1. The De-centralized PMO
“How do you measure its value?”
Sam Ware PMP
Introduction
Who I Am
How I got here
I work with Debbie Balaam on a DCA project
She asked if I knew someone that could give a pitch on a Decentralized PMO
I stood up a decentralized PMO and managed one for five years
Worked in a PMO for a couple of years
Helped a Federal Agency stand up an EPMO a couple of year ago
Oh why not….so here I am

2. The De-centralized PMO – What is it?
PMBOK Guide 3rd Edition 2004 states-
“A PMO is an organizational unit to centralize and coordinate the management of projects under its domain”
Like a project – each PMO is unique ?

3. Centralized De-centralized
The PMO Continuum
Project Planning
Cost
Schedule
Performance
Quality
Shared Resources
Mentoring & coaching
Lessons Learned
Standardized methodology
Templates
Training
Enterprise perspective
Centralized De-centralized
Project Results
PM Support
Story #2
The N-G PMO
Gov’t customer told us PM was important
Incentivized the contractor to use good PM by paying an additional 5%
Contactor revenue from the customer was $200M per year – 5% would add 10M to the bottom line each year
Draw org chart PMO with support to 6 projects
Gov’t evaluated performance quarterly
Cost
Schedule
Quality (Customer Satisfaction)
Risk
Systems Engineering

4. Top Ten Reasons Why PMO’s Fail
No clear purpose or wrong focus
No “buy in” by stakeholders
Perception of more red tape and bureaucracy
Viewed as a “quick fix” to deep-rooted problems
PM policing – viewed only as enforcers
Too academic and far from reality
Veneer of participation and hidden agendas
Politics and power struggles
High expectations and fuzzy focus
Hard to prove value
TOP 10

5. How do you Measure PMO Value?
Tangibles &
Intangibles
Before we can measure it we have to know what it is?
This is difficult
There is tangible value
There is intangible value

6. What is Value? Contribution to business performance
Measurable benefit to the stakeholders
The objectives of the seminar or the take aways -
Provide an overview of the EVM concept – what it is and the benefits of using it
Provide a roadmap on how EIO can implement EVM

7. Who are the stakeholders?
Senior Management
Strategic Planners
Operational Departments
Functional Managers
Marketing and Sales
Project Managers
Project Teams
CFOs, DOF, OMB
Project Oversight
Others

8. Today’s PMO Challenges
Acceptance from management
“Buy In” from the Project Managers
Limited resources (staff & budget)
Cultural issues
Resistance to standards/processes
Changing priorities
Communication
Selling PMOs (Reorganizations)
Staying aligned with business objectives
Meaningful metrics
Exercise
Throw out for balls to keep audience awake
Bring them to the front of the room
Throw balls to one another
Enter PMO
Throw the balls to the right – measure performance
PMO says I am going to measure your performance-cycle time – measure performance
Process Improvement – using collaborative approach – time process.

9. Exercise Observations
Defining the process improved performance
Developing metrics improved performance
Process improvements improved performance
Warning – Don’t measure something just because you think its important or just because you can measure it 12 6 3 9

10. The Key Question
How do you show the linkage of PMO activities to “Value provided”?

11. Value Metrics Should Be:
Derived from strategic goals
Show linkage between activities/deliverables, value & outcomes
Dynamic, keeping pace with changes in strategies, processes & environment
Developed collaboratively
Used as medium for articulating and communicating value

12. Assessing “Value” Metrics
Must be easy to understand, collect and measure
Must show cost effectiveness and improvement
Reduce cost or cycle time
Improve quality
Track and reduce waste

13. Sample Value Measurements
Increased number of successful projects
Increase revenue/decrease cost – ROI
Growing intellectual capital – leverage lessons learned
Faster product delivery – reduced time to market/solicitation to contract award
Reduce numbers of projects at risk
Increased customer satisfaction

14. Strategy - Summary Develop the business case for the PMO
Use collaborative approach to identify value - no coercion
Use 360 degree feedback
Measure what matters

15. How you measure PMO value?
“Measure what is important to the stakeholders”

16. The Value of PMOs
PMI states that PMOs result in a 10% increase to overall project management effectiveness….based on surveys
Success

17. Questions? ?