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Leading
Successful
PMOs
Peter Taylor
www.leadingsuccessfulpmos.com
Peter Taylor
Experience: Creativity: Motivation
Author – Speaker – Workshops - Coaching
Leading Successful PMOs
Leading Successful PMOs is a book to
guide all project based organisations,
and project managers who contribute to
and benefit from a PMO (Project
Management Office), towards
maximising their project success.
Imprint: Gower Published: Oct 2011 Format: 234 x 156 mm Extent: 160 pages Binding: Hardback ISBN: 978-1-4094-1837-5
Quick Quiz
What does ‘PMO’ mean to you?
The PMO is ...
The Project Management Office (PMO) in a
business or professional enterprise is the
department or group that defines and maintains
the standards of process, generally related to
project management, within the organization
The PMO strives to introduce economies of
repetition in the execution of projects
The PMO aims to reduce project risk through
common practice and quality assurance
The PMO links business strategy to project based
execution of that strategy
PMOs
What is meant by a PMO?
What is meant by a PMO?
And the right strategy
‘You know, what I love is having people
who look after our business for me and
who help me drive our strategies
forward – the PMO does both, which
isn’t what all my departments do...’.
And the right strategy
Again from ‘The State of the PMO 2010’
report
– 64% of the PMOs advise their executives
– 62% of the PMOs participate in some form
of strategic planning
– And nearly 60% of PMO Directors/Leaders
report in to the EVP level or above
Types of PMOs
A PMO can typically be one of 5
types from an organizational
perspective:
– A Departmental PMO
– A Special–Purpose PMO
– An Outreaching (Supplier) PMO
– An Customer (External) PMO
– An Enterprise PMO
Models of PMO
Supportive
Aid
Empower
Share
Controlling
Standards
Risk Mgt
Profiling
Directive
Ownership
Guarantee
Unit
Blended PMO – combining
elements of all three models
And is it real?
All PMOs are not equal
Level 1 – Ad Hoc
•Few formal definitions
•PMO is a trouble shooter
Level 2 - Defined
•Project discipline in place – repeatable behaviour
•Standards and Method and simple Measures
Level 3 - Controlled
•Aligned with business goals
•PMO is governing, reporting and correcting
Level 4 – Measured
•Quantitative goals set
•PMO KPIs in place
Level 5 – Optimized
•Continual improvement
•PMO drives innovative changes
PMO ‘Acid Test’
‘Get the PMO leader to call your
CEO and then count the
number of seconds before he
recognizes their name...’
PMO ‘Acid Test’
‘When was the last time that a
project manager contacted
your PMO asking for some
form of help? ...’
PMO ‘Acid Test’
‘Do people ask why they should
use the PMO and do they
know what your PMO does...’
PMO ‘Acid Test’
‘What happens when you call
up a PM, do you get straight
through or do they adopt an
avoidance strategy...’
PMO ‘Acid Test’
‘Do people ask many times over
where they should go for
project information or project
help...’
Now
‘Established project
management offices result in
projects with higher quality and
business benefits’
PWC: Insights and Trends: Current Portfolio, Programme, and Project Management Practices
Now
‘Building a Project Management
Office (PMO) is a timely
competitive tactic’
Gartner Research
Now
‘With projects in many
organizations becoming global,
involving multiple business units
and locations, the benefits of
PMO are more visible’
2012 KPMG report - Business Unusual: Managing projects as usual
Support
Training
Career
Process
Project Quality
Project Success
Personal Satisfaction
Being part of a PMO
Much improved Better No change Worse Much worse I have always worked in the PMO
The PMO Leaders said:
PMO Leaders said:
1 One size doesn’t fit all, flexibility is key
2 Balance well between people and process
3 Never be afraid to promote your PMO and your projects
4 Act like a business leader but have a continued passion for
projects
5 Track the benefits of what you are doing
6 And be a strong leader
The Managers said:
Managers of PMO leaders said:
1 Communicate well
2 Negotiate fairly and strongly
3 Be an agent of change
4 Demonstrate self-managing capability
5 Believe in the business and the projects
6 And know the project world
Recruiters said:
0 5 10 15 20 25 30 35 40 45 50
Method/Methodology
Negotiation Skills
Change Management/Agent of Change
Self Managing/Organised
Communication Skills
Previous PMO experience
Risk Management Capability
Quality Assurance
Strategically Competent
Stakeholder Management Skills
Project Management experience
Recruitment Skills: PMO Leaders
Asia USA Europe
Competency Framework
Business Leadership
Technical Personal
Project Management
PMO Key Competencies
Business Leadership
Technical Personal
Project Management
Be passionate about projects
Be strong in communication
Negotiate well
Be enthusiastic about leading
change
Don’t be afraid to be unique
It is your PMO...
‘Don't let anyone tell you that you
have to be a certain way. Be
unique. Be what you feel you
need to be’
Consistency
• The best PMOs have
consistent, repeatable PM
practices across the
enterprise. All projects are held
to the same standards and
requirements for success. They
have also eliminated
redundant, bureaucratic PM
practices that have slowed
down projects.
Consistency
• The best PMOs have the most
experienced PMs in place and
have a program underway to
recruit the best PMs, develop
their existing PMs into the best
and to maintain this level of
quality and experience.
Transparency
• The best PMOs have clear
visibility into the progress and
cost of all projects. They also
know exactly how resources
are being used. They openly
share this information to all the
appropriate stakeholders
throughout the enterprise.
