The document provides an overview of building a collaborative project management office (PMO) at an organization. It begins with defining key terms like project, program, and portfolio. It then discusses the history and evolution of PMOs from the 1920s to present day. The document outlines various PMO typologies and maturity models. It also provides a case study analysis of implementing a PMO at Regus, a large flexible office space provider. The case study describes conducting a project audit at Regus and developing a collaborative approach and objectives for the new PMO. Finally, the document discusses various project lifecycle stages and tools for strategic project portfolio management.

1. Building a
collaborative PMO
A New Transversal Approach
of Building a Project and
Portfolio Management Office
10 May 2012
Gianluca Costanzi

2. Context
Implementing Project and Portfolio
Management Offices (PMOs) have
become a trendy topic, occurring
frequently, yet also disbanding at an
alarming rate. What are the benefits
and what are the risks? The purpose
of this discussion is how a PMO can
add value to an organization.
Through this discussion, we will
define a PMO, compare various
theories with the business reality
and recommend ways to
implement a successful PMO.
Finally, we will conclude with
some of the lessons learned
from the Regus case and the
best ways to move forward.

3. Academic Market
Case Study Conclusions
Thesis Structure

4. From Project Management to PMO
Who When What
Henry Gantt 1920s Activities chart (Gantt
Chart)
United States Navy 1950s Program (or Project)
Evaluation and Review
Technique, commonly
abbreviated PERT
PMI, Prince2 1990s Professional approach
about project
management
Y2K scare 2000s Coordinate approach
among projects (PMOs)

5. “An organizational body or entity assigned various
responsibilities related to the centralized and
coordinated management of those projects under its
domain. The responsibilities of the PMO can range from
providing project management support functions to
actually being responsible for the direct management of
a project.”
PMO Definition

6. Project – A temporary work effort with a discrete beginning and end undertaken to
meet a unique set of goals and objectives. A project is staffed by a temporary team,
and its output is measured by specific deliverables.
Program – A group of related projects managed in a coordinated way, to obtain
benefits and control not available from managing them individually. Programs may
include elements of related work outside the scope of the discrete projects in the
program.
Portfolio – A group of projects and programs managed in a coordinated way to meet
strategic business objectives, although they may not necessarily be interdependent.
The “P” Factor
Project = Do things in the right way
Program = Do things in the right order
Portfolio = Do the right things

7. While a PMO provides insights for the schedule, budget,
and risks of each project an EPMO is an entity acting as
an umbrella that governs multiple PMOs, which in turn,
provides oversight over numerous projects.
The rise of Enterprise PMOs
Tactical
Strategic EPMO
IT PMO R&D PMO
Operations
PMO
Marketing
PMO
Sales
PMO

8. What PMOs do?
• Project Support
• PM TrainingSupport
• Shared methodology and processes
• Competence frameworkGovernance
• Contribute to selection of projects
• Advise project owners, sponsors and
executives in charge of portfolio management
Strategy

9. PMO and Maturity Models
Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Nonexistent
- ad hoc
Initial -
reactive
Developing
– emerging
discipline
Defined -
initial
Integration
Managed-
Increasing
efficiency
Optimized-
enterprise
orientation
Definition
–
Typology
Community
of
Practice
Project
Support
Office
Project
Manageme
nt
Office
Portfolio
Office,
Centers of
Excellence,
Best-
Practice
Councils
Federated
PMO
Program
Offices
Enterprise
Program
Manageme
nt
Office
There are various popular models for Organizational Project Management
Maturity Model (OPMM), such as the P3M3 from OGC or OPM3 from PMI.
Also CMMI can be used as PMO maturity model schema.
They all share the general purpose of assessing the “status quo” of the
organization in terms of project management, as well as the steps necessary
to grow to a higher maturity level.

10. PMO Typologies
Supervise
• This PMO
generally
provides
support in the
form of on-
demand
expertise,
templates, best
practices,
access to
information and
expertise on
other projects
Control
• In organizations
where there is a
desire to "reign
in" the activities,
processes,
procedures, and
documentation,
among others, a
controlling PMO
can accomplish
that
Make
• This PMO type
goes beyond
control and
actually "takes
over" the
projects by
providing the
project
management
experience and
resources to
manage the
project

11. PMO Typologies vs. Value
PMO, while gaining maturity, increases in
responsibilities and raises in rank within the organization
since it is able to bring value-added to the business.

