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Gartner Headquarters                                                    Gartner EXP Premier Reports




                                                                                                                            Taking Your PMO to the Next Stage
Corporate Headquarters
                                                                        Growing IT’s Contribution: The 2006 CIO Agenda
56 Top Gallant Road
                                                                        January 2006
Stamford, CT 06902-7700
U.S.A.                                                                  Building Business Smarts in IS
+1 203 964 0096                                                         November 2005
                                                                        Overcoming Change Obstacles in the Public Sector
Europe Headquarters                                                     October 2005
Tamesis
The Glanty                                                              Applying Enterprise Architecture
Egham                                                                   September 2005
Surrey, TW20 9AW                                                        The CIO’s Personal Contribution Scorecard

                                                                                                                                                                Taking Your PMO
UNITED KINGDOM                                                          July 2005
+44 1784 431611
                                                                        Changing Business Processes
Asia/Pacific Headquarters
Gartner Australasia Pty. Ltd.
                                                                        May 2005
                                                                        Perception Is Reality: Communication Strategies                                         to the Next Stage
Level 9, 141 Walker Street                                              for Public Sector CIOs
North Sydney                                                            March 2005
New South Wales 2060                                                                                                                                                        Contents
                                                                        Playing to Your Advantage: Proven Practices
AUSTRALIA                                                                                                                                                                   Executive summary                                                                   4
                                                                        of Midsize-Enterprise CIOs
+61 2 9459 4600                                                                                                                                                             PMOs evolve through three stages as they mature to meet ever-increasing business
                                                                        March 2005                                                                                          needs. CIOs must ensure that their PMOs master the basics of their current stage
                                                                                                                                                                            before evolving them to the next stage.
Japan Headquarters                                                      Delivering IT’s Contribution: The 2005 CIO Agenda
Gartner Japan, Ltd.                                                     January 2005                                                                            Section 1   PMOs must evolve as business needs change                                           8
                                                                                                                                                                            As business needs evolve from risk reduction to resource management to business
Aobadai Hills 6F                                                                                                                                                            growth, CIOs evolve their PMOs through the project, program and portfolio
                                                                        Making Time: The Office of the CIO                                                                  management stages.
4-7-7 Aobadai, Meguro-Ku
                                                                        November 2004
Tokyo, 153-0042                                                                                                                                                 Section 2   Reduce business risk with a project management
JAPAN                                                                   The New Shape of IS                                                                                 office                                                                             18
+81 3 3481 3670                                                         September 2004                                                                                      A project management office can reduce the risk of project schedule slippage,
                                                                                                                                                                            cost overruns and scope creep by focusing on a standard project management
                                                                                                                                                                            process, basic tools and project manager development.
                                                                        Improving the CEO’s View of the CIO
Latin America Headquarters                                              July 2004                                                                               Section 3   Optimize resource use with a program management
Gartner do Brasil                                                                                                                                                           office                                                                             32
Av. Das Nações Unidas, 12.551 – 9º andar                                Upgrading the IS Scorecard                                                                          A program management office can improve resource management across
                                                                                                                                                                            business and IT projects and programs by combining related business and IS
World Trade Center – Broklin Novo                                       May 2004                                                                                            projects into programs, as well as by implementing governance, communications
                                                                                                                                                                            programs and collaboration tools.
04578-903 – São Paulo – SP                                              Preparing for the Upswing: The 2004 CIO Agenda
BRAZIL                                                                  March 2004                                                                              Section 4   Contribute to business growth through a portfolio
                                                                                                                                                                            management office                                                                  46
+55 11 3443 1509
                                                                        Building Brilliant Business Cases                                                                   A portfolio management office can contribute to business growth by optimizing
                                                                                                                                                                            the mix of project and program investments and focusing on benefits realization
                                                                        January 2004                                                                                        and knowledge management.
For more information,
visit gartner.com.                                                      CIO Credibility: Proven Practices From the                                              Appendix A Organizing the PMO                                                                  62
                                                                        Public Sector                                                                           Appendix B Representative PMO tools and frameworks                                             66
                                                                        November 2003                                                                                       Further reading                                                                    67
                                                                        Geosourcing IS: Is It Right for You?
                                                                        November 2003
© 2006 Gartner, Inc. and/or its affiliates. All rights reserved.
Gartner is a registered trademark of Gartner, Inc. or its affiliates.
GARTNEREXPPREMIER20060315                                                                                                                                                                                                                                       ®
Further reading
                                                                                                                                    Gartner EXP reports                                Eglund, R., Graham, R. and Dinsmore, P.,
                                                                                                                                                                                       Creating the Project Office: A Manager’s
                                                                                                                                    Aron, D., Tucker, C. and Hunter, R., Show Me       Guide to Leading Organizational Change,
                                                                                                                                    the Money: Advanced Practices in Benefits          San Francisco, CA: Jossey-Bass, 2003
                                                                                                                                    Realization, Gartner EXP CIO Signature Report,
                                                                                                                                    December 2005                                      Jeffery, M. and Leliveld, I., “Best Practices in IT
                                                                                                                                                                                       Portfolio Management,” MIT Sloan Management
                                                                                                                                    Tucker, C. and Rowsell-Jones, A., Getting          Review, Spring 2004
                                                                                                                                    Priorities Straight, Gartner EXP Premier Report,
                                                                                                                                    September 2002                                     Maizlish, B. and Handler, R., IT Portfolio
                                                                                                                                                                                       Management Step-by-Step: Unlocking the
                                                                                                                                    Tucker, C. and Woolfe, R., Building Brilliant      Business Value of Technology, Hoboken, NJ:
                                                                                                                                    Business Cases, Gartner EXP Premier Report,        John Wiley & Sons, Inc., 2005
                                                                                                                                    January 2004
                                                                                                                                                                                       Pennypacker, J. S., PM Solutions’ Project
                                                                                                                                                                                       Portfolio Management Maturity Model,
                                                                                                                                    Core research                                      Havertown, PA: Center for Business
                                                                                                                                                                                       Practices, 2005
                                                                                                                                    Light, M. and Stang, D., “Magic Quadrant for
                                                                                                                                    IT Project and Portfolio Management—2005,”         Project Management Institute, A Guide to the
                                                                                                                                    G00129208, June 22, 2005                           Project Management Body of Knowledge,
                                                                                                                                                                                       Newton Square, PA: PMI Publications, 2004
                                                                                                                                    Light, M., Rosser, B. and Hayward, S.,
                                                                                                                                    “Realizing the Benefits of Project and Portfolio   Rad, P. F. and Levin, G., The Advanced Project
                                                                                                                                    Management,” G00125673, January 4, 2005            Management Office, Boca Raton, FL: St. Lucie
                                                                                                                                                                                       Press, 2002
                                                                                                                                    Light, M., Hotle, M., Stang, D. and Heine, J.,
                                                                                                                                    “Project Management Office: The IT Control
                                                                                                                                    Tower,” G00132836, November 22, 2005               Web sites
                                                                                                                                                                                       Project Management Institute, www.pmi.org
                                                                                                                                    Books and other publications
                                                                                                                                                                                       The Online Community for IT Project Managers,
Layout/Production: Gartner Corporate Marketing                                                                                      Crawford, J. K., The Strategic Project Office: A   www.gantthead.com
                                                                                                                                    Guide to Improving Organizational Performance,
Entire contents © 2006 Gartner, Inc. and/or its affiliates. All rights reserved. Reproduction of this publication in any form
                                                                                                                                    New York, NY: Marcel Dekker, Inc., 2002
without prior written permission is forbidden. The information contained herein has been obtained from sources believed to
be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner
shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof.
The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions
expressed herein are subject to change without notice.

© 2006 Gartner, Inc.

                                                                                                                                    Taking Your PMO to the Next Stage                                                                        67
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Taking Your PMO to the Next Stage                                                                        1
Foreword
    PMOs are evolving. Shifting from the tactical to

    the strategic, PMOs are performing a widening

    range of work. They’re supporting business

    programs outside IS, such as product launches

    and post-merger integration. And they’re helping

    ensure that the enterprise invests in the best set

    of projects and programs—and achieves the most

    benefits. Their stakeholder set is broadening as well

    to include business partners and external resources.




2                                                Gartner EXP Premier
PMOs evolve through three stages to perform        Ken LeBlanc, EMC Corporation; Merissa
a wider range of work. Each stage builds on        Smith, Hallmark UK; Jan Cronje and André
the prior stage. Moving from one to the next       Michau, Metropolitan Holdings Ltd.; Avi
depends both on the PMO’s maturity and the         Duvdevani and Ron Rigores, New York City
needs of the business. CIOs play a leading role    Housing Authority; Richard Shapiro, Royal
in this evolution.                                 Caribbean Cruises Ltd.; Patrick Anglard,
                                                   Thales Group; Ana Paula Keil, TIM Brazil;
Chuck Tucker and Hilda Agopian led the
                                                   and Valerie Adamo and Katherine McLean,
research on Taking Your PMO to the Next
                                                   Workplace Safety and Insurance Board
Stage. This report answers the question, How
                                                   (Ontario, Canada).
can CIOs make their PMOs more effective?
Fifteen CIOs, PMO heads and IS executives         • Other members of the Gartner EXP research
from 10 enterprises with established PMOs           team: Dave Aron, Mark McDonald, Tina
were interviewed as part of this research.          Nunno, Andrew Rowsell-Jones and Gartner
Their best practices and lessons learned are        adjunct researcher, Barbara McNurlin.
summarized in the report.                         • Other Gartner colleagues: Nicky Basset,
                                                    Francois Bonnel, Lyne Bouchard, Ione de
Many individuals from around the world
                                                    Almeida Coco, Tim Goetz, Robert Handler,
contributed to this work, including:
                                                    Amanda Hatten, Matt Hotle, David Lentz,
• Contributors to the case studies: San Retna,      Matt Light, Anna Maria Nenna, Venessa
  AAA of Northern California, Nevada and Utah;      Penov, Bridgette Randolph, Jonathan Rosen
  Garry Whatley and David McBeth, Corporate         and Ruth Steinberg.
  Express Australia Ltd.; Mike McLaughlin and




Taking Your PMO to the Next Stage                                                               3
Executive summary
    A PMO is a center of expertise that provides

    the organizational focus on improving the

    management of projects, programs and portfolios.

    PMOs evolve through three stages as they mature

    to meet ever-increasing business needs. CIOs

    play an important role in ensuring that their PMOs

    master the basics of their current stage, employ

    best practices and demonstrate results, before

    evolving them to the next stage.




4                                               Gartner EXP Premier
PMOs must evolve as business                                supplying tools and centrally tracking status.
needs change                                                The project management stage is where project
From the case studies it is clear that PMOs are             manager training, coaching and mentoring have
not static. They evolve over time through the               the most focus.
three stages—even though the term “PMO” is
                                                            High-level governance programs and
used to refer to all three. Through this evolution
                                                            communications programs are most frequently
the scope of work changes from tactical to
                                                            implemented at the program management
strategic, and the scope of initiatives changes
                                                            stage to coordinate business and IT projects.
from IT-intensive projects to combined
business-IT programs and finally to                         The portfolio management stage is where
enterprisewide initiatives (see figure below).              benefits realization management and knowledge
                                                            management most frequently take place.
Disciplines established in previous stages
don’t disappear. They provide the foundation                CIOs play an important role in matching the
to succeed in the current stage.                            PMO stage to business needs, and planning
                                                            the evolution. Getting too far out in front of the
PMOs at all three stages perform the basics of
                                                            business or lagging too far behind have similar
maintaining the project management process,
                                                            disadvantages.


  PMO scope of work and scope of initiatives change across the three stages

    Strategic

                                               Portfolio management
                                               • Portfolio scope definition
                                               • Overall investment, benefit, risk optimization
                                               • Active portfolio performance monitoring
                                               • Business environment change adaptation

                                               Program management
                                               • Comprehensive program planning
    Scope
                                               • Change and risk management
    of work
                                               • Coordination of project delivery
                                               • Measurement of results
                                               • Business-IS collaboration

                                               Project management
                                               • Initiation • Deliverables
                                               • Budget     • Scope
                                               • Schedule   • Risks
                                               • Resources • Metrics

    Tactical
                                                                 Scope of initiatives

                                               IT                     Business-IT                 Enterprise

Source: Adapted from New York City Housing Authority (NYCHA).

