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Comau PMO the PMO as a Global Business Solution ENG

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    Background about Comau

    Comau is offering of full services for automotive and aerospace product engineering, production systems

    and maintenance services. Comau is composed by approx. 12.000 employees, 38 Legal entities in 19

    Countries (www.comau.com). The Comau business portfolio is composed by Body & Welding, Powertrain,

    Engineering, Services and Robotics products. The business centers are supported by the central functions

    (Contract & Project Management - Finance, Administration and Control - Human Resources - Legal &

    Corporate Affairs - Compliance Officer), all operating all over the world.

    Description of the problem

    As a company providing services for worldwide customers, Comau has been performing very well during the

    80s. In the 90s Comau started performing many company acquisitions all over the globe, for example, in the

    year 1999 the headcount was increased by 30% (approximately + 3.000 employees just in this year,

    achieving a total of approx. 20.000), but as a result, without applying efforts in the integration and also in

    synchronized strategies, for many years, the company has been operating in a difficult financial situation.

    Until this time, Project Management in Comau, generally speaking, was executed in a very fragmented way

    and there werent culture, methodologies, processes and guidelines in place. In 2007, an urgent, efficient

    and global approach was requested to be implemented. The goal was: the global integration for competitive

    advantage, simplicity and results orientation.

    The Solution from a cluster to an effective networkIn the year 2007, Comau has decided to reinforce the project management culture creating the Contract &

    Project Management corporate function. Under the vice-president of contract & project management, the

    new team was organized. In few words, here are the main guidelines for the mission:

    1. Company Organizational Development and the Implementation of Global Organizational Policies.

    2. The reinforcement of the Enterprise Project Management and the Project Management Office

    Structure.

    3. The Comau Project Management Academy The continuous development of knowledge and skills.

    In the next sections, we describe some of the main actions performed by the PMO; as a business solution.

    We need to mention that since the very beginning, the perception of developing both HARD and SOFT Skills

    in harmony was in place, and this approach in many different ways, is guiding the development of the PMO

    activities.

    1) Company Development and the Implementation of the Organizational Policies.

    During the year 2007, a global Project Management Policy has been developed and an intensive training

    program based in the PMBOK took place in Italy. In this year, project management benchmarks have been

    also performed to measure the maturity level and organize the first action plan and define priorities for the

    improvement of the maturity. The global policy is a project management policy that describes the job that all

    the projects teams must perform and must be applied globally. The policy is directly connected to the PMI

    PMBOK, best practices. One important point to identify is that the company decided to join both contract

    Italy 2008 Comau The PMO as a global business solutionThe PMO One Company One Family

    By Mauro Fenzi Comau Vice President and Alexandre Srensen Ghisolfi Corporate PMO Manager

    http://www.comau.com/http://www.comau.com/
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    management and also project management in a single unit. It is a very important innovation in this field, and

    many positive results have been achieved, as we demonstrate in the next pages.

    2) The reinforcement of the Enterprise Project Management and the Project Management Office

    Structure

    Today the Comau Portfolio included in the PMO is a multi million euro revenues group of global projects,

    automotive and aerospace projects, working in more than 30 countries.

    The Comau Project Management Office is composed by four different geographical areas: Corporate PMO

    Europe, PMO North America, PMO South America and PMO Asia. The team, international experts in project,

    program and portfolio management is called the Project Management family; it is composed by Project

    Managers, Program Managers, Planners, Controllers and Team Members. The whole company is focused to

    provide our customers with high quality products, projects and services.

    The PMO is:

    High Level PMO Execution Road Map (for 2007-2008-2009)

    As a business solution, here are some important reasons why we have developed the PMO and the

    application of Project Management in Comau:

    1. Empower the Comau ability to perform integrations and work adding value in the value/supply chain as

    the number one market integrator.

    2. Develop a high standard international class compliant project management culture/approach.

    3. Better support sales increasing project success through pro-active project planning and risk reduction

    strategies.

