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Michael Vidyakin: Assessing Organizational Readiness (UA)

Michael Vidyakin: Assessing Organizational Readiness (UA) Lemberg PMO School 2023 Website – https://lembs.com/pmoschool Youtube – https://www.youtube.com/startuplviv FB – https://www.facebook.com/pmdayconference

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Michael Vidyakin: Assessing Organizational Readiness (UA)
Lesson #2
Assessing
Organizational
Readiness
Lemberg PMO School 2023-2024
https://lembs.com/pmoschool
07 December 2024
MichaelVidyakin
2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com
What you have learned during the Lesson #1 –
Introduction to PMO
• History of PMOs
• Roles & Functions of PMOs
• Benefits &Trends of PMOs
• DifferentTypes of PMOs
3 12/7/2023
2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com
Today’s Agenda / Sections:
1. Identifying the need for a PMO in an IT company
2. Assessing project management maturity in the organization
3. Defining the scope and objectives of the PMO
4. Identifying stakeholders and their roles in the PMO
12/7/2023
4
2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com
What are your expectations from this course?
5 12/7/2023
1. Чи можна ще поліпшити процеси і як?
2. Чому навчитись?Чому навчають?
3. Як відбувається у професіоналів, як це роблять інші?
4. Як створювати ПМО?
5. Чому організація ще не доросла? Не дішла?
6. Який процес створення ПМО? Погляд зі сторони?
Identifying the need
for a PMO in an IT
company
Section 1
Ad

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Michael Vidyakin: Assessing Organizational Readiness (UA)

  • 2. Lesson #2 Assessing Organizational Readiness Lemberg PMO School 2023-2024 https://lembs.com/pmoschool 07 December 2024 MichaelVidyakin
  • 3. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com What you have learned during the Lesson #1 – Introduction to PMO • History of PMOs • Roles & Functions of PMOs • Benefits &Trends of PMOs • DifferentTypes of PMOs 3 12/7/2023
  • 4. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Today’s Agenda / Sections: 1. Identifying the need for a PMO in an IT company 2. Assessing project management maturity in the organization 3. Defining the scope and objectives of the PMO 4. Identifying stakeholders and their roles in the PMO 12/7/2023 4
  • 5. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com What are your expectations from this course? 5 12/7/2023 1. Чи можна ще поліпшити процеси і як? 2. Чому навчитись?Чому навчають? 3. Як відбувається у професіоналів, як це роблять інші? 4. Як створювати ПМО? 5. Чому організація ще не доросла? Не дішла? 6. Який процес створення ПМО? Погляд зі сторони?
  • 6. Identifying the need for a PMO in an IT company Section 1
  • 7. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? • A million $$ question • Depends on many factors of the company specific – size, culture, maturity, scope, etc. • Based on top-management needs & decisions 7 12/7/2023
  • 8. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? 1. Silos operations? Are the different departments and segments of your company able to work together? If not and they’re still operating in silos, then you may need a PMO. 8 12/7/2023
  • 9. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? 2. Unified Procedures? Are your methodologies and procedures consistent across projects? If not, then you may need a PMO to standardize these things across the company. 9 12/7/2023
  • 10. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? 3. Stakeholders’ expectations Are senior leaders, top executives, and key stakeholders happy with the way projects are managed and run? If not, a PMO can provide advice on best practices and industry standards for your next projects. 10 12/7/2023
  • 11. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? 4. Strategy changes or transformations? Are you in the process of implementing strategy changes within the organization? If so, you may need a PMO to provide strategic direction & alignment. 11 12/7/2023
  • 12. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? 5. Large & Complex projects? Do you consistently work on large projects with significant impact and investment? If you do, you’re likely to benefit from the experience and expertise of a PMO. 12 12/7/2023
  • 13. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Does your company need a PMO? 6. Project transparency Is project visibility a problem in your organization? If it is, you may need a PMO to centralize data tracking and analysis, project performance monitoring, and resource management. 13 12/7/2023
  • 14. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Potential factors & signs that your company needs in PMO • Your processes are not consistent throughout teams • Your projects are not aligned with your business strategy • Your human resources are insufficient • You don’t have a project management knowledge base • Your company's different departments and segments are not able to work together • Your methodologies and procedures are not consistent across projects • Your organization has a large number of projects or very big projects that require coordination and integration.
