Organization / Implementation of a PMO PMI-MN Breakfast Series October 12, 2004.

Organization / Implementation of a PMO

PMI-MN Breakfast Series

October 12, 2004

October 12, 2004Organization and Implementation of a PMO

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Agenda

Abstract & OverviewPMO Tactics Sponsorship Organization Marketing Implementation

Protocol and GovernanceQ & A


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Abstract

Profitability, cost reduction or similar measures are often used to gauge the value of operations directly contributing to the production of a company’s goods or servicesProcess functions like the PMO are not perceived as direct contributors to productionProcess areas demonstrate value through performance improvements, reduction of issues/obstacles, or exceeding planned expectations (real or perceived)Successful organization and implementation is vital to establishing a vibrant PMO and keep it performing and exceeding expectations


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PMO Tactics

Take advantage of initial interest and attention

Establish tactics before the PMO is launched Sponsorship (fertile environment for initial survival) Organization (sturdy foundation devoted to core needs

and successful growth) Marketing (weaning PMO from dependency of the

sponsor to a self-supporting entity) Implementation (plans for continued growth)


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Value Category -->

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Executives X X XSponsors X X X X XOwners X X XUsers/ConsumersProject Team X X X X XPMO X X XPSOs X X XSupport & Maintenance X X

Customer/Function Alignment


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Sponsorship Tactics

Establish clear relationship with sponsor Regular strategy and planning meetings Understand the depth and reach of sponsor’s backing Understand degree of independence and latitude How will you know if the sponsor got a proper return

on investment

Agreement and results must be tangible Even if the sponsor “gets it”, she/he will need evidence

for others who may not


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Sponsorship Tactics

Anticipate challenges – plan to preempt Implied authority – does the PMO have control over…

PM quality to competently deliver projects Taking on too many projects Prioritizing project and resources Reporting metrics v. corrective actions Project rescues

The common message Prepare messages for

Executives Line leaders Team members

Risk of over/under communication


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Organization Tactics

Organizational Charter Mission Scope of authority Functions ‘Roles and Responsibilities’

Business Case Business objectives Expected benefits Deliverables and metrics for success

Executive Summary Simplified combination of the charter and business case

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Descriptive brief of benefits, deliverables, expected resultsPMO extends across silos and hierarchies to provide

Easier movement through the organization

Broader perspective to local and enterprise activities

Politically independent

PMO Deliverables Help PM Practitioners do their jobs

Help management understand project status impact on the organization

Build consistency, quality, efficiency

Control over the management of resources


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The Project Office will develop, train, and implement a common project and work management model to help achieve the following objectives:

Improve predictability of results Provide visibility into project priorities and progress Clarify resource roles and responsibilities on projects Capture metrics for continuous improvement of work management

processes Improve control and direction of projects by senior management Improve outcomes / customer satisfaction Reduce time and cost to deliver services Create an operational model to support IT investment analysis


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Charter – what will happen

Roadmap – when it will happen and what does it look like

It’s a high level project plan It identifies the milestones/deliverables

Keep roadmap measures high level and flexible

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2004 2005 2006

Featu

res

• Develop project portfolio (Visibility) • Capture project work plans and time

tracking (Resource Management) • Basic project health summary

(Reporting) • Project / Methodology (Quality,

Mentoring) • Estimating Tools & Templates

(execution)

• Integrate portfolio with annual planning (planning)

• Repository of project artifacts (Mentoring, Execution)

• Triage and Demand Management (planning)

• Scorecards (Reporting, visibility) • PM Competency Model & Training

(mentoring, quality)

• Financial/PM Integration • Self-service reporting (Visibility) • Single point intake of projects and

service requests (planning, prioritization)

• Earned Value Management (quality) • Repository of best practices (tools)

Capabilit

ies • Ability to demonstrate improved Project

Management competency • Consistency of process and language • Comparison of key projects using

consistent and impartial measures • Reduce confusion of how project shown

be run

• PM Metrics • Forecasting - Capacity Analysis • Proactive management of resource

conflicts • Measurable & repeatable use of

methodology, tools & artifacts • Prediction of project health

• Robust IT planning & integration • Predictable, manageable & repeatable

estimation • Transparency of Status Reporting • Understanding of TCO • Financial Chargeback

