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Death Of the PMO


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Program Management Office - presentation made by David Sides, Sogeti (Mar 2010)

Published in: Business, Technology

Death Of the PMO

  1. 1. Expectations •L EARN •S HARE •D ELIVER 0 0
  2. 2. The Death of PMO (as we know it) David Sides, PMP – Vice President – Project Consulting Services 1
  3. 3. Agenda • Welcome & Introductions • Expectations – Why are we here today? • Dave’s Top 10 • Why a PMO? What does a PMO do? PMO Basics • Death to the PMO! • What should a PPO do? • PPI, PPO Value Proposition, Approach, Models • Wrap-up, Expectations, Next Steps 2
  4. 4. And now…Dave’s Top 10 with David Sides 3
  5. 5. Dave’s Top 10 Stupid PMO Tricks 1. Why can’t we do it like we’ve always done it? Don’t you trust us? “They” don’t need any visibility into my projects. 2. Keep the PMO in IT. We’re the ones who need it anyway. Ignore the business. We know what’s best for them. 3. Don’t get any EPM tools for reporting. Keep cutting and pasting reports from Excel. 4. Who needs standards? I have my own templates and they work for me. 5. All this process takes more time than the project. You’re killing me with process! 6. PMO is a “dirty word”. Don’t bother defining accountability, R&R and specific PMO deliverables. Just get those templates out there. We want consistency! 7. No metrics or measurement for improvement. If we don’t measure, we don’t have to be accountable and prove your improvement. After all, we are already CMM level 3, right? 8. Staff the PMO with untrained or inexperienced resources. Don’t educate, train, coach, and mentor. Just throw some junior staff into the PMO. That’s all we need to do reports. 9. Staff the PMO with one already overloaded resource. Wear more and more hats until you can’t get anything done. But, you look really busy. 10. Be known as the “PM Process Police”. Develop lots of methods, processes, and templates. Tell people they have to use them but don’t teach them how. 4
  6. 6. Program or Programme • Program or Programme generally has two meanings: 1. A collection of projects directed toward a common goal. (i.e. The NASA Space Program) 2. An ongoing set of activities to consistently achieve specified business goals through the execution of projects. (i.e. PMO) • A Program uses resources allocated from a business and has the responsibility to use those resources to achieve business results as defined in goals and objectives. • Improvement of processes is a continuous operation program. 5
  7. 7. Why a PMO? What % of development projects are over budget by what % of original estimates? 52% over budget by 200% of original estimates * What % of projects are cancelled before completion? 32% cancelled before completion * What % of IT-related projects are late, over budget, lacking in functionality or never delivered? 80% * Project over-runs cost US companies and government agencies how much ($$) per year? $145 billion/year in over-runs * The greatest contribution to IT project failure is what? Poor Project Management * * statistics from National Institute of Standards and Technology, Software Engineering Institute, Gartner and Forrester 6
  8. 8. What does a PMO do? Is your PMO a… > Weather Station – Gatherer and Reporter of project progress data? > Control Tower – Developer and Enforcer of standards, processes, procedures, and templates? > Resource Pool – Pool of Project Managers to manage key projects? > “Portfolio Manager” – Provide project selection and prioritization data for management decisions? > Benefits Verifier – Track ROI and other business case promises? > Integrator – Manage project interdependencies? What does your PMO do? A PMO is supposed to do exactly what is written in its Charter! © 2001 ELG 7
  9. 9. PMO Basics – 1 2 3 1 • A PMO must have strong executive sponsorship and not just support, but accountability and advocacy. 2 • A PMO must have clear written and agreed objectives, expectations, and deliverables (Charter). 3 • A PMO must provide continuous business value through performance. 8
  10. 10. Death to the PMO! (as we know it) 9
  11. 11. Death to the PMO! Process: Procedure, development, progression, method (Ho hum…) Everybody needs it but nobody wants it. Performance: Do, execute, achieve, complete, act, go, run (Move it!) Everybody wants it and we can “sell” it. A new paradigm – welcome the Project Performance Office! 10
