® Rad and Levin, 2004 1 Advanced Project Management Office: A Necessity for Today’s Global, Complex Projects Dr. Ginger Levin Project Management Consultant

® Rad and Levin, 2004 1

Advanced Project Management Office:

A Necessity for Today’s Global, Complex Projects

Dr. Ginger Levin

Project Management ConsultantAdjunct Professor – University of Wisconsin-Platteville

Lighthouse Point, Florida, USA954-783-9819

954-783-9235 (fax)[email protected]


Presentation Overview

Motivations to Establish a PMO

PMO Functions – Project and Enterprise

Determining Functions to Perform

PMO Implementation


The Project Management Office is: The organizational entity with full-time

personnel to provide a focal point for the discipline of project management

It may be called a: Project Office Project Support Office Program Management Office Project Management Group Project Management Center of Excellence Directorate of Project Management

Definition of a PMO


The Increased Importance of a PMO

The functions of the PMO have evolved: It is not just an organization to provide support for

scheduling and monitoring activities on a single project

It is becoming an essential component for the future success of the organization

It provides services and organizational focus in core and supporting areas of project management


The PMO helps to manage the organization’s future through: An emphasis on ensuring consistency and uniformity

in projects An organizational desire to excel An enterprise focus on improvement in project

management competency A reduction in project overruns An increase in the delivery speed of projects An increase in customer satisfaction

Reasons to Establish a PMO


PMO Goals

Set Industry Standards

Show Higher Corporate Profits

Integrate Project Management into the Organization

Improve Divisional Project Management Performance

Have Competent and Productive Project Teams

Implement Consistent, Formalized Project Management

Finish this Project on Time/Budget

Fun

ding

an

d C

omm

itmen

t

Org

aniz

atio

nal R

eco

gniti

on






PMO Implementation


PMO Functions

Project-Focused Consult Mentor Augment

Enterprise-Oriented Promote Archive Practice Train


Project-Focused Functions

Augment Fill the gaps in team resources

Mentor Work side by side with novice team members

Consult Provide occasional validation and assistance


Project Areas of Assistance

Standards for managing projects

Standardized report forms PM software Proposal development

methodology Project start-up

assistance Charters and scope

statements Kickoff meetings

Project risk assessment Project visibility room Project requirements

changes Project workbook or

library Timesheets Administrative assistance Project reviews Issue resolution Project closeout support


Enterprise objectives have more long-term effects and include: Promoting consistency and uniformity in

project management Archiving project performance data Providing a centralized point of reference for

the project management practice Imparting specific skills and knowledge

through training to project professionals

Enterprise-Oriented Functions


Enterprise-Oriented Functions

Promote PM culture advocate

Archive Clearinghouse for project performance information

Practice Best practices and state-of-the-art procedures and

guidelines Train

Ongoing training in PM


Enterprise Areas of Performance

Estimating Project selection Data integration Reward and

recognition

Project audits Communication

facilitation Customer satisfaction






PMO Implementation


The organization’s goals affect the functions that the PMO will perform: The PMO can change the direction of the

organization to one of enterprise project management

It also can primarily assist individual projects It can serve as the interface between the

project managers and others in the organization

Organizational Goals and PMO Functions


The PMO and Maturity Levels

Level 1 – Supports One Project

Level 2 – Supports Several Projects in a Program

Level 3 – Supports a Division/Department

Level 4 – Supports the Entire Organization

Level 5 – Supports Business Strategy and Enterprise Resource Allocations


Functions of a PMO according to PMI’s PMO SIG: The organizational structure, methodologies,

processes, procedures, controls, tools, people, training, and other components serve to integrate existing projects, manage the portfolio, control functions, and successfully deliver the organization’s business objectives

