Project Management Office
Framework & Phased
Implementation Roadmap
Anand Subramaniam

“Planning is an unnatural process; it is much more
fun to do something. The nicest thing about not
planning is that failure comes as a complete
surprise, rather than being preceded by a period
of worry and depression.”
- Sir John Harvey-Jones
2

Highlights
 Projects Managed without PMO
 Projects Managed with a PMO
 PMO Life Cycle & Critical Success Factors
 PMO – Maturity, Objectives
 Link – PMO to Enterprise Strategy
 PMO relationship to PPM, Program & Projects
 PMO – Function, Type, Resourcing, Method & Control
 PMO – Implementation Framework
 Planning & Assessment
 Roadmap
 Lesson Learned
 Advanced PMO Model for Project Portfolio Management
3

Projects Managed without PMO

Project - Success & Failure Rates
Reason = Inadequate Planning & Governance
Large Programs Success Rates Why Projects / Programs Fail
Others Poor Organisation &
Successful Project Management
Technical Problems Practices
11%
16% Problems with Suppliers 4%
4%
36%
Insufficient Project
53% Personnel Resources 10%
31%
15%
Cancelled 20%
Ineffective Project
Under Perform Planning
Poorly Defined or
missing Project
Objectives
Source: Standish Group International, Survey from 2500 personnel attending project management training
5

Do you face this ...
Source -Running the Successful Hi-Tech Project Office - Eduardo Miranda
6

Project - Current Challenges
Inaccurate scope definition and / or Inability to achieve on time, on
no detailed project plans to achieve it budget and quality of the
deliverables due to lack of controls
Scope not tightly
controlled leading to Lack visibility on project
ROI goals unmet procurement and / or
Current contract management
Lack visibility on Challenge management
s Lack buy-in due to less /
resource demands
no project communications
and / or loads
Lack rigor in risk
Inability to review management / QA
existing projects No or irregular
against changing project health Poor or no documentation
priorities / checks carried out and records management in
conditions place
7

Project - Opportunities / Risks
Opportunities Risks
• Identifies gaps in realisation of • Fragmented project plans
strategic objectives • Poorly defined project mission &
• Escalates current risks and tasks
identifies potential risks earlier • No clear process for escalating
• Ensures proper communications risks to senior management
to relevant stakeholders • Insufficient reporting to support
• Improves monitoring and control top-management decisions
of projects • Ineffective enforcement of project
• Mediates issue resolution controls and policies
• Increases efficiency in tracking • Conflict between line and project
progress of projects managers
• Integrates project plans for all • Projects do not meet deadlines
projects – standardises progress and / or milestones
reporting • Lack of standardised reports and
reporting frameworks
8

Projects Managed with a PMO

Why PMO?
If a firm runs multiple, cross-functional projects concurrently, then it needs …
Continuous improvement
Repeatable Accurate
culture, continual progress
project delivery estimates based
review towards completion &
process & less on firm’s history &
improved ROI
“reinventing the lessons learned
wheel”
Why
Management and Priorities managed
up-skilling resource
PMO? based on timelines,
budgets, resource loads,
what-if analysis
Senior information
Managemen Consistent Project
t support Accurate
Management and
and direction resource
guidance (methods,
management
systems, processes,
across projects
tools, metrics etc)
10

Manager – PMO & Project
PMO Project
Manager Manager
Help Plan
Advise Track
Review Initiate
Facilitate Control
Audit / QA Manage
Mentor / Coach Execute
Strategic Planning Estimate
Train PM Resources Organise
Manage Project Communicate
Knowledge
11

Stakeholder Experience with a PMO
Scope Managed &
• Improved time to market
• Increased project effort visibility Delivered
• Project goals & scope well
understood & managed
• Improved communication &
stakeholder relationship
• Resources managed Stakeholder • Reduced redundant
project efforts
• Reduced rework with • Decrease cost overruns
repeatable process Experience with repeatable process
Less Cost
Time Lines Met
Overruns
12

PMO – Life Cycle & CSF

PMO Life Cycle Loop – Overview
Strategic
Business
Planning
Project
Continuous
Improvement Management
Business
Office
Process
Reengineering
Project
Maturity
Portfolio Projects
Models
Management
14

PMO Life Cycle – Critical Success Factors
Leadership, Commitment
Sponsorshi
p
Organisation Benefit
Alignment Assurance
Continuously
Capture PIR, Lesson Learnt
Project Select. Prioritise Improve
Measuremen Critical Capability
Success
t Development
Factors
Coach / Mentor
Risk, Defects, ROI, QA
Collaborate Communicate Knowledge Mngt
Prof Development
Project Stakeholder
Management Managemen
Process, Standards t
Tools,
Project Plan
checklist Managemen Communication, Integration
Risk, Quality, Com, Cost, Time etc
t
15

