1. Mgt 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 C. Maltz, Ph.D, 2014

2. 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

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

4. 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

5. 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

6. 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

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

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

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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)
Web:
© Alan C. Maltz, Ph.D, 2014