  • 15. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com When a PMO is needed 1. Complex Projects: If your company handles multiple, complex projects simultaneously, a PMO can provide the necessary structure and oversight. 2. Need for Standardization:Companies requiring standardized project management practices across various departments benefit from a PMO. 3. Resource Management: Efficient allocation and utilization of resources across projects is a key PMO function. 4. Strategic Alignment: PMOs help ensure that projects align with the company's strategic goals. 5. Performance Measurement: If there's a need for consistent project performance assessment and improvement, a PMO can be invaluable. 6. Risk Management: PMOs are effective in identifying, assessing, and mitigating risks across projects. 7. Change Management: For companies undergoing significant changes or transformations, PMOs can provide guidance and stability. 8. Knowledge Sharing: PMOs facilitate the sharing of best practices, lessons learned, and expertise across the organization. 15 12/7/2023
  • 16. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com When a PMO is not needed 1. Small or Simple Projects: For companies with small-scale or less complex projects, a PMO might be an unnecessary overhead. 2. Limited Resources: If the resource pool is limited, especially in smaller companies, establishing a PMO might not be feasible. 3. Flexibility Over Standardization: Companies that prioritize flexibility and individual project autonomy over standardized processes may find a PMO restrictive. 4. AutonomousTeams: If project teams are highly autonomous and effective without centralized oversight, a PMO might not add value. 5. Lack of Strategic Alignment: If projects are straightforward and not directly tied to strategic objectives, a PMO's role may be less impactful. 6. Low Risk and Change Frequency: Companies with projects that have low risk and change frequency might not need the risk and change management support a PMO offers. 7. Cultural Resistance: Organizational culture resistant to the structured approach of a PMO can render it ineffective. 16 12/7/2023
  • 17. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com No PMO? Key points to consider • Organizational Size and Maturity: Larger or more mature organizations with complex project portfolios often benefit more from PMOs. • Project Diversity: The more diverse the project portfolio, the more likely a PMO will be beneficial. • Executive Support: Successful PMO implementation requires strong executive support and alignment with business objectives. • Additional material: 17 12/7/2023 No PMO? Know when you need one (pmi.org)
  • 18. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan – Identification the needs for PMO 1. Initial assessment 2. Evaluate current project management practices 3. Resource management analysis 4. Strategic alignment check 5. Performance monitoring 6. Risk management review 7. Cultural and organizational readiness 8. External factors consideration 9. Collect feedback 10.Cost-benefit analysis 11. Decision and recommendation 12.Presentation to leadership 18 12/7/2023
  • 19. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan (1,2) Step 1: Initial assessment and data collection • Define Objectives: Clearly outline what you aim to achieve with a PMO.This could include improved project delivery, better resource management, standardization, etc. • Gather Data: Collect data on current project performance, including timelines, budgets, scope, and quality metrics. Step 2: Evaluate current project management practices • Assess Project Complexity: Review the scale and complexity of ongoing and upcoming IT projects. • Analyze Methodologies: Evaluate the consistency of project management methodologies across different teams or departments. • Identify Pain Points: Determine areas where project management is falling short, such as delays, budget overruns, or quality issues. 19 12/7/2023
  • 20. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan (3,4) Step 3: Resource management analysis • Resource allocation: Examine how resources (personnel, technology, budget) are currently allocated and identify any inefficiencies. • Skill Gap Analysis:Assess if there's a need for better skill management and training within the project teams. Step 4: Strategic alignment check • Align Projects with Business Goals: Ensure that IT projects align with the company's strategic objectives. • Change Management Needs: Identify how well the company is managing change, particularly in the fast-paced IT sector. 20 12/7/2023
  • 21. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan (5,6) Step 5: Performance monitoring • ReviewTracking and Metrics: Examine existing project tracking and performance metrics. • Evaluate Reporting Systems: Check the effectiveness of current reporting mechanisms and stakeholder communication. Step 6: Risk management review • Risk Assessment Process:Analyze the current approach to risk identification, assessment, and mitigation in IT projects. 21 12/7/2023
  • 22. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan (7,8) Step 7: Cultural and organizational readiness • Assess OrganizationalCulture: Determine if the culture is conducive to the structured approach of a PMO. • StakeholderAnalysis: Identify key stakeholders and assess their openness to adopting a PMO. Step 8: External Factors Consideration • MarketTrends: Look at external factors such as market demands and client expectations. • Regulatory Compliance:Consider if compliance and regulatory standards necessitate a PMO. 22 12/7/2023
