E pmo governance 20190630

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)
For consulting services for setting up of ePMO or
Business Unit level PMO function or improving the
ePMO / PMO governance, organizations may
contact the author of this presentation. The contact
details are given at the end of this presentation.

ePMO Governance
Slide 2
By Ashok Kumar
About the presentation
This presentation outlines the framework for setting
ePMO and achieving successful ePMO Governance.
ePMO is an abbreviation of “Enterprise PMO”. It may
also be abbreviated as EPMO. However, ePMO
makes PMO stand out clearly i.e. central focus is on
PMO.

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 or Business Unit level PMO and its
operations.
Viewers are requested to send feedback to
the email address mentioned at the end of
this presentation.

ePMO Governance
Slide 4
By Ashok Kumar
Why more text on slides?
This presentation is designed to be viewed i.e. It’s 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.
However, the brief explanations through written text
may not be enough to understand certain concepts
and therefore, the effectiveness of this presentation
would be limited.

ePMO Governance
Slide 5
By Ashok Kumar
Presentation’s Organization
This presentation is organised into the following
sections
● ePMO – Setup & Governance
● ePMO - Controls
● ePMO – Tool Box
● Methodologies
● ePMO Reports
● Process Improvement
● ePMO Maturity Levels
● Portfolio Management
● Author Contact details
The presentation has over 90 slides.
The Focus of this
presentation is on
setup, Governance
and Controls. Other
sections will be
briefly covered.

ePMO Governance
Slide 6
By Ashok Kumar
ePMO
Setup and Governance
This section of presentation talks about
ePMO setup and Governance

ePMO Governance
Slide 7
By Ashok Kumar
ePMO?
ePMO is an enterprise level function found in
organizations with multiple Business units.
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.
As Business units may have its own HR, Finance
and Procurement functions, it may have PMOs for
large and complex programs and projects.
The responsibilities of ePMO may overlap 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
ePMO setup variances
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
or the one you want to create.

ePMO Governance
Slide 9
By Ashok Kumar
ePMO PMO
Continue to next slide 
Enterprise level business function just
like Corporate planning, HR, Finance etc.
Authority and responsibilities spans
across all business units
Only one ePMO in an organization.
Business unit level function specifically
created for large programs and projects.
Authority and responsibilities are limited
to the programs and projects.
One or more PMO in a business unit
Provides methodologies and processes,
guidelines, standards etc for the use of all
programs and projects in Business units.
Generic process tailoring for common use.
Create processes, improvement plans,
Defines generic project controls.
Makes use of methodologies and
processes provided by ePMO.
Creates processes for unique uses.
Process tailoring for specific use.
Implement process improvement plans.
Enforces controls and may create for
specific needs.
2. Processes
and
Controls
1. Position
and
Authority
ePMO v/s PMO
There are differences as well as commonalities between the two.

ePMO Governance
Slide 10
By Ashok Kumar
Sets up centralised EPM tools to be
shared by all programs and projects.
Creates training material and may
conduct trainings for business units.
Centralised resource planning but no
allocation
Uses EPM tools and sets up special
tools not provided by ePMO.
Creates training material and conducts
trainings if not provided by ePMO
Allocate resources to programs and
projects limited control
Responsible for compiling and controlling
budgets for facilities and services it
provides.
Reporting focuses on overall performance
of governance and portfolio management
Responsible for the budget for specific
programs and projects.
Reporting focusses on specific program
and projects plus aggregation at Business
Unit level.
4. Performance
and
Reports
3. Tools
Training
Resources
ePMO PMO
ePMO v/s PMO

