E pmo governance 2013

ePMO Governance
Slide 1
By Ashok KumarJune 2019 Slide 1
By Ashok Kumar
© RASS Touch Limited
by
Ashok Kumar
(ePMO Consultant and
Director at RASS Touch Ltd, UK)

ePMO Governance
Slide 2
By Ashok Kumar
About the presentation
ePMO is an abbreviation of “Enterprise PMO”.
This presentation outlines the framework for setting
ePMO and achieving successful ePMO Governance.
For consulting services for setting up of ePMO function or
improving the ePMO governance, organizations may
contact the author of this presentation. The contact details
are given at the end of this presentation.

ePMO Governance
Slide 3
By Ashok Kumar
Target Audience
This presentation targets PMO, Program / Project
Management professionals and all others who have
stake in setting Enterprise PMO and its operations.
This presentation is designed to be viewed i.e. not
designed to be presented by a person who verbally
explains the slide content. Therefore, slides have more
than normal text content. Attempt has been made to
explain briefly using simple language and the diagrams.
Viewers are requested to send feedback to email
address mentioned at the end of this presentation.

ePMO Governance
Slide 4
By Ashok Kumar
Presentation’s Organization
This presentation is organised into the following
sections
● ePMO – Setup and Governance
● ePMO - Controls
● ePMO – Tool Box
● Methodologies
● ePMO Reports
● Process Improvement
● ePMO Maturity Levels
● Portfolio Management
● Author Contact details

ePMO Governance
Slide 5
By Ashok Kumar
ePMO
This section of presentation talks about ePMO
setup and Governance

ePMO Governance
Slide 6
By Ashok Kumar
ePMO?
ePMOs in different organizations are most likely
to be different in –
● The position in the organizational structures
● Its own functional structure
● The Mandate created with
● Scope of authority and responsibilities
● Influence on the organizational change
● Role in success of Programs and Projects
● Infrastructure and tools at their disposal
● and so on …
Therefore, the ePMO described in this
presentation is a generic one and may change
significantly from the ePMO in your
organization.

ePMO Governance
Slide 7
By Ashok Kumar
ePMO v/s other PMOs
ePMO is an enterprise level function and
ideally it should be treated similar to other
corporate management functions such as
Strategic Planning, Finance, HR, Procurement
etc.
The scope of ePMO’s authority and
responsibilities span across the enterprise.
However, as a Business unit may have its own
HR, Finance and Procurement functions, it may
have offices for large and complex programs
and projects. These offices are called PMOs.
There is a possibility of responsibilities of
ePMO overlapping with PMOs. If possible,
overlapping should be avoided.
Business Unit
Finance, HR,
Procurement etc.
Corporate office
Strategic Planning
Finance, HR, Investors
Relation etc.
ePMO
PMO
PMO
Progr
am
Project
ePMO can be
independent
of Corporate
office
Progr
am
Project

ePMO Governance
Slide 8
By Ashok Kumar
Is ePMO adding value to you?
ePMOs exist to add value to services it provide to its customers. For
ePMO to be successful it should give a feeling to its customers that it’s
embedded in the systems critical to its customers.
How would you as a customer know that ePMO is adding value to you?
Here are some quick indicators-
● How often do you contact someone in ePMO?
● When did you last time seek support from ePMO?
● Does uninformed absences in ePMO bother you?
● How often you refer the material created by ePMO?
● Have ever felt that without support from ePMO you can’t win?
● How often do you feel not relying on processes provided by ePMO?
● Are you happy providing status reports to ePMO?
● Has the training you got from ePMO helped you?
● Would you be able to justify more investment needs of ePMO?
● and so on …

ePMO Governance
Slide 9
By Ashok Kumar
The Context ?
To understand ePMO Governance, one
must understand the context in which
ePMO function is likely to exist and
operate.
The diagram on the right hand side depicts
the Business functions are likely to deal
with ePMO.
Depending upon the organizations specific
needs, business functions interacting with
ePMO may vary. Most ePMO stakeholders
come from these business functions.
BU
Business
Units
GE
Governmnt
& External
organisatn
FA
Finance
& Accounts
CP
Corporate
Planning
ePMOPR
Procureme
nt
QA
Project
Quality
Assurance
HR
Human
Resources
IT
Information
Technology

