1. © Copyright MetaPM 2007 Page: 1... helping clients achieve maximum business value from project management The importance of a coherent approach to project management through the use of the PMO Portfolio/Program Optimisation April 2008

2. © Copyright MetaPM 2007 Page: 2 PMOs – what are they and are they all the same? “A project management office (PMO) is an organizational unit to centralize and coordinate the management of projects under its domain. A PMO can also be referred to as a “program management office,” “project office,” or “program office.” The PMO focuses on the coordinated planning, prioritization and execution of projects and subprojects that are tied to the parent organization’s or client’s overall business objectives”. (Project Management Institute, PMBoK third edition) In a recent survey of 500+ PMOs for a doctoral thesis, Dr Monique Aubry found no clear pattern of PMO structure, role or perceived value. (Project Management Journal, March 2007)

3. © Copyright MetaPM 2007 Page: 3 Do we really need a PMO? Do you see an increasing rate and complexity of change across the TAFE sector? Strategic change is typically delivered through projects Achievement of strategic change demands: –a clear delineation between day-to-day business operations and strategic change, and –Management of project performance –Optimal utilisation of scarce resources while managing risk The PMO is a key enabler for the achievement of strategic goals Benefits Costs $ x m $ ?? m

4. © Copyright MetaPM 2007 Page: 4 Identifying the right PMO design All functions are represented within a PMO, however the extent and focus of each will vary from organisation to organisation, depending on the domain: - Portfolio - Program - Project The full value of the PMO will be realised with the integration and alignment of all functions detailed in the PMO model.

5. © Copyright MetaPM 2007 Page: 5 Functional elements of a PMO

6. © Copyright MetaPM 2007 Page: 6 PMO: What’s the right design? Location: All project activity, ie Corporate Centre perspective Program or Division, eg ICT Program Support for a single major project or group of projects Design: Authoritative PMO: Accountability for people and process Balanced Hybrid PMO: Accountability for process, support for people Advisory PMO: support for people and process

7. © Copyright MetaPM 2007 Page: 7 Three main PMO designs, ranging from controlling to administrative Authoritative PMO Balanced Hybrid PMO Advisory PMO Provides a centralised supporting function to assist projects with policies, procedures, resourcing Delivery accountability remains with the PMs and business units Provides centralised training and resourcing/procurement support to the projects/business units Supports benefits, knowledge management Central coordination of communications Assumes ownership over execution of business unit projects - managing ‘the program’ Central management of resources; project staff are “loaned out” to business units Manage external staff procurement where required Implement standard policies and procedures Drives benefits assurance, knowledge management Ownership of standards, processes and performance reporting Delivery accountability remains with the PM and Business Unit Support for training, project resourcing Central coordination of communications

8. © Copyright MetaPM 2007 Page: 8 All three designs share the same Critical Success Factors Executive support Clear mandate and scope A high standard of truthfulness and integrity within the PMO Standardised methodology, tools and templates Integration with key processes and communication channels Skilled and experienced team The PMO is involved in all projects from start to finish Congruence with organisational maturity and skills

9. © Copyright MetaPM 2007 Page: 9 Summary Its not whether we need a PMO, but rather which PMO and how it should be designed, implemented and supported.

10. © Copyright MetaPM 2007 Page: 10 Questions ? For more information, please contact us: Simon Garlick Email: sgarlick@metapm.com.ausgarlick@metapm.com.au Phone: 0410 626 726