Business-PMO & IT-PMO - What is the difference Organizational differences of Project Management Offices and the real world challenges that Project Management Offices face based on their organizational alignment in the overall structure of the organization

1. Does one model fit all ? Where do you want to be?
Business-PMO & IT-PMO
What is the difference?
Stefan Rank, PMP
Project World November 2005
Orlando, Florida

2. Agenda
 This is your agenda
 You can ask all the questions you want
 We have one hour
 This is a workshop for you
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3. This is why you are here!
 Project Management organizations (PMO,
EPMO, COE for PM) are vital components of all
types and sizes of corporations.
 Organizationally they are aligned differently
based on size of the company and the initial
charter when they where established.
 This session will focus on the organizational
differences of Project Management Offices and
the real world challenges that Project
Management Offices face based on their
organizational alignment in the overall structure
of the organization.
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4. Project Management Office Definition
A shared organizational structure that serves as a repository of information
for project reporting and disseminating best project management practices
A Project Management Office (PMO) is a shared competency designed to
integrate project management practices within an organization.
Source: www.nitoc.nv.gov/PROJ/projdocs/ATC-SummerSession.pdf
Sometimes called project office. This is the office or department responsible
for establishing, maintaining and enforcing project management processes,
procedures, and standards. It provides services, support, and certification
for project managers.
Source: it.csumb.edu/departments/data/glossary.html
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5. Program Management Definition
The coordinated management of a portfolio of projects to achieve a set of business objectives is
called program management. Or, a program might refer to an ongoing set of activities internal to
the organization, for example, a Total Quality Management program, workplace safety program,
supplier development program, etc.
Source: http://www.mapnp.org/library/prog_mng/prog_mng.htm
A portfolio of projects selected and planned in a coordinated way so as to achieve a set of defined
objectives, giving effect to various (and often overlapping) initiatives and/or implementing a strategy.
Source: http://maxwideman.com/pmglossary/PMG_P07.htm
Program management is the process of managing multiple on going projects. An example would be that of
designing, manufacturing and providing support infrastructure for an automobile make. This requires hundreds, or
even thousands, of separate projects. In an organization or Enterprise, Program Management also reflects thebe
Program management is the process of managing a portfolio of multiple ongoing projects. An example would
that of designing, manufacturing and providing support infrastructure for an automobile make. This requires
emphasis on coordinating and prioritizing resources across projects, departments, and entities to insure that
resource contentionthousands, of separate projects. In an organization or Enterprise, Program Management also
hundreds, or even is managed from a global focus.
reflects the emphasis on coordinating and prioritizing resources across projects, departments, and entities to
insure that resource contention is managed from a global focus.
Source: http://en.wikipedia.org/wiki/Program_management
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6. Definitions of Project Management
 Project management is a management approach
concerned with getting the job done, on time, within
budget, and according to specifications
 Project Management is the art and culture of getting
work done
 People responsible for doing something that has never
done before – for people who don’t know what they want
– who must first predict the unknown, make a plan to
complete with the unforeseen, and execute the plan with
too-limited resources that they don’t control and who are
held responsible for the results, even when miracles are
required
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7. Type of Project Management Offices
 Project Management Office
 Program Management Office
 Program Office
 Enterprise Project Management Office
 Center of Excellence for Project Management
 Project Office
PMO’s for program execution – temporary in

nature – dissolved after program completion
 Product Management Office
 “PMO out of the BOX” in six weeks
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8. Google & Yahoo result count
Term
Business PMO 426 88
IT-PMO 610 944
Enterprise PMO 924 1510
Project Office 2,050,000 1,490,000
Program Management 248,000 240,000
Office
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9. Business Program Management
Company Strategy  Company strategy is defined on
Company Goals executive management level
Clearly defined
 Strategy translates into business
measurable goals?
programs (Products & Services)
Business Programs
 Projects are the building blocks
Define & Establish
programs that link to
company goals in the execution of organizational
strategy
Projects
 Project level experience feeds
Projects are prioritized and
executed to achieve
completion of programs
back into programs and strategy
Tasks
 Feedback loop is key – Measure
Execution of project tasks to
achieve project completion
at every level
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10. Business Program Management
 Business drives technology
 Business processes are automated by
technology
 Technology is enabler for business
success
 Technology needs to enable & improve
existing business processes
 Technology not for the sake of technology
 Time to market drives technology solutions
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11. Program Management & Project Management
Program Management – Project Management –
Doing the Right Things Doing Things Right
 Develop and link operational and
 Execute and deliver projects
strategic plans
 Ensure triple constraint is met
 Support & enable strategic
 Deliver business solutions
planning
 Execute governance and
 Maintain and leverage business
control
and operational processes
 Reporting and analysis
(knowledge)
 Operate internal to project
 Define, refine and own project
delivery
delivery processes
 Define and use metrics and
service level agreements
 Operation external to project
delivery
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12. Business & IT PMO Charter
Business - PMO Charter IT - PMO Charter
 CEO level alignment  CIO level alignment
 Tied to CEO performance  Tied to CIO performance
 Company & Enterprise level  IT Project Pipeline
scope
 Technology projects enabling
 Business & product oriented
business
 Drives project pipeline across
 Architecture & development &
business functions
system focus
Cost, Schedule, Quality, Scope


