PMI - Minnesota August 14, Oh no - PMO. Presented by: Michael Vinje - PMP.
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1 PMI - Minnesota August 14, 2007 Oh no - PMO Presented by: Michael Vinje - PMP 1 mvinje@trissential.com 2005 All Rights Reserved.
2 Agenda Presentation Objective PMO Background & Survey What The Experts Said PMO Context PMO Negative Forces PMO Improvement Sample PMO Organization 2
3 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 3
4 Definition PMO Background 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. 4
5 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 5
6 PMO Top Challenges Source: PMI/CIO 6
7 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 7
8 Implementing a PMO What did the experts recommend? What really happened? Why did it happen? A better way? 8
9 Typical PMO Implementation Typical Goals Center of Excellence Org PM Maturity Central PM Staffing Org EPM Tool Administration Organizational Training Executives Project Office Typical Approach Org Assessments Define all Roles/Responsibilities Define & doc all processes Train all PM s Rollout big heavy PM & SW templates, methodologies & EPM tool Managers Directors Goal: Enterprise Adoption Project Resources & Team s
10 Typical PMO Implementation Typical Outcomes Lack of Influence Viewed as Bottle Neck Incomplete Adoption ROI Questions Keeper of Templates & Admin Executives Project Office Managers Directors Incomplete Adoption Project Resources & Team s
11 PMO Negative Forces Governance People Process Tools Lack of Collaboration No Support None No Discipline Lack of Information No Reqs Unreal Expectations No Value Training PMO Maturity No Standard Lack of Skills None Unwillingness Too Many Config Improper Fear Training Teams People Process Tools 11
12 Tactical PMO Approach Tactical (Initial) Goals Improve Measurement & Control Improve Budget & Est. Process Objective Resource Management Enable key organizational project Manage Executive Portfolio Tactical Approach Measurement & Control Planning & Estimating Strategic Program High Risk Area Budget Cycle Managers Measurement & Control Executives Project Resources & Team s Project Office High Risk Program Strategic Goal Planning & Estimating Directors Outcomes Measurable ROI early Mitigate Org. Risk Success Stories Executive Support Supplemental PM Maturity Begin Org. Change/Adoption
13 PMO Approach Focus Initiating Organization Organization Commitment Commitment Planning Processes Scope Scope Planning Planning Scope Scope Definition Definition Activity Activity Definition Definition Resource Resource Planning Planning Activity Activity Sequencing Sequencing Act. Act. Duration Duration Estimating Estimating Cost Cost Estimating Estimating Schedule Schedule Development Development Cost Cost Budgeting Budgeting Communication Communication Planning Planning Risk Risk Identification Identification Quality Quality Planning Planning Staff Staff Acquisition Acquisition Procurement Procurement Planning Planning Proj. Proj. Plan Plan Develop Develop Executing Processes Project Project Plan Plan Execution Execution Info Info Distribution Distribution Team Team Development Development Source Source Selection Selection Quality Quality Assurance Assurance Scope Scope Verification Verification Contract Contract Admin Admin Controlling Processes Performance Performance Reporting Reporting Overall Overall Change Change Control Control Scope Scope Control Control Quality Quality Control Control Schedule Schedule Control Control Risk Risk Response Response Control Control Cost Cost Control Control Source: PMI PMBOK Closing Processes Contract Contract Closeout Closeout Administrative Administrative Closure Closure
14 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
15 PMO Budget Model 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? Hours / Dollars Effort of Projects Approved Effort of Project Office The Cost of Control Time = Yearly Budget Cycle
16 PMO Context Effective Strategy & Planning Prioritized Portfolio Portfolio Health Benefit Validation Architectural & Quality Guidance Product Scorecard Project Health Efficient Management PM Best Practice Business Excellence Exceptional Execution 16