Flexibility
• The best PMOs adapt to the
enterprise's strategic
expectations and know how
to operate effectively within
the corporate structure and
culture. And they are not rigid
in their own structure and
focus in order to adapt and
adopt quickly.
Educational
• The best PMOs sponsor training
and facilitate communities of
practice to promote PM best
practices in their organizations.
Such communities of practice
provide PMs with a forum to
share their knowledge and
share experiences.
Methodology
• The best PMOs are the
custodians of a dynamic
framework of method to assist
PMs in the delivery of projects.
This includes not only process
but also templates and
guidance.
Assurance
• The best PMOs ensure that
quality assurance actually
delivers quality.
Future Progress
1. PMO leaders will continue to build
better relationships with executive
management
2. Improvements in performance
measurement will make it possible for
PMOs to more accurately measure
project health
3. As PMO leaders strive to define their
organization’s role, they will move to a
menu of PMO features and capabilities
Siemens
Siemens – 80 billion euro
Siemens
Industry Automation – 38
billion euro
Siemens
PLM Software 1 billion euro
Siemens
Me
The Projects
Why a PMO?
• 300
• 360
• 115
• 13
The PMO ‘5 Ps’
PMIS
PM Information Systems
Promotion
Internal Communications External Communications Marketing Success Stories
Performance Project Profiling
Project Reporting
Dashboard KPIs Scorecard Funding ROI Escalation
Process
Methodology Certification
Program Quality Assurance Assessment Authority
People
Recruitment Profiles Training Induction Certification Assessment Team Building
2007 Achievements
PM Virtual
Practice
formed
Practice Strategy
defined
‘Bring out your dead’ Project Issue Assessment
completed
PMI
Standards
Adopted
Baselining
Activities
Survey of PMs
Training/Experience/
Certification
Regular Communication in place
PM Newsletters (weekly) – PM Calls – PM Leaders meetings – Ad Hoc AppShare/Training sessions
PM Maturity Assessment
PM Competency Development
Framework (PMCDF) defined PM Training Plans
Action Dashboard for ‘Top PM Issue’ Resolving Actions/Initiatives Survey of PMS
Top PM Project Issues
Project Reporting Improvements
Continuous developments – Pipeline and Live Projects
Project Audits – Project Support and Mentoring
PM@Siemens
Interfacing with PM@A&D Council
PM
Training
PLM VDM Development Support PLM VDM
Training development
PLM VDM
Training
2007/2008 Achievements
• Project Visibility
• HealthChecks (PMO)
• Retrospectives (PMO)
• Methodology training/adoption
• Certification (PMP)
• ‘Red’ project movement
• Fixed Price projects (LoA)
EMEA PMO 2008/2009
• Self Sufficiency
– Methodology
– HealthChecks
– Retrospectives
• Certification (PMP & Siemens)
• Program Management
• Project Reporting and Escalation -
‘Go Green’
• Compliance
Measuring the impact
• We targeted
• Project ‘Health’ Improvements
• Project Management ‘Issues’
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Schedule Margin Resources Product Overall
Project Red Status
2007 2008 2009 2010
Measuring the impact
53
2007-2010
54
Measuring the impact
2007-2010
EMEA PMO
Pre-Project
Project Acquisition
-Selling Project Management
- Large bid support
Project De-Risking
- LoA
- SOW reviews and approval
- PLM VDM (updates and
training)
- PLM VDM (adherence)
Project Delivery
Project Delivery
- Healthchecks (training/delivery)
- Retrospectives (training/delivery)
- Lessons Learned
- Governance
- Control
- Project Closure
- Success Stories
Project Reporting
- Dashboard (content)
- Top 5 projects
- FP Reports
- myPMO
- NCC
EMEA PMO
Pre-Project
Project Acquisition
-Selling Project Management
- Large bid support
Project De-Risking
- LoA
- SOW reviews and approval
- PLM VDM (updates and
training)
- PLM VDM (adherence)
Project Delivery
Project Delivery
- Healthchecks (training/delivery)
- Retrospectives (training/delivery)
- Lessons Learned
- Governance
- Control
- Project Closure
- Success Stories
Project Reporting
- Dashboard (content)
- Top 5 projects
- FP Reports
- myPMO
- NCC
The C Level
Challenge
Negative
‘Failed projects waste an
organization’s money: for every
US$1 billion spent on a failed
project, US$135 million is lost
forever… unrecoverable’
PMI’s Pulse of the Profession™ 2013
Positive
‘The progressive development
of the organisation’s project
management approach,
methodology, strategy and
decision-making process are
dependent on having a
dedicated entity for project
management’
2012 KPMG report - Business Unusual: Managing projects as usual
Danger
‘55% of respondents reported
that the value of their PMO was
questioned by key stakeholders
and inevitably some of these
‘questions’ were translated in to
‘cancellation’ of the PMO’
ESI report 2012: The State of the Project Management Office: On the Road to the Next Generation
The Issues
Knowledge
Experience
Skills
Awareness
Maturity
3 GOOD IDEAS
The Critical role of PMOs in a global organisation
Ideas
Ideas
‘Don't let anyone tell you that you
have to be a certain way. Be
unique. Be what you feel you
need to be’
Coaching and Mentoring
Coaching of PMO leader Mentoring of project team
Investigation and Guidance
Discovery process to uncover your
PMOs key challenges
Detailed Report with
PMO roadmap defined
Motivation and Understanding
Keynote
Leading Successful PMOs motivational session
Workshop
Your PMO challenges revealed
The PMO journey…
Peter Taylor
www.leadingsuccessfulpmos.com
Twitter: @thelazypm