The PMO at Level 5


PMO Activities

Mature Organization

Crisis Management Mode

Enterprise Functions






PMO Implementation


Phase 1 - Define the Goals for the PMO

Assign a lead for the initiative This individual will require the skills and ability to

communicate and effectively negotiate with senior management

Identify organizational constraints and assumptions Definitions and terms to establish a common

language Business processes and procedures that all projects

must use Organizational and project metrics


Phase 1 - Define the Goals of a PMOContinued

To define the goals: Gather problem analysis information with a

focus on business needs Determine the root causes of troubled

projects Assess results from maturity assessments Analyze the gaps

Then list the goals and the prioritized business needs


Phase 2 – Obtain Organizational Support

Create a Communications Plan to determine: Is the PMO of sufficient importance that a formal

announcement by the sponsoring executive is needed? What type of communication media describing the PMO

should be used? Are there any organizational entities that will not be

receptive to having a PMO, the functions it provides or the authority it exercises? What special orientation is needed for them?

Should there be a meeting with all organizational entities? Individually or as a group?


Phase 2 – Obtain Organizational Support Continued

Create a presentation for an orientation that addresses: Why is a PMO being created? What are the objectives of the PMO? What benefits will the PMO provide? How will the PMO and organizational entities interact? What is the frequency/schedule for the interactions? What will organizations need to provide to the PMO? What will the PMO provide to organizational units?



Prepare a PMO implementation plan and develop organization-specific PM procedures: In all areas of project management For all divisions

Use the plan as a basis for: Promoting Training Consulting Mentoring Augmenting Disseminating Archiving



Present a realistic schedule for PMO results: Project-level PMO

Three Months – One Year

Division-level PMO One – Three Years

Enterprise-oriented PMO Three – Seven Years



Develop implementation milestones: Metrics for success evaluation Milestones and metrics

Short term, three months Mid term, three – six months Long term, beyond six months



Write a Charter for the PMO including: Goals and objectives Responsibilities/authority Assumptions Constraints Major risks Major milestones Approvals


PMO Charter

Director, PMO Phone Fax E-Mail

VP of Projects Phone Fax E-Mail

Objectives

Scope

Assumptions

Constraints

Major Risks

Major Milestones

Approvals:



Reach agreement and gain commitment: Provide an initial estimate of the PMO’s budget Estimate the number of beneficiaries and

organizational coverage Outline the schedule and tasks needed to set up the

PMO Recommend the actions the sponsoring executive

will need to take to support the effort See whether a formal presentation and a special

announcement are required


Phase 3 – Define the Functions

Identify the basic functions of the Project Management Office: Project-focused functions Enterprise-oriented functions Functions may be phased in over time


Phase 3 – Define the FunctionsContinued

Define the scope (limits) of the PMO with options such as: All organizational units or only certain units All programs and projects or just a subset of

certain projects, e.g. just high risk, high budget

The complete project life cycle or only support of concept phase and business case but not implementation


Phase 3 - Define the Functions Continued

Decompose the items identified Begin with a set of initial functions that will

solve the highest priority problems and contribute most to the business improvements expected and that require the least investment

Set reasonable expectations After the PMO is operational and gains

support, then expand its scope


Phase 4 – DefineRoles, Responsibilities and Interfaces

Define the roles and responsibilities of the PMO: Vice President of Projects PMO Director PMO Staff Members

Determine roles and responsibilities relative to: Project Managers Functional Managers


Phase 4 – DefineRoles, Responsibilities and Interfaces

Continued

Define the interfaces with other organizational entities List those entities with which the PMO will interact:

Internal organizations External organizations

For each entity above identify: Direction that will be received from the entity Direction that will be given to the entity Information that will be provided to the entity Information that will be received from the entity


Phase 4 – Define Roles, Responsibilities and Interfaces

Continued

Determine where in the organization the PMO should report: List advantages, disadvantages, challenges

and critical success factors associated with each option

Discuss and negotiate options with the sponsoring executive


Phase 4 – Define Roles, Responsibilities, and Interfaces

Continued

U n it A 1

U n it A 2

U n it A 3

D ivis ion A D ivis ion B D ivis ion C

U n it D 1

S u b -U n it D 2 1

S u b -U N it D 2 2

S u b -U n it D 2 3

P ro jec t X

P M O ?

