PMO Point of View

PMO Point of View
2010
By Bill Boehner
Director, PMO Practice

Table of Contents

 Today’s IT Challenges Challenges to IT

 The Role of the PMO PMO as an Enabler

 The PMO Framework A Holistic Approach

 Newton Consulting Can Help PMO Vision Implementers

 Newton Consulting Company Background Who We Are

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Copyright © 2010 Newton Consulting, LLC.

Today’s Challenges
Challenges to IT

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Challenges to IT

Today’s Challenges
 IT expected to deliver more with less
 IT expected to add value to the business while cutting costs
 IT perceived as a tactical cost-center – an “order-taker,” not as
a strategic partner to the Business
 IT and the Business pointing fingers and clashing over
priorities, projects, and IT investments
 A lack of transparency and trust between IT and the
Business
 Project benefits not captured or tracked
 No tracking or accountability for project success

4

Challenges to IT

Today’s Challenges (con’t)
 Key resources are overworked and under appreciated
 Use of 3rd party contractors is increasing due to
commoditized services now available in the market
 No prioritization or process for business requests – “the
squeaky wheel gets the grease”
 Redundant solutions for similar problems
 No holistic (cross-organization) view of the Business’
investments into IT
 Outsiders’ question: “What does IT really do?”
 IT must respond to these challenges and plant the seed for
the future…

5

Challenges to IT

IT must position itself as a:
 Strategic partner to the Business that enables achievement
of key business objectives
 Driver of growth & innovation – “sits at the table” with
Business leadership
 Leader of IT Governance, establishing and maintaining an IT
investment portfolio that aligns to the Business strategy
 Reliable unit that can keep the critical system running
 High throughput machine that can produce more with less
 Flexible operation that can deliver at Business’ speed
 An attractive and exciting place to work, enabling retention
of high energy people

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The Role of the PMO
PMO as an Enabler

7

PMO as an Enabler

The PMO is an Enabler
 A Project Management Office (PMO) is an organization
designed to:
• Align IT initiatives with the Business strategy
• Optimize IT investments and the project portfolio
• Govern the flow of work through the IT delivery
machine
• Establish project management best practices suitable
to the organization
• Provide metrics and reporting to senior management

8

PMO as an Enabler

The PMO is an Enabler
 A PMO should represent for an organization what air
traffic controllers represent to pilots:
• Should guide projects safely (minimizing risks)
• Should guide projects as quickly as possible to their
destination
• Should prevent midstream collisions between projects
and resources
• Should be the Project Manager’s and Executive’s best
friend

9

PMO as an Enabler

Goal of a PMO
 The goal is simple:

Do the With the To Drive
The Right
Right Right Value to the
Way
Things Resources Business

Alignment Optimized Execution Measure

A holistic approach to managing IT investments

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PMO as an Enabler

So Why Do PMOs Fail?
 The PMO…
• does not define its value proposition
• does not have the buy-in from the senior management
• is seen as a threat – most often too authoritative
• is too low in the management reporting structure
• does not fully understand the political environment, the
company culture, or the organization’s tolerance for change
• does not have a mechanism to measure and report value
• is expected to be one-size-fits-all by the organization
• is not sustainable on its own (i.e., executive support leaves)

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PMO as an Enabler
Avoid Failure – Think Holistically
 Analyze and Plan Before Acting
• Where are the current pain-points in the organization?
• What is the Business Strategy? What is IT’s strategy? Are they aligned?
• How are projects selected for funding? What criteria should be used to determine
pipeline project priorities?
• Do any project management procedures, methods and/or systems exist?
• What are the success criteria for your PMO and how will you measure them?
• What services should the PMO provide (e.g. project mgt, project audits, training &
mentoring, project recovery, project startup, QA, business analysis, etc.)?
• Where should the PMO report (e.g. Enterprise PMO, IT PMO, or Divisional PMO)?
Should the PMO house the PMs or should the PMs sit within IT or the Business?
• What authority and accountability should the PMO have?
• What is change management impact of adopting a PMO / disciplined project mgt?
• Should the PMO manage vendor relations?
• Should the PMO own process improvement (CMMI, PMP, ITIL, 6-Sigma, etc.)?
• What type of tools will be required to operate your PMO (PPM tools, Balanced
Scorecard, Collaboration tools, etc.)?
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The PMO Framework
A Holistic Approach

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A Holistic Approach
The PMO Framework

 A holistic
approach to Portfolio Project
organizing and Management Management

planning your PMO
Frame
PMO initiatives Work

Resource Quality
 Tailored to Management Management
meet the
specific needs
of the Business

14

A Holistic Approach
So Now What?
 Expect a challenge
• Resistance to change, to transparency, and being tracked
• Business’ reluctance to committing to ROI
• Labeling structured documentation as “administration”
• Lack of accountability and managers’ follow through
• Isolated groups avoiding processes
 Secure commitment across leadership ranks – Executive,
Senior, Middle
 Appoint an experienced leader who can prevent pitfalls
 Communicate at all levels with a consistent message
 Determine where you are on the PMO Adoption Cycle
 Newton Consulting can help
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Newton Consulting Can Help
PMO Vision Implementers

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Newton Consulting PMO Services
 Newton’s three PMO offerings are designed to help you answer The
PMO Challenge and drive value to your IT and Business operations VALUE

 Our unique and flexible operating model allows us to provide Tier 1
experienced resources at rates 25-50% lower than Tier 1 firms.

