Putting the “E” in EPMO Stephen Beise PPM Domain Leader January 3, 2012

Agenda Context Typical Project Office Implementations Real World Examples Open Forum

How is your PMO positioned? Does your Project Office have a “seat at the table”? Has your Project Office become an administrative center as opposed to an execution group? Is your Project Office value in question? Does your Project Office lack influence & sponsorship?

Context

Essential Business Model© The Right Work Effective Strategy & Planning Architectural & Quality Guidance Prioritized Portfolio Efficient Management Portfolio Health PM Best Practice Exceptional Execution Product Scorecard Project Health Managed Right Executed Right

Capture Business Intention E1 – Effective Strategy Vision Strategy Business & IT Leadership Business Architecture Technology Readiness, Form & Fit Governance and Decision Process Frameworks Portfolio Architecture Technology Architecture Capture Business Intention Define Capabilities Identify Enablers Alignment

E1 Value Proposition The Right Work Programs & projects selected & prioritized according to business vision and objectives Improved objective project selection & prioritization process Regular evaluation of project and product value by Governance Ability to respond quickly to changing business needs Redundant projects/products eliminated

E2 – Efficient Management Above the line / left of the line Resource capacity / demand management Portfolio Management On time/on budget Execution consistency Right-sizing Project leaders Project Management Program Management High risk, large dollar, big impact Program design and leadership

Managed Right E2 Value Proposition Repeatable PM planning & controlling processes Earned vs. burned project health information Resource demand vs. capacity Dependency management enabled “What If” analysis enabled Individual productivity improvement

E3 – Exceptional Execution Elicit, Validate, Business Analysis Maturity model implementation SDLC design and automation Development excellence QA capability maturity Process definition and improvement Solution Development Service Management Quality Assurance ITSM maturity and roadmaps Managed services/outsourcing improvement Dashboards and metrics

Developed Right E3 Value Proposition Architecture involved early Repeatable Analysis & Requirements processes Flexible SDLC process Application/Product scorecards The right technologists in the right seat Objective “reuse” decisions

PMO Role & Responsibility Business Analysis Quality Assurance Requirements Engineering Change Mgmt Software Development

Project Management Execution Product Development Lifecycle PPM Context -Strategic Planning Alignment Financial Planning Intake: Identification & Categorization Evaluation, Selection and Prioritization Resource Demand Management Governance -Dashboards - Reports Executive Reports Stage Gate Reviews Project Health Project Management Office -Resources Assigned Time Tracking Project Setup Project Schedule Dependencies Initiate, Plan, Execute, Monitor & Control, Close - Time Tracking Results Project Financials Change Control Project Management Execution Objectives Products Product Development Lifecycle

Portfolio Management Context Strategic Planning & Business Architecture Aligning Processes Identification Categorization Evaluation Selection Prioritization Portfolio Balancing Authorization Monitoring & Control Processes Portfolio Review & Reporting Strategic Change Source: PMI PFM v.1

Project Management Context Executing Processes Direct & Manage Project Exec. Perform Quality Assurance Acquire Project Team Develop Project Team Distribute Information Manage Stakeholder Expectations Select Sellers Planning Processes Develop Project Management Plan Collect Requirements Define Scope Create WBS Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule Estimate Costs Determine Budget Plan Quality Develop Human Resource Plan Plan Communications Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Plan Procurements Initiating Processes Develop Project Charter Identify Stakeholders Closing Processes Close Project or Phase Close Procurements Monitoring/ Controlling Processes Monitor & Control Project Work Perform Integrated Change Control Verify Scope Control Scope Control Schedule Control Costs Perform Quality Control Report Performance Monitor and Control Risks Administer Procurements Source: PMI PMBOK Fourth Edition

