1. PMO–BSC.PPT
1
Program Management Office
The Program Office is the “glue” between corporate strategy and
projects.
Here’s the Balanced Scorecard for deploying the PMO
Glen B. Alleman
VP Program Management
Kaiser‒Hill ‒ Rocky Flats Environment Technology Site
National Nuclear Security Agency, US Department of Energy
14 October 2011
2. 2
Program Office Mission
Provide the assessment,
measurement, analysis, support, and
reporting of enterprise wide IT project
performance and departmental
process improvement activities.
3. 3
PMO’s Scope
Enable and support project
management disciplines.
Provide enterprise wide project
visibility, assessment, and reporting.
Project management guidelines.
Serve as a catalyst to develop an
integrated multidisciplinary approach
to project management.
4. 4
PMO’s Scope …
Develop a framework methodology for
project management.
Provide project management
methodologies to IT PM’s.
Provide support in deploying the PM
methodologies.
Tie project activities with budget and
forecast processes.
Provide data and processes to support
budget management.
6. 6
PMO’s Balanced Scorecard
Finance
Reduce PM costs
Provide support for
budget management
and forecasting
Customer
Increase confidence
Unify PM approach
across all projects
Operational Effectiveness
Deploy PM Infrastructure
Increase operational
effectiveness
Learnings
Create PM culture
Harmonize PM approach
7. 7
Financial Prespective
Reduce project:
Labor cost,
Resource utilization, and
Cost and Schedule variance
by increasing visibility and oversight into
project performance.
Budget Management
Forecast
Budgeted cost for projects performed
Budgeted cost for value delivered
8. 8
Customer Prespective
Increase visibility of project
performance for stakeholders.
Increase confidence in deliverable
commitments.
Insure project management activities
enable a seamless management
process between participating groups.
Make visible the cost, benefits, and
value of IT.
9. 9
Operational Effectiveness
Perspective
Deploy Project Server™ in support of the IT strategy.
Reduce the complexity of project management.
Integrate project management tools with established
IT department processes.
Identify and facilitate process improvement for IT
project management activities.
Provide a common project management meta–
workflow to facilitate the reporting and management
processes.
Create repeatable performance improvements for
enterprise portfolio project management.
10. 10
Learning and Growth Presepctive
Create and propagate a “project
management” culture.
Adopt standard project management
disciplines for all IT activities.
Simplify the “Project Management
SOP” while maintaining CMM Level 3
compliance.
11. 11
PMO Activities
Scheduling / Planning
All schedules supporting initiatives.
All other schedules acknowledged
Resources, costs, and baselines
contained in a central system.
Schedules and Budget mapped against
closure plan.
Actual costs reported through PMO.
12. 12
PMO Activities …
Budget analysis
Absorption rate against budget plan versus
deliverables for closure.
Gap analysis of budget.
Operational
Dashboards
Metric tracking
Process improvements
Strategy execution
Balanced scorecard management
13. 13
Success Criteria for the PMO
Project assessment
The project intervention effort is one that
never occurs.
Real–time project assessments provided
by the system.
Project Management
Assist PM for all strategic and cross–
functional projects.
14. 14
Success Criteria for the PMO
Portfolio management and decision
support
Resource plans
Skill inventories
Inter–project dependencies
Cross functional project constraints
Time and cost estimates
Risk management plans
Issues and change requests
15. PMO–BSC.PPT
15
Creating a Project
Management Culture
An effective project management culture
enhances the creation and delivery of value to
our customers.
It delivers this value by improving the functional
competencies and processes, without
diminishing the roles, knowledge, skills, or
control of functional managers.
It allows the functional managers to
continuously improve their technical expertise
and knowledge in a way that contributes to
present and future project activities.
16. 16
A Culture is created by. …
Creating reliance “on?”
Motivation and desire “to do?”
Converging values “for?”
Shared vision “of?”
Repetition “of?”
Participation and recognition “in?”
Commitment “to?”
17. 17
Changing the PMO Culture
“As Is” PMO Culture
Learning gained from
the environment.
