Pmo Presentation free essay sample

Dzingwa Madzima June 2010 1 Overview †¢ †¢ †¢ †¢ †¢ †¢ †¢ The What and Why of PMO’s Starting a PMO Types of PMO’s PMO Roles and Responsibilities Executive Buy-In PMO Best Practices Telecel Zimbabwe PMO 2 The What and Why of PMO’s 3 Enhancing Your Bottom Line By Investing In Better Project Management Increasing Throughput Rate Strengthening the weakest link Achieving higher customer satisfaction Identifying the bottlenecks Reducing the program delivery interval Becoming the service provider of choice 4 What Is a PMO Exactly? 9% of respondents said PMO means project management office; 12% said it means program management office. Study by Brian Hobbs PMP and Monique Aubry â€Å"An organizational unit to centralize and coordinate the management of projects under its domain. A PMO oversees the management of projects, programs or a combination of both. † A Guide to the Project Management Body of Knowledge (PMBOK ® guide), Thi rd Edition  © 2004, p. 17 In each organization, the definition of a PMO may vary in name and by function, but it essentially centralizes, coordinates and oversees the management of projects and programs. We will write a custom essay sample on Pmo Presentation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Article by Bud Baker, Ph. D. PMI Network, June 2007 5 The Project Management Office (PMO) A PMO is a centralized organization dedicated to improving the practice and results of project management. †¢ †¢ Some PMO initiatives are minimal, involving part-time staff. †¢ Other initiatives involve huge infrastructure, with rigid centralized planning, control and methodology. †¢ An organizational entity created to assist project managers in achieving project goals. †¢ A PMO is a group of people with a mission to support project managers in the successful launch, implementation, and completion of projects. Provides an opportunity for project managers to develop professionally more quickly than most could ever hope, if they were working isolated from one another. 6 PMO Responsibilities 7 What Benefits Does a PMO Offer? The most important service of a PMO is to provide qualified project managers to an organization†¦ †¢ PMO’s are/can†¦ ? Making ava ilable qualified †¢ If a PMO is not used†¦ project managers ? Provide support personnel to assist project managers ? Allow project managers to pool their skills and knowledge ? Help project managers to develop professionally ? Recommended for organizations with many project managers ? Provide consulting-type services and products to its constituency y With several projects under way, project managers are probably not learning from one another y PM’s are probably not sharing best practices y PM’s are not challenged to continuously improve their skills y Project managers can be overtly influenced by line managers y Project managers scattered across an organization with no common bond are significantly handicapped 8 Starting a PMO 9 Key Considerations †¢ †¢ †¢ †¢ †¢ †¢ PMO charter Culture change Implementation strategy Staffing Metrics/Performance Success factors Maturity of Project Management Practices PMO Charter †¢ Charter Scope – Business Needs – Sponsor – PM Maturity †¢ Charter Document – – – – – – Mission/Vision Goals/Objectives Sponsor Service Offering PMO Governance Key Performance Metr ics PMO Culture Change †¢ Natural resistance to change †¢ Political landscape †¢ Degree of cultural change – – – – – – – – PM maturity PMO charter Existing skill level Key driver implementation strategy Assess impact of change Inform Educate Involve – Winners/Losers – Management Support Change Management PMO Implementation Strategies †¢ Strategy drivers – PMO charter – PM maturity – Sponsor and management support – PMO drivers – Perception of value – Political environment – Culture/Value System Evolutionary/Incremental – Lower implementation risks – Lower start up costs – Will take longer to demonstrate ROI – More suitable if high resistance to change and low management support Revolutionary/Wholesale – Higher implementation risks – Higher startup costs – May be able to demonstrate ROI quicker â⠂¬â€œ More suitable if crisis or recognition at high level that change is imperative †¢ Success Factors †¢ Clear Charter – Creates clear expectations – Defines boundaries for implementation †¢ †¢ †¢ †¢ †¢ Top-Down Support Bottoms up Buy-in Sponsor Reporting to senior executive Strong LOB representation Communication/PR – Promotion of services – Education of value – Performance metrics that demonstrate business and customer value Starting a PMO FACTS O Executives must deliver in two key areas — ongoing operational results and improvement efforts. O Functional managers are continuously evaluated by senior anagement, peers, and subordinates for their ability to make things happen quickly. O Many projects involve multiple departments and functional areas. O Each organizational unit has its own language, its own standards, its own project management techniques or lack thereof. O No wonder so many central projec t management coordination units have sprung up in the last few years. 