1. Project Management Office (PMO) Benefits and Challenges The NMSU Experience Presented by: Pam Jeffries Pankaj Sharma New Mexico State University

2. Agenda Introduction –What is Project Portfolio Management? –Why do we need Portfolio Management? Benefits of Portfolio Management Why the need for a PMO at New Mexico State University? 2007-2008 Initiatives 2008-2009 Planned Initiatives Summary Questions

3. Introduction What is Project Portfolio Management? –Formal process of collating institutional projects into a visible list for the purposes of sequencing based on criteria such as: Strategic goals Project Costs Resource Availability

4. Introduction Why do we need Portfolio Management? –A Project Portfolio can answer questions such as: What projects are we executing? Which projects are critical to the institution? How many projects are awaiting execution? What is the impact of introducing an unplanned project? A Project Portfolio can be a powerful planning tool –Central Service Organization Example

5. What is a Central Service Organization? –Organizations that provide a unique service(s) to other departments at the University –Typical examples: Human Resources Information Technology Facilities Why do we need Portfolio Management Central Service Organization Example

6. Central Service Organization Challenges Information Technology CSO Manage and Prioritize Department DDepartment ADepartment BDepartment C Implementers Request On-time Request On-time Request On-time Request On-time Request Complete Planned Project/Request Successful on-time completion Smooth Functioning

7. Central Service Organization Challenges Information Technology CSO Manage and Prioritize Department DDepartment ADepartment BDepartment C Implementers Request Delayed Request Delayed Request Delayed Request Delayed Request Planned Project/Request Delays in increasing order of severity Unplanned Requests Unplanned Project/Request

8. Why do we need Portfolio Management Central Service Organization Example Through a CSO one department can impact other departments Question never asked: –Where does the request fit within University priorities The impact on other departments in not uniform More unplanned projects = Lesser CSO planning time –Unclear priorities leads to a reactive culture The portfolio is informal and has limited visibility

9. CSOs can become the transmission mechanism for inefficiencies CSOs bear a higher degree of responsibility for planning than other departments Lack of adequate resources at CSOs can impact the entire University Why do we need Portfolio Management Central Service Organization Example

10. Main Challenge for a CSO Maximize Planned Projects Minimize Unplanned Projects Why do we need Portfolio Management Central Service Organization Example

11. Portfolio Management Central Service Organization Challenges Information Technology CSO Management and Implementer Department DDepartment ADepartment BDepartment C Request Delayed Request Delayed Request Delayed Request Delayed Planned Project/Request Delays in increasing order of severity Unplanned Requests Unplanned Project/Request Delayed Request

12. Benefits of Portfolio Management Priorities are clear and defined Impact of an unplanned project can be quickly analyzed and clarified Other clients can better adjust to an unplanned project Alignment of projects with strategic goals can be monitored Portfolio Management processes promote better planning in client departments

13. A Simple Portfolio Example

14. External and Internal Requirements –ERP –Auditor The Need For Change –Growth in demand for IT Projects –Demand for integrated service delivery –Need for a common project execution framework Why the need for a PMO at New Mexico State University (NMSU)?

15. No consistent PM standards Lack of coordination of resources between projects Lack of project prioritization No formal project tracking Lack of timely functional user involvement –Resources not dedicated from functional areas to projects Issues - Project Execution

16. Patterns Observed –Project delays –Project budget overruns –Gaps between delivered products and client expectations Issues - Project Execution

17. Issues – Project Execution To Address These Issues, PMO was c reated as a department within NMSU central IT enterprise application services group Current Scope of PMO –Provide centralized guidance and support of IT Enterprise Software Projects

18. PMO Key Functions Streamline project requests Foster better prioritization of projects Manage the project portfolio Provide project management standards Perform project management functions

19. 2007-2008 Initiatives Project Evaluation & Prioritization (PEP) Committee established Standardized the Project Process

20. 2007-2008 Initiatives PEP –Key campus representatives Administrative Units Faculty Representative Community Colleges –Meets every 2 weeks

21. 2007-2008 Initiatives PEP –Primary Functions: Evaluate project requests Recommend/prioritize Projects Determine impacts on the current project portfolio Present project impacts to NMSU Executive Level Management and seek resolution on project conflicts

22. 2007-2008 Initiatives Project Process –Templates –Project Management and Project Execution Process PMO Analysis Sub-process PEP Committee Sub-process

23. 2008-2009 Planned Initiatives Prioritize next year’s projects Submit budget requests by January 2009 based on estimations Provide a framework for resource allocation and tracking –Tools for tracking and managing projects and resources Provide PM mentoring

24. 2008-2009 Planned Initiatives Create formal policy and procedures regarding IT projects –Third Party Vendor Software Purchase Policy Improve project projections –Labor –Budget Better transition to Operations – Service Level Agreement (SLA)

25. Summary Challenges –Diverse participants and expectations –PM methodology understanding and buy-in –Departmental/Organizational Process improvement –Creating a Flexible PM process –Foster Executive level involvement

26. Summary Opportunities –Project Management (PM) gaining credibility across University –Demand for PM services is on the rise –Projects are increasingly aligned with University priorities

27. Questions ict_pmo@nmsu.edu More information: http://pmo.nmsu.edu ict_pmo@nmsu.edu http://pmo.nmsu.edu