 Business analysis function IT-project managers
 Supports governance processes  IT project management
 Financial responsibility for  Interface vs. business process
capital project cost & benefits thinking
and ROI
 IT processes improvement,
 Business portfolio management SDLC, Architecture
 Project Life Cycle
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13. What are the major differences?
Customer
 Business focus
 Organizational alignment
 Focus of work
PMO
 Customer orientation
 IT Business
Product orientation
 Daily exposure to business concerns and
problems
 Integration of business areas
 Control function
 Business analysis function
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14. Is this your day in the PMO?
 Stakeholders: Business owners, Executive
owners
 New product releases & enhancements
 Sales & Marketing timelines
 Projects driven by product release schedules
 Projects driven by vendors & outside parties
 Newest product features & enhancements
 Product vs. Project
 Revenue and cost implications of projects
 Project prioritization in a “fast to market”
environment
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15. Organizational Alignment
CIO CEO CFO COO
Financial Operations
Technology Business
• Accounting •Customer
• Architecture Product
• Financial • Service
• Solutions • Sales
• Call center
• Systems • Marketing planning
• Operations • Logistics • SOX • Warehousing
• Databases • Governance • Audit • Engineering
• Technology • other controls • Facilities
Blueprint
CIO Research reports – Best practices for PMO’s:

At what level does your company employ a project office ?
2% not answered

39% Corporate – strategic

27% Division

27% functional group/business unit

6% local group or organization within function

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16. Roles and Responsibilities are split
Business PMO Information Technology
 Architecture definition
 Business requirements
 Technology design
 Business process design
 Build technology solution
 Facilitate
Hardware selection
 
Manage project
Develop solution

 Coordinate departments Integrate systems

 Financial tracking Test

  IT schedule
Overall schedule
 (Development /
Budget
operations / Architecture)
 UAT
 Technology selection
 Business projects
 Technology projects
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17. Roles and Responsibilities
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18. The people side
 Project management organizations consist of people
 People are key to deliver projects
 People deliver on tasks in a project (WIFM !)
 Highest risk factor: People
Don’t like the project

Don’t like the PM

...

 Projects create people development opportunities
 Projects can be seen as a major change to people
Change management is often times forgotten

Business side: New processes – perception of automation is

negative
IT: This technology is new – will it prevail? Can it be managed?

 Projects can take the security of a departmental
structure away
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19. The business savvy Project Manager
 Communicator
 Business process understanding
 Business process improvement
 Business requirements
 Product orientation
 Technology understanding
Systems, Architecture, Development

Application, Testing (unit, integration)

 Manages UAT
 Adheres to processes and controls
 PMI certified
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20. Factors for organizational alignment
 Company size
 Maturity and “age” of company
 How close for comfort – what do I know about project
management
 Where does strategic planning happen?
Doing the right things & Doing things right !

 Independence
 Control function
 Visibility into work pipeline
 Project, BAU, Other
 Financial Controls
 Today – SOX ! Control function – Project management
processes enable controls !
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21. Why Project Management Offices are created
 Strategic objectives & goals are not being met
 Major business endeavor
 Historically driven based on need – in IT -Y2K
example (it is all over now!)
 Senior management need for control
 Project failures – schedules out of control
 Cost out of control
 Insufficient information on project status
 No decision framework
 Resource bottlenecks
 Need for better controls & visibility
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22. Motivation for having a PMO
 Are we doing the right things?
 Are we doing things right?
 Where does the money go?
 What are we working on?
Why can’t I have this earlier?

 Are we on schedule with this?
 How does this impact our customers?
 What are the dependencies?
 Which resources can work on this?
 Why is this not done yet?
 Why did we loose this account or customer?
 Lost opportunities!
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23. PMO – the CIO perspective (I)
 Independent & non-political department
 Coordination and management of
customers
 “People People” – not technologists
 Management of expectations & schedule
cost, quality
 Rational framework for delivery of projects
 Balance and scale
 Prioritization of efforts
 Definition of business solution
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24. PMO – the CIO perspective (II)
 How do I exploit & leverage all the data
collected to make informed business
decisions
 Focus on services to the enterprise
 Do not do any business project activities
 Technology is my business
 The CIO is the technology and information
expert
 IT focus – I need to succeed with the
projects that I am responsible for
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25. PMO – the Governance Perspective
 PMO organizational alignment depends on executive
level management setup (CEO-President-CIO-CFO)
 Strategic service department for project execution
 Enabler for cross-functional efforts
 Driver of new enterprise wide products & projects
 Independent check & balance function
Controls around Schedule, Cost, Quality on projects

 Definition of processes & project controls
 Oversight and tracking of budget and spending for
projects
 Real-time objective status reporting
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26. Business PMO Real World Challenges
 Prioritization of programs & projects
 Focus projects on customer needs and impacts
 Keep cost down
 Balance governance and project delivery needs
 Schedule
Fast to market

Competition’s schedules

 Resources & Resource constraints
Business resource constraints

IT resource constraints

 Quality
When you run you stumble more easily

Build quality into the delivery process

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27. Integration of SDLC and PMLC
Bringing all elements together !
SDLC
QA
Business
Integrated
Process
processes
PMLC
Architecture
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28. The tools that help us
A FOOL WITH A TOOL IS STILL A FOOL
MS Project
Project
Life Cycle
Standard
Office Tools
Oracle Financials
Visio
Dashboards
Organizations have implemented tools in hopes of solving business problems, only to discover
that the root cause of the problem ends up being process related.
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29. Bottom Line
 One size does not fit all!
 Where will you place your PMO in your
organization to be setup for success?
 How can your PMO provide value to the
organization?
 What is it you want your PMO to be when
it grows up?
 Are you “Doing the right things”?
 Are you “Doing things right”?
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30. Questions ?
 Did you get value out of the presentation?
 Suggestions ?
 Questions ?
 E-mail: srank1@gmail.com
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