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® Rad and Levin, 2004 1 Advanced Project Management Office: A Necessity for Today’s Global, Complex Projects Dr. Ginger Levin Project Management Consultant Adjunct Professor – University of Wisconsin-Platteville Lighthouse Point, Florida, USA 954-783-9819 954-783-9235 (fax) ginlevin@aol.com
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® Rad and Levin, 2004 2 Presentation Overview Motivations to Establish a PMO PMO Functions – Project and Enterprise Determining Functions to Perform PMO Implementation
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® Rad and Levin, 2004 3 The Project Management Office is: The organizational entity with full-time personnel to provide a focal point for the discipline of project management It may be called a: Project Office Project Support Office Program Management Office Project Management Group Project Management Center of Excellence Directorate of Project Management Definition of a PMO
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® Rad and Levin, 2004 4 The Increased Importance of a PMO The functions of the PMO have evolved: It is not just an organization to provide support for scheduling and monitoring activities on a single project It is becoming an essential component for the future success of the organization It provides services and organizational focus in core and supporting areas of project management
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® Rad and Levin, 2004 5 The PMO helps to manage the organization’s future through: An emphasis on ensuring consistency and uniformity in projects An organizational desire to excel An enterprise focus on improvement in project management competency A reduction in project overruns An increase in the delivery speed of projects An increase in customer satisfaction Reasons to Establish a PMO
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® Rad and Levin, 2004 6 PMO Goals Set Industry Standards Show Higher Corporate Profits Integrate Project Management into the Organization Improve Divisional Project Management Performance Have Competent and Productive Project Teams Implement Consistent, Formalized Project Management Finish this Project on Time/Budget Funding and Commitment Organizational Recognition
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® Rad and Levin, 2004 7 Presentation Overview Motivations to Establish a PMO PMO Functions – Project and Enterprise Determining Functions to Perform PMO Implementation
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® Rad and Levin, 2004 8 PMO Functions Project-Focused Consult Mentor Augment Enterprise-Oriented Promote Archive Practice Train
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® Rad and Levin, 2004 9 Project-Focused Functions Augment Fill the gaps in team resources Mentor Work side by side with novice team members Consult Provide occasional validation and assistance
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® Rad and Levin, 2004 10 Project Areas of Assistance Standards for managing projects Standardized report forms PM software Proposal development methodology Project start-up assistance Charters and scope statements Kickoff meetings Project risk assessment Project visibility room Project requirements changes Project workbook or library Timesheets Administrative assistance Project reviews Issue resolution Project closeout support
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® Rad and Levin, 2004 11 Enterprise objectives have more long-term effects and include: Promoting consistency and uniformity in project management Archiving project performance data Providing a centralized point of reference for the project management practice Imparting specific skills and knowledge through training to project professionals Enterprise-Oriented Functions
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® Rad and Levin, 2004 12 Enterprise-Oriented Functions Promote PM culture advocate Archive Clearinghouse for project performance information Practice Best practices and state-of-the-art procedures and guidelines Train Ongoing training in PM
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® Rad and Levin, 2004 13 Enterprise Areas of Performance Estimating Project selection Data integration Reward and recognition Project audits Communication facilitation Customer satisfaction
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® Rad and Levin, 2004 14 Presentation Overview Motivations to Establish a PMO PMO Functions – Project and Enterprise Determining Functions to Perform PMO Implementation
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® Rad and Levin, 2004 15 The organization’s goals affect the functions that the PMO will perform: The PMO can change the direction of the organization to one of enterprise project management It also can primarily assist individual projects It can serve as the interface between the project managers and others in the organization Organizational Goals and PMO Functions
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® Rad and Levin, 2004 16 The PMO and Maturity Levels Level 1 – Supports One Project Level 2 – Supports Several Projects in a Program Level 3 – Supports a Division/Department Level 4 – Supports the Entire Organization Level 5 – Supports Business Strategy and Enterprise Resource Allocations
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® Rad and Levin, 2004 17 Functions of a PMO according to PMI’s PMO SIG: The organizational structure, methodologies, processes, procedures, controls, tools, people, training, and other components serve to integrate existing projects, manage the portfolio, control functions, and successfully deliver the organization’s business objectives The PMO at Level 5
