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Jan 20, 2015
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The Death of PMO(as we know it)
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(as we know it)
David Sides, PMP – Vice President – Project Consulting [email protected]
Agenda
• Welcome & Introductions
• Expectations – Why are we here today?
• Dave’s Top 10
• Why a PMO? What does a PMO do? PMO Basics
• Death to the PMO!
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• Death to the PMO!
• What should a PPO do?
• PPI, PPO Value Proposition, Approach, Models
• Wrap-up, Expectations, Next Steps
And now…Dave’s Top 10
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with David Sideswith David Sideswith David Sideswith David Sides
Dave’s Top 10 Stupid PMO Tricks
1. Why can’t we do it like we’ve always done it? Don’t you trust us? “They” don’t need any visibility into my projects.
2. Keep the PMO in IT. We’re the ones who need it anyway. Ignore the business. We know what’s best for them.
3. Don’t get any EPM tools for reporting. Keep cutting and pasting reports from Excel.
4. Who needs standards? I have my own templates and they work for me.
5. All this process takes more time than the project. You’re killing me with process!
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5. All this process takes more time than the project. You’re killing me with process!
6. PMO is a “dirty word”. Don’t bother defining accountability, R&R and specific PMO deliverables. Just get those templates out there. We want consistency!
7. No metrics or measurement for improvement. If we don’t measure, we don’t have to be accountable and prove your improvement. After all, we are already CMM level 3, right?
8. Staff the PMO with untrained or inexperienced resources. Don’t educate, train, coach, and mentor. Just throw some junior staff into the PMO. That’s all we need to do reports.
9. Staff the PMO with one already overloaded resource. Wear more and more hats until you can’t get anything done. But, you look really busy.
10. Be known as the “PM Process Police”. Develop lots of methods, processes, and
templates. Tell people they have to use them but don’t teach them how.
Program or Programme
• Program or Programme generally has two meanings:1. A collection of projects directed toward a common goal. (i.e. The NASA Space
Program)
2. An ongoing set of activities to consistently achieve specified business goals through the execution of projects. (i.e. PMO)
• A Program uses resources allocated from a business and has the responsibility to use those resources to achieve business results as defined in goals and objectives.
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objectives.
• Improvement of processes is a continuous operation program.
Why a PMO?
� What % of development projects are over budget by what % of original estimates?
� What % of projects are cancelled before completion?
� What % of IT-related projects are late, over budget, lacking in functionality
52% over budget by 200% of original estimates *
32% cancelled before completion *
6* statistics from National Institute of Standards and Technology, Software Engineering Institute, Gartner and Forrester
� What % of IT-related projects are late, over budget, lacking in functionality or never delivered ?
� Project over-runs cost US companies and government agencies how much ($$) per year?
� The greatest contribution to IT project failure is what?
80% *
$145 billion/year in over-runs *
Poor Project Management *
What does a PMO do?
Is your PMO a…
> Weather Station – Gatherer and Reporter of project progress data?
> Control Tower – Developer and Enforcer of standards, processes, procedures, and templates?
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> Resource Pool – Pool of Project Managers to manage key projects?
> “Portfolio Manager” – Provide project selection and prioritization data for management decisions?
> Benefits Verifier – Track ROI and other business case promises?
> Integrator – Manage project interdependencies?
What does your PMO do?A PMO is supposed to do exactly what is written in its Charter!
© 2001 ELG
PMO Basics – 1 2 3
• A PMO must have strong executive sponsorship and not just support, but accountability and advocacy.1
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• A PMO must have clear written and agreed objectives, expectations, and deliverables (Charter).2
• A PMO must provide continuous business value through performance.3
Death to the PMO!(as we know it)
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(as we know it)
Death to the PMO!
Process: Procedure, development, progression, method (Ho hum…)
Everybody needs it but nobody wants it.
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Performance: Do, execute, achieve, complete, act, go, run (Move it!)
Everybody wants it and we can “sell” it.
A new paradigm – welcome the Project Performance Office!
What is a PPO supposed to do?
Best Practices for a PPO:> Governance & Control - the structure and process to control operations and
change to performance objectives
> Assurance - activity to verify and validate all operations and capacity to perform
> Alignment - activity to support higher level vision, goals and objectives
> Integration - activity to optimize performance across the program value chain functionally and technically
> Oversight - activity to structure reviews, accountability and management of
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> Oversight - activity to structure reviews, accountability and management of projects, stakeholders or suppliers
> Organization & Change - activity to manage competencies, learning, knowledge and communications
> Improvement - activity to continuously assess performance, research and develop new capabilities and systemically apply learning and knowledge to the program
> Standards - activity and limits that define the performance architecture
> Measurement & Reporting – track, forecast, predict, and report
> Resource Pool – manage key projects and PMs
> Process Performance Improvement – continuously improve!
A PPO is supposed to do exactly what is written in its Charter!
