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Institute of Management | Copyright 2010 | Version 2.2

Government PMO ForumAdel Khreich, Michael Chachaty January 2011

PMO Practices & Trends


About Institute of Management

A Division of Blue Visions Management Project Management Consulting

Vetab Registered Training

Organisation (Provider No 91308)

Project Management InstituteRegistered Education Provider(REP Provider ID 2670)

AIPM Endorsed Course ProviderEndorsed by theEndorsed by the

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About blueVisions

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• Project management services

• Specialist project planning

• Contract services (including dispute resolution and expert witness testimony),.

International consultancy focused on increasing project certainty and reducing risk through innovation, culture and excellence in delivery. Provides the leadership, technical excellence and leading edge tools and methodologies to create platforms for sustained long-term business improvement .

• Program and Project Management Capability improvement including assessments, benchmarking, project health checks, PMO start-up and methodology development.


Objectives• Understand challenges for organisations and

PMOs;• Overview role of PMOs in training;• Familiarisation with the various PMO Models

and industry trends; • Develop awareness of the key considerations for

implementing a PMO; and• Understand maturity levels of PMOs.

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Administration• A Copy of the presentation will be on our

websites so no need to take a lot of notes

www.bluevisions.com.au

www.im.edu.au

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Understanding Challenges and Purpose of PMO


Typical Challenges

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For organisations undergoing change…• Competitive advantage• Time to market of product development• Quality requirements• Costs and profitability• Innovation strategy• Business risks (not just the project risks)• Consistency• Efficiency• Governance and transparency


Government vs. Private

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Private Sector Public SectorStrategic business development Policy driven Increase in market share Response to perceived/actual

service/social needs Remain competitive Pressure on funding, IPART, etc…Profit focus Rarely focused on profits, more on

Allocations Global Local Efficiencies Availability of funding and annual

cash flow cycles – more and more limited resources



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Private Sector Public Sector Program Management Office:Resource management –prioritizing

Difficulties in managing resources across conflicting needs

Set standards for achievement of business benefits and tracks

Sets standards but rarely able to track

Deliver the product to market Not commonly involved in deliveryTrain the organisation - Develop capability

Big role in training



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Private Sector Public SectorSometimes have sunset clauses Tend to be permanent

department(s)Multiple PMOs

Less documentation Significant documentation requirements to satisfy policy/legislation

Organisation focused policies, procedures and governance

Difficult to influence whole organisation - subject to political influences

Reporting requirements increasing Significant compliance reporting requirements


Typical Challenges

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For PMOs…• Resource Management is the biggest challenge

• Sourcing skills• Conflicting demands on resources

• Decision making ability & conflicting authorities• Competing requirements and priorities• Governance and transparency• Improving capability• Demonstrating value – being able to measure value is

the first step


Trends in Project Management

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Over the last decade…• Much more awareness of standards• Significant investment in training – competency and

knowledge based• More demand for formal qualifications• Sharp increases in membership of industry associations• Buyers have become more knowledgeable and demand

evidence of good practice


Missing Ingredients

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Project Management alone can cause issues• Misalignment with strategy:

• Project targets met but fails to achieve business results (wrong scope)

• Misalignment with market:• Project targets met but was the wrong project

• Poor ROI:• Lack of benefits management (plan and track)

• Ineffective Coordination:• Successful project as a standalone but lost

opportunities for collaboration with interdependent projects


Trends in PMOs

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US research shows…..• Maturity of PMO has become a measure of maturity of

organization in Project Management capability• More than 80% of large companies have or are

implementing a PMO• Greater understanding of strategic value of PMOs• Increased challenges in resource management• PMOs relied on to progress training


What is a PMO?

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PMO represents internal capability…• Program Management Office or Project Management Office

(models to be overviewed later)• Business Unit Level• Functional (department) level• Project level

• To provide centralised and structured leadership & infrastructure for managing & controlling multiple programs and projects• Processes & methodology• Support• Tools• Best practice• Governance


Why Have a PMO?

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It is all about the Business…• Part of maturity growth• For continual improvement in achieving business

objectives• For consistency• To be single point of contact within an organisation


Purpose of PMO

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Delicate balance to avoid conflict• Make best use of company’s time, money and human

resources• Embed consistent repeatable practices in program and

project management• Focus on business level strategic success• Define the metrics required for monitoring & control• Measure program performance• Report to executive


Value of PMO

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Project Management Solutions, Inc


Role of PMO in Training


Role of PMO in Training

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An increasing Role ….• Basic technical skills still accounts for more than 50% of

training• Training in software tools skills is also very high• Training in soft skills and business skills is increasing

rapidly as recognition is improving• Areas for improvements:

• Formalise qualifications for PMO staff• Formalise competency frameworks• Formalise competency assessments• Clear capability development roadmap


Skill Set for Project Managers

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Technical Skills – The Science (30%)• Process Champion• The PM Knowledge Areas (S,T,C,R,Q,R,P, C)• The Ability to apply the knowledge (Experience)• Tools and metrics

Soft Skills – The Art (70%)• Stakeholder management (Support and buy-in)• Communication (clarity and relevance)• Team leadership (high performance)


Skill Set for Program Managers

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Business Skills• Business Champion – achieving Benefits,

outcomes, ROI• Market, environment • Process and project management “acumen” only

Leadership Skills• Lead teams (to achieve high performance)• Communication (to influence)• Stakeholder management (engagement)


Skill Set for Portfolio Managers

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Business Skills• Product Champion – focus on market &

customer• Determine business value of a product / project• Technology / product changes in market place• Resource & risk management

Leadership Skills• Communication (to influence)• Stakeholder management (engagement)


PMO Models


Why so Many Models?