12. Market Analysis
Summary
 A PMO has a budget from 3%
(new PMOs) to 8% (mature
PMOs) of the entire company
project budget
 The vast majority of PMOs
work on high-value strategic
tasks: implementing or
managing the governance
process (72%), advising
executives (64%) and
participating in strategic
planning (62%).
Average PMO at Glance
» PMO Age: 3 years
» PMO Budget: US$500,000
» PMO Budget as Percent of Overall
Project Budget: 6.25%
» PMO Staff Size: 7 people
» Percentage of Project Managers that
Report to the PMO: 50%
» PMOs Using Contracted Resources:
56%
» PMO Staff with PMPs: 50%
» Project Management Experience of
PMO Staff: 10 years
» PMO Staff Training per Year: 8 days
PMO Value Benchmarks
PMOs contribute directly to the following performance improvements:
» Decrease in failed projects...................... 31% » Projects delivered ahead of schedule........................ 19%
» Projects delivered under budget........... 30% » Cost savings per project (% of total project cost)..... 17%
» Improvement in productivity...................... 21% » Increase in resource capacity.................................... 13%
» Cost savings per project........................................................................................................................ US$567,000

13. Market Analysis
Back in the early days, the PMO was
deeply embedded in the organization,
struggling to prove its value.
Nowadays, the scenario has
changed; PMOs are growing in
maturity and their focus is shifting
towards supporting the business
strategy in selecting projects.
Executives have seen the valued-
added by PMOs. They are more
oriented to the project selection
process (Portfolio Management) and
PMOs are a valuable ally in reaching
that goal.

14. Regus the Company
Regus in Numbers:
1200 Business Centers Worldwide
As of 2010, Regus generated revenue of
£1,040.4 million;
Operating income of £23.8 million;
Net income of £1.9 million;
Regus Employees worldwide: 5,687 (+10%
roughly in 2012).
Regus history:
1989 Founded
1994 Opened in Brazil
1999 Opened in China
2000 London Stock Exchange
2002 Sold the UK Business
2003 Regus filed for Chapter 11 US business
2004 Acquired HQ Global
2006 Re-acquired the Regus UK business
2008 Regus introduced Businessworld
Regus Products:
Office
Meeting Rooms
Video Conference
Tele Presence
Virtual Office
Business World

15. What is a Project in Regus?
•Projects have a clear scope, objectives and deliverables;
•Projects have a clear start and end date;
•Projects have resources and budgets allocated;
•Project deliverables have enduring value to the
business.

16. Project Audit
Major
Programs
• Project Ownership: many projects had multiple
sponsors and project managers;
•Project Methodology: the same project could be
managed with different methodologies as each
department would use its own references;
• Priority: all projects were classified as important
and subjective decisions were taken if projects would
conflict;
•Quality: Scope, Time and Cost of projects were not
overseen; therefore projects could go on forever,
with endless budgets, even while delivering poor
results and no expected benefits.

17. Analysis of Project Traits
15
30
40
25 25 25
30
25
0
5
10
15
20
25
30
35
40
45
Project challenge areasOut of 54

18. Are the projects aligned with Regus business strategy?
Are the projects visible to the senior management?
Do we know how much we are spending on projects?
Are we delivering projects?
Are the projects delivered on time? Within budget? Within scope?
Are the projects duplicated or in conflict with each other?
Do we measure the results of our projects and the benefits they deliver?
What do we learn from completed projects? Where is the project data stored?
Do we have skilled and trained PMs in charge of projects?
How many PMs do we have in Regus? What are they working on? What is the PM
organisational structure?
Are the PMs using the same tools for projects?
Why a PMO - let’s ask each other some questions

19. Regus Today
Regus Tomorrow
Why a PMO – how do we go from today to tomorrow ?
Project success is a critical enabler to helping
Regus become the company of the future
A PMO is not just about project management, it
is good business
A strong PMO is the key to unlocking business
innovation

20. Project
Community
PMO
Senior
Mgmt
The Collaborative Approach
2
Senior
Mgmt
PMO
Project
Community
Bottom-Up
Top-Down
Interviews and build
Relationships
Workgroup and build
Relationships
Relationship Management is key
enabler of a successful PMO

21. PMO Objectives
Short Term
1. Provide On-going Project Visibility
2. Approve New Projects
3. Develop PMO Methodology
4. Understand Individual Projects
5. Provide Project Support
2
Long Term
1. Manage Interdependencies
2. Measure Projects and Benefits
3. Standardize Project Management
4. Provide Governance
5. Assess and Coach Project Managers
6. Automate Project Management

