Stefan Rank, PMP
Project World November 2005
Orlando, Florida
Business-PMO & IT-PMO
What is the difference?
Does one model fit all ? Where do you want to be?
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Agenda
This is your agenda
You can ask all the questions you want
We have one hour
This is a workshop for you
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This is why you are here!
Project Management organizations (PMO, EPMO, COE for PM) are vital components of all types and sizes of corporations.
Organizationally they are aligned differently based on size of the company and the initial charter when they where established.
This session will focus on the organizational differences of Project Management Offices and the real world challenges that Project Management Offices face based on their organizational alignment in the overall structure of the organization.
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Project Management Office Definition
A shared organizational structure that serves as a repository of information
for project reporting and disseminating best project management practices
A Project Management Office (PMO) is a shared competency designed to
integrate project management practices within an organization.
Sometimes called project office. This is the office or department responsible
for establishing, maintaining and enforcing project management processes,
procedures, and standards. It provides services, support, and certification
for project managers.
Source: www.nitoc.nv.gov/PROJ/projdocs/ATC-SummerSession.pdf
Source: it.csumb.edu/departments/data/glossary.html
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Program Management Definition
Program management is the process of managing multiple on going projects. An example would be that of
designing, manufacturing and providing support infrastructure for an automobile make. This requires hundreds, or
even thousands, of separate projects. In an organization or Enterprise, Program Management also reflects the
emphasis on coordinating and prioritizing resources across projects, departments, and entities to insure that
resource contention is managed from a global focus.
The coordinated management of a portfolio of projects to achieve a set of business objectives is
called program management. Or, a program might refer to an ongoing set of activities internal to
the organization, for example, a Total Quality Management program, workplace safety program,
supplier development program, etc.
Source: http://en.wikipedia.org/wiki/Program_management
Program management is the process of managing a portfolio of multiple ongoing projects. An example would be
that of designing, manufacturing and providing support infrastructure for an automobile make. This requires
hundreds, or even thousands, of separate projects. In an organization or Enterprise, Program Management also
reflects the emphasis on coordinating and prioritizing resources across projects, departments, and entities to
insure that resource contention is managed from a global focus.
Source: http://www.mapnp.org/library/prog_mng/prog_mng.htm
A portfolio of projects selected and planned in a coordinated way so as to achieve a set of defined
objectives, giving effect to various (and often overlapping) initiatives and/or implementing a strategy.
Source: http://maxwideman.com/pmglossary/PMG_P07.htm
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Definitions of Project Management
Project management is a management approach concerned with getting the job done, on time, within budget, and according to specifications
Project Management is the art and culture of getting work done
People responsible for doing something that has never done before – for people who don’t know what they want – who must first predict the unknown, make a plan to complete with the unforeseen, and execute the plan with too-limited resources that they don’t control and who are held responsible for the results, even when miracles are required
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Type of Project Management Offices
Project Management Office
Program Management Office
Program Office
Enterprise Project Management Office
Center of Excellence for Project Management
Project Office
PMO’s for program execution – temporary in nature – dissolved after program completion
Product Management Office
“PMO out of the BOX” in six weeks
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Google & Yahoo result count
Term
Business PMO 426 88
IT-PMO 610 944
Enterprise PMO 924 1510
Project Office 2,050,000 1,490,000
Program Management
Office248,000 240,000
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Business Program Management
Company Strategy
Company Goals
Clearly defined
measurable goals?
Business Programs
Define & Establish
programs that link to
company goals
Projects
Projects are prioritized and
executed to achieve
completion of programs
Tasks
Execution of project tasks to
achieve project completion
Company strategy is defined on
executive management level
Strategy translates into business
programs (Products & Services)
Projects are the building blocks
in the execution of organizational
strategy
Project level experience feeds
back into programs and strategy
Feedback loop is key – Measure
at every level
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Business Program Management
Business drives technology
Business processes are automated by
technology
Technology is enabler for business
success
Technology needs to enable & improve
existing business processes
Technology not for the sake of technology
Time to market drives technology solutions
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Program Management & Project Management
Program Management –
Doing the Right Things
Project Management –
Doing Things Right
Develop and link operational and
strategic plans
Support & enable strategic
planning
Maintain and leverage business
and operational processes
(knowledge)
Define, refine and own project
delivery processes
Define and use metrics and
service level agreements
Operation external to project
delivery
Execute and deliver projects
Ensure triple constraint is met
Deliver business solutions
Execute governance and
control
Reporting and analysis
Operate internal to project
delivery
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Business & IT PMO Charter
CEO level alignment
Tied to CEO performance
Company & Enterprise level scope
Business & product oriented
Drives project pipeline across business functions Cost, Schedule, Quality, Scope
Business analysis function
Supports governance processes
Financial responsibility for capital project cost & benefits and ROI
Business portfolio management
Project Life Cycle
CIO level alignment
Tied to CIO performance
IT Project Pipeline
Technology projects enabling business
Architecture & development & system focus
IT-project managers
IT project management
Interface vs. business process thinking
IT processes improvement, SDLC, Architecture
Business - PMO Charter IT - PMO Charter
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What are the major differences?
