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PMO (Project Management Office)

A Project Management Office, abbreviated to PMO, is a group or department within a business, agency or enterprise that defines and maintains standards for project management within the organization. The PMO strives to standardize and introduce economies of repetition in the execution of projects.

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PMO (Project Management Office)

  1. 1. PMO Project Management Office DILAWAR ABBAS
  2. 2. PMO MODEL
  3. 3. PMO MODEL There are two (2) standard Project Management Office (PMO) models: Administrative and Functional. The key difference between the two is “ownership” in terms of Accountability. The Administrative PMO is responsible for maintaining the approved policies, processes, and procedures commonly applied across all programs/projects, as well as the centralized Project Administration support necessary to ensure consistent implementation. A Functional PMO, on the other hand, is an organizational activity that assigns the Project Manager (PM) resources responsible for program/project cost, schedule, and technical/quality performance. It is important to note that a Functional PMO also performs all of the functions of an Administrative PMO, including assignment of a Project Administrator
  4. 4. PRIMARY REASON FOR IMPLEMENTING PMO Efficiency – making optimal use of available resources; Effectiveness – ensuring Project Management processes are delivered in a correct, consistent, and timely manner; and IT Governance – providing the leadership, organizational structure, regulations, standards and processes that ensure projects comply with best practices in accordance with the enterprise charter/mission, strategies, and business objectives Regardless of whether it follows an Administrative or Functional model, the PMO serves as a mechanism for satisfying six (6) standard process control objectives:
  5. 5. SIX STANDARD PROCESS CONTROL OBJECTIVES Process Owner – designates an “owner” for each Project Management process so that performance responsibility is clear Process Repeatability – Project Management processes are defined and yield consistent process results/outcomes Clear Goals and Objectives – establishes clear goals and objectives for effective execution of each Project Management process Assigned Roles and Responsibilities – defines unambiguous roles, activities, and responsibilities for each Project Management process to ensure efficient execution Process Performance Evaluation – objectively measures the performance of each Project Management process against defined goals and objectives Approved Policy, Plans, and Procedures – documents, reviews, approves, and communicates to all stakeholders the applicable policy, plan, and procedure/work instructions that drive each Project Management process
  6. 6. HOW PMO CAN BE SUCCESSFUL
  7. 7. PROJECT PLANNING For the PMO and PM to be successful, all activities, goals, milestones, and schedules must be documented in a Project Plan. Project Plans are based on the Work Breakdown Structure (WBS), which identifies the activities necessary to deliver the highest value project work products and performance. The WBS defines the total project work scope, and each descending level of the WBS represents an increasingly detailed definition of the work to be performed. The WBS provides the project scope definition foundation for resource and performance planning, time and cost estimating, budget formation, and progress/performance tracking and reporting. Initiation Planning Costing Execution Closing Control PROJECT PROCESS
  8. 8. COMMUNICATION MANAGEMENT Effective communications are a key factor in Project success. Project communications best practices include periodic Project Team meetings, regularly scheduled Client meetings and formal reviews and audits, and submission of regular (e.g., monthly) Cost and Schedule Status Reports (CSSRs). To facilitate communication among the Project Team members and timely service delivery to Clients, a PMO can employ a variety of collaboration tools. Project PMO Project Managers PMO Management Team Leads Team
  9. 9. CHANGE MANAGEMENT Project Change Management - a general term describing the procedures used to ensure that changes are introduced in a controlled and coordinated manner. Change Request – Requests to expand or reduce the project scope, modify policies, processes, plans or procedures, modify costs or budgets, or revise schedules. Change Order – Used in some companies to identify approved change requests (change request when the request is made and change order once it has been approved) Identify Change Discuss Report Implement Analyze Document