  • 23. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan (9,10) Step 9: Collect feedback • Conduct Surveys/Interviews:Get insights from project managers, team members, and other stakeholders about their views on project management challenges and the potential role of a PMO. Step 10: Cost-benefit analysis • Estimate PMO Costs: Consider the financial implications of setting up a PMO. • Project Benefits: Estimate the potential benefits, including efficiency gains, better project success rates, and alignment with strategic goals. 23 12/7/2023
  • 24. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Step-by-step plan (11,12) Step 11: Decision and recommendation • Compile Findings: Summarize the insights from the previous steps into a comprehensive report. • Make a Recommendation: Based on the analysis, recommend whether or not to establish a PMO. Step 12: Presentation to leadership • Prepare Presentation: Develop a clear and concise presentation of your findings and recommendations for the company's leadership. • Schedule and Hold a Meeting: Present your findings and facilitate a discussion on the next steps. 24 12/7/2023
  • 25. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com How do you know that your company does really need a PMO now? Or doesn’t need? 25 12/7/2023 • Немає і не актуально, бо проєкт один на стадії середини розробки. ПМО міг бути актуальний, коли проєкт стартує з початку. • Є, і потрібен, є багата кількість маленьких проєктів та великих проєктів, як можна вести по певним стандартам і правилам. А також є ще внутрішні проєкти.Треба прозорість.
  • 26. Assessing project management maturity in the organization Section 2
  • 27. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com What is Project management maturity? • Project management maturity reflects a company’s ability to lead successful projects. • Companies with underdeveloped maturity may not finish projects on time or within budget. • Having high project management maturity means planning, executing, and completing projects well (without relying solely on the talents and leadership of a few gifted individuals). • A project management maturity assessment is a process of evaluating the reliability, consistency, and effectiveness of an organization's project management approach, methodology, strategy, and decision-making. • It can be done internally or by a professional consultant, and it involves various methods of data collection, such as interviews, surveys, benchmarks, and document reviews.
  • 28. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Characteristics of project management maturity • Projects finish on schedule • Teams mitigate risks and complete projects well • Finished projects reflect original goals • Projects deliver benefits • Projects continue successfully despite project changes • Project management applies good project governance throughout the organization. 28 12/7/2023
  • 29. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Why do you need to assess the maturity? • A 2018 survey “Pulse of the Profession by PMI” showed that companies waste $1 million every 20 seconds because of poor project management. • A maturity assessment is needed if any of following are true for your company: 1) Projects don’t have kick-off or close meetings. 2) Projects lack charters and statements of work (SOW). 3) Projects are not realistic or time-bound. 4) Teams repeatedly fail to implement processes or tools. 5) Managers don't get the results they need. 6) Employees don't know what to do. 7) Management doesn’t receive clear deadlines. 29 12/7/2023
  • 30. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Чи можливо побудувати ПМО в такій організації? (травень 2021 – лютий 2022) 30 12/7/2023
  • 31. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Project Management Maturity Models • Project management maturity models measure how well a company handles projects. • Such models provide criteria and scoring systems to assess capabilities. • Models also provide a framework for implementing process improvements in the future • 25+ models exist 31 12/7/2023
  • 32. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com 7 models to consider 1. Capability Maturity Model (CMM) 2. Organizational Project Management Maturity Model (OPM3) 3. Project Management Maturity Model (PMMMSM) 4. Berkeley Project Management Process Maturity Model 5. Gartner Score Diagnostic Family 6. Kerzner’s Project Management Maturity Model 7. Portfolio, Programme, and Project Management Maturity Model (P3M3®) 32 12/7/2023
  • 33. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Capability Maturity Model (CMM) • Designed with contracted software projects in mind, the Capability Maturity Model determines a company’s maturity level by evaluating its standardized processes. • This method includes two approaches to assessment and improvement: staged, which tracks a specific set of processes throughout an organization, and continuous, which follows process capabilities based on an organization's priorities. • Once the evaluation is complete, managers rank the company based on the model’s five maturity levels: initial, managed, defined, quantitatively managed, and optimizing. • While the Capability Maturity Model is an excellent option for evaluating software companies, it is adaptable for any industry. • The CMMI Institute (ISACA since 2016 - https://cmmiinstitute.com/), which owns the model, notes that companies in aerospace, finance, healthcare, information technology, software, defense, transportation, and telecommunications have found success using its methods. 33 12/7/2023