15 Starting a PMO PMO Requirements: u PMO value must be measurable to become sustainable. u If you cannot measure, you cannot control and if you cannot control, you cannot manage. The PMO must be aligned with the interests and goals of the organization to sustain itself. †¢ A PMO has responsibility for educating the organization it serves about its benefits it brings to projects †¢ A PMO must create and track metrics to show the results of its contributions †¢ A PMO should survey its customers routinely to verify it is adding value †¢ The PMO should focus on portfolio management of: uProject investments uResources uAssets uStrategic objectives 16 Types of PMO’s 17 Current PMO and Advanced Models Traditional PMO Focus mostly on tactical issues Science of project management Views organization as a complex machine Emphasis on monitoring and control Provides tools similar to a precise map to follow Internal process focused Process driven Standard (heavy) methods and practices Based on rules; follow rules Defined, repeatable, managed and optimized practices Focus on efficiency Process leadership Heavy management and governance Next Generation PMO Focus on strategic and cultural issues Art and craft of project management Views organization as a complex ecology Emphasis on collaboration Provides tools similar to a compass that show the direction Focus on end products, customers and outcomes Business driven Adaptable and flexible (agile) methods and practices Based on guiding principles; follow rules and improvise if needed Adaptive and innovative practices Focus on effectiveness and innovation Thought leadership Balanced management, governance and leadership Table courtesy of J. Du ggal, Projectize Group, http://www. projectize. com. 18 What Does a PMO Look Like? u Typical starting point for a PMO can be three project managers, a team leader, and five team members (also called PMO support personnel). Reporting View of a Small Project Management Office u PMO Project Starter Services†¦ †¢ Provide well-trained and competent project managers to run key projects. †¢ Provide project management consulting. †¢ Review contract proposals from vendors. †¢ Sponsor project management education. †¢ Develop, document, and maintain project management best practices. †¢ Conduct project culture training. †¢ Perform project reviews. †¢ Perform post-project reviews. †¢ Ensure that new projects apply lessons learned. 9 PMO Models Early on in PMO history, the Gartner Group identified three PMO models as flourishing: †¢ Project Repository Model† †¢ Project Coach Model †¢ Enterprise PMO Model There is a fourth model, called the Deliver Value Now Model, that should not b e ignored. 20 PROJECT REPOSITORY MODEL PROJECT REPOSITORY MODEL PMO serves as a source of information on project methodology and standards. l Assumes the enterprise has embraced a cohesive set of tools for project design, management, and reporting. l Occurs most often in organizations that empower distributed, businesscentric project ownership or with weak central-governance. l l BENEFITS Data gap identification l Incremental risk management control as projects initiate and mature in the development cycle l Bottleneck identification for all projects l Raising the bar for delivery goodness 21 PROJECT COACHING MODEL PROJECT COACHING MODEL Assumes a willingness to share some project management practices across functions and uses the PMO to coordinate the communication. l Best practices are documented and shared and project performance is monitored actively. l Results are used to raise enterprise performance and train inefficient or new project managers. l l BENEFITS Acts as trainer l Consultant or mentor l Source of information on project processes l Often helps in project setup and postproject reviews 22 ENTERPRISE PMO MODEL ENTERPRISE PMO MODEL The most permanent, consolidated, organizational model and concentrates project management within the PMO. l The mission of the EPMO implies direct management or oversight of projects. l All project managers are staffed within the shared service and consigned to projects as needed. l The EPMO acts as a contracted project manager, assessing scope, allocating resources and verifying time, budget, risk, and impact assumptions. l l BENEFITS Many firms have since learned that a consultative approach aimed at increasing project throughput and reducing project durations requires teamwork between the EPMO and the project teams. l The idea of a PMO owning the project managers has some significant potential negative effects. The project management expertise and standards may not filter through to functional areas. l When significant portions of the projects are part of one functional area, that functional area may not feel as committed. 