This document discusses project management offices (PMOs) and provides guidance on setting one up. It defines a PMO as a group dedicated to centralizing and coordinating project management. The presentation outlines the benefits of a PMO, such as standardized processes and improved risk analysis, but also risks like lack of management support. It provides tips for establishing a successful PMO, including getting buy-in, selecting a leader, and developing best practices. The goal is to help organizations determine if a PMO makes sense for them and how to implement one effectively.

1. What is it?
Is it right for you?
Ronald K. Thomas

2. Today’s webinar will cover
 Why have a PMO?
 What is a PMO
 Risks and Benefits
 Functions of a PMO
 Sample Organizations
 Roadmap to Success

3. A quick review:
Project Management is …
“… the application of knowledge, skills
and techniques to project activities
in order to meet or exceed
stakeholder needs and expectations
from a project.”
PMI - Guide to the PMBOK

4. A quick review:
Project Management is …
“The act of leading a team of
individuals in planning, organizing,
executing, controlling and directing
resources of an organization in
pursuit of a specific goal.”
American Management Association

5. Project Management is not an exact science …
“The ART of leading a team of
individuals in planning, organizing,
executing, controlling and directing
resources of an organization in
pursuit of a specific goal.”
… it is also an ART

6. Why Have A PMO?
 Project Performance
 Improve Competencies
• Project Manager
• Staff
 Desire to Excel
• On-Time
• On-Budget
• Meeting Expectations
• Deliver Functionality
 Improve reputation
 Reduce or eliminate failure

7. Successful Challenged Impaired
16% On-time
On-budget
All Features
53%
31%
Successful Projects
The Chaos Report, The Standish Group

8. Successful Challenged Impaired
16%
Over-Budget
Over Est. Time
Some Features
53%
31%
Challenged Projects
The Chaos Report, The Standish Group

9. Successful Challenged Impaired
Cancelled 16%
Or Failed
53%
31%
Impaired Projects
The Chaos Report, The Standish Group

10. PMI defines …
Project Management Institute, PMBOK Guide Third Edition, Section 1.6.4 (2004)
A Project Management Office
is an organizational unit to
centralize and coordinate
the management
of projects under
its domain …

11. What it really means …
 Dedicated section of your organization
A group of individuals working toward a common goal

12. What it really means …
 Dealing with PEOPLE and THINGS
 People-Related  Things-Related
Activities Activities
• Leadership • Planning
• Conflict Management • Managing Scope
• Contract Development • Estimating Costs
• Negotiations • Schedule
• Communications • Managing Risks
• Skill Development • Managing Change

13. A PMO is not …
 Unrealistic
 No organization
 No commitment
 Can be overwhelming
 Unqualified personnel
One Person

14. Basic Objectives
Project Enterprise
Consult Promote
Mentor KM
Augment Best Practice
Manage Evaluation
Recovery Training

15. Levels of Support
Project Individual Project
Department
Windows XP
Several Projects
Application Support
Division
Business Unit Projects
Information Technology
Firm
Business Strategy & Resources
Domain Support

16. Benefits of Establishing a PMO

17.  Standardized PROJECT
INITIATION Qualification: Initially
determined the who, what,
when, where, and how of the
Methodologies
project request. Does the
Project Need project make fiscal sense?
Do you have resources to
begin and complete the
project? What resource
Project constraints exist? What
No
Qualified? impact will it have on current
projects. Does the project
 Standardized Processes
fall within the firm's business
goals and objectives? Etc.
Yes
Stakeholder
Identify & Meet
Identification
Stakeholders
Scope &
Identify initial
Initiation Phase Documents become sections in Project Proposal
Business
Goals, Objectives,
Reqmts
Scope, Timeline
Risk
Identify Initial
Assessment
Risks & Benefits
Planning
Phase
2
Assumptions & Identify initial
Constraints assumptions & Next Page
constraints
Initial Budget
Identify Initial
(*.xls)
Costs
Yes
Sufficient
Review, reassess,
information for No
& modify
proposal?
Yes
Project
Project
Stop
Create Project Conduct Project
Proposal No
Proposal Approval Meeting Approved?
PMO Benefits

18.  Standardized
Methodologies
 Standardized Processes 30
 Improved Risk Analysis 25
20
15
10
5
0
Chicago New York L.A. D.C. Paris Geneva
PMO Benefits

19.  Standardized
Methodologies
 Standardized Processes
 Improved Risk Analysis
 Consistent Tool Usage
PMO Benefits

20.  Standardized
Methodologies
 Standardized Processes
 Improved Risk Analysis
 Consistent Tool Usage
 Improved Reporting
PMO Benefits

21.  Standardized
Methodologies
 Standardized Processes
 Improved Risk Analysis
 Consistent Tool Usage
 Improved Reporting
 Improved Resource
Management
PMO Benefits

22.  Standardized
Methodologies
 Standardized Processes
 Improved Risk Analysis
 Consistent Tool Usage
 Improved Reporting
 Improved Resource
Management
 Improved Communication &
Collaboration
PMO Benefits