  10. 10. QUALITY MANAGEMENT Quality Management is a less-emphasized function of the PMO. In large IT organizations, primary Quality guidance is provided by a centralized Quality function and actual implementation guidance by the PMO. For smaller IT organizations, the PMO. However, it is important that the PMO incorporate the Quality Management aspects into its guidance and governance systems, since process-orientation can bring in discipline and streamline all activities in the Programs/projects.
  11. 11. QUALITY MANAGEMENT The key responsibilities of a PMO for Quality Management include: • Setting up quality standards if none exists or tailoring organizational standards. • Provide guidance on defining acceptance criteria to measure successful completion of the project. • Provide guidance on setting up Program and project specific metrics for monitoring, tracking progress and quality. • Schedule, conduct and review Program and project audits to ensure they are following the guidance provided by the PMO. • These aspects can be detailed out in a Quality Management Plan. A well-structured QM Plan can help the Program/Project adhere to the accepted practices in their projects. In addition, the PMO may also provide. • Quality management support to projects through a dedicated team of people.
  12. 12. QUALITY MANAGEMENT A typical QM Plan will have the following Table of contents (sections): • Reference to organizational processes (if available) • List and reference to any adaptations to the organizational processes, templates and checklists • List and reference to program/project specific processes, templates and checklists • List and reference to all standards/guidelines (including technical, industry-specific regulations, domain etc.) • Release Reviews performed by the Quality function before any customer/production release. • Program/Project specific metrics and tolerances • Work product reviews that will be performed by people in the Quality function • Tools and techniques used for Quality activities • Defect prevention, causal analysis activities and techniques • Reports and Dashboards • Frequency and timing of project reviews and audits by the Quality function
  13. 13. QUALITY MANAGEMENT PROJECT DELIVERABLE MANAGEMENT Prepare Work Product QA / QC Review Rework? Deliver to PDU PDU Review Rework? Yes No Yes No Approve for Delivery Client Comments Approved? Client User Acceptance Testing Deliver to Client Project Library CR Yes No
  14. 14. RISK MANAGEMENT A risk is a possible future event that may affect your project either positively or negatively. Risk management is the systematic process of managing an organization's risk exposures to achieve its objectives in a manner consistent with public interest, human safety, environmental factors, and the law. It consists of the planning, organizing, leading, coordinating, and controlling activities undertaken with the intent of providing an efficient pre-loss plan that minimizes the adverse impact of risk on the organization's resources, earnings, and cash flows.
  15. 15. RISK MANAGEMENT Risk Assessment has three elements: Identify Uncertainties Explore the entire project plans and look for areas of uncertainty. Analyze Risks Specify how those areas of uncertainty can impact the performance of the project, either in duration, cost or meeting the users' requirements. Prioritize Risks Establish which of those Risks should be eliminated completely, because of potential extreme impact, which should have regular management attention, and which are sufficiently minor to avoid detailed management attention.
  16. 16. RISK MANAGEMENT In the same way, Risk Control has three elements, as follows: Mitigate Risks. Take whatever actions are possible in advance to reduce the effect of Risk. It is better to spend money on mitigation than to include contingency in the plan. Plan for Emergencies. For all those Risks which are deemed to be significant, have an emergency plan in place before it happens. Measure and Control. Track the effects of the risks identified and manage them to a successful conclusion.
  17. 17. EARNED VALUE MANAGEMENT Earned Value Management (EVM) is a project management technique that objectively tracks physical accomplishment of work More Elaborately: • Earn Value Management (EVM) technique used to track the Progress and Status of a Project & Forecast the likely future performance of the Project. • EVM technique integrates the scope , schedule and cost of a project. • EVM technique answers a lot of questions to the stakeholders in a project related to the performance of the project. • EVM technique can be used to show past performance of the project, current performance of the project and predict the future performance of the project by use of statistical techniques. • Good planning coupled with effective use of the EVM technique will reduce a large amount of issues arising out of schedule and cost overruns.
  18. 18. . . . follow process and progress will follow.
