Business PMO & IT Pmo What Is The Difference


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Business-PMO & IT-PMO - What is the difference

Organizational differences of Project Management Offices and the real world challenges that Project Management Offices face based on their organizational alignment in the overall structure of the organization

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Business PMO & IT Pmo What Is The Difference

  1. 1. Does one model fit all ? Where do you want to be? Business-PMO & IT-PMO What is the difference? Stefan Rank, PMP Project World November 2005 Orlando, Florida
  2. 2. Agenda  This is your agenda  You can ask all the questions you want  We have one hour  This is a workshop for you 2
  3. 3. This is why you are here!  Project Management organizations (PMO, EPMO, COE for PM) are vital components of all types and sizes of corporations.  Organizationally they are aligned differently based on size of the company and the initial charter when they where established.  This session will focus on the organizational differences of Project Management Offices and the real world challenges that Project Management Offices face based on their organizational alignment in the overall structure of the organization. 3
  4. 4. Project Management Office Definition A shared organizational structure that serves as a repository of information for project reporting and disseminating best project management practices A Project Management Office (PMO) is a shared competency designed to integrate project management practices within an organization. Source: Sometimes called project office. This is the office or department responsible for establishing, maintaining and enforcing project management processes, procedures, and standards. It provides services, support, and certification for project managers. Source: 4
  5. 5. Program Management Definition The coordinated management of a portfolio of projects to achieve a set of business objectives is called program management. Or, a program might refer to an ongoing set of activities internal to the organization, for example, a Total Quality Management program, workplace safety program, supplier development program, etc. Source: A portfolio of projects selected and planned in a coordinated way so as to achieve a set of defined objectives, giving effect to various (and often overlapping) initiatives and/or implementing a strategy. Source: Program management is the process of managing multiple on going projects. An example would be that of designing, manufacturing and providing support infrastructure for an automobile make. This requires hundreds, or even thousands, of separate projects. In an organization or Enterprise, Program Management also reflects thebe Program management is the process of managing a portfolio of multiple ongoing projects. An example would that of designing, manufacturing and providing support infrastructure for an automobile make. This requires emphasis on coordinating and prioritizing resources across projects, departments, and entities to insure that resource contentionthousands, of separate projects. In an organization or Enterprise, Program Management also hundreds, or even is managed from a global focus. reflects the emphasis on coordinating and prioritizing resources across projects, departments, and entities to insure that resource contention is managed from a global focus. Source: 5
  6. 6. Definitions of Project Management  Project management is a management approach concerned with getting the job done, on time, within budget, and according to specifications  Project Management is the art and culture of getting work done  People responsible for doing something that has never done before – for people who don’t know what they want – who must first predict the unknown, make a plan to complete with the unforeseen, and execute the plan with too-limited resources that they don’t control and who are held responsible for the results, even when miracles are required 6
  7. 7. Type of Project Management Offices  Project Management Office  Program Management Office  Program Office  Enterprise Project Management Office  Center of Excellence for Project Management  Project Office PMO’s for program execution – temporary in  nature – dissolved after program completion  Product Management Office  “PMO out of the BOX” in six weeks 7
  8. 8. Google & Yahoo result count Term Business PMO 426 88 IT-PMO 610 944 Enterprise PMO 924 1510 Project Office 2,050,000 1,490,000 Program Management 248,000 240,000 Office 8
  9. 9. Business Program Management Company Strategy  Company strategy is defined on Company Goals executive management level Clearly defined  Strategy translates into business measurable goals? programs (Products & Services) Business Programs  Projects are the building blocks Define & Establish programs that link to company goals in the execution of organizational strategy Projects  Project level experience feeds Projects are prioritized and executed to achieve completion of programs back into programs and strategy Tasks  Feedback loop is key – Measure Execution of project tasks to achieve project completion at every level 9
  10. 10. Business Program Management  Business drives technology  Business processes are automated by technology  Technology is enabler for business success  Technology needs to enable & improve existing business processes  Technology not for the sake of technology  Time to market drives technology solutions 10
  11. 11. Program Management & Project Management Program Management – Project Management – Doing the Right Things Doing Things Right  Develop and link operational and  Execute and deliver projects strategic plans  Ensure triple constraint is met  Support & enable strategic  Deliver business solutions planning  Execute governance and  Maintain and leverage business control and operational processes  Reporting and analysis (knowledge)  Operate internal to project  Define, refine and own project delivery delivery processes  Define and use metrics and service level agreements  Operation external to project delivery 11
  12. 12. Business & IT PMO Charter Business - PMO Charter IT - PMO Charter  CEO level alignment  CIO level alignment  Tied to CEO performance  Tied to CIO performance  Company & Enterprise level  IT Project Pipeline scope  Technology projects enabling  Business & product oriented business  Drives project pipeline across  Architecture & development & business functions system focus Cost, Schedule, Quality, Scope    Business analysis function IT-project managers  Supports governance processes  IT project management  Financial responsibility for  Interface vs. business process capital project cost & benefits thinking and ROI  IT processes improvement,  Business portfolio management SDLC, Architecture  Project Life Cycle 12