  12. 12. What is a PPO supposed to do? Best Practices for a PPO: > Governance & Control - the structure and process to control operations and change to performance objectives > Assurance - activity to verify and validate all operations and capacity to perform > Alignment - activity to support higher level vision, goals and objectives > Integration - activity to optimize performance across the program value chain functionally and technically > Oversight - activity to structure reviews, accountability and management of projects, stakeholders or suppliers > Organization & Change - activity to manage competencies, learning, knowledge and communications > Improvement - activity to continuously assess performance, research and develop new capabilities and systemically apply learning and knowledge to the program > Standards - activity and limits that define the performance architecture > Measurement & Reporting – track, forecast, predict, and report > Resource Pool – manage key projects and PMs > Process Performance Improvement – continuously improve! A PPO is supposed to do exactly what is written in its Charter! 11
  13. 13. Process Performance Improvement Improve Improve Process 5 – Optimizing • Continuous improvement through use of Lessons Learned and Best Practices.. . PM is “in the water” Hit Targets, Control Save $$$ 4 – Managed • Process control through quantitative and qualitative metrics and measurement of CSFs and KPIs Improve Quality Measure & Reporting 3 – Defined • Standardized processes, templates and documentation used by all (PPO, milestones, governance, gateways) Control Time Standardize & Costs 2 – Repeatable • Using some basic SDLC and Project Management processes Rework Costs $$$ 1 – Initial • Ad hoc, uncontrolled processes, chaos 12
  14. 14. PPO Value Proposition •Maximizes the investment in people as business assets, likely PEOPLE Performance reducing attrition and improving employee morale. Provides education, training, and •Improves expertise in the critical functions of project coaching to build core project management. management competencies. •Establishes the common vocabulary essential to clear communications. PROCESS Performance •Saves time and money in managing projects as project managers Builds, establishes, deploys, and reuse standard templates. maintains common project •Improves consistency of communications and reporting as all are management standards, using common formats. methodology, processes, •Produces higher quality products as standardization leads to more templates, and deliverables. repeatability. TECHNOLOGY Performance •Tracks critical project information for accurate and timely project monitoring and control. Installs, configures, and •Provides high visibility into project performance. administers appropriate automated •Aggregates project information for consolidated reporting tools to facilitate process and across the enterprise leading to better decisions in managing the make people more effective. portfolio. Make your Project Performance Office PERFORM! 13
  15. 15. Sogeti’s 3-Step Approach to your Project Performance Office 1. ASSESS – Gap Analysis, Design Program Key Deliverables: and Roadmap to Improvement • Assessment Report • Gap Analysis 1. Assess “As-Is” situation in People, Process, & Technology. • Design & Roadmap 2. Map existing Best Practices and Identify Gaps to standards. 3. Design “To-Be” Program and Roadmap for your PPO. 2. IMPLEMENT – Build PPO for your specific Key Deliverables: • Business Benefits needs and organization Early & Often • People – Plan for your people as business assets. • Process Definition • Process – Build “Just-Enough-Process” for effective management, • Tool Identification monitoring and controls. • Technology – Select appropriate and cost-effective tools. 3. ADOPT – Reinforce, Train, Mentor to Key Deliverables: provide continuous business-value • Incremental • People – Educate, train, coach and shadow to improve expertise. Business Benefits • Process – Standardize, Measure, Control, and Continuously Improve. • Continuous Process • Technology – Expand tool effectiveness incrementally to ease adoption. Improvements 14
  16. 16. Sogeti’s PPO Models Organizational 5x5 PPO PPO Wheel Project Management • 5 key focus areas • 12 key functions • 6 key areas • 25+ actionable, • 50+ activities • 100+ best practices deliverable-based activities Sogeti’s PPO models have evolved through 35+ years of experience in Portfolio, Program, Project Management, and Organizational Process Improvement. 15
  17. 17. Sogeti’s 5x5 PPO Model Business Focus Project Charters Portfolio Develop a Benefits Develop a Implement a Knowledge Management and Alignment Management using Realization Customer Vendor with IT & Business & Program to Prove Feedback Management Business Value Methods Business Performance ROI (“Reality on Program Program (prep Strategy Metrics, Tools, & Investment”) for outsourcing) Resources Dashboards Risk KM Focus Develop an Create and Create and Integrate Design KM to Knowledge Management Inventory of Maintain a Support an Knowledge Support Knowledge Knowledge Information Management Collaboration and Business Value Methods Management Repository Sharing Culture into the Reuse Assets Project Resources Risk Process Methods Focus Provide “Just Implement a Define Project Become a Ongoing Change Knowledge Management Enough Process” Culture of Management Trusted Management in Project