Anaheim, CA | February 2-5, 2014

Konstantin PopovIT Program ManagerChevron

Fireside Chat on Best Practices for the PMO as a Service Model Ken Prush

Senior ConsultantPcubed

PC274

Fastest Growing Global Program, Portfolio and Change Management ConsultancyMost Experienced Gold Partner (est. 1994)

Fastest Growing Global PPM Consultancy

+1200 Skilled Consultants 11 NA offices 30 Global Offices

Results with 50% of Fortune 100

+30% Reduced Time-to-Market

+20% Resource Optimization

Managing Business Transformation for50% of Fortune 100

Beyond Technology Solutions • Pragmatic,

holistic Approach

• Fast, Embedded Results

Konstantin Popov• Chevron

• 12+ years’ experience with project management and PMO

• PMP, MCTS, PMI-RMP

• Chevron• One of worlds top 6 super majors, leading integrated

energy company• Engaged in all aspects of Oil, Gas and Geothermal

across 180 countries• 11th ranked in Global Fortune 500 list

Photo

Photo

Ken Prush• Pcubed Consultant

• 6+ years experience in project, portfolio and PMO consulting

• Has led or supported PMO development projects for IT and business in the Energy, Health Care, Insurance, Financial, High Tech, Media, and Manufacturing industries

• Pcubed – Management consultancy focused on program, portfolio and change management• 30+ offices globally• Serving half of the Fortune 100• Solutions that go beyond technology

Two Truths…

Truth #1:

(Plan – Governance) + Time = Variance

We understand this when managing projects, but forget this when managing our project management!

Variance Matters?Even something small – such as the calculation for Estimate at Completion – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.

EAC = BAC / CPI!

EAC = AC + ((BAC-EV) / CPI)!

Truth #2:

America may run on Dunkin’…

…but Project Organizations run on Data

(They both drink a lot of coffee, though!)

Getting good data can be a challenge…Even something small – such as the calculation for Earned Value – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.

I love gathering data and

reporting my project’s status!

Getting good data can be a challenge…Even something small – such as the calculation for Earned Value – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.

…said no Project

Manager, ever.

Source: P3O, Fig 1.2

Organisation Portfolio Office (Permanent)

Hub Portfolio / Programme

Office (Permanent)

Hub Portfolio / Programme

Office (Permanent)

Programme Office for a

specific initiative(Temporary)

Project Office for a specific

initiative(Temporary)

Challenges with Traditional PMOs• The broad range of possible roles for a

PMO is a primary cause of failure• The lack of a clear purpose contributes to

uncertainty over the types and level of skills required by the PMO

• They are often seen as added bureaucracy, and not perceived as adding value

• They are often in matrixed environments with reduced leverage over PMs

• Poorly placed within organization related to functional role

• Often reduced to a reporting role with no additional value or function

Enter the PMO-as-a-Service• Role is more easy to codify; “services for

projects” is the defining mantra• PMO becomes part of the team, not a layer

above it• Cost is partially (or completely) paid by

projects, which can be offset by project savings provided by PMO services

• Project teams invite PMO in, which encourages collaboration and inclusiveness

• Becomes less shackled to organizational set up and location within organization

• Critical aspect is mentality: “We’re not promoting bureaucracy – we’re providing value”

Controller

BU 1

PMO as a

Service

Controller

BU 2

PMPMPMPM

IT/BusinessPartner

Designing a PMO

Understanding the ChallengesGood

methodology model,

inconsistently implemented

Inconsistent metrics for

quality measurement

Competing tools & technology

within different groups

Non-PMs acting as

PMs

Large, siloed

organization

Lack of cross-project

dependency visibility

Geographically dispersed

Lack of resource visibility

“Food Fight” for project

initiation and resourcing

The Approach We TookAt Chevron, we took an initial two-prong approach. Because processes around project management were in place, it was decided that data quality and capacity management would be the top two challenges to address.Project Controllers

Dedicated project schedulers who also provide resource and report management for project managers

Schedule Templates

Project .mpp files provide a framework for task information and project data standardization

Project Pro 2013

A common tool to help align project schedules and resourcing across multiple business units and OpCos

Project Server 2013

A central platform to allow enterprise visibility over project status, cost reporting, and resource capacity

Why Project Server 2013 for Chevron?• Familiar platform – many of Chevron’s

OpCos are already using a version of Project Professional and Project Server

• Schedule, Cost, and Resource Management – Project Server provides flexibility and depth of functionality to enable key PMO service offerings

• Portfolio Analysis – intended as future functionality to improve annual, monthly, and ad-hoc decision making around projects and portfolios

• Scalability – Project Server can work natively across OpCos and portfolios

• Reporting – the BI Center and SSRS offer a variety of ways to capture and report on key project data

Lessons Learned, and LearningDon’t think small We took an early opportunity to re-align our goals with a much larger

audience within Chevron. This not only provided visibility with higher level stakeholders within the organization – it also presented Chevron with an opportunity to align more of its business units around a standard technology model.

Be prepared to be a salesman

A lot of PMs (and business units) can be territorial, and may not want an “outsider” stepping into their domain. The key to winning these groups over is to focus on value – not just in discussion, but in demonstration.

Know when to focus on inclusion, and know when to push ahead

Understanding when to pause for related projects, and when to move forward without them requires not only careful analysis of that project’s impact, but also an understanding of the team involved, and their ability to execute on their work.

