards comprising executives and senior managers. A solution for organizations seeking to implement PM as a core business competency, improve PM capability, or increase maturity Operate as the recognized organizational entity that directly or indirectly influences resource participation on projects, addressing issues of resource acquisition, qualification, training, assignment, and evaluation © Alan C. Maltz, Ph.D, 2014

Advanced PMO Focus on integrating business interest and objectives into PM environment The PMO director will have expanded authority to address business interests in the project management environment Collaborate with business units within the relevant organization and participate in the development or adaptation of processes and practices that are common to both the business and PM environments Perform comprehensive, centralized project management oversight, control, and support activities, together with expanded functionality that represents a mature and business-oriented project management organization. Appear more and more like a separate business unit, pursuing the development and implementation of advanced project management practices and business integration activities. Provide distinct expertise in state-of-the-art PM processes and practices © Alan C. Maltz, Ph.D, 2014

Center of Excellence (CoE) A separate and distinct business unit within the relevant organization May have responsibility for enterprisewide PM operations Focus on strategic business interests across the relevant organization or enterprise May not perform all of the prescribed other PMO functionality; but it could Assume a strategic alignment role in the relevant organization and guides PM in its continuous- improvement efforts Provide direction and influence for enterprise project management operations © Alan C. Maltz, Ph.D, 2014

Center of Excellence (CoE) cont/d.. May oversee subordinate PMO functionality where the relevant organization has constructed other PMO operations relative to its international, national, or other expanded geographical business focus. Build both PM environment and project stakeholder awareness, represent PM and business interests across business units, and manage customer relationships, as well as vendor and partner relationships Sponsor and conduct studies and evaluations of PM functionality and business effectiveness, with particular focus on its own operations or those of affiliated PMOs © Alan C. Maltz, Ph.D, 2014

Thank You - Questions? Alan C. Maltz, Ph.D. Howe School of Technology Management Stevens Institute of Technology Castle Point on the Hudson Hoboken, NJ 07030 Phone: +1 (561) 632-4848 E-mail: alan.maltz@stevens.edu Web: http://www.stevens.edu/ © Alan C. Maltz, Ph.D, 2014