Sheet1Rubric for Assignment 4 - PMO CharterMaxYour PointsCommentsCompany Description PPTCompany Vision4Types of Projects4General Description4Organizational Needs Determination (Complete the Project Management Needs and Business Management Needs)8Organizational Culture Examination (Complete Organization Change, Business Focus, Business Philosophy, and Business Alignment)8Stakeholder Analysis4Current Practices Assessment ( Complete Part 1, page 649-650 and Part 2, page 651)8Preliminary Functionality Examination (Select one of the levels and describe why.)4PMO Staff Alignment (Specify who is part of the development team and who is part of the operations team).8PMO Executive Control Board (Specify using the legend who are the members of the executive control board.4Grammar - Organization - Spelling8PMO Charter Document - WordBusiness Purpose4Project Management Purpose4PMO Functional Responsibilities4PMO Business Alignment4PMO Business Affiliation4PMO Authority4PMO Resource and Funding4PMO Reviewers and Approvers4Grammar - Organization - Spelling4 Total 10001001. For your company describe In a PPT Document, the Company Vision, Types of Projects, and General Description of Company, use the Appendix A in Gerard Hill book starting in page 625 to complete each of the assessment activities, including Organizational Needs Determination, Organizational Culture Examination, Stakeholder Analysis, Current Practices Assessment, Preliminary Functionality Examination, PMO Staff Alignment, and PMO Executive Control Board.2. In a Word document, write a PMO Charter using the Checklists in Appendix A of Gerard Hill’s book.3. Upload the PPT slide deck and the single Word Doc and be prepared to discuss at the Adobe Connect session PMGT 580 Unit 4 Starting a PMO Note: Reference material is The Complete Project Management Office Handbook by Gerard M. Hill and Business Driven PMO Setup by Mark Price Perry. Overview It is extremely important when starting up a PMO that a good stakeholder-centered entity is formed.  This includes how the PMO needs to support the strategic planning as well as how it is structured.  This unit focuses on the steps needed to start up a PMO in a way that will sustain the PMO post startup. You will be selecting an organization in the Unit and writing a PMO charter as a part of one of your assignments. Unit 4 Objectives Key Questions and Outcomes What are some of the leading factors that contribute to the establishment of a PMO? In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow? What are the typical barriers that often prevent a PMO from establishing a clear vision? What are the differences between and characteristics of functional and projectized organizations and weak, balanced, and strong matrix organizations? What are the pros and cons of “selling” the concept of a PMO mindset? What does organizational culture have to do with setting up .

1. Sheet1Rubric for Assignment 4 - PMO CharterMaxYour
PointsCommentsCompany Description PPTCompany
Vision4Types of Projects4General Description4Organizational
Needs Determination (Complete the Project Management Needs
and Business Management Needs)8Organizational Culture
Examination (Complete Organization Change, Business Focus,
Business Philosophy, and Business Alignment)8Stakeholder
Analysis4Current Practices Assessment ( Complete Part 1, page
649-650 and Part 2, page 651)8Preliminary Functionality
Examination (Select one of the levels and describe why.)4PMO
Staff Alignment (Specify who is part of the development team
and who is part of the operations team).8PMO Executive
Control Board (Specify using the legend who are the members
of the executive control board.4Grammar - Organization -
Spelling8PMO Charter Document - WordBusiness
Purpose4Project Management Purpose4PMO Functional
Responsibilities4PMO Business Alignment4PMO Business
Affiliation4PMO Authority4PMO Resource and Funding4PMO
Reviewers and Approvers4Grammar - Organization - Spelling4
Total 10001001. For your company describe In a PPT
Document, the Company Vision, Types of Projects, and General
Description of Company, use the Appendix A in Gerard Hill
book starting in page 625 to complete each of the assessment
activities, including Organizational Needs Determination,
Organizational Culture Examination, Stakeholder Analysis,
Current Practices Assessment, Preliminary Functionality
Examination, PMO Staff Alignment, and PMO Executive
Control Board.2. In a Word document, write a PMO Charter
using the Checklists in Appendix A of Gerard Hill’s book.3.
Upload the PPT slide deck and the single Word Doc and be
prepared to discuss at the Adobe Connect session
PMGT 580 Unit 4

