2011 Pmo Symposium White Paper


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This paper will take a look into the relationships, impacts and dependencies that a PMO has on an Enterprise Business Architecture. Learn how important it is to understand Enterprise Business Architecture and how the structure is intertwined with a Program Management Office.

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2011 Pmo Symposium White Paper

  1. 1. Enhancing the PMO PartnershipAchieve Business Results with BusinessArchitectureBusiness architecture is the essence of how an Enterprise works. It is themany components which make up an enterprise that produce the goods andservices which are sold for profit. PMO’s provide multi-faceted benefits toEnterprise business architecture which demonstrate value. This paper willtouch on a few segments of business architecture and discuss which areas toembrace or avoid. Sherry S. Remington, PMP, SCPM 11/6/2011
  2. 2. 1Each Enterprise is unique and diverse and to try to categorize and align them is a mishmosh at best. However, there are some processes, systems and data which can be affinitygrouped into rational relationships allowing PMO’s to be aligned and utilized. Below is anexcerpt from Chapter 2 of the The PMOSIG Program Management Office Handbook: Strategicand Tactical Insights for Improving Results1 which indicates different types of PMO’s.PMO’s are like gloves they have to fit for them to be effective. And their design must reflecttheir purpose. Garden gloves are not used in batting cages, nor are racing gloves used toclean the kitchen sink. First define the PMO, will it be portfolio, program or project; thenunderstands their purpose: regulatory, standards, centers of excellence, product, project,etc. Once appropriately defined, then vision, mission and purpose can be more successfullyaligned. One specific requirement of PMO leadership is to promote the vision of the PMOand advertise the delivery of value to the organization.1PMO TypesProject: A temporary endeavor undertaken to create a unique product, service orresult.Project Management Office aligns to execution as that is what they are designed todo, bring vision and strategy to reality. They deliver the results.Program: A group of related projects managed in a coordinated way to obtain benefits andcontrol not available from managing them individually. Programs Management Offices mayinclude elements of related work outside of the scope of the discrete projects in theprogram.Program Management Offices align to strategy and execution as they guide theorganizations to execute against the Enterprise strategy via projects and operational teamsperforming against the corporate processes.Portfolio: A collection of projects or programs and other work grouped together tofacilitate effective management of that work to meet strategic business objectives. Theprojects or programs of the portfolio may not necessarily be interdependent or directlyrelated.Portfolio Management Office best align with vision and strategy as they governwhat goes into an Enterprise portfolio. Programs and project are selected based on theircriteria which best aligns them to the Vision and Strategy of the Company.Business ArchitectureBusiness Architecture is systems by which the Enterprise manages it resources weatherthat is people, process, systems or data. Products are a result of the business architecturesuccess. How the business architecture is integrated and utilized will determine productand Enterprise success. Sherry S. Remington, PMP, SCPM 11/6/2011
  3. 3. 2 People and the PMO As a program management office, people responsibilities are directly  Knowledge workers linked to the Enterprise structure.  Project workers Is the organization a highly matrixed organization, a weak  Education and matrix organization, a purely needs projectized organization or a purely  Respect& functional organization. Engagements Determining the organizational structure will create the path to success for a PMO.As a program management office, people responsibilities are directly linked to theEnterprise structure. Is it a highly matrixed organization, a weak matrix organization, apurely projectizedorganization or a purely functional organization.The people aspect of the PMO will be address differently based on the organizationalstructure, so please make sure you understand the structure clearly.Embrace: Knowledge workersthese are individuals who are experts in their field. They arebetter utilized short term for their knowledge and skill for only the segment of the programor project that is needed. They can be better utilized functionally across the organizationdepending on the Program Type. (Product Management requires experts).Avoid: Too many knowledge workers