How to Setup a High-IMPACT PMO

1. HOW TO SETUP A HIGH-IMPACT PMO By Laura Barnard, PMP IMPACT ENGINE™ SERIES

2. 24 years of experience building PMOs and developing PM and change capability for a wide range of organizations 15 years “on the inside” running PMOs 5 years partnering with PMO leaders to build PMOs 18 years coaching and mentoring PMO and PM teams to Get. It. Done. Founder and President, Project Management for Change and leader of the highest-IMPACT PMO in the DC area responsible for the Project Management Day of Service, the Impossible PMO® PM4Change.org How to Setup a High-IMPACT PMO

3. The top mistakes people make when starting a PMO WHAT YOU WILL DISCOVER The steps to ensure your PMO is off to the right start How to build a sustainable and high-IMPACT PMO How to Setup a High-IMPACT PMO

4. Starting with PMO objectives Getting busy with templates, tools and process Building a PMO charter Trying to be “business driven” COMMON MISTAKES How to Setup a High-IMPACT PMO

5. WHERE DO YOU START?

6. Improve project performance Reduce costs and increase value delivery Increase project throughput Better utilize / allocate resources Improve productivity Get. It. Done. WHY DO WE DO PMO? How to Setup a High-IMPACT PMO

7. START WITH THE OUTCOME PMOs should drive IMPACT

8. WHAT IS IMPACT? IT’S NOT ABOUT PERFORMANCE. IT’S NOT ABOUT PROGRESS. IT’S ABOUT REALIZING OUTCOMES THAT ARE GREATER THAN THE INVESTMENT.

9. IMPACT IS ACHIEVING HOLISTIC RETURN ON INVESTMENT (ROI) VALUE + BENEFITS- COST VALUE – MEASURABLE OUTPUT BENEFITS – SECONDARY OUTCOMES COST – DIRECT (INPUT) AND INDIRECT (OPPORTUNITY)

10. NO. 1 How to Setup a High-IMPACT PMO Find the WHY

11. What business problems do you see? What pain points can you solve? • Are projects realizing their intended benefits? • Are projects taking too long or costing too much? • Are project managers undervalued? Compare to industry, but trust the data you gather internally Don’t assume you know, ask to be sure! ASSESS How to Setup a High-IMPACT PMO

12. NO. 2 How to Setup a High-IMPACT PMO Where can you add value?

13. Start with greatest need and IMPACT potential Look for opportunities for quick wins Align services to problems you can solve Start small with one service to one business area and then leverage the momentum to grow Solve for P – Portfolio, Program, Project DEFINE: SERVICES How to Setup a High-IMPACT PMO

14. PMOS CREATE IMPACT CONNECTPMO SERVICES TO THE IMPACT ON THE ORGANIZATION AND THE OUTCOMETHE BUSINESSLEADERS WANT TO SEE Outcome IMPACT on Organization PMO Service Offering Transparency •Know what’s going on in the portfolio •Better decision making •Strategic Alignment and PPM •Metrics, Dashboards and Reporting Reliability •Can plan work and project alignment •Can more fully allocate resources •Projects lead to results expected •Can build roadmaps for delivery •Program and Project Execution •Standards and Best Practices •Project Support Return on Investment •Better triple constraint management •Decreased costs and expenses •Increased value and project outcomes •Improved business management of assets •Program and Project Execution •PPM Techniques •Strategic Alignment with PPM •Metrics, Dashboards and Reporting Predictability •Can predict outcomes •Better triple constraint management •Decreased costs and expenses •Increased value •Program and Project Execution •Metrics, Dashboards and Reporting •PPM Techniques Accountability •Teams work toward common goals •All hands on deck mindset •PPM Techniques •Metrics, Dashboards and Reporting •Project Support

15. We cannot determine the talent or tools we need until we know how we will deliver IMPACT.

16. NO. 3 How to Setup a High-IMPACT PMO How will you manage?

17. Identify areas of greatest need where you can deliver IMPACT quickly Determine what success looks like – and talk to others about it Establish standard operating procedures (SOPs) to facilitate delivery Lean portfolio management - don’t build more than you need Drive decision making – that’s why you govern DEFINE: GOVERNANCE How to Setup a High-IMPACT PMO

