PMO – The Value Journeyjourneyconsulting.org/yahoo_site_admin/assets/docs/SlidesPMO-The... · PMO Model • Ineffective Project Management Office ... (of Config Buildout) Development

PMO – The Value Journey

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March, 29th 2011

Cindy Donovan, PMP

“How do you eat an elephant?”

“One bite at a time!”

“How do you create a valuable PMO?”

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“One step at a time!”

Today’s Journey

Decide to take a trip Need a PMO

Gather destination ideas & needs Research PMO Models & functions

Determine destination Define PMO Mission

Check the weather Understand organizational culture and current state

Pack Identify Process Management Methods

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Pack Identify Process Management Methods and Tools

Put in your starting point, map the route and start driving

Drive Process, Change & Value

Year 1, Year 2, Year 3 and beyond

Make stops along the way and adjust route where necessary

Measure value, assess lessons learned & drive continuous Improvement

Check the rearview mirror Value Momentum

Gather destination ideas & needs

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The PMO Value Proposition

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Copyright 2008 Forrester, Inc. All Rights Reserved

Framing the Mission of the PMOIn

vo

lve

me

nt

in

Pro

jec

t E

xe

cu

tio

n

Coach

Auditor Fin. Advisor

Enterprise

Standards & Approach

Standards & Approach

Measure Standards & Approach

Measure

Project

Transition

Portfolio

Measure

Portfolio

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Coach Auditor Financial Advisor Enterprise

Mission:

• Share Project Management Best Practices

Tasks:

• Develop Standards & Methodologies

• Facilitate Project Manager Development

Success Metrics:

• Project Management Standards Compliance

• Methodology-Driven Project Delivery Improvement

Mission:

• Create Visibility into project queue performance

Tasks:

• Track & report project status

• Administer stage-gating and mid-project reviews

• Project Execution Post-Mortems

Success Metrics:

• Reduce Incremental Project Funding

• Reduce Controllable Project Failures

Mission:

• Facilitate Project Portfolio Optimization

Tasks:

• Support portfolio definition and asset allocation

• Guide Portfolio prioritization decisions

• Conduct Business Case Realization Audits

Success Metrics:

• Total Portfolio Returns

• IT Strategic Alignment

Degree of Authority over Benefits Realization & Risk Management

Portfolio

Mission:

• Optimize project portfolio, maximize throughput, and Drive Successful Project Delivery

Tasks:

• Oversee Project Managers

• Support Project Planning Process

Success Metrics:

• On-Time Delivery

• On-Budget Delivery

• On-Scope Delivery

Determine Destination

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PortfolioPlanning,

Prioritization

Resource Profile

0

200

400

600

800

1000

1200

1400

1 2 3 4 5 6 7 8 9 10 11 12

Period

Resourc

e L

evel

Test Status

RegressionTestingResultsXMLHTML

Templates forProject Plans and Deliverables

SimplifiedTracking of Progress and Issues

Product Specification

i. Introductionii. Product Overviewiii. Product Requirementsiv. Voice of Customer Analysisv. Technical Documentationvi. Product Configurationvi i. Training Requirements


i. Introductionii. Product Overviewiii. Product Requirementsiv. Voice of Customer Analysisv. Technical Documentationvi. Product Configurationvii. Training Requirements




i. Introductionii. Product Overviewiii. Product Requirementsiv. Voice of Customer Analysisv. Technical Documentationvi. Product Configurationvi i. Training Requirements





ProjectExecution

& Reporting

Pipeline Loading /

Management

ResourcePlanning

Certainty / Payoff - Q2FY06

Ballpark

Ballpark HI

Ballpark MDC

Ballpark UCB

Caesar

Frank

Freebird

Freeworld

Hermes

Impera

Omnibus

Knex

PFLSRising Star

$0

$5

$10

$15

$20

0 0.2 0.4 0.6 0.8 1

Aggregate Project Certainty(Includes Technical and Marketplace Certainty)

No

min

al P

roje

ct

NP

V (

$M

M)

Outside Border: Total Project Cost

Inside Border: Spend Remaining

Washer: Spend to Date

Company ConfidentialLast Updated 28 July 2005

Extend / Defend

Create

Project Request

•Business-driven

•Special Programs

IT Council, Program(s) Steering Committee(s)

PMO

Process Framework

The Mission

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Portfolio & Pipeline

Management

Process Mgmt.

