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PMO STARTUP / IMPLEMENTATION

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PMO STARTUP / IMPLEMENTATION

  1. 1. Economic Crisis? Support Organizations, promote Project Management! Panayotis Agrapidis MS Civil Engineer, Senior PM Consultant [email_address] New Project Management Trends - TRN12
  2. 2. Global Economic Crisis and it’s relation with PMBOK® Guide ! <ul><li>Project Management Knowledge Areas. </li></ul><ul><li>Their presence in the World Wide Web (WWW) pages related to “economic crisis” and “financial crisis”! </li></ul><ul><li>Google utilization to reach interesting results! </li></ul>
  3. 3. “ Financial Crisis”, WWW & PMBOK
  4. 4. “ Economic Crisis”, WWW & PMBOK
  5. 5. Other key words related with Project as well with Organization’s Management. <ul><li>Financial Crisis: Information is mentioned in about 88% of the pages on December 2008 & in the 92% of the pages in June 2009! Control in 13% & 14% , Governance in 4,5% & 4,5%, Sustainability in 2,5% & 3% & Coordination in only 2% & 2% ! </li></ul><ul><li>Economic Crisis: Information is mentioned in only 9% of the pages on December 2008 & in the 23% of the pages in June 2009! Control in 7% & 18%, Governance in 2% & 2%, Sustainability in 1,5% & 1,5%, Coordination in less than 1% & 1% ! </li></ul>
  6. 6. Information?
  7. 7. Conclusions that help us Start! <ul><li>STRENGHT : The most mentioned words are Time and Information (more, timely, share, find, reliable, lack of, need for, correct, effective) ! ( + Cost, Risk, Quality, Communications, Control) </li></ul><ul><li>WEAKNESS : The less mentioned Coordination and the word Management accompanying the words with which they define PMBOK® Guide Knowledge Areas (e.g. Integration Management, Scope Management)! </li></ul>
  8. 8. Acquiring investments for PM in an environment with lack of resources! <ul><ul><li>Top-Down Strategy + Step-by-Step approach : </li></ul></ul><ul><ul><li>Capture and satisfy critical Top Management needs. </li></ul></ul><ul><ul><li>First results to be achieved the earliest possible. </li></ul></ul><ul><ul><li>Minimum utilization of resources. </li></ul></ul><ul><ul><li>Step by step approach. </li></ul></ul>
  9. 9. A . Capture and satisfy critical Top Management needs. <ul><li>Establish a direct contact with Top Management. </li></ul><ul><li>Have clear ideas on what we are going to propose and how propose it. </li></ul><ul><li>Invest on Time Management! </li></ul><ul><li>Stay tuned to our basic principles: </li></ul>
  10. 10. <ul><li>In a three to four months period we must achieve tangible results! </li></ul><ul><li>Each month we must produce specific outputs, according to the relative milestones foreseen in our Project’s Plan! </li></ul><ul><li>Top Management must be assured that the situation is always under control! </li></ul>B . First results at the earliest possible .
  11. 11. C. Minimum utilization of resources. <ul><li>Utilize resources that will create the minimum cost or no additional cost to our Organization. </li></ul><ul><li>Create “informal” structures. </li></ul><ul><li>Only exception: “strong” PM software to be utilized as a basis for the development of our “ Strategic Project Management System ” (SPMS). </li></ul>
  12. 12. D. Step by step approach - S.MA.R.T. <ul><li>S tatic : Trial data collection from each source, in any format and according to availability. </li></ul><ul><li>Ma nual : Specific data, in fixed format collected periodically from each source and centrally inserted to the “Strategic PM System”. </li></ul><ul><li>R emote : Each Sector/Division/Department collects and inserts its data to the System. </li></ul><ul><li>T imeless : Each source has online access. </li></ul>
  13. 13. Necessary conditions for sustainable success. <ul><ul><li>Strategic Project Management Team creation. </li></ul></ul><ul><ul><li>Don’t be afraid to answer yes at the question: can we apply PM tools and methodologies for internal processes, Production Management, Marketing, etc.? </li></ul></ul><ul><ul><li>Involve as much as possible company’s sectors, especially Accounting and Budgeting sector. </li></ul></ul><ul><ul><li>Always focus on the next steps. </li></ul></ul>
  14. 14. <ul><li>Invest a leader with prestige and respect. Proven experience in Project Management is a must. </li></ul><ul><li>Create a small team of employees, with “access” to Organization’s key positions and data and in which company is relying and investing. </li></ul><ul><li>Position the team directly under CEO, supporting Board of Directors! </li></ul>A. Strategic Project Management Team creation.