Business focus
Organizational alignment
Focus of work
Customer orientation
Product orientation
Daily exposure to business concerns and problems
Integration of business areas
Control function
Business analysis function
PMO
Customer
IT Business
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Is this your day in the PMO?
Stakeholders: Business owners, Executive owners
New product releases & enhancements
Sales & Marketing timelines
Projects driven by product release schedules
Projects driven by vendors & outside parties
Newest product features & enhancements
Product vs. Project
Revenue and cost implications of projects
Project prioritization in a “fast to market” environment
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Organizational Alignment
CIO CEO CFO COO
Technology
• Architecture
• Solutions
• Systems
• Operations
• Databases
• Technology
Blueprint
Business
Product
• Sales
• Marketing
• Logistics
• Governance
Financial
• Accounting
• Financial
planning
• SOX
• Audit
• other controls
Operations
•Customer
• Service
• Call center
• Warehousing
• Engineering
• Facilities
CIO Research reports – Best practices for PMO’s:
At what level does your company employ a project office ? 2% not answered
39% Corporate – strategic
27% Division
27% functional group/business unit
6% local group or organization within function
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Roles and Responsibilities are split
Business requirements
Business process design
Facilitate
Manage project
Coordinate departments
Financial tracking
Overall schedule
Budget
UAT
Business projects
Architecture definition
Technology design
Build technology solution Hardware selection
Develop solution
Integrate systems
Test
IT schedule (Development / operations / Architecture)
Technology selection
Technology projects
Business PMO Information Technology
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Roles and Responsibilities
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The people side
Project management organizations consist of people
People are key to deliver projects
People deliver on tasks in a project (WIFM !)
Highest risk factor: People Don’t like the project
Don’t like the PM
...
Projects create people development opportunities
Projects can be seen as a major change to people Change management is often times forgotten
Business side: New processes – perception of automation is negative
IT: This technology is new – will it prevail? Can it be managed?
Projects can take the security of a departmental structure away
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The business savvy Project Manager
Communicator
Business process understanding
Business process improvement
Business requirements
Product orientation
Technology understanding Systems, Architecture, Development
Application, Testing (unit, integration)
Manages UAT
Adheres to processes and controls
PMI certified
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Factors for organizational alignment
Company size
Maturity and “age” of company
How close for comfort – what do I know about project management
Where does strategic planning happen? Doing the right things & Doing things right !
Independence
Control function
Visibility into work pipeline Project, BAU, Other
Financial Controls
Today – SOX ! Control function – Project management processes enable controls !
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Why Project Management Offices are created
Strategic objectives & goals are not being met
Major business endeavor
Historically driven based on need – in IT -Y2K example (it is all over now!)
Senior management need for control
Project failures – schedules out of control
Cost out of control
Insufficient information on project status
No decision framework
Resource bottlenecks
Need for better controls & visibility
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Motivation for having a PMO
Are we doing the right things?
Are we doing things right?
Where does the money go?
What are we working on?
Why can’t I have this earlier?
Are we on schedule with this?
How does this impact our customers?
What are the dependencies?
Which resources can work on this?
Why is this not done yet?
Why did we loose this account or customer?
Lost opportunities!
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PMO – the CIO perspective (I)
Independent & non-political department
Coordination and management of customers
“People People” – not technologists
Management of expectations & schedule cost, quality
Rational framework for delivery of projects
Balance and scale
Prioritization of efforts
Definition of business solution
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PMO – the CIO perspective (II)
How do I exploit & leverage all the data collected to make informed business decisions
Focus on services to the enterprise
Do not do any business project activities
Technology is my business
The CIO is the technology and information expert
IT focus – I need to succeed with the projects that I am responsible for
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PMO – the Governance Perspective
PMO organizational alignment depends on executive
level management setup (CEO-President-CIO-CFO)
Strategic service department for project execution
Enabler for cross-functional efforts
Driver of new enterprise wide products & projects
Independent check & balance function
Controls around Schedule, Cost, Quality on projects
Definition of processes & project controls
Oversight and tracking of budget and spending for
projects
Real-time objective status reporting
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Business PMO Real World Challenges
Prioritization of programs & projects
Focus projects on customer needs and impacts
Keep cost down
Balance governance and project delivery needs
Schedule Fast to market
Competition’s schedules
Resources & Resource constraints Business resource constraints
IT resource constraints
Quality When you run you stumble more easily
Build quality into the delivery process
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Integration of SDLC and PMLC
Business Process
SDLC
QA
PMLC
Architecture
Integrated
processes
Bringing all elements together !
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The tools that help us
Project
Life Cycle
MS Project
Standard
Office Tools
VisioDashboards
Oracle Financials
A F
OO
L W
ITH
A T
OO
L IS
ST
ILL A
FO
OL
Organizations have implemented tools in hopes of solving business problems, only to discover
that the root cause of the problem ends up being process related.
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Bottom Line
One size does not fit all!
Where will you place your PMO in your organization to be setup for success?
How can your PMO provide value to the organization?
What is it you want your PMO to be when it grows up?
Are you “Doing the right things”?
Are you “Doing things right”?
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Questions ?
Did you get value out of the presentation?
Suggestions ?
Questions ?
E-mail: [email protected]