PMO – Maturity, Objectives

PMO - Maturity Levels
Tactical Strategic
Source – The Complete Project Management Office Handbook - Gerard M. Hill
17

PMO - Objectives
Source – The Complete Project Management Office Handbook - Gerard M. Hill
18

Link – PMO to Enterprise Strategy

PMO – Conceptual Overview
Projects
Drill Down
Capability Status
Executive Business
Management Project Portfolio
Units Database
Policy
Vision / Mission Budget Proposals Approvals/Adjustments/Status
Firm’s Strategy Business Cases
Business Trends Project Justification
Direction Standard Program / Project
Reporting
PMO Requirements • Status
•
Overview •
Funding
Evaluation
Training • Issue Resolution
• Risk Management
• Exception Analysis
• Business Function
• Scope Management
Resource PPM Tools • Contract Management
Pool • $$ / Time Performance
PPM Operations • Resource Forecast &
Guide Analysis
Contractor Process
Database Library
20

PMO - Strategy Alignment
Feedback
Direction
Governance Governance
Enterprise
Review Review
Board Strategy Board
Business Unit
Delivery
Strategy
Prioritisation Prioritisation
Project
Management
Program / Office
Project QA / QC
Manager
Project Status Reports, Time Sheets,
Expenses, Project Schedules
Feedback Feedback
21

PMO
Owners
Sponsors
Executives
Auditor / QA
Project Team
Users/Consumers
Support & Maintenance
Value Category 
X
X
Pla
nn
ing
X
Pr
ior
i t is
X
X
X
at i
De on
li v
er y
X
X
an
To de
ols xe
,b cu
es t io
X
X
Me tp n
nto r ac
r in t ic
g es
X
X
X
X
Mo
n it
or
ing
X
X
Re an
po d /o
r ti rt
X ng r ac
X
Qu an ki n
al i dv g
ty i si
bil
as i ty
X
X
Ri su
sk r an
ma ce
na
X
X
X
X
I ss ge
ue me
r es nt
olu
t io
n
PMO - Business Unit Alignment
22

Project / Initiative - Governance Review
Initiative #
Initiative Description Initiative Deliverables
 
Key Resources Required Inputs / Dependencies
 
Key Stakeholders Costs / investments Required
 
Initiative Project Sponsor Initiative – Project Owner
 
Scope – In & Out Business Benefits
 
23

PMO inter-relationship with Project
Portfolio, Programs & Projects

Project Portfolio Mngt & Governance
Project Portfolio Management (PPM) and Governance Process
Enterprise Information (Critical Success Factors, Strategy/Goals/Objectives, Key Performance Indicators)
Governance Process (Project Selection Criteria, Track - Project Goal Achievement , Customer Experience)
PPM - Information Portal
PPM Support Tool PPM Reports / Score Card / Dashboard
PM Resource Pool PM Skills Development, Coaching, Mentoring
PPM Repository PM Methodology, Standards, Templates, Tools, Checklist
Project Management Office or Program Management Office (PMO)
PMO Support Tool PMO Reports / Score Card / Dashboard
PMO Repository PMO – Specific Methodology Options, Tools, Checklists
Programs & Projects (Pg / Proj)
Pg / Proj #1 - Repository / Status Infor. Control, Communication, Documentation, Lesson Learned
Pg / Proj #2 - Repository / Status Infor. Control, Communication, Documentation, Lesson Learned
Pg / Proj #3 - Repository / Status Infor. Control, Communication, Documentation, Lesson Learned
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Org Structure – PMO & Projects
PSC members – Names
Project Steering Committee (PSC) Stakeholder Forums / Committees
 Project director – Name  Project Advisor – Name
 

Project co-ordinator – Name Project Management Office (PMO) 
Project Quality Assurance – Name
Project support – Name Management Consultant – Name
 Master planning – Name  Risk Advisor – Name
Sub-project owner Sub-project owner Sub-project owner Sub-project owner Sub-project owner Sub-project owner Sub-project owner
Name Name Name Name Name Name
Name
Sub-project # 1 Sub-project # 2 Sub-project # 3 Sub-project # 4 Sub-project # 5 Sub-project # 6 Sub-project # 7
External
Procure to Pay Order to Cash Product Life APS / MES / Lean / Six Innovation / Sustainability Help Desk service
Cycle Mngt SCADA Sigma NPD providers
Finance
Service
Human resources Provider # 1
Technical / Quality Control
Service
Support Provider # 2
Sales & Marketing
Teams
Engineering / Manufacturing Service
Provider # 3
Distribution / Logistics
Service
Materials Management
Provider # 4
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PMO – Functions, Types,
Resourcing, Methods & Control

