Project Office Effectiveness Educating the Organization on How to Use a PMO February 22 nd, 2006

PMO Education Series  2 Agenda Project Management Office (PMO) – a definition Types of PMO implementations What the Business needs from a PMO How each PMO model delivers on the needs Building PMO maturity Conclusion – Getting the most from your PMO

PMO Education Series  3 Project Management Office (PMO) Definition  An organizational program that is used to add consistency to the implementation of project management practices and to enhance the performance of the project management discipline in a way that contributes to business effectiveness Principle  Management will only invest in initiatives when they prove their ability to deliver benefit under controlled situations; the PMO must facilitate improved business performance while providing management greater control of that achievement

PMO Education Series  4 Project Support Office Categories Weather Station  Roll up performance of many projects Standard Bearer  Provide the project management processes, standards, guidelines, templates, tools, etc. Command Center  Strong oversight and direction; Run governance forums Resource Pool  Provide the resources for PM discipline Service Center  Provide support services to project teams from the Business Areas Program Office Partner  “General Contractor” for the business program

PMO Education Series  5 Generic Work Pattern Work Pattern  This is the most abstract pattern for work accomplishment in any situation  It is composed of vital elements of a performing system; each piece will still have to fit as “architected” for the system to function appropriately Person Role AssetsSupply Activity Constraints Results Respects Fills Performs UsesConsumes Produces

PMO Education Series  6 “To Be” Order Follow process to establish architectural assumptions for the programs  Constraints  Results  Assets  Supplies  Roles  People  Activity Person Role AssetsSupply Activity Constraints Results Respects Fills Performs UsesConsumes Produces “To Be” systems are constructed in this order

PMO Education Series  7 What the Business Needs From a PMO Define PMO Results Required by the Organization  Common Objectives Prevent surprises Improve data accuracy Compare performance on an equal basis Place management in control Increase competency and capacity Increase estimate accuracy Guaranteed service levels Achieve business goals and objectives (return for investment)  Other Objectives Provide a complete new chain of command for projects

PMO Education Series  8 How Project Offices Evolve Weather Station  Managers get surprised by project failures and want more visibility Standard Bearer  Management cannot compare project results since everyone has different ways of performing and reporting Command Center  Managers get frustrated with project decisions and enforce greater control through reviews, gates and permissions; PMO analysis is critical at this level Resource Pool  Managers have few qualified PMs and establish a discipline to build competencies in these skills Service Center  Projects or project managers never seem to have the bandwidth to practice all the PM process areas effectively, so management provides a service and support office to help each project do some of the things they need them to do Program Office Partner  Managers realize that excellence only matters if business performance is better

PMO Education Series  9 Building PMO Maturity Utilize available maturity models for your business  Software Engineering Institute (SEI) Capability Maturity Model Integrated (CMMI)  GAO Information Technology Investment Management (ITIM) Framework  Institute of Enterprise Architecture Developments (IFEAD) Extended Enterprise Architecture Maturity Model (E2AMM)  NASCIO Enterprise Architecture Assessment Think project lifecycles but differentiate project from PMO  Start with beginning phases and work one or more projects through the lifecycle Empower planning with any of the PMO types (visibility of planning, standardized plan criteria and reporting, planning gates and analysis, planning resources, planning services or planning with business validation) Establish appropriate initiation under any of the PMO types Continue through execution, control and closure Remember the order of establishing a “to be” model  Constraints; Results; Assets; Supplies; Roles; People; Activity (yes activity is last)  Ensure that every activity implemented is traced to required results and is staffed appropriately

PMO Education Series  10 PMO Maturity Differentiate the PMO from the PM  The project office has a different role that the Project Manager The project manager must make the project successful The PMO must help management be successful  What good is a PMO doing with pass-through reporting – almost NONE Management sees the problems better, but still may have no capacity to correct the situation  PMO value is in analysis and methods to correct performance Determine where the problems lie Have methods that can help management take appropriate action Prevent management from contributing to failures  Example One project has 25 risks and another 5 which is in more trouble? How can management be in better control in either of these situations?

PMO Education Series  11 Risk Example

PMO Education Series  12 Beyond PMO Maturity PMO Maturity is Heavily Dependent Upon Management Maturity  No project manager can correct for out of control management  No PMO can overcome the impacts for projects where management is out of control  PMO cannot just look inward and force PMs to put change management and other disciplined practices in place and expect to succeed; it must focus outside the PMO and facilitate the ability for management to see how their actions drive failure – and help them form the habits for success Look to milestone gates that have to prove ability to succeed prior to continuing with next phase money Demonstrate how much pressure management is placing on the project with unplanned effort Provide ways to operate more contractually to build strengths and prepare for worst cases; review causes for failures with managers and plan to avoid them

PMO Education Series  13 Example - Pressure Index

PMO Education Series  14 CONTINUOUS REFINEMENT Thinking About Tomorrow Creating a Vision Defining a Risk- Mitigated Path to Success Realizing the Vision TODAY FUTURE DEMANDS TRANSITION PLANNING IMPLEMENTING “Back-casting” Determining Priorities PREPARING THE ORGANIZATION INTELLECTUALLY BUILDING CONSENSUS AMONG LEADERS Evolving Enterprise Landscape Political/Public Support Project Strategic Planning Enables: – Planning Very Large Projects, Beginning with the End in Mind – Aligning the Project and the Enterprise for the New Reality – Planning for the Correct Vision – Planning to Avoid Traditional Causes for Failure Defining the Worst Case Understanding the Future Operational Environment Generating Strategic Decisions Potential Causes for Worst Case Scenarios Take the Pulse and Diagnose Frequently Project Strategic Planning Process

PMO Education Series  15 Summary PMO is not just about PM There are many flavors of PMO; all will fail if management is not placed in control Know what results your PMO needs to achieve Plan to differentiate the PMO from the project Expect that analysis will be much more important than facts Provide methods to correct situations, don’t just report them Help management change for their own benefit; work to their bosses’ agenda

PMO Education Series  16 Questions & Answers ?