The document discusses establishing a project management office (PMO) to standardize project management practices, provide training and career development for project managers, and help align projects with business strategies. Key elements of an effective PMO include establishing governance over project selection and decision making, using a standardized project management process with stage gate reviews, implementing supporting tools and templates, and promoting continuous improvement of processes.

1. May 2016PMO DEPLOYMENT
Key Elements Overview
Lou Bahrmasel

2.  Promotes the discipline of project management
processes and maturation of portfolio management,
maximizing business strategies
 Provides an opportunity for project managers to grow
and learn
 Formalized training
 Cross pollinate experiences through “lunch and learns”
 Use of lessons learned
 Professionalize and enable a career path for project
managers
ADVANTAGES OF A PMO FOR PROJECT MANAGEMENT
PMO introduction

3.  Standardization
 Project management practices
 Training and best practices for project management
 Centralization
 Metrics for project portfolio, i.e. project status, budget status, etc.
 Project and portfolio visibility to Executive Leadership
 Development, deployment and ownership of select business
processes, i.e. product development, vendor selection, software tool
selection, etc.
 Workflows
 Templates
 Training
 Oversees management of:
 Projects and programs
 Project management resources
EXAMPLE PMO GOALS
Scope and goals of PMO to
be confirmed with Executive
Management
PMO introduction

4.  Governance
 Project selection aligned to business strategy
 Portfolio accountability
 Decision point and escalation
 Process or work flow
 Aligned to organization structure
 Include corporate emphasis on customer delivery, i.e. “rapid delivery”, “high level of
quality”, etc.
 Supporting tools, templates
 Checklists
 Data/metric collection
 Training and reference guides
 Active users of the process
 Overview for Executive Management
 Continuous improvement
 Feedback from users
 Changes in organization structure or corporate strategies
KEY ELEMENTS OF PMO
PMO introduction

5. Project governance is the management framework within which
project decisions are made.
 Address key project decision points, such as:
 Project authorization
 Hand offs:
 R&D to Product Engineering
 Product Engineering to Manufacturing
 Other defined key milestones preceding financial commitment
 Project closure
 Consider different levels of governance
 Project Steering Committee (PSC): oversee NPD, high profile, etc.
 Product Operations Committee (POC): oversee sustaining product
activities
DEFINITION
Governance

6. PROJECT SELECTION
Project
Proposal
Project
Proposal
Project
Proposal
Project
Proposal
Project
Proposal
Selected
Project
Authorized leadership
from representative
functional areas
(Marketing,
Engineering,
Operations, Finance,
Regulatory, etc.)
Governance
• Market potential
• ROI
• Facilities investment
• Strategic alignment
• Portfolio fit
• Risks
• Legal or regulatory
Selection
Criteria
Notes:
1. Process would be similar for either
NPD or sustaining
2. Governance may differ by industry,
company and project
Project Steering
Committee
Governance

7.  Alignment of resources toward business strategic
plans
 Project definition, execution and delivery within their
domain in support of the business strategy
 Development and training of resources in alignment
with corporate strategy and technology
 Support and adherence to corporate processes
PROJECT STEERING COMMITTEE (PSC)
RESPONSIBILITIES
Business strategies established
at the C-level or management
Governance

8. PSC ALIGNMENT WITH EXECUTIVE TEAM
API and Appliance
Engineering PSC
Managed Service
Engineering PSC
Executive Team
Market Data
Engineering PSC
Corporate strategy,
fiscal budget, project
portfolio alignment,
points of escalation
• COO
• CTO
• CIO
• CFO
VP Engr + VP
Prod. Mgmt.
VP MDE + VP
Prod. Mgmt.
VP MSE + VP
Prod. Mgmt.
Exegy specific PSC definitions
Note:
• Larger companies may include other diverse membership
• This model has been tailored toward Exegy’s organization and
culture
Governance

9. PROJECT MANAGEMENT PROCESS OUTLINE –
CLASSIC EXAMPLE
Definition PhaseResearch Phase Design Phase
Implementation PhaseValidation PhaseProduction Phase
A B
C
DE
Closure Phase
F
G
Project Manager assigned,
requirement analysis,
project plan (schedule,
resources, budget, etc.) ,
initial risk analysis,
resources identified,
financial and business
analysis, etc.
Feasibility, proof of concept,
market analysis begun,
initial business case
development, etc.
Design of product and
process, marketing and
sales plan, supply chain
design, etc.
Implementation of product
design, evolve marketing
and sales plan, evolve
supply chain needs,
finalizing BOM,
manufacturing procedures,
test, training, etc.
Product validation,
regulatory filings,
manufacturing process
validation, pilot run, sales
and field service training,
etc.
Ramp-up of production,
distribution center stocking,
sales plans executed
Prepare handoff for
sustaining teams, lessons
learned, project summary
to Executive Team
Notes:
1. Stage Gate approval through PSC
2. Most activities cross multiple phases
3. Activities vary by industry and company
4. Additional PSC reviews may be added or Phases combined
Process