23 DELIVER VALUE NOW MODEL DELIVER VALUE NOW MODEL Puts o rganization goals first. l Improvements in PM methodology are viewed as a means to an end, and not the end in itself. l A holistic approach, embracing methods, skills and strategy that views project management as one piece of a bigger puzzle. l Enables consistent motivation for the entire organization to seek out accelerated project deliveries. l A stronger, more balanced project portfolio and better project performance. l l BENEFITS A strong, well-balanced project portfolio that identifies up-to-date project workload, sponsorship, tactical progress, health status and current data gaps. l A monthly plan and forecast that identifies portfolio opportunities and threats, top issues and risks, projects over/under budget summary. l A project prioritization model for all portfolio projects based on ability to form a Governance Board to direct model creation. l Governance Board setup and/or modification enables the force-ranking of the portfolio of projects. l Project management training, coaching, and mentoring based on need. 24 DETERMINING THE PMO MODEL FOR YOUR ORGANIZATION Questions you should ask†¦ 1. Who will initially be the main customers of the PMO? 2. What is the maturity level of the project management community? 3. How well does the Executive Team work together for the good of the enterprise? 4. Where is the greatest pain? 5. Will the PMO be able to deal with the intensity of missed delivery expectations from the executives and all of its implications? 6. Will the PMO be able to rescue troubled projects critical to the business? What if it cannot? 7. Will the PMO be funded sufficiently and supported by the executives to meet the value opportunities and threats? 25 PMO Roles and Responsibilities 26 PMO Roles and Responsibilities PMO EXECUTIVE PROJECT PORTFOLIO MANAGER PROJECT MANAGEMENT MENTOR PROJECT MANAGEMENT TOOL MENTOR RESOURCE PORTFOLIO MANAGER HELP DESK SPECIALISTS METHODOLOGY SPECIALIST DATA ADMINISTRATOR PROJECT MANAGEMENT TRAINER 27 PMO Services Overview †¢ As a PMO begins to define its objectives, it needs to consider what services it will provide to meet those objectives. †¢ It must also assess when in its implementation schedule it will provide these services. †¢ The services that are required dictate the various roles and responsibilities. †¢ Each service provided will require some level of staff support. 28 Most large-scale transformation programs do not succeed, mainly driven by inadequate governance and poor planning Large Programs Success Rates Why Projects / Programs Fail Others Technical Problems Successful 16% 11% 4% 4% 36% Problems with Suppliers Insufficient Project Personnel Resources Poor Organization and Project Management Practices 10% 53% 31% 15% 20% Cancelled Under Perform Ineffective Project Planning Poorly Defined or Missing Project Objectives Source: Standish Group International, Survey from 2500 personnel attending project management training A Program Management Office (PMO) can effectively help address these challenges†¦ PMO Challenges Benefits Benefits of PMO 4 Identifies gaps in realization of strategic objectives 4 Escalates current risks and identifies potential risks earlier 4 Ensures proper communications to relevant stakeholders 4 Improves monitoring and ontrol of projects 4 Mediates issue resolution 4 Increases efficiency in tracking progress of projects 4 Integrates project plans for all projects – Standardizes progress reporting Examples of Challenges 4 Project mission and tasks are poorly defined 4 Lack of a clear process for escalating risks to senior management 4 Insufficient reporting to support top-management decisions 4 Ineffective enforcement of project controls and policies 4 Conflict between line, project managers 4 Projects do not meet deadlines / milestones 4 Lack of standardized reports and reporting frameworks for all projects Fragmented project plans †¦and can accelerate progress, increase value, and reduce risk of failure Value of an Effective Efficient PMO Value ($) Efficient Program Management Office Value 2: Delivers Incremental Value Traditional Program Management Implementation Planning Set-up Validation Detailing, Planning Assessment Concept Development Time Value 3: Reduces Risk of Failure Value 1: Accelerates Progress A PMO would be initiated through five key steps leading to the first PMO session and the kick-off of Implementation PMO Set-up Process 1 Nominate and Confirm PMO Team 1. Nominate and confirm PMO team: 4 Identify, nominate and obtain approval for the PMO leadership from senior management 2. Setup PMO: 4 Determine relevant stakeholders, and/or external participants and structure PMO appropriately 4 Communicate key interested parties’ required involvement and PMO expectations 4 Engage all relevant key interested parties to get buy-in on program objectives and approach 3. Prepare tools, processes and templates: 4 Prepare all required tools, processes and templates 4 Distribute templates and reports for PMO meetings 4 Prepare project reporting, issue management, change management, and planning and communication management processes 4. Develop PMO master plan: 4 Obtain detailed required changes documents 4 Conduct interviews, meetings, and workshops with key interested parties regarding telework initiatives 4 Prioritize telework initiatives and conduct high-level review of any dependencies, overlaps, and issues 4 Consolidate tentative telework initiative project plans into a consolidated master plan 5. Conduct first PMO session: 4 Confirm logistics and communicate timing and agenda of first PMO session 4 Discuss issues, dependencies, project plan recommendations, role of PMO going forward 4 Distribute program-related process information 2 Set-up PMO 3 Prepare Tools, Processes Templates 4 Develop PMO Master Plan 5 Conduct First PMO Session