Oh no - PMOmydlc.com/pmi-mn/PRES/2007B08_Vinje_PMO.pdf · PMO Survey • Out of 450 organizations surveyed, 67% have PMO’s • 50% state that PMO has improved project performance

© 2005 trissential. All Rights Reserved.1

PMI - MinnesotaAugust 14, 2007

Oh no - PMO

Presented by: Michael Vinje - PMP

[email protected]


Agenda

• Presentation Objective• PMO Background & Survey• What The Experts Said• PMO Context• PMO Negative Forces• PMO Improvement• Sample PMO Organization


Objectives

• Get you thinking about PMO value• Give you some perspective about what’s

going on out there• Give you insight and examples for PMO

improvement


PMO Background

• Definition– PMBOK: A project office may operate on a

continuum from providing support functions to project managers in the form of training, software, templates, etc. to actually being responsible for the results of the project.


PMO Survey

• Out of 450 organizations surveyed, 67% have PMO’s

• 50% state that PMO has improved project performance

• The longer you have had a PMO, the better the success –37% in first year; 62% in second year; 65% by fifth year

• Top two reasons to implement a PMO– Improve project success rate– Implement standard practices

Source: PMI/CIO


PMO Top Challenges

Source: PMI/CIO


Top 5 Common PMO Practices

• Responsibility for process and project reporting and tracking

• Executive support• Drive consistency and repeatability across

similar projects• Project management training and

mentoring• Project review and post-mortems –

capture and incorporate lessons learned

Source: PMI/CIO


Implementing a PMO

• What did the experts recommend?• What really happened?• Why did it happen?• A better way?

© 2005 trissential. All Rights Reserved.

Typical PMO Implementation

Project Office

Managers Directors

Project Resources & Team’s

Executives

Typical GoalsCenter of ExcellenceOrg PM MaturityCentral PM Staffing OrgEPM Tool AdministrationOrganizational Training

Typical ApproachOrg AssessmentsDefine all Roles/ResponsibilitiesDefine & doc all processesTrain all PM’sRollout big heavy PM & SW

templates, methodologies & EPM tool

Goal: Enterprise Adoption


Typical PMO Implementation

Projec

t Offic

e

Managers Directors


Executives

Typical OutcomesLack of InfluenceViewed as Bottle NeckIncomplete AdoptionROI QuestionsKeeper of Templates & Admin

Incomplete Adoption


PMO Negative Forces

Lack of Skills

People

Process

Process

People

Tools

Tools

PMO Maturity

Governance

Teams

Unwillingness

Fear

No Standard

Too Many

Improper

None

Config

Training

Lack of Collaboration

Lack of Information

Unreal Expectations

No Support

No Discipline

No Value

None

No Reqs

Training


Tactical PMO Approach

Project Office

Managers Directors


Executives

Tactical (Initial) GoalsImprove Measurement & ControlImprove Budget & Est. ProcessObjective Resource ManagementEnable key organizational projectManage Executive Portfolio

Tactical ApproachMeasurement & Control Planning & EstimatingStrategic ProgramHigh Risk AreaBudget Cycle

OutcomesMeasurable ROI earlyMitigate Org. RiskSuccess StoriesExecutive Support Supplemental PM Maturity Begin Org. Change/Adoption

Measu

remen

t & C

ontro

l

Hig

h R

isk

Prog

ram Planning & Estimating

Strategic Goal


InitiatingOrganizationCommitment

InitiatingOrganizationCommitment

PMO Approach Focus

PlanningProcessesScope PlanningScope DefinitionActivity DefinitionResource PlanningActivity SequencingAct. Duration EstimatingCost EstimatingSchedule DevelopmentCost BudgetingCommunication PlanningRisk IdentificationQuality PlanningStaff AcquisitionProcurement PlanningProj. Plan Develop

PlanningProcessesScope PlanningScope DefinitionActivity DefinitionResource PlanningActivity SequencingAct. Duration EstimatingCost EstimatingSchedule DevelopmentCost BudgetingCommunication PlanningRisk IdentificationQuality PlanningStaff AcquisitionProcurement PlanningProj. Plan Develop

ControllingProcessesPerformance ReportingOverall Change ControlScope ControlQuality ControlSchedule ControlRisk Response ControlCost Control

ControllingProcessesPerformance ReportingOverall Change ControlScope ControlQuality ControlSchedule ControlRisk Response ControlCost Control

ExecutingProcessesProject Plan ExecutionInfo DistributionTeam DevelopmentSource SelectionQuality AssuranceScope VerificationContract Admin

ExecutingProcessesProject Plan ExecutionInfo DistributionTeam DevelopmentSource SelectionQuality AssuranceScope VerificationContract Admin Closing

ProcessesContract CloseoutAdministrative Closure

ClosingProcessesContract CloseoutAdministrative Closure

Source: PMI PMBOK


PMO Tactical Approach

• Walk the walk, call for the ball• People before process, process before tool, low

standardization• Define/Doc simple controlling processes first• Choose target program/project to implement

controlling processes on• Standardize milestones between plans and time

system• Perform process manual to start • Manual effort will drive out process detail &

learnings for near term and EPM tools


PMO Budget Model

Effort of Projects Approved

Hou

rs /

Dol

lars

Time = Yearly Budget Cycle

Effort of Project Office

How is your Project Office budget determined?