22. Critical Success Factors and Key Performance Indicators
2
CFSs
Executive
Support
Effective PMO
Steering
Committee
Strong Project
Management
Infrastructure
Ability to
Measure and
Report on
Project
Performance
Management
of
Expectations
User
Involvement
and
Collaboration
KPIs
Decreases in
schedule and
budget
overruns
Customer/proj
ect participant
responses
Accuracy of
time and cost
estimates
Effectiveness
at mentoring
and coaching
project teams
Quality and
timeliness of
project
planning
documents
Delivery of all
projects to
planned scope
You Can't Manage What You Don't Measure
The success of the PMO is the
success of its customers

23. Steering / Project
Committee
Project Sponsor
Change Manager
Business Analysts
Project Manager
Change Manager
• Define impacts of change on business and
individuals
• Assessing business readiness for change
• Stakeholder identification, management,
engagement
• Change Enablement – training and support
approach, planning and material
Project Director
• Execution of Project Objectives
• Delivery to scope timeframes & budget
• Delivery of business objectives and benefits
• Issue/Risk escalation and resolution
• Progress Reporting
• Stakeholder expectations management
• Manage cross-project impacts
Project Manager
• Responsible for establishing Project Plan
• Delivery of project to time/ cost/scope and
objectives
• Funding requests
• Tracking & Coordination of scope delivery,
timeframes and budget
• Project resource management
• Project Independency tracking
• Project forums management
• Issue and Risk Management
• Status Reporting
Project Sponsor
• Provide Leadership & Strategic
direction to the project (decisions / advice / guidance)
• Alignment of project to Strategy
• Champion resourcing and funding
• Remove roadblocks
• Monitor progress according to defined scope,
timeframe and budget
• Ensure Program objectives are metProject Director
Steering Committee / Project
Committee
• Project Sponsorship and Ownership
• Provide Direction and Leadership
• Approval/prioritise
• Issue escalation and resolution
• Ensure Program objectives are met
• Responsible for realization of benefits
Business Analysts/Design Experts
• Completion of assigned activities to agreed
timeframe
• Raise issues and risks
• Requirements management
Roles and Responsibilities

24. Initiative Life Cycle Stages – Primary Activities
• Establish and document
need for project
• Align project to strategy,
objectives
• Document initial project
parameters, if known or
estimated:
– objectives
– scope
– cost
– benefits
– risks
• Evaluate and prioritize
portfolio of projects
• Provide details of
project, to aid in
planning project:
– WBS
– resource plan
– costs, benefits
– deliverables
• Form steering
committee
• Identify stakeholders
• Secure resources
(internal and/or external)
• Establish project mgmt
processes (updates,
change control, risk /
issue mgmt, cost /
benefit tracking)
• ID interdependencies
• Incorporate lessons
learned from similar
projects
• Execute project plan
• Manage stakeholder
interactions
• Review, check and
approve milestones
• Allocate resources
• Track and manage
risks, issues, and
dependencies
• Update planning
documents as needed
(change control,
forecast, project plan)
• Track benefit realisation
and costs incurred vs.
plan
• Validate benefits vs.
objectives
• Compare plan vs.
delivered (scope, cost,
timeline, benefits)
• Capture lessons learned
• Communicate results to
stakeholders
• Close risks / issues
• Close project budget
• Release resources
• Archive project files
• Document and share all
relevant information to
other projects
Primary
Activities
Initiate Plan
Execute &
Control
Close
24
As the initiative moves through each stage, emphasis shifts from approval to planning to execution.

25. Plan
Execute/
Control
Close
Evaluate
Feasibility
YES
NOPARK
Initiative*
Resubmit
Benefits
Initiate
*An initiative can include an idea, pilot,
project evaluation, test market, vendor
selection, etc.
If a pilot, proof of concept,
etc., revaluate feasibility
before converting to full
project
Project Management = “Do things right”
PortfolioManagement=“Dotherightthing”
Project
Portfolio
YES
NO
Decision
Pt. #1
Decision
Pt. #2
PARK
Project Portfolio - Initiative Life Cycle

26. Project Portfolio - Initiative Life Cycle: Funnel

27. Initiative Life Cycle Stages – Inputs and Outputs
• Initiative form
• Prioritization “matrix”
• Initiative form
(approved projects only)
• Capacity template
• Project brief
• Detailed project plan
• Resource plan / org
chart
• Business case
• Stakeholder mgmt plan
• Dependency tracker
• Plan and actual project
documents
Inputs
Outputs
Initiate Plan
Execute &
Control
Close
• Prioritized inventory of
projects
• Project brief
• Detailed project plan
• Resource plan / org
chart
• Business case
• Stakeholder mgmt plan
• Dependency tracker
• Status reports
• Risk and Issue Log
• Benefit tracker
• Change request log
• Decision point sign offs
• KPIs / Metrics
• Team logistics files
• Project closure
document
• Lesson Learned Log
• Files archived on shared
repository
Note: items in bold are primary documents used to facilitate flow in each stage
“Should we do this?” “Can we do this?” “How are we doing?” “How did we do?”Focus
Based on the focus of each phase, certain documents will drive the team’s primary activities.
Decision Point 1:
Yes / No / Park
Decision Point 2:
Yes / No / Park