10.  Provide natural milestones with which to measure
progress of project against baseline schedule
 Keeps PSC engaged in the performance of the
project portfolio
 Provides forum for PSC to review project and make
key decisions at critical points
 Enable critical examination:
 Does the project as scoped continue to align with the business
rationale?
WHY STAGE GATE REVIEWS
Process

11.  Deliverables
 What the project manager and team deliver to the decision point
 Decided at the output of the previous gate
 Based on a standard menu of deliverables for each gate
 Criteria
 Questions or metrics on which the project is judged in order to
determine a result (go/no-go/hold/rework) and make a decision.
 Outputs
 Results of the gate review; a decision (go/no-go/hold/rework)
 Approved action plan for the next gate
 List of deliverables and date for the next gate
STAGE GATE STRUCTURE
Process

12. PROJECT MANAGEMENT PROCESS OUTLINE –
EXEGY VERSION
Definition/ Design/Implementation PhaseResearch Phase
Validation PhaseClosure Phase
A
C
B
• Feasibility /proof of concept
• Market analysis and
business case development
• etc.
• Requirement analysis
and review
• Design and
implementation of new
features
• Unit, component,
integration test
• Design Review(s)
• STE Feature Test (Plan,
Development, Execution)
• Finalize server cabling schematics
• System regression test
• Performance and soak test
• Training for MSO (RRT, OPS, TAMs), Field
Techs, Pre-Sales, etc.
• Customer Documentation
• Operations Guide
• Handoff to MSO teams
• CRs executed
• Lessons learned
Notes:
1. Stage Gate approval through PSC
2. Additional PSC reviews may be added or Phases combined
3. Listed activities and deliverables are only intended to provide context with the actual project
Gate Legend:
• A = Open
• B = Transfer to System Test
• C = Release
Release
• Server qualification
• BOM development and
review
• Advance purchasing
• Provisioning tool and
manufacturing test
Each Stage Gate represents a
key decision point
Process

13.  Open Gate: Project authorization
 Approval of scope
 Appointment of “project manager”
 Commitment to milestones
 Commitment of resources (human and capital)
 Validation Gate: Transfer from Development to System Engr.
or other designated validation team
 All Development Team deliverables completed
 System Engineering (STE + SPE) readiness
 Checkpoint to ensure other Release deliverables addressed
 Release Gate: Launch authorization
 Deployment and “customer” readiness
 All testing completed and results approved
 Training and customer facing documentation completed
PURPOSE OF EACH GATE – EXEGY SPECIFIC
Each Stage Gate represents a
key decision point
Process

14.  Business case
 Market analysis
 Promotion and sales plan
 Revenue estimates
 Development costs and
support estimates
 Stage Gate checklists
 Standardized list for each
Gate
 Used as agenda and to
facilitate PSC reviews
 Project plan
 Schedules
 Resources (people, OPEX
and CAPEX)
 Communication plan
 Risk register
 Quality plan
 Other collateral:
 Project and portfolio
review slide
 Meeting minute
FORMS AND TEMPLATES
Tools

15.  Enterprise view of project portfolio
 Standardized metrics
 Schedule
 Budget
 Resources
 Capacity management
 Diversity of portfolio
 Risk vs. reward
 Short vs. long term
PORTFOLIO MANAGEMENT TOOLS
Tools

16.  Project management topics
 Reference guides
 Readily available material: online or printed
 “Lunch and Learns”
 Share experiences from users
 Pep talks and process reminders
 Process mentors
 Process newsletters
TOPICS AND OPPORTUNITIES
Training

17. Over time, an unmanaged process will become obsolete, stale and
not meet the needs of the organization
 Continuous improvement and refinement from:
 Organization changes
 Business strategy
 Regulatory impact
 Feedback from users
 Lessons learned from previous projects
 Best practice adoption from professional community
 Impact on:
 Workflows
 Templates
 Tools
 Training
MANAGING THE PMO PROCESSES
Continuous
improvement