NAVIGATING PMO IMPROVEMENT WITH OPM3

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1 NAVIGATING PMO IMPROVEMENT WITH OPM3 MAY 8, 2014 PITTSBURGH PMI CHAPTER CHRIS ULDRIKS PRESIDENT & PRINCIPAL CONSULTANT OPM3, PMBOK, and PMI are registered trademarks of the Project Management Institute

2 ABOUT CHRIS ULDRIKS Education B.S. in Engineering Management, University of Arizona MBA, Arizona State University Industry Experience Systems Engineering and Mission Management Missile Defense and Commercial Launch Vehicles Kinetic Energy Interceptor (KEI), Juno-class Patriot Target Vehicle, Antares Program and Portfolio Management Medium caliber autocannon research and development Business jet interiors PMI certified Organizational Project Management Maturity Model (OPM3 ) professional 1 of ~100 currently certified globally NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

ABOUT PROGRAMMATIX Deliver competitive advantage to clients through the development of PMOs that yield predictable project results contributing to strategy execution Effective integration of the best

3 ABOUT PROGRAMMATIX Deliver competitive advantage to clients through the development of PMOs that yield predictable project results contributing to strategy execution Effective integration of the best processes, the right tools, and trained personnel Trained Personnel Training programs customized for process and tool implementation Best Process Industry proven best practices tailored to business-specific needs Effective Simplicity Right Tools Software selection, implementation, optimization Template and form development NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

4 OVERVIEW What is OPM? What is the PMI OPM3? Business benefits of a mature PMO The OPM3 assessment process How OPM and the OPM3 benefit the PM, PMO leadership, and executives Questions and Answers NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

5 LEARNING OBJECTIVES I want you to walk away with A general understanding of OPM and the OPM3 An understanding of how the OPM3 can help overcome PMO improvement obstacles Knowledge of the OPM3 assessment process A comprehension of the benefits of a highly capable PMO Directions to more information on the topic ANOTHER TOOL FOR YOUR PM TOOL BELT NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

Management Standard Organizational Project Management

6 THE FOUR PMI GLOBAL STANDARDS Project Management Body of Knowledge (PMBOK ) Program Management Standard Portfolio Management Standard Organizational Project Management Maturity Model (OPM3 ) NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

7 DEFINITIONS Organizational Project Management (OPM) A strategy execution framework utilizing portfolio, program, and project management as well as organization-enabling practices to consistently and predictably deliver organization strategy producing better performance, better results, and a sustainable advantage Organizational Project Management Maturity Model (OPM3 ), Third Edition, PMI Organizational Project Management Maturity Model (OPM3 ) A framework that defines knowledge, assessment, and improvement processes, based on Best Practices and Capabilities, to help organizations measure and mature their portfolio, program, and project management practices. Organizational Project Management Maturity Model (OPM3 ), Third Edition, PMI NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

8 ELEMENTS OF PMO MATURITY What is a mature PMO? Best Practices and Capabilities A PMO which Consistently demonstrates PM capabilities Implements PM best practices Also known as a Highly capable PMO PMO with high capability PMO with significant best practice implementation Cap Cap Cap NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

9 OPM COMPONENTS Strategic Formula Portfolio Strategy Execution Strategic Alignment Program Program Sub- Portfolio Benefit Project Project Program Project Program Project Project Project Project Project Organizational Enablers NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

10 OPM3 AND THE ORGANIZATIONAL LIFE CYCLE OPM3 ADDRESSES THE NEEDS OF ORGANIZATIONS IN ANY STAGE AND OF ANY SIZE Start-Up Growth OPM3 used to prioritize implementation of capabilities in domains to execute strategy Maturity OPM3 used to install capability to manage additional projects and resources within one or more portfolios Use OPM3 to sustain competitive advantage by continuously improving efficiency in portfolio benefits delivery Decline Use OPM3 to correlate the symptoms of decline with capability gaps that can be addressed to reverse decline NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

11 DELIVER COMPETITIVE ADVANTAGE WITH A MATURE PMO Strategic Alignment and Implementation Systematic optimization of physical, human, and financial resources Top-Down and Bottom-Up Communication Methodically distribute the right data to enable informed decisions Organizational Agility Ability to change direction quickly and efficiently when strategic formula changes Predictability Planned investment yields planned benefit in planned time frame NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

12 DATA CONFIRMS THE BENEFITS OF A MATURE PMO Organizations with standardized PM processes are HIGH ORGANIZATIONAL AGILITY than their peers Source: 2012 PMI Pulse of the Profession In-Depth Report: Organizational Agility more likely to report More likely than peers to execute strategy Low High Capability Capability PMO PMO Source: PMI Pulse of the Profession In-Depth Report: The Impact of PMOs on Strategy Implementation NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

13 OBSTACLES TO PMO IMPROVEMENT Lack of executive buy-in to allocate resources to improvements How do the improvements map to business outcome priorities? How is improvement implementation validated? Lack of a clear path or plan to implement improvements Where does the PMO stand? Where does it need to go? NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

