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  • <ipf>R,19: What is a Project Office?</ipf>
  • <ipf>L,20: The Project Office</ipf>
  • <ipf>R,21: Justifying the Cost of the Project Office</ipf>
  • <ipf>R,23: Project Management Office: Staffing and Resources</ipf>
  • <ipf>R,24: Matrix Organizations</ipf> These are validly different organizations but subtle difference. The job title is essentially “the visible change” and one must not belittle the inordinate significance that many companies still attribute (and their employees!) to the names. They can signify very much. A “manager” is very different to a “Leader” though paradoxically, managers should often “lead” whilst leaders should often “manage”. Weak Matrix Organization The project manager is a staff level person Reports to a functional manager Works part time on the project Often performs technical work and manages the project Frequently not empowered to make decisions Holds little authority over the project team Balanced Matrix Organization The project manager is a staff level person Reports to a functional manager Project manager and functional manager are jointly responsible Works full time on the project Often performs technical work and manages the project Frequently must clear important decisions through the functional manager Holds little authority over the project team Provides the most flexibility
  • <ipf>L,25: Project-Oriented Organizations</ipf> Strong Matrix Organization The project manager is a professional trained project manager Reports to a director or vice president Works full time on the project Rank is equal to or greater than functional managers The project manager is accountable for decisions The functional manager is a technical consultant Holds much authority over the project team Projectized Organization The project manager reports directly to senior management The functional managers report to the project manager Frequently the functional managers are outsource vendors On a large several year long computer project The project manager may report to the vice president The specific functional managers report to the project manager
  • <ipf>L,26: The Project Office Functions</ipf> This is intended to show the complete spectrum of activities of the project management office (PMO). It is important that the PMO is not seen as just an admin office. It should be the repository of project management excellence. There should be admin staff but also senior project management consulting staff. All project managers should see the PMO as the source of standards, techniques, best practice education etc. There is a box in the spectrum called “manage projects”. There is a useful discussion about whether the Project Management Office should actually get involved in managing real projects. There are various options: 1. The PMO only advises and mentors but does not get bogged down in day-to-day project work. 2. The PMO manages only large, mission critical projects. If the organization is sufficiently projectized, perhaps the PMO has all of the project management resource within it and therefore it manages all projects.
  • <ipf>R,27: The Administrative Functions of the Project Office</ipf>
  • <ipf>L,28: The Operational Functions of the Project Office</ipf>
  • <ipf>R,29: The Cultural Functions of the Project Office</ipf> You may get a bit of a laugh by suggesting who we might go to for our project management training. It might be an opportunity to talk about the curriculum and certification but watch the accusation of trying to sell.
  • <ipf>L,30: The Cultural Functions of the Project Office (continued)</ipf>
  • <ipf>R,31: Summary of Benefits</ipf> “ Latest and greatest” is a common term for the new “hot button” introduced by management,. It becomes top priority. – see the discussion of the project slate. The PMO is the obvious place to manage the slate.
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    1. 1. Implementing a Project Office <ul><li>Presentation to Applications Division, Edinburgh University, 24 th May 2007 </li></ul><ul><li>Paul Lyden, Fistral Consultancy ( </li></ul><ul><li>What is a Project Office? </li></ul><ul><li>How can you create an effective Project Office </li></ul><ul><li>Action Plan </li></ul>
    2. 2. What is a Project Office? <ul><li>What the PMI says: </li></ul><ul><li>What the Gartner Group says: </li></ul>There is a range of uses for what constitutes a project office. A project office may operate on a continuum from providing support functions to project managers in the form of training, software, templates, etc. to actually being responsible for the results of the project. — PMBOK Guide , 2000 Ed. R ecently Gartner has seen the renewed use of a dedicated organizational structure to develop an enterprise discipline for project management . M ore than 40 percent of client organizations have implemented some form of project office to “professionalize” project management .
    3. 3. The Project Office <ul><li>Provides standards and procedures to all project managers </li></ul><ul><li>Advises and mentors in specific project situations </li></ul><ul><li>Monitors delivery of project milestones </li></ul><ul><li>Establishes a culture of best practice </li></ul><ul><li>Ensures that lessons learned are preserved </li></ul><ul><li>Improves the success rate of projects within the organization </li></ul><ul><li>Improves return on investment of corporate projects </li></ul>
    4. 4. Justifying the Cost of the Project Office <ul><li>Projects are valuable </li></ul><ul><li>Organizations are becoming more “projectized” </li></ul><ul><li>Project failure is very costly </li></ul><ul><li>Cost of The Project Office can be justified </li></ul>According to The Standish Group International Inc. in West Yarmouth, Mass., schedule delays on IT projects still occur 63% of the time, while 45% of companies face cost overruns. Overall, 23% of all projects fail, which means the project is canceled before completion or is never implemented. Furthermore, 49% of projects are challenged, meaning that the project is completed but is over budget, exceeds the time estimate, or boasts fewer features and functions than initially specified. Case Study: The project office had annual operating costs of $253,000, but it saved the company $2.5 million by canceling uneconomic projects in just one year. That demonstrates real value — both intermediate and longer-term — to the bottom line.