Everyone is a stakeholder

When you’re implementing organizational change, it’s critical to remember that everyone – executives, managers, and team members alike – will be impacted by your decisions, so socialize accordingly.

Question #1

What’s a typical approach to defining a PMO? How do I decide which functions my PMO needs?

Functions of a PMO

Portfolio ReportingPortfolio

Analysis

Pipeline Manageme

nt

Portfolio Optimizatio

n

Portfolio Controls Strategic

Driver Prioritizatio

n

Program & Project

Controls

Program & Project

Governance

Benefits Manageme

nt

Capacity Manageme

nt

Resource Manageme

nt

Portfolio Governanc

e

Process Manageme

nt

PM Tool Manageme

nt

Program & Project

Reporting Program & Project

Recovery

Program & Project

Assurance

Comms & Stakeholder Manageme

nt

Project Management Training

Mentoring & Coaching

Project Initiation Support

Risk & Issue

Management

Professional Developme

nt

Administrative Support

This model is presented by the Corporate Executive Board.It uses the parameters of:• Involvement in Project Execution, and• Degree of Authority over Risk

Managementto highlights the four ‘archetypes’ of:• Coach• Auditor• Player• Financial Advisor

The key question it poses for most organisations is the one on ‘involvement’, as a lack of consensus on this point is often a point of failure

Source: Corporate Executive Board

Coach

Financial

Advisor

Auditor

Player

Degree of Authority over Risk Management

Invo

lvem

ent

in P

roje

ct

Exec

utio

n

Models: CEB, the Four Archetypes

This model is presented by Cranfield University.It uses the parameters of:• Operational vs Strategic, and• Supply vs Demand

to highlight the following four types of PMO:• the Project Office (PO) – focus on

mainly supply side delivery• the Project Support Office (PSO) –

focus on tactical support• the Enterprise Project Office (EPO)

– supporting strategic demand side and supporting governance etc.

• the Project Management Office (PMO) – demand side focus

Models: Cranfield, PMO ServicesPortfolio Mgmt FocusInvestment decisions and prioritisationMaximise value from resource allocation Inter-project communication

Resource Mgmt FocusCompetency and capability development Effective deployment of resources

Project Benefit FocusConduct reviews and health checks Report on value being delivered Increase benefits actually realised

Product Delivery FocusImprove supply processes Monitor and report progress Manage risk of delivery failure

Supply Demand

Ope

rati

onal

Stra

tegi

c

This Pcubed model was developed using the parameters of Influence and Capability and highlights the four key roles that a PMO can play:• Enabler – acts in an administrative

role • Guardian – an office that makes sure

everybody is doing things correctly• Coach – communicates upward to

keep stakeholders informed on program status

• Partner – can design processes and put in place and influence strategy

This model is often used to show how the maturity of the PMO can move through the roles.

Models: Pcubed, Capacity and Influence Partner

Services: Proactive Executive Support;; Disciplined Delivery & AssuranceBenefits: Delivery Accelerator, Confidence in Success

GuardianServices: Program & Project Assurance, Audits, Gateway Management, Tracking & ReportingBenefits: Management by Facts, Early Warning

CoachServices: Capability Planning & Building, Training, Coaching & MentoringBenefits: Increased Capability, Skills Transfer, Embedded Best Practice.

EnablerServices: Best Practice Processes & Tools Repository, Information Hub, Project AdministrationBenefits: One Stop Shop for Methodology & Data

Capability

Infl

uenc

e

This model represents the output of client through the development process using the previous frameworks, as well as a discovery and workshop process with key stakeholders.The client required a simple and distinctive model that showed the:• breadth (strategic and operational)

and• depth (project and portfolio)

of the services that they intended to provide.The quadrants highlight the beginnings of the ‘Service Catalogue’ and provided the basis for the PMO organisation’s structure

Models: Sample Client Analysis

Develop, Champion, and Monitor StandardsDevelop competency standards and lead staff development

Ensure the portfolio is aligned to and supports the delivery of the corporate strategy

Appraise project (comparison)Manage inter-dependencies between projectsManage portfolio level riskManage portfolio Change Control

Appraise project (in isolation) Manage GatewaysLead project re-appraisals

Operational Strategic

Proj

ect

Port

folio

Targeted PMO Service Offerings

Portfolio Reporting

Portfolio Analysis

Pipeline Manageme

nt

Portfolio Optimizatio

n

Portfolio Controls Strategic

Driver Prioritizatio

n

Program & Project

Controls

Program & Project

Governance

Benefits Manageme

nt

Capacity Manageme

nt

Resource Manageme

nt

Portfolio Governanc

e

Process Manageme

nt

PM Tool Manageme

nt

Program & Project

Reporting Program & Project

Recovery

Program & Project

Assurance

Comms & Stakeholder Manageme

nt

Project Management Training

Mentoring & Coaching

Project Initiation Support

Risk & Issue

Management

Professional Developme

nt

Administrative Support

Questions

SummaryThe PMO-as-a-Service model offers organizations a value-driven approach to governance, schedule, and data management

The challenge is in trying not to do too much; focus on key value areas to best align your PMO team’s skills with their intended role

Technology is as important as good processes and good team members, so ensure all three are in place and aligned to support your PMO’s mandate

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