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Soutenance These Gianluca Costanzi
The document provides an overview of building a collaborative project management office (PMO) at an organization. It begins with defining key terms like project, program, and portfolio. It then discusses the history and evolution of PMOs from the 1920s to present day. The document outlines various PMO typologies and maturity models. It also provides a case study analysis of implementing a PMO at Regus, a large flexible office space provider. The case study describes conducting a project audit at Regus and developing a collaborative approach and objectives for the new PMO. Finally, the document discusses various project lifecycle stages and tools for strategic project portfolio management.
Soutenance These Gianluca Costanzi
- 1. Building a collaborative PMO ANew Transversal Approach of Building a Project and Portfolio Management Office 10 May 2012 Gianluca Costanzi
- 2. Context Implementing Project andPortfolio Management Offices (PMOs) have become a trendy topic, occurring frequently, yet also disbanding at an alarming rate. What are the benefits and what are the risks? The purpose of this discussion is how a PMO can add value to an organization. Through this discussion, we will define a PMO, compare various theories with the business reality and recommend ways to implement a successful PMO. Finally, we will conclude with some of the lessons learned from the Regus case and the best ways to move forward.
- 3. Academic Market Case StudyConclusions Thesis Structure
- 4. From Project Managementto PMO Who When What Henry Gantt 1920s Activities chart (Gantt Chart) United States Navy 1950s Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT PMI, Prince2 1990s Professional approach about project management Y2K scare 2000s Coordinate approach among projects (PMOs)
- 5. “An organizational bodyor entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of a project.” PMO Definition
- 6. Project – Atemporary work effort with a discrete beginning and end undertaken to meet a unique set of goals and objectives. A project is staffed by a temporary team, and its output is measured by specific deliverables. Program – A group of related projects managed in a coordinated way, to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program. Portfolio – A group of projects and programs managed in a coordinated way to meet strategic business objectives, although they may not necessarily be interdependent. The “P” Factor Project = Do things in the right way Program = Do things in the right order Portfolio = Do the right things
- 7. While a PMOprovides insights for the schedule, budget, and risks of each project an EPMO is an entity acting as an umbrella that governs multiple PMOs, which in turn, provides oversight over numerous projects. The rise of Enterprise PMOs Tactical Strategic EPMO IT PMO R&D PMO Operations PMO Marketing PMO Sales PMO
- 8. What PMOs do? •Project Support • PM TrainingSupport • Shared methodology and processes • Competence frameworkGovernance • Contribute to selection of projects • Advise project owners, sponsors and executives in charge of portfolio management Strategy
- 9. PMO and MaturityModels Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Nonexistent - ad hoc Initial - reactive Developing – emerging discipline Defined - initial Integration Managed- Increasing efficiency Optimized- enterprise orientation Definition – Typology Community of Practice Project Support Office Project Manageme nt Office Portfolio Office, Centers of Excellence, Best- Practice Councils Federated PMO Program Offices Enterprise Program Manageme nt Office There are various popular models for Organizational Project Management Maturity Model (OPMM), such as the P3M3 from OGC or OPM3 from PMI. Also CMMI can be used as PMO maturity model schema. They all share the general purpose of assessing the “status quo” of the organization in terms of project management, as well as the steps necessary to grow to a higher maturity level.
- 10. PMO Typologies Supervise • ThisPMO generally provides support in the form of on- demand expertise, templates, best practices, access to information and expertise on other projects Control • In organizations where there is a desire to "reign in" the activities, processes, procedures, and documentation, among others, a controlling PMO can accomplish that Make • This PMO type goes beyond control and actually "takes over" the projects by providing the project management experience and resources to manage the project
- 11. PMO Typologies vs.Value PMO, while gaining maturity, increases in responsibilities and raises in rank within the organization since it is able to bring value-added to the business.