ePMO Governance
Slide 10
By Ashok Kumar
ePMO Governance?
Governance is all about decision-making and
oversight activities.
ePMO Governance concerns about the
activities performed for efficient management
and achieving the benefits (financial and non-
financial) from the outcome of Programs and
Projects executed to deliver the goals of
Business Strategy and Business Plans.
Business
Strategy
&
Strategic
Plan
Business
Plans
&
Business
Change
Plan
ePMO
Governance

ePMO Governance
Slide 11
By Ashok Kumar
ePMO Scope?
Before ePMO Governance can operate
effectively, a robust ePMO Function
needs to be setup and made functional.
The diagram on the right hand side shows various
sections of the ePMO function for a large organization.
1. ePMO strategy in line with Business Strategy,
2. ePMO Strategic Plan to execute ePMO strategy,
3. Projects Portfolio for optimization of Benefits
4. ePMO policies, Program / Project management
processes, Controls, Guidelines and Standards
5. Program / Project Controls
6. Program / Project performance reporting
7. Infrastructure and Tools for management of Programs
and Projects
8. Skilled resources to execute programs and projects,
9. Financial Budgets and actual Costs,
10. Compliance to government rules and regulations
11. Training and support to Programs / Projects.
ePMO
Projects
Portfolio
Projects
Performa
nce
Reporting
Project
Controls Training
and
Support
ePMO
Strategic
Plan
Gov. Rules
&
Regulations
ePMO
Budget
and
Costs
Skills
Resource
Allocation
Infrastruc
ture and
eTools
ePMO
Strategy
ePMO
Policies
Procs,
standard

ePMO Governance
Slide 12
By Ashok Kumar
Boards /
Committees
- Project Approval
- Change Control
- Vendor Selection
- Strategy Approval
Project Quality
Assurance
- Project Process
- Project Controls
- Reviews and
Approvals
- Performance
- Status ReportingePMO Roles
• PMO Head (VP)
• Strategy Manager
• Portfolio Manager
• Process Manager
• Controls Manager
• Resource & Skills
Manager
• Training Manager
• Reporting Manager
Business Units
• Business Unit Head
• Sponsors
• Business Case
• Prog Office
• Proj Office
• Program Mgnt
• Project Mgnt
• Project Team
EPM Tools
- Portfolio Management tool
- Project Schedules tool
- Documents Management tool
- Configuration mgnt tool
- Risks Management tool
- Project Status Reporting tool
- Resource Skills Allocation tool
- Methodology & Processes tool
- Emails, Meetings, forums tool
- Office Tools (MS Word, Excel,
IT
ePMO
Projects
Portfolio
Resource
Skills
Allocatn
Processes
&
Support
Project
Controls
&
Reporting
PMO
Strategy,
Projects
&
Training
Corporate Office
• Business Strategy
• Business Change
Plan
• Business Case
• Regulation/ License
• Fin –Budgets,
Costing
• Procurement,
Vendors
• HR - Hiring / Time a/c
ePMO
Governance
Interfaces
Hover
over links
& comm.
Arrows for
further
details

ePMO Governance
Slide 13
By Ashok Kumar
Three factors critical to the
success of ePMO Governance
1. Proper setting up of ePMO Function
An ad hoc or badly set ePMO is unlikely to result in effective
governance. This must be achieved before next factor comes into
play
2. Effective Administration of controls
Controls generally remain weak unless adequate training and support
is provided. If controls are not enforced, governance would surely be
weak.
3. Continuous improvement of ePMO’s services
ePMO should continuously respond to the competition that
organization faces and its growth plans.
ePMO
Governance
2 1 3
Take any one out and
Governance would fall

ePMO Governance
Slide 14
By Ashok Kumar
First thing first
Foundation of ePMO Governance?
As a building structure should have strong foundation,
ePMO should have a strong Strategy for governance.
Without a Strategy ePMO Governance is likely to be
reduced to fire fighting and a game of dice.
Therefore, the first thing that ePMO must do is to create
a Strategy and a Strategic plan to execute the Strategy.
ePMO
Governance
ePMO
Strategy

ePMO Governance
Slide 15
By Ashok Kumar
ePMO Strategy is based on Organization’s
Business Strategy. In absence of business strategy,
it is based on senior management’s vision and
expectations.
A committee consisting of ePMO Head and senior
management may be constituted to review and
approve ePMO Strategy. Changes to ePMO Strategy
must be controlled.
ePMO
Strategy
ePMO Strategy?
ePMO Strategy is all about creating
ePMO’s Vision and Mission statements
and setting of Goals and a plan to
deliver governance.
Business
Strategy
Mission GoalsVision
Senior
Mgmnt
Regula-
tions

