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PMI - MinnesotaAugust 14, 2007
Oh no - PMO
Presented by: Michael Vinje - PMP
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Agenda
• Presentation Objective• PMO Background & Survey• What The Experts Said• PMO Context• PMO Negative Forces• PMO Improvement• Sample PMO Organization
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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
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PMO Background
• Definition– 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.
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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
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PMO Top Challenges
Source: PMI/CIO
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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
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Implementing a PMO
• What did the experts recommend?• What really happened?• Why did it happen?• A better way?
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Typical PMO Implementation
Project Office
Managers Directors
Project Resources & Team’s
Executives
Typical GoalsCenter of ExcellenceOrg PM MaturityCentral PM Staffing OrgEPM Tool AdministrationOrganizational Training
Typical ApproachOrg AssessmentsDefine all Roles/ResponsibilitiesDefine & doc all processesTrain all PM’sRollout big heavy PM & SW
templates, methodologies & EPM tool
Goal: Enterprise Adoption
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Typical PMO Implementation
Projec
t Offic
e
Managers Directors
Project Resources & Team’s
Executives
Typical OutcomesLack of InfluenceViewed as Bottle NeckIncomplete AdoptionROI QuestionsKeeper of Templates & Admin
Incomplete Adoption
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PMO Negative Forces
Lack of Skills
People
Process
Process
People
Tools
Tools
PMO Maturity
Governance
Teams
Unwillingness
Fear
No Standard
Too Many
Improper
None
Config
Training
Lack of Collaboration
Lack of Information
Unreal Expectations
No Support
No Discipline
No Value
None
No Reqs
Training
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Tactical PMO Approach
Project Office
Managers Directors
Project Resources & Team’s
Executives
Tactical (Initial) GoalsImprove Measurement & ControlImprove Budget & Est. ProcessObjective Resource ManagementEnable key organizational projectManage Executive Portfolio
Tactical ApproachMeasurement & Control Planning & EstimatingStrategic ProgramHigh Risk AreaBudget Cycle
OutcomesMeasurable ROI earlyMitigate Org. RiskSuccess StoriesExecutive Support Supplemental PM Maturity Begin Org. Change/Adoption
Measu
remen
t & C
ontro
l
Hig
h R
isk
Prog
ram Planning & Estimating
Strategic Goal
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InitiatingOrganizationCommitment
InitiatingOrganizationCommitment
PMO Approach Focus
PlanningProcessesScope PlanningScope DefinitionActivity DefinitionResource PlanningActivity SequencingAct. Duration EstimatingCost EstimatingSchedule DevelopmentCost BudgetingCommunication PlanningRisk IdentificationQuality PlanningStaff AcquisitionProcurement PlanningProj. Plan Develop
PlanningProcessesScope PlanningScope DefinitionActivity DefinitionResource PlanningActivity SequencingAct. Duration EstimatingCost EstimatingSchedule DevelopmentCost BudgetingCommunication PlanningRisk IdentificationQuality PlanningStaff AcquisitionProcurement PlanningProj. Plan Develop
ControllingProcessesPerformance ReportingOverall Change ControlScope ControlQuality ControlSchedule ControlRisk Response ControlCost Control
ControllingProcessesPerformance ReportingOverall Change ControlScope ControlQuality ControlSchedule ControlRisk Response ControlCost Control
ExecutingProcessesProject Plan ExecutionInfo DistributionTeam DevelopmentSource SelectionQuality AssuranceScope VerificationContract Admin
ExecutingProcessesProject Plan ExecutionInfo DistributionTeam DevelopmentSource SelectionQuality AssuranceScope VerificationContract Admin Closing
ProcessesContract CloseoutAdministrative Closure
ClosingProcessesContract CloseoutAdministrative Closure
Source: PMI PMBOK
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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
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PMO Budget Model
Effort of Projects Approved
Hou
rs /
Dol
lars
Time = Yearly Budget Cycle
Effort of Project Office
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?