- 12. Market Analysis Summary APMO has a budget from 3% (new PMOs) to 8% (mature PMOs) of the entire company project budget The vast majority of PMOs work on high-value strategic tasks: implementing or managing the governance process (72%), advising executives (64%) and participating in strategic planning (62%). Average PMO at Glance » PMO Age: 3 years » PMO Budget: US$500,000 » PMO Budget as Percent of Overall Project Budget: 6.25% » PMO Staff Size: 7 people » Percentage of Project Managers that Report to the PMO: 50% » PMOs Using Contracted Resources: 56% » PMO Staff with PMPs: 50% » Project Management Experience of PMO Staff: 10 years » PMO Staff Training per Year: 8 days PMO Value Benchmarks PMOs contribute directly to the following performance improvements: » Decrease in failed projects...................... 31% » Projects delivered ahead of schedule........................ 19% » Projects delivered under budget........... 30% » Cost savings per project (% of total project cost)..... 17% » Improvement in productivity...................... 21% » Increase in resource capacity.................................... 13% » Cost savings per project........................................................................................................................ US$567,000
- 13. Market Analysis Back inthe early days, the PMO was deeply embedded in the organization, struggling to prove its value. Nowadays, the scenario has changed; PMOs are growing in maturity and their focus is shifting towards supporting the business strategy in selecting projects. Executives have seen the valued- added by PMOs. They are more oriented to the project selection process (Portfolio Management) and PMOs are a valuable ally in reaching that goal.
- 14. Regus the Company Regusin Numbers: 1200 Business Centers Worldwide As of 2010, Regus generated revenue of £1,040.4 million; Operating income of £23.8 million; Net income of £1.9 million; Regus Employees worldwide: 5,687 (+10% roughly in 2012). Regus history: 1989 Founded 1994 Opened in Brazil 1999 Opened in China 2000 London Stock Exchange 2002 Sold the UK Business 2003 Regus filed for Chapter 11 US business 2004 Acquired HQ Global 2006 Re-acquired the Regus UK business 2008 Regus introduced Businessworld Regus Products: Office Meeting Rooms Video Conference Tele Presence Virtual Office Business World
- 15. What is aProject in Regus? •Projects have a clear scope, objectives and deliverables; •Projects have a clear start and end date; •Projects have resources and budgets allocated; •Project deliverables have enduring value to the business.
- 16. Project Audit Major Programs • ProjectOwnership: many projects had multiple sponsors and project managers; •Project Methodology: the same project could be managed with different methodologies as each department would use its own references; • Priority: all projects were classified as important and subjective decisions were taken if projects would conflict; •Quality: Scope, Time and Cost of projects were not overseen; therefore projects could go on forever, with endless budgets, even while delivering poor results and no expected benefits.
- 17. Analysis of ProjectTraits 15 30 40 25 25 25 30 25 0 5 10 15 20 25 30 35 40 45 Project challenge areasOut of 54
- 18. Are the projectsaligned with Regus business strategy? Are the projects visible to the senior management? Do we know how much we are spending on projects? Are we delivering projects? Are the projects delivered on time? Within budget? Within scope? Are the projects duplicated or in conflict with each other? Do we measure the results of our projects and the benefits they deliver? What do we learn from completed projects? Where is the project data stored? Do we have skilled and trained PMs in charge of projects? How many PMs do we have in Regus? What are they working on? What is the PM organisational structure? Are the PMs using the same tools for projects? Why a PMO - let’s ask each other some questions
- 19. Regus Today Regus Tomorrow Whya PMO – how do we go from today to tomorrow ? Project success is a critical enabler to helping Regus become the company of the future A PMO is not just about project management, it is good business A strong PMO is the key to unlocking business innovation