  19. 19. DETERMINING THE PMO MATURITY LEVEL
  20. 20. LEVEL 1 REACTIVE PROJECT MANAGEMENT – AD HOC Level 1 is the Reactive Project Management stage where methods are undocumented and delivery, budgets and schedules are uncontrolled. At this basic level, PMO need to establish methods for project scheduling, time tracking, resource assignments, project tracking, oversight & support and perhaps use an automated project dashboard to track project success. Key Identifications: • No formal Project Management Process exist across the organization.
  21. 21. LEVEL 2 REPEATABLE PROCESS – CONSISTENT Level 2 occurs when companies begin adopting Repeatable Processes. The main project management processes have been defined, but not constantly used. Still, project teams find it difficult to repeat earlier successes and the project still risks exceeding budgets and schedules. At this established phase, PMO's should automate project budgeting, risk and issue tracking, requirements tracking, resource management. Key Identifications: • Secure Management Support. • Establish Project Goals across IT & Project Teams. • Consistent use of Documented Process. • Establish & Implement PM Training
  22. 22. LEVEL 3 PROACTIVE, STANDARDIZED PROJECT MANAGEMENT – INTEGRATED Level 3 PMO's show a commitment to Proactive, Standardized Project Management. They employ documented standard project management and delivery processes, and consistently use these processes companywide for project delivery. In this growth phase when these new tasks are mastered, the PMO can focus on automating other functions such as financial management and business process modeling. Key Identifications: • Integrate Business & PM Processes. • Integrate Project Information Through PMIS. • Develop Advanced Techniques.
  23. 23. LEVEL 4 MEASURED PROJECT MANAGEMENT – COMPREHENSIVE PMO’s demonstrate Measured Project Management. Quantitative key performance indicators have been specified for project success and are monitored frequently. The PMO has achieved predictable and controllable project delivery and is now free to become more “innovative.” Key Identifications: • Define goals for all functions and processes. • Promote metrics based performance. • Promote participation of all stakeholders. • Establish risk management culture. • Establish a PM core competency.
  24. 24. LEVEL 5 MATURED – OPTIMIZING At Level 5, the most mature PMO enterprises continuously improve project management. At this level, the “connected” PMO can focus on automating vendor management, collaboration through social networks and blogs – and communication through text, IM, video or mobile. Key Identifications: • Proactively prevent defects. • Implement a continuous improvement strategy. • Achieve high project success rates.
  25. 25. PMO MATURITY MATRIX Ad Hoc • No formal Project Management Process exist across the organization CONSISTENT • Secure Management Support. • Establish Project Goals across IT & Project Teams. • Consistent use of Documented Process. • Establish & Implement PM Training INTEGRATED • Integrate Business & PM Processes. • Integrate Project Information Through PMIS. • Develop Advanced Techniques. COMPREHENSIVE • Define goals for all functions and processes. • Promote metrics based performance. • Promote participation of all stakeholders. • Establish risk management culture. • Establish a PM core competency. OPTIMIZING • Proactively prevent defects. • Implement a continuous improvement strategy. • Achieve high project success rates. Tactical Strategic
  26. 26. PMO OBJECTIVES DURING MATURITY STAGES Ad Hoc •Discourage "Under the Table" or Untracked Work CONSISTENT •Review progress through Weekly / Monthly Checks •Provide general support •Assist with Project Planning •Enforce Project Standards •Strengthen PM Skills (Coach, Mentor, Train) INTEGRATED •Identify overlapping projects •Performed troubed projects rescue / abandonment / postmonement •Monitor project scope creep •Develop advance processes (Risk Management, SCope Management) •Help PM's too secure Buy-In and Support from Managers and Executives •Leverage Historical Lessons Learned COMPREHENSIVE •Manage project prioritization and reprioritization •Resource capacity planning •Improve ROI •Collect Project Data in Consistently used PMIS OPTIMIZING •Actively manage and enhance processes and procedures •Achive high project success rates
  27. 27. We are what we repeatedly do. Excellence then, is not an act, but a habit.
  28. 28. Thank You

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A Project Management Office, abbreviated to PMO, is a group or department within a business, agency or enterprise that defines and maintains standards for project management within the organization. The PMO strives to standardize and introduce economies of repetition in the execution of projects.

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