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Real example of PMO deployment


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Key elements of real example of PMO deployment

Published in: Leadership & Management
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Real example of PMO deployment

  1. 1. May 2016PMO DEPLOYMENT Key Elements Overview Lou Bahrmasel
  2. 2.  Promotes the discipline of project management processes and maturation of portfolio management, maximizing business strategies  Provides an opportunity for project managers to grow and learn  Formalized training  Cross pollinate experiences through “lunch and learns”  Use of lessons learned  Professionalize and enable a career path for project managers ADVANTAGES OF A PMO FOR PROJECT MANAGEMENT PMO introduction
  3. 3.  Standardization  Project management practices  Training and best practices for project management  Centralization  Metrics for project portfolio, i.e. project status, budget status, etc.  Project and portfolio visibility to Executive Leadership  Development, deployment and ownership of select business processes, i.e. product development, vendor selection, software tool selection, etc.  Workflows  Templates  Training  Oversees management of:  Projects and programs  Project management resources EXAMPLE PMO GOALS Scope and goals of PMO to be confirmed with Executive Management PMO introduction
  4. 4.  Governance  Project selection aligned to business strategy  Portfolio accountability  Decision point and escalation  Process or work flow  Aligned to organization structure  Include corporate emphasis on customer delivery, i.e. “rapid delivery”, “high level of quality”, etc.  Supporting tools, templates  Checklists  Data/metric collection  Training and reference guides  Active users of the process  Overview for Executive Management  Continuous improvement  Feedback from users  Changes in organization structure or corporate strategies KEY ELEMENTS OF PMO PMO introduction
  5. 5. Project governance is the management framework within which project decisions are made.  Address key project decision points, such as:  Project authorization  Hand offs:  R&D to Product Engineering  Product Engineering to Manufacturing  Other defined key milestones preceding financial commitment  Project closure  Consider different levels of governance  Project Steering Committee (PSC): oversee NPD, high profile, etc.  Product Operations Committee (POC): oversee sustaining product activities DEFINITION Governance
  6. 6. PROJECT SELECTION Project Proposal Project Proposal Project Proposal Project Proposal Project Proposal Selected Project Authorized leadership from representative functional areas (Marketing, Engineering, Operations, Finance, Regulatory, etc.) Governance • Market potential • ROI • Facilities investment • Strategic alignment • Portfolio fit • Risks • Legal or regulatory Selection Criteria Notes: 1. Process would be similar for either NPD or sustaining 2. Governance may differ by industry, company and project Project Steering Committee Governance
  7. 7.  Alignment of resources toward business strategic plans  Project definition, execution and delivery within their domain in support of the business strategy  Development and training of resources in alignment with corporate strategy and technology  Support and adherence to corporate processes PROJECT STEERING COMMITTEE (PSC) RESPONSIBILITIES Business strategies established at the C-level or management Governance
  8. 8. PSC ALIGNMENT WITH EXECUTIVE TEAM API and Appliance Engineering PSC Managed Service Engineering PSC Executive Team Market Data Engineering PSC Corporate strategy, fiscal budget, project portfolio alignment, points of escalation • COO • CTO • CIO • CFO VP Engr + VP Prod. Mgmt. VP MDE + VP Prod. Mgmt. VP MSE + VP Prod. Mgmt. Exegy specific PSC definitions Note: • Larger companies may include other diverse membership • This model has been tailored toward Exegy’s organization and culture Governance
  9. 9. PROJECT MANAGEMENT PROCESS OUTLINE – CLASSIC EXAMPLE Definition PhaseResearch Phase Design Phase Implementation PhaseValidation PhaseProduction Phase A B C DE Closure Phase F G Project Manager assigned, requirement analysis, project plan (schedule, resources, budget, etc.) , initial risk analysis, resources identified, financial and business analysis, etc. Feasibility, proof of concept, market analysis begun, initial business case development, etc. Design of product and process, marketing and sales plan, supply chain design, etc. Implementation of product design, evolve marketing and sales plan, evolve supply chain needs, finalizing BOM, manufacturing procedures, test, training, etc. Product validation, regulatory filings, manufacturing process validation, pilot run, sales and field service training, etc. Ramp-up of production, distribution center stocking, sales plans executed Prepare handoff for sustaining teams, lessons learned, project summary to Executive Team Notes: 1. Stage Gate approval through PSC 2. Most activities cross multiple phases 3. Activities vary by industry and company 4. Additional PSC reviews may be added or Phases combined Process