Commonly held
personal beliefs.
Historical basis.
Heterogeneous
processes.
“Could Be” PMO Culture
Learning from external
and best in class
sources.
Gain explicit
consensus on
assumptions and
beliefs.
New and external
basis.
Homogenous
processes.
18. 18
Changing the Culture
Culture change is essential for
strategic change.
Culture change can:
Revitalize and reenergize the
organization
Improve organizational performance
Realign the organization with a new
vision and goals
19. 19
How to Change the PM Culture
Understand and characterize the
current culture
Identify and analyze driving and
restraining forces
Find ways to measure and strengthen
drives forces
Find ways to measure and weaken
restraining forces
Prioritize measures
20. 20
How to Change the PM Culture …
Identify and choose “change agents”
Gain management approval for
deploying change agents
Prepare action plan for change
process
Implement, assess, and evaluate
change process
21. 21
1st Steps in Implementing a
Project Management Culture
Gap analysis:
What initiatives are in place today?
Do they support the IT strategy?
Key PM components in support of these
initiatives?
Use and impact of methodologies to
improve project delivery?
Customer relationship gaps and closure
initiatives?
22. 22
1st Steps in Implementing a
Project Management Culture …
Best practices comparison
Management expectations
23. 23
Mechanics of Creating a
Project Management Culture
Document the project management
environment and expectations.
Define the roles and responsibilities.
Integrate and coordinate the project
management methodologies.
24. 24
Mechanics of Creating a
Project Management Culture …
Identify the project management
templates and tools.
Train and coach the project managers
on how to apply the practices of
managing projects to a successful
conclusion.
25. 25
A Project Management Culture
Contains …
Repeatable process.
Timely access to information.
Development of a knowledgeable and
skilled team.
Customer commitment to project
management.
26. 26
Repeatable Processes
Project management approach for
managing projects project is
documented, understood, and
followed.
Project management approach for
identifying and managing the work of
the project is documented,
understood, and followed.
27. 27
Repeatable Processes
Management approaches are flexible
in order to accommodate the needs of
the:
Customers
Regulatory requirements and directives
New and emerging requirements,
technology, and processes
28. 28
Timely Access to Information
Project related information: planning
templates, project plan and
supporting detail, status information,
lessons learned from previous
projects, available in the project
management repository.
30. 30
Portfolio Management Objectives
Develop the strategic plan, the
annual budget, and the integrated
project portfolio.
Project selection criteria derived from
and supportive of the strategic plan.
31. 31
Portfolio Management Objectives
Project selection criteria documented
and communicated in an objective
and consistent manner.
Project selection decisions are
communicated broadly.
33. 33
The Project Management
Method Must Be …
Rapidly developed and deployed.
Aligned with the IT Strategy.
Aligned with organizational
requirements.
Practical.
Flexible.
Adapted and changed to meet the
needs of the participants.
34. 34
The PM Culture Will Succeed
Because It ...
Establishes a common vision.
Builds a framework for action.
Improves and share existing best
practices.
Increases organizational
effectiveness.
Increases the probability of success
and sustained improvement.
35. PMO–BSC.PPT
35
PMO Tools and Technologies
“The plan is nothing: the planning is
everything.”
– Dwight Eisenhower
36. 36
What is the goal here?
What technologies are appropriate to
build the PMO?
How can these technologies be
deployed with the minimum of effort
and cost?
How can these technologies be
introduced into the IT organization
without disrupting the on going work?
37. 37
Mechanisms for Managing the
PMO
QFD – is a family of methods for
systematic evaluation of multiple
actions in terms of their detailed
contribution to multiple objectives.
Earned Value
Technical performance measurement
IPPD
Risk Management
38. 38
Technology Base
Microsoft Project
Project Server
Digital Dashboard
VBA Scripting
Global XML Architecture (GXA) ?
39. 39
More Tools and Processes
PVCS scripting
Change graphs
Process statistics
Unit and functional testing Dash Board
lights
Financial tools
Cost modeling and projections
Resource balancing
Cost and schedule impact models