Strategic Consulting Services Practical Project Management Services PMO Services
 PMO strategy and roadmap development  PM on Demand: Flexible staffing and  PMO on Demand: Partial or full outsourcing
 Current state / future state assessments seasoned project managers with Tier 1 PM of PMO
 PMO and project management maturity consulting experience
 Build, operate, and transition a PMO
analysis  Manage party vendors or systems
3rd
 PMO organizational assessments integrators  Provide temporary PMO leadership
resources
 PMO business case development
 Drive cultural change around project
 “PMO in a box” management (demonstrating the value of  Tailor and implement tools, templates, and
 Portfolio management and project good project management) techniques
prioritization analysis
 Project management best practices  Optimize IT spending & resource utilization
 PPM tool analysis and recommendation
 PM / PMO training and coaching  Recruit, develop, and place skilled
 Project / program audits PM/PMO resources
 Balanced scorecards and project
dashboards

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Newton Consulting’s PMO Adoption Cycle
Where are you?
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Unaware or Recognition Approval Early Stage Sustain and
Unconvinced of Need to Proceed Implementation Expand

Stage  Minimal defined PM  Minimal defined PM  Have funding approval  Initial PM / PMO initiatives  The first year’s push is
processes for the org processes for the org are rolled out complete.
Characteristics:  Have both IT and BU
 IT mgrs serving in PM  Recognize the importance sponsorship  Preliminary feedback is  The organization has
capacity and value of Project  Recognize the tremendous trickling in generally accepted the PMO
 Limited exposure to PM / Management hurdle in front of you  Some components going  Initial excitement has worn off
PMO best practices  Need help with “selling” the  Uncertain how to proceed well, others are not  Organization may become
 Not sure if a PMO will concept internally to mgt  Some early adopters are complacent
deliver value supportive, others are not.

Typical  6-18 months prior to  3-9 months prior to  0-3 months prior to  1-12 months after  13-36 months after
beginning a PM / PMO beginning a PM / PMO beginning a PM / PMO beginning a PM / PMO beginning a PM / PMO
Timeframe: improvement initiative improvement initiative improvement initiative improvement initiative improvement initiative

How Newton Newton can: Newton can: Newton can: Newton can: Newton can:
Can Help:  Educate the organization  Provide a current state  Help develop a PMO  Help course-correct where  Assist with the execution of a
on PM/PMO best practices assessment strategy and phased appropriate “Phase 2” for the PMO
 Conduct workshops with  Develop Business Case to roadmap  Assist developing a  Help reinforce first yr’s initiatives
key IT and BU resources socialize internally  Assist with development of “Phase 2” push for the PM  Expand on the internal
 Develop Business Case to  Provide case studies and a communication plan / PMO initiatives marketing/communication plan
justify an investment key success criteria  Provide tools, templates,  Help reinforce the first  Help establish PMO as an
 Help organizations  Conduct workshops with and resources to help year’s initiatives incubator for future leaders
recognize the value and key IT and BU executives jump-start the process  Conduct audits & reviews  Help realign the PMO’s long-term
need for PM / PMO best  Help define the scope of  Implement the PM / PMO  Assist with metrics & strategy with IT & BU strategies
practices the PM / PMO initiative initiative in partnership with measurement
you.  Drive specific components
of the PMO initiative
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PMO Consulting Workshop Offerings
 Newton Consulting offers packaged workshops (2 days to 2
weeks) based on where you are in the PMO Adoption Cycle:
• Stage 1: Unaware or Unconvinced
• An Introduction to the Power of a PMO (PMO Defined: Is it right for you?
How can it help?)
• Stages 2 & 3: Recognize need and/or have funding but
have not started
• The PMO Roadmap (How to define your PMO Vision: An approach to
implementation)
• PMO in a Box (A way to jump-start your PMO initiative)
• Stages 4 & 5: PMO Initiatives already underway
• PMO Current State of Assessment (Evaluation of an existing PMO and its
maturity)

 Contact us to learn more or to discuss further how Newton
Consulting can help you achieve your PMO vision…

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Company Background
Who We Are

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Who We Are
Company Background
About Us
 Newton Consulting is a unique and leading provider of IT and HR consulting
services, providing an outstanding proposition to our clients at they move
from vision to reality.
 With a superior team of experienced leaders and accomplished professionals, Newton
Consulting specializes in providing these services to growing companies based in North
America and Europe:
 IT Strategy
 Project Management
 Systems Integration
 Legacy Application Support
 Health and Welfare Benefits Consulting
 Recruitment Placement Outsourcing

 Newton Consulting is able to serve an expanding customer base by attracting and retaining
the best and brightest in the consulting field with its industry changing business model.