ePMO Governance
Slide 16
By Ashok Kumar
ePMO’s Strategic Vision?
ePMO’s Strategic Vision is the visualisation of ePMO’s role in
realising the organisation’s business Strategy. It should reflect
the expectations of senior and top management as stakeholders.
In reference to ePMO, realisation of the organisation’s business
Strategy is measured by successful delivery of Programs and Projects
and after the delivery, measuring the financial and non-financial benefits
or value addition by the outcomes of Programs and Projects over a
period. All this should be reflected in ePMO’s Strategic Plan.
An example of ePMO’s Strategic Vision:
Our organization sees ePMO as an integral part of our Business
Strategy. We see ePMO as a champion of the best practices for
Program and Project management and as a critical agent to enable and
support the execution of business initiatives as successful programs and
projects.

ePMO Governance
Slide 17
By Ashok Kumar
ePMO’s Strategic Mission?
ePMO’s Strategic Mission is all about identifying the
intents or needs to be focussed to realise ePMO’s
Strategic Vision.
Example of ePMO’s Strategic Mission:
 Needed Tools, training and support is provided to Programs and Projects
to complete in time, within budget and with desired quality of deliverables
 Programs and Projects are managed through laid down processes and
tools
 Processes are continuously improved so that desired Project
Management maturity level is achieved
 Program and Project management infrastructure and tools are
maintained and upgraded to achieve desired level of availability and
performance
 Etc.
ePMO’s
Strategic
Vision
ePMO’s
Strategic
Mission

ePMO Governance
Slide 18
By Ashok Kumar
ePMO’s Strategic Goals?
ePMO’s Strategic Goals specify what needs to be
accomplished in short and long term to realise ePMO’s
Strategic Vision and Mission.
Example of ePMO’s Strategic Goals:
Short term goals
 Set up modern ePMO Function and Staff with skilled resources
 Set EPM Tools and infrastructure. Provide and training on project management
functions and tools used.
 Develop ePMO policies and methodology, processes, guidelines standards for
Programs & Projects management)
 Setup Portfolio Management system
 Develop Trainings and Support material
 etc
Long term goals
 Develop Resource Skills database
 Develop system to measure extended benefits achieved by Programs and Projects
 Develop Process performance control system
 etc
ePMO’s
Stategic
Goals
ePMO’s
Strategic
Vision
ePMO’s
Strategic
Mission

ePMO Governance
Slide 19
By Ashok Kumar
ePMO’s Strategic Plan?
PMO’s Strategic Plan sets up a robust ePMO
Function and delivers ePMO governance. It
identifies Programs and Projects to achieve
ePMO’s Strategic goals. It’s a high level plan
document.
ePMOs’ Strategic Plan is based on ePMO
Strategy, Corporate’s Business strategic plan,
Business Units Plans, Business Change Plans
if any.
Business
Strategic
Plan
Business
Change
Plan
ePMO
Strategy
Business
Strategy
ePMO
Strategic
Plan
Business
Units Plans

ePMO Governance
Slide 20
By Ashok Kumar
An example of outlines of ePMO’s
Strategic Plan
1. A project to define ePMO function structure, describe roles and
responsibilities and hire skilled resources
2. A Program for
• To select, acquire, install and configure EPM Tools
• To acquire and tailor or develop methodology, processes,
guidelines, standards, forms, workflows, checklists etc.
• To define project controls and reporting
• Integrate EPM tools and processes
3. A project to acquire Portfolio Management system with benefits
accounting
4. A project to develop Resource Skills database
5. A project to setup Training infrastructure and training material
6. A project to develop and implement process performance
improvement
7. And so on ….
Plans have
associated cost,
risks and benefits

ePMO Governance
Slide 21
By Ashok Kumar
Executing ePMO’s Strategic Plan
This is the most important step and it requires
● Involvement of other Business Units
● Sponsorship of ePMO’s Programs and
Projects by Corporate office or Business
Units
● Business Case approvals
● Release of resources from Business Units
● And finally Executing Programs and Projects
Executing
Strategic plan
is the toughest
work

ePMO Governance
Slide 22
By Ashok Kumar
Difficult and Easier things
To do in ePMO Governance
Difficult things to do:
● Selecting EPM Tools
● Improve Process Performance
● Process Compliance
● Measure Extended Benefits
● Maintain Skills data
● ……
Easier things to do:
● Training to use EPM Tools
● Resource Allocation
● Status reporting
● Project Quality Assurance
● …..

