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Pmo final 1
- 1. Project Management Office Presented by- Group F Group F - PMOs Implementation,Functions and Sustainability
- 2. Introduction • PMO is a centralized Organization dedicated to improve practice and results of project management • PMO is termed as a ‘Value Machine’ that provides higher return on investments that any organization makes in projects • PMOs can be deemed as the arms of executives to meet their strategic goals by being the single point of knowledge Group F - PMOs Implementation,Functions and Sustainability
- 3. Roles of a PMO • Provision of administrative support • Identify, develop and mentor PM maturity • Determine if a new project is ‘fit’ for the changing organization • Linking project strategy to project execution • Establish and enforce good PM processes such as procedures for bidding ad risk analysis • Identify downstream changes in the and impacts on current projects • Ensuring lesson learnt are documented and implemented for continuous improvement Group F - PMOs Implementation,Functions and Sustainability
- 4. Categories of PMO Supportive PMO Project Management Controlling PMO Office Directive PMO Group F - PMOs Implementation,Functions and Sustainability
- 5. PMO Framework STRATEGIC MANAGEMENT •PMO is a governance structure for organizational Formulate Reformulate project management Strategy Strategy •Before Sustainability PMOs position in the organization Leadership and should be known (direction) Processes Clarify Actions PMO Collate and Analyze •PMO work in a lifecycle with Processes major roles associated to it and Procedures •The PMO articulates the Optimize processes and procedures Gather Data Effort associated with the strategy •Data gathering and Programs and Projects amendments are made looking into the project and program Group F - PMOs Implementation,Functions and Sustainability
- 6. Increasing Responsibility PMO Value Scale Benefit Management and Strategic Alignment Project Portfolio Project Controlling and Execution Project Reporting Increasing Value Group F - PMOs Implementation,Functions and Sustainability
- 7. PMO: The Value Creator VALUE Engaged and relied-upon for involvement in strategic activities K E Y P LAY E R Staffed with experienced professionals Group F - PMOs Implementation,Functions and Sustainability
- 8. Capabilities for PMO Success • Project Portfolio Selection • Financial Planning • Performance tracking • Project Status Reporting • Project Dependency Management • Change Order Management • Project Quality Assurance • PM Training Group F - PMOs Implementation,Functions and Sustainability
- 9. Benefits Obtained from PMO • Provides a full transparency into all aspects of the projects • Better control over the projects • Better equipped with information that allows for decision-making • Minimizing uncertainty and associated risks • Increasing support and buy in from all stakeholders Group F - PMOs Implementation,Functions and Sustainability
- 10. Why PMOs Fail • Change of Leadership • Not adapting key project practices • Benefits are too long coming • Organizations don’t take the change • Irrelevance • Difficult to get a buy-in from the top management Group F - PMOs Implementation,Functions and Sustainability
- 11. Ensuring Sustainability of PMOs • Continuous Improvement • PMO has to have an environment where ideas can be created • Governance • Continuous Training • Standardization & Optimization of Project Management Methodologies • Create uniqueness in organizational operations • Consulting and Mentoring roles Group F - PMOs Implementation,Functions and Sustainability
- 12. Success Factors PMO • Clear understanding of the expectations of the client • Clear and effective communication • Client Involvement • Involvement of top executives as major stakeholders in the place • Executives should understand the PM practices fully • PMOs should be aligned with the organizations strategy Group F - PMOs Implementation,Functions and Sustainability
- 13. Forms of PMOs • PSO - Project Support Office • PPSO - Projects & Programme Support Office • PMO - Project Management Office • EPMO - Enterprise Programme Management Group F - PMOs Implementation,Functions and Sustainability
- 14. Categories of Functions 1. Project Focused • Consulting Services • Mentoring • Compiling lessons learnt • Budget and cost monitoring • Schedule and record meetings • Archiving performance data • Establish knowledge management systems 2. Enterprise Oriented • Staff augmentation • Communication • Team building • Problem solving • Training Group F - PMOs Implementation,Functions and Sustainability
- 15. Determining Appropriate PMO Roles Assess Current Management Practices Ensure PMO involvement throughout the Project Identify Loopholes in managerial processes Implement Strategic or technical approach for functional delivery Group F - PMOs Implementation,Functions and Sustainability
- 16. Evolution of PMO Group F - PMOs Implementation,Functions and Sustainability
- 17. 3 Processes evolving PMOs Understand the role the business wants • Reduce Business Risk the PMO to play. PMO to improve project delivery and develop Don’t deliver a competent project managers. battleship solution • Effective Manage of Resources you can’t support Move to a programme management office to and that the coordinate business and project teams. business doesn’t • Contribute to Business Growth need. Evolve to a Portfolio Management Office to optimise organisation’s Project Portfolio and its Mike McLaughlin realisation of benefits. Director IT PMO and cross- functional services EMC Corporation Group F - PMOs Implementation,Functions and Sustainability
- 18. Group F - PMOs Implementation,Functions and Sustainability
- 19. Conclusion •PMO roles are temporary but is still a vital office to maintain Project, Programme and Portfolio Success. •PMO needs to be flexible to allow for any changes in situations. Group F - PMOs Implementation,Functions and Sustainability