Benefits

• Single point of Reporting/Communication

• Enabled fact-based discussions with CIO’s

• Single point for reporting • Clarification of Roles & Responsibilities

• Compressed time to “Ramp up” new employees

• Fact-based Customer Interaction • Improved cycle times for estimates • Trained, competent PMs and

Functional Managers

• Clearly defined, easier-to-use processes for all stakeholders

• Immediate responses to inquiries on project status, health and issues

• Defensible alignment of projects to strategic goals

Sample Roadmap


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Regular communications to market and reinforce success and slow the decay of “sponsorship half-life” Use of scorecards for easy to digest facts,

supplemented by more detailed “in-depth but crucial” information

Emphasize accomplishments Use to supplement but not replace PMO

marketing

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Sample Planning “Scorecard”

2004 YTD Successes Delivered Standardized Planning Schedule with current resource pool Program Managers have common collection of planning templates to reflect common

services Triage team established and process documented to handle project estimation

What we still need to accomplish Finalize functional planning templates and roll up into a functional Master WBS Expand usage of planning templates across portfolio Reinforce common vocabulary used in planning


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Other considerations PMO position in the organization hierarchy PMs’ staffed within or outside of the PMO Obtain proper time/resources for tools

Estimation Project planning Time Tracking Reporting

Handling special requests

SelectionDeployment

TrainingOperation


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SuccessSuccess Measurable!!Measurable!!

Marketing Tactics

What’s the Message? Increased throughput (more projects completed

successfully with same resources) Project crises averted or mitigated w/o impact on other

projects Higher customer satisfaction via improved

Clear communications Problem solving abilities

Increased participation of key project participants Ability of lower skilled resources to perform function

previously requiring higher skilled resources


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Marketing Tactics

Focus on why the PMO was created – Examples Help PM Practitioners do their job Help organization better understand and direct their

resources Build improved consistency and quality into project

work Put vital project information into hand of management

sooner and more clearly

Now use communications to show what has been accomplished and how


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Marketing Tactics

The PMO leader as a cheerleader Evangelical dedication Focus on the progress

Don't assume that because its going according to (or better than) plan, that people are aware of it.

Speak the language of the customer Connect their passion to PMO direction

Their pain Their motivations Don’t assume if a person is aware of problems, they know

how or have courage to fix it.

Key: The emotional/logic mix (EQ/IQ)


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Implementation Tactics

The need for a good first impression A poorly implemented first attempt can tarnish a PMO’s

reputation and fuel obstacles for future attempts.

Remaining true to why the PMO was created* As business demands change, it is incredibly tempting to

shift the expectations of the PMO without planning or review with sponsors.

Staying credible by limiting and fulfilling promises

* Avoid the appearance of not being responsive. Changes often come as additional duties rather then a change in accountability. If the PMO is taking on new challenges, it requires a conscious recognition to the PMO mandate which will require additional effort, and more importantly require a shift in perspective and expectations.


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Provide sufficient but simple references Announcements / communiqués Training materials Web sites / Repositories / email boxes Staff – PMO, local mentors, other External resources

Stick to roadmap

Roll out new features / service individually Beware of process overload


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Provide feedback loop Surveys Suggestion boxes Measure and report which service used most

often

How to be visible but not intrusive


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Success Measures Increased throughput (more projects completed

successfully with same resources) Project crises averted or mitigated w/o impact on other

projects Higher customer satisfaction via improved

Communication Problem solving abilities

Increased participation of key project participants Ability of lower skilled resources to perform function

previously requiring higher skilled resources Relate progress to accepted Maturity Models


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Protocol and Governance

Process Models abound to help specialists define understand and control their environments PMBOK, OPM3, CMM, 6, TQM, etc.