28. The Initiative Form submitted by the project sponsor or manager allows the PMO to capture all
of the basic information needed by the Steering Committee to begin its feasibility analysis.
Initiative Form

29. Project Portfolio - Strategic Alignment (Screen 1)
All initiatives will first be evaluated based on their alignment to Regus’ strategic objectives.
Strategic Objectives
Few initiatives
supporting this
objective
Initiative does not
support any strategic
objectives
Decision legend
Yes - proceed
No - stop
Park - reevaluate
Illustrative

30. Project Portfolio - Other Project Attributes (Screen 2)
Initiative
1
Initiative
4
Initiative
3
Initiative
2
Time for benefits realization
BusinessValue(Benefit/Cost)
Low
High
High
Note: The attributes
shown here are
examples. Others
may be chosen.
- High Risk -Medium Risk
Initiative
5
Initiative
6
Initiative
7
Initiative
8
We might select all of those
with quick payback
Or, we might select high-
value nitiatives
Or a combination of both
Those passing the first screen will be evaluated based on other project attributes.
- Low Risk
Illustrative

31. Small initiative
Middle size
Project
Big Projects or
Programs
Focus on small initiatives
and no space for larger
programs
Focus first on the strategic
programs and then the
mid-size or small initiatives
that could be incorporated
Project Portfolio - Capacity Planning
Organization/BU

32. Project Portfolio - Capacity Tracking
Initiatives passing the two screens will also be evaluated in light of the company’s capacity to
provide the necessary resources to do the work. This will first be done at a high-level, and once
the resource plan is provided in the Project Brief, at a more role-based level, as seen below.
No IT Project Manager
capacity during this
period
Illustrative

33. 33
Project Portfolio - Scorecard
Emphasis 1 - minimal 2 - low 3 - moderate 4 - high 5 - significant
Scope Global >2 regions, and/or processes 2 regions, and/or processes 1 region or process
Only some countries within a
region, or some sub-processes
within a single process
Risk High, not fully mitigated High, but mitigated Medium, not fully mitigated Medium, but mitigated Low
Investment Costs £££££ ££££ £££ ££ £
Benefits £ ££ £££ ££££ £££££
Cross-functionality
Project requires active
participation of all
functional areas
Multiple functions; some more
active than others
Multiple functions participating
equally on project
More than 1 function
represented on team
Team limited to one functional
area
Customer / Field
impact
4-5 days/week, and/or
dedicated support
3-4 days/week, and/or
dedicated support 2-3 days/week 1-2 days/week < 1 day/week
People impact
headcount and/or role
changes, many FTEs
headcount and/or role
changes, few FTEs Role enhancements, many FTEs Role enhancements, few FTEs Limited
Process change
major process changes or
new processes
core process changes, or new
processes minor, and small new processes minor, to non-core processes
minimal; continuous
improvement
Technology change
New technology, major
upgrades, or new tools
some tool and report changes;
minor system upgrades minor tool or report changes
Interdependence vs.
other projects
High likelihood of failure to
deliver one or more projects
(without change request)
Demonstrated challenges to
deliver on one or more projects
Potential inability to execute all
assigned projects (without
change request) Low concern No conflict
Interdependence vs.
BAU
High likelihood of conflict
between roles
Demonstrated challenges with
performance of either project
or operations role
Potential inability to perform
both project, operations Low concern
No conflict between project,
operations
Stage
Proposed for full
implementation
Initial solution analysis
conducted. Vendor selection
required Pilot / POC to be performed Feasibility study proposed
New idea - no analysis
performed yet
Time to Benefits >24 months 18-24 months 12-18 months 6-12 months <= 6 months
Priority
Low - not required for other
High or Medium priority
initiatives to proceed Medium - enabler initiative
Medium - strategic initiative
with flexible timing
High - contractually/legally
obligated
High - major strategic or enabler
initiative
Governance
No Steering Committee; no
active Sponsor or
stakeholder engagement
Inactive Steering Committee;
limited involvement of sponsor
or stakeholders
Ad hoc involvement of Steering
Committee, Sponsor, or
stakeholders
Steering Committee meeting at
least quarterly; active Sponsor;
some stakeholder involvement
Steering Committee meeting at
least monthly; active Sponsor
and stakeholders
The PMO can evaluate and score each initiative against a more complete list of possible criteria.