ePMO Governance
Slide 11
By Ashok Kumar
Is ePMO adding value to you?
ePMOs exist to add value to services that PMOs 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 12
By Ashok Kumar
Benefits of ePMO
 Facilitating delivery of corporate’s strategic vision by aligning ePMO’s strategic
plan with corporates strategic plan
 Better governance of business unit level PMOs that may have dual reporting i.e.
to ePMO and Business units
 Better programs and projects management infrastructure – shared tools,
systems and processes, guidelines, standards
 Enterprise wide improvement of programs and projects management function
leading to more successful programs and projects
 Enterprise wide reduction of cost of managing programs and projects due better
tools and shared resources
 Better mitigation of Risks arising from PM practices used

ePMO Governance
Slide 13
By Ashok Kumar
ePMO - 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 14
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 Unit Plans.
Business
Strategy
&
Strategic
Plan
Business
Plans
&
Business
Change
Plan
ePMO
Governance

ePMO Governance
Slide 15
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 16
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 17
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 18
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 19
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 20
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 21
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 22
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 23
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 24
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 25
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 26
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 27
By Ashok Kumar
Project Controls
This section of presentation talks
about Project Controls

ePMO Governance
Slide 28
By Ashok Kumar
Project Controls?
Projects are created to deliver certain outcomes or results within certain constraints such as -
√ Budget allocated to the project i.e Cost
√ Time within which project should complete
√ Quality level of products and services delivered
√ Resources available i.e. human skills, material etc
√ Technology to be used in the project
√ Regulations of local bodies, governments and international agencies
√ Risks associated with assumptions
As project execution is fraught with uncertainties, outcomes may often deviated from
expectations. Whenever deviation happens, corrective measures need to applied. The
corrective measures are applied through Project Controls.
Therefore, Project Controls are all about ensuring that projects
successfully deliver its objectives within the constraints.

ePMO Governance
Slide 29
By Ashok Kumar
Project Control Process
The diagram on the right hand side shows the Project Control
Process. It has four stages:
1. Identify control items and describe which variables to control
such as contracted labour effort. Define logic for analysing the
deviations of actual values with the baseline values. Also define
the acceptable amount of deviation. For example the baseline
value proportionate to the work completed be compared with the
actual value captured.
2. Create the baseline by assigning the budget for the control items
such as contracted labour effort
3. Analyse deviation of actual with the baseline by following the
defined logic.
4. If deviation is beyond limits, take the corrective action. Also
decide weather to change the baseline for future comparisons.
Identify and
describe
controls
Baseline
Control
Variables
Analyse
deviations
Take
Corrective
actions
Actual
status

ePMO Governance
Slide 30
By Ashok Kumar
Primary Project Controls?
Project Controls that deals with Scope, Cost, Time and
Quality constraints are primary project controls and
must be applied.
All others are secondary controls that should be applied
wherever required such as Controls that deals with
Resources (skills, material etc), Technology, Regulations
and Risks.
The diagram on the right side represents Cost, Time
and Quality as three dimensions controlling the project
destination for an agreed Scope.
A successful project with a given Scope must complete
within the boundaries set by Cost, Time and Quality.
Scope
X
Cost
Time
Current
position of the
Project Status
at a given point
of time

ePMO Governance
Slide 31
By Ashok Kumar
1) Increase in Scope may increase the Cost and Time
2) Decrease in Time may also decrease the quality
3) Decrease in quality may result into increase in
rejections of deliverables and thereby increase in
Cost as well as Time.
4) Cost overruns may be acceptable to deliver within
Time and with quality
The table on the right hand side show how increase or
decrease in one Constraint may affect the other
constraints.
Scope Cost Time Quality
Scope+ + + -
Scope- - - +
Cost + + - +
Cost - - + -
Time + + + +
Time - - - -
Quality+ - + +
Quality- + - -
Inter-dependencies between Controls
Action taken in one control may affect the other controls.
For example:

ePMO Governance
Slide 32
By Ashok Kumar
Project Control types
Aggregate v/s Composite v/s Discrete?
Aggregate Project Controls are the controls whose corrective
actions are based on the deviations between aggregate actual values and
aggregate baseline values such as project level aggregation of budget and
actual costs associated with the elements of WBS (Work Breakdown
Structure).
Composite Project Controls are the controls whose corrective
actions are based on the Indexes calculated by methods that use two or
more control variables. CPI (Cost performance Index) and SPI (Schedule
performance Index) are examples of Composite Project Controls. EVA
(Earned Value Analysis) method is used to calculated CPI and SPI.
Discrete Project Controls are the controls whose corrective actions are
based on the status of a variable such as state or a flag that are set either
manually or automatically by EPM system.