2. Starting a PMO
Note: Reference material is The Complete Project Management
Office Handbook by Gerard M. Hill and Business Driven PMO
Setup by Mark Price Perry.
Overview
It is extremely important when starting up a PMO that a good
stakeholder-centered entity is formed. This includes how the
PMO needs to support the strategic planning as well as how it is
structured. This unit focuses on the steps needed to start up a
PMO in a way that will sustain the PMO post startup. You will
be selecting an organization in the Unit and writing a PMO
charter as a part of one of your assignments.
Unit 4 Objectives
Key Questions and Outcomes
What are some of the leading factors that contribute to the
establishment of a PMO?
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to
follow?
What are the typical barriers that often prevent a PMO from

3. establishing a clear vision?
What are the differences between and characteristics of
functional and projectized organizations and weak, balanced,
and strong matrix organizations?
What are the pros and cons of “selling” the concept of a PMO
mindset?
What does organizational culture have to do with setting up a
PMO?
What type of PMO should be selected?
What types of staffing might be needed to establish and
maintain a PMO?
What is PMO charter and how does a PMO get chartered?
Discussion
What are some of the leading factors that might contribute to
the establishment of a PMO?
Potential Leading Factors for a PMO
Need for common tools
Need for organizational training
Need for processes and standards
Need for knowledge assets for project management
Need for governance policies
A successful PMO will have well-defined PMO goals as well as

4. metrics for measuring its performance and a common and shared
vision in the organization.
Perry, Chapter 10.
5
Initiating a Successful PMO
PMO
Standards
Policies
Processes
Resources
Training

5. Monitoring & Control
Practical Roadmap
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to
follow?
7
Vision
Processes
Training
Tooling
Staffing

6. Assessment
Vision
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to
follow?
8
Vision
Processes
Training
Tooling
Staffing

7. Assessment
Vision
The PMO vision statement is a short aspirational statement
which identifies what you would you like to achieve or
accomplish.
A clear statement of who is the PMO
Goals to be pursued
How does it align to customer needs and business strategy
Example: The PMO supports the implementation of the
organization’s strategic objectives by providing a full set of
professional PMO services. Working in partnership with
project teams, stakeholders and sponsors to attain successful
outcomes. (www.pmmajik.com)
Processes
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to

8. follow?
10
Vision
Processes
Training
Tooling
Staffing
Assessment
Processes
Processes do matter.
Processes should be effective and usable processes
Avoid confusing methodology with process
Methodology is a documented description of the approach to be
taken, i.e. project management methodology
Processes provide a functional framework for doing the work
Good process empowers workers and enables them to succeed

9. Discussion
Why people dislike processes?
Training
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to
follow?
13
Vision
Processes
Training

10. Tooling
Staffing
Assessment
Training
The training strategy should include external and internal
training
Cost of training should be considered and the ROI
Send just process owner to training to reduce hidden cost of
training
Community of practice can play a key role in training
Tooling
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to

11. follow?
15
Vision
Processes
Training
Tooling
Staffing
Assessment
Tooling
Must know actionable needs and critical success factors before
selecting tools
Conduct evaluation and examination of potential tools
One tool can’t do it all
Consider implementation of the tool
Keep tool usage as simple as possible
There must be a relationship between tools and processes and
policies
Integrate your tools into your processes and not the other way
around

12. Staffing
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to
follow?
17
Vision
Processes
Training
Tooling
Staffing

13. Assessment
Staffing
Gradually create and staff the office of the PMO as objectives
are achieved and phases are completed
There are several staffing models: Functional, Projectized, and
Matrix
Matrix organization models include weak, balanced and strong
First step is to name the PMO manager during the vision and
processes phases
Small PMO team can be set up to analyze training and tool
needs
Organizational PMOs can be established, i.e. IT, Engineering,
Applications, Business Unit, Marketing, Strategic, etc.
Assessment
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what
are the phases and order of phases that a PMO should seek to

