PMO STARTUP / IMPLEMENTATION - PMI CONGRESS PRESENTATION

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Economic Crisis? Support Organizations, promote

Project Management!

Panayotis AgrapidisMS Civil Engineer, Senior PM Consultant

[email protected]

New Project Management Trends - TRN12



Global Economic Crisis and it’s relation with PMBOK® Guide!

• Project Management Knowledge Areas.

• Their presence in the World Wide Web (WWW) pages related to “economic crisis” and “financial crisis”!

• Google utilization to reach interesting results!



“Financial Crisis”, WWW & PMBOK

X/TOTAL % MGMT/X % X/TOTAL % MGMT/X % X/TOTAL % MGMT/X %

TOTAL PAGES

INTEGRATION (X) 4,10% 0,05% 3,41% 0,05% -0,69% 0,00%

SCOPE 3,12% 0,03% 2,58% 0,08% -0,54% 0,05%

TIME 53,93% 0,33% 71,94% 0,34% 18,01% 0,00%

COST 14,86% 0,28% 12,35% 0,35% -2,51% 0,07%

QUALITY 9,72% 1,11% 7,95% 1,34% -1,77% 0,23%

HUMAN RESOURCE(S) 1,61% 6,66% 1,56% 7,75% -0,04% 1,09%

COMMUNICATION(S) 9,92% 0,11% 8,38% 0,14% -1,54% 0,03%

RISK 14,10% 3,98% 18,19% 7,77% 4,09% 3,79%

PROCUREMENT 0,95% 0,47% 0,96% 0,50% 0,01% 0,03%

GRAND TOTAL 112,31% 0,93% 127,33% 1,56% 15,02% 0,63%

DEC 2008 JUN 2009 JUN/DEC %

1OO% 149,16% 49,16%



“Economic Crisis”, WWW & PMBOK

X/TOTAL % MGMT/X % X/TOTAL % MGMT/X % X/TOTAL % MGMT/X %

TOTAL PAGES

INTEGRATION (X) 1,78% 0,05% 1,67% 0,05% -0,12% 0,00%

SCOPE 1,46% 0,03% 1,10% 0,12% -0,36% 0,09%

TIME 59,14% 0,15% 68,39% 0,11% 9,25% -0,04%

COST 7,55% 0,27% 6,62% 0,55% -0,93% 0,28%

QUALITY 4,50% 1,27% 4,51% 1,29% 0,02% 0,02%

HUMAN RESOURCE(S) 0,99% 16,82% 0,97% 15,61% -0,02% -1,21%

COMMUNICATION(S) 5,07% 0,15% 4,93% 0,18% -0,14% 0,03%

RISK 5,94% 7,52% 5,49% 6,52% -0,45% -1,00%

PROCUREMENT 0,36% 0,90% 1,10% 0,22% 0,73% -0,68%

GRAND TOTAL 86,78% 0,93% 94,77% 0,74% 7,99% -0,19%

DEC 2008 JUN 2009 JUN/DEC %

1OO% 144,96% 44,96%



Other key words related with Project as well with Organization’s Management.

• Financial Crisis: Information is mentioned in about 88% of the pages on December 2008 & in the 92% of the pages in June 2009! Control in 13% & 14%, Governance in 4,5% & 4,5%, Sustainability in 2,5% & 3% & Coordination in only 2% & 2%!

• Economic Crisis: Information is mentioned in only 9% of the pages on December 2008 & in the 23% of the pages in June 2009! Control in 7% & 18%, Governance in 2% & 2%, Sustainability in 1,5% & 1,5%, Coordination in less than 1% & 1%!



Information?



Conclusions that help us Start!• STRENGHT: The most mentioned words are Time and

Information (more, timely, share, find, reliable, lack of, need for, correct, effective)! (+ Cost, Risk, Quality, Communications, Control)

• WEAKNESS: The less mentioned Coordination and the word Management accompanying the words with which they define PMBOK® Guide Knowledge Areas (e.g. Integration Management, Scope Management)!



Acquiring investments for PM in an environment with lack of resources!