 Whatever your IT or HR vision, Newton Consulting can implement it.

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Who We Are
Company Background
We are Vision Implementers
 We believe that all companies have vision, but most need help in shaping and
effectively pursuing it.

 Almost always, they know what they need to do.
 Often, they know where they want to go.
 Sometimes, they know how they are going to get there.

 Newton Consulting helps fill in their vision implementation gaps.
 Our goal is to provide our clients the best that consultants have to offer…
Partnership Leadership Experience Expertise
Focus Catalytic Energy Commitment to the Mission’s Success…

…without the conflicting “profit first” and “high-growth-based” business
agendas of large consulting organizations.

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Who We Are
Company Background
Our Mission
 To implement the business and technology vision
 To of our clients through premier, values-driven
consulting solutions.

Our Vision
 To be the global standard of a customer-focused, values-driven
consulting company.
We will accomplish this by:
 being true to our core values
 developing and establishing long-term, partnering relationships with businesses that
are (or aspire to be) leaders in their marketplace and community
 attracting and retaining the best talent in the consulting industry
 maintaining an employee-friendly, shared ownership operating model

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Who We Are
Company Background
We are Growing

Employees 65 Total 8.5M
35 9,000,000 Revenue
30 Subcontractors 8,000,000
7,000,000
25
6,000,000
20 5,000,000
28
15 4,000,000
2.5M
7 3,000,000
10
2,000,000
5 1 700K
1,000,000 0
0 0
2003 2005 2006 2009 2003 2005 2006 2009

 We believe this growth is a result of our customer-centric
business approach and validates our unique operating model.

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Who We Are
Company Background
The Newton Difference: Not Your Typical Consulting Company

• Customer Focused • We implement your vision, not our own.

• Values Driven • Our core values drive everything we do.

• Our model attracts and retains the top
• Unique Operating Model talent in the consulting industry.

RESULT: Our clients receive Tier 1 quality
Client at value cost – the right solution to your
mid-sized company’s dilemma.

25

Company Background
Who We Are

Recognized in Our Industry

Best Service Provider
 Pittsburgh Technology Council’s Tech 50 Finalist 2009 and Category Winner 2008.
 Recognized as one of the leading and highest achieving companies in
southwestern Pennsylvania.

 Proud to serve our
region, the nation,
and a growing
international client
base!

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Who We Are
Our Services
Bringing Together
People, Process
and Technology
IT
Information Technology
 Customer-focused
services revolve
around our client PRACTICE SERVICE
DIVISION CLIENT
AREA LINE

HR
Human Resources

 Whatever your IT or HR
vision, Newton Consulting
can implement it.

27

Who We Are

Our “Ex” Factor
Experience
 600+ years of combined experience integrating and managing
information technology

Expertise
 Project Leadership
 Implementation
 Support

Excellence
 100% client referrals

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Who We Are
Our Value Proposition

We Solve Your Mid-Sized
Cost

“Big 5” Company’s Dilemma
Firms
 We offer Tier 1 quality consulting
services at rates that are
Newton consistently 25-50% lower than
Tier 1 firms – with no loss in
Consulting
quality

 This value proposition is tailored
Staff for, and craved by, mid-market
Offshore
Augmentation companies.

Quality

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Who We Are
Our Difference
We are Business Experts Who Know Technology
 We staff Tier 1 experienced consultants who choose to work for Newton Consulting
because of our unique shared ownership model, mission, and values.

 Our Right Resourcing model gives you the right staff at the right time.

 Savings are often measured in hundreds of thousands of dollars, a result of:

Lower Rates
Shorter Timelines
Higher Productivity
On-Time Delivery

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Who We Are
Our Commitment

We want to understand your vision, adopt it
as our own, and make it a reality.
– Rick Newton, President & Founder, Newton Consulting

Newton is the most customer-focused vendor I’ve ever worked with.
– GlaxoSmithKline Consumer Healthcare IT Management Team

Our Commitment  Our Values Satisfaction Guaranteed
 If you are not 100% satisfied with the work performed by Newton Consulting, we will do
everything in our power to remedy the situation.

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Who We Are
Our Service to You

We are…
 Difference Makers
 Problem Solvers
 Team Players
 Servant Leaders

 Vision Implementers

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Newton Consulting, LLC
2068 East Finley Drive
Claysville, PA 15323

p: 800.883.1198
p: 724.663.5827 Bill Boehner
f: 724.663.4209 Director, PMO Practice
p: 412-334-0196
info@newtonconsulting.com f: 724.663.5440
www.newtonconsulting.com bill.boehner@newtonconsulting.com

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