ePMO Governance
Slide 33
By Ashok Kumar
Control Item Name Aggregate or
Composite
Variables to
measure
Logic to calculate and compare
baseline with actual value
Deviation limit Action taken
details
Cost performance
Index (CPI)
Composite Labour and
Material cost
Index is calculated using EVA that
uses Baseline and actual cost values
+/- 5% Review expanse
approval limits
Documenting Project Controls
The information that needs to be documented for Project Controls should include at least the
following:
1) Control Item name
2) Aggregate or Composite control
3) The name and description of variable to measure
4) Details of logic to compare the baseline value with the actual measured value
5) Deviation limits beyond that action needs to be taken
6) The details of action taken
The following table shows an example of the info documented for a Project Control .

ePMO Governance
Slide 34
By Ashok Kumar
Project Scope Controls
A successful project must deliver neither less not more than the
agreed scope. Project’s scope controls ensure that complete scope
is delivered and scope changes are controlled. These are part of
Change Control Process that should include the following:
Scope
Require
ments
Deliver
ables
Change
Control
process
● Scope to Requirements to deliverables map
● WBS baseline review to ensure scope is covered
and out of scope work is identified and removed
● Setting cost limits for Scope change approval by
different levels of management.
● Accurate estimation for Scope Change
● Scope change impact (Cost, Effort, Schedule,
Technology, process, Skills, Regulations,
Dependencies, Risks, etc.)

ePMO Governance
Slide 35
By Ashok Kumar
Project Cost Controls
The following are some of the controls that a project can enforce to ensure its completion
with in budget. Most of these controls are part of Project Planning and Control process.
However, few may need inputs from external sources.
● Cost Performance Index (CPI = (budgeted cost /Actual cost) of work performed)
● Effort Performance Index(= (budgeted Effort /Actual Effort) of work performed)
● Cost Composition (Labour : Material : Taxes : Others)
● Labour Cost Composition (Permanent : Contracted)
● Resources cost Performance Index (CPI calculated at resource level instead of task)
● Waste production Index (Quality of waste produced /Quantity of raw material used)
● Estimation accuracy Index (actual cost / Estimated Cost)
● Work Package wise actual cost (Labour, Material, Taxes, others)
● Management level wise Expense Transaction approval limits
● Market intelligence feedback on taxes, labour regulations, industry trends
● …

ePMO Governance
Slide 36
By Ashok Kumar
Project Time Controls
Projects rarely complete in time as delays are inevitable if not controlled.
Time Controls are part of Project Planning and Control process.
Enforce the following Controls to ensure timely completion of projects.
Material
Resour
ces +
Skills
Planning
and
Control
Process
and
Tools
● Schedule Performance Index (SPI = Budgeted Cost
or Effort of ( Work performed /Work scheduled))
● Resource Performance Index (Resource level SPI)
● Estimation performance Index (duration forecast /
baseline estimates)
● Review Over due tasks and Due tasks
● Do resource levelling to optimize allocations
● Avoid Tasks having under allocations of resources
● Avoid Tasks having unskilled resources
● Shrink Schedule through network analysis
● Forecast Resource requirements to avoid under
allocations