- 20. Group F - PMOs Implementation,Functions and Sustainability
- 21. References • ANDERSEN, B., HENRIKSEN, B. and AARSETH, W., 2007. Benchmarking of Project Management Office Establishment: Extracting Best Practices. Journal of Management in Engineering, Vol. 23 Issue 2, p97-104 • ESI International & PMO white paper., 2010. Taking Your PMO to the Next Level: Four Steps to Value Improvement.[online]. Available from : • http://www.projectsmart.co.uk/docs/taking-your-pmo-to-the-next-level.pdf [Accessed 2 March 2013] • HURT and THOMAS, 2009. Building Value Through Sustainable Project Management Offices, Project Management Journal, Vol 40, No 1, p55-72 • LARSON, E. W. and GRAY, C.F., 2011. Project Management: The Managerial process. New York: McGraw-Hill, 5th ed. • KENDALL, G. I. and ROLLINS, S. C., 2003. ADVANCED PROJECT PORTFOLIO MANAGEMENT AND THE PMO, Multiplying ROI at Warp Speed [online] Available from : http://books.google.co.uk/books?id=Zb2L9awkAsAC&printsec=frontcover&dq=PMO&hl=en&sa=X&ei=Mu4tUdXfEcH C0QXSloDYBQ&safe=active&redir_esc=y [Accessed 03 & 04 May, 2013] • MEREDITH, J.R. and MANTEL, S.J., 2012. Project Management A managerial approach. 8th ed. John Wiley & Sons, Inc. pp. 192-196. • RAYNOR, D. and FINCH, C., 2011. Unlocking PMO Profitability, Project Smart Website [Online] Available from http://www.projectsmart.co.uk/unlocking-pmo-profitability.html [Accessed 02 March, 2013] • SHARMA, J., 2012. The Benefits of Having a Project Management Office (PMO) [online] Available from: http://www.tribridge.com/Blog/epm/default/2012-04-25/The-Benefits-of-Having-a-Project-Management-Office- PMO.aspx [Accessed 03 & 04 May, 2013] Group F - PMOs Implementation,Functions and Sustainability
Notes de l'éditeur
- Larson and Gray 2011 describes project management office as the unit that serves the organizations project management needsIdeal performance of a PMO is the same as what an air traffic controller does. It should guide projects safely and as quickly as possible to their destinations
- Roles can range from managing part time staff to planning and controlling huge infrastructures
- Supportive PMO: This structure is generally focused on the provision of support in the form administrative requirements, templates, project performance reporting and ongoing trainings. There is no control over the project manager and the team in delivery the projectControlling PMO: In most cases, providing support alone is not sufficient to maintain the expected performance of projects. The controlling PMO ensures that project management procedures and methodologies are applied through regular reviews, project audits, conformance to governance and sometimes corrective actions are taken. Directive PMO The directive PMO is a more authoritative structure as it PMO takes over all the activities of project management in an organisation and goes beyond project support and direction, but is fully involved with the day-to-day management of approved projects. It provides the expertise and resources required to manage projects. This type of project office injects a great deal of professionalism in managing project hence, providing a high level of consistency
- The studies described above show that most PMOs currently focus on the bottom part of the governance structure which consists of optimising effort and gathering data as well as setting standard processes and procedures.
- its success rests on perceiving critical needs and addressing those before moving to the next step. But, each incremental step forward included more “strategic” activities associated with project management and the business at large.PMO develops like a classic life cycle model, at the same time that the maturity increases in the PMO and in the organization. They propose a model which consists on:Development of common approach and tools for project management;Introduction of governance processes and quality assurance;Implementing true project portfolio management.PMO can be made the criteria against which all decisions are made for value creationPM executives and their teams must define project targets for the PMOESI suggest, that the closer the PMO works with senior management in strategic planning, managing benefits and business alignment, the greater its value to these very people whose agreement is required to create it, or eliminate it. Diagram showing how value could be achieved with PMO across the organisation.
- Strategic activities: Programme Management and Portfolio ManagementStaffing the PMO with senior team members who possess critical skills will go far toward the perception of your PMO as a “value creator,” and not merely overhead (ESI)
- Project Portfolio Selection - Processes that cover the strategic alignment of projects with overall business objectives.Financial Planning – Budgeting and planning of projects.Performance Tracking - Tracking delivery and performance against KPIs and project benefits identifiedProject Status Reporting - Tracking milestones, costs, baselines, and reporting to stakeholders on the status of a projectRisk, Issue and Project Dependency Management - Tracking, analyzing and escalating issues, risks and inter-project dependenciesChange Order Management - Managing processes related to approval of new projects or changes in scope, budget, and timeframes of existing projectsProject Quality Assurance - Managing QA processes and ensuring that the quality of all deliverables is checked according to the agreed guidelinesPM Training - Training staff to ensure project success
- Example company might setup its PMO success criteria around the budget when the organizations overall focus is innovation
- Evolving the PMO: a competency continuum (Gerard M. Hill)Progressive competency and advanced of functionality that can be attained to meet the needs of the project management environment and theassociated business objectives.