    5. 5. Project Management Office: Staffing and Resources <ul><li>Managed at a level consistent with the role within the organization (See upcoming slides) </li></ul><ul><li>Project management staff </li></ul><ul><ul><li>Full or part time </li></ul></ul><ul><ul><li>Methodology “champions” </li></ul></ul><ul><ul><li>Senior troubleshooters </li></ul></ul><ul><li>Administrative staff </li></ul><ul><ul><li>Project-aware </li></ul></ul><ul><ul><li>Supportive of the project management function </li></ul></ul><ul><li>Technical and functional staff </li></ul><ul><ul><li>Seconded “as and when required” </li></ul></ul>
    6. 6. Matrix Organizations <ul><li>Functional organization s </li></ul><ul><ul><li>Groups of people operating in specializations </li></ul></ul><ul><ul><li>Projects are not coordinated </li></ul></ul><ul><li>In a matrix organization , the project manager </li></ul><ul><ul><li>Works part time </li></ul></ul><ul><ul><li>Has little or limited authority </li></ul></ul><ul><ul><li>Is not empowered </li></ul></ul><ul><li>Result </li></ul><ul><ul><li>No common standards </li></ul></ul><ul><ul><li>No priority assessment </li></ul></ul><ul><ul><li>No senior management involvement </li></ul></ul><ul><ul><li>High failure rate </li></ul></ul><ul><ul><li>High cost </li></ul></ul>Matrix organization Data analyst Data analyst Data analyst C++ Pascal COBOL Installer Installer Division manager Technician/ project manager Functional manager: database Functional manager: programming Functional manager: servers
    7. 7. Project-Oriented Organizations <ul><li>In a strong matrix , the PM O </li></ul><ul><ul><li>Is supported by senior management </li></ul></ul><ul><ul><li>Is at the same level as PMs </li></ul></ul><ul><ul><li>Is independent of functional departments </li></ul></ul><ul><li>In a projectized organization , the PM O </li></ul><ul><ul><li>Is managed at a senior level </li></ul></ul><ul><ul><li>Coordinates all projects </li></ul></ul><ul><ul><ul><li>And all staff are project-oriented </li></ul></ul></ul><ul><li>Result </li></ul><ul><ul><li>Project standards are maintained </li></ul></ul><ul><ul><li>Priorities are managed </li></ul></ul><ul><ul><li>Costs are controlled </li></ul></ul><ul><ul><li>Success rate is improved </li></ul></ul>Data analyst Data analyst Data analyst Functional manager: database C++ Pascal COBOL Functional manager: programming Installer Installer Functional manager: servers Division manager Manager PMO Project manager Project manager Director of PM Senior manager Strong matrix organization Configuration specialist Project manager Staff Staff Staff Project manager: Staff Staff Staff Project manager: Staff Staff Staff Project manager: Director PMO Vice president Projectized organization Staff
    8. 8. The Project Office Functions Administration functions Cultural functions Project registration Training Project support The project handbook Maintain the project intranet Conducting project reviews Assigning project mentors Promoting best practice Maintaining the methodology Certification Recording lessons learned Checking and approval Operational functions Tools and techniques Project slate Ongoing education External seminars Manage projects
    9. 9. The Administrative Functions of the Project Office <ul><li>Registering new projects </li></ul><ul><ul><li>Formal acceptance of projects, assignment of account code </li></ul></ul><ul><ul><li>Assignment of project manager </li></ul></ul><ul><ul><li>Recording of sponsor, budget holder, etc. </li></ul></ul><ul><li>Maintaining the project methodology </li></ul><ul><ul><li>Ensuring version control </li></ul></ul><ul><ul><li>Recording errors and improvements </li></ul></ul><ul><li>Establishing the project slate </li></ul><ul><ul><li>Defining the process to change project priorities </li></ul></ul><ul><ul><li>Maintaining project benefit/cost record </li></ul></ul><ul><ul><li>Maintaining project resource requirements </li></ul></ul><ul><li>Checking and approval </li></ul><ul><ul><li>Ensures all project documents are checked by independent project manager </li></ul></ul><ul><ul><li>Ensures all projects are authorized at the appropriate level, if required </li></ul></ul>