ePMO Governance
Slide 23
By Ashok Kumar
Controls
This section of presentation talks
about ePMO Controls

ePMO Governance
Slide 24
By Ashok Kumar
ePMO - Project Controls
Controls are selected decision points embedded
in policies, processes and workflows. The criteria
for the selection of decision points to be
considered as Controls are performance
indicators i.e. if a decision impacts performance
indicators, that decision point becomes a control.
However, there may be case of Controls
associated with manual decisions that are not part
of documented policies, procedures and work
flows.
If you drive car, you
know controls display
process status that
you use to apply
correction to your
actions

ePMO Governance
Slide 25
By Ashok Kumar
Identifying Controls
The easiest way to identify controls is
documenting them in process management
documents i.e. in documents that describe
policies, procedures and work flows.
For undocumented processes Controls can be
identified through discussion sessions. Business
Analysts are most suitable role for identifying
controls.
While driving, taking
action based on
intuition is an example
of a Control not
embedded in
documented processes

ePMO Governance
Slide 26
By Ashok Kumar
When to start Controlling?
In Industrial Dynamics open ended system
model, a Control can be defined having two
variables 1) The level, 2) The rate.
In terms of cost control, the level variable will
measure the to-date expenses and the rate
variable will measure how fast the expenses are
increasing.
For effective control both level and
rate variables must be considered for
raising triggers.
For example Cost controls get enabled when
50% of Budget is used.
What to Control?
The following are some of the decision
events that may trigger a Control:
● Approvals
● Change in Status flags
● Compliance
● Deviations
● Conflicts
● Allocation
● Obligations not met
● High Risks events
● etc.

ePMO Governance
Slide 27
By Ashok Kumar
Control Action Cycle
The diagram bellow shows a Control’s Cycle
A Process
runs
(approving an
expenditure)
A decision event
occurs
(A doc submitted
for Approval )
Approver compares actual
status with desired status
(Expenditure is within
approval limit )
Comparison results
in a decision
(approve or reject))
The effectiveness of the control will depend upon the approval limits at different management
levels of the approver. Setting of this limit is called setting Control parameters.
The Control cycle shown above is an instant action cycle. In other cases control cycle may
take several days or even more. Take the example of controls activated based on periodic
status reports such as project execution delays acted upon when weekly project status report
is available to project manager.

ePMO Governance
Slide 28
By Ashok Kumar
Documenting a Control!
A Control should describe the following
The running process with in which control action happens
The event that triggers a decision making process
Data required by the decision making process
Decision criteria
Actions resulting from the decision
Controls are generally not documented as independent entity. Instead Controls are normally
documented as part of processes and work flows.
However a list of controls to be monitored should be maintained and
use the process audit for compliance.

ePMO Governance
Slide 29
By Ashok Kumar
Control’s Automation?
Most ePMOs depend heavily on EPM Tools and the processes available from
these tools. A number of Controls would have already been embedded into the
software applications. For embedding the remaining Controls will require
changes to the software applications and it may always not be possible. Also the
cost of change may not be attractive from Cost/Benefits point of view.
In any case not all Controls can be automated. Also the embedded Controls may
differ in functionality and ePMO has to live with those difference. The first
casualty is that ePMO can’t implement its strategic plan without compromises.
Now reality sets in and ePMO has to rely on manual processes for enforcing
Controls.
Problems of integration of tools is another reason for partly automating the
Controls. My suggestion would be to perform a detailed requirements analysis
by a Business Analyst to understand what can be achieved and what can’t be.

ePMO Governance
Slide 30
By Ashok Kumar
Some of the
process areas that
embed the Controls
• Risk Management process
• Documents Management process
• Scope Management process
• Estimation Process
• Tasks Status Tracking process
• Engineering Designs
• Resources Allocation process
• Contracts Management Process
• Quality Assurance Process
• Stakeholders Management Process
• Communication Management
• Change Management Process
• Project Planning Process
Project
Controls
areas
Estimatio
n
Process
Project
Schedule
Status
Tracking
Engineer
ing
Designs
Contracts
Manage
mnent
Risks
Manage
ment
Quality
Assurance Change
Manage
ment
Project
Planning
Communi
cation
Documnt
Control Scope
Manage
ment
Time
sheet
Stakehol
ders
Mgnt
Resource
Allocation