  • 34. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Levels of Maturity 34 12/7/2023
  • 35. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Organizational Project Management Maturity Model (OPM3) • The PMI’sOrganizational Project Management Maturity Model can help managers assess maturity levels in projects, programs, and portfolios. • This model uses the same 10 knowledge areas of PMBOK® guide to drive assessments, which are project integration, time, scope, cost, quality, human resources, risk, communications, stakeholders, and procurement. • Once the assessment is complete, the model assigns one of four maturity stages: standardize, measure, control, and continuously improve. • Any organization in any industry can use it to make a thorough assessment of, and ultimately improve, its project management processes. • Additional resources: 35 12/7/2023 1) PMI organizational maturity model 2) Assessing project management maturity (pmi.org)
  • 36. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com 36 12/7/2023
  • 37. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Project Management Maturity Model (PMMMSM) • The model also uses the PMBOK® 10 knowledge areas to create a standardized method for maturity assessment. • When using this model, project managers assign one of five maturity levels to each knowledge area.These levels are the following: initial process, structured process and standards, organization standards and institutionalized process, managed process, and optimizing process. 37
  • 38. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Berkeley Project Management Process Maturity Model • Applicable to any industry • When using this model, project managers assess the maturity level of key project management processes and organizational characteristics and rank them on a five-stage maturity scale, which includes the ad-hoc, defined, managed, integrated, and sustained stages. 38 12/7/2023
  • 39. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Gartner Score Diagnostic Family • Founded in 2014, the Gartner Score Diagnostic Family is a collection of online maturity assessments. • Highly customizable and adaptive, this model helps managers identify priority growth areas based on their company’s strategic aims. • With its interactive, intuitive tools, the Gartner Score Diagnostic Family reveals which processes are undeveloped and provides a cross-functional overview of the areas that are critical to strategic planning. 39 12/7/2023
  • 40. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Kerzner’s Project Management Maturity Model • The Kerzner model defines each of its five maturity levels by the primary focus of that stage: common language, common process, singular methodology, benchmarking, and continuous improvement. • For example, at the common process level, managers should work on designing and implementing standardized, repeatable processes, while at the continuous improvement level, managers should focus on monitoring current processes and tweaking them as needed. 40 12/7/2023
  • 41. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Portfolio, Programme, and Project Management Maturity Model (P3M3®) • This model ranks maturity on a five-stage scale and gauges maturity based on seven core processes: organizational governance, management control, benefits management, risk management, financial management, resource management, and stakeholder management. • In addition to improving organizational processes, this model is also useful for assessing and improving project portfolio management (PPM). 41 12/7/2023
  • 42. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com With which tools assessments are done? • Artifact Collection: Reviewing documents helps managers determine whether or not teams follow processes and write project plans, and how well they do so. A document review also shows if practitioners understand why processes are important. • Interviews: Conducting interviews individually or in groups helps reveal how widely teams apply processes and understand process importance. Personal interviews, in particular, can reveal commitment to and enthusiasm for following practices and process nuances. • Questionnaires: Administering questionnaires is a more methodical, standardized method of determining project management maturity. Models offer either self-administered or 360-degree questionnaires. Companies often limit self-administered surveys to upper management and distribute 360-degree questionnaires to teams and individuals.The results of a 360-degree questionnaire administered by a third party may provide a more balanced perspective than self-administered surveys. • Benchmarking: Benchmarking against other organizations provides an objective standard for considering a company’s efforts. 42 12/7/2023
  • 43. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Assessment Radar Chart 43 12/7/2023
  • 44. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Improved Maturity • The organization has achieved full project management maturity when 1) it has met the requirements and standards for project management effectiveness as defined by the model, and 2) it is capable of demonstrating improvements such as on-time project delivery, cost reductions, organizational efficiency, and profitability. 44 12/7/2023
  • 45. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com What is the maturity level (1-5) of your PMO? - in the past (AS WAS), now (AS IS) andTO BE? 45 12/7/2023 • 0-2-3 (2025) • 0-0.5-3 (5m2024) • -2-3 (2024)
