The document discusses the value proposition and goals of a Project Management Office (PMO), which aims to improve project outcomes and drive customer satisfaction through effective management practices. It emphasizes the importance of risk management, compliance, and transition management, highlighting the need for clear roles and responsibilities, leadership commitment, and a structured approach to portfolio management. The PMO's maturity model is outlined, showing levels of integration and effectiveness within organizations, alongside strategies for funding and operational improvement.

1. PMO
Research
Project Management Office Value
London 2008

2. PMO – Value Proposition
 A 2002 study by KPMG found 65% of the companies surveyed reported that their projects were:
 Grossly over budget
 Far behind schedule
 Involved non-performing technology
 Over half of the executives interviewed believed that this state was Normal
 According to the Standish Group:
 50% of projects cost twice their budget
 16% of software development projects are completed on time
 31% of projects are cancelled before completion

3. PMO - Managing Risks
 Controls – Define, implement and enforce measurements
 Expectations – Ensure consensus at project inception
 Key elements – Standards to ensure completeness
 Requirements – Change management controls to prevent creep
 Communications – Required reviews and health checks
 Project Complexity – Review of projects by senior staff
 Project Management skills – Mentoring and education programs
 Implementation strategy – Application of best practices
 Roles and responsibilities – Clearly defined and understood
 Leadership and sponsorship – Obtain and maintain commitments

4. PMO – Goals
 Customer satisfaction
 Ensure delivery of project that meets or exceeds customer expectations
 Process excellence
 Improve project management processes to drive process excellence
 Value realization
 Capture and communicate benefits and any positive/negative change to the business resulting from the project
 Compliance
 Security and regulatory requirements must be able to be built in as part of the deliverables of the project results. Not an after-thought, but planned
activities.
 Transition management
 Manage transition of People, Processes to close the loop of project completion
 Leadership and sponsorship – Obtain and maintain commitments

5. PMO & Maturity Model
Maturity Level Key Point Performance Effective Span Key PM Focus Planned Deliverables
5 Integration within Continuously improving Enterprise PM Center of Excellence •Improvements
Optimizing business Continuous Improvement •Knowledge base additions
strategy &
operations
4 Solidify gains & Comprehensive; high Multiple Business Units Committing to a project • Performance measurement &
Refining PM expand Quality; high management culture improvement
Process customer satisfaction • Knowledge base (e.g., estimating
2 – 5 years
data)
3 Macro-level Integrated; Multiple Project Implementing PM • Move to project-based (matrix)
Standardizing PM Change positive value-added processes for organization
Process results Governance & multi- • Program management
project management
Decreasing Risk
2 Stabilize Local consistency; Single Project Introducing a structured • PM Methodology & tools
Controlling Performance Short term positive PM approach • Measurement
Projects results Portfolio controls • Central project repository
• PM Training
1 Acknowledge Ad hoc; heroes, Pilot projects; single Using inconsistent PM • PM Framework
Defining PM negative impact inconsistent results business area processes • Development methods
(Common • PM Training
Process) • Executive orientation
• Common language

6. PMO & Maturity Model

7. PMO - Transition Management
Transition Management
Portfolio Program Multi-Project Single Project
Management Management Management Management
Purpose Selection and Create and Resource Perform
Prioritization Manage Allocation Provide
products, information
processes and
services
Focus Strategic Strategic/ Tactical Tactical
tactical
Planning Long and Long term Medium to Medium to short
Emphasis Medium Term Short Term
Responsibility Executive with Program Project and/or Project manager
PMO support manager with Functional with Functional
functional (Resource) manager support
support Manager with
PMO

8. PMO - Transition Management
Where
are you?

9. Which PMO?
Project Office Basic PMO Standard PMO Advanced PMO Center of Excellence
Manage the preferred Establish essential Introduce PM structure Expand PM and Review and analyze
project team structure project roles and business alignment project organization
relationships and structure
• Specify standard • Evaluate PM structure • Develop PMO • Analyze effectiveness
roles for project team options organizational of PM organization
members alignment
• Implement preferred • Examine
• Facilitate internal project team structure • Align project effectiveness of
business unit managers with PMO project team structure
relationships • Implement preferred
PMO staffing • Manage broader • Identify capability
• Identify project structure stakeholder associated with
stakeholders alignment current structure
and participation

10. PMO – Big Picture
Level of Services
Strategic
Strategic PMO Components
Span of Control
• Organization
Permanent • Structure
on
Enterprise
Enterprise
• Communications
ti
• Competencies and
lu
Capabilities
vo
Program
Program
• Risks and Issues
E
• Staffing and
Temporary Procurement
Project
Project
Reporting Guidance Full
Reporting Guidance Full

11. PMO - Needs

12. PMO - Roadmap
Portfolio Management Program Management Project Management
• Translate the • Establish standards • Plan, control and
Strategic Plan, to and procedures to execute the
create a portfolio of manage portfolio component projects.
programs. components.
• Provide and control
• Manage resources • Manage the resources to ensure
and capital at the execution of success of the
highest level programs and inter- Strategic Plan, from
disciplinary points of the ground up.
interaction.

13. PMO - Roadmap
Strategic
Assess Strategize Plan Implement
Review
Translate Assess the Determine Create and Set it up
the firm’s state and strategic approve a
Roll it out
Strategic capacity of approach, tactical plan
Plan into a Program scope of to make the Staff it
portfolio of Management services strategy a
Train the
work to be in place today and span of reality
owners and
performed control to be
stakeholders
taken
Strategic Program Management Approach
Enterprise Program Management Approach

14. PMO - Roadmap
Execution
Executive
Sponsor
• Tools
• Training & Mentoring
Steering Enterprise
• Executive Reporting
• Vendor Management Committee PMO
• Program/Project Managers
• Organization Model Program PMO
• Methodology Development Manager
• Governance Procedures
• Subject Matter Experts
Team 1 Team 2 Team 3
• Development Facilities
• Integration Services
Project Teams

15. PMO Value
PMO strives to be a full-service provider
PMO Mindset
Integrator - Assimilating technology, people, process, equipment to a common goal
Facilitator - Creating collaborative opportunities to turn intentions to actions
Accountability Experts - Embracing the ownership of results to meet expectations
in time, budget, quality and customer satisfaction

16. PMO Functional Deployment
Senior PMO Project/
Staff Program
Managers
Director Manager Process- Project
specific management
expertise expertise
Ensuring
no overlapping Prioritizing Involving
projects projects stakeholders
Ensuring
Providing data for end-game becomes
decision making Ensuring business-as-usual
projects can be Providing tools for
Ensuring executive deployed broadly data mgmt
support
coordinating project Increased developing project
management activities management processes
productivity

17. PMO Funding
 PMO cost should be fully funded by projects
 Customer projects – by customers
 Internal Projects – by Department sponsoring the project
 Global projects – by the Global Capital Budget – fund allocation.
 Short term to leverage technical consultants who have strong project
management skills, and engage contract project managers
 Long term to recruit permanent resources justified by demand, and supplemented
by contractors
 Run like a “business”
 Generate demand through effectiveness
 Driving cost down through Internal Projects and skills development
 Strive for cost transparency to manage the right cost drivers

18. Thank You!
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