ePMO Governance
Slide 31
By Ashok Kumar
How to enforce Controls?
As most Controls are embedded with in processes, the most effective ways to assure that
controls effective and functioning are as follows:
● For changes, process review should include review of control requirements
● Periodic compliance audit are done and corrective actions taken
● Periodic status reports also provide opportunities to know if control are working
● Status reports should have metrics that measures the indicators on controls status
● EPM tools play critical role in enforcing controls
● Process Automation also help Control’s enforcement
● Local PMOs may play important role in enforcing controls
● Periodic review of Control parameters is very much desired
● Policies may also be used to set values for Control parameters
● Checklists also help that controls are obeyed

ePMO Governance
Slide 32
By Ashok Kumar
ePMO Tool box
This section of presentation talks about
software tools used by ePMO

ePMO Governance
Slide 33
By Ashok Kumar
ePMO Tools
Integrated EPM v/s Independent or partly integrated Tools
Selection of proper Program and Project management tools is very
critical to the success of governance. It’s a serious exercise and must
be done formally. Engaging outside specialist can be very effective for
making the correct choices.
The some of the factors that decides the choice are as follows:
• Look ahead horizon i.e. short term or long term
• Limitation on the availability of funds
• Size and complexity of programs and projects
• Project Management environment i.e. maturity level
• Individual user’s choices
Wrong
choice can
be very
costly.
ePMO’s Strategic plan if any may further guide the selection of the Choice. Generally
SMEs prefer independent tools and large / complex organizations prefer EPM tools

ePMO Governance
Slide 34
By Ashok Kumar
Get the best of out of ePMO Tools
The following will ensure getting the best out of using Tools.
● Develop training infrastructure along with acquiring tools
● Use Qualified Trainer to impart training
● Provide required user guides, standards etc online
● Provide adequate hands on training on using Tools
● Create or Use available eTraining for self learning by users
● Create user forum to discuss problems and share solutions
● Provide adequate support if possible real time
and finally
● Include these things in ePMO’s Strategic Plan

ePMO Governance
Slide 35
By Ashok Kumar
List of ePMO Tools
• Portfolio Management - PlanView, Jira
• Project Schedule development - MS Project Prof, Primavera
• Documents Management - LiveLink, SharePoint
• Configuration management - IBM Rational,
• Testing Management – Qtest, TestPad
• Requirements Management – Reqpro, Rational Doors
• Risks Management - SAS, Clarity
• Project Status Reporting tool - MS EPM, Primavera
• Resource Skills Allocation – MS EPM, PlanView
• Methodology & Processes – BPM, JIRA
• Emails, Meetings, forums – MS Office Tools
• Office Tools (MS Word, Excel, PPT )

ePMO Governance
Slide 36
By Ashok Kumar
Methodologies
This section of presentation talks about
Methodologies used to manage projects.

ePMO Governance
Slide 37
By Ashok Kumar
Project Management Methodologies
The following are the commonly used
methodologies based on the following.
● Prince2
● PMI
● Waterfall
● Agile
● Hybrid approach
● Custom built
PMI
PRINCE2
Agile
Watrefall

ePMO Governance
Slide 38
By Ashok Kumar

ePMO Governance
Slide 39
By Ashok Kumar
PMI’s Light weight
Project Management
Methodology Tailored for
small / Medium companies

ePMO Governance
Slide 40
By Ashok Kumar
Considerations for selecting
The Project Management Methodology
● An organization is free to select a methodology and tailor it to suite its needs.
● Often the selection is region specific. For example – USA, Saudi Arabia use PMI, UK
uses Prince2 and Agile, some countries use waterfall etc.
● An organization can also create a hybrid of two or more methodologies. However, it
should be avoided as maintaining such methodology is difficult.
● A methodology may suite an specific organization culture more than others. Tight
controlled organizations may prefer Prince2 while organizations with flexible
management may prefer Agile approach
● Size of an organization also affects the choice. Small organizations tend to select Agile.
● Availability of Budget is also a consideration. Following Agile approach is less costly
than using PMI or Prince2.
● Industry type also affects the selection. Construction Industry favours PRINCE2 or PMI
over Agile which is the preference of Software development companies.
● Availability of software tools to support the methodology.

ePMO Governance
Slide 41
By Ashok Kumar
Using more than one Methodology
Ideally an organization should use as many methodologies as needed. However, there
are pros and cons of using more than one methodologies
An enterprise may be dealing in more than one type of products and services such as
Building Construction and Software development. This enterprise may prefer to use
Prince2 for Building Construction and Agile / Scrum for software development.
Sometimes an organization may have facilities in more than one countries and may
use the methodology preferred in that country so that the appropriate skills supply is
available.
There is also a possibility that an organization may use the single methodology for all
types of projects and in all locations. In such situations a methodology may be tailored
and offer flexibility.
The disadvantage of using more that one methodology is more investment is needed
and more effort is needed on process improvement. Collating data for reporting also
needs changes to reporting system.
.