  • 46. Defining the scope and objectives of the PMO Section 3
  • 47. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Main focus of PMOs activities • A PMO is a centralized department in an organization that oversees and manages projects via project managers. It provides support, guidance, standards, tools and training to ensure projects are completed on time within budget, adhering to the required quality standards. • PMO primarily focuses on three key functions: 1) Governance —Whether ensuring regulatory compliance, defining standards, creating project policies and procedures, or periodic reviews and audits, the PMO team works with all the project managers to ensure strong governance on projects undertaken by the organization 2) Support — A PMO provides support and guidance to project managers and their project teams, develops methodologies and processes, coaches and trains project teams, allocates resources and budget, and procures and adopts tools 3) Delivery —The PMO team also focuses on stakeholder management, documentation and delivery, risk management, tracking and collaboration, change management, and ensures smoother execution and delivery
  • 48. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com General steps to set up a PMO (1/4) 1. Define your core business case — Create a case to define the problems that project management is facing and the actual need of a PMO.This document should answer how the organization would benefit from a PMO and outline key objectives 2. Gain buy-in from top management — Present the business case to the management and secure their support, funds, and resources permissions 3. Define the scope. Define the PMO responsibilities and its areas of work.This should include all projects the PMO will manage • Your PMO’s scope definition is complete when both product and project scope elements are reflected and integrated • Your PMO project’s scope is well-defined when each stakeholder can see the elements that are important to them and when all stakeholders agree that the project’s scope is complete and accurate. 48 12/7/2023
  • 49. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com General steps to set up a PMO (2/4) - SCOPE • A tabular approach can be used to scope definition to help stakeholders understand what the PMO is, what the PMO might be in the future and what the PMO is not. • Defining scope in a tabular format allows scope elements to be categorized and bundled, which allows for detailed review, deeper insights, and at-a-glance synthesis of a lot of information. • There could be 100+ scope elements to evaluate when defining a PMO. • For each scope element, the presence or absence of text in the columns indicates that element’s scope status. • Descriptive wording can be provided instead of a generic “x” to ensure shared understanding of complex elements. 49 12/7/2023
  • 50. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com General steps to set up a PMO (3/4) 4. Define the type of PMO to adapt — Knowing the scope and responsibilities, analyze and decide on which type of PMO will best suit your organization 5. Define the process and methodologies — Develop your initial process, methodology, and best practices to be followed by projects. Create templates for various communications in project management 6. Identify success metrics — Identify the performance indicators that can help measure the success and effectiveness of the PMO 7. Create a PMO charter —The charter is an official document that explains the mission, vision, goals, objectives, and scope of the PMO. It also records detailed processes, operating procedures, and methodologies that the PMO will adapt 8. Acquire resources — Hire and train the PMO staff, procure required tools and technologies, procure project management software, and any other required assets 50 12/7/2023
  • 51. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com General steps to set up a PMO (4/4) 9. Training and support —Train project managers and project teams on initial processes, methodologies, standards, templates, practices as defined in the charter 10.Implement operating procedures —Work with project managers and teams to implement standards, processes, best practices, tools, and methodologies 11.Monitor and evaluate — Constantly monitor initial project performance and impact due to introduction of the PMO. Evaluate the results and take adequate actions to improvise 12.Communicate the value — Communicate the value of the new PMO to all the stakeholders and explain the new milestones 13.Iterate and improve — Constantly evaluate and improve operating procedures 51 12/7/2023
  • 52. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Some peculiarities in establishing a PMO • Establishing a project management office doesn’t happen overnight. • It can take at least a month or two and up to several months or years to establish a strong, mature PMO. • When you first get started, create a small PMO with one project and a small set of responsibilities. • Then you can slowly expand the scope of PMO and include more projects as and when it becomes more mature and established. • Seek constant feedback from stakeholders and secure support from senior management by periodically communicating values to them. • The more your stakeholders can see project elements of interest to them in your scope statement, the easier it becomes to manage and control your project. 52 12/7/2023