During the PMO lifecycle, nine functions will help ensure success of the various implementation and transformation initiatives Continuous Program Management Functions 1. Progress Tracking and Reporting: Track milestones and deliverables for each project: – Reject project plans if they do not conform with PMO standards and required level of details – Identify and coordinate program critical path changes throughout projects 2. Communication Management: Communicate relevant messages to all key interested parties 3. Resource Management: Identify potential resource bottlenecks, unique requirements, contingencies and plan accordingly 4. Issue Management: Establish and maintain standards for issue categorization and resolution according to issue severity and facilitate resolution 5. Risk Management: Pro-actively identify and quantify potential risks (e. g. , financial, resource, technical) Establish and maintain quality assurance standards, procedures and schedule compliance / assurance reviews 6. Quality Assurance: Provide criteria in selecting contractors during the RFP process 7. Change Management: Establish and maintain a standard process for receiving, testing and approving changes to program scope 8. Business Alignment: Assess the fit and identify gaps between business needs and processes with the proposed solution 9. Technology Alignment: Assess the fit of proposed technologies with current or planned environment / infrastructure Change Management 7 Business Alignment Technology Alignment 9 8 Quality Assurance 6 Risk Management 5 LTO Program Management 2 4 3 1 Progress Tracking Reporting Communication Management Issue Management Resource Management Continuous Cycle of Direction, Validation and Adjustments To Accelerate Delivery Direction Governance Review Leadership Enterprise Strategy Business Unit Strategy Governance Review Leadership Feedback Prioritization Feedback Project Managers PMO Feedback Q/A Project Status Reports, Time Sheets, Project Schedules 34 The PMO Managing the Total Portfolio Business Strategy Management Project Management Office Management Plan and Execute Validate and Adjust Project Portfolio Resource Portfolio Application Portfolio 35 Executive Buy-In 36 Executive Buy-in of The PMO Executives will embrace a PMO that dramatically increases the probability of meeting their goals. A PMO must deliver on its promise through four major processes: Choosing the right project mix — a new way of strategic planning u Linking the executive teams strategies to current and planned projects u Managing the project portfolio correctly u Measuring the PMO to tangibly improve project performance relative to the execu tives strategic goals A PMO must be able to help executives with execution of strategy, as determined by the project mix and flow, or the PMO will not achieve sufficient level of value to sustain itself. 37 Executives Embrace a PMO If†¦ †¢ CHARACTERISTICS OF A PMO THAT EXECUTIVES WILL EMBRACE: ? Executives will perceive value if the PMO helps the executives meet the goals on which they are measured ? It must drive more projects through completion, without correspondingly increasing resources ? Projects must be completed in drastically shorter times ? The impact of the PMO is clearly felt on both the top and bottom lines of the organization (even in not-for-profit organizations) ? Executives and managers throughout the organization feel that they are getting benefit out of the PMO 38 PMO Best Practices 39 Elements of An Effective PMO q The Right People q The Right Tools q The Right Data q AVOIDS: The Wrong Result The Right People †¢ Include people from the The Right Tools †¢ PMOs may purchase The Right Data †¢ To improve, project delivery must be measureable. †¢ This process is often accomplished with project status reports. †¢ The PMO must diagnose system problems to help solve them. supply side and market side of the organization. A PMO requires skills in marketing and communications. †¢ The PMO should cover multiple disciplines. Enterprise Project Management (EPM) tools †¢ With low project management maturity, sophisticated tools meet heavy resistance. †¢ PMOs without a marketing plan to gain strong buy-in on tool usage are doomed. 40 THE WRONG RESULT — WHY PMO IMPLEMENTATIONS FAIL†¦ yThe PMO did not define its value proposition. yThe PMO is not perceived as impacting project delivery abilities. yThe PMO is seen as a threat — most often too authoritative. y The PMO does not have buy-in from the senior management. yThe PMO is too low in the management reporting. y Project Management Overhead — the bad PMO acronym. The PMO is micromanaging — trying to control every project directly. 41 Some Final Thoughts on starting a PMO†¦ C C C C C C C In todays economy, more value is needed now. Establishing a PMO that brings recognized value in the first six months of its existence is critical. Recommend you go beyond the original models. As you plan the PMO implementation, seriously consider establishing visible value to senior management from the getgo. Go after the low-hanging fruit that helps everyone win and the PMO will be on its way. A void being perceived as sitting in the Ivory Tower of Project Management Excellence. Build a PMO that will Deliver Value Now. 42