- 20. Project Community PMO Senior Mgmt The Collaborative Approach 2 Senior Mgmt PMO Project Community Bottom-Up Top-Down Interviewsand build Relationships Workgroup and build Relationships Relationship Management is key enabler of a successful PMO
- 21. PMO Objectives Short Term 1.Provide On-going Project Visibility 2. Approve New Projects 3. Develop PMO Methodology 4. Understand Individual Projects 5. Provide Project Support 2 Long Term 1. Manage Interdependencies 2. Measure Projects and Benefits 3. Standardize Project Management 4. Provide Governance 5. Assess and Coach Project Managers 6. Automate Project Management
- 22. Critical Success Factorsand Key Performance Indicators 2 CFSs Executive Support Effective PMO Steering Committee Strong Project Management Infrastructure Ability to Measure and Report on Project Performance Management of Expectations User Involvement and Collaboration KPIs Decreases in schedule and budget overruns Customer/proj ect participant responses Accuracy of time and cost estimates Effectiveness at mentoring and coaching project teams Quality and timeliness of project planning documents Delivery of all projects to planned scope You Can't Manage What You Don't Measure The success of the PMO is the success of its customers
- 23. Steering / Project Committee ProjectSponsor Change Manager Business Analysts Project Manager Change Manager • Define impacts of change on business and individuals • Assessing business readiness for change • Stakeholder identification, management, engagement • Change Enablement – training and support approach, planning and material Project Director • Execution of Project Objectives • Delivery to scope timeframes & budget • Delivery of business objectives and benefits • Issue/Risk escalation and resolution • Progress Reporting • Stakeholder expectations management • Manage cross-project impacts Project Manager • Responsible for establishing Project Plan • Delivery of project to time/ cost/scope and objectives • Funding requests • Tracking & Coordination of scope delivery, timeframes and budget • Project resource management • Project Independency tracking • Project forums management • Issue and Risk Management • Status Reporting Project Sponsor • Provide Leadership & Strategic direction to the project (decisions / advice / guidance) • Alignment of project to Strategy • Champion resourcing and funding • Remove roadblocks • Monitor progress according to defined scope, timeframe and budget • Ensure Program objectives are metProject Director Steering Committee / Project Committee • Project Sponsorship and Ownership • Provide Direction and Leadership • Approval/prioritise • Issue escalation and resolution • Ensure Program objectives are met • Responsible for realization of benefits Business Analysts/Design Experts • Completion of assigned activities to agreed timeframe • Raise issues and risks • Requirements management Roles and Responsibilities
- 24. Initiative Life CycleStages – Primary Activities • Establish and document need for project • Align project to strategy, objectives • Document initial project parameters, if known or estimated: – objectives – scope – cost – benefits – risks • Evaluate and prioritize portfolio of projects • Provide details of project, to aid in planning project: – WBS – resource plan – costs, benefits – deliverables • Form steering committee • Identify stakeholders • Secure resources (internal and/or external) • Establish project mgmt processes (updates, change control, risk / issue mgmt, cost / benefit tracking) • ID interdependencies • Incorporate lessons learned from similar projects • Execute project plan • Manage stakeholder interactions • Review, check and approve milestones • Allocate resources • Track and manage risks, issues, and dependencies • Update planning documents as needed (change control, forecast, project plan) • Track benefit realisation and costs incurred vs. plan • Validate benefits vs. objectives • Compare plan vs. delivered (scope, cost, timeline, benefits) • Capture lessons learned • Communicate results to stakeholders • Close risks / issues • Close project budget • Release resources • Archive project files • Document and share all relevant information to other projects Primary Activities Initiate Plan Execute & Control Close 24 As the initiative moves through each stage, emphasis shifts from approval to planning to execution.
