Business Beam...The Value of PMO {Operational efficiencies through consistent processes for...

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Contents

Copyrights (c) 2004-2016 Business Beam. All rights reserved. 2

What is a PMO? 1

Benefits of PMO 2

How Business Beam may Assist 3

What is a PMO? Establishing an Effective PMO

Key Definitions

Project

B

Project

C

Project

DProject

A

Program

1

Program

2

Portfolio

Project

E

Program

Project

Portfolio

A Project is a temporary endeavor undertaken to create a product,

service or

result

to obtain an objective (deliverable) and terminate.

A Portfolio is Overall collection of the

orga izatio s groupi g of high-level initiatives

and their respective projects/programs.

A Program is a set of projects that

have a common objective and

interdependencies that need to be

managed. A set of interrelated and

inter-dependent projects .

4 Copyrights (c) 2004-2016 Business Beam. All rights reserved.

Management Disciplines

Project Management is concerned with the definition and delivery of specific

work streams within an overall program framework.

Program Management is

the application of

consistent tools and

methods in order to deliver

and co-ordinate related

projects and Programs.

Portfolio Management is the management process of translating strategy or

policy into actionable Programs that can be developed in a portfolio of

Programs.


What Do Organizations Need?

• Given our longer term vision, what are the opportunities

today?

• How do we translate our strategy into targets for all our

stakeholders to clearly understand?

• How realistic the targets and vision are?

What are the

right thi gs to do?

• Will the projects underway let us achieve our strategic

objectives?

• What is the correct balance between growth / innovation

projects, and productivity / maintenance projects?

Are we doing

enough of

the right things?

• What is the appropriate governance structure and risk

management approach to facilitate a fast response to

issues and opportunities?

• Ho do you get the essage a ross to ha ge peoples behavior?

• How are benefits being tracked?

Are we doing

the right things

right"?

Portfolio

Management

PMO


What is PMO?

An organization dedicated to improve the practice and results of project

management.

Provides an opportunity for project managers to develop professionally more

quickly than most could ever hope, if they were working isolated from one

another.

An organizational entity

created to assist project

managers in achieving

project goals.

A group of people with a

mission to support project

managers in the

successful launch,

implementation, and

completion of projects.

PMO


The Value of PMO

• Operational efficiencies through consistent

processes for Monitoring, Controlling &

Reporting

• Proactive management , planning and steering

• Delivery oriented to business milestones

• Focus on content rich initiatives rather than

process

• Coaching and mentoring for project / program

managers

• Minimized gaps in strategic business alignment

Typical Environment with PMO

Delivery

Strategy

Project

Project

Project

Project

PMO

• Inconsistent planning and scheduling approaches

• Deliverable / technology focus

• Little integration across projects

• Lack of business management leadership and

visibility

• Unjustified projects

• Inability to present accurate visibility to

management

• Impact on market and shareholder perceptions

Typical Environment Before

Delivery

Strategy

Project

Project

Project

Project


PMO Models


A key success factor for Project / Program Management Offices is to select

the right orga izatio odel that fits oth the orga izatio s ulture and needs.

Increased Level

of Operational

Excellence

Increased Level of

Business Unit

Responsibility

The PMO has an

advisory role and

provides counseling,

training and tools to

usi ess u its project managers.

Model

Mandate

Support

The PMO provides

active support to

project managers.

Projects are delivered

according to the

project management

standards established.

Control

The PMO is

responsible for project

delivery. The PMO

provides trained

project managers to

usi ess u its sponsors. Projects are

delivered according to

the project

management

standards established.

Lead

CEO

COO

Branch Network

Business Segment

Support

IT

IT-PMO

Operations HR

EPMO

Where does PMO Fit?


• Depending on the type of projects under

the PMO, PMO can be under specific unit

to serve specific units projects or at the

level of the organization to server all

units in the organization

• The PMO normally consists of a full time,

dedicated team, reporting to a PMO

Head, supporting the program/projects

managers

• The structure within the PMO is different

based on the PMO type. The PMO can

also deploy e oys i to large i di idual work streams to provide program

management support direct and full time

to the work streams.

It is not recommended to

have more then one PMO

in the organization. In

addition ,the more PMO is

empowered, the more

successful it is.

What’s in it for me?