ePMO Governance
Slide 37
By Ashok Kumar
What is Earned Value (EV)?
Earned Value is the amount of accomplished work
calculated using a budgeted amount for the whole work.
For example if 250 hours are required to finish a work
consisting of 100 units and if 40 units are produced,
Earned value will be 100 hours.
What is Earn Value Analysis (EVA)?
We are well familiar with "Productivity" and "Efficiency" in
manufacturing industry. However, these concepts can’t be
directly applied for projects. Earned Value Analysis has
been precisely developed for this purpose.
Schedule Performance Index in EVA is what Productivity is
in manufacturing industry. Cost Performance Index in EVA
is what Efficiency is in manufacturing industry.
The table on the right side defines the terms used in EVA.
Earn Value Analysis (EVA) Term Term's Description
BCWS For a period Budgeted Cost of Work Scheduled (Baselined Value)
BCWP For a period Budgeted Cost of Work Performed (Progress or
Earned Value)
ACWP For a period Actual Cost of Work Performed (Actual or Burnt
Value)
Cumm-
BCWS
Cummulative Budgeted Cost of Work Scheduled (Baselined Value)
Cumm-
BCWP
Cummulative Budgeted Cost of Work Performed (Progress or
Earned Value)
Cumm-
ACWP
Cummulative Actual Cost of Work Performed (Actual or Burnt
Value)
CV Cost Variance = BCWP - ACWP
SV Schedule Variance = BCWP - BCWS
CPI Cost Performance Index = BCWP/ACWP
SPI Schedule Performance Index = BCWP/BCWS
BAC Budget at completion (Cumm-BCWS at completion)
EAC Estimate cost at completion = ACWP +[(BAC-BCWP)/CPI
ETC Estimate cost to complete = (BAC - BCWP)/CPI

ePMO Governance
Slide 38
By Ashok Kumar
Earn Value Analysis (EVA)
The diagram on the right side shows 3 graphs-
BCWS = Budget cost of work scheduled i.e.
This is the cost of work planned up to
a given point of time
BCWP = Budget cost of work performed i.e.
This is also called Earned Value
ACWP = Actual cost of work performed i.e.
This is the cost of work performed
up to a given point of time
This diagram shows ACWP above BCWS
which is above BCWP. However, in real life
situations these three curves can be in any
sequence.
Cost

ePMO Governance
Slide 39
By Ashok Kumar
Earned Value Analysis Example
Let us assume that a company hires a person for designing and typing work. The estimates for this work were
15 pages per day, 5 pages per hour. Considering these estimates, company hires a person to work part time for
3 hours per day. Person will be paid a fix salary of $750 per week.
This means that the estimated cost of one page designing and typing is $10.
Now look at the actual pages typed. BCWP BCWS ACWP
Day Hours Pages Salary
Paid
Pages
Typed
Earned
Value
Pages
Planed
Estimated
Cost
Actual
Cost
SPI CPI
1 3 10 15
2 3 12 15
3 3 15 15
4 3 12 15
5 3 10 15
1wk total 15 59 750 59 590 75 750 750 78.67% 78.67%
1 4 16 15
2 4 14 15
3 4 15 15
4 4 15 15
5 4 18 15
2nd wk total 20 78 900 78 780 75 750 900 104.00% 86.67%
Total 35 137 1650 137 1370 150 1500 1650 91.33% 83.03%

ePMO Governance
Slide 40
By Ashok Kumar
Difficulties in applying Earned Value Analysis
EVA depends upon the measurements of three cost variables –
1) BCWS is generally estimated at work package level. A work package has
material and labour cost. Labour cost can be further divided into tasks but
material cost can’t be easily divided further and associated with tasks.
2) BCWP requires assessing the percentage of work completed. It’s a difficult
task and assumptions are made. Some companies use 25% cost at the start of
the task, 50% when about half of the tasks is complete, 75% when ¾ of the task
is completed and 100% when the whole task is completed. Arriving at how much
work is completed is very much like guesstimating.
3) ACWP is the actual cost that has material and labour parts. Material
part comes from financial accounting and labour cost comes from
timesheets. When a person works on two or more different tasks in one
or more projects, again how much is spent on a task is not easy to
account. Here also a lot of guesstimating works. Also when to charge the
material cost i.e. at the start or at the completion of the work package
needs to be decided.
Excluding the
material cost
from the EVA
simplifies the
calculations i.e.
EVA for labour
effort only.
Effort can be
estimated and
baselined at
task level.