14. follow?
19
Vision
Processes
Training
Tooling
Staffing
Assessment
Assessment
Timing of the assessment is key
After initial PMO setup activities, a detailed gap analysis and
maturity assessment is of greater value and practical use
You might be able to limit the scope of the gap analysis and
assessment to just essential areas
Three Techniques used in creating value add PMO’s

15. 1 - Needs Assessment – first meetings
What are the problems? Quantify as much as possible.
What is their idea of a solution?
Prioritize.
Harlan Bridges, PMO Symposium 2011, Project Management
Institute
2nd Technique used in creating value add PMO’s
2 - Needs analysis – subsequent meeting
Paraphrase what they told you in the proper order of
importance. Ask for validation.
Identify services and functions:
Required to address the needs of the business
That will provide solutions to challenges identified by the
business
That assist the business reach its goals and objectives
Harlan Bridges, PMO Symposium 2011, Project Management
Institute
23
3rd Technique used in creating value add PMO’s (cont.)
3 -Create and present Charter
Goals
Measureable Objectives
Services/Function mix designed to meet the needs of the

16. business
Roles and Responsibilities
Critical Success Factors
Signatures of the stakeholders indicating buy in and ownership
Harlan Bridges, PMO Symposium 2011, Project Management
Institute
Discussion
Have you ever participated in an assessment and for what?
1 - Needs Assessment
Discovering the Needs
Who are the major stakeholders (the influencers)?
Who are the other stakeholders (those affected)?
What are the challenges of the business?
What are the goals of the business?
What is the culture of the business?
What is the maturity level of the business?
What are the expectations the organization has of the PMO?
25
Harlan Bridges, PMO Symposium 2011, Project Management
Institute

17. One of the problems with PMOs is that many times an executive
might just decide that their company needs a PMO but not sure
why. They assign this task of starting a PMO to a project
manager maybe even with a PMP and they are off and running.
But stop.. So many times we come up with a solution in search
of a problem and we don’t even know what problem we are
trying to solve. How much better to stop and do a needs
assessment first as your first setp.
It starts many times with understanding who the stakeholders
are and making sure we understand the influencers from the
affected. Do we understand what are the current goals and
challenges of the business.
Culture is a big issue in change and if we are initiating a PMO
we had really better understand the culture and its maturity
level and how best to design a PMO that is inline with both.
It is also critical to understand the expectations that the
organization might have on the PMO and what results it expects
from it.
25
Questionnaire – New PMO*
When creating a PMO, interview stakeholders:
Top Three Problems to be solved
How do you view the future state of the PMO? (3 years – what
are people doing different)
What do you think should be the goals and objectives of the
PMO?
Please describe what you expect from the PMO (What value can

18. it provide?)
How successful has the current organization been in managing
projects?
What is the most important performance indicator to you?
(What one thing would spell success for you?)
26
Harlan Bridges, PMO Symposium 2011, Project Management
Institute
Mark Perry, the author of Business Driven PMO Setup tells the
story of two candidates that were being interviewed to start a
PMO. One candidate had all the lingo down – he could talk the
talk of PMOs, the different types, their own opinions on how
they would set it up, and the first steps. The other candidate
talked a lot more losely about the setup talking about it would
depend on what the problems were and tackling the top
problems. The company hired the first candidate. The
candidate hit the ground running, building all kinds of PMO
processes, guidelines, documents, flow charts, and much more..
After nine months of work, no buy in through the organization
had been obtained, people didn’t get it, no results could be seen,
and they decided to fire the person they hired. They went back
to the second person and hired them, and within the 4 months,
this person made incredibly significant results by focusing on
the top three problems.
We have to focus on the top problems that we are going to solve
in order to initiate well a PMO.
We have to have a clear vision of what we think the future of
the PMO should be including its goals and objectives.
Value.. Value Value.. We have to make sure the PMO focuses