Process Performance Improvement
4 – Managed • Process control through quantitative and qualitative metrics and measurement of CSFs and KPIs
5 – Optimizing • Continuous improvement through use of Lessons Learned and Best Practices.. . PM is “in the water”
Improve Quality & Reporting
Hit Targets, Save $$$
Improve Process
Measure
Control
Improve
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1 – Initial • Ad hoc, uncontrolled processes, chaos
2 – Repeatable • Using some basic SDLC and Project Management processes
3 – Defined • Standardized processes, templates and documentation used by all (PPO, milestones, governance, gateways)
Rework Costs $$$
Control Time & Costs
& Reporting
Standardize
PPO Value Proposition
•Maximizes the investment in people as business assets, likely reducing attrition and improving employee morale.
•Improves expertise in the critical functions of project management.
•Establishes the common vocabulary essential to clear communications.
PEOPLE Performance
Provides education, training, and coaching to build core project management competencies.
•Saves time and money in managing projects as project managers reuse standard templates.
PROCESS Performance
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reuse standard templates.
•Improves consistency of communications and reporting as all are using common formats.
•Produces higher quality products as standardization leads to more repeatability.
Builds, establishes, deploys, and maintains common project management standards, methodology, processes,
templates, and deliverables.
•Tracks critical project information for accurate and timely project monitoring and control.
•Provides high visibility into project performance.
•Aggregates project information for consolidated reporting across the enterprise leading to better decisions in managing the portfolio.
TECHNOLOGY Performance
Installs, configures, and administers appropriate automated
tools to facilitate process and make people more effective.
Make your Project Performance Office PERFORM!
Sogeti’s 3-Step Approach to your Project Performance Office
1. ASSESS – Gap Analysis, Design Program and Roadmap to Improvement
1. Assess “As-Is” situation in People, Process, & Technology.
2. Map existing Best Practices and Identify Gaps to standards.
3. Design “To-Be” Program and Roadmap for your PPO.
2. IMPLEMENT – Build PPO for your specific needs and organization
Key Deliverables:• Assessment Report
• Gap Analysis• Design & Roadmap
Key Deliverables:• Business Benefits
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needs and organization
•People – Plan for your people as business assets.
•Process – Build “Just-Enough-Process” for effective management, monitoring and controls.
• Technology – Select appropriate and cost-effective tools.
3. ADOPT – Reinforce, Train, Mentor to provide continuous business-value
•People – Educate, train, coach and shadow to improve expertise.
•Process – Standardize, Measure, Control, and Continuously Improve.
• Technology – Expand tool effectiveness incrementally to ease adoption.
• Business Benefits Early & Often
• Process Definition• Tool Identification
Key Deliverables:• Incremental
Business Benefits
• Continuous Process Improvements
Sogeti’s PPO Models
5x5 PPO
• 5 key focus areas
• 25+ actionable,
PPO Wheel
• 12 key functions
• 50+ activities
Organizational Project
Management
• 6 key areas
• 100+ best practices
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• 25+ actionable, deliverable-based activities
• 50+ activities • 100+ best practices
Sogeti’s PPO models have evolved through 35+ years of experience in Portfolio, Program, Project Management, and Organizational Process Improvement.
Sogeti’s 5x5 PPO Model
Knowledge Management
Methods
RiskResources
Business
Value
Project Charters and Alignment with IT & Business Strategy
Portfolio Management using Business & Performance Metrics, Tools, & Dashboards
Develop a Benefits Realization Program to Prove ROI (“Reality on Investment”)
Develop a Customer Feedback Program
Implement a Vendor Management Program (prep for outsourcing)
Develop an Inventory of Knowledge Management Assets
Create and Maintain a Knowledge Repository
Create and Support an Information Sharing Culture
Integrate Knowledge Management into the Project Process
Design KM to Support Collaboration and Reuse
Provide “Just Enough Process”
Implement a Culture of
Define Project Management
Become a Trusted
Ongoing Change Management
Business Focus
KM Focus
Methods FocusKnowledge
Knowledge Management
Methods
RiskResources
Business
Value
Knowledge Management
Methods
RiskResources
Business
Value
Business Focus
KM Focus
Methods FocusKnowledge
Knowledge Management
Methods
RiskResources
Business
Value
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Enough Process” in Project Management & Methodology Models
Culture of Accountability with a Solid Work Flow and Signoffs
Management Career Path(s) and Support Skills Development
Trusted Advisor to Project Managers
Management Program to Ease Adoption of Best Practices
Analyze Supply and Demand of All Resources –Reduce Constraints
Implement a Resource Allocation Process Across the Enterprise
Educate Business Resources on PM and Development Methodologies and Processes
Support Education Programs for Existing and Future Skills
Provide Performance Appraisals and Scorecards to Measure Improvement
Implement Formal Business Risk Analysis
Implement Formal Technical Risk Analysis
Quantify and Manage Risk Throughout the Project
Lead Regulatory & Compliance Support Initiatives
Support Corporate Security, DR, and COB Efforts
Resource Focus
Risk Focus
Knowledge Management
Methods
RiskResources
Business
Value
Knowledge Management
Methods
RiskResources
Business
Value
Resource Focus
Risk Focus
Knowledge Management
Methods
RiskResources
Business
Value
Knowledge Management
Methods
RiskResources
Business
Value
Knowledge Management
Methods
RiskResources
Business
Value
David Sides, PMP – VP, Project Consulting Services [email protected]
Sogeti’s PPO WheelThe functions below include the most common functio ns of a PPO. One size does
not fit all! Each PPO is tailored to fit the needs of the organization it supports.