Taking Your PMO to the Next Stage                                                                                5
Reduce business risk with a                          management functions. A PMO cannot manage
    project management office                            complex functions if it still spends most of its
                                                         time on the basics.
    Defining and implementing an end-to-end
    project management process is the first step         At this level CIOs must focus on establishing
    in establishing a project management office.         an effective governance structure and
    This requires implementing a flexible project        communicating early and often with the
    management process and basic tools for               programs’ extended stakeholder groups.
    project planning and reporting.
                                                         In addition to being the communications hub, a
    CIOs should also devote resources to                 program office facilitates collaboration between
    developing competent project managers                business and IS project teams that are working
    through formal training, coaching and                in the same program.
    mentoring. Not all projects require the same
                                                         CIOs with mature program management offices
    level of experience. Use a mix of internal and
                                                         who can demonstrate improved program
    external hires, contractors and external service
                                                         delivery and resource utilization should start
    providers to provide project manager staffing
                                                         thinking about moving the PMO out of IS and
    flexibility.
                                                         evolving to the portfolio management stage.
    Once you have best practice basics in place,
    demonstrated improvement in project delivery         Contribute to business growth
    and gained credibility, consider broadening the      through a portfolio management
    PMO’s scope beyond IT-intensive projects and         office
    evolving to the program management stage.
                                                         Portfolio management offices contribute to
                                                         business growth by optimizing the enterprise’s
    Optimize resource use with a                         portfolio of projects and programs. They
    program management office                            allocate scarce resources toward enterprise
    The next stage in the PMO’s evolution is to          objectives, while factoring in risk, desired
    become a program management office.                  returns and interrelationships between these
    Program management offices coordinate related        investments.
    business and IT projects. Programs usually
                                                         The portfolio management office typically
    impact multiple stakeholders, last longer and
                                                         operates independently of IS, reporting to the
    involve external resources, so they are more
                                                         CFO, COO or other senior executive. This gives
    complex to manage. Cross-project visibility and
                                                         it the clout to raise portfolio management issues
    focusing on the interdependencies between
                                                         to the highest levels and make decisions based
    related projects allow program management
                                                         on the best interests of the entire enterprise.
    offices to ensure that the right business and IS
    resources are used at the right time.                CIOs can help extend the portfolio management
                                                         office’s influence by getting it involved in
    To move to the program management stage, an
                                                         strategy formulation and benefits realization.
    enterprise must first institutionalize its project


6                                                                                       Gartner EXP Premier
They can upgrade governance to deal with                       The figure below summarizes best practices
portfolio-level issues.                                        for improving PMO effectiveness. The three-
                                                               stage framework and the self-assessment at
PMO staff now require new competencies, such
                                                               the end of each section can help CIOs manage
as strategic planning and investment analysis,
                                                               expectations, fill in gaps and plan when and
and more powerful tools to measure, manage
                                                               how to take their PMO to the next stage.
and report benefits realization, portfolio
alignment and health, and PMO performance,                     See Appendix A to see how case-study
as well as capture lessons learned and promote                 CIOs organize their PMO resources. Refer
positive change.                                               to Appendix B for representative examples
                                                               of PMO tools and frameworks.



  Summary of PMO case-study best practices

  Reduce business risk with a            Optimize resource use with a           Contribute to business growth
  project management office              program management office              through a portfolio management
                                                                                office

  1. Establish a flexible, end-to-end    1. Expand PMO oversight to include     1. Position the PMO organizationally
     project management process that        business and IT projects, and          outside IS to give it indepen-
     balances rigor with overhead           projects sourced externally            dence and senior management
                                                                                   sponsorship

  2. Support the process with            2. Institutionalize project manage-    2. Enlarge the breadth of PMO
     simple-to-use tools to plan,           ment discipline into the culture       influence to extend from strategy
     manage, track and report all           to free up resources to focus          formulation through benefits
     project activities                     on program management                  realization

  3. Make the tools available over       3. Use program-level visibility to     3. Design governance to focus
     your intranet along with examples      identify and alleviate resource        senior management on strategic
     and instructional support              contention issues                      issues

  4. Provide formal training, coaching   4. Educate the business, IS and        4. Integrate benefits realization into
     and mentoring to both IS and the       external stakeholders about their      the entire life cycle starting with
     business to develop competent          shared responsibilities for            planning, and report on it
     project managers                       ensuring program success               regularly

  5. Be flexible in sourcing and         5. Expand governance body              5. Implement portfolio management
     providing project management           membership to represent the            tools that provide high-level
     resources                              expanded stakeholder set of            visibility and analysis that inform
                                            programs                               decision makers

  6. Provide project management          6. Establish communications            6. Broaden PMO staff competen-
     assistance, e.g., consulting,          programs to keep all stakehold-        cies to include strategic planning
     problem solving, audits and            ers informed and committed to          and investment analysis
     expertise                              program success

                                         7. Provide collaboration tools         7. Implement knowledge manage-
                                            to facilitate the work of the          ment tools to capture, categorize
                                            business, IS and external              and distribute best practices and
                                            project teams                          lessons learned



Taking Your PMO to the Next Stage                                                                                        7
PMOs must
evolve as business
needs change




8                Gartner EXP Premier
1
                                    As business needs change—from risk
                                    reduction to resource management, to
                                    accelerating business growth—CIOs
                                    must help their PMOs evolve through the
                                    associated project, program and portfolio
                                    management stages in a planned fashion.




Taking Your PMO to the Next Stage                                               9
1
                                    PMOs change their scope as they evolve
                                    A PMO is a center of expertise that provides the organizational focus
                                    on improving the management of projects, programs and portfolios.

                                    This report is based on analysis of 10 case studies from enterprises
                                    with established PMOs, and review of the PMO literature. The analysis
                                    uncovered a three-stage pattern of PMO maturity, shaped by the PMO’s
                                    own capabilities and by the changing needs of the business.

                                    But there is no standard terminology. All 10 case-study PMOs use
                                    different names for the office (see figure below). They also have different
                                    reporting relationships and organizational structures, which may or may
                                    not include project and program managers (see Appendix A).

                                    This report is structured around the three stages. All PMOs must start
                                    at the initial stage, project management, before they can evolve to the
                                    program management and then the portfolio management stages. The
                                    scope of work changes from tactical to strategic, while the scope of
                                    initiatives broadens from IT-intensive projects to enterprisewide business
                                    and IT initiatives (see figure opposite).

                                    A project management office is usually created to solve a specific
                                    problem: generally, the IS organization’s inability to deliver IT projects
                                    on time, on budget and in scope. It focuses on implementing the basic
                                    project management process, introducing simple tools and developing
                                    competent project managers. Project managers may “live” in the PMO,
                                    or in different IT units, such as application development, or in the
                                    business. Seven of the 10 case-study enterprises have their project
                                    and program managers reporting into their PMO.



     The 10 case studies use varying names for their PMOs

     PMO name                                                 Case-study organization

     Enterprise Portfolio Management Office (EPMO)            AAA of Northern California, Nevada and Utah
     Program Management Office (PMO)                          Corporate Express Australia Ltd.
     IT Project Management Office (IT PMO)                    EMC Corporation
     Program Management Office (PMO)                          Hallmark UK
     Project Support Office (PSO)                             Metropolitan Holdings Ltd.
     Virtual IT Project Management Office (VPMO)              New York City Housing Authority (NYCHA)
     Program Administration (PA) and PMO                      Royal Caribbean Cruises Ltd.
     Program Office (PO)                                      Thales Group
     IT Program Management Office (IT PMO)                    TIM Brazil
     Strategic Project Management Office (SPMO)               Workplace Safety and Insurance Board (WSIB)


10                                                                                               Gartner EXP Premier
It can easily take two to three years for a project         business and IS resources.
management office to build a track record of
delivery performance. The disciplines                       Evolving to a portfolio management office
established at the project management stage                 starts when greater visibility into program costs
underpin the two subsequent stages. Once the                (provided by the program management office)
PMO has earned credibility with the business,               prompts senior executives to question whether
it usually receives requests to help manage                 the enterprise is making the right investments
business projects. At this point it needs to                and getting the best returns. The portfolio
evolve to the next stage.                                   management office provides the information,
                                                            analysis and oversight to answer these
A program management office manages
                                                            questions enterprisewide. Governance focuses
programs as well as projects. A program is a
group of related business and IT projects that              senior management on strategic issues. The
support a common goal. The PMO focus shifts                 PMO is supported by portfolio management
to the more complex management of programs,                 and knowledge management tools.
which are larger, take longer, require more
                                                            For clarity and simplicity, this report assumes
business-IS collaboration and involve a more
                                                            a single PMO in an enterprise. In reality, large
diverse set of stakeholders. Program-level
                                                            enterprises may have many, both in the
visibility and governance give a program
management office a way to better coordinate                business and IS, and at different stages.


  PMO scope of work and scope of initiatives change across the three stages

    Strategic

                                               Portfolio management
                                               • Portfolio scope definition
                                               • Overall investment, benefit, risk optimization
                                               • Active portfolio performance monitoring
                                               • Business environment change adaptation

                                               Program management
                                               • Comprehensive program planning
    Scope
                                               • Change and risk management
    of work
                                               • Coordination of project delivery
                                               • Measurement of results
                                               • Business-IS collaboration

                                               Project management
                                               • Initiation • Deliverables
                                               • Budget     • Scope
                                               • Schedule   • Risks
                                               • Resources • Metrics

    Tactical
                                                                 Scope of initiatives

                                               IT                     Business-IT                 Enterprise

Source: Adapted from New York City Housing Authority (NYCHA).

Taking Your PMO to the Next Stage                                                                               11
1
         As they evolve, PMOs add new functions
         PMO characteristics change significantly at each stage. The disciplines
         established in previous stages don’t disappear; they provide the
         foundation, credibility and competencies to succeed in the current
         stage. Each stage builds on the accomplishments of the previous
         stage(s) (see top figure opposite).

         Four case-study PMOs are at the project management stage; four
         are at the program management stage; and two are at the portfolio
         management stage. But some are also planning their evolution, or
         are in transition, to the next stage. The bottom figure opposite lists the
         functions performed by all the case-study PMOs at the same stage,
         and shows which functions they retain from previous stages.

         But the commonalities and differentiators are clear:
         • All the case-study PMOs at all three stages perform the basics of
           maintaining the project management process, supplying tools and
           centrally tracking status.
         • The project management stage is where project manager training,
           coaching and mentoring most frequently take place.
         • The program management stage is where high-level governance,
           collaboration and communications programs are most frequently
           implemented.
         • The portfolio management stage is where benefits realization
           management and knowledge management most frequently occur.




12                                                                 Gartner EXP Premier
The characteristics of each PMO stage differ

                    Project management                Program management               Portfolio management

  Benefit           Reduce risk                       Optimize resource use            Contribute to growth

  Focus             Project mgmt. process,            Program coordination,            Investment optimization,
                    project manager development       governance, communications       benefits realization

  Scope             Individual IT projects            Multiproject programs            Proposals/projects/assets

  Typically         CIO or application                Usually CIO, but sometimes to    Outside IS, e.g., CFO, COO
  reports to        development                       the business

  Role              Project manager                   Program coordinator, program     Investment advisor, portfolio
                                                      overseer                         overseer

  Engagement        Primarily IT project managers     Business leaders, external       Senior management decision
                    and project owners                partners, ESPs                   makers

  Tools             Time tracking, project            Program management,              Portfolio management,
                    management, risk mgmt.,           resource management,             knowledge management
                    deliverable templates             collaboration

  Skills            Process implementation            Change management                Benefits realization

  Metrics           Project and project manager       Program performance and          Portfolio and PMO
                    performance                       resource utilization             performance




  PMOs add functions as they evolve, while retaining most functions from
  previous stages

                        PMO functions                                         Case-study frequency

                        Knowledge management
      Portfolio
     management         Benefits realization management

                        Project portfolio management

                        Communications programs
      Program
                        Governance body support
     management
                        Management and delivery of programs

                        Project manager mentoring and coaching

                        Project manager training coordination

       Project          Standards, methods and best practices
     management
                        Centralized tracking/reporting for all projects

                        Tool selection/implementation/support

                        Process development/implementation/support


Taking Your PMO to the Next Stage                                                                                      13
1
                                     Corporate Express Australia Ltd.’s PMO provides a wide range
                                     of services

                                     Corporate Express (CE) Australia Ltd. is one of Australia and New
                                     Zealand’s leading suppliers of business supplies and services. CE’s
                                     PMO is in transition from the program management stage to the
                                     portfolio management stage. The PMO manager and 15 project
                                     manager contractors currently oversee 54 active projects with costs
                                     of AU$300,000 (US$221,000) to AU$5 million (US$3.7 million). The
                                     figure below shows the wide range of functions the PMO provides.