Do you get 5%-10% of the budget of the approved projects?

Do the PM’s report to you?

Do you have industry data that supports this?

“The Cost of Control”


PMO Context

Effective Strategy & Planning

Architectural & Quality Guidance

Prioriti

zed P

ortfol

io

Efficient Management

Portfol

io Hea

lth

PM Best Practice Exceptional Execution

Product Scorecard

Project Health

Business Excellence

BenefitValidation


E1 - Practices

Bus & ITExecutives

TechnologyArchitecture

BusinessArchitecture

ProgramArchitecture


E2 - Practices

PortfolioMgmt

ProgramMgmt

ProjectMgmt


E3 - Practices

BusinessAnalysis

QualityAssurance

RequirementsEngineering

ChangeMgmtSoftware

Development


PMO Context

BusinessAnalysis

QualityAssurance


ChangeMgmtSoftware

Development

EM

PA TABA

Prt-M

Prg-M Prj-M

QM

QARM

DMSM


Eliminate Negative Forces

• Assess– Findings– Insights– Recommendations– Baseline

• Plan Improvement– Roadmap– Resources– Detailed SOW

• Execute Improvement– Multiple Phase


Assessment

BusinessAnalysis

QualityAssurance



Assessment

• People– Ability to Adopt– Willingness to Adopt

• Process– Standardized– Measured– Controlled– Improved

• Tools– Configured– Trained– Used


Assessment (Maturity Level)

Controlled Managed Integrated ExpertOperational

Functional OptimizedEmergingNone, Planned

Desired, Undesired

Unstructured GovernanceIncorporatedProcess

Roles Identified

Structured & Standardized

Defined by Process Staffed Training Emerging

Talent

Measured

ToolsUsage

Defined by Process

Usage Governed by Process

Unified with other /Tools

KnowledgeBase

Training Material

Analysis & Trends

ToolsetIdentified

Integration Points

Combine by Process

Cooperate by Process

Collaborate by Process Strategic InputIdentified

Management Directed Actions Governance is Regulated Prioritized Actions Strategic PlanningReactive Team

Verbal / Charter Vision, Mission & ValuesDefinition

Disciplines & Capabilities

DefinedSLAs/OLAs Service Level

Mgmt

Maturity

Cop

eten

cies


Assessment (Results)

BusinessAnalysis

QualityAssurance

RequirementsEngineering Software

Development


Assessment (Results)


ChangeMgmtSoftware

Development


Assessment (Deliverables)

ChangeMgmt

EM

PA TABA

Prt-M

Prg-M Prj-M

QM

QARM

DMSM

Department 1

Department 2

Department 3 Department 4 Department 5

Department 6

• Organizational Study• Integration Implications

• Findings Deck• Insights• Recommendations• Executive Summaries

• Capability Maturity Baseline


Plan Improvement (Deliverables)

QualityAssurance

• Maturation Plan• Environmental Forces Diagrams

• Maturation Roadmap• Environmental Forces

• Roles & Resources• Statement of Work


Execute ImprovementP

M A

sses

smen

t

Foundation, Standardization,

Education

Phase 1

Project Communication & Oversight

Communication Plan PM & SD Alignment Standardize Lifecycle PM Process Update PM Estimating, Scheduling, Controlling Education & Training Yearly Planning Process Improvement

Control & Plan Processes Tool Standardization Planview Upgrade M & C Reporting Hub

Process / Tools, Improvement

Process / Tools Integration

Phase 2 Phase 3

Institutionalize Planning & Controlling Processes Continuous Process Improvement Operationalize Enterprise PM Tools

Tool Upgrade

M&C Reporting Hub


Sample PMO Mission Statement

The purpose of the PMO is to enable business strategies and IT project execution by improving project management capability.

This capability will be measured to ensure efficient delivery and quality project results.

Business Strategy

IT Project Execution

Project Management Capability

Project Alignment

PerformanceReporting

Methods, Process, Tools

Measurement Controls


Sample PMO VisionResponsibilities

PM Processes

PM Tools & Templates

PM Professional Development

PM Professional Development

• PM Process Standardization & Improvement

• Strategic/Yearly Planning & Budgeting Processes

• Portfolio Management Processes

• PM Process Compliance

• Project/Program/Portfolio Process Integration

• PM Guidelines & Templates

• LENET, Planview, Reporting dB Administration & Expertise

• MS Project/Planview Integration (M&C Hub)

• PM Knowledge Management and Experience Repository

• PM Education, Training & Certification

• Project & Program Management Experts

• Consulting and Mentoring

• Project Recovery and Corrective Actions

• Program/Project Execution


Sample PMO Vision

Performance Dashboards

Objectives

PM Processes& Controls

Measurement& Reporting

Product Development (SDM)

Guidance & Priorities

Strategy Execution

Products

Leadership

Initiate, Plan, Execute, Control, Close

DesignRequirements Develop Test Install

Project Management Execution (PM)

PMO Our Focus


Thank You!

• Questions?

Documents

Oh no - PMOmydlc.com/pmi-mn/PRES/2007B08_Vinje_PMO.pdf · PMO Survey • Out of 450 organizations surveyed, 67% have PMO’s • 50% state that PMO has improved project performance