23. Opportunity for Continuous Improvement
Lessons Learned
Knowledge Repository
PM Competency
Knowledge Transfer Project Evaluation
PMO Benefits

24. IMPACT
IMPACT IMPACT
Firm
En
ial
vir
nc
on
a
Fin
me
IMPACT IMPACT
nt
Cultu c al
ral Politi
ical Pro
Polit ject
RISK t RISK
n
me
Bu
n
Economic
o
s
vir
ine
En
ss
RISK RISK
RISK
Risks Associated with a PMO

25.  Lack of management
support
PMO Risks

26.  Lack of management
support
 Resistance to centralized
project authority
PMO Risks

27.  Lack of management
support
 Resistance to centralized
project authority
 Inexperienced project
managers
PMO Risks

28.  Lack of management
support
 Resistance to centralized
project authority
 Inexperienced project
managers
 Competition for
experienced project
managers
PMO Risks

29.  Lack of management support
 Resistance to centralized
project authority
 Inexperienced project
managers
Training
 Competition for experienced
Tools
project managers
Personnel
 Increased costs
PMO Risks

30. Resources Vision &
Strategy
Products Requirements
The
Platforms Technology People
Firm
Data &
Methodology
Workflow
Process
Solution
PMO Duties and Responsibilities

31. Management Training Best Practices
Project Portfolio Project Managers Standards
Project Managers Project Team Methodologies
Resources Staff Processes
Reporting Standards Firm
Communication Policies Industry
Coordination
Evaluation Risk Mgmt Tools
Projects Project Project Portfolio
People Business Resources
Processes Economic Experience
Methodologies Political Knowledge
Standards Cultural
PMO Duties & Responsibilities

32. Which PMO Organization Is Right For You?

33. Which PMO Organization Is Right For You?
Business
Unit
Project Project Project Project
A B C D
Project PMO Project PMO Project PMO Project PMO
Manager Advisor Manager Advisor Manager Advisor Manager Advisor
Staff Staff Staff Staff
Staff Staff Staff Staff
Shared Resources
Advisory Role

34. Which PMO Organization Is Right For You?
Information
Technology
Network Ops Desktop Applications Web Development PMO
Staff Staff Staff Project Manager
Staff Staff Staff Project Manager
Shared Resources
Projects
Direct Management of Project Resources

35. Which PMO Organization Is Right For You?
Information
Accounting / Finance Practice Support PMO
Technology
Project Manager Project Manager Project Manager PMO Manager
Project A Project B Project C Advisors/PM’s
Shared Resources - Cross Department, Internal, External
Projects
Collaborative Advisory

36. Which PMO Organization Is Right For You?
FIRM
Executive
Director Projects
Information
Accounting / Finance Practice Support PMO
Technology
CTO CFO Practice Support Dir. PMO Director
Line Managers Line Managers Line Supervisors Advisors/PM’s
Project Managers Project Managers Project Managers
Shared Resources - Cross Department, Internal, External
Strategic

37. Ten Steps to Make You Successful

38. STEP 1
 Get Educated, Get Prepared
• Understand the beast that is
Project Management
• Understand your firm’s culture
• Understand your firm’s political
environment

39. STEP 2
 Create a Vision
• Develop a mental image of
the desirable future state
• Articulate a realistic, credible,
and attractive PMO future for
your organization

40. STEP 3
 Solicit Support
• Executive Management
• Directors
• Managers
• Peers
• Key Staff

41. STEP 4
 Select a Leader
• RKO Person
• RKO Skills
• RKO Experience
• Leader vs. Manager
• Communicator
RKO = Right Kind Of

42. STEP 5
 Make a Decision
• PMO Type
• Be realistic
• Be flexible
PMO
• Manage expectations

43. STEP 6
 Put your PMO team together
• Do you have the right kind of
personnel (RKOP)
• If not, can they be trained
• If an outsider, who will mentor
• Schedule training

44. STEP 7
 Prepare for Battle
• Get your team trained
• Reinforce the vision
• Communicate with key
stakeholders
• Set expectations
• Not everyone will agree

45. STEP 8
 Develop and Agree on
Best Practices
• Processes
• Methodologies
• Standards & Policies
• Tools

46. STEP 9
 Train & Communicate
• Staff
• Project teams
• Tools
• Manage expectations

47. STEP 10
 Make It Happen!
• Select a project
• Go easy
• Lessons learned
• Continuous
improvement

48. In Closing - Avoid Black Holes, Traps & Mazes
Personnel
Personality Ego
Turf Wars bits
Work Ha Po
liti
e c
Cultur
s

49. Setting Up A PMO
What is it?
Is it right for you?
Ronald K. Thomas

50. This presentation was created by
http://www.brco.com
for the
International Legal Technology Association

51. If you have questions contact:
Ron Thomas
rthomas@brco.com
713.840.0510