                                     CE’s PMO services range from tactical to strategic:
                                     1. Operational Services handles the methodology, tools and actual
                                        running of projects.
                                     2. Competency Services provides education and training services for
                                        both the business and IS and acts as the center of excellence and
                                        repository for project management knowledge.
                                     3. Strategic Services handles portfolio management, strategic alignment
                                        of projects and operational and management reporting.




      Corporate Express Australia Ltd.’s PMO services range from tactical
      to strategic

                                                             PMO



        Operational Services                  Competency Services                  Strategic Services

        • Provides PMO methodologies,         • Provides project management        • Reports at a strategic,
          templates, tools and governance       expert assistance                    executive level

        • Project managers directly “run”     • Offers project management          • Manages strategic priorities
          projects                              training to project managers and     and milestones for projects
                                                the business
                                                                                   • Prioritizes and aligns projects
                                              • Acts as central repository of        to the business strategy and
                                                project management knowledge         objectives

                     Tactical                                                                   Strategic


     Source: Adapted from Corporate Express Australia Ltd.




14                                                                                                  Gartner EXP Premier
Case Study:

   Corporate Express Australia Ltd.—Moving from program management to portfolio management


   Corporate Express (CE) Australia Ltd., headquartered in      steering committee will be able to select projects that
   Sydney, is one of Australia and New Zealand’s leading        support the business strategy and stop or reorient
   suppliers of business essentials, such as office and         those that don’t.”
   computer supplies, business furniture and print
   management services. Its 2,100 staff in 42 locations         CE is expanding its PMO education to business
   generate revenues of AU$1 billion (US$750 million).          people, to help them be better project sponsors,
                                                                team members and system testers. The PMO
   CE’s IS organization faced similar issues as other IS        methodology is also expanding to include a detailed
   organizations: how to better deliver infrastructure and      change management strategy and its associated
   development projects, how to more effectively use            communications plans and computer-based training.
   existing operational resources and how to maximize
   business benefits in an environment of too many              PMO management is evaluating using the enterprise
   projects. To meet business expectations, IS needed           content management systems as the central repository
   greater control over its projects, which meant instituting   for all project documentation. And the PMO is
   governance.                                                  implementing a scorecard that initially measures the
                                                                overall performance of the PMO and all projects, the
   CE’s business culture was not project-oriented. In fact,     progress of each individual project, the performance of
   the business executives feared that a PMO would add          each project manager and the effectiveness of risk
   bureaucratic overhead and reduce their entrepreneurial       management.
   success. But CE’s need to comply with Sarbanes-
   Oxley and the PMO’s success in delivering projects           The long-term aim is to measure each competency
   changed management’s mind; they saw the PMO’s                area in the Project Management Institute Project
   value and became its advocates.                              Management Book of Knowledge (PMBOK). Benefits
                                                                realization will also become a new and central focus
                                                                of the PMO.
   Moving toward portfolio management
   The CIO formed a PMO steering committee,
                                                                Lessons learned
   comprising himself, the CEO, COO, CFO, chief
   logistics officer and the general managers of major          The following factors have contributed to the success
   regions and strategic supply. The committee’s charter        of CE’s PMO:
   is to prioritize and align all proposed projects against
                                                                • Getting the basics implemented quickly and matching
   the organization’s strategic plans to ensure maximum
                                                                  project management methodology and approach to
   benefits realization from investments, enforce the
                                                                  CE’s maturity level
   project management process and identify and eliminate
   roadblocks to project success.                               • Improving the delivery on a few very visible projects,
                                                                  to demonstrate value, earn credibility and develop
   To consolidate projects and provide the basis of
                                                                  key business advocates to help sell the concept
   portfolio management, the PMO is implementing
                                                                  enterprisewide
   Microsoft Project Server and the Enterprise Project
   Management (EPM) tool suite. “It is critical that all        • Investing in tools ahead of the need, to deal with
   projects align with the business strategies to ensure          expected challenges, such as managing resources
   control and the delivery of business benefits,” says           across multiple projects
   David McBeth, manager, PMO. “This will help us
   identify potential resource contention and give us an        Based on interviews with, and material from, Garry
   enterprise-level view of the project portfolio and the       Whatley, CIO, and David McBeth, manager, PMO,
   organizational resource commitments. The PMO                 Corporate Express Australia Ltd., December 2005.




Taking Your PMO to the Next Stage                                                                                          15
1
“Understand the role         Plan to evolve your PMO to meet changing
 the business wants          business needs
 the PMO to play. Don’t
                             Because of the long lead time required to set up a project management
 deliver a battleship
                             office and to demonstrate results, planning should start as soon as the
 solution you can’t
                             need is recognized. This is the job of the CIO because the initial work of
 support and that the
                             PMOs is typically with IT-intensive projects. From there, though, the
 business doesn’t need.”
                             PMO can evolve.
     — Mike McLaughlin
       Director              New York City Housing Authority (NYCHA) is the largest housing
       IT PMO and cross-     authority in the U.S., serving 417,000 tenants. It has a three-year
       functional services
       EMC Corporation       plan to provide more PMO functions as both the business and IS
                             mature (see box opposite).

                             CIOs play an important role in matching the PMO stage to business
                             needs. Getting too far out in front of the business or lagging too far
                             behind have similar disadvantages, as shown in the bottom figure
                             opposite.

                             The PMO and the business need to evolve and mature together.
                             CIOs must ensure that their PMOs are responsive to business needs:

                             1. Begin with a project management office to improve project delivery
                                and develop competent project managers—to reduce business risk.

                             2. Move to a program management office to coordinate business and
                                IS project teams—to better manage resources.

                             3. Evolve to a portfolio management office to optimize the enterprise’s
                                project portfolio and its realization of benefits—to contribute to
                                business growth.

                             The next three sections of the report discuss best practices for each
                             PMO stage.




16                                                                                       Gartner EXP Premier
NYCHA’s plan to enhance its IT PMO and governance model

    Q1 2006: Portfolio prioritization and management

    Q3 2006: IT procurement standards and processes

    Q2 2007: Knowledge management capability

    Q4 2007: Capability Maturity Model (CMM) assessment

    Q3 2008: IT governance model, version 2

    Q3 2009: Enterprise content management system




  Don’t let your PMO get too far ahead of, or behind, the business needs

  PMO stage

                    PMO is seen as overkill

    Portfolio       PMO has capabilities the                                                ds
   management       business does not value                                              nee
                                                                                    ness
                                                                                 usi
                                                                             et b
                                                                      to   me
                                                                 ties
    Program
                                                           pabili
   management                                          t ca
                                                   righ
                                             the
                                       O has
                                     PM                                PMO is seen as ineffective

     Project                                                           PMO does not have the capabilities
   management                                                          to meet business needs


                                                          Enable
                      Reduce                             resource                                Contribute
                       risk                             management                               to growth

                                                    Primary PMO benefit




Taking Your PMO to the Next Stage                                                                             17
Reduce business
risk with a project
management office




18                Gartner EXP Premier
2
                                    CIOs in enterprises with weak project
                                    management capabilities need to focus
                                    on the basics. By implementing a standard
                                    project management process, providing
                                    basic tools and developing competent
                                    project managers, a project management
                                    office can reduce the risk of project
                                    schedule slippages, cost overruns and
                                    scope creep.




Taking Your PMO to the Next Stage                                               19
2
         Project management offices develop the process,
         tools and managers
         CIOs can improve project delivery to reduce business risk by getting
         the basics right and building a strong foundation for subsequent PMO
         stages. The basics include a repeatable project management process,
         simple tools for project planning and reporting, and competent project
         managers—usually developed initially for IT-intensive projects (see top
         figure opposite).

         The PMOs in all four case studies at the project management stage
         focus on the same six basic functions:
         1. Process development, implementation and support
         2. Tool development, implementation and support
         3. Centralized tracking and reporting for all projects
         4. Standards, methods and best practices
         5. Project manager training and coordination
         6. Project manager mentoring and coaching

         All concentrate on improving the delivery of individual IT projects and
         developing the competencies of the project managers (see bottom
         figure opposite).




20                                                                Gartner EXP Premier
Project management focuses on the delivery of individual IT-intensive projects

  Strategic
                                                                                                          Project management
                             Portfolio management
                                                                                         Benefit          Reduce risk

                                                                                         Focus            Project management process,
                                                                                                          project manager development

  Scope                      Program management                                          Scope            Individual IT projects
  of work
                                                                                         Typically        CIO or application development
                                                                                         reports to

                                                                                         Role             Project manager
                             Project management
                             • Initiation   • Deliverables                               Engagement       Primarily IT project managers and
                             • Budget       • Scope                                                       project owners
                             • Schedule     • Risks
  Tactical                   • Resources    • Metrics                                    Tools            Time tracking, project management,
                                                                                                          risk management, deliverable templates

                              Scope of initiatives                                       Skills           Process implementation

                       IT          Business-IT               Enterprise                  Metrics          Project and project manager
                                                                                                          performance




  Project management offices develop the process, tools and managers that
  deliver projects
  Project management office functions                                Project management office case-study frequency
  Project manager mentoring and coaching
  Project manager training and coordination
  Standards, methods and best practices                                                            Most common project
  Centralized tracking/reporting for all projects                                                  management office functions

  Tool development/implementation/support
  Process development/implementation/support

                                                                         Project
                                                                     management office




Taking Your PMO to the Next Stage                                                                                                                  21
2
“We’d like our IT PMO        EMC Corporation’s IT PMO is driven by the business’s need for
 toolset to function         cost and resource control and SOX compliance
 like an MRP for IT.”
                             EMC Corporation is a leader in information storage and management
     — Mike McLaughlin       products and services. Its IT project management office (IT PMO)
       Director
                             focuses on process compliance, reporting and training.
       IT PMO and cross-
       functional services
                             It aims to improve compliance by implementing project management
       EMC Corporation
                             standards, increasing the use of project management tools and
                             improving the accuracy of project information for the business, senior
                             management and the CIO.

                             “We’re driven by the business’s need for better cost and resource
                             control, as well as SOX compliance,” says Mike McLaughlin, director,
                             IT PMO and cross-functional services. He has a staff of three project
                             managers and two business analysts who support and track
                             approximately 300 projects and 1,000 enhancements.




22                                                                                   Gartner EXP Premier
Case Study:

   EMC Corporation—Focusing on process compliance, reporting and training


   Based in Hopkinton, Massachusetts, U.S.A., EMC              accurate project status information. Then they will be
   Corporation is the world leader in products, services       comfortable canceling projects that are not meeting
   and solutions for information storage and its               criteria. “Being able to establish get-well plans early on
   management. EMC had 2004 revenues of US$8.2                 and track progress can make all the difference in
   billion and employs nearly 23,000 people worldwide.         ensuring timely and cost-effective delivery of solutions
                                                               to our customers,” says McLaughlin.
   EMC’s IT PMO has a staff of three project managers
   (PMs) and two business analysts (BAs). It is part of the    The BAs handle project reporting and support cross-
   IT group that handles central operations and IT portfolio   functional IT projects. They report project status and
   and process management. PMOs in other parts of              performance to the CIO for shared services, application
   EMC are responsible for very large projects and             development and client services. Information tracked
   corporate initiatives such as Six Sigma.                    includes the number of projects and the number of
                                                               business cases reviewed, approved and rejected.
   The IT PMO handles work typical at the project              Service-level statistics include applications uptime and
   management stage. It is responsible for supporting and      service desk statistics, such as time-to-answer and
   enforcing technical process standards, tracking project     time-to-resolve. Annually, the IT PMO reports on total
   and portfolio metrics and providing core training for       spend and resource allocation.
   PMs and BAs.

   One PM is managing the initial definition and design        Project manager training is key
   phase for a project and portfolio management (PPM)          EMC developed its project manager training with
   system. The new system will augment five systems            a local college. The training covers such topics as
   the IT PMO currently uses: Documentum’s eRoom,              business case development, business case financial
   which is used for project tracking and collaboration; an    and risk analysis and management, estimating
   internally developed time-tracking system; Excel, which     techniques, requirements gathering, project
   is used for project and portfolio management; and two       management methodology and client engagement.
   systems used to track smaller maintenance and               Some BAs are involved in training PMs and BAs in
   enhancement projects.                                       other EMC IS departments.