Detail and intricacy overwhelms those who do not embrace these disciplines or not ready for this mature, robust approachProvide a streamlined approach for those wanting or needing lessA possible alternative is Protocol and Governance


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Protocol: The means in which we communicate with each other, and our behavior surrounding this communication

Protocols• Communication• Documentation• Tracking• Reports• Rules of Engagement• 1st contact• Dashboards• Roles and

Responsibilities

Governance• Controls• Steering

Committees /Review Boards

• Risk mitigation• Issue escalation• Corrective actions• Change Mgmt• QA/QC• Lessons learned

Governance: The means in which issues, differences, conflicts, or obstructions to goals are resolved, escalated or otherwise dispatched


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Protocols can be used to: Train roles and responsibilities Identify project artifacts, their use and content Set expectations for communication Example: Rules of Engagement

Governance can be used to: Set timeframes for escalation Confirm ownership and accountability Streamline decisions Example: Technology Compliance Review Council


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Protocol Example

Project Initiation – Protocols should be in place to address how people behave, which artifacts convey information, formality of communication Do stakeholders know what to do? Do they care to learn or remember their roles? 1st

encounter Who controls the process? Who has overrides (GOOPF)? How to corral escapes

Who determines if protocols are working?


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Governance Example

Risk Management – Persistent review of risks uncovers potential obstacles to project success. How will the organization react to avoid the risk, and/or minimize its impact if realized? Who may identify risks? Who must look for them? How are risks reported, what actions are put into motion? What is the predefined escalation if no action taken? Are risks and their solutions centrally collected to help

future situations or projects?

Who determines if governance is working?


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WARNING!! Be realistic(Organizations resist change naturally)

Don’t promise it ifIf you can’t measure it

It requires training or tools which are not budgeted

It requires time commitments not agreed to by line managers

It hasn’t been accepted by those in control of the resource

ScopeScope

CostCost

TimeTime

Implementation Risks


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Implementation Risks

The daily, continual pressure ofGot to get it done!!

vs. Approving projects once proven alignment to organization Projects begin only with adequate plans or risk assessments Assigning work when resource commitments secured Building after adequate requirements defined Regular and dispassionate review of status

Transition: Sponsors move on. How does the PMO survive a direct hit to sponsorship?


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Questions


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References

General PMFORUM www.pmforum.org Project Management Institute www.pmi.org PMI’s Knowledge & Wisdom Center - Pros and Cons of Project Offices

https://secure.pmi.org/memberapp/code/premium_content/kwc/KWCtopic_pmo.asp Center for Business Practices Project Management Resources http://www.cbponline.com/ gantthead.com http://www.gantthead.com Max’s http://www.maxwideman.com PMO USA http://www.pmousa.com PM Solutions http://www.pmsolutions.com ProjectConnections.com www.ProjectConnections.com Projects @ Work http://www.projectsatwork.com International Institute for learning, http://www.iil.com/free_resources/articles.asp Optimizec(IW) www.optimizemag.com CIO www.cio.com Computerworld (IDG) www.computerworld.com Project Magazine http://www.projectmagazine.com


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References

PMO Organizational Tactics Dinsmore, Paul C. Sixteen reasons not to implement a project office, PM Network 2002. February Kerzner, Harold, Strategic planning for a project office, 2003 Project Management Journal 2003.

June; Kerzner, Harold, Best Practices in Project Management – The Project Management Office

Presentation to PMI-MN October 1, 2004; Lipper, Stan, An effective approach to establish a Program Management Office, 2003

Proceedings of the PMI Global Congress 2003 - N American Kendall, Gerald I. And Rollins, Steve, How to Get Value Out of a Project Management Office

(PMO), IIL, November 2002 Mullaly, Mark E., PMP, Project Management: A New Definition, gantthead.com July 23, 2003 Mullaly, Mark E., PMP, Baby PMO Blues, gantthead.com July 28, 2004 Rahiya, John C., Implementing the Project Management Office, Presentation to PMI-NYC, May

26, 2004 Passori, Al, Project Management Essentials: IT's About Governance, META Group Consulting,

Delta 2935, 2 June 2004 Santosus, Megan, Project Management Office Discipline: Why You Need a Project Management

Office, CIO Magazine July 1, 2003

Organization / Implementation of a PMO PMI-MN Breakfast Series October 12, 2004.

Documents

organization implementation

results pmo

vibrant pmo

independent pmo deliverables

sponsorship tactics

pmo pmimn breakfast

continued growth slide

benefits deliverables