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    4. Develop a culture able to synchronize language with Comau customers, reduce misunderstandings in

    the projects definitions and executions and supporting trustful communications through the projects.

    5. Help achieve the best workload optimization reducing costs for our customers.

    6. Develop the technical language when working to standardize a global approach, e.g. WBS Powertrain

    Italy and France. In this case, making possible to exchange parts between products and project teams in

    different countries. Achieving better planning, execution, cost control, workload planning and leveling,

    risks management, communication and quality.

    7. Support in the identification and the management of situations out of project scope, resulting in better

    benefits for Customers, Comau and Providers.

    8. Optimize processes and the reporting systems, avoiding waste of time and making possible to spend

    more time managing critical issues.

    9. Contribute to the company integration, sharing informations, visions and strategies, including start-upsof strategic projects.

    10. Create a strong team of high skilled Managers and Technicians. A Team able to support difficult projects

    and high pressure situations.

    Figure: PMO Organizational Structure

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    The idea was to create a small but strong and empowered team to make possible to be fast and to properly

    control indirect costs and add business value. In a matrix organization, the PMO team works directly with all

    the other departments, finance, controlling, human resources, engineering, production, sales, supply chain,

    IT, etc.

    The PMO team, very soon, has started developing change agents inside each one of the organizational

    business units and achieving some quick wins solutions. All the managers are working using delegated

    powers and having the Vice President and Country CEOs as strong sponsors.

    The regional PMOs are reporting to the Corporate PMO and also to the CEO of the regional area. The CEOs

    are also important sponsors and interested people in making the PMO evolution happen.

    3) The Comau Project Management Academy - A common base of knowledge and skills

    In 2008, the Comau Academy became a PMI, Project Management Institute, REP- Registered Education

    Provider.

    Under the Corporate PMO, the Academy provides a training curriculum to ensure that the technical

    workforce shares a common base of knowledge and skills. Comau also strongly urges Project Managers in

    achieving the PMP certification.

    Providing worldwide services for automotive and aerospace projects. We will describe the program in more

    details in the next pages.

    Results - Benefits

    In the next pages, we describe some of the results we have achieved which are measurable, but we also

    need to mention that there many other results, which are difficult to measure, for example, results from the

    company integration efforts, leadership, coaching, mentoring, etc. Apart from the positive financial results,here are some important results following the respective action (in more details).

    1) Growth in the PM global Organizational Policies applications, maturity growth.

    As a result of the application

    of the many improvements

    actions and audits, the

    following results have been

    achieved. We need to share

    that each point of the

    Comau execution policy isalso directly connected to

    the PMBOK best practices.

    The company is acquiring

    consistency in the

    application of the project

    management techniques

    worldwide.

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    2) The Project Management family has demonstrated the viability of applying global work

    processes, and now, other functional groups are following the steps and guidelines organizing similar

    actions. This is a very important and new business orientation guided by the Comau Project

    Management Family (PMO).

    3) Comau Project, Program and Leadership Academy Developing maturity Project

    Management is leading the business

    As an official PMI Registered education provider, the Comau PM internal Academy is providing training

    programs to develop the required skills for our projects. After 1.5 year of existence, the PM Academy has

    trained hundreds of people worldwide. The following training programs are in place

    - The Project Management Framework, Scope Management, Time and Cost Management, Risk

    Management, Planning and Updating Workshop, The Project Management Professional Certification

    Program, Procurement Management, Program Management and Multiple Projects, Leadership,

    Change, Communication and Problem Solving, Contract Management.

    Figure: PMO - PM Academy hard skills development strategy for 2009.

    PMO resume of innovations results as a business solution for the Company (not inorder of importance). Some of these innovations have provided important quick wins for the

    organization and the PMO!

    1) Consistency in the Report to the Customer process: Better customer relationship, Customers

    recognizing the Professional Project Management that Comau is applying. Many customers have

    expressed their satisfaction when working with Comau. For example, the Report to the Customer

    process was applied generating positive results. We share some customers feedback in the next pages.

