The impact of improving project management is huge, but most companies don't know how big it can be. This presentation shows the ROI for improving PM performance across the enterprise and how to get started.

1. How to Jumpstart Your
Project Management Office (PMO)
By
Dino Eliadis
dino@dinoeliadis.com
www.dinoeliadis.com
Personal Change, Business Leadership,
Life Success

2. Overview
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Who is Project Manager’s Corner?
What is a Project Management Office (PMO)?
What is the PMO’s value proposition?
How do you implement the PMO concept?
What functions make up a PMO?
Where do you go from here?
© 2003, 2005 Dino Eliadis, Inc.

3. Where Did We Come From?
• Practical approach developed 1990’s in US Air Force.
• Doubled implementation productivity for future
teams.
• Used in varying manners for process improvement
with dozens of companies.
• Brought back to its roots 2001 – project
management.
© 2003, 2005 Dino Eliadis, Inc.

4. Project Manager’s Corner Mission
Helping companies increase profits by
improving project management.
© 2003, 2005 Dino Eliadis, Inc.

5. PMO Guidelines
• Your Project Management Office can assume
a variety of roles.
• To get maximum benefit, tailor it to your
objectives, structure and culture.
• Start small, and grow functions gradually; do
not start too many actions at once.
• It’s smart to start with things that help most.
© 2003, 2005 Dino Eliadis, Inc.

6. Why Improve Project Management?
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Improve resource utilization.
Increase productivity.
Improve consistency of project results.
Increase profitability.
Reduces stress and improves moral.
© 2003, 2005 Dino Eliadis, Inc.

7. ROI Impact - A Case Study
• What is the ROI of improved PM?
• Let’s look at an example
• Company PM Profile
 20 projects for year.
 Total project budget $2.1 million.
 Average project 8 months in duration.
 Projects average 20% over-budget.
 Projects average 3 months behind schedule.
© 2003, 2005 Dino Eliadis, Inc.

8. Financial Impact of Poor PM
Project Result Possibilities
95.1%
Early/ Under-Budget
88.0%
Early/ Over-Budget
Early/ On-Budget
91.4%
Late/ Under-Budget
77.0%
Late/ Over-Budget
72.2%
74.5%
Late/ On-Budget
89.8%
On-Time/ Under-Budget
On-Time/ Over-Budget
83.5%
On-Time/ On-Budget
0.0%
86.5%
20.0%
40.0%
60.0%
Return on Investment
80.0%
100.0%

9. 1st Year Impact on Profitability
First Year Profitability
$90,000
$80,000
$83,500
$74,544
Profitability
$70,000
$60,000
$50,000
$45,346
$40,000
$30,000
$20,000
$10,000
$0
Project Results
On-Time/ On-Budget
On-Time/ Over-Budget
Late/ On-Budget

10. Company PM Profile
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20 projects for year.
Total project budget $2.1 million.
Average project 8 months in duration.
Projects average 20% over-budget.
Projects average 3 months behind schedule.
What is the impact of a 20% improvement in PM?
© 2003, 2005 Dino Eliadis, Inc.

11. Impact of Improve PDQsm
Improve PDQSM Impact on Profit
$350,000
$320,872
$300,000
$268,238
Profits
$250,000
Improve Cost Control
$200,000
Improving Schedule Control
$150,000
$100,000
$55,036
$50,000
Improve Cost & Schedule
Control
$0
Possible Options
Improve cost from 20% to 16% over-budget.
Improve schedule from 3 months to 2.4 months.

12. Real World Results
Robbins Gioia, Inc. reported 20% reduction in overhead
by a major insurance carrier by implementing PM “best
practices” across the enterprise.
© 2003, 2005 Dino Eliadis, Inc.

13. How Do You Get These Results?
The PMO Implementation Process
Define Strategic
Goals & Objectives
Measure Pilot
Results
Determine
Current State
Design Transition
Method to Desired State
Goals Not Met
Goals Met
Systematically
Transition the Enterprise
Pilot Transition
Method
Determine Delta of
Current & Desired State
© 2003, Dino Eliadis, Inc.

14. 3 – Dimensions of Successful
Implementation
Process
People
© 2003, 2005 Dino Eliadis, Inc.
Tools

15. Dimensions Explained
• Dimensions are all very tightly integrated.
 Process – tasks required to create desired outcome (best
practices)
 People – skilled human capital required to carryout task,
 Tools – are resources that leverage performance of tasks
• Note that process must come first as it sets the
requirements for people & tools
© 2003, 2005 Dino Eliadis, Inc.

16. Project Office Functions
A Summary of Functional Areas
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Project Planning Support
Project Audit
Project Control Support
Project Team Support
PM Skills Development
Project Management Tools Support
PM Process Management
Project Manager Contracting
Executive Information Support
© 2000, ProjectExperts
© 2003, 2005 Dino Eliadis, Inc.

17. The Next Steps
• Determine your companies goals & objectives for
a PMO.
• Assess the state of your current PM practices.
• Prioritize the PM functions with your companies
strategic direction in mind.
• Use the PMO implementation process to build
and execute your action plan.
© 2003, 2005 Dino Eliadis, Inc.

18. Brought to you by:
Contact Us:
Dino Eliadis
dino@dinoeliadis.com
www.dinoeliadis.com
727-421-5579
© 2003, 2005 Dino Eliadis, Inc.