  10. 10.  Provide natural milestones with which to measure progress of project against baseline schedule  Keeps PSC engaged in the performance of the project portfolio  Provides forum for PSC to review project and make key decisions at critical points  Enable critical examination:  Does the project as scoped continue to align with the business rationale? WHY STAGE GATE REVIEWS Process
  11. 11.  Deliverables  What the project manager and team deliver to the decision point  Decided at the output of the previous gate  Based on a standard menu of deliverables for each gate  Criteria  Questions or metrics on which the project is judged in order to determine a result (go/no-go/hold/rework) and make a decision.  Outputs  Results of the gate review; a decision (go/no-go/hold/rework)  Approved action plan for the next gate  List of deliverables and date for the next gate STAGE GATE STRUCTURE Process
  12. 12. PROJECT MANAGEMENT PROCESS OUTLINE – EXEGY VERSION Definition/ Design/Implementation PhaseResearch Phase Validation PhaseClosure Phase A C B • Feasibility /proof of concept • Market analysis and business case development • etc. • Requirement analysis and review • Design and implementation of new features • Unit, component, integration test • Design Review(s) • STE Feature Test (Plan, Development, Execution) • Finalize server cabling schematics • System regression test • Performance and soak test • Training for MSO (RRT, OPS, TAMs), Field Techs, Pre-Sales, etc. • Customer Documentation • Operations Guide • Handoff to MSO teams • CRs executed • Lessons learned Notes: 1. Stage Gate approval through PSC 2. Additional PSC reviews may be added or Phases combined 3. Listed activities and deliverables are only intended to provide context with the actual project Gate Legend: • A = Open • B = Transfer to System Test • C = Release Release • Server qualification • BOM development and review • Advance purchasing • Provisioning tool and manufacturing test Each Stage Gate represents a key decision point Process
  13. 13.  Open Gate: Project authorization  Approval of scope  Appointment of “project manager”  Commitment to milestones  Commitment of resources (human and capital)  Validation Gate: Transfer from Development to System Engr. or other designated validation team  All Development Team deliverables completed  System Engineering (STE + SPE) readiness  Checkpoint to ensure other Release deliverables addressed  Release Gate: Launch authorization  Deployment and “customer” readiness  All testing completed and results approved  Training and customer facing documentation completed PURPOSE OF EACH GATE – EXEGY SPECIFIC Each Stage Gate represents a key decision point Process
  14. 14.  Business case  Market analysis  Promotion and sales plan  Revenue estimates  Development costs and support estimates  Stage Gate checklists  Standardized list for each Gate  Used as agenda and to facilitate PSC reviews  Project plan  Schedules  Resources (people, OPEX and CAPEX)  Communication plan  Risk register  Quality plan  Other collateral:  Project and portfolio review slide  Meeting minute FORMS AND TEMPLATES Tools
  15. 15.  Enterprise view of project portfolio  Standardized metrics  Schedule  Budget  Resources  Capacity management  Diversity of portfolio  Risk vs. reward  Short vs. long term PORTFOLIO MANAGEMENT TOOLS Tools
  16. 16.  Project management topics  Reference guides  Readily available material: online or printed  “Lunch and Learns”  Share experiences from users  Pep talks and process reminders  Process mentors  Process newsletters TOPICS AND OPPORTUNITIES Training
  17. 17. Over time, an unmanaged process will become obsolete, stale and not meet the needs of the organization  Continuous improvement and refinement from:  Organization changes  Business strategy  Regulatory impact  Feedback from users  Lessons learned from previous projects  Best practice adoption from professional community  Impact on:  Workflows  Templates  Tools  Training MANAGING THE PMO PROCESSES Continuous improvement