ePMO Governance
Slide 41
By Ashok Kumar
Project Quality Controls
Delivering defects free Products and Services is the
responsibility of Project management.
Project Quality Controls are enforced through Project’s
Quality Assurance Plan.
All defects must be captured, analysed and corrective
actions taken.
Defects introduced by
• Process
• Material
• Tools
• Skills
Defects captured by
• Assessments
• Reviews
• Inspection & Testing
• Audits
Corrective actions leads to
• Process Improvement
• Supplier Review
• Maintenance and Servicing
• Skills Training
Defects are classified as minor, major
and critical. Minor defects don’t
affect the functionality and are of
cosmetic significance. Major defects
seriously hamper the functionalities
and Critical defects render the
product non-functional.
Major and Critical defects should
never be passed to customers.
Minor defects
Major defects
Critical
defects

ePMO Governance
Slide 42
By Ashok Kumar
Project Risks Controls
The diagram on the right side shows PRIONCE2 Risk
management process. Implement Responses is where the
Risk Monitoring and Control happens. There may be
several types of Risk Responses.
• Enhance Safety and Security measures
• Place administrative Control
• Increase Risk awareness
• Implement Prevention measures
• Isolate Risk
• Substitute causes with lower Risk
• Eliminate the Risk
Risks
Management
Communicate
Communicate
Communicate
Communicate
LowtoHigheffectiveness
Risk Implications: Financial, Health/Injury, Legal, Cultural, Damages, etc

ePMO Governance
Slide 43
By Ashok Kumar
Project Regulatory Controls
Projects have to satisfy the regulations imposed by local and federal
governments. The list of these regulations may be long and legal
specialists are needed to meet regulatory requirements
• Safety and Security regulations
• Pollution Control regulations
• Health Regulations
• Commercial, banking and financial regulations
• Cultural, social and religious regulations
• Animals protect regulations
• Conservation of Scares resources regulations
• Media, advertising and Communications
regulations
• …
Regular planned audits are necessary to assess if project
satisfy the regulations.

ePMO Governance
Slide 44
By Ashok Kumar
Monitoring v/s Controlling
Project Monitoring is Controlling minus corrective actions i.e.
project monitoring is not responsible to taking corrective
actions for cost over runs, schedule delays and quality issues.
Not every stakeholder is responsible for taking corrective
actions but all of them require regular project status reports for
their own use such as start or stop a task.
Examples:
1) While driving on the road you observe somebody is filling the pot
hole on the road and you slow down. Here the filling of pothole is
corrective action while observing the road condition and slowing
down is monitoring.
2) Project status report mentioning schedule delays due to
understaffing or skills issues as an input to HR manager to
expedite hiring and reviewing the skills assessment methods
used.

ePMO Governance
Slide 45
By Ashok Kumar
Embedded v/s standalone
Project Controls
When Project Controls are associated project
management processes, the corrective actions to
be taken are directly generated by the process
and a lot of manual analysis is avoided.
Standalone controls are not associated with
project management processes. These require
complex analysis before arriving at the corrective
actions with some inputs coming from out of the
project boundary.
If you drive car, you
know controls display
process status that
you use to apply
correction to your
actions

ePMO Governance
Slide 46
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 47
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 48
By Ashok Kumar
Automating Controls?
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 49
By Ashok Kumar
Automated Control Action Cycle
The diagram bellow shows an Automated Control Action 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 50
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 51
By Ashok Kumar
ePMO Tool box
software tools used by ePMO

ePMO Governance
Slide 52
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 53
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 54
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 55
By Ashok Kumar
Methodologies
Project Management Methodologies
used to manage projects.

