Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Establishing an Effective PMO

2,963 views

Published on

by Business Beam (Pvt.) Limited

Published in: Business, Technology
  • Be the first to comment

Establishing an Effective PMO

  1. 1. Business Beam (Pvt.) Limited
  2. 2. ContentsCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 2What is a PMO?1Benefits of PMO2How Business Beam may Assist3
  3. 3. What is a PMO?Establishing an Effective PMO
  4. 4. Key DefinitionsProjectBProjectCProjectDProjectAProgram1Program2PortfolioProjectEProgramProjectPortfolioA Project is a temporary endeavor undertaken to create a product,service orresultto obtain an objective (deliverable) and terminate.A Portfolio is Overall collection of theorganization’s grouping of high-level initiativesand their respective projects/programs.A Program is a set of projects thathave a common objective andinterdependencies that need to bemanaged. A set of interrelated andinter-dependent projects .4Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.
  5. 5. Management DisciplinesProject Management is concerned with the definition and delivery of specificwork streams within an overall program framework.Program Management isthe application ofconsistent tools andmethods in order to deliverand co-ordinate relatedprojects and Programs.Portfolio Management is the management process of translating strategy orpolicy into actionable Programs that can be developed in a portfolio ofPrograms.5Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.
  6. 6. What Do Organizations Need?• Given our longer term vision, what are the opportunitiestoday?• How do we translate our strategy into targets for all ourstakeholders to clearly understand?• How realistic the targets and vision are?What are the“right” thingsto do?• Will the projects underway let us achieve our strategicobjectives?• What is the correct balance between growth / innovationprojects, and productivity / maintenance projects?Are we doingenough ofthe “right”things?• What is the appropriate governance structure and riskmanagement approach to facilitate a fast response toissues and opportunities?• How do you get the message across to change peoples’behavior?• How are benefits being tracked?Are we doingthe “right”things“right"?PortfolioManagementPMO6Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.
  7. 7. What is PMO?An organization dedicated to improve the practice and results of projectmanagement.Provides an opportunity for project managers to develop professionally morequickly than most could ever hope, if they were working isolated from oneanother.An organizational entitycreated to assist projectmanagers in achievingproject goals.A group of people with amission to support projectmanagers in thesuccessful launch,implementation, andcompletion of projects.PMO7Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.
  8. 8. The Value of PMO• Operational efficiencies through consistentprocesses for Monitoring, Controlling &Reporting• Proactive management , planning and steering• Delivery oriented to business milestones• Focus on content rich initiatives rather thanprocess• Coaching and mentoring for project / programmanagers• Minimized gaps in strategic business alignmentTypical Environment with PMODeliveryStrategyProject Project Project ProjectPMO• Inconsistent planning and scheduling approaches• Deliverable / technology focus• Little integration across projects• Lack of business management leadership andvisibility• Unjustified projects• Inability to present accurate visibility tomanagement• Impact on market and shareholder perceptionsTypical Environment BeforeDeliveryStrategyProject Project Project Project8Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.
  9. 9. PMO Models9Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.A key success factor for Project / Program Management Offices is to selectthe “right” organization model that fits both the organization’s cultureand needs.Increased Levelof OperationalExcellenceIncreased Level ofBusiness UnitResponsibilityThe PMO has anadvisory role andprovides counseling,training and tools tobusiness units’project managers.ModelMandateSupportThe PMO providesactive support toproject managers.Projects are deliveredaccording to theproject managementstandards established.ControlThe PMO isresponsible for projectdelivery. The PMOprovides trainedproject managers tobusiness units’sponsors. Projects aredelivered according tothe projectmanagementstandards established.Lead
  10. 10. CEOCOOBranchNetworkBusinessSegmentSupportITIT-PMOOperations HREPMOWhere does PMO Fit?10Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.• Depending on the type of projects underthe PMO, PMO can be under specific unitto serve specific units projects or at thelevel of the organization to server allunits in the organization• The PMO normally consists of a full time,dedicated team, reporting to a PMOHead, supporting the program/projectsmanagers• The structure within the PMO is differentbased on the PMO type. The PMO canalso deploy ‘envoys’ into large individualwork streams to provide programmanagement support direct and full timeto the work streams.It is not recommended tohave more then one PMOin the organization. Inaddition ,the more PMO isempowered, the moresuccessful it is.
  11. 11. What’s in it for me?11Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.Leadership• Alignment with Strategic Plan• Standard, effective business processes• Project/Portfolio decision support informationStaff• Improved communication with business sponsors and teammembers• Individual performance• Professional/career development, recognition andopportunitiesManagement• Work prioritization• Efficient allocation and utilization of resources• Higher project success rates
  12. 12. Benefits of a PMOEstablishing an Effective PMO