PMO - Functions
Project registration Tools and techniques Training Ongoing education
Maintaining the methodology The project handbook Promoting best practice
Project Conducting project reviews External seminars
definition
Check & Project Executive
approve Information & Maintain the project intranet Recording lessons learned
support
Manage projects
Assigning project mentors & contracts Certification
Administration Cultural
Operational
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PMO Types
Centre of
Project Office Basic PMO Standard PMO Advanced PMO
Excellence
Single Tactical
vs. No one size. vs.
Multiple It depends on.. Strategic
PM maturity
Vision & goals of sponsor
PMO drivers / business needs
Business / organisation mission
Political & cultural environment
Departmental Number of projects Internal
vs. Organisation size vs.
Enterprise Etc. Etc External
Authoritative ~ Advisory
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PMO – Authoritative ~ Advisory
Authoritative Hybrid Advisory
• Provides a centralised
• Assumes ownership over • Ownership of standards,
supporting function to assist
execution of business unit processes and performance
projects with policies,
projects - managing “ the reporting
procedures, resourcing
program ”
• Delivery accountability
• Delivery accountability
• Central management of remains with the PM and
remains with the PMs and
Business Unit
resources; project staff are business units
“loaned out” to business units • Support for training, project
• Provides centralised
resourcing
• Manage external staff training, resourcing &
procurement where required procurement support to the
• Central coordination of
projects / business units
communications
• Implement standard policies
• Supports benefits,
and procedures
knowledge management
• Drives benefits assurance, • Central coordination of
knowledge management communications
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Resource Management – Across PMO
Project Office Basic PMO Standard PMO Advanced PMO Centre of
• Identifies project • Provides • Introduces
Excellence
resource needs, guidance for oversight • Manages
coordinates utilisation of capability for standards of • Collaborates with
project resource essential project project resources performance for HR and business
acquisition and resources project resources units to determine
assignment • Implements resource
• Establishes basic practices for • Develops formal utilisation
• Manages project procedures for acquisition of procedures for requirements
resource requesting and project resources deployment of
performance assigning project project resource • Forecasts
resources • Collaborates utilisation of
requests and • Conducts project resources
• Prepares routine assignments for competency
reports project resources assessments for • Identifies needs
documenting project resources and recruits
project resource • Implements project resources
assignment and guidance for • Monitors &
utilisation project resources evaluates
performance performance of
project resources
management
31

PMO – Methods & Support Model
PMO PMO Support
Methods
1.1
Project Mngt Delivery Life Project Consulting / Contracts /
Process Cycle Control* Mentoring Procurement
Process Life Cycle Schedule Startup SOW
Definition Definition Assistance Assistance Assistance
Initiation COTS / Open Time Tracking JIT RFP
Source` Assistance Assistance
Planning Design Code Library Risk Bid Evaluate
Test Maintain Management Assistance
Executing Waterfall Communi- Contract
Project
cation Recovery Tracking
Controlling RAD / Agile Project Procurement
Management
Visibility Consulting
Closing Spiral
QA /
* See Next Slide Governance
32

PMO – Support & Control Model
Support PMO Control
• Master Project Schedule • Project Audits
• Issue Tracking/Reporting • Business Case
• PM tools and tools support • Project Approval
• Integrated Project Reporting • Project Prioritisation
• Project Document Repository • Project Management
• Project administrative support • Contract Management
• Project Consulting and mentoring • Resource Management
• PM coaching / training / certification • Cost and Schedule Control
• PM standards, methodology, processes • Project Portfolio Management
33

PMO – Implementation Framework

PMO – Continuous Improvement
 Phased approach
Review Slide (PMO Life Cycle – Critical Success Factors)
 Obtain Management Buy-in
 Organisation alignment
 Define initial steps
 Define PMO - “services”
 Justify value
 Define & measure results
 Project Management Standards
 Capability Development
 Stakeholder Management
 Center of Excellence
 Continuous Improvement
35

PMO – Phased Implementation Schedule
Phase 1 Phase 2 Phase 3
High Level
Planning Manage Stakeholder Expectations
As ~ Is To ~ Be Knowledge Continuous
Assessment Assessment Portal Improvement
Method / Tool Capability
Development Development
PMO Pilot -
Implementation
Multi-site
Rollout
36

