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Leading successful PMOs - Peter Taylor

  1. 1. Leading Successful PMOs Peter Taylor
  2. 2. Peter Taylor Experience: Creativity: Motivation Author – Speaker – Workshops - Coaching
  3. 3. Leading Successful PMOs Leading Successful PMOs is a book to guide all project based organisations, and project managers who contribute to and benefit from a PMO (Project Management Office), towards maximising their project success. Imprint: Gower Published: Oct 2011 Format: 234 x 156 mm Extent: 160 pages Binding: Hardback ISBN: 978-1-4094-1837-5
  4. 4. Quick Quiz What does ‘PMO’ mean to you?
  5. 5. The PMO is ...  The Project Management Office (PMO) in a business or professional enterprise is the department or group that defines and maintains the standards of process, generally related to project management, within the organization  The PMO strives to introduce economies of repetition in the execution of projects  The PMO aims to reduce project risk through common practice and quality assurance  The PMO links business strategy to project based execution of that strategy
  6. 6. PMOs
  7. 7. What is meant by a PMO?
  8. 8. What is meant by a PMO?
  9. 9. And the right strategy ‘You know, what I love is having people who look after our business for me and who help me drive our strategies forward – the PMO does both, which isn’t what all my departments do...’.
  10. 10. And the right strategy Again from ‘The State of the PMO 2010’ report – 64% of the PMOs advise their executives – 62% of the PMOs participate in some form of strategic planning – And nearly 60% of PMO Directors/Leaders report in to the EVP level or above
  11. 11. Types of PMOs A PMO can typically be one of 5 types from an organizational perspective: – – – – – A Departmental PMO A Special–Purpose PMO An Outreaching (Supplier) PMO An Customer (External) PMO An Enterprise PMO
  12. 12. Models of PMO Blended PMO – combining elements of all three models Supportive Controlling Directive Aid Standards Ownership Empower Risk Mgt Guarantee Share Profiling Unit
  13. 13. And is it real?
  14. 14. All PMOs are not equal Level 1 – Ad Hoc •Few formal definitions •PMO is a trouble shooter Level 2 - Defined •Project discipline in place – repeatable behaviour •Standards and Method and simple Measures Level 3 - Controlled •Aligned with business goals •PMO is governing, reporting and correcting Level 4 – Measured •Quantitative goals set •PMO KPIs in place Level 5 – Optimized •Continual improvement •PMO drives innovative changes
  15. 15. PMO ‘Acid Test’ ‘Get the PMO leader to call your CEO and then count the number of seconds before he recognizes their name...’
  16. 16. PMO ‘Acid Test’ ‘When was the last time that a project manager contacted your PMO asking for some form of help? ...’
  17. 17. PMO ‘Acid Test’ ‘Do people ask why they should use the PMO and do they know what your PMO does...’
  18. 18. PMO ‘Acid Test’ ‘What happens when you call up a PM, do you get straight through or do they adopt an avoidance strategy...’
  19. 19. PMO ‘Acid Test’ ‘Do people ask many times over where they should go for project information or project help...’
  20. 20. Now ‘Established project management offices result in projects with higher quality and business benefits’ PWC: Insights and Trends: Current Portfolio, Programme, and Project Management Practices
  21. 21. Now ‘Building a Project Management Office (PMO) is a timely competitive tactic’ Gartner Research
  22. 22. Now ‘With projects in many organizations becoming global, involving multiple business units and locations, the benefits of PMO are more visible’ 2012 KPMG report - Business Unusual: Managing projects as usual
  23. 23. The Book Research Peter Taylor
  24. 24. Being part of a PMO Personal Satisfaction Project Success Project Quality Process Career Training Support Much improved Better No change Worse Much worse I have always worked in the PMO
  25. 25. The PMO Leaders said: PMO Leaders said: 1 One size doesn’t fit all, flexibility is key 2 Balance well between people and process 3 Never be afraid to promote your PMO and your projects 4 5 Act like a business leader but have a continued passion for projects Track the benefits of what you are doing 6 And be a strong leader
  26. 26. The Managers said: Managers of PMO leaders said: 1 Communicate well 2 Negotiate fairly and strongly 3 Be an agent of change 4 Demonstrate self-managing capability 5 Believe in the business and the projects 6 And know the project world
  27. 27. Recruiters said: Recruitment Skills: PMO Leaders Project Management experience Stakeholder Management Skills Strategically Competent Quality Assurance Risk Management Capability Previous PMO experience Communication Skills Self Managing/Organised Change Management/Agent of Change Negotiation Skills Method/Methodology 0 5 10 15 Asia USA 20 Europe 25 30 35 40 45 50
  28. 28. Competency Framework Business Leadership Project Management Technical Personal
  29. 29. PMO Key Competencies Be passionate about projects Business Negotiate well Don’t be afraid to be unique Be enthusiastic about leading change Leadership Project Management Technical Be strong in communication Personal
  30. 30. It is your PMO... ‘Don't let anyone tell you that you have to be a certain way. Be unique. Be what you feel you need to be’
  31. 31. The Future of PMOs Peter Taylor
  32. 32. Consistency • The best PMOs have consistent, repeatable PM practices across the enterprise. All projects are held to the same standards and requirements for success. They have also eliminated redundant, bureaucratic PM practices that have slowed down projects.
  33. 33. Consistency • The best PMOs have the most experienced PMs in place and have a program underway to recruit the best PMs, develop their existing PMs into the best and to maintain this level of quality and experience.
  34. 34. Transparency • The best PMOs have clear visibility into the progress and cost of all projects. They also know exactly how resources are being used. They openly share this information to all the appropriate stakeholders throughout the enterprise.
