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Why a Program/Project Management Office (PMO)?

Why a Program/Project Management Office (PMO)?
What Is a PMO?
Implementing a PMO
Suggestions to Jump Start PMO implementation
Questions & Answers



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Pmipmo Pmipmo Presentation Transcript

  • The Program Management Office Overview for Piedmont Triad PMI Chapter 8 September 2003
  • Agenda
    • Why a Program/Project Management Office (PMO)?
    • What Is a PMO?
    • Implementing a PMO
    • Suggestions to Jump Start PMO implementation
    • Questions & Answers
      • Rank and select important tactical improvement projects through Project Portfolio Management , to ensure your company doesn’t over-commit resources, and instead focuses efforts for the most impact.
      • Manage all projects consistently utilizing Best Practices , a critical factor in achieving higher project completion rates.
    Why a PMO - The Goals of a PMO
      • Manage Strategic Change with programs -- coherent groups of projects, each small enough to reliably succeed, but coordinated to achieve well-defined strategic goals.
    Strategic Change Best Practices Project Portfolio Management
  • What is a PMO: Essential Culture Components Individual Projects Enterprise Portfolio Organization Environment
  • What is a PMO: Key Processes
    • Change Management
    • Identification and elimination of organizational barriers to change
    • Management of employee resistance to change
    • Assurance of effective involvement of, and communication with, all project and program constituencies
    • Cost Management
    • Preliminary cost/benefit analysis
    • Project budgeting
    • Expenditure tracking and budget variance review
    • Communications Management
    • Centralized program and project reporting mechanisms
    • Inter-project communications
    • Post-implementation tracking and feedback
    • Governance
    • Program and project prioritization and risk/cost/value analysis
    • Decision-making, including commitment of time, money and resources
    • Issue resolution
    • Project monitoring and integration
    • Project Management
    • Project definition and initiation
    • Task planning and execution
    • Project completion and acceptance
    • Resource Management
    • Skill-to-task matching
    • Resource gap analysis and resolution
    • Global resource optimization
    Program Management Office Governance Communications Management Project Management Resource Management Change Management Cost Management
  • Governance: Project Initiation Process
    • Example Project Initiation Process
    • Use one, simple project request form for all projects
      • Only authorized individuals can submit project requests (VPs/Senior VPs)
      • All project requests go directly to the PMO
    • PMO evaluates the requests (enterprise architecture & project ranking tools)
    • Steering Committee approves/disapproves requests – approval authorizes effort to do detailed planning of the requests (no funding approval at this point)
    • Develop detailed cost & schedule estimates for approved projects
    • Steering Committee reviews estimates and approves/disapproves funding or pursuit of funds – normal budget & financial processes allocate funds
    • Project execution begins, and the PMO reports status of funded projects to the Steering Committee at least monthly
  • Governance & the Budget Cycle
  • Project Management Support Project Support
    • Project reviews/evaluation
    • Project Start-up/shut down
    • Assist with troubled projects
    Consulting and Mentoring
    • Knowledge transfer
    • PM best practices competency
    • Succession planning
    • Provide PM Instructors
    • Coordinate PM Training
    • Provide Training Materials
    • Identification of PMs for projects
    • Certification for PMs
    Project Manager Resources
    • Adherence to PM standards
    • Promote PM Methods
    • Accessibility of Methodology
    Methods and Standards The Program Management Office
  • Resource & Cost Management
    • Automated tools are required to do these functions effectively and efficiently
    • The PMO focuses on “projects”, but resource issues cut across operational activities – hence a need to track time on operational tasks. Can create a “project” or “projects” to represent operational work in relation to project work
    • PMO provides value-added by recognizing the need for or opportunity to adjust resource allocation between projects
  • Communications: Example of Organization & Roles
  • Change Management
    • This PMO function:
      • Anticipates organizational change caused by single or multiple projects, or that will impact projects
      • Ensures that activities occur to manage that change in a smart way
    • Examples
      • IT disaster recovery: operating units have fewer software applications and fewer people, so how will they operate in a disaster recovery mode?
      • Multiple new, inter-dependent and enterprise-wide software applications: role based training will be needed in addition to application training
      • Organization Reduction-in-Force (RIF): organizational cost cutting will impact availability of project resources
      • Incentives for project managers: are individuals only “graded” on their operational day jobs? So what encourages them to be successful PM’s?
  • Implementing a PMO: Basic Stages Assessment Definition Commitment Initiation Planning Execution / Control Transition / Shutdown Assess current environment: PMO Maturity Assessment, Current Projects Assessment, ROI and Cost Model Assessment Define Program Management Office (PMO): PMO Strategy and Mission Document Gain Executive Commitment to Build and Maintain PMO Initiate PMO Project: Governance Process, Business Case Development and Sign-off Plan PMO Implementation: PMO Manual, PMO Project Plan Sign-off Build and Implement the PMO: Initiate Training, Support, PMO Processes Hand-over to Client, Close Project: Transition Plan, Project Review
  • Implementing a PMO: Key Checkpoints PMOM01.2 PMOM01.1 PMOM01.4 PMOM01.6 Conduct PMO Maturity Model Assessment Conduct Assessment of Current Projects Outline Strategy and Mission Statement Client Sign-off on Assessment Assessment PMOM02.1 PMOM02.2 PMOM02.3 Conduct Assessment of IT Governance Process Develop PID / Business Case Client Sign-off on PID / Strategy Initiation PMOM03.4 PMOM03.12 PMOM03.12b Develop PMO Manual Client Sign-off on PMO Manual Planning PMOM04.2 PMOM04.3 PMOM04.4 PMOM04.6 PMOM04.7 PMOM04.8 Transition / Execution Implement Use of PMM / Delivery Methodologies Create Rolled-up Master Schedule Conduct PMO RAID Management Initiate Training Program Publish Revised PMO Manual Conduct PPW / Prepare PPW Report PMOM05.2 Execute Transition Plan PMOM04.5 Create Master Progress Tracking Report Define Transition Plan
  • Implementing a PMO: A Typical Lifecycle Estimated Timeline Assessment/ Initiation Planning Transition 2 Months 3 Months 1 Month 6 Months Execution PMO Maturity Model Governance Process Project Planning Workshop Project Management Planning Cost Planning Plan Execution Cost Management Tracking Monitoring & Controlling Performance Reporting & Information Distribution PMO Turn Over Program Initiation Workshop Team Development/ Mentoring Administration of Program Management Office PMO Deliverables PMO PID/ Strategy (Charter) Administration/ Controls Planning Communications Planning Project Assessment
  • Implementing a PMO: Resource Considerations
  • Suggestions to Jump Start PMO Implementation
    • Identify the portfolio of projects – seeing the volume of work gets senior leader attention (leaders define the threshold: >80 hours?)
    • Begin monthly senior leader governance meetings immediately, refining the process as you go
      • Operating units need to see someone in charge, to whom they must sell new project requests
      • PM’s need to see someone make prioritization decisions
    • The PMO Champion (preferably the CEO/COO) directs that:
      • Projects follow the same methodology (workshops, templates, etc.)
      • PM’s report weekly and brief to a designated senior leader monthly