14 OVERCOMING THE OBSTACLES Obstacles Lack of executive buy-in How do the improvements map to business outcome priorities? How is improvement implementation validated? Lack of a clear path Where does the PMO stand? Where does it need to go? OPM3 Solutions Gain executive buy-in OPM3 maps specific gaps and improvements to business outcomes Iterative OPM3 assessments measure and validate improvement implementation Map a path forward OPM3 provides a measurement of where a PMO stands OPM3 provides for prioritization of improvement by business outcome, process group and ease of implementation NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

PROCESS IMPROVEMENT STAGE OPM3 OBJECTIVES

measurement and capability improvement: +

improving PMO in the project, program, and

15 PROCESS IMPROVEMENT STAGE OPM3 OBJECTIVES Using an iterative cycle of PM capability measurement and capability improvement: + DOMAIN (PMI STANDARD) Create a continuously improving PMO in the project, program, and portfolio management domains Install organizational enablers to create a sustainable PMO NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

OPM3 PROCESS Prepare for Assessment Prepare

scope of PMO s efforts Acquire Knowledge

Improvement Perform Assessment Identify gaps

Prioritize Implement Improvements Repeat

16 OPM3 PROCESS Prepare for Assessment Prepare for Assessment Organizational structure, scope of PMO s efforts Acquire Knowledge Perform Assessment Artifact review Repeat the Process Perform Assessment Employee interviews Plan for Improvement Manage Improvement Perform Assessment Identify gaps that correlate with business outcome priorities Identify low hanging fruit Implement Improvement Plan for Improvement Prioritize Implement Improvements Repeat Verify and Validate Implementation NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

17 OPM3 ASSESSMENT METHODS Self Assessment Uses manual questionnaire that provides top level assessment of PMO best practices No assessment at capability level Pros Lower Cost Cons Subset of OPM3 standard Potentially biased Manual data analysis PMI Certified OPM3 Professional Certified professional uses PMI OPM3 ProductSuite software to assess capabilityoutcomes in determining best practices implemented within the PMO Pros Unbiased Full OPM3 standard assessment Automated data analysis Cons Easily assess and report maturity of multiple PMOs within an organization and aggregate maturity Higher cost (BUT better value) NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

OPM3 ASSESSMENT OUTPUT % of best practices implemented by process improvement stage and domain % of organizational enabler best practices implemented

18 OPM3 ASSESSMENT OUTPUT % of best practices implemented by process improvement stage and domain % of organizational enabler best practices implemented More detailed insight Best practices implemented by Process groups Knowledge areas Business outcomes NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

19 MOVING FROM ASSESSMENT TO IMPROVEMENT Identify intersection between PMO capability gaps and business outcome priorities Project predictability Strategic Alignment PMO sustainability Output: Improvement Implementation Plan NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

20 VALIDATING IMPROVEMENT Planned Improvement Implementation Validation Repeat Assessmen t NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

21 OPM AND OPM3 BENEFITS: PROJECT MANAGER Better definition of roles and responsibilities Isolation of functional issues to functional groups Improved big picture visibility Career development opportunities NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

OPM AND OPM3 BENEFITS: PMO LEADERSHIP Quantitative measurement of PMO capability Formalized process for improvement Communicate state of the PMO and path forward to

22 OPM AND OPM3 BENEFITS: PMO LEADERSHIP Quantitative measurement of PMO capability Formalized process for improvement Communicate state of the PMO and path forward to executives with ease Framework for talent management and sustainability Easy way to attack performance weaknesses effectively NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

23 OPM AND OPM3 BENEFITS: EXECUTIVES Improved upward and downward communication flow Informed decision making Systematic strategic alignment Organizational agility NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

24 ADDITIONAL REFERENCE INFO Organizational Project Management Maturity Model (OPM3 ), Knowledge Foundation, Third Edition, PMI Electronic copy free to download for PMI members Implementing Organizational Project Management: A Practice Guide, PMI Limited time free download of electronic copy 2014 PMI Pulse of the Profession Survey Programmatix OPM Resource Blog Click OPM tag NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

FEEDBACK Smartphone Go to www.programmatix.

s presentation Tablet/Laptop Go to www.programmatix.

25 FEEDBACK Smartphone Go to Press main menu in upper right Select Feedback Press link for today s presentation Tablet/Laptop Go to Click Feedback on main menu Press link for today s presentation 2 1 NAVIGATING PMO IMPROVEMENT WITH OPM3 May 8,

By Raju Rao, PMP. Xtraplus Solutions. Abstract

By Raju Rao, PMP. Xtraplus Solutions. Abstract OPM3 - An Overview By Raju Rao, PMP Abstract OPM3 or Organizational Project Management Maturity Model is a standard introduced by the Project Management Institute, USA.in Dec 2003. OPM3 will help organizations