ePMO Governance
Slide 42
By Ashok Kumar
Example of PM Procedures
Procedures: Initiation, Estimation, Risk Assessment …
Guidelines: Authoring, Planning, Reviewing, Reporting …
Standards: Authoring Tech Docs, Project Schedule Dev …
Templates: Business case, Requirements, Project Plan …
Forms: Initiation, Resource request, procurement request …
WorkFlows: Docs review / approval, Leave Approval …
Check Lists: Doc Review Checklist, Project Closure Checklist …
Ppts: Trainings, Meetings, Management presentations …

ePMO Governance
Slide 43
By Ashok Kumar
Examples of Project Artifacts
 Project artefacts
 Policies/procedures to manage artefacts
 Define workflows, roles
 Manage documents numbering
 Manage check-in/checkout operations
 Manage archiving of closed projects
 Comply with data retention, disaster recovery
 Provide training to users for using document
libraries
 Etc. ….

ePMO Governance
Slide 44
By Ashok Kumar
ePMO Reports
This section of presentation talks about reports that
ePMO creates for senior management and reports
that Program / Projects creates for ePMO and
their own use.

ePMO Governance
Slide 45
By Ashok Kumar
ePMO reporting
ePMO deals with the following groups of reports
● Status Reports received from Programs / Projects
● Program / Project performance reports
● ePMO’s Performance Reports
● ePMO’s Project Portfolio Reports
Most ePMOs today use EPM Tools that provide a number configurable
reports. Not all required reports can be created by EPM tools and creating
reports manually remains a challenge to ePMO. Also not all tools used by
ePMO can be integrated. Data is still to be extracted and analysed manually.

ePMO Governance
Slide 46
By Ashok Kumar
Project Level Status Reports
• Overall RAG
• Progress at milestone and Task level
• Earened value analysis SPI / CPI
• Financial analysis reports using Costs, Effort etc
• Estimation reports – Effort, cost and Schedule
• Resources level performance reports
• Scope change impact reports
• Schedule change impact reports
• Quality measurements reports
• Compliance Audit reports
• Risks New/Mitigated / Response taken if occurred
• Benefits realization during project life
• Lessons captured

ePMO Governance
Slide 47
By Ashok Kumar
ePMO Performance Reports
• Budgets, Costs, Efforts, Duration analysis for projects started, running
and closed
• Change requests / received / accepted with impact and estimates
• Project wise Budget / actual spend / benefit realized
• Resources allocation requested received/ complete
• Skills shortage, under skilled report
• Support requests received / resolved/ pending – number and cost
• Complaints received/resolved / pending – number and cost
• Trainings conducted / training performance achieved
• Ad hoc work
• Ad hoc reports requested/ generated
• Recruitment support
• Resource appraisal support

ePMO Governance
Slide 48
By Ashok Kumar
Project Portfolio Status Reports
● Overall RAG – Current/Previous
● Progress in %
● Financial/Costs/Effort / Cost RAG
● Resources/Infrastructure RAGs
● Scope/Schedule/Quality/Risks RAGs
● Benefits realization RAG

ePMO Governance
Slide 49
By Ashok Kumar
Process Improvement
about Process Improvement approaches

ePMO Governance
Slide 50
By Ashok Kumar
Process improvement
(Normally managed under Project Quality Assurance)
There are several process improvement approaches to use -
● Six Sigma
● Lean management
● CMMI
● Agile
● ISO9000

ePMO Governance
Slide 51
By Ashok Kumar
Six Sigma
Method
Six Sigma is a robust
methodology for problem
solving. If used in the right
manner, Six Sigma
improvements are bullet-
proof and they give high
yielding returns.
Six Sigma is a defined and
disciplined business
methodology to increase
customer satisfaction and
profitability by streamlining
operations, improving
quality and eliminating
defects in every
organization-wide process.
The diagram on the right
hand side shows Six
Sigma methodology.

ePMO Governance
Slide 52
By Ashok Kumar
Lean management
The core idea of lean management is to
maximize customer value while
minimizing waste. Simply, lean means
creating more value for customers with
fewer resources.
A lean organization understands
customer value and focuses its key
processes to continuously increase it.
The diagram on the right hand side
shows five principles of Lean
Management.