because they are specific and not broad inknowledge. Additionally, they are expensive.Embrace: Project workers these are individuals who are specifically trained in project andprogram management. Theyare better utilized if reporting to a PMO rather than a functionbecause they can be shared among projects and programs. Project workers have skill thatis transferrable across functions which allows optimal utilization.Avoid: Overloading the Project worker until they become ineffective. Also avoid havingthem wear the hat of project worker and knowledge worker.Embrace: Education andmaking all participants of the program/project aware of thenuances being managed. This can include educating the project team or educating thefunctional teams. Project Managers are not accidental: they are grown in an environmentthat trains, mentors and rewards them based on performance in projects.2Avoid: Mismatching workers to the projects or programs; forexample, putting a senior PMon a short term entry level project. Obtain the best utilization of your work force byaligning skills sets to level of complexityEmbrace: Protocol for engagements so that mutual respect is present.Avoid: Creating scenarios where project workers are not in the correct role and expectedto work in areas that are not governed by the PMO.The right people doing the right work at the right time equals money well spent and saved. Sherry S. Remington, PMP, SCPM 11/6/2011
  4. 4. 3 Process and the PMO Process adds clarity, standardization, improvement and  Enterprise value to an Enterprises’ culture. process Without process chaos ensues.  Program & Oftentimes chaos is misrepresented Project process for innovation. In reality, process  Engagement fuels effective and efficient process innovation and provides value through the long term. Depending on regulatory practices which are mandatory, some Enterprises exercise better processes than others.We know that all Enterprises have processes and within the Enterprise some functionsadhere to the processes better than others. Not all processes or Enterprises are equal.Enterprise processes can be defined as requests, patterns, re-use of capabilities, creatingnew capabilities, regulations, adoption and measurement. Enterprise processes arecreated for all organizations and functions to follow; not all do. Depending on the type ofPMO, maintaining processes and methodologies could be a responsibility of the PMO.Determine upfront how that responsibility will bring value to the Enterprise.Embrace: Enterprise process and promote them throughout the company. It will create acommon taxonomy and simplify and clarify communications.Embrace: Industry standards and processes (PMI PMBOK, PLC, Agile). As a PMO the needto drive consistency and industry standards is tantamount. If the PMO does not hold up thestandards the organizations following them will not either. This often times creates chaosand undermines the value of the PMO. It also feeds a passive / aggressive culture.Avoid: Playing police for other organizations unless that is the PMO charter to do so.Remember the type of PMO and it’s purpose and adhere to the PMO strategy and executionto meet the desired outcomes for the PMO.Embrace: Creating an engagement process if one is not already in place. There may beexceptions to this idea; however without an engagement process; discipline andprioritization will be diminished. Fire, Ready, Aim is an engagement process, but is it rightfor your Enterprise?Avoid: Ad hoc requests without an approval process or engagement process in place.Creating standardization and repetitive processes creates efficiencies which allow focus onnew or strategic efforts optimizing the portfolio for the Enterprise. Sherry S. Remington, PMP, SCPM 11/6/2011
  5. 5. 4 Systems and the PMO What is a system? A whole compounded of several parts or  Financial systems members. Systems have  Political systems – interconnectivityrelationships CLM among each other. The term system  Infrastructure may also refer to a set of rules that systems governs structure and/or behavior. We will take a brief look at 5  Culture systems systems and what the PMO can embrace or avoid.Financial Systems are primary to any PMO. The PMO leadership must understand how theEnterprise will pay for its services.Embrace: a financial system which gives budget and control over the PMO funds for thePMO specifically and the projects and programs preferably.Avoid: a financial system which does not directly support programs or projects, avoid tincupping, it breeds political disparity.Political Systems indicate the structure by which decisions are made and power is exerted.The organizational structure and placement of the PMO can impact its ability to executeeffectively.Embrace: buy in from all stakeholders