17 E1 - Practices Bus & IT Executives Program Architecture Business Architecture Technology Architecture 17
18 E2 - Practices Portfolio Mgmt Program Mgmt Project Mgmt 18
19 E3 - Practices Business Analysis Quality Assurance Requirements Engineering Software Development Change Mgmt 19
20 PMO Context EM PA BA TA Business Analysis Quality Assurance Prt-M QM Prg-M Prj-M Requirements Engineering Software Development Change Mgmt RM QA DM SM 20
21 Assess Eliminate Negative Forces Findings Insights Recommendations Baseline Plan Improvement Roadmap Resources Detailed SOW Execute Improvement Multiple Phase 21
22 Assessment Business Analysis Quality Assurance Requirements Engineering 22
23 People Ability to Adopt Willingness to Adopt Process Standardized Measured Controlled Improved Tools Configured Trained Used Assessment 23
24 Assessment (Maturity Level) Emerging None, Planned Desired, Undesired Operational Functional Optimized Controlled Managed Integrated Expert Definition Verbal / Charter Disciplines & Capabilities Defined Vision, Mission & Values SLAs/OLAs Service Level Mgmt Process Unstructured Structured & Standardized Governance Incorporated Measured Analysis & Trends Roles Tools Identified Toolset Identified Defined by Process Usage Defined by Process Staffed Usage Governed by Process Training Material Unified with other / Tools Training Emerging Talent Knowledge Base Copetencies Integration Points Identified Combine by Process Cooperate by Process Collaborate by Process Strategic Input Management Reactive Team Directed Actions Governance is Regulated Prioritized Actions Strategic Planning Maturity 24
25 Assessment (Results) Business Analysis Quality Assurance Requirements Engineering Software Development 25
26 Assessment (Results) Requirements Engineering Software Development Change Mgmt 26
27 Assessment (Deliverables) Findings Deck Insights Recommendations Executive Summaries EM Department 1 PA BA TA Organizational Study Integration Implications Department 6 Department 2 Prt-M QM QA Prg-M Prj-M Department 3 Department 4RM SM Department 5 DM Capability Maturity Baseline Change Mgmt 27
28 Plan Improvement (Deliverables) Maturation Plan Environmental Forces Diagrams Maturation Roadmap Environmental Forces Quality Assurance Roles & Resources Statement of Work 28
29 Execute Improvement Phase 1 Phase 2 Phase 3 PM Assessment Foundation, Standardization, Education Communication Plan PM & SD Alignment Standardize Lifecycle PM Process Update PM Estimating, Scheduling, Controlling Education & Training Yearly Planning Process Improvement Process / Tools, Improvement Control & Plan Processes Tool Standardization Planview Tool Upgrade Upgrade M & C Reporting Hub M&C Reporting Hub Institutionalize Planning & Controlling Processes Continuous Process Improvement Operationalize Enterprise PM Tools Process / Tools Integration Project Communication & Oversight 29
30 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. Project Alignment Business Strategy IT Project Execution Methods, Process, Tools Performance Reporting Project Management Capability Measurement Controls
31 Sample PMO Vision Responsibilities PM Processes PM Process Standardization & Improvement Strategic/Yearly Planning & Budgeting Processes Portfolio Management Processes PM Process Compliance Project/Program/Portfolio Process Integration PM Tools & Templates PM Guidelines & Templates LENET, Planview, Reporting db Administration & Expertise MS Project/Planview Integration (M&C Hub) PM Knowledge Management and Experience Repository PM PM Professional Development PM Education, Training & Certification Project & Program Management Experts Consulting and Mentoring Project Recovery and Corrective Actions Program/Project Execution
32 Sample PMO Vision Leadership Strategy Execution Guidance & Priorities Performance Dashboards PMO Our Focus PM Processes & Controls Initiate, Plan, Execute, Control, Close Project Management Execution (PM) Measurement & Reporting Objectives Requirements Design Develop Test Install Product Development (SDM) Products
33 Thank You! Questions? 33
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