1. Dr. Alan C. Maltz Howe School of Technology Management Stevens Institute of Technology Alan.Maltz@stevens.edu Mgt 613 - Project Portfolio Management and the PMO Module 10 - Functions of the PMO II - PMO as a project- business integration and governance unit 1 © Alan C. Maltz, Ph.D, 2014

2. 2 Organization and structure Establish the PMO’s structure and organizational alignment Develop project management alignment within the relevant organization Prescribe project tram member roles and responsibilities Define the stakeholders in the project management environment © Alan C. Maltz, Ph.D, 2014

3. 3 SET-UP THE PMO STRUCTURE Identify staff needs for PMO functions Introduce PMO staff Analyze and establish PMO relationships ESTABLISH PROJECT STRUCTURE Specify project team & PMO relationship Defines standard project team structure Define extended project team alignment DEVELOP STAKEHOLDER PARTICIPATION Manage internal project team stakeholders Manage internal oversight stakeholders Manage internal support stakeholders Manage customer stakeholders Manage vender/contractor stakeholders Manage other project stakeholders “Organization and structure” function model © Alan C. Maltz, Ph.D, 2014

4. 4 Range of Organization and Structure Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Manage the preferred project team structure Establish essential project roles and relationship - Specify standard project team member roles - Facilitate internal business unit relationships - Identify project stakeholders Introduce project structure: - Evaluate project management structure options implement the preferred project team structure - Implant the preferred PMO staffing structure Expand project management and business alignment: - Develop PMO organizational alignment - Develop project manager and PMO alignment - Manage broader stakeholder alignment and participation Review and analyze project organization and structure: - Analyze project management organization effectiveness - Examine project team structure effectiveness - Identify capability associated with current structure © Alan C. Maltz, Ph.D, 2014

5. 5 Portfolio management Project portfolio management is inherently a responsibility of executive and senior managers Establishing a project portfolio management capability enables the PMO to facilitate the involvement of executives and senior managers in project oversight It allows PMO to manage and coordinate ongoing executive and senior manager involvement in aspects of project management related to: Alignment of project with business strategy Approval of the project business plan and finding for each project Allocation of organizational resources for project work Prioritization of projects in the portfolio collection Review of ongoing project and portfolio performance © Alan C. Maltz, Ph.D, 2014

6. 6 SETUP PROJECT PORTFOLIO MANAGEMENT Validate Business Strategy and Interests Identify Project Selection Criteria Determine Project Selection Mechanism Identify Project Portfolio Management Roles Establish A Supportive Project Environment PERFORM PROJECT SELECTION Conduct Project Screening Develop Project Business Plan Develop Resource Allocation Plan Conduct Project Selection INTEGRATE PROJECT IN THE PORFOLIO Validate Project Selection Determine Project Priority Approve Initial Project Funding “Project portfolio management” function model CONDUCT PROJECT AND PORTFOLIO REVIEWS Compile Project Performance Information Conduct Project Gateway Reviews Conduct Portfolio Reviews MANAGE PORTFOLIO ATTRITION Perform Project Closeout Assess Strategic Advantage Assess Customer Satisfaction © Alan C. Maltz, Ph.D, 2014

7. 7 Range of Project Portfolio Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Provides project data to a higher- level PMO or other oversight authority for consolidation Introduces the fundamental concepts of project portfolio management: - A process and criteria for project selection are developed - Senior manager project reviews are conducted - Multiple project performance data is compiled for comparison Establishes and manages collaborative processes for project portfolio management: - Projects are aligned with business strategy - Project gateway reviews are established - A process for resource review and allocation is implemented - Projects are prioritized Creates a comprehensive project portfolio management capability: - Formal portfolio review boards or other authority convene on a recurring basis - Real-time project data is used in decision-making - A process for early project termination is established Develops policies and guidance for project portfolio management: - An environment that supports effective portfolio management is pursued - Business issues affecting portfolio management are examined and managed © Alan C. Maltz, Ph.D, 2014

8. 8 Customer relationship.. To the extent that the PMO is responsible for project-business integration, managing customer relationships within the PM environment is an important element of the PMO’s efforts This customer relationship management function enables the PMO to: Establish customer relationship practices within the project management environment Develop guidance for managing the business aspects of customer projects Conduct and evaluate customer satisfaction measurements related to project performance © Alan C. Maltz, Ph.D, 2014