ORGANIZATIONAL CHANGE MANAGEMENT . Culture Analysis & Change
Adoption Programs . Knowledge Transfer
. Education &. Project Support/
Consulting
PROGRAMCOMMUNICATIONS
. Program Vision. Exec Reporting. Program Status/
Progress
PERFORMANCE MEASUREMENT. Benefit Mapping. Program Metrics. Trend
Analysis
IMPACTMANAGEMENT
. Issue Management. Risk Management
. Program Change Control
PPOINFRASTRUCTURE
MANAGEMENT
PORTFOLIO MANAGEMENT. IT Investment Analysis &
Organizational Governance – Strategic Planning, Management of Programs & Projects, Management of Operations
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ProgramManagement
MANAGEMENT. Methods, Processes, Tools & Templates
. Process Governance. Project Knowledge Management. Applied Best Practices & Reuse
. IT Investment Analysis & Project Prioritization. Business Alignment. Benefits Realization to ROI. Do the “Right Projects”
PROJECT INTEGRATION & COORDINATION. Dependencies/Gaps/Overlaps. Architecture Adherence. Transition to Operations
VENDOR AND THIRD PARTY
MANAGEMENT. Readiness. Outsourcing
Control
RESOURCEMANAGEMENT
. People. Pool of ProjectManagers
. Facilities & Materials
CONFIGUR-ATION
MANAGEMENT. Version Control. Release control. Document Management
PROGRAMFINANCIAL
MANAGEMENT. Budget vs Actuals
. Earned Value
QUALITYMANAGEMENT
. Program/Project Quality Plans . CSF Metrics & Measurement
. Project Audits/Reviews
David Sides, PMP – VP, Project Consulting Services [email protected]
Organizational Project Management
Project Portfolio ManagementStrategic Alignment & Selection
Approval & FundingPrioritizationWeekly Regular
Enterprise Governance : Leadership, Organizational Structures and Enabler s, Policies
Program Management: PPO, Methodology, Standards, Processes , Tools, Stakeholder Management, Performance Metrics & Measurement, Bene fits Realization
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Project Team Meetings
•Tracking of Progress, Status, Forecast•Risks & Issues•Lessons Learned
Steering GroupMeetings
•Reporting of Progress, Status, Forecast•Risks & Issues Escalation
Knowledge Management•Project Files•Best Practices•Lessons Learned
Traditional System Life Cycle : Planning – Requirements – Analysis & Design – Devel opment – Implementation – Maintenance
Project Governance : Step Gate Reviews, Milestones, Risk & Quality Ma nagement
Responsibility:•Accountability•Approvals•SignoffsProject Management Initiation – Planning – Execution (Monitor & Control) – Closing
Quality
CommunicationsRisks & IssuesScope
SOW
Time
Cost
Resources ProcurementIntegration
Iterative System Life Cycle : Inception – Elaboration – Construction – Transition – Maintenance
David Sides, PMP – VP, Project Consulting Services [email protected]
PMO PPO – Project Performance Office
• How do we get from a PMO to a PPO?1. Assess – Implement – Adopt
2. People – Educate, Train and Coach to develop expertise.
3. Process – “JEP” & “JEC”. Baseline “As-Is”, Measure to Standard(s), Improve.
4. Technology – “JET”. Select & Configure appropriate tools to your situation.
5. Combine Weather Station, Control Tower, Resource Pool, Portfolio Manager, Benefits Verifier, and Integrator for a full-featured PPO.
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• Use SMCI:1. We must Standardize to Measure.
2. We must Measure to Control.
3. We must Control to Improve.
• What is Continuous Improvement?
• Which Standards to Use?1. CMMI
2. OPM3
3. CobIT
4. Others?
Wrap-up
• Discussion:
1. Do you have a charter that authorizes the PPO?
2. Which model and standards are appropriate for your organization?
3. How much change can your organization handle?
4. Who is best suited to manage and staff the PPO?
5. Did your organization already purchase a tool?
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5. Did your organization already purchase a tool?
6. What is your timetable?
7. Your questions?
• Review Expectations
• Next Steps
21David Sides, PMP – VP, Project Consulting Services [email protected]
22David Sides, PMP – VP, Project Consulting Services [email protected]