   The system will answer questions such as: “What will        “People will operate under the radar if they don’t see
   the next project gate require?” and “What is the real       the IT PMO’s value,” says McLaughlin. “So we offer
   status of a project based on milestones, spend and          training. Our approach is to influence and direct, rather
   estimates-to-complete?”                                     than dictate. I also expect to use more industry-
                                                               standard approaches and tools, such as supporting
   The other two PMs are currently working on
                                                               Project Management Institute training and certification.”
   implementing IT Infrastructure Library (ITIL) processes.
                                                               Based on interviews with, and material from, Mike
   Timely and accurate reporting builds trust                  McLaughlin, director, IT PMO and cross-functional
                                                               services, and Ken LeBlanc, senior director, IT business
   To improve the IT PMO’s processes, Mike McLaughlin,
                                                               operations and IT portfolio management, EMC
   the office’s director, is working on gaining the trust of
                                                               Corporation, November 2005.
   business management by giving them timely and




Taking Your PMO to the Next Stage                                                                                           23
2
“Because the                Implement a flexible project management process
 toolset enforces           and basic tools
 the methodology
                            Defining and implementing an end-to-end project management process
 and standards, I
                            is the first step for a project management office. Being flexible and
 don’t have to be
                            having “just enough process” is a best practice. To ensure consistency
 the bad cop. I
                            many enterprises use a standard methodology, like the one from the
 have more time to
                            Project Management Institute (PMI). But they develop a “lite” version to
 coach and advise
                            achieve a balance between process rigor and overhead.
 to increase project
 management skills.”        Corporate Express (CE) Australia Ltd. provides a good case in point.
     — Ron Rigores          When David McBeth was hired as the manager to set up the PMO in IS,
       Program manager      he focused initially on improving IT project delivery. During the first year,
       Virtual IT project   he developed a streamlined project management methodology, with a
       management office
       New York City        toolset and controls to support it. “Because CE is a fast-growing,
       Housing Authority    entrepreneurial enterprise, we wanted ‘just enough’ methodology to
                            improve project delivery, but not so much to slow it down,” says McBeth.

                            The “lite” version is based on the PMI’s Project Management Book
                            of Knowledge (PMBOK) and rapid application development (RAD)
                            techniques. The supporting tools for standard project proposals, project
                            plans and project status dashboards are based on Microsoft Office.
                            Microsoft Project is used for project scheduling and reporting.

                            New York City Housing Authority (NYCHA) facilitates process
                            compliance with tools

                            The New York City Housing Authority’s IT PMO took a different approach
                            to gain flexibility. Its methodology is risk-driven. Low-risk projects have
                            less stringent deliverables and reporting requirements than higher-risk
                            projects. The office provides Web-based tools to encourage process
                            compliance.

                            NYCHA’s IT PMO has taken its tools to the next level. The toolset not
                            only provides templates, examples and procedures, but also enforces
                            process compliance and delivers just-in-time training for project
                            managers over the intranet. See the key features of NYCHA’s toolset
                            in the figure opposite.

                            The IT PMO is virtual, in that none of the project managers report to
                            it. Its program manager, aided by consultants, supports 12 enterprise
                            projects, 12 infrastructure projects and proposed business projects.



24                                                                                    Gartner EXP Premier
Key features of NYCHA’s IT PMO toolset

  “Smart” templates and electronic project management forms
  • All project management forms and templates, such as project charter and change control forms, are available online
    for one-time data entry.

  Simple and route-specific workflow automation
  • All project management processes are available online as “clickable” processes that provide online help for the
    phase and required forms.
  • Each form has built-in business rules that reinforce the process, including executive review and approval, e-mail
    notifications and reporting.

  Integrated reporting
  • An executive dashboard includes project reporting using specific criteria, such as schedule and budget health.
  • Common reporting processes are automated and simplified by pre-loading data from project schedules or
    issues/risks lists into a weekly or monthly status report form.

Source: Adapted from New York City Housing Authority (NYCHA).




Taking Your PMO to the Next Stage                                                                                        25
2
“To develop project           Develop competent project managers through
 management skills, we        formal training, coaching and mentoring
 use and support the
                              CIOs should plan on devoting resources to developing competent
 Project Management
                              project managers to ensure long-term success. Case-study enterprises
 Institute methodology,
                              use many kinds of training. The Project Management Institute (PMI) is
 membership,
                              an often-used source. Many of the case-study enterprises use PMI for
 professional
                              professional development and certification.
 development and
 certification for our        Project management education and training are critical to Corporate
 project managers.”           Express Australia Ltd.’s success. The focus is on two areas. One is how
     — Katherine McLean       to use the methodology and tools, develop clear business requirements
       Director, strategic    and track benefits realization; both project managers and the business
       program management     receive this training, but the project managers receive more detailed
       office and business
       advisory services      training. The second area is understanding what a PMO is and how it
       Workplace Safety and   achieves buy-in; the business receives this training.
       Insurance Board
                              One of the most difficult changes that Mike McLaughlin, director of
                              EMC’s IT PMO and cross-functional services, has experienced while
                              coaching and mentoring project managers is helping them overcome the
                              fear of marking their projects yellow (at risk) or red (in trouble). Yet doing
                              so escalates the problem, gets management’s attention, resolves issues
                              and can gain additional support. By identifying problems and getting help
                              early, project managers can get their projects back to green status while
                              they still have time and budget to recover.




26                                                                                       Gartner EXP Premier
Case Study:

   New York City Housing Authority (NYCHA)—Benefiting from its virtual IT PMO and governance


   NYCHA is the largest housing authority in the U.S.,       their strategic importance all visible. Projects are more
   with 13,300 employees overseeing 36,700 residential       consistent, and the project management process is
   buildings and 181,000 apartments, as well as 86,000       continually improving.
   leased housing units. NYCHA serves 417,000 tenants.
                                                             NYCHA has realized significant benefits from its virtual
   NYCHA recently developed an enterprisewide IT             PMO. First, it has avoided spending US$1.2 million
   governance model (see page 38) and virtual IT project     hiring additional project managers. Second, it has
   management office (VPMO). Together they align             increased business unit satisfaction and collaboration
   NYCHA’s business and IT strategy and address four         with IT. Third, it has streamlined the business-IT five-
   major IT shortfalls:                                      year strategic planning process. Fourth, it has improved
                                                             the quality, timeliness and cost-effectiveness of its
   • High project failure and slippage rates
                                                             strategic IT programs. And fifth, it has increased IT
   • High rates of projects over budget                      capital spending because the business is confident the
                                                             work will be well managed.
   • Senior management inability to mitigate delays,
     failures and financial losses in a timely fashion
                                                             Five factors have contributed to success
   • Lack of transparency/visibility of project plans and
                                                             CIO Duvdevani attributes PMO and governance
     status reports
                                                             success to five factors:
   The PMO is virtual in that the project managers report    1. Negotiating and developing an IT governance model
   elsewhere. “The PMO integrates process flows,                that supports the use of a consistent and repeatable
   templates, online tools and collaborative techniques         project management methodology
   to standardize IT project selection and management
   throughout the organization,” said Ron Rigores, PMO       2. Aligning business and IT strategic initiatives by
   program manager. He reports to Avi Duvdevani, CIO            fostering a strategic partnership with senior
   and deputy general manager for IT.                           management

   The PMO toolset makes the virtual PMO possible.           3. Allowing the governance framework to guide the
   Rigores leverages the toolset, which uses mainly the         business through the project management life cycle,
   Microsoft Enterprise Project Management (EPM) suite,         developing a project management tool to enforce
   delivering it via a Web-based project management             compliance and letting the business determine the
   application integrated with Microsoft Project Server.        technology portfolio

                                                             4. Meeting frequently to review the IT project portfolio
   Via its IT governance framework and toolset, the PMO
   transfers project management skills to NYCHA staff,       5. Investing in project management training and
   including the business units and IT strategic partners.      mentoring
   Projects are managed by NYCHA staff, not the PMO.
   The PMO assists and mentors these dispersed project       “Together with the business, we can identify new
   managers in using the toolset, often on a just-in-time    revenue-generation and cost-saving opportunities.
   basis.                                                    Creating a partnership between IT and the business
                                                             owners leads to a more effective use of technology
                                                             and more successful projects,” says Duvdevani.
   PMO benefits are evident
   The PMO procedures and toolset have fostered              Based on interviews with, and material from, Avi
   organizational collaboration, document management         Duvdevani, CIO and deputy general manager for IT,
   and control over standard reporting. The PMO has also     and Ron Rigores, virtual IT project management office
   improved governance of IT projects by making the          program manager, New York City Housing Authority,
   projects, the issues and risks surrounding them and       November 2005.



Taking Your PMO to the Next Stage                                                                                        27
2
“We have seen a               Provide flexible project management staffing
 direct impact on
                              Demand for experienced project managers varies. Not all projects
 project success
                              require the same level of experience. A PMO best practice is to be
 rates as a result of
                              flexible by providing project manager resources from internal sources,
 implementing the
                              hiring externally and using contractors and external service providers.
 PMO. Early warning
 and intervention in          Corporate Express Australia Ltd.’s PMO selects qualified contractors as
 troubled projects            project managers to get the right expertise and experience for each
 have really begun            project, as well as to flex staffing levels based on demand. Initially,
 to pay off.”                 finding the hands-on, jack-of-all-trades type of project manager for its
     — Ken LeBlanc            mid-size business was challenging. The PMO learned to avoid selecting
       Senior director        project managers from very large companies because their approach
       IT business            was “overkill.”
       operations and IT
       portfolio management
                              TIM Brazil has outsourced part of its PMO
       EMC Corporation
                              TIM Brazil provides mobile phone service to 20 million subscribers.
                              Ana Paula Keil, senior manager of its IT program management office,
                              has outsourced part of the office to a large IT consulting firm. Of her
                              25 staff, 13 full-time equivalents are consultants. By using external
                              resources she has increased her staffing flexibility, added specialized
                              project management expertise and taken advantage of some of the
                              consultants’ tools. Her staff supports approximately 300 projects. The
                              project managers reside in other IT departments, such as application
                              solution delivery.

                              Best practice PMOs do more than just provide project managers and
                              tools. They provide other types of resources, such as consulting,
                              problem solving, audits and specialized expertise to ensure project
                              success.




28                                                                                    Gartner EXP Premier
Case Study:

   TIM Brazil—Upgrading its IT program management office


   TIM Brazil, headquartered in Rio de Janeiro, is a            • Commenced weekly follow-up on all projects in the IT
   subsidiary of Telecom Italia S.p.A. It provides mobile         portfolio
   phone services to 20 million subscribers in Brazil.
                                                                • Developed the ToDoList application to manage
   Its 7,500 employees generate revenues of over
                                                                  project follow-up
   US$1 billion.
                                                                • Worked with the presidential-level PMO to define an
   TIM Brazil created its first PMO to manage the rollout of      IT portfolio aligned with company strategies
   its GSM network. Now it has seven PMOs. A strategic
   PMO reports directly to the president. The six major         • Managed special projects for IT organizational
   lines of business, including IT, each have their own           change and balanced scorecards
   PMO.
                                                                • Customized the Microsoft Enterprise Project
   The IT PMO’s mission is to ensure that the IT portfolio        Management (EPM) suite to support the new
   aligns with company strategy, all the way through              methodology
   project follow-up. Its budget is 2 percent of the total IT
                                                                In 2005, Keil created 10 task forces to focus IT
   capital expenditure, which includes PM tools and
                                                                resources on important company problems. Their
   resources to follow up on projects. The IT PMO is
                                                                work is reviewed daily. At midyear she transferred
   responsible for: portfolio management, to ensure
                                                                responsibility for demand management to a newly
   alignment between IT projects and company strategies;
                                                                created relationship management function.
   project follow-up, to ensure on-time, on-cost, quality
   project delivery; selection and support of PMO tools;        This PMO function consolidates and reports all
   methodology, skills and coaching of project managers;        information about IT projects, including:
   and metrics and reports.
                                                                • Weekly reports to the IT steering committee and to its
                                                                  Italian parent
   The IT PMO is upgrading its capabilities and tools
   Ana Paula Keil became senior manager of the IT PMO           • Monthly status reports for all IT projects and task
   in mid-2003, reporting to the head of business IT. Her         force work
   staff of 25 includes external consultants but excludes       • Semiannual and annual performance summaries
   project managers who reside in the other IT
   departments, such as application solution delivery. She      • On-demand presentations about IT projects or IT
   also draws on external resources to gain staffing              strategic plans
   flexibility, project management expertise and tools.         In 2006, Keil expects to be more involved in developing
                                                                the IT strategic plan and reporting the status of the
   Her first priority was to develop a complete project
                                                                project portfolio to the board. She will work with the
   management methodology. What she developed is
                                                                presidential-level PMO to extend EPM to the other
   based on the Project Management Institute Book of
                                                                PMOs, and to include non-IT projects. “We will
   Knowledge (PMBOK), which transformed TIM Brazil’s
                                                                integrate projects into programs and develop high-level
   view of PMOs from managing IT projects to managing
                                                                company views of all programs, not just IT, for senior
   business projects.
                                                                management,” says Keil.
   During 2004, Keil rapidly upgraded the PMO’s
                                                                Based on interviews with, and material from, Ana Paula
   capabilities and tools:
                                                                Keil, senior manager, IT program management office,
   • Implemented a subset of the new PM methodology;            TIM Brazil, November 2005.
     divided the IT PMO team into strategic and
     operational activities




Taking Your PMO to the Next Stage                                                                                          29
2
         Assess your project management office against
         best practices
         Focusing on IT projects is the universal starting point for project
         management offices. CIOs should ensure that they have the basics
         in place before attempting to broaden the PMO’s scope beyond IT
         projects. If you’re starting from scratch, plan to recruit an experienced
         PMO leader and to spend at least two years establishing a consistent
         process, gaining compliance, improving delivery and measuring results.