Top-Down Strategy + Step-by-Step approach:

A. Capture and satisfy critical Top Management needs.

B. First results to be achieved the earliest possible.

C. Minimum utilization of resources.

D. Step by step approach.



A. Capture and satisfy critical Top Management needs.

• Establish a direct contact with Top Management.

• Have clear ideas on what we are going to propose and how propose it.

• Invest on Time Management!

• Stay tuned to our basic principles:



• In a three to four months period we must achieve In a three to four months period we must achieve tangible results!tangible results!

• Each month we must produce specific outputs, according Each month we must produce specific outputs, according to the relative milestones foreseen in our Project’s Plan!to the relative milestones foreseen in our Project’s Plan!

• Top ManagementTop Management must be assured that themust be assured that the situation is situation is alwaysalways under control!under control!

B. First results at the earliest possible.



C. Minimum utilization of resources.• Utilize resources that will create the minimum

cost or no additional cost to our Organization.

• Create “informal” structures.

• Only exception: “strong” PM software to be utilized as a basis for the development of our “Strategic Project Management System” (SPMS).



D. Step by step approach - S.MA.R.T.

• Static: Trial data collection from each source, in any format and according to availability.

• Manual: Specific data, in fixed format collected periodically from each source and centrally inserted to the “Strategic PM System”.

• Remote: Each Sector/Division/Department collects and inserts its data to the System.

• Timeless: Each source has online access.



Necessary conditions for sustainable success.

A. Strategic Project Management Team creation.

B. Don’t be afraid to answer yes at the question: can we apply PM tools and methodologies for internal processes, Production Management, Marketing, etc.?

C. Involve as much as possible company’s sectors, especially Accounting and Budgeting sector.

D. Always focus on the next steps.



• Invest a leader with prestige and respect. Proven Invest a leader with prestige and respect. Proven experience in Project Management is a must.experience in Project Management is a must.

• Create a small team of employees, with “access” Create a small team of employees, with “access” to Organization’s key positions and data and in to Organization’s key positions and data and in which company is relying and investing.which company is relying and investing.

• Position the team directly under CEO, Position the team directly under CEO, supporting Board of Directors!supporting Board of Directors!

A. Strategic Project Management Team creation.



B. Don’t be afraid to answer yes at the question: can we apply

Project Management tools and methodologies for internal

processes, Production Management, Marketing, etc.?



Our Strategic PM Team will evolve gradually to a Strategic PMO. Having to succeed in addressing Top Management needs, while in parallel cover Sector/Division/Department Managers needs, SPMO must become Organization’s Central Nervous System, through which information is circulating in a proper and timely manner.

C. Involve as much as possible company’s sectors.



C. Unify the various worlds inside the Organization.



Top management, utilizing PM Tools and Methodologies gradually:

1. will start controlling directly how Organization’s Strategy has been translated and executed;

2. will become familiar in preparing detailed Strategy’s execution plans;

3. will be in the position to simulate the impact of proposed changes in Strategy!

C. Demonstrate the positive economic impact of investing in PM.



D. Always focus on the next steps.• Our effort is a Project with no possibility to fail.

• Trace a road map with precise time and scope milestones.

• Satisfy at least one major Top Management’s need or group of needs at each milestone.

• Understand where the thinks are going and address efforts accordingly.

• Sell more services = Increase of resources.



Not just words. Support your argumentation with specific case

studies.



ELLAKTOR ASPROFOS

Hellenic Petroleum Company - largest oil refining

company in Greece / Small Projects Department of Aspropyrgos Refinery:

PM system for projects estimation, planning & follow up. A virtual PMO has been established involving all employees.

Ministry of Public Health – Managing Authority of EU Cohesion funds:

PM system for projects planning & follow up. Portfolio Management System for Strategic Evaluation & Budget

follow-up according to program rules (n+2). A virtual PMO has been established.



INTRAKOM

Intracom Telecom - Greece's largest multinational provider of

telecommunications products, solutions and services: Unified PM system’s creation satisfying Portfolio, Program and Project

Management needs across the whole company, including Financial Planning and Accounting Division.

Planning and follow up of external & internal projects, and operations – preparation of global resource allocation plans.