- 25. Plan Execute/ Control Close Evaluate Feasibility YES NOPARK Initiative* Resubmit Benefits Initiate *An initiative caninclude an idea, pilot, project evaluation, test market, vendor selection, etc. If a pilot, proof of concept, etc., revaluate feasibility before converting to full project Project Management = “Do things right” PortfolioManagement=“Dotherightthing” Project Portfolio YES NO Decision Pt. #1 Decision Pt. #2 PARK Project Portfolio - Initiative Life Cycle
- 26. Project Portfolio -Initiative Life Cycle: Funnel
- 27. Initiative Life CycleStages – Inputs and Outputs • Initiative form • Prioritization “matrix” • Initiative form (approved projects only) • Capacity template • Project brief • Detailed project plan • Resource plan / org chart • Business case • Stakeholder mgmt plan • Dependency tracker • Plan and actual project documents Inputs Outputs Initiate Plan Execute & Control Close • Prioritized inventory of projects • Project brief • Detailed project plan • Resource plan / org chart • Business case • Stakeholder mgmt plan • Dependency tracker • Status reports • Risk and Issue Log • Benefit tracker • Change request log • Decision point sign offs • KPIs / Metrics • Team logistics files • Project closure document • Lesson Learned Log • Files archived on shared repository Note: items in bold are primary documents used to facilitate flow in each stage “Should we do this?” “Can we do this?” “How are we doing?” “How did we do?”Focus Based on the focus of each phase, certain documents will drive the team’s primary activities. Decision Point 1: Yes / No / Park Decision Point 2: Yes / No / Park
- 28. The Initiative Formsubmitted by the project sponsor or manager allows the PMO to capture all of the basic information needed by the Steering Committee to begin its feasibility analysis. Initiative Form
- 29. Project Portfolio -Strategic Alignment (Screen 1) All initiatives will first be evaluated based on their alignment to Regus’ strategic objectives. Strategic Objectives Few initiatives supporting this objective Initiative does not support any strategic objectives Decision legend Yes - proceed No - stop Park - reevaluate Illustrative
- 30. Project Portfolio -Other Project Attributes (Screen 2) Initiative 1 Initiative 4 Initiative 3 Initiative 2 Time for benefits realization BusinessValue(Benefit/Cost) Low High High Note: The attributes shown here are examples. Others may be chosen. - High Risk -Medium Risk Initiative 5 Initiative 6 Initiative 7 Initiative 8 We might select all of those with quick payback Or, we might select high- value nitiatives Or a combination of both Those passing the first screen will be evaluated based on other project attributes. - Low Risk Illustrative
- 31. Small initiative Middle size Project BigProjects or Programs Focus on small initiatives and no space for larger programs Focus first on the strategic programs and then the mid-size or small initiatives that could be incorporated Project Portfolio - Capacity Planning Organization/BU
- 32. Project Portfolio -Capacity Tracking Initiatives passing the two screens will also be evaluated in light of the company’s capacity to provide the necessary resources to do the work. This will first be done at a high-level, and once the resource plan is provided in the Project Brief, at a more role-based level, as seen below. No IT Project Manager capacity during this period Illustrative
- 33. 33 Project Portfolio -Scorecard Emphasis 1 - minimal 2 - low 3 - moderate 4 - high 5 - significant Scope Global >2 regions, and/or processes 2 regions, and/or processes 1 region or process Only some countries within a region, or some sub-processes within a single process Risk High, not fully mitigated High, but mitigated Medium, not fully mitigated Medium, but mitigated Low Investment Costs £££££ ££££ £££ ££ £ Benefits £ ££ £££ ££££ £££££ Cross-functionality Project requires active participation of all functional areas Multiple functions; some more active than others Multiple functions participating equally on project More than 1 function represented on team Team limited to one functional area Customer / Field impact 4-5 days/week, and/or dedicated support 3-4 days/week, and/or dedicated support 2-3 days/week 1-2 days/week < 1 day/week People impact headcount and/or role changes, many FTEs headcount and/or role changes, few FTEs Role enhancements, many FTEs Role enhancements, few FTEs Limited Process change major process changes or new processes core process changes, or new processes minor, and small new processes minor, to non-core processes minimal; continuous improvement Technology change New technology, major upgrades, or new tools some tool and report changes; minor system upgrades minor tool or report changes Interdependence vs. other projects High likelihood of failure to deliver one or more projects (without change request) Demonstrated challenges to deliver on one or more projects Potential inability to execute all assigned projects (without change request) Low concern No conflict Interdependence vs. BAU High likelihood of conflict between roles Demonstrated challenges with performance of either project or operations role Potential inability to perform both project, operations Low concern No conflict between project, operations Stage Proposed for full implementation Initial solution analysis conducted. Vendor selection required Pilot / POC to be performed Feasibility study proposed New idea - no analysis performed yet Time to Benefits >24 months 18-24 months 12-18 months 6-12 months <= 6 months Priority Low - not required for other High or Medium priority initiatives to proceed Medium - enabler initiative Medium - strategic initiative with flexible timing High - contractually/legally obligated High - major strategic or enabler initiative Governance No Steering Committee; no active Sponsor or stakeholder engagement Inactive Steering Committee; limited involvement of sponsor or stakeholders Ad hoc involvement of Steering Committee, Sponsor, or stakeholders Steering Committee meeting at least quarterly; active Sponsor; some stakeholder involvement Steering Committee meeting at least monthly; active Sponsor and stakeholders The PMO can evaluate and score each initiative against a more complete list of possible criteria.
