1. Setting up a PMO

2. Today’s Webinar will feature…
PMO Setup Issues and Techniques
Mark Perry, Director of PMO Services, gantthead
A Practical Approach to PMO Setup
Cornelius Fichtner, Host of The Project Management Podcast™
Questions and Answers

3. PMO Setup Issues and Techniques

4. PMO Setup Issues and Techniques
What we are seeing - Issues
Drivers
Trends
Constraints
Actions
Observations
What we are seeing – Techniques
Inwardly focused approach to PMO Setup
Constituent focused approach to PMO Setup
Recommendations

5. PMO Setup Issues and Techniques
What we are seeing - Drivers
Cost savings
Return on investment (as a justification mechanism)
Desire to first maximize existing software and next consider purchase of new
Preference for incremental improvement
Resistance to “quantum change – big bang” approaches
Willingness and/or preference to start small
Minimize risk
Accelerate success
Rapidly and cost effectively adopt and expand

6. PMO Setup Issues and Techniques
What we are seeing - Trends
Collaboration and agility
Techniques driven, not necessarily technology driven
Focus on capabilities and outcomes
Driven by practitioner and team behaviors
Common sense CMM/PMM Level 3 and beyond
Not management edict or via a formal maturity program

7. PMO Setup Issues and Techniques
What we are seeing - Constraints
Staff
Number
Skill mix
Share-ability
PMO Budget
At risk
Business cycle
Timing
Unique issues
Product of the Project Marketability
Growth
Time
Stabilization
Rapid Growth
Correction
Mission Critical
Productivity
Innovative
Product Types

8. PMO Setup Issues and Techniques
What we are seeing - Actions
Broader view on project management and PMOs
Enterprise, IT, Line of Business, Program Offices
Business driven view on the purpose of PPM and the PMO
More focus on:
Goals, objectives, and needs of the business
Using the tools and infrastructure that we already know and have
Value and leveraging organizational skill
Less focus on:
Theoretical approaches and models for the PMO
Overly bureaucratic project management approaches
Imposing systems and methods on the business

9. PMO Setup Issues and Techniques
What we are seeing - Observations
This all leads to a needs of the business driven, constituent-oriented focus, but… it is hard to do.
Sometimes, no sooner is the potential for a PMO mentioned than a runaway freight train leaves the station – fully loaded with ideas and opinions for what the PMO ought to be
And, lost in the debate is the definition and understanding of the business needs for the PMO, the customers of the PMO, the specific goals that need to be reached, and the problems that the PMO exists to solve

10. PMO Setup Issues and Techniques
What we are seeing - Techniques
A Case Example
Inwardly Focused
Constituent Oriented

11. PMO Setup Issues and Techniques
What we are seeing – Case Example
The CEO of an emerging technology company was faced with many of the common problems associated with market success
Large companies were keen to engage in pilots for their technology
Business partners were lining up to develop technology partnerships
Existing customers were adopting the technology enterprise-wide
Business as usual was not working
There were too many projects underway and in the pipeline
With the company doubling in size and projects increasing more than fourfold, the CEO presented to the leadership team the idea of a PMO

12. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
The CEO hired a PMO Manager
Previous experience as PMO Manager at other companies
PMP Certified
Week 1
CEO and leadership team each met with the new PMO Manager
Week 2
PMO Manager presented his strategy

13. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
Organization
- Small PMO team
- Methods and standards
- Reporting
- Consulting and mentoring
- Biz units owns projects
Tools
- Project management
- Resource management
- Issues management
- Executive reporting
Project Management
- Singular methodology
- Aligned to the PMBOK
- Accessible from the intranet
Training
- Project management basics
- Tools usage
- Methodology
Coaching Model PMO

14. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
End of month 1
5 project managers hired
End of month 2
Vendor demonstration arranged for leadership team
PMO Manager had experience with tool at other IT PMOs
Tool implemented and used by the PMs in the PMO
End of month 3
Methodology was developed and made available
Months 4 through 6
Project management training sessions were held
PMBOK® Knowledge Areas, tool usage, methodology

15. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
Six month checkpoint…
How is the PMO Manager doing..?
Is his strategy working..?
Is the leadership team is satisfied..?
Are the needs of the business are being met..?
Is the PMO Manager up for a pay increase or bonus..?
Or, is the PMO Manager at risk of being fired..?

16. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
Six month checkpoint…
VP of Sales “Unhappy”
Too long to get new projects underway
VP of Professional Services “Unhappy”
Methodology did not effectively address management of requirements and pricing of billable work
VP of Business Development “Unhappy”
Non-revenue producing business development projects not supported
Manager of Product Development “Unhappy”
Development resources still being pulled away for sales support
Chief Financial Officer “Unhappy”
Data in PPM tool not accurate nor useful for revenue planning

17. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
Six month checkpoint…
As for the CEO, the CEO was appreciate of the efforts of the PMO Manager, but…
Too much focus on project management minutia
Too much bureaucracy
Not enough focus on the needs of the business
Not enough focus on the customers of the business

18. PMO Setup Issues and Techniques
What we are seeing – Inwardly Focused
The first year anniversary of the PMO
The PMO Manager resigned
The CEO tried to convince the PMO Manager to stay
The CEO still believed in the value of the PMO for the company

19. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
The CEO hired a new PMO Manager
No previous experience as PMO Manager at other companies
Not PMP Certified
Week 1
CEO and leadership team each met with the new PMO Manager
Week 2
PMO Manager scheduled a PMO planning work session
Prior to the working session the PMO Manager distributed a one page business planning template and asked each member to come prepared with a working draft of their input

20. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
Top three problems to be solved by the PMO
_________________________________________________
Vision
The vision of the PMO is to __________________________
Mission
The mission of the PMO is to _________________________
Goals and objectives
The top three goals and objectives of the PMO
Goal 1 __________________________________________
Objectives _________________________________
Goal 2 __________________________________________
Goal 3 __________________________________________

21. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
By the end of the working session, the leadership team had arrived at a consensus position for all four components of the business planning template

22. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
Top three problems to be solved by the PMO
Poor forecasting and management of project-based revenue
Not enough capacity to perform more projects
Lack of visibility of all the projects of the company
Vision
To be an enabling and facilitating organization that is focused on, and accountable for, the project-based success of the company
Mission
To develop and execute annual plans and strategies that solve the major project-related problems faced by the company
Goals and objectives
The top three goals and objectives (how much by when) of the PMO
Goal 1: Improve project revenue management
Objectives: Reduce forecasting margin of error to 5 percent by year end
Goal 2: Increase project capacity
Objectives: 100% increase by year end
Goal 3: Provide holistic view of all projects
Objectives: Effective project reporting in place within 90 days

23. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
By the end of the working session, the leadership team also agreed that other areas of need such as business development getting resources for non-revenue producing projects and product development wanting to stop sales from borrowing development resources would be secondary in importance over the next twelve months
And, after the working session, members of the leadership team commented to the CEO on how different the approaches of the PMO Managers had been

24. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
The next six months
PMO Manager worked closely with the three project managers assigned to the large, complex customer-facing projects
PMO Manager helped the PMO Officer streamline and right-size the project management methodology working with head of sales and the top account manager
PMO Manager helped and provided oversight to the PMO Officer responsible for all aspects of the PPM system
CEO and leadership team very happy with progress
With the same team, the new PMO Manager accomplished more in 6 months than the previous PMO Manager accomplished in a year

25. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
What was the difference..?
It wasn’t the five project managers in the PMO
It wasn’t the project management skill of the new PMO Manager
It wasn’t the new PMO Manager’s knowledge in methodology or tools

26. PMO Setup Issues and Techniques
What we are seeing – Constituent Focused
The difference was all about focus..!
The first PMO Manager was inwardly focused
Organization, methodology, tools, training
Minimal input from the leadership team on PMO strategy
The second PMO Manager was constituent-oriented
Problems to be solved by the PMO
Vision, mission, goals and objectives
PMO strategy a by-product of leadership team input

27. PMO Setup Issues and Techniques
Recommendations
Have a constituent-oriented focus
Problems to be solved, benefits, value
Avoid becoming inwardly focused
It is very easy to be consumed in PM minutia
Forget about all of the PMO hype
Relentlessly focus on needs of the business, value, and benefit realization
Have a continuous improvement mindset
There are only two kinds of PMOs
PMOs that are business driven and PMOs that are not

28. Now on to… A Practical Approach to PMO Setup Cornelius Fichtner
Host of The Project Management Podcast™

29. Now on to…
Questions and Answers

30. Thank You..!
Setting up a PMO