  35. 35. Flexibility • The best PMOs adapt to the enterprise's strategic expectations and know how to operate effectively within the corporate structure and culture. And they are not rigid in their own structure and focus in order to adapt and adopt quickly.
  36. 36. Educational • The best PMOs sponsor training and facilitate communities of practice to promote PM best practices in their organizations. Such communities of practice provide PMs with a forum to share their knowledge and share experiences.
  37. 37. Methodology • The best PMOs are the custodians of a dynamic framework of method to assist PMs in the delivery of projects. This includes not only process but also templates and guidance.
  38. 38. Assurance • The best PMOs ensure that quality assurance actually delivers quality.
  39. 39. Future Progress 1. PMO leaders will continue to build better relationships with executive management 2. Improvements in performance measurement will make it possible for PMOs to more accurately measure project health 3. As PMO leaders strive to define their organization’s role, they will move to a menu of PMO features and capabilities
  40. 40. The Case Study Peter Taylor
  41. 41. Siemens Siemens – 80 billion euro
  42. 42. Siemens Industry Automation – 38 billion euro
  43. 43. Siemens PLM Software 1 billion euro
  44. 44. Siemens Me
  45. 45. The Projects
  46. 46. Why a PMO? • • • • 300 360 115 13
  47. 47. The PMO ‘5 Ps’ People Recruitment Profiles Training Induction Certification Assessment Team Building Process Certification Program Methodology Quality Assurance Assessment Authority Performance Project Profiling Project Reporting Dashboard KPIs Scorecard Funding ROI Escalation Promotion Internal Communications External Communications Marketing PMIS PM Information Systems Success Stories
  48. 48. 2007 Achievements PM Maturity Assessment Baselining Activities Survey of PMs Training/Experience/ Certification Survey of PMS Top PM Project Issues PM Competency Development Framework (PMCDF) defined PM Training PM Training Plans Action Dashboard for ‘Top PM Issue’ Resolving Actions/Initiatives ‘Bring out your dead’ Project Issue Assessment completed Project Reporting Improvements Continuous developments – Pipeline and Live Projects Project Audits – Project Support and Mentoring Practice Strategy defined PMI Standards Adopted PLM VDM Development Support PM Virtual Practice formed PM@Siemens Interfacing with PM@A&D Council PLM VDM Training development PLM VDM Training Regular Communication in place PM Newsletters (weekly) – PM Calls – PM Leaders meetings – Ad Hoc AppShare/Training sessions
  49. 49. 2007/2008 Achievements • • • • • • • Project Visibility HealthChecks (PMO) Retrospectives (PMO) Methodology training/adoption Certification (PMP) ‘Red’ project movement Fixed Price projects (LoA)
  50. 50. EMEA PMO 2008/2009 • Self Sufficiency – Methodology – HealthChecks – Retrospectives • Certification (PMP & Siemens) • Program Management • Project Reporting and Escalation ‘Go Green’ • Compliance
  51. 51. Measuring the impact • We targeted • Project ‘Health’ Improvements • Project Management ‘Issues’
  52. 52. Project Red Status Measuring the impact 30.0% 25.0% 2007-2010 20.0% 15.0% 10.0% 5.0% 0.0% Schedule Margin Resources 2007 2008 2009 Product 2010 Overall 53
  53. 53. Measuring the impact 2007-2010 54
  54. 54. EMEA PMO Pre-Project Project Delivery Project Acquisition Project De-Risking Project Delivery Project Reporting -Selling Project Management - LoA - Healthchecks (training/delivery) - Dashboard (content) - Retrospectives (training/delivery) - Top 5 projects - Lessons Learned - myPMO - Large bid support - SOW reviews and approval - PLM VDM (updates and training) - PLM VDM (adherence) - Governance - Control - Project Closure - Success Stories - FP Reports - NCC
  55. 55. EMEA PMO Pre-Project Project Delivery Project Acquisition Project De-Risking Project Delivery Project Reporting -Selling Project Management - LoA - Healthchecks (training/delivery) - Dashboard (content) - Retrospectives (training/delivery) - Top 5 projects - Lessons Learned - myPMO - Large bid support - SOW reviews and approval - PLM VDM (updates and training) - PLM VDM (adherence) - Governance - Control - Project Closure - Success Stories - FP Reports - NCC
  56. 56. The C Level Challenge
  57. 57. Negative ‘Failed projects waste an organization’s money: for every US$1 billion spent on a failed project, US$135 million is lost forever… unrecoverable’ PMI’s Pulse of the Profession™ 2013
  58. 58. Positive ‘The progressive development of the organisation’s project management approach, methodology, strategy and decision-making process are dependent on having a dedicated entity for project management’ 2012 KPMG report - Business Unusual: Managing projects as usual
  59. 59. Danger ‘55% of respondents reported that the value of their PMO was questioned by key stakeholders and inevitably some of these ‘questions’ were translated in to ‘cancellation’ of the PMO’ ESI report 2012: The State of the Project Management Office: On the Road to the Next Generation
  60. 60. The Issues Maturity Knowledge Awareness Experience Skills
  61. 61. The Critical role of PMOs in a global organisation 3 GOOD IDEAS
  62. 62. Ideas
  63. 63. Ideas ‘Don't let anyone tell you that you have to be a certain way. Be unique. Be what you feel you need to be’
  64. 64.
  65. 65. The PMO journey… Motivation and Understanding Keynote Workshop Leading Successful PMOs motivational session Your PMO challenges revealed Investigation and Guidance Discovery process to uncover your Detailed Report with PMOs key challenges PMO roadmap defined Coaching and Mentoring Coaching of PMO leader Mentoring of project team
  66. 66. Peter Taylor Twitter: @thelazypm