ePMO Governance
Slide 53
By Ashok Kumar
Agile Management
Agile is all about teamwork, transparency, and technical excellence.
Agile way of working has four core values
1. Focus should be more on individuals and interactions instead of processes and tools
2. Working software is more important that comprehensive documentation
3. Customer collaboration is more vital than contract negotiation
4. The process should respond to change rather than follow a plan
It uses 12 principles
1. Deliver customer satisfaction by delivering valuable software continuously
2. Always accept change of requirements matter how early or late in the project
3. Deliver software that works within a shorter timescale
4. Both project and business must work closely together daily throughout the duration of the project
5. Information is best transferred between parties in face-to-face conversations
6. Motivate people to build a project by creating an environment of appreciation, trust, and empowerment
7. Working software is the key measure of progress
8. The agile process promotes sustainable development
9. Continuous attention to excellence and quality in technical development and design boosts the agility
10.10 Simplicity is a vital part of effective agile management
11.Self-organized teams produce the best architecture, requirements, and design
12.Teams should reflect through inspection and adaption to be more effective

ePMO Governance
Slide 54
By Ashok Kumar
ISO9000
ISO 9000 is a set of international standards on
quality management and quality assurance
developed to help companies effectively
document the quality system elements needed
to maintain an efficient quality system. They
are not specific to any one industry and can
be applied to organizations of any size
ISO 9001:2015 covers the follows:
•Section 1: Scope
•Section 2: Normative references
•Section 3: Terms and definitions
•Section 4: Context of the organization
•Section 5: Leadership
•Section 6: Planning
•Section 7: Support
•Section 8: Operation
•Section 9: Performance evaluation
•Section 10: Continual Improvement

ePMO Governance
Slide 55
By Ashok Kumar
ePMO Maturity Levels
This section of presentation talks about ePMO Maturity Levels.

ePMO Governance
Slide 56
By Ashok Kumar
There is no standard way of defining and assessing
ePMO maturity levels. Organizations try to juggle with
custom models and end a messed up maturity Model.
Productivity Research Institute’s Capability Maturity
Model (CMMI) can be tailored to measure ePMO
maturity.
Two custom models are also included. However, you
have to be serious on selecting the Maturity Model
that can be applied to ePMO.

ePMO Governance
Slide 57
By Ashok Kumar
Software Engineering Institutes Capability
Maturity Model Integrated (CMMI) is well
adopted model for assessing
organization’s maturity levels.
CMMI is also used to improve performance
as with increase in maturity level
performance automatically improves.
Discussion of CMMI is out of the scope of
this presentation.

ePMO Governance
Slide 58
By Ashok Kumar
Custem Method -1
ePMO maturity is generally defined by
three maturity levels of Project Management (PM).
● Ad hoc Project management (1)
● Established Project management (2)
● Well Performing Project management (3)
Each maturity level is further divided into
● Processes (P)
● Tools (T)
● Operations (O)
Next slide describes details of this method.
ePMO Maturity Level by
method-1 can be expressed
by a code as
Px-Tx-Ox
Where
x represent level and can
have value of 1 or 2 or 3
P, T, and O represents
performance groups.

ePMO Governance
Slide 59
By Ashok Kumar
PM Maturity
Processes (P) Tools use (T) Operations (O)
Level-1
Adhoc
PM
P1
No common methodology
defined and used. Each project
may use its own methodology
and procedures.
T1
Projects use available tools and
tools used may differ from project
to project. No training is provided
to project resources.
O1
Projects are executed in adhoc
manner and project controls are not
applied effectively. No lessons learned
captured and mistakes are repeated.
Project success rate is poor.
Level-2
Establis
hed PM
P2
Common methodology defined
and used. But no focus on
Improvements of processes,
guidelines, standards, forms,
templates, checklists etc.
T2
Enterprise level tools are installed
and used. Resources are trained
in tools and process uses but
tools use review and appraisal
not performed.
O2
Projects execution follows defined
procedures and project controls are
applied effectively. Lessons learned
captured and mistakes are not
repeated. Project success rate is good
Level-3
Well
Performi
ng PM
P3
Common methodology defined
and used. Focus on
Improvements of processes,
guidelines, standards, forms,
templates, checklists etc.
T3
Enterprise level tools are installed
and used. Resources are trained
in tools and process uses but
tools use review and appraisal
performed.
O3
Projects execution follows defined
procedures and aligned with business
strategy. Project controls are applied
effectively. Lessons learned captured
and mistakes are not repeated.
Project success rate is excellent.