    2) The Project Management Family, (project managers, planners and controllers). A real perception of

    integration and team work has been developed. People start sharing best practices and trying to solve

    common problems together. In this family we started joining project and program managers, planners

    and controllers. The concept of professional families is growing.

    3)

    Figure: Some examples of Comau PM deliverables, PMI based.

    Standardization - The ProjectManagement integrated approach

    applied for all the company business

    units and countries. All business

    units sharing the same PM goals,

    guidelines, training and reporting

    systems, has made possible to

    synchronize the different departments,

    achieving better quality in the

    communications, definitions and

    measurement of the key performance

    indicators.

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    4) PMP Certified growth:From January 2008 to December 2008, in one year, we have trained about 20

    PMP Certified professionals; it represents approx 15% of the total, and more are expected to be certified

    in the next weeks. Considering that our Project Managers travel a lot, it is a very good result for Comau.

    From the Individual growth and development to the organization results!

    5)

    6)

    7)

    8) Straight Connection between Contract Management and Project Management and Execution (asmentioned before), bringing consistency, avoiding risks and money losing for Comau.

    Comau Project Management Family

    On-Line Global Virtual Community

    Using a collaboration tool, for the first

    time in the Company, the Comau

    project management global family has

    started sharing knowledge between

    projects, products and innovation ideas

    and now other groups are starting using

    it.

    Portfolio Program and Projects

    Reporting Dashboard and Traffic

    Lights - A professional approach to

    the Portfolio Management System. A

    simply and common approach was

    applied to all countries and business

    units. A systematic project review is

    already in place where the company

    Board of Directors can analyze the

    project status, define priorities, etc. It

    is a monthly review in each business

    unit. Projects indicators are

    improving within time.

    Organizational Common language - The Comau

    Project Management Book of Best Practices. A

    collection of project management articles and

    organization policies, guidelines and templates have

    been developed, it was important to disseminate the

    message not only in Italy but globally.

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    9) Development of a dedicated Human Resources Structure, dedicated to the Project Management Family

    development. An important action bringing attention and empowering the application of Project

    Management.

    10) The Project, Program and Leadership Academy. (Described in the previous pages).

    11) Company development: The high support to the PMP Certification, from the Board of Directors, PMs can

    perform many professional project management training and also have the certification sponsored by

    Comau.

    12) Company development and motivation:For example, the creation of the Comau Project Management

    Award, where Comau is receiving many professional and real examples of the application of our project

    management global policy. It has an interesting action to create motivation, innovation and also

    discipline when performing project management. In 2009, the winners are going to be awarded in a

    special event.

    13) The application of global policies, project management procedures. For the first time, all different teamsin the globe are applying the same practices. Many audits have also been performed without resistances

    and generating positive improvement actions (see growth results in the previous pages).

    14) Continuous PM meetings, round tables and feedback sessions to share strategy and actions to all levels

    of management. Many informal meetings have been performed with the goal of sharing the information

    and the strategy for the next actions. It has also generated the required environment to make gradual

    and positive changes in the company culture. The buy-in feeling has also been developed during these

    meetings.

    15) Monthly communication reporting the news and actions to all levels of the company. Using the intranet,

    consistent monthly feedbacks for all the company are available, showing that something was happening

    with real and positive results. It creates a chain of positive reactions.

    16) Strategic Planning - The PMO has strongly contributed to the perception of being a Global Corporation

    also contributing for important strategic decisions and project start-ups.

    4) Some External Customers Feedback

    a. Mitsubishi Motors CompanyComaus Project Management Methodology is really new to us, it

    seems large advantage about planning and controlling. The use of PMI knowledge makes a

    new vision for our new suppliers

    b. AIRBUS: Comau has a strong and professional project management experience and

    approach

    c. Brilliance-Auto "Thank you for the timely updated project status report, we hope this kind of

    report could continue...

    d. General Motors ShanghaiCOMAU is the quickest and most reactive supplier in SGM

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    5) Some Internal Customers Feedback (from Project Managers, Planners and Controllers) to the

    question:

    Please, write a sentence that can describe your feeling about the PMO (in a PMO feedback session):

    Some Lessons Learned

    Here, we describe some of the most important lessons learned from our PMO experience.