PMO – Planning & Assessment

PMO… Where to Start ?
Project Admin Project Mngt Program Mngt PM - Centre of Strategic Proj
Excellence Office
• Proj Reporting • PM standards, • Coordination of • PM recruiting • Project
• Proj Costing guidelines, large projects or interviewing selection,
• Proj Metrics methodologies programs • Reporting prioritisation &
• Proj Comm. • Tools & relationships approval
• Proj Portfolio techniques • Coordination process
maintenance across multiple • Career planning
• Training, projects & development • Project Portfolio
• Proj Library mentoring, Management
(resources, cost coaching, team • Project structure • PM advocacy
vs. budgets, building • PM best • Strategic
risks, QA, • Project practices planning &
lessons learned, • Facilitation of standards • Proj measures, alignment
Artifacts, re- project peer metrics,
usable reviews benchmarking • Resource
components) • Risk & issue allocation
management • Continuous
• Project recovery improvement
• PM support • Quality
services Assurance
38

PMO – High Level Planning
Nominate and Review Tools,
Communicate Develop PMO Conduct First
Confirm PMO Processes &
PMO Goals Master Plan PMO Session
Team Templates
 Identify,  Structure PMO  Review process,
 Conduct work-  Confirm logistics
nominate and with relevant identify areas for
shops with key & communicate
obtain approval stakeholders improvement
stakeholders timing and
for the PMO
agenda of first
leadership from  Communicate  Define, develop
 Prioritise PMO session
senior involvement and and distribute -
initiatives and
management PMO tools, processes
conduct high-  Discuss issues,
expectations and templates
level review of dependencies,
any (inter) project plan
 Engage & obtain  Define and (re)
dependencies & recommendation
buy-in on develop -
overlaps & role of PMO
program project reporting,
going forward
objectives and risks, issue,
 Consolidate
approach change and
initiative project  Distribute
communication
plans into a program-related
management
consolidated process
processes
master plan information
39

PMO – Initial Assessment Areas
Existing
Organisation Process Project
Culture Management
Existence of Maturity
Flexibility of the documented
organisation processes
Value placed on project
Adaptability to Effectiveness of management
change existing processes
Commitment to project
Business strategy Consistent adherence management
alignment to documented
processes Effectiveness / success
Clarity of of projects
organisational roles Accessibility of
and responsibilities documented Existence of a
processes standardised project life
Attitude towards cycle or methodology
projects – expense / Measures in place to
investment control projects Level of training
40

Remember…
 PMO Charter
 Change Management
 Implementation Strategy
 Staff - Training / Coaching
 Metrics / Performance
 Critical Success Factors
 Project Management Practices - Maturity
41

PMO – Charter Development
Scope Memo
• Business Needs • Mission / Vision
• Sponsor • Goals/Objectives
• Type • Sponsor
• Maturity • Service Offering
• Resourcing • PMO Governance
• Functions • Key Performance Metrics
• Methods • Funding model
• Control • ROI Analysis
42

PMO – Culture / Change Management
Firm’s Change
Political
Culture Management
Landscape
PM maturity Assess impact of
Winners/Losers change
PMO charter
Management Resistance
Support Existing skill
level Inform
Key driver Educate
Implementation Involve
strategy
43

PMO – Implementation Strategy
Incremental Revolutionary
Drivers
• Lower start up costs
• PMO charter • Higher startup costs
• Will take longer to
• PM maturity • Implementation risks
demonstrate ROI
• PMO drivers higher
• Implementation risks
• PMO Roadmap • May be able to
lower
• Perception of value demonstrate quicker
• More suitable if high
• Political environment ROI
resistance to change
• Culture / Value System • More suitable, if crisis
and low management
• Sponsor and or recognition at high
support
management support level that change is
imperative
44

PMO – Resourcing
Approach Skills
• In-house resources • Project Manager
• Hybrid (In- house / • Project Portfolio Manager
contractors) • PMO Director / Manager
• Ad hoc contractors • Administrative Support
augmentation • PM Process /
Methodology Trainer
• Relationship / Account
Manager
• Tools Support /
Administration
• Librarian / Document
Control
45

PMO – Performance Metrics
Internal focus - Measure and demonstrate
Executive focus - Measure and performance or quality of PMO functions
Fu
demonstrate value to business
nc
PMO budget & improvement PMO
e
tio
performance
al u
Justify existence
na
sV
Baseline or benchmark performance
lP
Expressed primarily in dollars
es
er
savings / revenue or ROI
sin
Expressed ( percent or counts )
fo
depending on functions performed
rm
Bu
PMO vs. Project Metrics
an
ce
Service Level
Customer focus - Measure and demonstrate
service level or quality of service to customer
Service Level / Operational Level Agreements
Select the most important value to stakeholder
community
46