with an appropriate stakeholder managementprocess. Utilize cross-functional steering committees and always have an executive sponsorto assist with political situations.Avoid: Career Limiting Moves, passive aggressive behavior. Identify and managestakeholders with these tendencies utilizing good risk management and escalationprocesses.Infrastructure Systems are the systems or tools used by the Enterprise. Be aware of howthe PMO can use them; as well as the impact they may have on the PMO. These systems canbe enabling or punitive; integrated or antiquated and depending on which you encounter,the infrastructure can impede PMO success.Embrace: Knowledge of the infrastructure the PMO will be utilizing. Opt for infrastructurewhich will allow the PMO consistent, effective and valid data gathering.Avoid: multiple systems when processes are the same. Avoid redundant data systems.Culture Systems directly influence the PMO and the how it executes strategy.5 Culturalscrutiny, awareness and understanding are king.4Embrace:the Enterprise culture and understand how to get work done within it.Avoid: programs and projects that change the culture without executive support orawareness.In doing so, the PMO will bring in more projects on time, under budget which meetstakeholder requirements. Sherry S. Remington, PMP, SCPM 11/6/2011
  6. 6. 5 Data and the PMO The term data refers to qualitative  PMO data or quantitative attributes of a variable or set of variables. Data  Horizon and value are often viewed as the lowest metrics level of abstraction from which  Risk Data information and then knowledge are derived. Why is data important? It helps to orchestrate business decisions. Decisions which will determine the Company’s success or failure? This is important to the PMO as it exports data to diverse audiences.PMO data: What data is important to the PMO and what data should be owned and drivenby the PMO? These are important questions and need to be determined prior to presentingdata. When data surfaces that is disparate, which data will be used for decision making?Single source of Truth data (SSOT) must be identified and validated by the ExecutiveSponsor as the information that decisions will be predicated.Embrace: Single source of truth data. Require ownership of data regardless of where it iscreated or resides.Avoid: disparate data without sponsorshipHorizon and Value metrics:What data should the PMO own? – Execution data, BusinessValue Data, Forecast Data?What data can the PMO borrow?-Marketing Analysis, Salesstatistics.Embrace: Data which trends historically but is tantamount to predict the future. Create aframework to review the data on a periodic basis.Avoid: Boring and repetitive data that does not add value to decision making. Change toprogram without new data metrics to identify change success.Risk analysis and contingency information is the safety net for PMO’s. A risk managementplan (RMP) with contingency built in is best practice execution. As a part of the RMP,identify data, track it to validate or discredit the risk realization.Embrace: a risk management planAvoid: incorrect risk data, lack of risk management planWith risk information being reviewed regularly, decisions can be made quicker to avoidlosses or seize opportunities. This adds real dollar value to the bottom line. Sherry S. Remington, PMP, SCPM 11/6/2011
  7. 7. 6REFERENCES: The PMOSIG Program Management Office1 Handbook: Strategic and Tactical Insights for Improving Results Authors: Section 1: PMO Governance Dennis Bolles, 1. The PMO Role in Project Craig J. Letavec Portfolio Governance 2. Program Types: Categorization and Its Benefits 3. The PMO as an Enabler for Large-Scale Global Program Success The Strategic Project Office: A Guide to2 Improving Organizational Performance Improving Results Authors: 1. The Project Office Concept J. Kent Crawford 2. The Starting Gate 3. Project Office Rationale, PM Solutions Research Organization Structure and Functions 4. Meet the Players 5. Project Office Planning, Preparation and Strategy 6. Establishing a Project Management Methodology 7. Knowledge Management and the Project Office 8. The Technical Infrastructure 9. The Strategic Project Office 10. Changing the Organizational Structure Sherry S. Remington, PMP, SCPM 11/6/2011
  8. 8. 7 Resonate: Present Visual Stories that3 Transform Audiences Author: 1. Why resonate Nancy Duarte 2. Lessons from myths and movies 3. Get to know the hero 4. Define the journey4 "Culture eats strategy for breakfast" Author: http://www.linkedin.com Gail Severini /groupItem?view=&gid=63688&type=member&item= 44298978&commentID=-1#lastComment;5 Converting Strategy into Action ©2007 by SAPM Author: Stanford Center for Professional Development & IPS Sherry S. Remington, PMP, SCPM 11/6/2011