9. 9 Range of Customer Relationship Management Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Applies customer relationship process guidance Manages customer relationship and project information: - Monitors customer relationship information - Monitors customer project information Manages customer relationships across project duration: - Prescribes customer project participation - Manages customer project proposals - Administers customer project contracts - Evaluates customer project satisfaction Manages customer relationships across business interests: - Manages pre- and post-project customer activity - Conducts forums and interactions for customer relationship development - Examines and implements customer partner arrangements Evaluates customer relationships for business benefits: - Analyzes customers base - Evaluates trends in customer relationships - Recommends customer relationship improvements © Alan C. Maltz, Ph.D, 2014

10. 10 MANAGE CUSTOMER RELATIONSHIPS Manage Customer Project Information Manage Customer Business Information Manage Customer Project Participation MANAGE CUSTOMER CONTRACTS Produce and Manage Customer Proposals Establish Customer Contracts Conduct Customer Contract Administration MANAGE CUSTOMER SATISFACTION Measure Customer Satisfaction Conduct Customer Relationship Programs Implement Customer-Centric Implements “Customer relationship management ” function model © Alan C. Maltz, Ph.D, 2014

11. 11 Vendor and contractor relationship The PMO’s interest in vendor and contractor relationship is one that endeavors to maximize their value on projects and optimize their availability and use within the project management environment This vendor and contractor relationship function enables the PMO to: Identify and qualify vendors and contractors who add value to project effort Develop guidance for managing vendor and contractor participation on projects Develop guidance for managing vendor and contractor contracts within the relevant organization © Alan C. Maltz, Ph.D, 2014

12. 12 Range of Vendor and Contractor Relationship Management Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Manages vendor/contracto r project participation Introduces vendor/contractor management: - Monitors vendor and contractor business and relationship information - Develops vendor and contractor management guidance Manages vendor and contractor acquisition: - Identifies and qualifies vendor s and contractors - Develops vendor and contractor responsibilities - Monitors vendor and contractor performance Manages vendor and contractor relationships: - Establishes preferred vendor and contractor programs - Develops vendor and contractor partnerships Evaluates vendor and contractor performance: - Analyzes vendor and contractor business value - Examines vendor and contractor participation and effectiveness across industries © Alan C. Maltz, Ph.D, 2014

13. 13 MANAGE VENDOR/CONTRACTOR RELATIONSHIPS Identify Vendor and Contractor Needs Manage Vendor and Contractor Information Prescribe Vendor and Contractor Participation MANAGE VENDOR/CONTRACTOR ACQUISITION Identify and Qualify Vendors and Contractors Solicit Vendor and Contractor Proposals Prepare Vendor and Contractor Contracts MANAGE VENDOR/CONTRACTOR PERFORMANCE Administer Vendor and Contractor Contracts Monitor Vendor and Contractor Performance “Vendor and contractor relationships ” function model © Alan C. Maltz, Ph.D, 2014

14. 14 Business performance management The role of PMO transcends multiple professional disciplines in its effort to integrate project management practices with business performance objectives This business performance management function enables the PMO to: Institute an enterprise-wide business collaboration capability Consolidate project management practices for distinct business value Establish measures and controls for business productivity Develop executive understanding of project management processes and practices Facilitate the achievement of core business goals; revenue, operational efficiency, and customer satisfaction © Alan C. Maltz, Ph.D, 2014

15. 15 Range of Business Performance Management Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Applies established business practices to conduct project management Facilitates business practice integration: - Examines PMO business function implementation - Validates project management processes for business use Introduces business collaboration: - Integrates business performance - Consolidates central project management authority - Coordinates and deploys project management-based business solutions Expands business collaboration: - Serves as project management and business advisor to executives - Accomplishes business performance measurements - Implements PMO functionality at multiple business locations and levels Manages business performance: - Analyzes project performance for business results - Evaluates project and business team - Asserts control for business performance improvement © Alan C. Maltz, Ph.D, 2014

16. 16 DEVELOP INTEGRATED BUSINESS SOLUTIONS Demonstrate Project Management Business Value Generate Executive Value Awareness Align Business and Project Management Performance MANAGE BUSINESS COLLABORATION Conduct Operational Business Collaboration Conduct Tactical Business Collaboration Conduct Strategic Business Collaboration MANAGE PMO BUSINESS FULFILLMENT Manage PMO Business Function Evolution Develop PMO and Enterprise Business Alignment “Business performance management ” function model © Alan C. Maltz, Ph.D, 2014

17. 17 Governance PMO is responsible for ensuring that the preferred business practices of the relevant organization are properly conveyed for use within the project management environment The project governance function enables the PMO to: Establish its authority to develop, implement, and manage project management practices and associated business interests within the relevant organization Introduce and manage organizational and business standards, policies, and directives within the project management environment Confer authority and responsibility for project performance to project manager Facilitate executive and senior management involvement in project management Convene management and technical advisory boards, councils, and committees to collaborate on decision and provide guidance relevant to the project management environment © Alan C. Maltz, Ph.D, 2014