  • 53. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Common challenges when implementing a PMO • A PMO can complicate the daily tasks of project managers and teams by adding excessive paperwork. • This potentially leads to slowness in project execution and stretches project timelines resulting in financial losses • Forming a PMO can be expensive as it adds costs like staff salaries, software and tools, training, and ongoing operational expenses. • Smaller organizations should not adopt PMO for this reason and larger organizations should be mindful to keeping costs in check • Not all project teams and stakeholders might be adaptable and some might resist adapting the policies, procedures, and templates. • Some teams might view a PMO as an intrusion, leading to friction within the organization 53 12/7/2023 Added bureaucracy Resistance to change Overhead costs
  • 54. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com New PMO of the future • Leaders can demand value and purpose-driven governance and structure in the new PMO.The new PMO should be both value-driven, with a seat at the C-suite table, and purpose-driven with implementation teams recruited from across the organization as well as trusted partners. • PMO implementation models will be customized to help deliver the critical performance outcomes and the notion of a one-sized PMO will likely become obsolete. • The PMO of the future can be defined by how business leaders challenge the PMO of today, inviting an objective PMO maturity review to help identify improvement areas and define their strategic PMO plan. • PMO transformations should become commonplace as business leaders engage with expert partners to help strategically source their PMO functions with implementation models that work for them including outsourced, co-sourced or point solutions. • PMO transformation begins by defining the right scope and establishing a set of achievable objectives and realistic boundaries that are based on a well-researched expert maturity assessment. 54 12/7/2023
  • 55. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Additional resources to read • The Complete Guide to Project Management Office (PMO) [2023] • Asana 55 12/7/2023 • Building a PMO from the ground up:Three stories, one result (pmi.org)
  • 56. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com What are the key objectives and scope of your PMO? 56 12/7/2023 • Вибудувати нові стандарти, оптимізувати процеси, підходи • Ефективне залучення всієї великої команди (ще більше ніж зараз)
  • 58. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Why stakeholders matters? Scope/ Requirements Schedule Cost Project team Outcomes Culture Benefits Quality Plans Risk Success • by revealing the need change elements of the scope and/or project requirements • by expediting or halting project tasks editing or halting project tasks • by cutting costs or raising expenses with changes • by controlling access for skillful, knowledgeable, outcome-driven staff, fostering a learning environment • by informing plans or advocating changes • by enabling or blocking work required for the desired outcomes • by setting the team's involvement and organization's role • by setting long-term goals for project value • by defining the risk thresholds of the project he project • by identifying and requiring quality requirements • by defining success factors and participating in the evaluation of success
  • 59. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com PMO outcomes depend on Stakeholder needs 59 12/7/2023 Interest Power/ Authority Influence Impact on outcomes Need Stakeholder
  • 60. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Stakeholder identification process (simplified) 1. List potential stakeholders: Brainstorm a list of all external and internal individuals or groups who may be affected by or have an interest in the project. 2. Categorize stakeholders: Group stakeholders based on their roles, interests, and influence. 3. Look for any government regulations that might apply to your PMO or projects under governance. If so, those government agencies become project stakeholders. 4. Consider the PMO & projects' commercial purpose to identify what types of individuals benefit from a project's success. 5. Apply for AI tools at any step of stakeholder identification & analysis to get more ideas and suggestions
  • 61. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Stakeholder identification tools 61 12/7/2023
  • 62. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 1 - Directions of influence 62 12/7/2023 Upwards Outwards Downwards Sidewards the peers (other project managers who are in competition for scarce project resources or who collaborate in sharing resources or information • senior management • sponsor • steering committee the team or specialists contributing knowledge or skills in a temporary capacity • suppliers • government departments • the public • end users • regulators PMO
  • 63. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 2 - External & Internal environment analysis 63 12/7/2023 External stakeholders • Suppliers • Customers • End Users • Regulatory Bodies Internal stakeholders • Governing Bodies • Projects • Steering committees PMO • PMO Head • PMO Team
  • 64. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 3 – SWOT analysis – usage in identifying stakeholders 64 12/7/2023 Weaknesses Strengths Opportunities Threats Positive Negative External Internal Stakeholders Register Opportunities arise from strengths Threats resulting from weaknesses Who can support the project on different stages? Who brings threats to the project? Who can prevent it?