Resource Management

ProjectManagement

Supervisors, Line Managers

Financial Mgmt.

PMOProject Teams

Drive integration of portfolio, project, resource, and financial information to ensure optimal delivery of IT Products and Services aligned with business need.

The Foundation - Pillars of the PMO

Governance Standards and

Best Practices

Coaching, Mentoring &Training

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Project Execution Oversight

Dashboards and Scorecards

Gate Reviews

Project Risk Assessments

Stakeholder Management

Change Management

Master Planning

Benefits Realization - Post Project Review

Alignment with PMBOK

Project Delivery Methodology

Project Management Tools

Standards, Best Practices & Templates

Scope Management

Schedule Management

Cost Management

Resource Management

Quality Management

Lessons Learned Cycle

Knowledge Sharing

PM Community / Forum

PMO Steward Support

Training and Certification Program

PM Expectations

PM Effectiveness Measures

Check the weather – PMO assessment

Starting Point

Culture • Risk Adverse

• Change Resistant

PMO Model • Ineffective Project Management Office – Too low in the organization

• PMs dispersed across organizations

Portfolio Management Non Existent

Governance • Internally Focused

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Governance• Inconsistent ability to execute

• Weak stakeholder network

Standards & Best Practices • Overly complex, outdated project delivery methodology

• Lessons Learned process ad hoc

Coaching, Mentoring & Training • Project managers typically assigned based on available capacity

• Project managers usually multi hatted as design or technical lead and SME

Value Lack of confidence from the company & business in the ability of the IT organization to lead, plan and execute a portfolio of strategic projects.

Pack the tools

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11

Copyright 2009 Planview, Inc. All Rights Reserved

The trip began…

Year 1



• Afraid to escalate

PMO Model • Executive Sponsorship

• PMO elevated to report to CIO


Portfolio Management • Established a project scoring system and portfolio management process balancing risk, cost and return

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Portfolio Managementmanagement process balancing risk, cost and return

• Portfolio Planner Role created

Governance • Standard Project Status Reporting

• Project Risk Review Process

• Defined Project Stakeholder Network

Standards & Best Practices • PMO PMP Certified

• Project Initiation & Project Closure Templates

Coaching, Mentoring & Training

• PM Community forum established

• PMO Website launched

• Microsoft Project Schedule training

Year 1 – Accomplishment Examples

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Year 1 - Lessons LearnedLessons Learned Actions

Struggled with New Platforms Introduce prototype phase to understand technology and business process impacts

Under estimated stabilization Add 3 month standard stabilization timeframe for new platforms

Lack of stakeholder engagement

Enforce governance model and rigid gate 0 compliance

Weak Gate 1 • Implement stakeholder signoff at Gate 1 of business requirements

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requirements

• Add Charter to Requirements scope review

Shortage of critical resources • Targeted hires in skill gap areas

• Implement resource constraint reporting

Complex Project Management Methodology and inadequate tools

• Transform the methodology aligned with industry standards

• Mandate PM tools and provided training and best practices

Lack of escalation of resource issues

Make the environment safe to escalate bad news in a timely fashion

The trip continued….

Year 2

Culture Overcompensating

PMO Model Hybrid

- Applications: Balanced Matrix

- Infrastructure: Strong Matrix

Portfolio Management • Established Project Launch (Kick) Process

• Project Charter Process Improvements

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• Estimating Improvements

Governance • Improved Stakeholder Network governance

• PMO Monthly In-flight Projects Review

Standards & Best Practices • Introduced Prototyping Project framework

• Project Methodology Makeover

• Lessons Learned Template improvements


• PMO Steward Role

• PM Expectations

• PM Forum Improvements

Year 2 – Accomplishment Examples

Project has been Launched via KICK process and in Accept Status in PV.Project Charter complete and approved.Architecture alignment with Enterprise roadmap confirmed.Stakeholder network identified.

Launch the project based on approved Project CharterGate 0: Initation

Gate Compliance Checks:Objective:Gate

Project has been Launched via KICK process and in Accept Status in PV.Project Charter complete and approved.Architecture alignment with Enterprise roadmap confirmed.Stakeholder network identified.