34. Mobile
web
Oracle
CRM
Project Portfolio - Snapshot
Initiate
Janus
Cash
Mgmt
Billing
Efficienc
y
I3
Interactive
Intelligenc
e
Lux
Collection
sS
VC
Upgrade
Peopleso
ft HR
T C
S T
T C
S T C S T C
S T C
S T C
S T C
S T
Payment
Method
S T C
Plan
High
Project Life Cycle Stage
Execute /
Control
Close
LowBusinessValue
C
The colour code highlights the status of Scope, Timeline and Cost.
Green= on track Yellow= latest update not received or warning Red= No update received recently or critical
Scope
Timeline
Cost
S
T
C
S
Floodwir
e
S T C
C
Treas
Mgmt
System
S T C
Group Cos
to P/S
T CS
S T C

35. 2011 2012
FebJan Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q1 Q2 Q3 Q4
PeopleSoft HR
Payment
Method
Cash Management
Janus
Billing Efficiency
- Planned timing -Timing not certain
7Go Live
Payment Method
LUX
Collections
Oracle CRM
I3 Interactive Intelligence
Slippage/L
ate Start
VC Upgrade
Mobile Web
Floodwire
Extended due
to Re-scoping- Completed
VC Upgrade (Phase 2 and 3)
Group Cos to P/S
Project Portfolio -Timeline – key projects
Treasury Mgmt System/
Intercompany Netting

36. What Worked Well
• Both the EVP of Ops and the Group CFO communicated the role and importance of the PMO to those
leading projects within Regus early on
• Through discussions with sponsors, stakeholders and other PMOs, many projects were at least
identified, and information captured on them, even if after they were already “in flight”
• Some of the Work Group members have been, or are currently serving in, a similar PMO capacity
within their own functional organizations, and thus appreciate what the PMO is trying to accomplish
• Good relationships have been established with some of the VPs who recognized the value of the
work provided by PMO
Even Better If…
• …the Global Steering Committee had more regularly met and communicated the importance,
progress and successes of the PMO to all departments to ensure that the organization continues to
see the PMO and its standards as a priority.
• …work group members, and department heads receiving Group CFO's email, had followed up with
communication cascaded to the PMs/stakeholders in their areas
• …more dedicated resources had been assigned to design, build, and run the PMO (as well as
projects, where appropriate)
• …there had been more focus on relationship management by PMO Lead and Sponsor, to enable the
PMO to become a strategic partner to the Board

37. Next Steps - Federated PMO Model – proposal
• Global PMO aligned with Functional(divisional PMOs and Project Management Structures)
• Global PMO will continue to push each department to have a functional PMO
• Whereas not possible to have a functional PMO, Global PMO will continue to work with functional Project Managers

38. PMO Lead
PMO Analyst / Support Junior PM Senior PM
Next Steps – Global PMO Org Chart – Main responsibilities listed by role
4
 PM Assessment
 PM Coach
 Measure Projects and Benefits
 Manage Interdependencies
 Stakeholder Management
 PMO Framework Development
 Executive Portfolio reports
 Automate and Standardize Project
Mgmt Approach and Tools
 PM Coach
Project Support (master
project schedule, resource
capacity data)
 Project tracking and
control (resources, budget)
 Assist in measuring
projects and benefits
 PMO Administration
(project templates and
standards, PMO portal /
document repository)
 Track Interdependencies
 Project / Portfolio Reporting
and Analysis

39. S W
T
Strengths
• Relationship and Collaboration
• Tools and Processes
• Strategic and tactical approach
• Compentences and Skills
• Executive Support
Opportunities
• Agent of Change
• Business Driver
• ROI on Projects
• Strategic Partner for Senior
Management
Threats
• Constant Organization change
• PMO seen as an Overhead/Burden
• Tensions and Concflits due to PMO
role
• Lack of Competitors
O
Weaknesses
• Exepecations set too high
• Immature project management
• Communication Plan
• Resource Management
• Prove its value
• Cost Control
•One size does not fit all
•The success of the PMO is the success of its customers
•PMO is about people
Conclusions
Enabling a PMO is a journey that in the case of Regus has just begun.
There is a long way ahead to have a more mature PMO but the base has been established
and the rest of the house can be built on strong foundations

40. Thank You