  15. 15. B. Don’t be afraid to answer yes at the question: can we apply Project Management tools and methodologies for internal processes, Production Management, Marketing, etc.?
  16. 16. <ul><li>Our Strategic PM Team will evolve gradually to a Strategic PMO . Having to succeed in addressing Top Management needs, while in parallel cover Sector/Division/Department Managers needs, SPMO must become Organization’s Central Nervous System , through which information is circulating in a proper and timely manner. </li></ul>C. Involve as much as possible company’s sectors.
  17. 17. C. Unify the various worlds inside the Organization.
  18. 18. <ul><li>Top management, utilizing PM Tools and Methodologies gradually: </li></ul><ul><ul><li>will start controlling directly how Organization’s Strategy has been translated and executed; </li></ul></ul><ul><ul><li>will become familiar in preparing detailed Strategy’s execution plans; </li></ul></ul><ul><ul><li>will be in the position to simulate the impact of proposed changes in Strategy! </li></ul></ul>C. Demonstrate the positive economic impact of investing in PM.
  19. 19. D. Always focus on the next steps . <ul><li>Our effort is a Project with no possibility to fail. </li></ul><ul><li>Trace a road map with precise time and scope milestones. </li></ul><ul><li>Satisfy at least one major Top Management’s need or group of needs at each milestone. </li></ul><ul><li>Understand where the thinks are going and address efforts accordingly. </li></ul><ul><li>Sell more services = Increase of resources. </li></ul>
  20. 20. Not just words. Support your argumentation with specific case studies .
  21. 21. ELLAKTOR ASPROFOS <ul><li>Hellenic Petroleum Company - largest oil refining company in Greece / Small Projects Department of Aspropyrgos Refinery: </li></ul><ul><li>PM system for projects estimation, planning & follow up. </li></ul><ul><li>A virtual PMO has been established involving all employees. </li></ul><ul><li>Ministry of Public Health – Managing Authority of EU Cohesion funds: </li></ul><ul><li>PM system for projects planning & follow up. </li></ul><ul><li>Portfolio Management System for Strategic Evaluation & Budget follow-up according to program rules (n+2). </li></ul><ul><li>A virtual PMO has been established. </li></ul>
  22. 22. INTRAKOM <ul><li>Intracom Telecom - Greece's largest multinational provider of telecommunications products, solutions and services : </li></ul><ul><li>Unified PM system’s creation satisfying Portfolio, Program and Project Management needs across the whole company, including Financial Planning and Accounting Division. </li></ul><ul><li>Planning and follow up of external & internal projects, and operations – preparation of global resource allocation plans. </li></ul><ul><li>Budget preparation and follow up, giving the possibility to the Top Management to drill down and discover group of projects, activities or resources that are creating budget deviations. </li></ul><ul><li>Asprofos - the major Greek engineering firm: </li></ul><ul><li>Successful PMO creation, providing support to all Divisions. </li></ul>
  23. 23. <ul><li>Ellaktor - largest Greek construction company / IT Division : </li></ul><ul><li>PM system’s creation in order to prepare and follow-up IT Budget. </li></ul><ul><li>System’s utilization to coordinate IT projects and personnel. </li></ul><ul><li>A virtual PMO has been established in a three months period. </li></ul><ul><li>Hellenic Power Company - the major player in the Greek electricity market / Thermoelectric Plants Division : </li></ul><ul><li>PM system’s creation in order to prepare and follow up Five Years Plan, Annual Budget and the ongoing projects. </li></ul><ul><li>Has been adopted a Top-Down Strategy and followed a Step-by-Step approach . In the first phase we have created the system in a way to treat data at a Strategic level. The results were excellent and were achieved in a two months period. Actually we are ready to proceed creating a formal PMO. </li></ul>
  24. 24. Athens – Psychiko – Ano Liosia – Neo Psychiko Attica Region Municipalities . <ul><li>Municipalities represent a particular type of Organization; </li></ul><ul><li>We have started utilizing PM Tools and Methodologies for their construction projects, supporting their Technical Division but very soon became clear that only a holistic approach could represent a real solution for them; </li></ul><ul><li>A virtual PMO and a Strategic PM System have been created in order to prepare and follow up the five years Strategic Plan and the Annual Budget, involving all Divisions . Municipalities have completely changed the way to prepare and follow-up their Annual Budget, passing from a reactive to a pro-active way; </li></ul><ul><li>Next step was to increase in detail planning and follow up of projects and procurement, involving Divisions in collecting and directly inserting data to the system. </li></ul>