  13. 13. From Strategy to Implementation13Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.MARKET ENVIRONMENT STRUCTURE & RESOURCESFINANCIAL ENVIRONMENT PERFORMANCE MANAGEMENTStrategy Selection andTranslationStrategyFormulationStrategyImplementationPMO
  14. 14. Core BenefitsCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 14Gain visibility on project portfolio1Align investments with business objectives2Make the right choices when prioritizing investments3Enhance your ability to execute4
  15. 15. 1. Gain Visibility on Your Project PortfolioCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 15Best Practices Samples• Project information is hard tocollect• Portfolio view is non-existent• Controlling costs is challengingTypical IssuesA logical grouping of initiatives in aproject – program – portfoliohierarchy.ProjectBProjectCProjectDProject AProgram1Program 2PortfolioProject EA simple spreadsheet to collectproject information and to guideproject managers through what theyshould document.A complete set of reports on yourcurrent and proposed portfolio,which project, when, for howmuch and highlighting thefinancial impact.
  16. 16. 2. Align Your Investments with Business ObjectivesCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 16Best Practices Samples• Strategic alignment is difficultto assess• Impact of projects on businessprocess is unclear• Project benefits are hard todefineTypical IssuesA standard framework to translatestrategy and identify the impact ofyour projects.A view of the planned benefitsand their impact on theorganization for the upcomingyears.A process map to assess impactof projects on businessprocesses.
  17. 17. 3. Make the Right Choice When Prioritizing theInvestmentsCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 17Best Practices Samples• Projects can’t be compared• Investments can’t be justified• Project prioritization process isunclearThe IssuesINNOVATIONGROWTHMAINTENANCEPRODUCTIVITYSustain aboveaverage returnsIncrease revenueand business sizePrevent marginerosion and assetdeteriorationMargin and assetutilizationimprovementFutureInvestmentsExis tingAssetsINNOVATIONGROWTHMAINTENANCEPRODUCTIVITYSustain aboveaverage returnsIncrease revenueand business sizePrevent marginerosion and assetdeteriorationMargin and assetutilizationimprovementFutureInvestmentsExis tingAssetsINNOVATIONGROWTHMAINTENANCEPRODUCTIVITYSustain aboveaverage returnsIncrease revenueand business sizePrevent marginerosion and assetdeteriorationMargin and assetutilizationimprovementFutureInvestmentsExis tingAssetsINNOVATIONGROWTHMAINTENANCEPRODUCTIVITYSustain aboveaverage returnsIncrease revenueand business sizePrevent marginerosion and assetdeteriorationMargin and assetutilizationimprovementFutureInvestmentsExis tingAssetsMaintenanceProductivityGrowthInnovationFutureInvestmentsExistingAssetsA clear categorization of yourinvestment types, allowingalignment to business objectives(innovation, growth, productivity,maintenance)An assessment of project value andrisk to support a transparentprioritization process based ontradeoff between tangible &intangible value and various types ofrisk.
  18. 18. 4. Enhance Your Ability to ExecuteCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 18Best Practices Samples• Unable to adapt to changes• No continuous view of theportfolio’s life• Inability to allocate resourcesto the right place at the righttimeThe IssuesMonitor Portfolio Statusand PerformanceIdentify NewOpportunitiesRe-prioritize/Optimize PortfolioA consistent framework tointegrate all your existingstandards and approachesinto the Managing for ValueresponsibilitiesPoliciesandStandardsRolesandResponsibilities.Methods &ApproachesTools andEnablersOrganizationalStructureDeploymentandMonitoring
  19. 19. Key Success FactorsCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 19Leadership support.1Focus on increasing the maturity of the organization.2Establish trust – don’t finger point people.3Have the right skilled team.4Do it gradually, and not all at once.5Ensure partnership the between PMO and the business units.6Give enough support and authority to the PMO team.7Use the right tool.8
  20. 20. How Business Beam may AssistEstablishing an Effective PMO
  21. 21. We may assist in…Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 21Establishing a PMO1Making PMO a Center of Excellence2Benchmarking PMO3Sustaining and improving PMO4
  22. 22. 1. Establishing PMOCopyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 22RolloutDefinesRole andStaffNeedsPilotPMOStaffPMODefine PMOGoals &GovernanceDesign /BuildPMOProcesses123456MeasureandUpdate7
  23. 23. 2. Making PMO a Center of Excellence23Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.Tools• Identification of the requirements• Selection of the right tool• Assistance in implementation of the toolsRecognition• ISO 9001 Quality Management System certification• Establishing internal audit framework• Successful audit and certificate of ISO 9001 QMSDashboard• Development of KPIs and Thresholds• Development of measurement system• Assistance in developing dashboard in the tools
  24. 24. 3. Benchmarking PMO24Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.CommunicationManagementFinancial ManagementGovernanceIntegrationManagementIssue ManagementOrganization ChangeManagementProcurement/VendorManagementQuality ManagementResource ManagementRisk ManagementSchedule ManagementScope ManagementInitial OptimizedRepeatable Defined ManagedCurrent SateFuture StatePMI’s OPM3 will be used to assess and improve PMO practices
  25. 25. 4. Sustaining & Improving PMO25Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.Sustaining• Monitoring of feedback and results for various stakeholders• Fine tuning the processes, as per the feedback• Making PMO as an important part of corporate cultureMaturityImprovement• Increasing PMO maturity, based on OPM3• Sustaining the maturity improvement by ensuring benefits tothe stakeholders
  26. 26. contact@businessbeam.com

×