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® Rad and Levin, 2004 18 PMO Activities Mature Organization Crisis Management Mode Enterprise Functions
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® Rad and Levin, 2004 19 Presentation Overview Motivations to Establish a PMO PMO Functions – Project and Enterprise Determining Functions to Perform PMO Implementation
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® Rad and Levin, 2004 20 Phase 1 - Define the Goals for the PMO Assign a lead for the initiative This individual will require the skills and ability to communicate and effectively negotiate with senior management Identify organizational constraints and assumptions Definitions and terms to establish a common language Business processes and procedures that all projects must use Organizational and project metrics
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® Rad and Levin, 2004 21 Phase 1 - Define the Goals of a PMO Continued To define the goals: Gather problem analysis information with a focus on business needs Determine the root causes of troubled projects Assess results from maturity assessments Analyze the gaps Then list the goals and the prioritized business needs
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® Rad and Levin, 2004 22 Phase 2 – Obtain Organizational Support Create a Communications Plan to determine: Is the PMO of sufficient importance that a formal announcement by the sponsoring executive is needed? What type of communication media describing the PMO should be used? Are there any organizational entities that will not be receptive to having a PMO, the functions it provides or the authority it exercises? What special orientation is needed for them? Should there be a meeting with all organizational entities? Individually or as a group?
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® Rad and Levin, 2004 23 Phase 2 – Obtain Organizational Support Continued Create a presentation for an orientation that addresses: Why is a PMO being created? What are the objectives of the PMO? What benefits will the PMO provide? How will the PMO and organizational entities interact? What is the frequency/schedule for the interactions? What will organizations need to provide to the PMO? What will the PMO provide to organizational units?
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® Rad and Levin, 2004 24 Phase 2 – Obtain Organizational Support Continued Prepare a PMO implementation plan and develop organization-specific PM procedures: In all areas of project management For all divisions Use the plan as a basis for: Promoting Training Consulting Mentoring Augmenting Disseminating Archiving
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® Rad and Levin, 2004 25 Phase 2 – Obtain Organizational Support Present a realistic schedule for PMO results: Project-level PMO Three Months – One Year Division-level PMO One – Three Years Enterprise-oriented PMO Three – Seven Years
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® Rad and Levin, 2004 26 Phase 2 – Obtain Organizational Support Continued Develop implementation milestones: Metrics for success evaluation Milestones and metrics Short term, three months Mid term, three – six months Long term, beyond six months
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® Rad and Levin, 2004 27 Phase 2 – Obtain Organizational Support Write a Charter for the PMO including: Goals and objectives Responsibilities/authority Assumptions Constraints Major risks Major milestones Approvals
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® Rad and Levin, 2004 28 PMO Charter Director, PMOPhoneFaxE-Mail VP of ProjectsPhoneFaxE-Mail Objectives Scope Assumptions Constraints Major Risks Major Milestones Approvals:
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® Rad and Levin, 2004 29 Phase 2 – Obtain Organizational Support Continued Reach agreement and gain commitment: Provide an initial estimate of the PMO’s budget Estimate the number of beneficiaries and organizational coverage Outline the schedule and tasks needed to set up the PMO Recommend the actions the sponsoring executive will need to take to support the effort See whether a formal presentation and a special announcement are required
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® Rad and Levin, 2004 30 Phase 3 – Define the Functions Identify the basic functions of the Project Management Office: Project-focused functions Enterprise-oriented functions Functions may be phased in over time
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® Rad and Levin, 2004 31 Phase 3 – Define the Functions Continued Define the scope (limits) of the PMO with options such as: All organizational units or only certain units All programs and projects or just a subset of certain projects, e.g. just high risk, high budget The complete project life cycle or only support of concept phase and business case but not implementation
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® Rad and Levin, 2004 32 Phase 3 - Define the Functions Continued Decompose the items identified Begin with a set of initial functions that will solve the highest priority problems and contribute most to the business improvements expected and that require the least investment Set reasonable expectations After the PMO is operational and gains support, then expand its scope