         Use the self-assessment opposite to determine if you have best
         practices in place and to develop a plan to fill in any gaps.

         CIOs with high-scoring project management offices can start building
         management support for the next stage—a program management
         office—by demonstrating project management office successes and
         having business leaders advocate for the PMO by communicating why
         they value it. This will create momentum for expanding the PMO’s scope
         to include business projects and integrated programs comprising related
         business and IT projects.

         The program management office is the topic of the next section.




30                                                                Gartner EXP Premier
Do you have the basic project management elements in place?

                                                               Done poorly/   Done somewhat    Done         Done well/
                                                                 not at all       poorly    somewhat well   completely
                                                                    0               1            2             3

 1. We have established a flexible, end-to-end project
    management process that balances rigor with overhead

 2. We support the process with easy-to-use tools to
    consistently plan, track, manage and report all projects

 3. We make tools available over our intranet along with
    supporting materials to increase adoption and compliance

 4. We provide formal training, coaching and mentoring to
    both IS and the business to develop competent project
    managers

 5. We are flexible in sourcing and providing project
    management resources

 6. We provide project management assistance, such as
    consulting, problem solving, audits and resources

 Scoring:
 14 – 18 You’re in good shape; start planning for the next stage                       Total score
  7 – 13 Determine what else stakeholders need and fill in the gaps
  0 – 6 Focus on the basics; get the process and trained project managers in place




Taking Your PMO to the Next Stage                                                                                        31
Optimize resource
use with a program
management office




32               Gartner EXP Premier
3
                                    CIOs can improve resource management and
                                    ensure that the best resources are available
                                    for the most important projects by combining
                                    business and IT projects with common goals
                                    into programs that are managed by a program
                                    management office.




Taking Your PMO to the Next Stage                                                  33
3
“As the project and        Program management offices focus on
 system managers           coordinating related business and IT projects
 become more skilled
                           CIOs increase the scope of their program management offices
 in project management,
                           by integrating business projects and focusing more on the
 the PMO will shift
                           interdependencies between related projects, to ensure that the right
 focus from ensuring
                           business and IS resources are used. Programs usually impact multiple
 delivery to improving
                           stakeholders, last longer and include external resources, so they are
 project integration
                           more complex to manage. CIOs should provide leadership in setting
 and planning for
                           up governance bodies and communications programs because both
 interdependencies at
                           are needed to make coordinated decisions across the organizational
 the program level.”
                           boundaries that programs cross (see top figure opposite).
     — Ana Paula Keil
       Senior manager      All four case-study PMOs at the program management stage focus on
       IT program          the management and delivery of programs, governance body support
       management office
       TIM Brazil          and communications programs. All also retain three of the most common
                           project management functions (see bottom figure opposite):
                           1. Centralized tracking and reporting for all projects
                           2. Tool selection, implementation and support
                           3. Process development, implementation and support

                           Metropolitan Holdings Ltd., a South African financial services
                           organization, distinguishes between project and program management
                           not by size or cost but by scope and breadth of change. For example,
                           some programs may have low cost, but have a huge impact on the
                           business—affecting a few thousand people or spanning multiple
                           disciplines. Some large programs are subdivided and managed as
                           individual projects but report at a program level. Ultimately, the project
                           board decides “program” or “project.”




34                                                                                   Gartner EXP Premier
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Gartner pmo best in class

