PMO Challenges and Opportunities; DIPMF Presentation
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The term PMO has been around for many years but it stills creates confusion. There is no standard definition of what a PMO is, even what some of the letters represent. A lack of common definition is acceptable, yet desirable since one-size does not fit all. In this short presentation, the speaker will share his insights on PMO’s, purpose, mandates and why many PMO fails or are challenged. In addition, the speaker will discuss the critical link between PMO (Project Management Office) and OPM (Organizational Project Management) … closing with our hypothesis that unless the PMO own OPM, the organization will not achieve higher level of project management maturity and significantly enhance organization performance.
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PMO Challenges and Opportunities; DIPMF Presentation
- 1. www.sukad.com | info@sukad.com | Offices in Lebanon and United Arab Emirates PMO Challenges and Opportunities
- 2. Definitions Organizational Project Management | PMO Challenges and Opportunities 2
- 3. The Acronym PMO – “P”? Project? Program? Portfolio? Process… People… Profit…? Organizational Project Management | PMO Challenges and Opportunities 3
- 4. PMO – Two Possibilities • Usually for one major project or program • Dismantled once project or program is complete One Program/ Project PMO • For multiple projects or programs • Organizational unit • Should be permanent Organizational PMO Organizational Project Management | PMO Challenges and Opportunities 4
- 5. Challenges Organizational Project Management | PMO Challenges and Opportunities 5
- 6. No consensus on value of PMO Perceptions of high/low value are based on different characteristics PMO are short-lived Mandate covers either most, or few projects PMO houses few, or all project managers Dr. Brian Hobbs Survey – 1 Organizational Project Management | PMO Challenges and Opportunities 6 PMI Research
- 7. Dr. Brian Hobbs Survey – 2 Organizational Project Management | PMO Challenges and Opportunities 7 Most PM have small staff; apart from project managers Important functions are determined by the needs of the specific organizational context Location of PMO has an impact on mandate PMO performance depends on authority and organization's culture and PM maturity PMI Research
- 8. Does the organization have PMO (Q8) 67% 15% 15% 3% Does the Organization Have PMO Yes No Considering Other Comments SUKAD Research 2010 Organizational Project Management | PMO Challenges and Opportunities 8
- 9. PMO Success (Q18) 10% 42% 30% 8% 3% 7% PMO Success - Respondents' View Highly Successful Successful Neutral NotSuccessful Failure Others SUKAD Research 2010 Organizational Project Management | PMO Challenges and Opportunities 9
- 10. Comments on success rating (Q19) Highly successful • Top management satisfied with reporting level and escalation issues • The organization following the PM methodology • They get the job done • Recently established & successfully implemented PM fundamentals • Before failures we cancel projects • Meet deadline and budget SUKAD Research 2010 Organizational Project Management | PMO Challenges and Opportunities 10
- 11. Comments on success rating (Q19) Not Successful • Resistance and lack of accuracy • No repeated success stories • Trying to cover all types of project management and in the end looses focus • Does not meet its stated objectives • Not properly supported and championed by executive management SUKAD Research 2010 Organizational Project Management | PMO Challenges and Opportunities 11
- 12. Comments on success rating (Q19) Not Successful • Not enough authorities provided to PMO • No educated manager, no PMO methodology, no career path, no leadership • Projects done per the old way • Repeated failure in achieving the target • Was too utopian for a start-up organization • Novice PM capabilities SUKAD Research 2010 Organizational Project Management | PMO Challenges and Opportunities 12
- 13. Project Management in GCC1 Project Failures • Number 1 reason is lack of a methodology – 78% of respondents Other factors • Lack of communication – 75% • Unrealistic target completion dates – 67% • Inadequate senior management support – 59% 1 ITP Publishing - 10 May 2010 Organizational Project Management | PMO Challenges and Opportunities 13