ePMO Governance
Slide 60
By Ashok Kumar
Cutom Method -2
This method defines five maturity levels as Low, Medium, High, Very High and
Strategic. These five levels are defined for each ePMO Functions and each Project
Performance areas. Next slide describes details of this method.
ePMO Functions
1. Methods and Processes
2. Quality Assurance
3. Evaluation, Prioritization, Risks
4. Skills, Resources allocation
5. Portfolio management
6. Budgets and Costs Control
7. Documents Control
8. ePMO IT Team
9. PM Tools
10.Outsourcing Control.
Project Performance
1. Success rate
2. Costs
3. Schedule
4. Quality
ePMO Maturity Level
through Method-2 is
expressed for each ePMO
Function and Project
Performance areas.
The maturity at ePMO level
can be calculated by taking
weighted averages of all
ePMO functions and Project
Performance areas.

ePMO Governance
Slide 61
By Ashok Kumar
ePMO Maturity Maturity Criteria
Low Meduim High Very High Strategic
PMO Functions PMO operates at High
Maturity Level and It
becomes part of the
business strategy.
Therefore, PMO target
all of its effort to align
with execution of
strategy.
Methods and Processes Not defined Defined Followed Improved
Quality Assurance Not done Inspection Quantitative Control Procs
Evaluation, Prioritization, Risks Not done Some cases Most cases Selective alignment
Skills, Resources allocation Adhoc Adhoc Managed Ensured
Portfolio management Not done Adhoc Managed Ensured
Budgets and Costs Control Adhoc Most cases Managed Integrated
Documents Control Not done Adhoc Well done Tools used
PMO IT Team None None Supported Supported
PM Tools Adhoc Adhoc Planned Integrated
Outsourcing Control Adhoc Adhoc Planned Integrated
Project Performance
Success Rate <60% <70% <80% >90%
Cost Adhoc Estimated Controlled Controlled
Schedule Adhoc Planned Managed Controlled
Quality Adhoc Adhoc Managed Controlled

ePMO Governance
Slide 62
By Ashok Kumar
Portfolio Management
about ePMO Portfolio Management.

ePMO Governance
Slide 63
By Ashok Kumar
ePPM – Enterprise Project
Portfolio Management
ePPM is all about managing portfolios
made of Programs and Projects.
Here ePPM has been shown under ePMO
i.e. Protfolio Manager reporting to PMO
Manager. However, ePPM may or may not
be part of ePMO.
The diagram on the right hand side
depicts the context in which ePPM may
exist and work.
Programs
Business
Strategic
Goals
Portfolios
database
ePPM
ePMO

ePMO Governance
Slide 64
By Ashok Kumar
ePPM – Portfolios
ePPM concerns with managing portfolios to deliver the desired
outcome required by strategic goals described in Business
Strategic Plan. One portfolio generally should correspond to one
Strategic goal.
A portfolio is created by grouping Programs, Projects and non-
project work together as a unit. The life cycle of a portfolio unit
covers the life cycle of programs and projects included in the unit
and the period till the desired benefits are achieved after the
completion of programs and projects that form the portfolio unit.
For example the programs and projects created to setup ePMO
may form one portfolio unit named as ePMO portfolio. Similarly
the programs and projects will deliver a named Business Change
may form another portfolio. Portfolio
database
Programs Projects
Business Strategic
Goals
Portfolio

ePMO Governance
Slide 65
By Ashok Kumar
ePPM - Management Cycle
1. Prioritise Business Strategic Goals
2. Identify Programs and Project that will
deliver a Strategic goals and create
corresponding create Portfolio units
3. Estimate cost of portfolio units
4. Prioritise Portfolios & Projects within
5. Allocate budgets and Kick off projects
associated with priority portfolios
6. Oversee management of portfolios
under executions
7. Measure Benefits after programs /
Projects completion
8. Analyse if strategic goals are
achieved
Prioritise
Business
Strategic Goals
Manage Business
Risks,
Gov. Regulations,
Analyse and Report
Portfolios
performance

ePMO Governance
Slide 66
By Ashok Kumar
Need consulting services to help to
set up ePMO or improve ePMO
Governance, Contact at:
Email: rasstouch@gmail.com
Mobile: +44 7482 697 396

ePMO Governance
Slide 67
By Ashok Kumar
*** The end ****

E pmo governance 2013

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