Should You Establish a Project Management Office (PMO)?

What is a PMO? Deploys a consistent methodology Provides common management structure Promotes best practices Training/Mentoring/Coaching Gathers/Tracks metrics from all projects Promotes PM throughout the organization

The PMO Value Proposition A successful PMO enhances an organization’s ability to execute projects and make deliverables on time and under budget while improving the overall level of quality.

The PMO Value Proposition Quality Service Price A successful PMO could improve performance in all three areas of the QSP triangle

The PMO Value Proposition Quality (More Valuable Deliverables) Service Price (More Efficient Performance) (Reduce Waste) The cost of the PMO must be exceeded by the benefits

Styles of PMOs - Centralized One PMO office with a group of managers and services Every project includes a PM from the PMO Easier to manage and consolidate metrics Expertise may not be portable among projects

Styles of PMOs - Distributed Central PMO organization not including PMs Might have multiple document repositories (for different disciplines) Supports PMs on projects Consistency is harder Coordination might be harder

Styles of PMOs - Assistive No, or very small, central organization Offers guidance to other departments on project management issues Training/coaching Good way to do a little that could pay off a lot

PMO’s in IT PMOs have been around for years IT “discovered” PMOs during Y2K Consulting firms used PMOs

Building a PMO No two PMOs are alike Define the PMO’s function PMOs are customized to the organization Define the PMO’s function Full/limited Formalize the PMO organizationally Decision making/expectations

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities What the PMO does How it is done and for whom Alignment with business value Vision statement Principles/Goals "The Acme Project Management Office (PMO) implements and supports project management methodology to enable our organization to deliver projects faster, cheaper, with higher quality, and within estimates and expectations."

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities High-level set of directions Align PMO strategically Long-term goals (years) Tactical decisions (day-to-day)

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Responsible for PMO funding Manager PMO reports to Critical for culture change Political support Policy enforcement

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Person/group staked in PMO Internal/External Collaborative organizations Suppliers Investors

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Requestors of PMO service Others the PMO helps achieve their project and business goals

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Concrete statements Lower-level milestones Achievable Measurable Timed Evaluated at end of project and/or end of time period

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Tangible deliverables Services Fulfilling others’ needs Achievement of objectives

Components of a PMO Mission Strategy Sponsor Stakeholders Clients Objectives Products/Services Transitional Activities Building the PMO Staffing Procedures

Deploying a PMO Create (or buy) a project methodology Provide training and coaching Conduct project audits/assessments Provide consolidated metrics Consulting firms can fill gaps Culture change Deploy in waves

Deploying a PMO Culture change People will have to do things differently Requires different behaviors More than teaching new skills Evaluate aspects driving behavior Reinforce positives Eliminate/change negatives Consultants can drive change sometimes

Deploying a PMO Culture change First do a gap analysis to show need Enablers/Barriers/Attitudes Success rates Roles Skills Standards Work environment

Deploying a PMO Culture change First do a gap analysis to show need Use a cross section of staff Interviews Surveys Focus groups Use the gap analysis to define the future look of the PMO

Deploying a PMO Deploy in waves Don’t change things all at once General awareness sessions Project management training Standards/Templates Reward/Recognition system Get management buy-in Audits and evaluations PMO support organization

The Methodology Processes Procedures Templates Best Practices Standards/Guidelines/Policies Must be adaptable “Methodology management”

Methodology Management Development Build/Buy/Buy and Customize Support Questions/Repository/Training Enhancements Expanding/Training/Enhancing Don’t over-engineer it. Don’t let methodology get in the way.

PMO Training Scope of training Determine needs Teach all stakeholders Decide which skills you will teach Determine needs Respond to feedback Create training strategy Delivery, audience, timing, in/outside Develop/buy curriculum

PMO Coaching More informal than training More one-on-one Talking through situations Align coaching services with deployment

Audits In order for new processes to be adopted successfully, they must be used properly Project-level audits Don’t audit every projects Identifies failures to use methodology Organizational audits

Consider outsourcing this effort. Audits Project-level audits Did stakeholders participate? Stakeholders approve project definition? Work plan being used? Is it accurate? All deliverables completed? On track: cost, duration, quality? Are risks being managed? Are issues being managed? Consider outsourcing this effort.

Consider outsourcing this effort. Audits Organizational-level audits Show how the “gap” is closing Keep you stakeholders informed Identifies compliance (or not) Identifies whether or not the PMO is a good idea for the organization Identifies if PMO is being delivered in the best way for the organization Consider outsourcing this effort.

Audits Trend successive audits Identify changes that need to be made Identify training needs Stress progress along lines of business alignment Don’t be afraid to say things are wrong It’s probably not going to be totally successful

Metrics Consolidate metrics and reporting Organization-wide portfolio This is a great way to be visible and useful to upper management This can also be time consuming Very hard to measure the value of the PMO precisely (like holding a cloud)

Metrics Problems gathering project metrics Be clear and concise Timeliness –response is low priority Accuracy – reported status is not correct Completeness – too brief Be clear and concise Use standards and automation

Metrics Savings with scope change mgmt. Savings with risk management Savings by proactive action Savings by way of re-use Assess the value of increased quality The PMO is likely to increase everyone’s workload and responsibility… so probably won’t be liked by everyone

Other PMO Services Document Repository Re-use of templates, schedules, project documents, etc. Use technology Historical archive

Other PMO Services Best Practices Post-mortem analysis on projects Lessons learned Improve methods, procedures

Other PMO Services Common Resource Pool Shared staff Re-used documents/forms Software, code library FAQs Document review services Document preparation