Accountability with Career Path(s) and Advisor to Program to Ease Management & a Solid Work Flow Support Skills Project Adoption of Best Business Methods Value Methodology and Signoffs Development Managers Practices Models Resources Risk Resource Focus Analyze Supply Implement a Educate Business Support Provide Knowledge Management and Demand of Resource Resources on PM Education Performance All Resources – Allocation Process and Development Programs for Appraisals and Business Value Methods Reduce Across the Methodologies and Existing and Scorecards to Constraints Enterprise Processes Future Skills Measure Resources Risk Improvement Risk Focus Implement Implement Formal Quantify and Lead Support Knowledge Management Formal Business Technical Risk Manage Risk Regulatory & Corporate Risk Analysis Analysis Throughout the Compliance Security, DR, Business Methods Value Project Support and COB Efforts Initiatives Resources Risk David Sides, PMP – VP, Project Consulting Services 16
  18. 18. Sogeti’s PPO Wheel The functions below include the most common functions of a PPO. One size does not fit all! Each PPO is tailored to fit the needs of the organization it supports. Organizational Governance – Strategic Planning, Management of Programs & Projects, Management of Operations ORGANIZATIONAL PROGRAM PERFORMANCE CHANGE MANAGEMENT COMMUNICATIONS MEASUREMENT IMPACT . Culture Analysis & Change . Program Vision . Benefit Mapping Adoption Programs . Exec Reporting MANAGEMENT . Program Metrics . Knowledge Transfer . Program Status/ . Issue Management . Education & . Trend Progress Analysis . Risk Management . Project Support/ Consulting . Program Change PPO PORTFOLIO Control INFRASTRUCTURE MANAGEMENT . IT Investment Analysis & MANAGEMENT Project Prioritization . Methods, Processes, Tools & Templates . Business Alignment . Process Governance . Benefits Realization to ROI . Project Knowledge Management . Do the “Right Projects” . Applied Best Practices & Reuse Program PROJECT INTEGRATION Management QUALITY & COORDINATION MANAGEMENT . Dependencies/Gaps/Overlaps . Program/Project Quality Plans . Architecture Adherence . CSF Metrics & Measurement . Transition to Operations . Project Audits/Reviews VENDOR AND PROGRAM THIRD PARTY FINANCIAL RESOURCE CONFIGUR- MANAGEMENT ATION MANAGEMENT MANAGEMENT . Budget vs Actuals . Readiness . People MANAGEMENT . Earned Value . Outsourcing . Pool of Project . Version Control Control Managers . Release control . Facilities & Materials . Document Management David Sides, PMP – VP, Project Consulting Services 17
  19. 19. Organizational Project Management Enterprise Governance: Leadership, Organizational Structures and Enablers, Policies Project Portfolio Management Strategic Alignment & Selection Approval & Funding Weekly Prioritization Regular Program Management: PPO, Methodology, Standards, Processes, Tools, Stakeholder Management, Performance Metrics & Measurement, Benefits Realization Project Team SOW Steering Group Meetings Meetings •Tracking of Progress, •Reporting of Progress, Status, Forecast Integration Time Resources Quality Procurement Status, Forecast •Risks & Issues •Risks & Issues •Lessons Learned Escalation Knowledge Management Responsibility: •Project Files Scope Cost Risks & Issues Communications •Accountability •Best Practices •Approvals •Lessons Learned Project Management Initiation – Planning – Execution (Monitor & Control) – Closing •Signoffs Project Governance: Step Gate Reviews, Milestones, Risk & Quality Management Traditional System Life Cycle: Planning – Requirements – Analysis & Design – Development – Implementation – Maintenance Iterative System Life Cycle: Inception – Elaboration – Construction – Transition – Maintenance David Sides, PMP – VP, Project Consulting Services 18
  20. 20. PMO PPO – Project Performance Office • How do we get from a PMO to a PPO? 1. Assess – Implement – Adopt 2. People – Educate, Train and Coach to develop expertise. 3. Process – “JEP” & “JEC”. Baseline “As-Is”, Measure to Standard(s), Improve. 4. Technology – “JET”. Select & Configure appropriate tools to your situation. 5. Combine Weather Station, Control Tower, Resource Pool, Portfolio Manager, Benefits Verifier, and Integrator for a full-featured PPO. • Use SMCI: 1. We must Standardize to Measure. 2. We must Measure to Control. 3. We must Control to Improve. • What is Continuous Improvement? • Which Standards to Use? 1. CMMI 2. OPM3 3. CobIT 4. Others? 19
  21. 21. Wrap-up • Discussion: 1. Do you have a charter that authorizes the PPO? 2. Which model and standards are appropriate for your organization? 3. How much change can your organization handle? 4. Who is best suited to manage and staff the PPO? 5. Did your organization already purchase a tool? 6. What is your timetable? 7. Your questions? • Review Expectations • Next Steps 20
  22. 22. David Sides, PMP – VP, Project Consulting Services 21
  23. 23. David Sides, PMP – VP, Project Consulting Services 22