  • 65. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Stakeholder Understanding & Analysis tools 65 12/7/2023
  • 66. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 4 – Prompt lists 66 12/7/2023 PESTLE Political Economic Social Technological Legal Environmental TECOP Technical Environmental Commercial Operational Political SPECTRUM Socio-cultural Political Economic Competitive Technological Regulatory/legal Uncertainty/risk Market
  • 67. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 5 - REGISTER 67 12/7/2023 Stakeholder Power Interest Influence Priority Needs Stakeholder 1 4 5 20 High • Need A • Need B • Need C Stakeholder 2 3 5 15 Medium • Need A • Need B • Need C Stakeholder 3 5 2 10 Medium • Need A Stakeholder 4 2 3 6 Low • Need A • Need B
  • 68. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 6 - Stakeholder engagement assessment matrix 68 12/7/2023 Stakeholder Unaware Resistant Neutral Supportive Leading Stakeholder 1 C D Stakeholder 2 C D Stakeholder 3 C D Levels of engagement: • Unaware - Unaware of the project and potential impacts. • Resistant - Aware of the project but resistant to any changes • Neutral - Aware of the project, but neither supportive nor unsupportive. • Supportive - Aware of the project and supportive of the work and its outcomes. • Leading - Aware of the project and potential impacts and actively engaged. b a c d e
  • 69. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Stakeholder Prioritization tools 69 12/7/2023
  • 70. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 7 - Power/interest grid (example) 70 12/7/2023 • PM • Subject Matter Expert • Executive • BA • Sponsor • Regulator • Customer • Supplier • Developer&Tester • Trainer • Internal User • Helpdesk • System Admin Power Interest
  • 71. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 8 - Strategic Importance/Current Engagement grid 71 12/7/2023 Strategic importance Current Engagement Low level of engagement but of high strategic importance Good level of engagement and of high strategic importance Low level of engagement but of limited strategic importance Good level of engagement but of limited strategic importance Improve Maintain Back burner Divert
  • 72. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Tool 9 - Salience model 72 12/7/2023 2 3 6 8 Urgency Legitimacy Dormant Discretionary Demanding Dominant Dangerous Dependent Defenitive Non- stakeholder 1 2 3 4 5 6 7 1 5 4 Power 7 8
  • 73. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Additional web resources • https://deeprojectmanager.com/pmo-stakeholders/ • https://www.knowledgehut.com/blog/project-management/how-to- identifying-project-stakeholders • https://www.projectmanager.com/guides/stakeholder-management • https://pmbasics101.com/how-to-identify-stakeholders/ • https://uk.indeed.com/career-advice/career-development/identify- stakeholders 73 12/7/2023
  • 74. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com What/Who are the most priority stakeholders for your PMO? Why? 74 12/7/2023 • ? •
  • 75. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Домашнє завдання Наприкінці курсу Вам необхідно буде презентувати рішення та план по впровадженню/оновленню PMO ваших/обраних компаній з урахуванням знань та практик, отриманих на заняттях курсу. З заняття #2 у Вашій презентації мають міститися обґрунтування: 1. Яка готовність організації до PMO та який поточний рівень розвитку проєктного управління? 2. Який очікується обсяг робіт та завдань PMO? 3. Хто основні (пріоритетні) стейкхолдери PMO і яка їх роль? 75 12/7/2023
  • 76. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com We are open to support your initiatives MichaelVidyakin https://www.linkedin.com/in/mvidyakin/ +380 97 926 1101 https://leopolisgroup.com/ +44 20 3239 7745 Michael@leopolisgroup.com 76 12/7/2023
  • 78. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com 78 12/7/2023
  • 79. 2023 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com Лелека несе якісний такмед для ЗСУ – ПІДТРИМАЙ! 79 12/7/2023 www.Leleka.Care facebook.com/LelekaFoundation