P ro jec t Y P ro jec t Z P M O ?

S u b -U n it D 2 4

U n it D 2 U n it D 3 U n it D 4 P M O ?

D ivis ion D P M O ?

Th e E n te rp rise

Determine the PMO placement


Phase 5 - Identify the PM Processes and Tools

Describe internal and external project management processes and tools the PMO will use:

Internal PMO FunctionsFunction Processes Tools

Risk Management

Quality Assurance

Change Management

Schedule Management

Financial Management

Supplier Management


Phase 6 – Estimate the Resources

Several techniques can be used: A top-down or analogous estimate —

appropriate when comparing to a PMO with another unit of similar scope and function

A bottom-up estimate based on the functions and interfaces to provide the most accurate estimate

An affordability estimate, based on the overall budget available, provides a limit as to what can be provided with a limited budget


Phase 6 – Estimate the ResourcesContinued

Promote Archive Practice T rain T rain Consult Mentor Consult Mentor

Augment

Scope - - - - - - -

Cost - - - - - - -

Quality - - - - - - -

Schedule - - - - - - -

Risk - - - - - - -

Contract - - - - - - -

Integration - - - - - - -

Reporting - - - - - - -

Communications - - - - - - -

Team Relations - - - - - - -

Client Relations - - - - - - -

Vendor Relations - - - - - - -

Cost of the infrastructure for:



PM

O F

un

din

g

1 2 3 4 5

Maturity Rating

Consider the Organization’s Maturity Rating:



1 2 3 4 5

Maturity Rating

To

tal C

ost

Implicit

Explicit

Determine Project Performance Costs:



PMO Cost Estimates

Labor Estimated based upon functions to be performed, interfaces and processes and tools.

Labor costs by month

Travel Where there are geographically-dispersed projects, travel may be required. Identify all locations where travel is anticipated, the number of trips to make, length of trips and the number of individuals making the trips.

Travel costs by month

Facilities Facilities include costs for use of office resources or costs for set up of home offices. Furniture, telephone, and computer connections make up the majority of this budget item.

1. Startup facility costs

2. Recurring monthly costs

Tools/

Processes

This category includes hardware costs, software, site license fees, etc.



Suppliers For services of subcontractors or other outsourced entities.




Phase 7 - Get Budget and Approval to Start

Obtain executive approval: Convince the decision-makers based on sound

research as outlined in the previous phases: Be thoroughly prepared with a complete knowledge

of your planning data Anticipate questions and be prepared to defend your

logic

Finalize operating procedures: Include documentation of the outputs from the

previous phases that is approved by the stakeholders


Phase 8 – Staff the PMO

Acquire the individuals Start with a

understanding of the functions to be performed

Ensure staff have expertise to gain early confidence and acceptance

Orient and train the individuals to the: Organization Business processes PMO objectives, plans

and success factors Functions to perform

and tools to use


Advanced Project Management Office:

A Necessity for Today’s Global, Complex Projects


References

Advanced Project Management Office, by Parviz F. Rad & Ginger Levin, CRC Press, 2002

Achieving Project Management Success Through Virtual Teams, by Parviz F. Rad & Ginger Levin, J. Ross Publishing, 2003

Assuring Project Success With Metrics-Based Management, by Parviz F. Rad & Ginger Levin, In Preparation

People Skills for Project Managers, by Steven W. Flannes & Ginger Levin, Management Concepts Press, 2001

Project Estimating and Cost Management, by Parviz F. Rad, Management Concepts Press, 2002

Documents

® Rad and Levin, 2004 1 Advanced Project Management Office: A Necessity for Today’s Global, Complex Projects Dr. Ginger Levin Project Management Consultant