ePMO Governance
Slide 56
By Ashok Kumar
PM Methodologies (PMM)
Project Management Methodologies -
√ provide processes to manage projects
successfully
√ operate under organization’s management
√ use technology to produce project
deliverables.
As this presentation is not about PM Methodologies,
only a very brief coverage of the few commonly
used methodologies is included here.
Project
Mandate
Project
Deliverables
Technology
Project
Management
Methodology
Management

ePMO Governance
Slide 57
By Ashok Kumar
Selecting an appropriate PM Methodologies
There are several PM Methodologies to choose from. The popular ones are
listed bellow.
● Prince2 methodology
● PMI based methodology
● Waterfall based methodology
● Agile based methodology (DSDM)
● Scrum methodology
● XP (Extreme) and RAD methodologies
● Kanban / Scrumban methodologies
● Hybrid approach
● Custom built methodology

ePMO Governance
Slide 58
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 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,
PMI and simply Waterfall over Agile which is the preference of Software
development.
● Availability of software tools to support the methodology.
Before
Selecting
Analyse
Pros & Cons
Pros Cons

ePMO Governance
Slide 59
By Ashok Kumar
Environmental Factors
• Corporate standards
• Multiple organizations
• External Stakeholders
• Location/Geography
Project Factors
• Scale
• Solution Complexity
• Team Maturity
• Project Type & priority
In most cases the following items can be tailored:
• Role Responsibility descriptions
• Processes (decision methods, Algorithms, Workflows,
forms, Templates, Report / Document formats ,Checklists
etc.)
Note: Tailoring is not embedding that requires PM
processes to integrate with business processes and
EPM tools.
``
Project
Tailored
Method
Project
Factors
Tailoring
Process
Original
Method
ePMO - Tailoring the Methodology
Tailoring is all about fitting the methodology to organization’s needs as a tailor
stiches clothes to fit to the body. Except mandatory aspects, rest of the
methodology can be modified. The following factors affects the tailoring.

ePMO Governance
Slide 60
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 that 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 61
By Ashok Kumar
PRINCE2?
PRINCE2 (Projects in a Controlled Environment) is a project management method that
• divides the project work into 2 mandatory stages plus additional optional stages
• uses 7 processes for Directing, Managing and Delivering the work of Stages
• uses 7 themes or knowledge areas to support the activities of 7 processes
• is driven by 7 management principles to create the best practices
• manages project’s progress through exception to deviations in 6 variables
• Has a 4 layered management structure (Principles, Themes, Processes, Environment)
• can be tailored to suite all project environments
The diagram on the right side represents
PRINCE2 method.
The next slide shows further details of
PRINCE2 method.

ePMO Governance
Slide 62
By Ashok Kumar
PRINCE2 Constituents
The following table gives details of the constituents of PRINCE2.
4 layered management
structure
2 or more Stages 7 Processes
Principles,
Themes
Processes
Environment
Pre-project Stage
Initiation Stage
Delivery Stages
Final delivery Stage
Starting up a project
Directing a project
Initiating a project
Controlling a stage
Managing Product delivery
Managing stage boundary
Closing a project
7 Themes 7 Principles 6 + 1 Variables
Business Case
Organization
Plans
Changes
Progress
Quality
Risks
Continued business justification
Learn from experience
Defined roles & responsibilities
Manage by stages
Manage by exception
Focus on products
Tailor to project environment
Scope
Cost
Time
Risks
Quality
Benefits
Compliance*
Next slide shows a detailed PRINCE2 method model diagram