Launch the project based on approved Project CharterGate 0: Initation

Gate Compliance Checks:Objective:Gate

Project Delivery Methodology Makeover

PDX Framework

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Asset Management Tasks completeSponsor agreement that Charter objectives have been satisfied, or revised with approvalLessons Learned CapturedProject Team Celebration taken placeAll Issues and Risks ClosedProject Stabilization Criteria metUpdates to Application portolio are complete

Confirmation from the project, sites, master data, and production support that the system stabilization has been achieved. Confirmation that the sites fully accept the system.

Gate 4A:Stabilization

Formal Business Project Lead Acceptance (of System Test results)Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Operations Service Delivery Ready for Go LiveGo / No Go Meeting ScheduledStabilization Criteria DefinedUser and Support Resources Training is CompleteBusiness Readiness Confirmed - Training Complete, Organization process changes implemented

Confirmation that cutover plans are in place, and all IT components (App, Data, Infrastructure), are ready for go-live. Confirmation that the sites are ready and committed to a successful implementation

Gate 3: Deployment Readiness and Approval

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Application Development Complete or On Plan for Go LiveData Cleanup Complete, Data Loads & Conversions Complete or On PlanInfrastructure Environments On PlanSystem testing is completeFormal Stakeholder Acceptance (of Config Buildout)

Development is Complete, or on plan to support go liveProject is on plan for go-liveSoftware can be migrated into production

Gate 2: Development and Verification

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Project resources are confirmed for the projectFormal Acceptance of Planned ScopeProject Cost, Schedule and Scope is complete, reviewed and base linedDesign is complete (Application, Data and Infrastructure)RM Confirmation that requirements are still aligned w/ Project Charter

Plans are complete for the project schedule, budget, resource needs, communication events, and risk responses.The project Scope and Design are complete and Ready to begin Development

Gate 1: Planning and Design

Stakeholder network identified.Regulatory Impact Assessed.

Asset Management Tasks completeSponsor agreement that Charter objectives have been satisfied, or revised with approvalLessons Learned CapturedProject Team Celebration taken placeAll Issues and Risks ClosedProject Stabilization Criteria metUpdates to Application portolio are complete

Confirmation from the project, sites, master data, and production support that the system stabilization has been achieved. Confirmation that the sites fully accept the system.

Gate 4A:Stabilization

Formal Business Project Lead Acceptance (of System Test results)Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Operations Service Delivery Ready for Go LiveGo / No Go Meeting ScheduledStabilization Criteria DefinedUser and Support Resources Training is CompleteBusiness Readiness Confirmed - Training Complete, Organization process changes implemented

Confirmation that cutover plans are in place, and all IT components (App, Data, Infrastructure), are ready for go-live. Confirmation that the sites are ready and committed to a successful implementation

Gate 3: Deployment Readiness and Approval

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Application Development Complete or On Plan for Go LiveData Cleanup Complete, Data Loads & Conversions Complete or On PlanInfrastructure Environments On PlanSystem testing is completeFormal Stakeholder Acceptance (of Config Buildout)

Development is Complete, or on plan to support go liveProject is on plan for go-liveSoftware can be migrated into production

Gate 2: Development and Verification

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Project resources are confirmed for the projectFormal Acceptance of Planned ScopeProject Cost, Schedule and Scope is complete, reviewed and base linedDesign is complete (Application, Data and Infrastructure)RM Confirmation that requirements are still aligned w/ Project Charter

Plans are complete for the project schedule, budget, resource needs, communication events, and risk responses.The project Scope and Design are complete and Ready to begin Development

Gate 1: Planning and Design

Stakeholder network identified.Regulatory Impact Assessed.

