2. A Program Management Office (PMO) A PMO is a department or group that defines and maintains the standard processes for the execution of programs and projects. The PMO strives to standardize and introduce economies of repetition in the execution of projects. The PMO can serve the functions of project auditor, project manager and portfolio manager. Moreover, the PMO is the source of documentation, training, performance reporting on the practice of program/project management. Program Management Office Definition
3. Program and Project Management Issues: Project portfolio information is not readily available performance metrics Project impact is not tracked Increased number and complexity of projects In 2008, IT expects to manage 108 new projects, not including 24 in flight The potential for ongoing acquisitions will keep placing additional pressure on IT resources with the increasing number of projects Loss of key resource productivity Line and IT resources spending increasing amounts of time on project management and monitoring activities, distracting them from customer activities Projects are not prioritized, IT resources may not be focusing on the appropriate projects, everything is just a number Projects are suffering from scope creep, increased cost and missed timelines Not all projects have a project plan, there is no standard project approach Project planning efforts are not effectively executed on all projects leading to projects being delivered late and at a higher cost Project requirements are not solidly identified in all projects before IT resources are engaged
4. The implementation of a PMO can have significant benefits by improving the effectiveness and efficiency of program/project portfolios: Proactive selection, prioritization and management of the program/project portfolio – “Build the right thing” Proactive identification of issues, ideas for improvement – Demand Management Economies of scale in the integration of liked ideas into larger more impactful efforts Improved budgeting and estimation of program/project efforts and resource utilization Promote efficient and effective execution program/project management – “Build things right” Improve project ROI Reduced project cycle time Reduced delivery costs, delivery of projects on budget Delivery of projects on time Improved quality of project deliverables Increased capitalization opportunities Improved project tracking Reduce business and project failure risks Early identification and proactive management of project issues and risks Better containment and management of project scope Improve utilization of resources – including capital, equipment and people Align the right resources and identify knowledge gaps More opportunities to leverage and reuse knowledge Improved accuracy on the assignment and forecasting of resource utilization Reduced the time commitment of non project management resources
5. PMO’s are a organization in transition Corporate Executive Board — PMO Executive Council A Function In Transition, 2006
6. Perpetual MotionThe number of PMOs continues to grow, mature and transition their role: …leaders of this young function… While the use of PMOs within IT grows… (Companies with PMOs) / (Percentage of Respondents, 2003) (Age of Current PMOs) / (Percentage of Respondents, 2005) 4-6 years 82% More than 6 years 70% 20% 22% 53% 13% 45% Less Than 2 Years 2-4 Years n = 40 …search for the right structure… …and consider changing the role (Current and Desired Future Role for the PMO) / (Percentage of Respondents, 2006) (PMO Reorganizations) / (Percentage of Respondents, 2005) No Expected Change in Core PMO Role 34% 70% 50% 66% Corporate Executive Board — PMO Executive Council A Function In Transition, 2006 Plan for Change in Core PMO Role n = 47
42. Aligning PMO Competencies With the Core Mission PMOs looking to bridge gaps between current and ideal activity involvement for greater focus Manager Advisor
43. Organizations from different industries and diverging size have varied mandates and scope for their PMOs: (Key Characteristics) / (PMO Executive) Council Analysis) Corporate Executive Board — PMO Executive Council A Function In Transition, 2006
44. Moreover, the Corporate Executive Board found factors that are influencing the evolution of PMOs: Influence Without Control Successful PMOs are adapting their specific organizational structure and reporting relationships PMOs tend not to have direct ownership of project managers Focus on coordination and facilitation Looking Beyond IT PMOs are beginning to gain widespread recognition and expanding its scope to take on corporate-wide responsibilities Organizations are beginning to leverage their IT PMOs and are turning them into Enterprise PMOs or EPMOs From Support to Service PMOs across the board are getting more service-oriented Taking on more of a business partner role in project management PMOs are beginning to move away from being pure “cost center” within the organization and are starting to explore various types of chargeback mechanisms for their services
45. Types of PMO Influences (cont’) From Data to Decision PMOs are moving beyond data-oriented project reports to more strategic, portfolio-level dashboards PMOS are tailoring the level of information granularity to surface portfolio issues Surfacing pertinent information, inconsistency of metrics, and the quality and validity of data also continue to be challenges to PMOs Reporting will continue to be among PMOs’ top core activities 65% of PMOs dedicate at least 20% or more of their time to reporting However, overall effectiveness of reporting remains low Next-Generation Metrics PMOs are beginning to look beyond traditional approaches of tracking Relying more on the use of earned value (EV) metrics to track project- and program-level performance Other PMO metrics include: earn-burn rates, project sponsor engagement tracking, project initiation cycle time, time lag between project change requests (PCRs) authorization, assessment and implementation, and average project health recovery times The inability to provide forward-looking visibility for senior management is one of the biggest challenges for a PMO There are now many Portfolio Management tools available PMOs are increasingly relying on software-based automation tools for their reporting function More than 95% of PMO Executive Council members surveyed indicated they rely on automated tools for tracking