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® Rad and Levin, 2004 33 Phase 4 – Define Roles, Responsibilities and Interfaces Define the roles and responsibilities of the PMO: Vice President of Projects PMO Director PMO Staff Members Determine roles and responsibilities relative to: Project Managers Functional Managers
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® Rad and Levin, 2004 34 Phase 4 – Define Roles, Responsibilities and Interfaces Continued Define the interfaces with other organizational entities List those entities with which the PMO will interact: Internal organizations External organizations For each entity above identify: Direction that will be received from the entity Direction that will be given to the entity Information that will be provided to the entity Information that will be received from the entity
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® Rad and Levin, 2004 35 Phase 4 – Define Roles, Responsibilities and Interfaces Continued Determine where in the organization the PMO should report: List advantages, disadvantages, challenges and critical success factors associated with each option Discuss and negotiate options with the sponsoring executive
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® Rad and Levin, 2004 36 Phase 4 – Define Roles, Responsibilities, and Interfaces Continued Determine the PMO placement
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® Rad and Levin, 2004 37 Phase 5 - Identify the PM Processes and Tools Describe internal and external project management processes and tools the PMO will use: Internal PMO Functions FunctionProcessesTools Risk Management Quality Assurance Change Management Schedule Management Financial Management Supplier Management
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® Rad and Levin, 2004 38 Phase 6 – Estimate the Resources Several techniques can be used: A top-down or analogous estimate — appropriate when comparing to a PMO with another unit of similar scope and function A bottom-up estimate based on the functions and interfaces to provide the most accurate estimate An affordability estimate, based on the overall budget available, provides a limit as to what can be provided with a limited budget
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® Rad and Levin, 2004 39 Phase 6 – Estimate the Resources Continued T rain Consult Mentor Promote Archive Practice T rain Consult Mentor Augment Scope------- Cost------- Quality------- Schedule------- Risk ------- Contract------- Integration------- Reporting------- Communications------- Team Relations------- Client Relations------- Vendor Relations------- Cost of the infrastructure for:
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® Rad and Levin, 2004 40 Phase 6 – Estimate the Resources Continued Consider the Organization ’ s Maturity Rating:
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® Rad and Levin, 2004 41 Phase 6 – Estimate the Resources Continued Determine Project Performance Costs:
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® Rad and Levin, 2004 42 Phase 6 – Estimate the Resources Continued PMO Cost Estimates Labor Estimated based upon functions to be performed, interfaces and processes and tools. Labor costs by month Travel Where there are geographically-dispersed projects, travel may be required. Identify all locations where travel is anticipated, the number of trips to make, length of trips and the number of individuals making the trips. Travel costs by month Facilities Facilities include costs for use of office resources or costs for set up of home offices. Furniture, telephone, and computer connections make up the majority of this budget item. 1.Startup facility costs 2.Recurring monthly costs Tools/ Processes This category includes hardware costs, software, site license fees, etc. 1.Startup facility costs 2.Recurring monthly costs Suppliers For services of subcontractors or other outsourced entities. 1.Startup facility costs 2.Recurring monthly costs
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® Rad and Levin, 2004 43 Phase 7 - Get Budget and Approval to Start Obtain executive approval: Convince the decision-makers based on sound research as outlined in the previous phases: Be thoroughly prepared with a complete knowledge of your planning data Anticipate questions and be prepared to defend your logic Finalize operating procedures: Include documentation of the outputs from the previous phases that is approved by the stakeholders
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® Rad and Levin, 2004 44 Phase 8 – Staff the PMO Acquire the individuals Start with a understanding of the functions to be performed Ensure staff have expertise to gain early confidence and acceptance Orient and train the individuals to the: Organization Business processes PMO objectives, plans and success factors Functions to perform and tools to use
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® Rad and Levin, 2004 45 Advanced Project Management Office: A Necessity for Today’s Global, Complex Projects
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® Rad and Levin, 2004 46 References Advanced Project Management Office, by Parviz F. Rad & Ginger Levin, CRC Press, 2002 Achieving Project Management Success Through Virtual Teams, by Parviz F. Rad & Ginger Levin, J. Ross Publishing, 2003 Assuring Project Success With Metrics-Based Management, by Parviz F. Rad & Ginger Levin, In Preparation People Skills for Project Managers, by Steven W. Flannes & Ginger Levin, Management Concepts Press, 2001 Project Estimating and Cost Management, by Parviz F. Rad, Management Concepts Press, 2002
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