- 34. Mobile web Oracle CRM Project Portfolio -Snapshot Initiate Janus Cash Mgmt Billing Efficienc y I3 Interactive Intelligenc e Lux Collection sS VC Upgrade Peopleso ft HR T C S T T C S T C S T C S T C S T C S T C S T Payment Method S T C Plan High Project Life Cycle Stage Execute / Control Close LowBusinessValue C The colour code highlights the status of Scope, Timeline and Cost. Green= on track Yellow= latest update not received or warning Red= No update received recently or critical Scope Timeline Cost S T C S Floodwir e S T C C Treas Mgmt System S T C Group Cos to P/S T CS S T C
- 35. 2011 2012 FebJan MarApr May Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4 PeopleSoft HR Payment Method Cash Management Janus Billing Efficiency - Planned timing -Timing not certain 7Go Live Payment Method LUX Collections Oracle CRM I3 Interactive Intelligence Slippage/L ate Start VC Upgrade Mobile Web Floodwire Extended due to Re-scoping- Completed VC Upgrade (Phase 2 and 3) Group Cos to P/S Project Portfolio -Timeline – key projects Treasury Mgmt System/ Intercompany Netting
- 36. What Worked Well •Both the EVP of Ops and the Group CFO communicated the role and importance of the PMO to those leading projects within Regus early on • Through discussions with sponsors, stakeholders and other PMOs, many projects were at least identified, and information captured on them, even if after they were already “in flight” • Some of the Work Group members have been, or are currently serving in, a similar PMO capacity within their own functional organizations, and thus appreciate what the PMO is trying to accomplish • Good relationships have been established with some of the VPs who recognized the value of the work provided by PMO Even Better If… • …the Global Steering Committee had more regularly met and communicated the importance, progress and successes of the PMO to all departments to ensure that the organization continues to see the PMO and its standards as a priority. • …work group members, and department heads receiving Group CFO's email, had followed up with communication cascaded to the PMs/stakeholders in their areas • …more dedicated resources had been assigned to design, build, and run the PMO (as well as projects, where appropriate) • …there had been more focus on relationship management by PMO Lead and Sponsor, to enable the PMO to become a strategic partner to the Board
- 37. Next Steps -Federated PMO Model – proposal • Global PMO aligned with Functional(divisional PMOs and Project Management Structures) • Global PMO will continue to push each department to have a functional PMO • Whereas not possible to have a functional PMO, Global PMO will continue to work with functional Project Managers
- 38. PMO Lead PMO Analyst/ Support Junior PM Senior PM Next Steps – Global PMO Org Chart – Main responsibilities listed by role 4 PM Assessment PM Coach Measure Projects and Benefits Manage Interdependencies Stakeholder Management PMO Framework Development Executive Portfolio reports Automate and Standardize Project Mgmt Approach and Tools PM Coach Project Support (master project schedule, resource capacity data) Project tracking and control (resources, budget) Assist in measuring projects and benefits PMO Administration (project templates and standards, PMO portal / document repository) Track Interdependencies Project / Portfolio Reporting and Analysis
- 39. S W T Strengths • Relationshipand Collaboration • Tools and Processes • Strategic and tactical approach • Compentences and Skills • Executive Support Opportunities • Agent of Change • Business Driver • ROI on Projects • Strategic Partner for Senior Management Threats • Constant Organization change • PMO seen as an Overhead/Burden • Tensions and Concflits due to PMO role • Lack of Competitors O Weaknesses • Exepecations set too high • Immature project management • Communication Plan • Resource Management • Prove its value • Cost Control •One size does not fit all •The success of the PMO is the success of its customers •PMO is about people Conclusions Enabling a PMO is a journey that in the case of Regus has just begun. There is a long way ahead to have a more mature PMO but the base has been established and the rest of the house can be built on strong foundations
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