18. 18 PREPARE AND MAINTAIN PMO CHARTER Define Business Purpose Specify Organizational Alignment Highlight Functional Responsibility Specify PMO Authority Identify PMO Funding DEVELOP PROJECT MANAGEMENT POLICIES Evaluate Policy Needs Demonstrate Senior Management Support Prepare Policy Guidance DEVELOP PROJECT CLASSIFICATION GUIDANCE Examine Project Classification Purpose Identify Project Classification Criteria Implement Project Classification Guidance “Project governance” function model ESTABLISH PROJECT MANAGER AUTHORITY Contractual Financial Resource Management Customer Relationship Management Vendor and Contractor Relationship Management ESTABLISH EXECUTIVE CONTROL BOARD Determine Executive Oversight Requirements Set Control Board Parameters Prepare Control Board Operating Procedures ALIGN BUSINESS AND TECHNICAL COMMITTEES Identify Business and Technical Groups Set-Up Relationships Manage Relationships © Alan C. Maltz, Ph.D, 2014

19. 19 Range of Project Governance across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Conducts project management using authority conveyed by a project charter Introduces essential business authority and policy guidance for use in project management: - Establishes the PMO charter - Develops policy guidance needed in the project management environment - Identifies project manager’s scope of authority - Specifies project classification Ensures business and technical guidance is properly conveyed to the project management environment: - Establishes an executive control board - Convenes and uses business and technical advisory boards and committees - Monitors project management environment for use of business and technical guidance Manages authority for direct interfaces with organizational business managers: - Collaborates on preparation of policy, practices and guidance used by project managers - Establishes requirements for cross-functional business support - Identifies project sponsors’ scope of authority Develops and contributes practice guidance for use of across the relevant organization: - Recommends adaptation of business processes - Assesses practices of the executive control board - Establishes cross- functional task forces for major practice renovations © Alan C. Maltz, Ph.D, 2014

20. 20 Assessment.. Project management assessment are conducted to evaluate three facets within the relevant organization—competency, capability, and maturity The difference between assessment and audit is that assessment measures condition, while audit measures performance The assessment function enables PMO to: Identify project management assessments that can be used within the relevant organization, Evaluate conditions of project management competency, capability, and maturity, develop strategies and action plans to improve project management performance, Validate the use of project management standards and practices within the enterprise © Alan C. Maltz, Ph.D, 2014

21. 21 Range of Assessment Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Participates in project management assessments and evaluates team member competency Conducts essential evaluations: - Establishes project manager skill and knowledge - Evaluate project management processes - Evaluate technical processes Conducts complete assessments: - Assesses project management competency - Assesses project management capability - Assesses project management maturity Conducts advanced examinations: - Examines management involvement in project oversight - Examines organizational structure for project oversight - Examines project governance - Examines external project stakeholder involvement in projects Collaborates use of assessments in the enterprise: - Analyzes the benefits of improvement - Recommends assessment type and frequency - Collaborates enterprise-level assessments - Prescribes enterprise-level capability and maturity solution © Alan C. Maltz, Ph.D, 2014

22. 22 CONDUCT COMPETENCY ASSESSMENTS Identify competency assessments Conduct competency assessments Implement competency improvement plans CONDUCT CAPABILITY ASSESSMENTS Identify capability assessments Conduct capability assessments Implement capability improvement plans CONDUCT MATURITY ASSESSMENTS Identify maturity assessments Conduct maturity assessments Implement maturity advancement plans “Assessment” function model © Alan C. Maltz, Ph.D, 2014

23. 23 Project auditing Project auditing function enables the PMO to: Monitor project management contributions to the achievement of business objectives Identify and respond to weak or troubled project performance Conduct oversight of quality management activities, maintain professional and practice standards within the project management environment Ensure compliance with organizational policies, industry certification requirements, government regulations, and contractual obligations © Alan C. Maltz, Ph.D, 2014

24. 24 Range of Project Auditing Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Conducts project audits and reviews prescribed for use by the project manager Prescribes and conducts simple project reviews: - Establishes basic project health checks - Monitors project technical reviews Establishes project auditing capability across projects: - Implements pre- project reviews - Conducts project phase reviews - Conducts other essential project, business and technical audits - Implements post- project reviews Expands auditing efficiency through training: - Provides auditor and team training - Provides project manager self-audit training - Provides auditing familiarization training to project stakeholders Conducts project audit analyses to improve auditing effectiveness: - Evaluates current audit capability - Examines use of external auditors - Recommends project audits © Alan C. Maltz, Ph.D, 2014