  25. 25. Strategic PMO at Greek Council of Ministers level, supporting Prime Minister’s Office! <ul><li>Between 1996 and 2004 Greece faced four major challenges with firm deadlines: </li></ul><ul><ul><ul><li>realign its economy according to European Union standards in order to adopt Euro; </li></ul></ul></ul><ul><ul><ul><li>optimize ministries coordination in order to complete all projects financed by EU; </li></ul></ul></ul><ul><ul><ul><li>organize the Greek Presidency of the Council of the European Union; </li></ul></ul></ul><ul><ul><ul><li>organize the Olympic Games! </li></ul></ul></ul><ul><li>An Organization facing a complex and critical situation is open to experiment new and not well-established practices. </li></ul>
  26. 26. Strategic PMO at Greek Council of Ministers level, supporting Prime Minister’s Office! <ul><li>PM methodologies and tools had been adopted and a “Strategic” PMO had been established at Council of Ministers level, supporting Prime Minister’s Office. </li></ul><ul><li>Data of approx. 54.000 Public Contracts had been collected from 7.500 public offices and had been managed in a homogeneous and efficient way. </li></ul><ul><li>Credible and timely reports , based on reliable data had been produced for the Prime Minister, the Council of Ministers as well for almost the totality of Public Organizations. </li></ul><ul><li>Credibility gained at the Council of Ministers, despite the disputes created inside and outside the government. </li></ul>
  27. 27. Strategic PMO at Greek Council of Ministers level, supporting Prime Minister’s Office! <ul><li>The personnel involved at all levels perceived the feeling that is part of an integrated work process. </li></ul><ul><li>The top-down, bottom-up communication had become more direct and precise. </li></ul><ul><li>Became possible to evaluate each organization, sector, category of projects and geographic area while at the same time comparing them with other similar ones. </li></ul><ul><li>Transparency and efficiency in planning and execution of public contracts had been increased. </li></ul><ul><li>Disputes on data reliability had been eliminated reserving Council’s time for discussions of broader strategic issues. </li></ul>
  28. 28. Strategic PMO at Greek Council of Ministers level, supporting Prime Minister’s Office! <ul><li>Government Projects expenditure program could be measured and monitored continuously at an aggregate level. </li></ul><ul><li>Prime Minister’s briefing on the handling of issues had been supported. </li></ul><ul><li>At Council of Ministers level, support for the development of Council forward agenda had been achieved. </li></ul><ul><li>The legislative work of the government had been supported in the law definition phase as well as how its application was evolving. </li></ul><ul><li>The whole effort succeeded because of the personal commitment of the Prime Minister and the positioning of SPMO under his direct supervision. </li></ul>
  29. 29. Time is on my (our) side! <ul><li>Any Organization, especially during this difficult period, perceives the necessity to produce changes in its processes. </li></ul><ul><li>To address change, Organization must set Strategic Goals and prepare detailed Strategic plans, which must be based on sound data, taking into account Time . </li></ul><ul><li>Turn Strategic plans into practice means continuous data collection and elaboration, in other words correct & reliable & up-to-date Information . </li></ul><ul><li>PMO must become the Central Nervous System of the Organization and positioned directly under Top Management. </li></ul><ul><li>Organization will take advantage of a more effective. Management and a better Coordination and will be able to respond quickly and effectively to internal and external change drivers. </li></ul>
  30. 30. Q & A THANK YOU
  31. 31. Contact Information <ul><li>Name: Panayotis Agrapidis </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Phone: 0030 210 6728488 </li></ul><ul><li>Session Number TRN12 </li></ul>

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