“The Cost of Control”
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PMO Context
Effective Strategy & Planning
Architectural & Quality Guidance
Prioriti
zed P
ortfol
io
Efficient Management
Portfol
io Hea
lth
PM Best Practice Exceptional Execution
Product Scorecard
Project Health
Business Excellence
BenefitValidation
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E1 - Practices
Bus & ITExecutives
TechnologyArchitecture
BusinessArchitecture
ProgramArchitecture
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E2 - Practices
PortfolioMgmt
ProgramMgmt
ProjectMgmt
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E3 - Practices
BusinessAnalysis
QualityAssurance
RequirementsEngineering
ChangeMgmtSoftware
Development
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PMO Context
BusinessAnalysis
QualityAssurance
RequirementsEngineering
ChangeMgmtSoftware
Development
EM
PA TABA
Prt-M
Prg-M Prj-M
QM
QARM
DMSM
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Eliminate Negative Forces
• Assess– Findings– Insights– Recommendations– Baseline
• Plan Improvement– Roadmap– Resources– Detailed SOW
• Execute Improvement– Multiple Phase
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Assessment
BusinessAnalysis
QualityAssurance
RequirementsEngineering
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Assessment
• People– Ability to Adopt– Willingness to Adopt
• Process– Standardized– Measured– Controlled– Improved
• Tools– Configured– Trained– Used
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Assessment (Maturity Level)
Controlled Managed Integrated ExpertOperational
Functional OptimizedEmergingNone, Planned
Desired, Undesired
Unstructured GovernanceIncorporatedProcess
Roles Identified
Structured & Standardized
Defined by Process Staffed Training Emerging
Talent
Measured
ToolsUsage
Defined by Process
Usage Governed by Process
Unified with other /Tools
KnowledgeBase
Training Material
Analysis & Trends
ToolsetIdentified
Integration Points
Combine by Process
Cooperate by Process
Collaborate by Process Strategic InputIdentified
Management Directed Actions Governance is Regulated Prioritized Actions Strategic PlanningReactive Team
Verbal / Charter Vision, Mission & ValuesDefinition
Disciplines & Capabilities
DefinedSLAs/OLAs Service Level
Mgmt
Maturity
Cop
eten
cies
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Assessment (Results)
BusinessAnalysis
QualityAssurance
RequirementsEngineering Software
Development
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Assessment (Results)
RequirementsEngineering
ChangeMgmtSoftware
Development
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Assessment (Deliverables)
ChangeMgmt
EM
PA TABA
Prt-M
Prg-M Prj-M
QM
QARM
DMSM
Department 1
Department 2
Department 3 Department 4 Department 5
Department 6
• Organizational Study• Integration Implications
• Findings Deck• Insights• Recommendations• Executive Summaries
• Capability Maturity Baseline
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Plan Improvement (Deliverables)
QualityAssurance
• Maturation Plan• Environmental Forces Diagrams
• Maturation Roadmap• Environmental Forces
• Roles & Resources• Statement of Work
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Execute ImprovementP
M A
sses
smen
t
Foundation, Standardization,
Education
Phase 1
Project Communication & Oversight
Communication Plan PM & SD Alignment Standardize Lifecycle PM Process Update PM Estimating, Scheduling, Controlling Education & Training Yearly Planning Process Improvement
Control & Plan Processes Tool Standardization Planview Upgrade M & C Reporting Hub
Process / Tools, Improvement
Process / Tools Integration
Phase 2 Phase 3
Institutionalize Planning & Controlling Processes Continuous Process Improvement Operationalize Enterprise PM Tools
Tool Upgrade
M&C Reporting Hub
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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.
Business Strategy
IT Project Execution
Project Management Capability
Project Alignment
PerformanceReporting
Methods, Process, Tools
Measurement Controls
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Sample PMO VisionResponsibilities
PM Processes
PM Tools & Templates
PM Professional Development
PM Professional Development
• PM Process Standardization & Improvement
• Strategic/Yearly Planning & Budgeting Processes
• Portfolio Management Processes
• PM Process Compliance
• Project/Program/Portfolio Process Integration
• PM Guidelines & Templates
• LENET, Planview, Reporting dB Administration & Expertise
• MS Project/Planview Integration (M&C Hub)
• PM Knowledge Management and Experience Repository
• PM Education, Training & Certification
• Project & Program Management Experts
• Consulting and Mentoring
• Project Recovery and Corrective Actions
• Program/Project Execution
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Sample PMO Vision
Performance Dashboards
Objectives
PM Processes& Controls
Measurement& Reporting
Product Development (SDM)
Guidance & Priorities
Strategy Execution
Products
Leadership
Initiate, Plan, Execute, Control, Close
DesignRequirements Develop Test Install
Project Management Execution (PM)
PMO Our Focus
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Thank You!
• Questions?