Program Management Context Executing Processes Direct & Manage Program Exec. Manage Program Resources Manage Program Architecture Manage Component Interfaces Distribute Information Conduct Program Procurements Engage Program Stakeholders Approve Component Initiation Planning Processes Develop Program Management Plan Develop Program Infrastructure Plan Program Scope Define Program Goals & Objectives Develop Program Requirements Develop Program Architecture Develop Program WBS Develop Program Schedule Plan Communications Plan Program Risk Management Identify Program Risks Analyze Program Risks Plan Program Risk Responses Plan Program Procurements Develop Program Financial Plan Estimate Program Costs Budget Program Costs Plan Program Stakeholder Mgmt. Identify Program Stakeholders Plan & Establish Program Governance Structure Plan For Audits Plan Program Quality Initiating Processes Initiate Program Establish Program Financial Framework Closing Processes Close Program Procurements Approve Component Transition Monitoring/ Controlling Processes Monitor & Control Program Performance Manage Program Issues Monitor & Control Program Scope Monitor & Control Program Sched Report Program Performance Monitor & Control Program Risks Administer Program Procurements Monitor & Control Program Financials Manage Program Stakeholder Expectations Provide Governance Oversight Manage Program Benefits Monitor & Control Program Changes Source: PMI Standard for Program Management Second Edition

Project & Program Management PPM Context Portfolio Management Project & Program Management Identification Categorization Evaluation Selection Prioritization Balance Authorize Initiate Plan Execute Close Monitor & Control Review & Report Strategic Change Pre-Project Project

Typical Implementation Approaches

Typical PO Implementation Typical Goals Center of Excellence Org PM Maturity Central PM Staffing Org EPM Tool Administration Organizational Training Typical Approach (waterfall) Org Assessments Define all Roles/Responsibilities Define & doc all processes Train all PM’s Rollout big heavy PM & SW templates, methodologies & EPM tool Executives Project Office Managers Directors Goal: Enterprise Adoption Project Resources & Team’s

Typical PO Implementation About 1 Year Later Typical Outcomes Lack of Influence Viewed as Bottle Neck Incomplete Adoption ROI Questions Keeper of Templates & Admin Executives Managers Directors Project Office Incomplete Adoption Project Resources & Team’s

Trissential PO Approach A Better Way Tactical (90 Day) Goal Improve Measurement & Control Improve Budget & Est. Process Enable key organizational goals Manage Project Portfolio Outcomes Measurable ROI early Mitigate Org. Risk Success Stories Executive Support Supplemental PM Maturity Begin Org. Change/Adoption Executives Tactical Approach “Deep Slice”: - High Risk Area - Strategic Program Project Office Managers High Risk Program Directors Measurement & Control Strategic Goal Planning & Estimating Project Resources & Team’s Pick one, rollup sleeves, do it better, provide objective information & solidify sponsorship

Real World Examples

PMO 1 PMO Context: Relatively new, low maturity, PMs not reporting into PMO Goal: Enterprise adoption of consistent PM process Approach: Educate and train PMs on “their” process Execution: Minimal buy in from executives, management. Result: Oh no, PMO. Keeper of the templates. PMs blamed for most project issues

PMO 2 PMO Context: 4th PMO in 4 years, IT PMs report into PMO Goal: Enterprise adoption of PM process with a focus on a new PPM tool, weekly governance Approach: Educate and train PMs on “their” fundamental processes, stage-gate governance, portfolio management Execution: Engaged executives, directors, managers and project level resources. Built foundational processes. Implemented new tool rapidly. Over time stopped going to governance meetings. Result: Died.

PMO 3 PMO Context: Low maturity but involved in portfolio management and project execution. PMs report into PMO. Goal: PPM maturity over 2 years that support organizational goals Approach: Roadmap of change, ran like a project with a focus on organizational change management. Execution: Engaged executives, directors, managers and project level resources. Built foundational portfolio and project management processes. Top down, bottom up education. Postponed new tool implementation until processes executed for 1 year. Result: Seat at the table. Working towards resource capacity / demand management.

Key Take-Aways

Focus on Organizational Goals & Execution PMO Journey Maturity Improvement Realistic Sequenced Improvement Roadmap Top Down / Bottom Up Focus on Organizational Goals & Execution

Discussion Stephen Beise sbeise@trissential.com