    10. 10. The Operational Functions of the Project Office <ul><li>Conducting project reviews </li></ul><ul><ul><li>Milestone events </li></ul></ul><ul><ul><li>Risk reviews </li></ul></ul><ul><li>Assigning project mentors </li></ul><ul><ul><li>Internal or external assistance to project manager, when required </li></ul></ul><ul><ul><li>Reacting to unsatisfactory project status </li></ul></ul><ul><li>Project support </li></ul><ul><ul><li>Identifying and providing additional project resources </li></ul></ul><ul><ul><li>Facilitating scope and time negotiations with project sponsor </li></ul></ul><ul><li>Tools and techniques </li></ul><ul><ul><li>Researching contemporary techniques in project management </li></ul></ul><ul><ul><li>Introducing new methods and processes </li></ul></ul><ul><ul><li>Coordinating feedback on practical use of existing tools </li></ul></ul><ul><ul><li>Maintaining templates, etc. </li></ul></ul>
    11. 11. The Cultural Functions of the Project Office <ul><li>Establishing the project handbook </li></ul><ul><ul><li>A reference for all project staff, with access to the methodology, templates, and documents </li></ul></ul><ul><li>Maintaining the projects intranet </li></ul><ul><ul><li>A central source of methodology messages and specific project information </li></ul></ul><ul><li>Organizing project management training </li></ul><ul><ul><li>Conducting training needs analysis for project staff </li></ul></ul><ul><ul><li>Identifying and sourcing project management training suppliers </li></ul></ul><ul><li>Promoting certification </li></ul><ul><ul><li>Establishing a certification path </li></ul></ul><ul><ul><li>Supporting certification candidates </li></ul></ul><ul><ul><li>Implementing corporate maturity (e.g., OPM3) </li></ul></ul>
    12. 12. The Cultural Functions of the Project Office (continued) <ul><li>Promoting best practice </li></ul><ul><ul><li>Recording what works and what does not </li></ul></ul><ul><ul><li>Disseminating performance information among project management staff </li></ul></ul><ul><ul><li>Holding best-practice seminars to spread the word </li></ul></ul><ul><li>Preserving lessons learned </li></ul><ul><ul><li>Promoting and facilitating end-of-project reviews </li></ul></ul><ul><ul><li>Recording lessons learned </li></ul></ul><ul><ul><li>Disseminating results among project management staff </li></ul></ul><ul><ul><li>Initiating corrective action, if required </li></ul></ul>
    13. 13. Summary of Benefits <ul><li>Project redundancy eliminated </li></ul><ul><ul><li>Reduces occurrence of “reinventing the wheel” </li></ul></ul><ul><ul><li>Identifies project overlaps and gaps </li></ul></ul><ul><li>Standardized project delivery </li></ul><ul><ul><li>Stakeholders come to know what to expect </li></ul></ul><ul><ul><li>A consistent step-by-step process </li></ul></ul><ul><ul><li>Consistent use of project terminology </li></ul></ul><ul><li>Improved ROI </li></ul><ul><ul><li>Project costs reduced </li></ul></ul><ul><ul><li>Benefits assured </li></ul></ul><ul><ul><li>Reworking reduced </li></ul></ul><ul><li>Priority changes managed </li></ul><ul><ul><li>“ Latest and greatest” avoided </li></ul></ul><ul><ul><li>Cost of priority change accurately assessed </li></ul></ul><ul><ul><li>Management given all the implications of priority change </li></ul></ul>
    14. 14. How to create a Project Office <ul><li>Decide on the services you are hoping to deliver </li></ul><ul><ul><li>To project managers </li></ul></ul><ul><ul><li>To senior management </li></ul></ul><ul><ul><li>To staff </li></ul></ul><ul><li>Create a vision /goal </li></ul><ul><ul><li>Write a goal statement </li></ul></ul><ul><ul><li>Establish a “Brand” </li></ul></ul><ul><ul><li>Advertise the service </li></ul></ul><ul><li>Justify the cost to senior management </li></ul><ul><ul><li>Fewer failed projects </li></ul></ul><ul><ul><li>Better return on investment </li></ul></ul><ul><li>Establish the service </li></ul><ul><ul><li>Procedures </li></ul></ul><ul><ul><li>Methodology </li></ul></ul><ul><ul><li>Training </li></ul></ul>
    15. 15. Learn from past experience <ul><li>Create services across the spectrum </li></ul><ul><ul><li>If project managers get something from it they will support the PMO. </li></ul></ul><ul><ul><li>Senior Management will want to see benefits </li></ul></ul><ul><li>Write a Project Management Handbook </li></ul><ul><li>Create a Lessons Learned Database </li></ul><ul><li>Provide tools </li></ul><ul><li>Make reporting proportionate </li></ul><ul><li>Provide monitoring and clinic services </li></ul><ul><li>Tell management about the successes </li></ul>