ePMO Governance
Slide 63
By Ashok Kumar
PRINCE2

ePMO Governance
Slide 64
By Ashok Kumar
PMI’s approach?
PMI’s Project Management Method (PMM) includes best practices, conventions, and techniques
that are considered the industry standard. It has five process areas –
• Initiating: Defining the start of a new project or new phase of an existing project.
• Planning: Where the scope of the project, objectives, and how the objectives will be achieved.
• Executing: Actually doing the work defined in the project management plan.
• Monitoring and Controlling: When you need to track, review, and regulate the progress and performance.
• Closing: Concluding all activities across all Process Groups to formally close the project or phrase.
• Pre project
• Project Initiation
• Project Planning
• Requirements
• Design/Specification
• Build
• Test
Acceptance
Transition
Close
Post Transition Review
Monitor / Control
Contract
Procurement
Status Reports
A typical Project managed by PMI’s PPM includes
the processes shown on the right side.
Process Monitor / Control,Contract, Procurement,
Status Reports are performed through out the
method.
Next slide shows the graphic presentation of PMI’s
PPM.

ePMO Governance
Slide 65
By Ashok Kumar
PMI’s Light weight
Project Management
Methodology Tailored for
small / Medium companies

ePMO Governance
Slide 66
By Ashok Kumar
What is Waterfall method?
In this method the project work is divided into
linear sequential phases, where each phase depends on the
deliverables of the previous phase. Work products are made
to design specification.
In this method one can’t go back to previous phase i.e. it
doesn’t allow phase loops. This fits very well in Engineering,
Manufacturing and Construction projects. For example in
construction project foundation is made first before walls can
be made and walls are assembled before the ceiling is made.
It’s natural that once the ceiling is made, going back to walls
or foundation is illogical.
Method as such doesn’t define the phases which may very
from project to project. The diagram on the right side show a
graphical representation of a typical waterfall model
Requirements
Design
Build
Verify
handover

ePMO Governance
Slide 67
By Ashok Kumar
A PMI + Waterfall based
Project workflow showing
Change control loops
for small / medium
size projects

ePMO Governance
Slide 68
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 69
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 70
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 71
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 72
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 73
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 74
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 75
By Ashok Kumar
Process Improvement
about Process Improvement approaches

ePMO Governance
Slide 76
By Ashok Kumar
Improving the processes
Continuous Process Improvement is the third pillar of ePMO
governance and should be a strategic goal of ePMO.
Process Improvements results in-
√Reduction in Costs
√Reduction in effort
√Reduction in Time duration
√Increase in Productivity
√Increase in Quality
√Ease of Operation
√Decrease in Risks
√Regulation Compliance
√More Options
√….
Process improvements offer so many benefits. That’s why
it’s a natural activity in all organizations

ePMO Governance
Slide 77
By Ashok Kumar
Process Improvement
v/s Process Performance?
A process is improved if it sets the boundary of min /
max levels for the variables used to measure the
process performance. It’s like setting the production
capacity of a manufacturing plan.
The process in expected to perform within this
boundary. 100% performance indicates that the
variable measures the maximum boundary level. It’s
like the plant achieving a certain level of production
capacity.
Max
Min
Max
Min
Process
Improvement
From
here
To
here
Process
Performance
100%
Process performance can be increased
without improving the process.

ePMO Governance
Slide 78
By Ashok Kumar
Process improvement Methods
(Normally managed under Project Quality Assurance)
There are several process improvement approaches
to use -
● Generic
● Six Sigma
● Lean management
● Agile
● Custom built

ePMO Governance
Slide 79
By Ashok Kumar
BUSINESS SYSTEM
GOALS
Process Identification
Process Definition
Process Design
Process Tailoring
Process Piloting
MinorChanges
IMPROVEMENT PLANING
Identify Process Changes to get improvements
Including new values of performance indicators
Plan ways and means to introduce Changes
PROCESS IMPROVEMENT SETUP
Identify Process Performance Indicators
Set desired max./min. levels for Indicators
Set desired rate of improvement in levels
Levels and rates measurements mechanism
ACTUAL MEASUREMENTS
Calculate Actual Levels and Rates
Values of Performance Indicators
GAP ANALYSIS
Compare Actual Values with Expected
Values of Performance Indicators
Generic Process Improvement method
The diagram on the right side shows
a generic process for improving
processes.
The yellow box represents the generic
steps needed to create new processes
and the blue boxes represents the
generic steps for improving the process.
Three types of process changes are shown.
• Minor changes are cover by process
tailoring
• Major changes are achieved by changing
process definition
• Radical changes takes you back to
process identification step.