18. Are we doing the right projects? Are we doing enough of the right projects? Are we doing the projects right? Are we ensuring the priorities and the resources are aligned? How to Setup a High-IMPACT PMO

19. EXAMPLE PMO MODELS USE THIS AS A GUIDE TO HOW YOUMIGHT ORGANIZE TO GOVERN AND DELIVERIMPACT Org Structure Functions Business Unit Provides project services to a specific business unit to execute projects Project Specific Temporary entity to accomplish a specific project or organizational objective Governance & Oversight Enables project execution through reporting and portfolio management support services Enterprise / Strategic Responsible for alignment of project/programs to enterprise strategy Center of Excellence Provides standards, best practices, tools, templates to enable better project execution Advisory Provides coaching to PMs and guidance on the project management process

20. NO. 4 How to Setup a High-IMPACT PMO Who do you need?

21. Who’s with you? What strengths do you need? • Business knowledge and business acumen Define roles and responsibilities Set expectations early and often Engage your sponsor DEFINE: TALENT How to Setup a High-IMPACT PMO

22. NO. 5 How to Setup a High-IMPACT PMO What are the tools for the job?

23. Never start here! Process meets services and talent, not the other way around Avoid heavy customization of tools and process – streamline! Phased roll out to methodology, templates, and tools Question everything you build and use – it must drive direct action Go for simple one pagers – no one reads it when it’s more DEFINE: PROCESS AND TOOLS How to Setup a High-IMPACT PMO

24. Do not spend a lot of time focused on tools and process before you’ve shown an IMPACT. We assume we know what the organization needs and we are often wrong.

25. NO. 6 How to Setup a High-IMPACT PMO What’s the plan?

26. Create a business plan, not a charter (business plans are for sustainable organizations, charters are for projects) • What you will do • How you will organize • How you will deliver • How you will measure IMPACT Build a roadmap of capabilities • Start small and implement in phases • Create IMPACT targets • 30/90 cycles – measure every 30 days, shift every 90 • No big bang! PLAN How to Setup a High-IMPACT PMO

27. NO. 7 How to Setup a High-IMPACT PMO Create IMPACT

28. Start with one business area and solve a business problem Start with one set of services or service to get it right before expanding Share wins and progress with others, build upon successes Track what’s working and what’s not so you can adapt Keep your roadmap up to date, shift as needed DELIVER IMPACT How to Setup a High-IMPACT PMO

29. NO. 8 How to Setup a High-IMPACT PMO How will you know it works?

30. Develop an IMPACT measurement plan (measure every 30/shift every 90) Tell the story: communicate targets and outcomes Performance does not equal success, IMPACT does Use a core set of IMPACT-ful metrics, EVM is performance but what is actually showing return on investment for your existence? Do not measure everything just because you can! Tie metrics directly to WHY the PMO exists (in business terms) MEASURE IMPACT How to Setup a High-IMPACT PMO

31. NO. 9 How to Setup a High-IMPACT PMO How will you adapt?

32. Shift focus/services as organization needs shift – must be agile! Regularly check in and ensure services meet needs Get comfortable letting go when things aren’t working Embrace role as strategy navigator – you drive the strategy delivery Bring people with you through the process to avoid change resistance Regularly revisit the WHY and make sure it still makes business sense SUSTAIN & EVOLVE How to Setup a High-IMPACT PMO

33. Think agile: iterate vs. big bang Look for business minded talent Stay focused on IMPACT Avoid the common trap of process and tools Streamline at every turn Reevaluate often, but allow time to stick Don’t boil the ocean Whatever you think you know, always know you are probably wrong  How to Setup a High-IMPACT PMO

34. IMPACT ENGINE PMO “Remember… Project management is NOT the end game. Project management is simply the process we use to drive business results and the PMO is the engine that generates that IMPACT for an organization.”

How to Setup a High-IMPACT PMO

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