    1. The ability of sharing best practices and organizational standards is even more important when

    working globally. It allows the exchange of information, work products, workload sharing, resource

    leveling, etc.

    2. People participation: we need to say that it is not easy to have all the people understanding the

    future advantages and effectively participating; it is related to the different knowledge, experiencesand power/authority people have. The ability of making people participate is critical for change,

    speed and buy-in.

    3. Develop "quick-wins" is an important motivator.

    4. Make people feel secure about the future is a buy-in motivator. Today the importance of project

    management as a business solution for a global company is a strong motivator for the PM Family.

    5. Increase communication, transparency and the "open doors" philosophy.

    6. Start developing the Project Management and Program Management is important but not enough,

    the whole company must understand the business model of management by projects.

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    7. Education: It is the basis for development, our people must learn from somebody elses mistakes!

    Develop both "hard skills" and "soft skills", create the foundation for change and PM application.

    8. Education: Leadership is becoming every day a key issue.

    9. Apply efforts in consistency. In the beginning it is not so much a question about quality, it is a

    question about culture and discipline, better quality will arrive in the next rounds.

    10. All of the actions have demonstrated to Comau that the organization must apply consistent efforts in

    project management best practices to achieve better business results and improve the way of doing

    things. From sales, contract management, production and after sales, all the company is passing

    through an educational program and also acting to support the application. It really represents a big

    change for the company.

    11. The PMO is demonstrating value through the application of principles of integration, simplicity,

    results orientation, flexibility, discipline and continuous maturity improvement.

    12. The Corporate PMO is also providing important value to the business through the integration,

    empowering opportunities and performing strategic projects. When performing strategic projects the

    perception of value and the return of investment are directly and positively impacted. It is a natural

    consequence since this strategic PMO has a wide vision of the company entities, customers and

    products. THE POWER OF INTEGRATION!

    13. The project management approach has demonstrated that other functional groups must be equally

    developed to make possible the application of the professional project management, reducing

    barriers and generating better products.

    14. When working in an matrix organization, to develop a Project Management Family has absolutely

    contributed to the Project Management application.

    The future of the PMO - Comau The PMO...One Company...One

    Family

    1. Increase the company integration, connecting Strategy to Actions (business execution and results).

    2. In the future, the PMO and the PM Academy will expand activities to transfer the knowledge,

    teaching Customers and Providers, becoming even more a business integration agent. In the plan,

    we have also scheduled the development of internal certification programs for the organizationalbusiness and operational processes.

    3. The PMO will be even more important to the future on-going globalization and optimization of the

    company. Connecting Strategies, processes and actions. Connecting people, customers and

    providers, in simple and flexible goal oriented solutions.

    4. The PMO future is showing a future of growth and improvements, mainly bringing additional

    functional departments for the family.

    5. Growth as a simple team structure, strong and empowered team ofleaders.

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    Photo: The PMO - Project Management Family Sponsored by the Corporate Project

    Management Office

    Turin Italy - 2008.

    In few words, AS A BUSINESS SOLUTION, THE COMAU PMO IS :

    The more global the Company is, the more the PMO becomes a key agent! The

    Power of Integration.

    The PMO in Comau is about connecting Strategy to Business Execution,

    Closing the GAP.

    Professional and Modern Project Management is leading Comau business.

    Our PMO is about addressing strategic and cultural issues transforming into

    business value. Project Management is for the whole company!.

    Our PMO is a single unit, which represents a global Family!.

    Key words for our PMO: Integration (company and people), Simplicity, Flexibility,

    Optimization, Efficiency, Value, Improvement of Organizational Maturity Level.


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