Establishing an Effective PMO

Contents
Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved. 2
What is a PMO?1
Benefits of PMO2
How Business Beam may Assist3

What is a PMO?
Establishing an Effective PMO

Key Definitions
Project
B
Project
C
Project
D
Project
A
Program
1
Program
2
Portfolio
Project
E
Program
Project
Portfolio
A Project is a temporary endeavor undertaken to create a product,
service or
result
to obtain an objective (deliverable) and terminate.
A Portfolio is Overall collection of the
organization’s grouping of high-level initiatives
and their respective projects/programs.
A Program is a set of projects that
have a common objective and
interdependencies that need to be
managed. A set of interrelated and
inter-dependent projects .
4Copyrights (c) 2004-2013 Business Beam (Pvt.) Ltd. All rights reserved.

Management Disciplines
Project Management is concerned with the definition and delivery of specific
work streams within an overall program framework.
Program Management is
the application of
consistent tools and
methods in order to deliver
and co-ordinate related
projects and Programs.
Portfolio Management is the management process of translating strategy or
policy into actionable Programs that can be developed in a portfolio of
Programs.

What Do Organizations Need?
• Given our longer term vision, what are the opportunities
today?
• How do we translate our strategy into targets for all our
stakeholders to clearly understand?
• How realistic the targets and vision are?
What are the
“right” things
to do?
• Will the projects underway let us achieve our strategic
objectives?
• What is the correct balance between growth / innovation
projects, and productivity / maintenance projects?
Are we doing
enough of
the “right”
things?
• What is the appropriate governance structure and risk
management approach to facilitate a fast response to
issues and opportunities?
• How do you get the message across to change peoples’
behavior?
• How are benefits being tracked?
Are we doing
the “right”
things
“right"?
Portfolio
Management
PMO

What is PMO?
An organization dedicated to improve the practice and results of project
management.
Provides an opportunity for project managers to develop professionally more
quickly than most could ever hope, if they were working isolated from one
another.
An organizational entity
created to assist project
managers in achieving
project goals.
A group of people with a
mission to support project
managers in the
successful launch,
implementation, and
completion of projects.
PMO

The Value of PMO
• Operational efficiencies through consistent
processes for Monitoring, Controlling &
Reporting
• Proactive management , planning and steering
• Delivery oriented to business milestones
• Focus on content rich initiatives rather than
process
• Coaching and mentoring for project / program
managers
• Minimized gaps in strategic business alignment
Typical Environment with PMO
Delivery
Strategy
Project Project Project Project
PMO
• Inconsistent planning and scheduling approaches
• Deliverable / technology focus
• Little integration across projects
• Lack of business management leadership and
visibility
• Unjustified projects
• Inability to present accurate visibility to
management
• Impact on market and shareholder perceptions
Typical Environment Before
Delivery
Strategy
Project Project Project Project

PMO Models
A key success factor for Project / Program Management Offices is to select
the “right” organization model that fits both the organization’s culture
and needs.
Increased Level
of Operational
Excellence
Increased Level of
Business Unit
Responsibility
The PMO has an
advisory role and
provides counseling,
training and tools to
business units’
project managers.
Model
Mandate
Support
The PMO provides
active support to
project managers.
Projects are delivered
according to the
project management
standards established.
Control
The PMO is
responsible for project
delivery. The PMO
provides trained
project managers to
business units’
sponsors. Projects are
delivered according to
the project
management
standards established.
Lead

CEO
COO
Branch
Network
Business
Segment
Support
IT
IT-PMO
Operations HR
EPMO
Where does PMO Fit?
• Depending on the type of projects under
the PMO, PMO can be under specific unit
to serve specific units projects or at the
level of the organization to server all
units in the organization
• The PMO normally consists of a full time,
dedicated team, reporting to a PMO
Head, supporting the program/projects
managers
• The structure within the PMO is different
based on the PMO type. The PMO can
also deploy ‘envoys’ into large individual
work streams to provide program
management support direct and full time
to the work streams.
It is not recommended to
have more then one PMO
in the organization. In
addition ,the more PMO is
empowered, the more
successful it is.

What’s in it for me?
Leadership
• Alignment with Strategic Plan
• Standard, effective business processes
• Project/Portfolio decision support information
Staff
• Improved communication with business sponsors and team
members
• Individual performance
• Professional/career development, recognition and
opportunities
Management
• Work prioritization
• Efficient allocation and utilization of resources
• Higher project success rates

Benefits of a PMO

From Strategy to Implementation
MARKET ENVIRONMENT STRUCTURE & RESOURCES
FINANCIAL ENVIRONMENT PERFORMANCE MANAGEMENT
Strategy Selection and
Translation
Strategy
Formulation
Strategy
ImplementationPMO

Core Benefits
Gain visibility on project portfolio1
Align investments with business objectives2
Make the right choices when prioritizing investments3
Enhance your ability to execute4

1. Gain Visibility on Your Project Portfolio
Best Practices Samples
• Project information is hard to
collect
• Portfolio view is non-existent
• Controlling costs is challenging
Typical Issues
A logical grouping of initiatives in a
project – program – portfolio
hierarchy.
Project
B
Project
C
Project
D
Project A
Program
1
Program 2
Portfolio
Project E
A simple spreadsheet to collect
project information and to guide
project managers through what they
should document.
A complete set of reports on your
current and proposed portfolio,
which project, when, for how
much and highlighting the
financial impact.