Year 2 - Lessons Learned

Lessons Learned Actions

Projects coming in under budget and behind schedule – resource thrashing

Need effective master planning:

�Resource Management capabilities

� Improved Change management

Charter Estimating being done by wrong group – buy-in missing

�Move estimating into the supply teams (supervisors)

Estimates to Actuals Variance Analysis insufficient

�Need to improve monthly variance cadence and reporting

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Project scope management inconsistent � Improve change management process and governance

Underestimated PM project schedule and budget management skills

Project Execution Fundamentals

training

�cost & schedule management

Lack of business resources understanding project roles & deliverables

�Roles and Responsibilities improvements

�Project Kick off training

Project closure not timely – consuming overhead to monitor and track

� Institute project closure timeframe expectations – performance measure

The trip continues…

Year 3

Culture Transitioning

PMO Model Strong Matrix

Portfolio Management Master Planning

• Resource Supply Management

• Change Management

Governance • Move Gate Review governance to business steering team

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• Improve monthly variance cadence and reporting

Standards & Best Practices • Create flexible paths through Project Methodology tailored to business & project profile

• Roles and Responsibilities improvements

• Schedule Management


•Project Execution Fundamentals training

• WBS / Schedule Management

• Resource Management

•Develop PM Career Path model

•All PMO members will be PM practioners

•Project Kickoff Training with Business & IT

Year 3 – One of the Focus Areas

�List of projects�Driven business programs and ASR�Sequenced by ROI�Cross-project dependencies captured (IT and Business)

�Internal labor capacity outlook�Depicts time-phased supply of internal skills to work on Investment Projects

10

Business and IT Projects Driven by the EBITDA ProgramTotal Costs: Internal IT Labor & External Costs

Note: No provision or allowance yet provided for Sales / Use Taxes nor FX

Projects

CM

I

De

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l

Eq

uip

me

nt

EH

S

Fin

an

ce

HR IT

Le

ga

l

MF

AP

S

Pro

cure

men

t

RD

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&I,

IP,

& T

C&

L

Rerg

Su

pp

ly C

hain

Sa

les &

Se

rvic

e

Tota

l

DMS003-1 : Equipment Mfg Changes 1,482

DMS003-2 : Equipment Mfg Changes 879EHS002 : MSDS Replacement 139

FI001 : Implement BW-SEM/BPS Module 1,808FI002 : Implement SAP for Practicworks - US 736

FI003 : Equip.Rev.Rec, R&D Reporting - Implement SAP PS 998FI005: Migrate Practiceworks International to SAP 705

FI007 : FCW--> SAP Conversion 884

HR003 : HR SAP Poliferation 2,728IT011: Complete Mainframe retirement 1,249

IT013 : Optimize Managed Server Services \ Data Center 1,396IT015 : Optimize Server Hardware Architecture 738

PR004 - Corporate Spend Control – Strategy 243RDE001 : Move R&D infra under IT server services-Shanghai 2,384

RDE002 : Replacement of EQDS/Teamcenter (infrastructure) 61

RDE005: Build out Centralized Global QA test infrastructure 37RDE008 : Synergy and Focal Point 26

RDE009: Softw Conf Mgnt Expansion 26SC003 : Replace ICOM with SAP 1,230

SC004 : Replace SUN with SAP 1,490

SC007A - Logistics NW Changes - US1 397SC007B - Logistics NW Changes - US2 314

SC007C - Logistics NW Changes - nonUS major 347SC007D - Logistics NW Changes - minor 40

SC007D - Logistics NW Changes - minor 40

Subtotal 2,361 139 7,851 2,728 3,383 243 2,534 1,138 20,377

Contingency 30% 30% 15% 15% 15% 30% 30% 30%Total w\ Contingency 3,070 181 9,028 3,137 3,891 316 3,294 1,480 24,396

20

2008 Internal Labor Utilization Forecast

111 111 111 111 111111 111 111 111

Demand Exceeds Supply

-5 -3

110

10

43

269

Apr-08

-4

103

10

46

255

May-08

0

89

10

41

247

Jun-08

0

81

10

38

237

Jul-08

16

60

10

33

231

Aug-08

27

47

10

25

221

Sep-08

33

37

10

24

215

Oct-08

50

-15

1019

215

Nov-08

57

21

10

25

215

Dec-08

Available capacity

CHIP IT Demand

KIR

Management and Admin

IT Investment Projects

16

Demand exceeds Supply

Lab

or

Capacity

(F

TE

)

Based on the current plans some capacity becomes available in H2

Project Demand Resource Supply

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�Project demand expressed in-phased requirements for:

�Internal Skills �Funds availability

�Supply / availability of �Internal Skills �Funds�External Supply assumed not to be a constraint