  • 1. march2006 march2006 Gartner Headquarters Gartner EXP Premier Reports Taking Your PMO to the Next Stage Corporate Headquarters Growing IT’s Contribution: The 2006 CIO Agenda 56 Top Gallant Road January 2006 Stamford, CT 06902-7700 U.S.A. Building Business Smarts in IS +1 203 964 0096 November 2005 Overcoming Change Obstacles in the Public Sector Europe Headquarters October 2005 Tamesis The Glanty Applying Enterprise Architecture Egham September 2005 Surrey, TW20 9AW The CIO’s Personal Contribution Scorecard Taking Your PMO UNITED KINGDOM July 2005 +44 1784 431611 Changing Business Processes Asia/Pacific Headquarters Gartner Australasia Pty. Ltd. May 2005 Perception Is Reality: Communication Strategies to the Next Stage Level 9, 141 Walker Street for Public Sector CIOs North Sydney March 2005 New South Wales 2060 Contents Playing to Your Advantage: Proven Practices AUSTRALIA Executive summary 4 of Midsize-Enterprise CIOs +61 2 9459 4600 PMOs evolve through three stages as they mature to meet ever-increasing business March 2005 needs. CIOs must ensure that their PMOs master the basics of their current stage before evolving them to the next stage. Japan Headquarters Delivering IT’s Contribution: The 2005 CIO Agenda Gartner Japan, Ltd. January 2005 Section 1 PMOs must evolve as business needs change 8 As business needs evolve from risk reduction to resource management to business Aobadai Hills 6F growth, CIOs evolve their PMOs through the project, program and portfolio Making Time: The Office of the CIO management stages. 4-7-7 Aobadai, Meguro-Ku November 2004 Tokyo, 153-0042 Section 2 Reduce business risk with a project management JAPAN The New Shape of IS office 18 +81 3 3481 3670 September 2004 A project management office can reduce the risk of project schedule slippage, cost overruns and scope creep by focusing on a standard project management process, basic tools and project manager development. Improving the CEO’s View of the CIO Latin America Headquarters July 2004 Section 3 Optimize resource use with a program management Gartner do Brasil office 32 Av. Das Nações Unidas, 12.551 – 9º andar Upgrading the IS Scorecard A program management office can improve resource management across business and IT projects and programs by combining related business and IS World Trade Center – Broklin Novo May 2004 projects into programs, as well as by implementing governance, communications programs and collaboration tools. 04578-903 – São Paulo – SP Preparing for the Upswing: The 2004 CIO Agenda BRAZIL March 2004 Section 4 Contribute to business growth through a portfolio management office 46 +55 11 3443 1509 Building Brilliant Business Cases A portfolio management office can contribute to business growth by optimizing the mix of project and program investments and focusing on benefits realization January 2004 and knowledge management. For more information, visit gartner.com. CIO Credibility: Proven Practices From the Appendix A Organizing the PMO 62 Public Sector Appendix B Representative PMO tools and frameworks 66 November 2003 Further reading 67 Geosourcing IS: Is It Right for You? November 2003 © 2006 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. GARTNEREXPPREMIER20060315 ®
  • 2. Further reading Gartner EXP reports Eglund, R., Graham, R. and Dinsmore, P., Creating the Project Office: A Manager’s Aron, D., Tucker, C. and Hunter, R., Show Me Guide to Leading Organizational Change, the Money: Advanced Practices in Benefits San Francisco, CA: Jossey-Bass, 2003 Realization, Gartner EXP CIO Signature Report, December 2005 Jeffery, M. and Leliveld, I., “Best Practices in IT Portfolio Management,” MIT Sloan Management Tucker, C. and Rowsell-Jones, A., Getting Review, Spring 2004 Priorities Straight, Gartner EXP Premier Report, September 2002 Maizlish, B. and Handler, R., IT Portfolio Management Step-by-Step: Unlocking the Tucker, C. and Woolfe, R., Building Brilliant Business Value of Technology, Hoboken, NJ: Business Cases, Gartner EXP Premier Report, John Wiley & Sons, Inc., 2005 January 2004 Pennypacker, J. S., PM Solutions’ Project Portfolio Management Maturity Model, Core research Havertown, PA: Center for Business Practices, 2005 Light, M. and Stang, D., “Magic Quadrant for IT Project and Portfolio Management—2005,” Project Management Institute, A Guide to the G00129208, June 22, 2005 Project Management Body of Knowledge, Newton Square, PA: PMI Publications, 2004 Light, M., Rosser, B. and Hayward, S., “Realizing the Benefits of Project and Portfolio Rad, P. F. and Levin, G., The Advanced Project Management,” G00125673, January 4, 2005 Management Office, Boca Raton, FL: St. Lucie Press, 2002 Light, M., Hotle, M., Stang, D. and Heine, J., “Project Management Office: The IT Control Tower,” G00132836, November 22, 2005 Web sites Project Management Institute, www.pmi.org Books and other publications The Online Community for IT Project Managers, Layout/Production: Gartner Corporate Marketing Crawford, J. K., The Strategic Project Office: A www.gantthead.com Guide to Improving Organizational Performance, Entire contents © 2006 Gartner, Inc. and/or its affiliates. All rights reserved. Reproduction of this publication in any form New York, NY: Marcel Dekker, Inc., 2002 without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice. © 2006 Gartner, Inc. Taking Your PMO to the Next Stage 67
  • 3. With 3,300 members worldwide, Gartner Executive Programs is the world’s largest membership organization specifically for CIOs. Designed to enhance senior-executive productivity and professional development, Gartner Executive Programs provides a single source of research expertise, one-to-one counsel and the shared intelligence of thousands of senior IT executives. Gartner EXP Premier is the ultimate one-stop shop for CIOs of medium-to-large businesses—a comprehensive, definitive resource that provides you with exclusive analysis and reports, preferential access to Gartner research specialists, inspirational roundtables and a variety of networking events. We know how difficult it is to keep up with technology. Gartner EXP Premier is the CIO’s gateway into everything Gartner has to offer. A dedicated relationship manager finds the answers you need and tailors them to your own context. The convenience of a single source of knowledge, one-to-one counsel, personalized service and the assurance of Gartner objectivity and insight—that’s Gartner EXP Premier. About Gartner Gartner, Inc. (NYSE: IT) delivers the technology-related insight necessary for our clients to make the right decisions, every day. Gartner serves 10,000 client organizations, including chief information officers and other senior IT executives in corporations and government agencies, as well as technology companies and the investment community. The Company consists of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 3,700 associates, including 1,200 research analysts and consultants in 75 countries worldwide. For more information, visit gartner.com. Taking Your PMO to the Next Stage 1
  • 4. Foreword PMOs are evolving. Shifting from the tactical to the strategic, PMOs are performing a widening range of work. They’re supporting business programs outside IS, such as product launches and post-merger integration. And they’re helping ensure that the enterprise invests in the best set of projects and programs—and achieves the most benefits. Their stakeholder set is broadening as well to include business partners and external resources. 2 Gartner EXP Premier
  • 5. PMOs evolve through three stages to perform Ken LeBlanc, EMC Corporation; Merissa a wider range of work. Each stage builds on Smith, Hallmark UK; Jan Cronje and André the prior stage. Moving from one to the next Michau, Metropolitan Holdings Ltd.; Avi depends both on the PMO’s maturity and the Duvdevani and Ron Rigores, New York City needs of the business. CIOs play a leading role Housing Authority; Richard Shapiro, Royal in this evolution. Caribbean Cruises Ltd.; Patrick Anglard, Thales Group; Ana Paula Keil, TIM Brazil; Chuck Tucker and Hilda Agopian led the and Valerie Adamo and Katherine McLean, research on Taking Your PMO to the Next Workplace Safety and Insurance Board Stage. This report answers the question, How (Ontario, Canada). can CIOs make their PMOs more effective? Fifteen CIOs, PMO heads and IS executives • Other members of the Gartner EXP research from 10 enterprises with established PMOs team: Dave Aron, Mark McDonald, Tina were interviewed as part of this research. Nunno, Andrew Rowsell-Jones and Gartner Their best practices and lessons learned are adjunct researcher, Barbara McNurlin. summarized in the report. • Other Gartner colleagues: Nicky Basset, Francois Bonnel, Lyne Bouchard, Ione de Many individuals from around the world Almeida Coco, Tim Goetz, Robert Handler, contributed to this work, including: Amanda Hatten, Matt Hotle, David Lentz, • Contributors to the case studies: San Retna, Matt Light, Anna Maria Nenna, Venessa AAA of Northern California, Nevada and Utah; Penov, Bridgette Randolph, Jonathan Rosen Garry Whatley and David McBeth, Corporate and Ruth Steinberg. Express Australia Ltd.; Mike McLaughlin and Taking Your PMO to the Next Stage 3
  • 6. Executive summary A PMO is a center of expertise that provides the organizational focus on improving the management of projects, programs and portfolios. PMOs evolve through three stages as they mature to meet ever-increasing business needs. CIOs play an important role in ensuring that their PMOs master the basics of their current stage, employ best practices and demonstrate results, before evolving them to the next stage. 4 Gartner EXP Premier
  • 7. PMOs must evolve as business supplying tools and centrally tracking status. needs change The project management stage is where project From the case studies it is clear that PMOs are manager training, coaching and mentoring have not static. They evolve over time through the the most focus. three stages—even though the term “PMO” is High-level governance programs and used to refer to all three. Through this evolution communications programs are most frequently the scope of work changes from tactical to implemented at the program management strategic, and the scope of initiatives changes stage to coordinate business and IT projects. from IT-intensive projects to combined business-IT programs and finally to The portfolio management stage is where enterprisewide initiatives (see figure below). benefits realization management and knowledge management most frequently take place. Disciplines established in previous stages don’t disappear. They provide the foundation CIOs play an important role in matching the to succeed in the current stage. PMO stage to business needs, and planning the evolution. Getting too far out in front of the PMOs at all three stages perform the basics of business or lagging too far behind have similar maintaining the project management process, disadvantages. PMO scope of work and scope of initiatives change across the three stages Strategic Portfolio management • Portfolio scope definition • Overall investment, benefit, risk optimization • Active portfolio performance monitoring • Business environment change adaptation Program management • Comprehensive program planning Scope • Change and risk management of work • Coordination of project delivery • Measurement of results • Business-IS collaboration Project management • Initiation • Deliverables • Budget • Scope • Schedule • Risks • Resources • Metrics Tactical Scope of initiatives IT Business-IT Enterprise Source: Adapted from New York City Housing Authority (NYCHA). Taking Your PMO to the Next Stage 5
  • 8. Reduce business risk with a management functions. A PMO cannot manage project management office complex functions if it still spends most of its time on the basics. Defining and implementing an end-to-end project management process is the first step At this level CIOs must focus on establishing in establishing a project management office. an effective governance structure and This requires implementing a flexible project communicating early and often with the management process and basic tools for programs’ extended stakeholder groups. project planning and reporting. In addition to being the communications hub, a CIOs should also devote resources to program office facilitates collaboration between developing competent project managers business and IS project teams that are working through formal training, coaching and in the same program. mentoring. Not all projects require the same CIOs with mature program management offices level of experience. Use a mix of internal and who can demonstrate improved program external hires, contractors and external service delivery and resource utilization should start providers to provide project manager staffing thinking about moving the PMO out of IS and flexibility. evolving to the portfolio management stage. Once you have best practice basics in place, demonstrated improvement in project delivery Contribute to business growth and gained credibility, consider broadening the through a portfolio management PMO’s scope beyond IT-intensive projects and office evolving to the program management stage. Portfolio management offices contribute to business growth by optimizing the enterprise’s Optimize resource use with a portfolio of projects and programs. They program management office allocate scarce resources toward enterprise The next stage in the PMO’s evolution is to objectives, while factoring in risk, desired become a program management office. returns and interrelationships between these Program management offices coordinate related investments. business and IT projects. Programs usually The portfolio management office typically impact multiple stakeholders, last longer and operates independently of IS, reporting to the involve external resources, so they are more CFO, COO or other senior executive. This gives complex to manage. Cross-project visibility and it the clout to raise portfolio management issues focusing on the interdependencies between to the highest levels and make decisions based related projects allow program management on the best interests of the entire enterprise. offices to ensure that the right business and IS resources are used at the right time. CIOs can help extend the portfolio management office’s influence by getting it involved in To move to the program management stage, an strategy formulation and benefits realization. enterprise must first institutionalize its project 6 Gartner EXP Premier
  • 9. They can upgrade governance to deal with The figure below summarizes best practices portfolio-level issues. for improving PMO effectiveness. The three- stage framework and the self-assessment at PMO staff now require new competencies, such the end of each section can help CIOs manage as strategic planning and investment analysis, expectations, fill in gaps and plan when and and more powerful tools to measure, manage how to take their PMO to the next stage. and report benefits realization, portfolio alignment and health, and PMO performance, See Appendix A to see how case-study as well as capture lessons learned and promote CIOs organize their PMO resources. Refer positive change. to Appendix B for representative examples of PMO tools and frameworks. Summary of PMO case-study best practices Reduce business risk with a Optimize resource use with a Contribute to business growth project management office program management office through a portfolio management office 1. Establish a flexible, end-to-end 1. Expand PMO oversight to include 1. Position the PMO organizationally project management process that business and IT projects, and outside IS to give it indepen- balances rigor with overhead projects sourced externally dence and senior management sponsorship 2. Support the process with 2. Institutionalize project manage- 2. Enlarge the breadth of PMO simple-to-use tools to plan, ment discipline into the culture influence to extend from strategy manage, track and report all to free up resources to focus formulation through benefits project activities on program management realization 3. Make the tools available over 3. Use program-level visibility to 3. Design governance to focus your intranet along with examples identify and alleviate resource senior management on strategic and instructional support contention issues issues 4. Provide formal training, coaching 4. Educate the business, IS and 4. Integrate benefits realization into and mentoring to both IS and the external stakeholders about their the entire life cycle starting with business to develop competent shared responsibilities for planning, and report on it project managers ensuring program success regularly 5. Be flexible in sourcing and 5. Expand governance body 5. Implement portfolio management providing project management membership to represent the tools that provide high-level resources expanded stakeholder set of visibility and analysis that inform programs decision makers 6. Provide project management 6. Establish communications 6. Broaden PMO staff competen- assistance, e.g., consulting, programs to keep all stakehold- cies to include strategic planning problem solving, audits and ers informed and committed to and investment analysis expertise program success 7. Provide collaboration tools 7. Implement knowledge manage- to facilitate the work of the ment tools to capture, categorize business, IS and external and distribute best practices and project teams lessons learned Taking Your PMO to the Next Stage 7
  • 10. PMOs must evolve as business needs change 8 Gartner EXP Premier
  • 11. 1 As business needs change—from risk reduction to resource management, to accelerating business growth—CIOs must help their PMOs evolve through the associated project, program and portfolio management stages in a planned fashion. Taking Your PMO to the Next Stage 9
  • 12. 1 PMOs change their scope as they evolve A PMO is a center of expertise that provides the organizational focus on improving the management of projects, programs and portfolios. This report is based on analysis of 10 case studies from enterprises with established PMOs, and review of the PMO literature. The analysis uncovered a three-stage pattern of PMO maturity, shaped by the PMO’s own capabilities and by the changing needs of the business. But there is no standard terminology. All 10 case-study PMOs use different names for the office (see figure below). They also have different reporting relationships and organizational structures, which may or may not include project and program managers (see Appendix A). This report is structured around the three stages. All PMOs must start at the initial stage, project management, before they can evolve to the program management and then the portfolio management stages. The scope of work changes from tactical to strategic, while the scope of initiatives broadens from IT-intensive projects to enterprisewide business and IT initiatives (see figure opposite). A project management office is usually created to solve a specific problem: generally, the IS organization’s inability to deliver IT projects on time, on budget and in scope. It focuses on implementing the basic project management process, introducing simple tools and developing competent project managers. Project managers may “live” in the PMO, or in different IT units, such as application development, or in the business. Seven of the 10 case-study enterprises have their project and program managers reporting into their PMO. The 10 case studies use varying names for their PMOs PMO name Case-study organization Enterprise Portfolio Management Office (EPMO) AAA of Northern California, Nevada and Utah Program Management Office (PMO) Corporate Express Australia Ltd. IT Project Management Office (IT PMO) EMC Corporation Program Management Office (PMO) Hallmark UK Project Support Office (PSO) Metropolitan Holdings Ltd. Virtual IT Project Management Office (VPMO) New York City Housing Authority (NYCHA) Program Administration (PA) and PMO Royal Caribbean Cruises Ltd. Program Office (PO) Thales Group IT Program Management Office (IT PMO) TIM Brazil Strategic Project Management Office (SPMO) Workplace Safety and Insurance Board (WSIB) 10 Gartner EXP Premier