  13. 13. What are the major differences? Customer  Business focus  Organizational alignment  Focus of work PMO  Customer orientation  IT Business Product orientation  Daily exposure to business concerns and problems  Integration of business areas  Control function  Business analysis function 13
  14. 14. Is this your day in the PMO?  Stakeholders: Business owners, Executive owners  New product releases & enhancements  Sales & Marketing timelines  Projects driven by product release schedules  Projects driven by vendors & outside parties  Newest product features & enhancements  Product vs. Project  Revenue and cost implications of projects  Project prioritization in a “fast to market” environment 14
  15. 15. Organizational Alignment CIO CEO CFO COO Financial Operations Technology Business • Accounting •Customer • Architecture Product • Financial • Service • Solutions • Sales • Call center • Systems • Marketing planning • Operations • Logistics • SOX • Warehousing • Databases • Governance • Audit • Engineering • Technology • other controls • Facilities Blueprint CIO Research reports – Best practices for PMO’s:  At what level does your company employ a project office ? 2% not answered  39% Corporate – strategic  27% Division  27% functional group/business unit  6% local group or organization within function  15
  16. 16. Roles and Responsibilities are split Business PMO Information Technology  Architecture definition  Business requirements  Technology design  Business process design  Build technology solution  Facilitate Hardware selection   Manage project Develop solution   Coordinate departments Integrate systems   Financial tracking Test    IT schedule Overall schedule  (Development / Budget operations / Architecture)  UAT  Technology selection  Business projects  Technology projects 16
  17. 17. Roles and Responsibilities 17
  18. 18. The people side  Project management organizations consist of people  People are key to deliver projects  People deliver on tasks in a project (WIFM !)  Highest risk factor: People Don’t like the project  Don’t like the PM  ...   Projects create people development opportunities  Projects can be seen as a major change to people Change management is often times forgotten  Business side: New processes – perception of automation is  negative IT: This technology is new – will it prevail? Can it be managed?   Projects can take the security of a departmental structure away 18
  19. 19. The business savvy Project Manager  Communicator  Business process understanding  Business process improvement  Business requirements  Product orientation  Technology understanding Systems, Architecture, Development  Application, Testing (unit, integration)   Manages UAT  Adheres to processes and controls  PMI certified 19
  20. 20. Factors for organizational alignment  Company size  Maturity and “age” of company  How close for comfort – what do I know about project management  Where does strategic planning happen? Doing the right things & Doing things right !   Independence  Control function  Visibility into work pipeline  Project, BAU, Other  Financial Controls  Today – SOX ! Control function – Project management processes enable controls ! 20
  21. 21. Why Project Management Offices are created  Strategic objectives & goals are not being met  Major business endeavor  Historically driven based on need – in IT -Y2K example (it is all over now!)  Senior management need for control  Project failures – schedules out of control  Cost out of control  Insufficient information on project status  No decision framework  Resource bottlenecks  Need for better controls & visibility 21
  22. 22. Motivation for having a PMO  Are we doing the right things?  Are we doing things right?  Where does the money go?  What are we working on? Why can’t I have this earlier?   Are we on schedule with this?  How does this impact our customers?  What are the dependencies?  Which resources can work on this?  Why is this not done yet?  Why did we loose this account or customer?  Lost opportunities! 22
  23. 23. PMO – the CIO perspective (I)  Independent & non-political department  Coordination and management of customers  “People People” – not technologists  Management of expectations & schedule cost, quality  Rational framework for delivery of projects  Balance and scale  Prioritization of efforts  Definition of business solution 23
  24. 24. PMO – the CIO perspective (II)  How do I exploit & leverage all the data collected to make informed business decisions  Focus on services to the enterprise  Do not do any business project activities  Technology is my business  The CIO is the technology and information expert  IT focus – I need to succeed with the projects that I am responsible for 24
  25. 25. PMO – the Governance Perspective  PMO organizational alignment depends on executive level management setup (CEO-President-CIO-CFO)  Strategic service department for project execution  Enabler for cross-functional efforts  Driver of new enterprise wide products & projects  Independent check & balance function Controls around Schedule, Cost, Quality on projects   Definition of processes & project controls  Oversight and tracking of budget and spending for projects  Real-time objective status reporting 25
  26. 26. Business PMO Real World Challenges  Prioritization of programs & projects  Focus projects on customer needs and impacts  Keep cost down  Balance governance and project delivery needs  Schedule Fast to market  Competition’s schedules   Resources & Resource constraints Business resource constraints  IT resource constraints   Quality When you run you stumble more easily  Build quality into the delivery process  26
  27. 27. Integration of SDLC and PMLC Bringing all elements together ! SDLC QA Business Integrated Process processes PMLC Architecture 27
  28. 28. The tools that help us A FOOL WITH A TOOL IS STILL A FOOL MS Project Project Life Cycle Standard Office Tools Oracle Financials Visio Dashboards Organizations have implemented tools in hopes of solving business problems, only to discover that the root cause of the problem ends up being process related. 28
  29. 29. Bottom Line  One size does not fit all!  Where will you place your PMO in your organization to be setup for success?  How can your PMO provide value to the organization?  What is it you want your PMO to be when it grows up?  Are you “Doing the right things”?  Are you “Doing things right”? 29
  30. 30. Questions ?  Did you get value out of the presentation?  Suggestions ?  Questions ?  E-mail: 30