PMO – Success Factors
Review Slide (PMO Life Cycle – Critical Success Factors)
Sponsor
Clear reports
Charter to
Board
Top Continuous Bottom
Down Improvemen Up Buy-
Support t / communi- in
cation
Manage
Training
Stake-
/ Coach
holder
47

PMO – Implementation Roadmap

PMO – Implementation Roadmap
Organisation-
Project Initiation Project Office Project Office
Wide Standards
and Planning Establishment Infrastructure
Development
Rollout and
Operations
Training Transition Stage Project Closure
Stage
Preparation
49

Initiation & Planning - Deliverables
 Charter
 Objectives
 Project Plan
 Project Scope
 Project Budget
 Business Case
 Success Factors
 Measures & Metrics
 Project Organisation
 Project Standards & Control Procedures
 Educating Top Management & Project Staff
50

Establishment - Deliverables
 Project Office Budget
 Project Office Staffing Plan
 Project Office Facilities Plan
 Project Office Communication Plan
 Project Office Documentation Plan
 Project Office Organisation Structure
51

Office Infrastructure - Deliverables
 Project Office Guidebook
 Projects Base-lining Procedures
 Project Office Interface Structure
 Software and Hardware Procedures
 Operational Management Procedures
 Standard Projects Justification Criteria
 Security and Budget Control Procedures
 Communication and Staffing Procedures
 Projects Resource Allocation Procedures
 Projects Meeting and Reporting Guidelines
 Measurement & Exception Management Procedures
52

Org Standards - Deliverables
 ISO
 CMMi
 Project Planning
 Requirements Management
 Software Quality Assurance
 Software Configuration Management
 Software Subcontract Management
 Software Project Tracking and Oversight
53

Training Rollout - Deliverables
 Rollout Approach
 Rollout Scope Document
• Objectives
• Risks and Constraints
• Other Initiatives
 Rollout Increments
 Training Strategy
 Change Resistance Strategy
54

Transition - Deliverables
 Project Office Support
 Project Office Reports Based on
Transition Stage Performance
 User Feedback & Process Improvements
55

Operations Stage - Deliverables
 Process for Projects Assessment &
Prioritisation
 Ongoing Projects
 New Projects
 Project Office Reporting on Projects
 Cost Analysis
 Time Analysis
 Performance Analysis
 Assessment of Project Office Activities
56

Project Closure – Deliverables
 Lessons Learned
 Project Closure Meeting
 Process Improvement Report
 Project Performance Measures
 Action Plans for Remaining Open Items
 Maintenance Guide for Project Office
Activities
 Celebration of Success!
57

Note ….
PMO PMO is the
Develop a
evolution is “enabler”
sound
a journey but senior
Business
with managemen
Case and a
manageable t has to be
positive ROI
phases the “driver”
Ensure
PMO Train and
manager coach Users
has prior on PMO
PMO process
experience
Send PMO
PMO vision Create
staff to the
and an Managemen
trenches
overall t awareness
and avoid
strategic on PMO
“ivory tower”
plan approaches
syndrome
58

PMO – Lessons Learned

Lessons learned
 Celebrate small wins / success
 Cater reporting to stakeholder needs
 Tell management about the successes
 Write a Project Management Handbook
 Provide monitoring and advisory services
 Create PMO services across the spectrum
 Create a Lessons Learned Database / Portal
 Standardise – methods, process, tools,
techniques, checklists etc
60

Advanced PMO Model for Project
Portfolio Management

Advanced PMO Model
Traditional Advanced
• Process leadership • Thought leadership
• Tools as a “map” • Tools as a “compass”
• Based on rules • Based on guiding principles
• Focus on efficiency • Focus on effectiveness & innovation
• Focus mostly on tactical issues • Focus on strategic & cultural issues
• Science of project management • Art and craft of project management
• Internal process focused • Focus on end products & customers
• Emphasis on monitoring & • Emphasis on collaboration
control • “Agile” methods and practices
• “Heavy” methods and practices
• Adaptive and innovative practices
• Defined, repeatable, optimised
• Balanced management,
practices
governance and leadership
• Heavy management and
governance
62

“We are what we repeatedly do.
Excellence then, is not an act, but a habit.”
- Aristotle
63

Good Luck
http://www.linkedin.com/in/anandsubramaniam
64