  • 13. It can easily take two to three years for a project business and IS resources. management office to build a track record of delivery performance. The disciplines Evolving to a portfolio management office established at the project management stage starts when greater visibility into program costs underpin the two subsequent stages. Once the (provided by the program management office) PMO has earned credibility with the business, prompts senior executives to question whether it usually receives requests to help manage the enterprise is making the right investments business projects. At this point it needs to and getting the best returns. The portfolio evolve to the next stage. management office provides the information, analysis and oversight to answer these A program management office manages questions enterprisewide. Governance focuses programs as well as projects. A program is a group of related business and IT projects that senior management on strategic issues. The support a common goal. The PMO focus shifts PMO is supported by portfolio management to the more complex management of programs, and knowledge management tools. which are larger, take longer, require more For clarity and simplicity, this report assumes business-IS collaboration and involve a more a single PMO in an enterprise. In reality, large diverse set of stakeholders. Program-level enterprises may have many, both in the visibility and governance give a program management office a way to better coordinate business and IS, and at different stages. PMO scope of work and scope of initiatives change across the three stages Strategic Portfolio management • Portfolio scope definition • Overall investment, benefit, risk optimization • Active portfolio performance monitoring • Business environment change adaptation Program management • Comprehensive program planning Scope • Change and risk management of work • Coordination of project delivery • Measurement of results • Business-IS collaboration Project management • Initiation • Deliverables • Budget • Scope • Schedule • Risks • Resources • Metrics Tactical Scope of initiatives IT Business-IT Enterprise Source: Adapted from New York City Housing Authority (NYCHA). Taking Your PMO to the Next Stage 11
  • 14. 1 As they evolve, PMOs add new functions PMO characteristics change significantly at each stage. The disciplines established in previous stages don’t disappear; they provide the foundation, credibility and competencies to succeed in the current stage. Each stage builds on the accomplishments of the previous stage(s) (see top figure opposite). Four case-study PMOs are at the project management stage; four are at the program management stage; and two are at the portfolio management stage. But some are also planning their evolution, or are in transition, to the next stage. The bottom figure opposite lists the functions performed by all the case-study PMOs at the same stage, and shows which functions they retain from previous stages. But the commonalities and differentiators are clear: • All the case-study PMOs at all three stages perform the basics of maintaining the project management process, supplying tools and centrally tracking status. • The project management stage is where project manager training, coaching and mentoring most frequently take place. • The program management stage is where high-level governance, collaboration and communications programs are most frequently implemented. • The portfolio management stage is where benefits realization management and knowledge management most frequently occur. 12 Gartner EXP Premier
  • 15. The characteristics of each PMO stage differ Project management Program management Portfolio management Benefit Reduce risk Optimize resource use Contribute to growth Focus Project mgmt. process, Program coordination, Investment optimization, project manager development governance, communications benefits realization Scope Individual IT projects Multiproject programs Proposals/projects/assets Typically CIO or application Usually CIO, but sometimes to Outside IS, e.g., CFO, COO reports to development the business Role Project manager Program coordinator, program Investment advisor, portfolio overseer overseer Engagement Primarily IT project managers Business leaders, external Senior management decision and project owners partners, ESPs makers Tools Time tracking, project Program management, Portfolio management, management, risk mgmt., resource management, knowledge management deliverable templates collaboration Skills Process implementation Change management Benefits realization Metrics Project and project manager Program performance and Portfolio and PMO performance resource utilization performance PMOs add functions as they evolve, while retaining most functions from previous stages PMO functions Case-study frequency Knowledge management Portfolio management Benefits realization management Project portfolio management Communications programs Program Governance body support management Management and delivery of programs Project manager mentoring and coaching Project manager training coordination Project Standards, methods and best practices management Centralized tracking/reporting for all projects Tool selection/implementation/support Process development/implementation/support Taking Your PMO to the Next Stage 13
  • 16. 1 Corporate Express Australia Ltd.’s PMO provides a wide range of services Corporate Express (CE) Australia Ltd. is one of Australia and New Zealand’s leading suppliers of business supplies and services. CE’s PMO is in transition from the program management stage to the portfolio management stage. The PMO manager and 15 project manager contractors currently oversee 54 active projects with costs of AU$300,000 (US$221,000) to AU$5 million (US$3.7 million). The figure below shows the wide range of functions the PMO provides. CE’s PMO services range from tactical to strategic: 1. Operational Services handles the methodology, tools and actual running of projects. 2. Competency Services provides education and training services for both the business and IS and acts as the center of excellence and repository for project management knowledge. 3. Strategic Services handles portfolio management, strategic alignment of projects and operational and management reporting. Corporate Express Australia Ltd.’s PMO services range from tactical to strategic PMO Operational Services Competency Services Strategic Services • Provides PMO methodologies, • Provides project management • Reports at a strategic, templates, tools and governance expert assistance executive level • Project managers directly “run” • Offers project management • Manages strategic priorities projects training to project managers and and milestones for projects the business • Prioritizes and aligns projects • Acts as central repository of to the business strategy and project management knowledge objectives Tactical Strategic Source: Adapted from Corporate Express Australia Ltd. 14 Gartner EXP Premier
  • 17. Case Study: Corporate Express Australia Ltd.—Moving from program management to portfolio management Corporate Express (CE) Australia Ltd., headquartered in steering committee will be able to select projects that Sydney, is one of Australia and New Zealand’s leading support the business strategy and stop or reorient suppliers of business essentials, such as office and those that don’t.” computer supplies, business furniture and print management services. Its 2,100 staff in 42 locations CE is expanding its PMO education to business generate revenues of AU$1 billion (US$750 million). people, to help them be better project sponsors, team members and system testers. The PMO CE’s IS organization faced similar issues as other IS methodology is also expanding to include a detailed organizations: how to better deliver infrastructure and change management strategy and its associated development projects, how to more effectively use communications plans and computer-based training. existing operational resources and how to maximize business benefits in an environment of too many PMO management is evaluating using the enterprise projects. To meet business expectations, IS needed content management systems as the central repository greater control over its projects, which meant instituting for all project documentation. And the PMO is governance. implementing a scorecard that initially measures the overall performance of the PMO and all projects, the CE’s business culture was not project-oriented. In fact, progress of each individual project, the performance of the business executives feared that a PMO would add each project manager and the effectiveness of risk bureaucratic overhead and reduce their entrepreneurial management. success. But CE’s need to comply with Sarbanes- Oxley and the PMO’s success in delivering projects The long-term aim is to measure each competency changed management’s mind; they saw the PMO’s area in the Project Management Institute Project value and became its advocates. Management Book of Knowledge (PMBOK). Benefits realization will also become a new and central focus of the PMO. Moving toward portfolio management The CIO formed a PMO steering committee, Lessons learned comprising himself, the CEO, COO, CFO, chief logistics officer and the general managers of major The following factors have contributed to the success regions and strategic supply. The committee’s charter of CE’s PMO: is to prioritize and align all proposed projects against • Getting the basics implemented quickly and matching the organization’s strategic plans to ensure maximum project management methodology and approach to benefits realization from investments, enforce the CE’s maturity level project management process and identify and eliminate roadblocks to project success. • Improving the delivery on a few very visible projects, to demonstrate value, earn credibility and develop To consolidate projects and provide the basis of key business advocates to help sell the concept portfolio management, the PMO is implementing enterprisewide Microsoft Project Server and the Enterprise Project Management (EPM) tool suite. “It is critical that all • Investing in tools ahead of the need, to deal with projects align with the business strategies to ensure expected challenges, such as managing resources control and the delivery of business benefits,” says across multiple projects David McBeth, manager, PMO. “This will help us identify potential resource contention and give us an Based on interviews with, and material from, Garry enterprise-level view of the project portfolio and the Whatley, CIO, and David McBeth, manager, PMO, organizational resource commitments. The PMO Corporate Express Australia Ltd., December 2005. Taking Your PMO to the Next Stage 15
  • 18. 1 “Understand the role Plan to evolve your PMO to meet changing the business wants business needs the PMO to play. Don’t Because of the long lead time required to set up a project management deliver a battleship office and to demonstrate results, planning should start as soon as the solution you can’t need is recognized. This is the job of the CIO because the initial work of support and that the PMOs is typically with IT-intensive projects. From there, though, the business doesn’t need.” PMO can evolve. — Mike McLaughlin Director New York City Housing Authority (NYCHA) is the largest housing IT PMO and cross- authority in the U.S., serving 417,000 tenants. It has a three-year functional services EMC Corporation plan to provide more PMO functions as both the business and IS mature (see box opposite). CIOs play an important role in matching the PMO stage to business needs. Getting too far out in front of the business or lagging too far behind have similar disadvantages, as shown in the bottom figure opposite. The PMO and the business need to evolve and mature together. CIOs must ensure that their PMOs are responsive to business needs: 1. Begin with a project management office to improve project delivery and develop competent project managers—to reduce business risk. 2. Move to a program management office to coordinate business and IS project teams—to better manage resources. 3. Evolve to a portfolio management office to optimize the enterprise’s project portfolio and its realization of benefits—to contribute to business growth. The next three sections of the report discuss best practices for each PMO stage. 16 Gartner EXP Premier
  • 19. NYCHA’s plan to enhance its IT PMO and governance model Q1 2006: Portfolio prioritization and management Q3 2006: IT procurement standards and processes Q2 2007: Knowledge management capability Q4 2007: Capability Maturity Model (CMM) assessment Q3 2008: IT governance model, version 2 Q3 2009: Enterprise content management system Don’t let your PMO get too far ahead of, or behind, the business needs PMO stage PMO is seen as overkill Portfolio PMO has capabilities the ds management business does not value nee ness usi et b to me ties Program pabili management t ca righ the O has PM PMO is seen as ineffective Project PMO does not have the capabilities management to meet business needs Enable Reduce resource Contribute risk management to growth Primary PMO benefit Taking Your PMO to the Next Stage 17
  • 20. Reduce business risk with a project management office 18 Gartner EXP Premier
  • 21. 2 CIOs in enterprises with weak project management capabilities need to focus on the basics. By implementing a standard project management process, providing basic tools and developing competent project managers, a project management office can reduce the risk of project schedule slippages, cost overruns and scope creep. Taking Your PMO to the Next Stage 19
  • 22. 2 Project management offices develop the process, tools and managers CIOs can improve project delivery to reduce business risk by getting the basics right and building a strong foundation for subsequent PMO stages. The basics include a repeatable project management process, simple tools for project planning and reporting, and competent project managers—usually developed initially for IT-intensive projects (see top figure opposite). The PMOs in all four case studies at the project management stage focus on the same six basic functions: 1. Process development, implementation and support 2. Tool development, implementation and support 3. Centralized tracking and reporting for all projects 4. Standards, methods and best practices 5. Project manager training and coordination 6. Project manager mentoring and coaching All concentrate on improving the delivery of individual IT projects and developing the competencies of the project managers (see bottom figure opposite). 20 Gartner EXP Premier
  • 23. Project management focuses on the delivery of individual IT-intensive projects Strategic Project management Portfolio management Benefit Reduce risk Focus Project management process, project manager development Scope Program management Scope Individual IT projects of work Typically CIO or application development reports to Role Project manager Project management • Initiation • Deliverables Engagement Primarily IT project managers and • Budget • Scope project owners • Schedule • Risks Tactical • Resources • Metrics Tools Time tracking, project management, risk management, deliverable templates Scope of initiatives Skills Process implementation IT Business-IT Enterprise Metrics Project and project manager performance Project management offices develop the process, tools and managers that deliver projects Project management office functions Project management office case-study frequency Project manager mentoring and coaching Project manager training and coordination Standards, methods and best practices Most common project Centralized tracking/reporting for all projects management office functions Tool development/implementation/support Process development/implementation/support Project management office Taking Your PMO to the Next Stage 21
  • 24. 2 “We’d like our IT PMO EMC Corporation’s IT PMO is driven by the business’s need for toolset to function cost and resource control and SOX compliance like an MRP for IT.” EMC Corporation is a leader in information storage and management — Mike McLaughlin products and services. Its IT project management office (IT PMO) Director focuses on process compliance, reporting and training. IT PMO and cross- functional services It aims to improve compliance by implementing project management EMC Corporation standards, increasing the use of project management tools and improving the accuracy of project information for the business, senior management and the CIO. “We’re driven by the business’s need for better cost and resource control, as well as SOX compliance,” says Mike McLaughlin, director, IT PMO and cross-functional services. He has a staff of three project managers and two business analysts who support and track approximately 300 projects and 1,000 enhancements. 22 Gartner EXP Premier
  • 25. Case Study: EMC Corporation—Focusing on process compliance, reporting and training Based in Hopkinton, Massachusetts, U.S.A., EMC accurate project status information. Then they will be Corporation is the world leader in products, services comfortable canceling projects that are not meeting and solutions for information storage and its criteria. “Being able to establish get-well plans early on management. EMC had 2004 revenues of US$8.2 and track progress can make all the difference in billion and employs nearly 23,000 people worldwide. ensuring timely and cost-effective delivery of solutions to our customers,” says McLaughlin. EMC’s IT PMO has a staff of three project managers (PMs) and two business analysts (BAs). It is part of the The BAs handle project reporting and support cross- IT group that handles central operations and IT portfolio functional IT projects. They report project status and and process management. PMOs in other parts of performance to the CIO for shared services, application EMC are responsible for very large projects and development and client services. Information tracked corporate initiatives such as Six Sigma. includes the number of projects and the number of business cases reviewed, approved and rejected. The IT PMO handles work typical at the project Service-level statistics include applications uptime and management stage. It is responsible for supporting and service desk statistics, such as time-to-answer and enforcing technical process standards, tracking project time-to-resolve. Annually, the IT PMO reports on total and portfolio metrics and providing core training for spend and resource allocation. PMs and BAs. One PM is managing the initial definition and design Project manager training is key phase for a project and portfolio management (PPM) EMC developed its project manager training with system. The new system will augment five systems a local college. The training covers such topics as the IT PMO currently uses: Documentum’s eRoom, business case development, business case financial which is used for project tracking and collaboration; an and risk analysis and management, estimating internally developed time-tracking system; Excel, which techniques, requirements gathering, project is used for project and portfolio management; and two management methodology and client engagement. systems used to track smaller maintenance and Some BAs are involved in training PMs and BAs in enhancement projects. other EMC IS departments. The system will answer questions such as: “What will “People will operate under the radar if they don’t see the next project gate require?” and “What is the real the IT PMO’s value,” says McLaughlin. “So we offer status of a project based on milestones, spend and training. Our approach is to influence and direct, rather estimates-to-complete?” than dictate. I also expect to use more industry- standard approaches and tools, such as supporting The other two PMs are currently working on Project Management Institute training and certification.” implementing IT Infrastructure Library (ITIL) processes. Based on interviews with, and material from, Mike Timely and accurate reporting builds trust McLaughlin, director, IT PMO and cross-functional services, and Ken LeBlanc, senior director, IT business To improve the IT PMO’s processes, Mike McLaughlin, operations and IT portfolio management, EMC the office’s director, is working on gaining the trust of Corporation, November 2005. business management by giving them timely and Taking Your PMO to the Next Stage 23