Budget preparation and follow up, giving the possibility to the Top Management to drill down and discover group of projects, activities or resources that are creating budget deviations.

Asprofos - the major Greek engineering firm: Successful PMO creation, providing support to all Divisions.



Ellaktor - largest Greek construction company / IT Division: PM system’s creation in order to prepare and follow-up IT

Budget. System’s utilization to coordinate IT projects and personnel. A virtual PMO has been established in a three months period.Hellenic Power Company - the major player in the Greek electricity

market / Thermoelectric Plants Division: PM system’s creation in order to prepare and follow up Five Years Plan, Annual

Budget and the ongoing projects. Has been adopted a Top-Down Strategy and followed a Step-by-Step approach.

In the first phase we have created the system in a way to treat data at a Strategic level. The results were excellent and were achieved in a two months period. Actually we are ready to proceed creating a formal PMO.



Municipalities represent a particular type of Organization; We have started utilizing PM Tools and Methodologies for their

construction projects, supporting their Technical Division but very soon became clear that only a holistic approach could represent a real solution for them;

A virtual PMO and a Strategic PM System have been created in order to prepare and follow up the five years Strategic Plan and the Annual Budget, involving all Divisions. Municipalities have completely changed the way to prepare and follow-up their Annual Budget, passing from a reactive to a pro-active way;

Next step was to increase in detail planning and follow up of projects and procurement, involving Divisions in collecting and directly inserting data to the system.

Athens – Psychiko – Ano Liosia – Neo Psychiko Attica Region Municipalities.



Between 1996 and 2004 Greece faced four major challenges with firm deadlines:

1. realign its economy according to European Union standards in order to adopt Euro;

2. optimize ministries coordination in order to complete all projects financed by EU;

3. organize the Greek Presidency of the Council of the European Union;

4. organize the Olympic Games! An Organization facing a complex and critical situation is open

to experiment new and not well-established practices.

Strategic PMO at Greek Council of Ministers level, supporting Prime Minister’s Office!



PM methodologies and tools had been adopted and a “Strategic” PMO had been established at Council of Ministers level, supporting Prime Minister’s Office.

Data of approx. 54.000 Public Contracts had been collected from 7.500 public offices and had been managed in a homogeneous and efficient way.

Credible and timely reports, based on reliable data had been produced for the Prime Minister, the Council of Ministers as well for almost the totality of Public Organizations.

Credibility gained at the Council of Ministers, despite the disputes created inside and outside the government.




The personnel involved at all levels perceived the feeling that is part of an integrated work process.

The top-down, bottom-up communication had become more direct and precise.

Became possible to evaluate each organization, sector, category of projects and geographic area while at the same time comparing them with other similar ones.

Transparency and efficiency in planning and execution of public contracts had been increased.

Disputes on data reliability had been eliminated reserving Council’s time for discussions of broader strategic issues.




Government Projects expenditure program could be measured and monitored continuously at an aggregate level.

Prime Minister’s briefing on the handling of issues had been supported.

At Council of Ministers level, support for the development of Council forward agenda had been achieved.

The legislative work of the government had been supported in the law definition phase as well as how its application was evolving.

The whole effort succeeded because of the personal commitment of the Prime Minister and the positioning of SPMO under his direct supervision.




Time is on my (our) side! Any Organization, especially during this difficult period, perceives

the necessity to produce changes in its processes. To address change, Organization must set Strategic Goals and

prepare detailed Strategic plans, which must be based on sound data, taking into account Time.

Turn Strategic plans into practice means continuous data collection and elaboration, in other words correct & reliable & up-to-date Information.

PMO must become the Central Nervous System of the Organization and positioned directly under Top Management.

Organization will take advantage of a more effective. Management and a better Coordination and will be able to respond quickly and effectively to internal and external change drivers.



Q & A

THANK YOU



Contact Information• Name: Panayotis Agrapidis

• Email: [email protected]

• Phone: 0030 210 6728488

• Session Number TRN12

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PMO STARTUP / IMPLEMENTATION - PMI CONGRESS PRESENTATION

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