- 14. Gaps in PMO implementation “Role of PMO must become more strategic and must develop its capabilities accordingly” PMI Thought Leadership Publication PMO are often • Not effective or not delivering optimal solutions, • Not able to become the organization’s PM department Still too much focus • On reporting or support; not leading or directing • Often not building the necessary OPM system Organizational Project Management | PMO Challenges and Opportunities 14
- 15. The PMO continuum Most common, lower value Organizational Project Management | PMO Challenges and Opportunities 15
- 16. Opportunities Organizational Project Management | PMO Challenges and Opportunities 16
- 17. Why the PMO Be ready to consider that the organization does not need a PMO Ensure you can differentiate on whether you need a PMO or OPM System Beware of false expectations! Organizational Project Management | PMO Challenges and Opportunities 17
- 18. PMO as an organizational unit1 1 Human Systems International: the effective PMO survey 2009 Enterprise PMO Business/ division PMO Program PMO Project PMO Hierarchical position Higher - Lower Natureoforganisation Temporary-Permanent Organizational Project Management | PMO Challenges and Opportunities 18
- 19. Strategicalignmentprocess Strategic alignment within organization EPMO? PfPMO? PgPMO? PjPMO? Organizational Project Management | PMO Challenges and Opportunities 19
- 20. PMO’s in an organizational structure EPMO BPMO Ptf PMO Pg PMO PPMO Organizational Project Management | PMO Challenges and Opportunities 20
- 21. The PMO continuum Most common, lower value Not as common, most value Organizational Project Management | PMO Challenges and Opportunities 21
- 22. Organizational commitment to PM According to Dr.Schloss, PM@Siemens has: • Attributed more than €39 billion in annual revenue to project management - drawing best practices from their experiences and internationally accepted standards • This is half of Siemens' annual revenue Report from Milan - PM@Siemens presentation during PMI Global EMEA Congress 2010 Organizational Project Management | PMO Challenges and Opportunities 22
- 23. Project management maturity Awareness Excelling Improving Applying Learning Performance Improvement CostSpentonProjectManagement 1 2 3 4 5 Organizational Project Management | PMO Challenges and Opportunities 23
- 24. The Center for Business Practices Think PMO Maturity = Project Management Maturity Organizational Project Management | PMO Challenges and Opportunities 24
- 25. Organizational Project Management | PMO Challenges and Opportunities 25
- 26. Organizational Project Management | PMO Challenges and Opportunities 26 The key is: can we change the Mindset?
- 27. Organizational Project Management Organizational Project Management | PMO Challenges and Opportunities 27
- 28. The origin of the concept The Engines of Project Management Organizational Project Management | PMO Challenges and Opportunities 28
- 29. Processes Organizational Project Management | PMO Challenges and Opportunities29
- 30. The Core – Fundamental Elements The Differentiating Elements The Differentiating Elements The Strategic Element Organizational Project Management | PMO Challenges and Opportunities 30
- 31. The vital points to note The strategic aspect is critical for any OPM or organizational system The fundamental elements are a must for any organization wanting to manage projects • They provide the core elements and processes However, to elevate performance we need the differentiating elements Each element have numerous components Organizational Project Management | PMO Challenges and Opportunities 31
- 32. How to build? Implementing OPM System Program Organizational Project Management | PMO Challenges and Opportunities 32
- 33. The Program – Extended Approach Organizational Project Management | PMO Challenges and Opportunities 33
- 34. 34Organizational Project Management | PMO Challenges and Opportunities
- 35. SUKAD Business Divisions Organizational Project Management | PMO Challenges and Opportunities 35 http://learning.sukad.com http://solutions.sukad.com http://technology.sukad.com http://multimedia.sukad.com
- 36. SUKAD Knowledge Sharing Sites Organizational Project Management | PMO Challenges and Opportunities 36 http://sukadway.sukad.com http://knowledge.sukad.com http://blog.sukad.com http://blog-ar.sukad.com
- 37. Organizational Project Management | PMO Challenges and Opportunities 37
- 38. SUKAD OPM System workshop Organizational Project Management | PMO Challenges and Opportunities 38 http://learning.sukad.com/courses/organizational-project-management
- 39. Thank you! 39Organizational Project Management | PMO Challenges and Opportunities