  • 26. 2 “Because the Implement a flexible project management process toolset enforces and basic tools the methodology Defining and implementing an end-to-end project management process and standards, I is the first step for a project management office. Being flexible and don’t have to be having “just enough process” is a best practice. To ensure consistency the bad cop. I many enterprises use a standard methodology, like the one from the have more time to Project Management Institute (PMI). But they develop a “lite” version to coach and advise achieve a balance between process rigor and overhead. to increase project management skills.” Corporate Express (CE) Australia Ltd. provides a good case in point. — Ron Rigores When David McBeth was hired as the manager to set up the PMO in IS, Program manager he focused initially on improving IT project delivery. During the first year, Virtual IT project he developed a streamlined project management methodology, with a management office New York City toolset and controls to support it. “Because CE is a fast-growing, Housing Authority entrepreneurial enterprise, we wanted ‘just enough’ methodology to improve project delivery, but not so much to slow it down,” says McBeth. The “lite” version is based on the PMI’s Project Management Book of Knowledge (PMBOK) and rapid application development (RAD) techniques. The supporting tools for standard project proposals, project plans and project status dashboards are based on Microsoft Office. Microsoft Project is used for project scheduling and reporting. New York City Housing Authority (NYCHA) facilitates process compliance with tools The New York City Housing Authority’s IT PMO took a different approach to gain flexibility. Its methodology is risk-driven. Low-risk projects have less stringent deliverables and reporting requirements than higher-risk projects. The office provides Web-based tools to encourage process compliance. NYCHA’s IT PMO has taken its tools to the next level. The toolset not only provides templates, examples and procedures, but also enforces process compliance and delivers just-in-time training for project managers over the intranet. See the key features of NYCHA’s toolset in the figure opposite. The IT PMO is virtual, in that none of the project managers report to it. Its program manager, aided by consultants, supports 12 enterprise projects, 12 infrastructure projects and proposed business projects. 24 Gartner EXP Premier
  • 27. Key features of NYCHA’s IT PMO toolset “Smart” templates and electronic project management forms • All project management forms and templates, such as project charter and change control forms, are available online for one-time data entry. Simple and route-specific workflow automation • All project management processes are available online as “clickable” processes that provide online help for the phase and required forms. • Each form has built-in business rules that reinforce the process, including executive review and approval, e-mail notifications and reporting. Integrated reporting • An executive dashboard includes project reporting using specific criteria, such as schedule and budget health. • Common reporting processes are automated and simplified by pre-loading data from project schedules or issues/risks lists into a weekly or monthly status report form. Source: Adapted from New York City Housing Authority (NYCHA). Taking Your PMO to the Next Stage 25
  • 28. 2 “To develop project Develop competent project managers through management skills, we formal training, coaching and mentoring use and support the CIOs should plan on devoting resources to developing competent Project Management project managers to ensure long-term success. Case-study enterprises Institute methodology, use many kinds of training. The Project Management Institute (PMI) is membership, an often-used source. Many of the case-study enterprises use PMI for professional professional development and certification. development and certification for our Project management education and training are critical to Corporate project managers.” Express Australia Ltd.’s success. The focus is on two areas. One is how — Katherine McLean to use the methodology and tools, develop clear business requirements Director, strategic and track benefits realization; both project managers and the business program management receive this training, but the project managers receive more detailed office and business advisory services training. The second area is understanding what a PMO is and how it Workplace Safety and achieves buy-in; the business receives this training. Insurance Board One of the most difficult changes that Mike McLaughlin, director of EMC’s IT PMO and cross-functional services, has experienced while coaching and mentoring project managers is helping them overcome the fear of marking their projects yellow (at risk) or red (in trouble). Yet doing so escalates the problem, gets management’s attention, resolves issues and can gain additional support. By identifying problems and getting help early, project managers can get their projects back to green status while they still have time and budget to recover. 26 Gartner EXP Premier
  • 29. Case Study: New York City Housing Authority (NYCHA)—Benefiting from its virtual IT PMO and governance NYCHA is the largest housing authority in the U.S., their strategic importance all visible. Projects are more with 13,300 employees overseeing 36,700 residential consistent, and the project management process is buildings and 181,000 apartments, as well as 86,000 continually improving. leased housing units. NYCHA serves 417,000 tenants. NYCHA has realized significant benefits from its virtual NYCHA recently developed an enterprisewide IT PMO. First, it has avoided spending US$1.2 million governance model (see page 38) and virtual IT project hiring additional project managers. Second, it has management office (VPMO). Together they align increased business unit satisfaction and collaboration NYCHA’s business and IT strategy and address four with IT. Third, it has streamlined the business-IT five- major IT shortfalls: year strategic planning process. Fourth, it has improved the quality, timeliness and cost-effectiveness of its • High project failure and slippage rates strategic IT programs. And fifth, it has increased IT • High rates of projects over budget capital spending because the business is confident the work will be well managed. • Senior management inability to mitigate delays, failures and financial losses in a timely fashion Five factors have contributed to success • Lack of transparency/visibility of project plans and CIO Duvdevani attributes PMO and governance status reports success to five factors: The PMO is virtual in that the project managers report 1. Negotiating and developing an IT governance model elsewhere. “The PMO integrates process flows, that supports the use of a consistent and repeatable templates, online tools and collaborative techniques project management methodology to standardize IT project selection and management throughout the organization,” said Ron Rigores, PMO 2. Aligning business and IT strategic initiatives by program manager. He reports to Avi Duvdevani, CIO fostering a strategic partnership with senior and deputy general manager for IT. management The PMO toolset makes the virtual PMO possible. 3. Allowing the governance framework to guide the Rigores leverages the toolset, which uses mainly the business through the project management life cycle, Microsoft Enterprise Project Management (EPM) suite, developing a project management tool to enforce delivering it via a Web-based project management compliance and letting the business determine the application integrated with Microsoft Project Server. technology portfolio 4. Meeting frequently to review the IT project portfolio Via its IT governance framework and toolset, the PMO transfers project management skills to NYCHA staff, 5. Investing in project management training and including the business units and IT strategic partners. mentoring Projects are managed by NYCHA staff, not the PMO. The PMO assists and mentors these dispersed project “Together with the business, we can identify new managers in using the toolset, often on a just-in-time revenue-generation and cost-saving opportunities. basis. Creating a partnership between IT and the business owners leads to a more effective use of technology and more successful projects,” says Duvdevani. PMO benefits are evident The PMO procedures and toolset have fostered Based on interviews with, and material from, Avi organizational collaboration, document management Duvdevani, CIO and deputy general manager for IT, and control over standard reporting. The PMO has also and Ron Rigores, virtual IT project management office improved governance of IT projects by making the program manager, New York City Housing Authority, projects, the issues and risks surrounding them and November 2005. Taking Your PMO to the Next Stage 27
  • 30. 2 “We have seen a Provide flexible project management staffing direct impact on Demand for experienced project managers varies. Not all projects project success require the same level of experience. A PMO best practice is to be rates as a result of flexible by providing project manager resources from internal sources, implementing the hiring externally and using contractors and external service providers. PMO. Early warning and intervention in Corporate Express Australia Ltd.’s PMO selects qualified contractors as troubled projects project managers to get the right expertise and experience for each have really begun project, as well as to flex staffing levels based on demand. Initially, to pay off.” finding the hands-on, jack-of-all-trades type of project manager for its — Ken LeBlanc mid-size business was challenging. The PMO learned to avoid selecting Senior director project managers from very large companies because their approach IT business was “overkill.” operations and IT portfolio management TIM Brazil has outsourced part of its PMO EMC Corporation TIM Brazil provides mobile phone service to 20 million subscribers. Ana Paula Keil, senior manager of its IT program management office, has outsourced part of the office to a large IT consulting firm. Of her 25 staff, 13 full-time equivalents are consultants. By using external resources she has increased her staffing flexibility, added specialized project management expertise and taken advantage of some of the consultants’ tools. Her staff supports approximately 300 projects. The project managers reside in other IT departments, such as application solution delivery. Best practice PMOs do more than just provide project managers and tools. They provide other types of resources, such as consulting, problem solving, audits and specialized expertise to ensure project success. 28 Gartner EXP Premier
  • 31. Case Study: TIM Brazil—Upgrading its IT program management office TIM Brazil, headquartered in Rio de Janeiro, is a • Commenced weekly follow-up on all projects in the IT subsidiary of Telecom Italia S.p.A. It provides mobile portfolio phone services to 20 million subscribers in Brazil. • Developed the ToDoList application to manage Its 7,500 employees generate revenues of over project follow-up US$1 billion. • Worked with the presidential-level PMO to define an TIM Brazil created its first PMO to manage the rollout of IT portfolio aligned with company strategies its GSM network. Now it has seven PMOs. A strategic PMO reports directly to the president. The six major • Managed special projects for IT organizational lines of business, including IT, each have their own change and balanced scorecards PMO. • Customized the Microsoft Enterprise Project The IT PMO’s mission is to ensure that the IT portfolio Management (EPM) suite to support the new aligns with company strategy, all the way through methodology project follow-up. Its budget is 2 percent of the total IT In 2005, Keil created 10 task forces to focus IT capital expenditure, which includes PM tools and resources on important company problems. Their resources to follow up on projects. The IT PMO is work is reviewed daily. At midyear she transferred responsible for: portfolio management, to ensure responsibility for demand management to a newly alignment between IT projects and company strategies; created relationship management function. project follow-up, to ensure on-time, on-cost, quality project delivery; selection and support of PMO tools; This PMO function consolidates and reports all methodology, skills and coaching of project managers; information about IT projects, including: and metrics and reports. • Weekly reports to the IT steering committee and to its Italian parent The IT PMO is upgrading its capabilities and tools Ana Paula Keil became senior manager of the IT PMO • Monthly status reports for all IT projects and task in mid-2003, reporting to the head of business IT. Her force work staff of 25 includes external consultants but excludes • Semiannual and annual performance summaries project managers who reside in the other IT departments, such as application solution delivery. She • On-demand presentations about IT projects or IT also draws on external resources to gain staffing strategic plans flexibility, project management expertise and tools. In 2006, Keil expects to be more involved in developing the IT strategic plan and reporting the status of the Her first priority was to develop a complete project project portfolio to the board. She will work with the management methodology. What she developed is presidential-level PMO to extend EPM to the other based on the Project Management Institute Book of PMOs, and to include non-IT projects. “We will Knowledge (PMBOK), which transformed TIM Brazil’s integrate projects into programs and develop high-level view of PMOs from managing IT projects to managing company views of all programs, not just IT, for senior business projects. management,” says Keil. During 2004, Keil rapidly upgraded the PMO’s Based on interviews with, and material from, Ana Paula capabilities and tools: Keil, senior manager, IT program management office, • Implemented a subset of the new PM methodology; TIM Brazil, November 2005. divided the IT PMO team into strategic and operational activities Taking Your PMO to the Next Stage 29
  • 32. 2 Assess your project management office against best practices Focusing on IT projects is the universal starting point for project management offices. CIOs should ensure that they have the basics in place before attempting to broaden the PMO’s scope beyond IT projects. If you’re starting from scratch, plan to recruit an experienced PMO leader and to spend at least two years establishing a consistent process, gaining compliance, improving delivery and measuring results. Use the self-assessment opposite to determine if you have best practices in place and to develop a plan to fill in any gaps. CIOs with high-scoring project management offices can start building management support for the next stage—a program management office—by demonstrating project management office successes and having business leaders advocate for the PMO by communicating why they value it. This will create momentum for expanding the PMO’s scope to include business projects and integrated programs comprising related business and IT projects. The program management office is the topic of the next section. 30 Gartner EXP Premier
  • 33. Do you have the basic project management elements in place? Done poorly/ Done somewhat Done Done well/ not at all poorly somewhat well completely 0 1 2 3 1. We have established a flexible, end-to-end project management process that balances rigor with overhead 2. We support the process with easy-to-use tools to consistently plan, track, manage and report all projects 3. We make tools available over our intranet along with supporting materials to increase adoption and compliance 4. We provide formal training, coaching and mentoring to both IS and the business to develop competent project managers 5. We are flexible in sourcing and providing project management resources 6. We provide project management assistance, such as consulting, problem solving, audits and resources Scoring: 14 – 18 You’re in good shape; start planning for the next stage Total score 7 – 13 Determine what else stakeholders need and fill in the gaps 0 – 6 Focus on the basics; get the process and trained project managers in place Taking Your PMO to the Next Stage 31
  • 34. Optimize resource use with a program management office 32 Gartner EXP Premier
  • 35. 3 CIOs can improve resource management and ensure that the best resources are available for the most important projects by combining business and IT projects with common goals into programs that are managed by a program management office. Taking Your PMO to the Next Stage 33
  • 36. 3 “As the project and Program management offices focus on system managers coordinating related business and IT projects become more skilled CIOs increase the scope of their program management offices in project management, by integrating business projects and focusing more on the the PMO will shift interdependencies between related projects, to ensure that the right focus from ensuring business and IS resources are used. Programs usually impact multiple delivery to improving stakeholders, last longer and include external resources, so they are project integration more complex to manage. CIOs should provide leadership in setting and planning for up governance bodies and communications programs because both interdependencies at are needed to make coordinated decisions across the organizational the program level.” boundaries that programs cross (see top figure opposite). — Ana Paula Keil Senior manager All four case-study PMOs at the program management stage focus on IT program the management and delivery of programs, governance body support management office TIM Brazil and communications programs. All also retain three of the most common project management functions (see bottom figure opposite): 1. Centralized tracking and reporting for all projects 2. Tool selection, implementation and support 3. Process development, implementation and support Metropolitan Holdings Ltd., a South African financial services organization, distinguishes between project and program management not by size or cost but by scope and breadth of change. For example, some programs may have low cost, but have a huge impact on the business—affecting a few thousand people or spanning multiple disciplines. Some large programs are subdivided and managed as individual projects but report at a program level. Ultimately, the project board decides “program” or “project.” 34 Gartner EXP Premier