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One size does not fit all. Models depends on...• Size, structure and geographical spread of

organisation• Complexity of investment (works) program• Intended PMO Charter• Proposed function• Amount of likely influence• Level within the organisation• Type of organisation (business)


PMO Models

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Typical Models Discussed in this Presentation• Project Control Office – project level• Functional Program Office – functional (department)

level• Enterprise PMO – business (unit) level

Other Models• Project Office – actually delivers projects • Support Model – supports through training and

administration• Resource Model – provides PM resources to other

business units• Or a combination of the above...


PMO Models

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Project Project Project ControlOffice

ProgramA

ProgramB

EnterprisePMO

Tools Systems Support FunctionalProgram

Office

IT Engineering

GeneralManagement


Trends on PMOs

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An increasing trend in....• Trust by executives• More than 50% reporting to the highest level of the

executive• Authority and empowerment• Work on strategic tasks

– Strategic planning– Governance– Key advise to executives– Benefits

• PMO managers selected for their business acumen not just PM skills

• Starting to be involved in portfolio management


Project Control Office Model

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• Support for project teams• Maintain procedures• Support tools• Schedule maintenance• Earned value tracking• Project metrics and tracking• administration


Functional Program Office Model

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• Supports program and project managers within a department

• Central repository of program and project information• More administrative in nature

– Maintain program schedules– Tracking of data– reporting


Enterprise PMO Model

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• Useful for large organisations with distributed environment

• The centre for program management competencies & practice within an organisation

• @ level comparable to other critical functions– PMO manager part of senior management– PMO manager has sufficient influence to broker

tension


Enterprise PMO

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Knowledgemanagement

Knowledgemanagement

ReviewsReviews

ToolSelection /

support

ToolSelection /

support

Processdevelopment /

support

Processdevelopment /

support

Professional development /

support

Professional development /

support

ReportingReporting

ManageProjects,

Programs &Portfolio

ManageProjects,

Programs &Portfolio

Resourcemanagement

Resourcemanagement

TrainingTraining

CoachingCoaching

QualificationsQualifications

Benefitsrealisation

Benefitsrealisation

PIRPIR

Healthchecks

Healthchecks

EnterprisePMO

EnterpriseEnterprisePMOPMO


Elements of Enterprise PMO

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• Empowerment by organisation – align to strategy• Operational management

– Admin– Schedules– Tracking and reporting– Change management & documentation– Facilitation– Risk management

• Methods & processes• Information systems – centralised, accessible• Tools – evaluate, select, deploy & maintain• Metrics & tracking – track, collect, analyse data and report• Management review – formal health checks, gates, post completion,

etc..• Competency training – learning and continuous improvement


Tools for PMO

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Much more sophistication around...• Information management• Schedule management• Financial management• Risk and issues management• Change control• Benefits management• Resource and capacity management• Document storage with version control• Forums and discussions• Contact lists• Quality control• Reporting tools


PMO Top 5 Priorities

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Current trends and focus...1. Improve resource planning & forecasting

– Skills– Demand– Capacity– Contracted vs. Internal – contracted is still more than 50%

2. Improve processes3. Enhance reporting and metrics4. Improve performance measurement - KPIs5. Improve governance


Implementing a PMO

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• How it is implemented impacts success– Buy-in, resistance– Roles & responsibilities– Decision making ability– Political environment– Level within the organisation

• Use a PM approach to implement• Interactive and incremental (multiple cycles including pilots)

– Foundation• Charter & objectives• Current capability vs.. future (end) state – gap analysis• Transformation plan (roadmap)• Senior sponsor – visible sponsorship• Appoint PMO senior team• Communication and change plan

– Transformation pilot (incremental development, training, rollout, early wins)– Fully functional– Refine & improve– Regular assessment of success


Change is Personal

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Understanding Capability & Maturity Levels


Observation

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Basis of strong capability:• Effective project managers (good technical

and soft skills with demonstrated experience)

• Standardised processes (for consistency)• Standardised tools (for efficiency)


Capability Development

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… maturing together in step


The 5 Levels of Maturity

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Level 1 – awareness of process

Level 2 – repeatable process

Level 3 – defined process

Level 4 – managed process

Level 5 – optimized process

Processes not documented , terminology not standardised

Basic practices established, and processes are developing, some are used consistently

Processes documented and integrated to some extent

Processes repeatedly applied and measured against overall performance measurement framework.

Continuous process improvement is being enabled.


Developing Capability

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• An incremental process with a carefully designed change management program

• Master the people aspect of change

• Analyse before you optimise - Identify the opportunities, conduct benchmarking exercises and capability maturity assessments

• Strategies to enable early adoption and create ownership within the project management community

• Consider impact on organisational design, job or role definition, performance management, training needs,


Industry PMO Maturity

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Project Management Solutions, Inc


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