25. 25 SET-UP PROJECT AUDITING CAPABILITY Determine Project Auditing Needs Identify Project Auditing Resources Establish Project Audit Performance Points CONDUCT PROJECT AUDITIING Prepare for Project Audits and Reviews Conduct Project Audit Prepare Project Audit Report MANAGE PROJECT AUDITING RESULTS Review Project Audit Results Analyze Aggregate Program Results Monitor Project Audit Follow-up Actions “Project auditing” function model © Alan C. Maltz, Ph.D, 2014

26. PMO as a resource and career center 26 © Alan C. Maltz, Ph.D, 2014

27. 27 Resource management PMO must be able to influence the quality and availability of resources used in projects, and it should be able to oversee or at least monitor resource utilization in the project environment The resource management function enables the PMO to: Assist the HR department and resource managers in acquiring and qualifying resources, develop guidance for managing project resource assignments and performance, and evaluate overall effectiveness of project resource performance © Alan C. Maltz, Ph.D, 2014

28. 28 ACQUIRE PROJECT RESOURCES Identify Resource Provides Establish Resource Requirement s Fulfill Resource Requests ASSIGN PROJECT RESOURCES Prepare Resource Assignment Notification Obtain Resource Commitments Introduce Resources to the Project Team DEPLOY PROJECT RESOURCES Perform Deployment Administration Identify and Arrange Relevant Training Monitor Travel Arrangements “Resource Management” function model MANAGE RESOURCE PERFORMANCE Develop Performance Management Guidance Conduct Project Resource Performance Reviews Monitor Project Resource Performance CLOSE PROJECT RESOURCE ASSIGNMENTS Coordinate Resource Extensions Facilitate Resource Transfers and Reassignments Manage Resource Terminations © Alan C. Maltz, Ph.D, 2014

29. 29 Range of Resource Management Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Identifies project resource needs, coordinates project resource acquisition and assignment, and manages project resource performance Prepares essential project resource utilization guidance: - Establishes basic procedures for requesting and assigning project resources - Monitors project resource and resource manager commitments - Prepares routine project resource assignment and utilization reports Introduces project resource oversight capability: - Implements practices for project resource acquisition - Collaborates project resource requests and assignments - Implements project resource management guidance Manages project resource standards of performance: - Develops formal project resource utilization forecasts - Conducts project resource competency assessments - Monitors and evaluates project resource performance Collaborates with HR and business units to determine resource utilization requirements: - Prepares project resource utilization forecasts - Conducts project resource needs identification and recruitment © Alan C. Maltz, Ph.D, 2014

30. 30 Career development.. The career development function enables PMO to: Achieve professional recognition for project managers and project team members Facilitate project manager’s career planning and professional development effort Provide career motivation and direction for project management participants Prepare advancing professionals for expanded business roles and responsibilities Contribute to the organization’s retention of highly qualified professionals Enhance the organization’s competitive stance in the marketplace © Alan C. Maltz, Ph.D, 2014

31. 31 DEVELOP PROJECT MANAGEMENT CAREER PATH Establish Project Management As A Professional Discipline Define Career Advancement Model Construct Position Descriptions and Qualifications Integrate Career Path Into The Organization SUPPORT PROJECT MANAGEMENT CAREER PLANNING Provide General Career Guidance Promote Business Skill Development Implement Career Planning Support ESTABLISH PROFESSIONAL CERTIFICATION Develop Project Management Certification Program Facilitate Technical and Professional Certification “Career development” function model © Alan C. Maltz, Ph.D, 2014

32. 32 Range of Career Activities across the PMO Continuum Project OfficeBasic PMOStandard PMOAdvanced PMOCenter of Excellence Assists project team members to plan and review career advancement activities Introduces project management as a professional discipline: - Facilitates the identification and designation of project managers - Encourages professional certification - Recommends individual career planning actions - Examines career for formal career path development Manages a project management career development program: - Defines a project professional career path - Prepares career path position requirement, job descriptions and compensation - Incorporates technical and professional certification - Develops project professional career guide Expands project management career development support capability: - Implements a professional plan development and review process - Provides project management career planning and counseling assistance - Facilitates cross- functional professional job transfers and advancement opportunities Monitors business interest fulfillment and value from career development: - Conducts studies and analyses to monitor project manager and team member retention - Conducts studies and analyses to ascertain career path designation contributions to performance © Alan C. Maltz, Ph.D, 2014

33. 33 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/@stevens.edu Thank You - Questions? © Alan C. Maltz, Ph.D, 2014