Leadership

• Alignment with Strategic Plan

• Standard, effective business processes

• Project/Portfolio decision support information

Staff

• Improved communication with business sponsors and team

members

• Individual performance

• Professional/career development, recognition and

opportunities

Management

• Work prioritization

• Efficient allocation and utilization of resources

• Higher project success rates

Benefits of a PMO

Establishing an Effective PMO

From Strategy to Implementation


MARKET ENVIRONMENT STRUCTURE & RESOURCES

FINANCIAL ENVIRONMENT PERFORMANCE MANAGEMENT

Strategy Selection and

Translation

Strategy

Formulation

Strategy

Implementation PMO

Core Benefits


Gain visibility on project portfolio 1

Align investments with business objectives 2

Make the right choices when prioritizing investments 3

Enhance your ability to execute 4

1. Gain Visibility on Your Project Portfolio


Best Practices Samples

• Project information is hard to

collect

• Portfolio view is non-existent

• Controlling costs is challenging

Typical Issues

A logical grouping of initiatives in a

project – program – portfolio

hierarchy.

Project

B

Project

C

Project

D Project A

Program

1 Program 2

Portfolio

Project E

A simple spreadsheet to collect

project information and to guide

project managers through what they

should document.

A complete set of reports on your

current and proposed portfolio,

which project, when, for how

much and highlighting the

financial impact.

2. Align Your Investments with Business Objectives



• Strategic alignment is difficult

to assess

• Impact of projects on business

process is unclear

• Project benefits are hard to

define

Typical Issues

A standard framework to translate

strategy and identify the impact of

your projects.

A view of the planned benefits

and their impact on the

organization for the upcoming

years.

A process map to assess impact

of projects on business

processes.

3. Make the Right Choice When Prioritizing the Investments



• Proje ts a t e o pared

• I est e ts a t e justified

• Project prioritization process is

unclear

The Issues

INNOVASINNOVAS

rg util

improvementrg uti

l

improvement

Maintenance Productivity

Growth Innovation

Future

Investments

Existing

Assets

A clear categorization of your

investment types, allowing

alignment to business objectives

(innovation, growth, productivity,

maintenance)

An assessment of project value and

risk to support a transparent

prioritization process based on

tradeoff between tangible &

intangible value and various types of

risk.

4. Enhance Your Ability to Execute



• Unable to adapt to changes

• No continuous view of the

portfolio s life

• Inability to allocate resources to the right place at the right time

The Issues

Monitor Portfolio Status

and Performance

Identify New

Opportunities

Reprioritize/

Optimize Portfolio

A consistent framework to

integrate all your existing

standards and approaches

into the Managing for Value

responsibilities

Policies

and

Standards

Roles

and

Responsibilities.

Methods &

Approaches

Tools and

Enablers

Organizational

Structure

Deployment

and

Monitoring

Key Success Factors


Leadership support. 1

Focus on increasing the maturity of the organization. 2

Establish trust – do t fi ger poi t people. 3

Have the right skilled team. 4

Do it gradually, and not all at once. 5

Ensure partnership the between PMO and the business units. 6

Give enough support and authority to the PMO team. 7

Use the right tool. 8

How Business Beam may Assist Establishing an Effective PMO

We may assist in…


Establishing a PMO 1

Making PMO a Center of Excellence 2

Benchmarking PMO 3

Sustaining and improving PMO 4

1. Establishing PMO


Rollout

Defines

Role and

Staff

Needs

Pilot

PMO

Staff

PMO

Define PMO

Goals &

Governance

Design /Build

PMO

Processes

1

2

3

4

5

6

Measure

and

Update

7

2. Making PMO a Center of Excellence


Tools

• Identification of the requirements

• Selection of the right tool

• Assistance in implementation of the tools

Recognition

• ISO 9001 Quality Management System certification

• Establishing internal audit framework

• Successful audit and certificate of ISO 9001 QMS

Dashboard

• Development of KPIs and Thresholds

• Development of measurement system

• Assistance in developing dashboard in the tools

3. Benchmarking PMO


Communication

Management

Financial Management

Governance

Integration

Management

Issue Management

Organization Change

Management

Procurement/Vendor

Management

Quality Management

Resource Management

Risk Management

Schedule Management

Scope Management

Initial OptimizedRepeatable Defined Managed

Current Sate

Future State

PMI’s OPM3 ill e used to assess a d i pro e PMO pra ti es

4. Sustaining & Improving PMO


Sustaining

• Monitoring of feedback and results for various stakeholders

• Fine tuning the processes, as per the feedback

• Making PMO as an important part of corporate culture

Maturity

Improvement

• Increasing PMO maturity, based on OPM3

• Sustaining the maturity improvement by ensuring benefits to

the stakeholders

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