2. Align Your Investments with Business Objectives
• Strategic alignment is difficult
to assess
• Impact of projects on business
process is unclear
• Project benefits are hard to
define
Typical Issues
A standard framework to translate
strategy and identify the impact of
your projects.
A view of the planned benefits
and their impact on the
organization for the upcoming
years.
A process map to assess impact
of projects on business
processes.

3. Make the Right Choice When Prioritizing the
Investments
• Projects can’t be compared
• Investments can’t be justified
• Project prioritization process is
unclear
The Issues
INNOVATION
GROWTH
MAINTENANCE
PRODUCTIVITY
Sustain above
average returns
Increase revenue
and business size
Prevent margin
erosion and asset
deterioration
Margin and asset
utilization
improvement
Future
Investments
Exis tingAssets
INNOVATION
GROWTH
MAINTENANCE
PRODUCTIVITY
Sustain above
average returns
Increase revenue
and business size
Prevent margin
erosion and asset
deterioration
Margin and asset
utilization
improvement
Future
Investments
Exis tingAssets
INNOVATION
GROWTH
MAINTENANCE
PRODUCTIVITY
Sustain above
average returns
Increase revenue
and business size
Prevent margin
erosion and asset
deterioration
Margin and asset
utilization
improvement
Future
Investments
Exis ting
Assets
INNOVATION
GROWTH
MAINTENANCE
PRODUCTIVITY
Sustain above
average returns
Increase revenue
and business size
Prevent margin
erosion and asset
deterioration
Margin and asset
utilization
improvement
Future
Investments
Exis ting
Assets
MaintenanceProductivity
GrowthInnovation
Future
Investments
Existing
Assets
A clear categorization of your
investment types, allowing
alignment to business objectives
(innovation, growth, productivity,
maintenance)
An assessment of project value and
risk to support a transparent
prioritization process based on
tradeoff between tangible &
intangible value and various types of
risk.

4. Enhance Your Ability to Execute
• Unable to adapt to changes
• No continuous view of the
portfolio’s life
• Inability to allocate resources
to the right place at the right
time
The Issues
Monitor Portfolio Status
and Performance
Identify New
Opportunities
Re-prioritize/
Optimize Portfolio
A consistent framework to
integrate all your existing
standards and approaches
into the Managing for Value
responsibilities
Policies
and
Standards
Roles
and
Responsibilities.
Methods &
Approaches
Tools and
Enablers
Organizational
Structure
Deployment
and
Monitoring

Key Success Factors
Leadership support.1
Focus on increasing the maturity of the organization.2
Establish trust – don’t finger point people.3
Have the right skilled team.4
Do it gradually, and not all at once.5
Ensure partnership the between PMO and the business units.6
Give enough support and authority to the PMO team.7
Use the right tool.8

How Business Beam may Assist

We may assist in…
Establishing a PMO1
Making PMO a Center of Excellence2
Benchmarking PMO3
Sustaining and improving PMO4

1. Establishing PMO
Rollout
Defines
Role and
Staff
Needs
Pilot
PMO
Staff
PMO
Define PMO
Goals &
Governance
Design /Build
PMO
Processes
1
2
3
4
5
6
Measure
and
Update
7

2. Making PMO a Center of Excellence
Tools
• Identification of the requirements
• Selection of the right tool
• Assistance in implementation of the tools
Recognition
• ISO 9001 Quality Management System certification
• Establishing internal audit framework
• Successful audit and certificate of ISO 9001 QMS
Dashboard
• Development of KPIs and Thresholds
• Development of measurement system
• Assistance in developing dashboard in the tools

3. Benchmarking PMO
Communication
Management
Financial Management
Governance
Integration
Management
Issue Management
Organization Change
Management
Procurement/Vendor
Management
Quality Management
Resource Management
Risk Management
Schedule Management
Scope Management
Initial OptimizedRepeatable Defined Managed
Current Sate
Future State
PMI’s OPM3 will be used to assess and improve PMO practices

4. Sustaining & Improving PMO
Sustaining
• Monitoring of feedback and results for various stakeholders
• Fine tuning the processes, as per the feedback
• Making PMO as an important part of corporate culture
Maturity
Improvement
• Increasing PMO maturity, based on OPM3
• Sustaining the maturity improvement by ensuring benefits to
the stakeholders

Establishing an Effective PMO

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