19. on value because if it doesn’t, it wont survive.
And it has to be about project success.. Schedule, budget, and
scope.. How well we manage the items.. Getting this data from a
Questionnaire that is obtained through company interviews is a
great way to get this information.
26
Critical Success Factors –
Initiating a PMO
Strong PMO leadership
Support from senior management – ensure they understand they
are also responsible for the success of the PMO
Strong PMO champion (sponsor)
Create a sense of ownership among the stakeholders
Outwardly focused
Be aware of the culture and unique needs of the business
Problem solving – be aware of the “pain points” and solve them
Market, market, market
Communicate, communicate, communicate and monitor the
effectiveness of the communication
Solicit and act upon feedback
27
Just read through these Critical success factors.
27
PMO Initiating and Development Process
Organizational
Needs
Determination

20. Current
Practices
Assessment
PMO Charter
Preparation
PMO Staff
Alignment
Examination
Stakeholder
Analysis
Organizational
Culture
Evaluation
Design
PMO
Plan PMO
Implementation
Preliminary
Functionality
Examination
PMO Charter
Preparation
Gerald Hill, The Complete Project Management Handbook,
Appendix A
HIll
28
Organizational Needs Determination
The primary purpose of this activity is to create the basis for the
PMO Design and Implementation

21. It must include the Project Management Needs and the Business
Management Needs
Project management needs include:
Competency – What you know
Capability – What you do
Maturity – how you do it across the organization
Business management needs include (how is the PMO going to
be involved):
Revenue generation
Customer satisfaction
Operational efficiency
See page 627-628, Hill.
29
Organizational Culture Evaluation
The primary purpose of this activity is to gain an understanding
of organizational culture issues and impacts on the PMO design
and development effort.
The examination considers strength of support relative to:
Organization change – ability to conduct change initiatives
Business focus – preference to manage business growth vs.
profit
Business philosophy – use of formal vs. informal authority
Business alignment – ability to position a new centralized PMO

22. Stakeholder Analysis
The primary purpose of this activity is to identify stakeholders
who will be influential or otherwise involved during the PMO
design and development effort.
Stakeholders to be considered:
Executive stakeholders
Business unit stakeholders
Project management stakeholders
Project management staff stakeholders
External stakeholders
Current Practices Assessment
The purpose of this activity is to establish a benchmark for
project management capability improvement.
Assessment of practices
Project initiation, project planning, project implementation,
project closeout
Assessment of other factors
Project tools
Project work plans
Project primary plans
Project team competency
Project team structure
Oversight and support

23. Preliminary Functionality Assessment
The primary purpose of this activity is to provide a preliminary
determination of the nature and extent of proposed PMO
functionality and operational capability
Use the project continuum as a guide:
Project Office
Basic PMO
Standard PMO
Advanced PMO
Center of Excellence
PMO Staff Alignment Examination
The primary purpose of this activity is to identify PMO resource
needs
PMO development team – who will be performing the design
and implementation activities
PMO operations staff – who will be establishing and managing
the PMO
PMO Managers/Program & Project Managers
Project Administrator
Project scheduler
Contract administrator
Proposal Manager
Business analyst
Project estimator
Resource manager
Legal advisor

24. What is PMO charter and how does a PMO get chartered?
A PMO Charter is not a Project Management Charter!
A PMO Charter includes the following:
Business Purpose
Project Management Purpose
PMO Functional Responsibilities
PMO Business Alignment
PMO Business Affiliation
PMO Authority
PMO Resource and Funding Authorization
PMO Charter Review and Approval
Review pages 636-639, 655 - 656, Hill. Discuss each of the
parts of the charter in detail as this is part of their homework.
35
Design the PMO
This activity specifies what functionality the PMO will have
and how that functionality will contribute to establishing
operational capability within the project management
environment in order to serve the project management and
business needs.

25. Review assessment
Review charter
Review capability assessment
Specify initial and short-term PMO functionality
Specify long-term PMO functionality
Finalize PMO structure
Plan PMO Implementation
This activity facilitates a planning workshop for implementing
the PMO
Convene planners and decision makers
Prepare the work plan
Assess project risk and identify responses

26. Finalize work plan
Key word for those absent
Listen to recording!
Questions?