ePMO Governance
Slide 80
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 81
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 82
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.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 83
By Ashok Kumar
ePMO Maturity
ePMO Maturity Level assessment methods.

ePMO Governance
Slide 84
By Ashok Kumar
ePMO Maturity
Software Engineering Institute’s Capability Maturity Model (CMMI)
can be tailored to measure ePMO maturity.
Axelos’s P3M3 framework has been created specifically for
assessing PMO’s maturity levels.
ISO9000+ Quality Assurance assessment method can also be used
to assess ePMO’s 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 85
By Ashok Kumar
As ePMO’s maturity level increases,
the cost of managing projects
comes down. Therefore, the money
spent on improving ePMO maturity
level gets recovered very fast.
The graph on the right side shows
saving in project’s effort as CMMI’s
assessment of maturity level
increases.
ePMO can save up to 25% on
projects’ labour cost when it will
achieve maturity level 4.
ePMO Maturity - Savings

ePMO Governance
Slide 86
By Ashok Kumar
CMMI’s maturity level assessment
CMMI (Capability Maturity Model Integration) is a framework for process
improvement level assessment and is developed by Software Engineering
Institute, Carnegie Mellon university (USA). There are three models-
• The development of Software Products and Services i.e. CMMI–DEV
• The acquisition of Products and Services i.e. CMMI–ACQ
• The establishment, management, and delivery of services i.e. CMMI–
SVC
CMMI Processes have been grouped in two way.
• 5 Maturity Levels, 1) Initial, 2)Managed, 3) Defined, 4)
Quantitatively managed, 5) Optimizing
• 4 Categories– 1) Project Management, 2) Engineering, 3) Process
Management, 4) Support
There are 22 process areas in CMMI and each process area represents an
activity needed to be followed to achieve a Maturity Level.
CMMI assessment is called appraisal and not certification

ePMO Governance
Slide 87
By Ashok Kumar
P3M3 Method
P3M3 is abbreviation of Portfolio, Programme and Project Management Maturity Model. Since Jan
2014 it’s owned by Axelos, a joint venture between the UK Government and Capita. Prior to this,
P3M3 was owned by the Office of Government Commerce (OGC), a UK Government department.
P3M3 ver 3.0 covers assessment of Portfolio, Program and Project management through 10
management areas:
1. Management Control
2. Benefits Management
3. Financial Management
4. Stakeholders Management
4. Risks Management
5. Organizational Governance
6. Resource Management
7. Asset management
P3M3 has 5 maturity levels:
1) Awareness, 2) Repeatable, 3) Defined, 4) Managed, 5) Optimized.
It’s based on SEI’s CMM model and uses PRINCE2 terminology. For self-
assessment the material is available at P3M3 Official Website
P3M3 assesses the processes employed, the competencies of people, the tools
deployed and the management information used to manage and deliver
improvements.
8. Commercial management
9. Behaviours
10.Increased diagnostic capacity

ePMO Governance
Slide 88
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 89
By Ashok Kumar
ePMO Maturity Levels
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 90
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 91
By Ashok Kumar
ePMO Maturity Levels
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.
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.
Next slide describes details of this method.

ePMO Governance
Slide 92
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 93
By Ashok Kumar
Portfolio Management
about ePMO Portfolio Management.

ePMO Governance
Slide 94
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 95
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 96
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 97
By Ashok Kumar
If you need consulting services to
help to set up ePMO and Business
Unit level PMO or improve ePMO /
PMO Governance, Please contact the
author of this ppt at:
Email: rasstouch@gmail.com
Mobile: +44 7482 697 396

ePMO Governance
Slide 98
By Ashok Kumar
*** The end ****

E pmo governance 20190630

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