5

8

10

5

5

5

5

5

10

1

3

1

5

31

1

Apr-08

16

Aug-08

31

12

1 13

1

GDW

Helpdesk/Desktop

HR

Master Data Management

4

7

4

3

4

3

Non SAP ERP

OTC

57

Dec-08

Finance

5

2

22

2

12

7

4

3

42

50

Nov-08

5

2

May-08 Jun-08 Jul-08

1

11

22

1

2

12

1

27

Sep-08

31

21

2

11

7

311

33

Oct-08

1

Project Manager

R&D

Sales and Marketing

Service

Telecom/Network

Architects

Manufacturing

TAS/BASIS

System Admin

5

8

10

5

5

5

5

5

10

1

3

1

5

31

1

Apr-08

16

Aug-08

31

12

1 13

1

GDW

Helpdesk/Desktop

HR

Master Data Management

4

7

4

3

4

3

Non SAP ERP

OTC

57

Dec-08

Finance

5

2

22

2

12

7

4

3

42

50

Nov-08

5

2

May-08 Jun-08 Jul-08

1

11

22

1

2

12

1

27

Sep-08

31

21

2

11

7

311

33

Oct-08

1

Project Manager

R&D

Sales and Marketing

Service

Telecom/Network

Architects

Manufacturing

TAS/BASIS

System Admin

383635 3927 32 3428 29 30 31 33

Q3

37

7/28/08

Quarter

Activity

Project 1

Project 6

Project 5

Project 4

Project 3

Project 2

Project Roadmap

MASTER PLANNING -Overall Supply /

Demand Balancing Approach

The trip summary so farYear 1 Year 2 Year 3



• Afraid to escalate

Overcompensating Transitioning

PMO Model • Executive Sponsorship

• PMO elevated to report to CIO


Hybrid

- Applications: Balanced Matrix

- Infrastructure: Strong Matrix

Strong Matrix

Portfolio Management

• Established a project scoring system and portfolio management process balancing risk, cost and return

• Portfolio Planner Role created

• Established Project Launch (Kick) Process

• Project Charter Process Improvements

• Estimating Improvements

Master Planning

•Resource Supply Management

•Change Management

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Governance • Standard Project Status Reporting

• Project Risk Review Process

• Defined Project Stakeholder Network

• Improved Stakeholder Network governance

• PMO Monthly In-flight Projects Review

• Move Gate Review governance to business steering team

• Improve monthly variance cadence and reporting

Standards & Best Practices

• PMO PMP Certified

• Project Initiation & Project Closure Templates

• Introduced Prototyping Project framework

• Project Methodology Makeover

• Lessons Learned Template improvements

• Create flexible paths through Project Methodology tailored to business & project profile

• Roles and Responsibilities improvements

• Schedule Management


• PM Community forum established

• PMO Website launched

• Microsoft Project Schedule training

• PMO Steward Role

• PM Expectations

• PM Forum Improvements

• Project Execution Fundamentals training

• WBS / Schedule Management

• Resource Management

• Develop PM Career Path model

• All PMO members will be PM practioners

• Project Kickoff Training with Business & IT

Where the journey is going

Strategic “Destination”

Culture • Process Driven, results oriented with a focus on execution• Respected and sought after

PMO Model • PMO Model – Strong Matrix

• Federated PMOs across the business

Portfolio Management Portfolio Management processes and tools that are leveraged by the business to achieve maximum return on investments

Governance Business ownership of projects

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Governance

Standards & Best Practices

• Standards and Best Practices adopted by the company

• Lean with Quality

• Strong lessons learned process


• Ability to offer Project Managers and / or Project Manager coaching and training to the company

• PMP Certified PMs

Value Consist, repeatable project delivery – on time, on budget, on scope with quality – that satisfies expected business benefits that match executive expectations

The PMO Value Proposition

Value Momentum

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Copyright 2008 Forrester, Inc. All Rights Reserved

The PMO Value Journey….

….prove the Value one mile

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….prove the Value one mile at a time!

Documents

PMO – The Value Journeyjourneyconsulting.org/yahoo_site_admin/assets/docs/SlidesPMO-The... · PMO Model • Ineffective Project Management Office ... (of Config Buildout) Development