...THE Project Management Office (PMO) Prepared by: Dzingwa Madzima June 2010 1 Overview • • • • • • • The What and Why of PMO’s Starting a PMO Types of PMO’s PMO Roles and Responsibilities Executive Buy-In PMO Best Practices Telecel Zimbabwe PMO 2 The What and Why of PMO’s 3 Enhancing Your Bottom Line By Investing In Better Project Management Increasing Throughput Rate Strengthening the weakest link Achieving higher customer satisfaction Identifying the bottlenecks Reducing the program delivery interval Becoming the service provider of choice 4 What Is a PMO Exactly? 59% of respondents said PMO means project management office; 12% said it means program management office. Study by Brian Hobbs PMP and Monique Aubry “An organizational unit to centralize and coordinate the management of projects under its domain. A PMO oversees the management of projects, programs or a combination of both.” A Guide to the Project Management Body of Knowledge (PMBOK® guide), Third Edition © 2004, p. 17 In each organization, the definition of a PMO may vary in name and by function, but it essentially centralizes, coordinates and oversees the management of projects and programs. Article by Bud Baker, Ph.D. PMI Network, June 2007 5 The Project Management Office (PMO) A PMO is a centralized organization dedicated to improving the practice and results of project management. • • Some PMO initiatives are minimal, involving part-time staff. • Other initiatives involve huge infrastructure...
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...PMO: Project management office An organisational body or entity assigned various responsibilities related to the centralised and coordinated management of those projects under its domain. The responsibilities of the PMO can range from providing project management support functions to being responsible for the direct management of a projecti PMO Services:ii . Basic support services Administrative support for project managers Collating and reporting project status to senior management Providing standards, methodologies and a set of PM tools Managing project documentation (including risk registers, schedules, incident logs etc) Promoting project management within the organisation 2. Advanced specialist Services Consultancy and advisory services Strategic and governance services Developing competencies of personnel, including training and mentoring for project managers Advising project and programme managers Evaluating project managers’ performance Recruiting, selecting and/or allocating project managers Recording, analysing and disseminating lessons learned Identifying, selecting and prioritising new projects, including involvement in benefits management and business cases, contingencies etc Allocating resources between projects and programmes Providing advice and recommendations to senior management Conducting project health checks and post-project reviews Monitoring and reviewing PMO performance and its effect on project delivery SServuces Services Services ...
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...mission of a PMO? 1 What are the main challenges and obstacles in implementing a PMO? 5 What structures and governance mechanisms are critical to effective PMO implementation? 6 How much PM is enough PM? How much PMO support is enough PMO support? 9 References 9 What is the purpose and mission of a PMO? The purpose of a Project Management Office is to define and maintain projects management standards that must be implemented and adhered to throughout the organisation. The project management office must standardise the way that projects are executed by ensuring that policies, processes and procedures are repeated in exactly the same way in all of the projects that are performed in the organization. The Projects Management Office is the source of documentation, guidance and metrics on the practice of project management and execution. According to Taylor, J (2006) the idea of a Project Management Office is not a new concept. It is an old concept that was brought to live again as a result of the need to manage projects, and specifically Information Technology projects, better. Information Technology organizations have struggled to deliver projects on time and within budget more than any others. In the mid-1990s, approximately 80 percent of all IT projects failed, and of those that were restarted, about 50 percent failed. Therefore, the challenge to manage projects more closely has caused a resurgence of PMO implementations. The purpose of the PMO can be divided...
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...PMO Challenges The AtekPC Project Management Office Case Study was assigned for this class to provide an overview of the challenges faced by management in the development and deployment of a PMO in an existing company. Based on the case study respond to the questions below incorporating not only the course reading materials, but any outside research that may be relevant. Be sure to cite the authority for any research included in your response. What were the changes in AtekPC’s business environment that caused the company to introduce a PMO? Based on your assigned readings and research, do these appear to be appropriate reasons for developing a PMO? Why or why not? “One might be cost reduction. Another motivation to get better on projects would be that we have to get more creative, adaptive, and agile in launching new products. “ [1] “The PC industry was changing, and AtekPC was engaged in dealing with dramatic pressure from larger competitors such as HP, Dell, and Lenovo. To compete in a changing industry in which consolidation was occurring, AtekPC had implemented a corporate Planning Office. Recognizing the role that IT would likely play in enabling AtekPC to respond to the industry pressures, the senior vice-president had supported the creation of a PMO within IT. “ [1] Somewhat true but not sufficient Here are some other reasons of why we should have PMO. (of course it cannot represent everything) In mature organizations, the PMO is...
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...1. Purpose and mission for the PMO • The purpose of PMO was comprised of two categories: Project-focused and enterprise-oriented • Project-focused responsibilities strived to provide consulting, mentoring and training. These were the primary means for AtekPC to implement PMO in their organization. • Enterprise-oriented responsibilities focused on portfolio management, PM standards and project performance. • To derive the benefits (It performance in project performance, efficiency and resource utilization) from consistent project practices. • Providing mentoring and support project management for key projects identified by the IT executives. • To better prioritize what we work on, and taking a lead from that idea for building a business understanding of whatever the idea comes along. 2. Challenges of implementing PMO Intro: CIO faced with a lot of difficulties when implementing a PMO in AtekPC. Regardless of the technical challenges during the implementation, the core problem was of the PMO lacking organization support, from the top to the bottom. • There was not enough executive stakeholder support. • There was no visibility of the program. • There was a conflict of interests within departments. • People were reluctant to change the ways they had been doing things. Challenges to overcome: Light or heavy? • PMO vision and role were not clearly defined. There was no complete consensus regarding...
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...more efficient use of project resources by using a “shared service” and improve corporate capability to launch products. ------------------------------------------------- Challenges in implementing a PMO * Formalization of PMO faces the issue of change implementation, which might disrupt already existing informal practices within the organization. * Finding executives with domain expertise and project management skills. * Obtaining complete and sustained top-management support for authority. * Managing a diverse range of related and unrelated projects to achieve the maximum organizational value within resource and funding constraints. * Deliver immediate improvements in project performance and justify the cost * Lack of standardized reports and reporting frameworks for all projects. * Manage the conflicts between new business critical initiatives and operations with incremental changes in the existing system. * Handle conflicts between line managers and project managers. * Evangelize the idea of PMO to induce it in company’s organization. * Assigning metrics to ensure the PMO functions and roles will meet the business goals of your organization ------------------------------------------------- Essentials for successful PMO implementation: * Understanding the risks, challenges & work processes unique to the industry * Project portfolio...
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...Maturing stage. To face those changes, AtekPC established a Strategic Planning Office to try to help the business keeping up with their fast growing competitors. Before AtekPC started implementing the PMO the IT projects were handled internally by the current staff members carrying project management responsibilities. The changes and new challenges within the IT industry forced AtekPC to focus on IT improvements, efficiency, how they use their resources, cost management, consulting, and training. The project goal was to have the PMO help the company executives string together their strategic planning process and the project management across the company. The goal was also to provide IT improvements in project performance, efficiency, and resource utilization to enterprise improvements in cost management and corporate capability to launch products. Strider was also trying to gain support of all senior executives by the explaining the value the PMO services. Not all of the senior executives seemed to understand what their new role would be after the PMO was implemented, and that is an issue. When people do not know their roles it is hard to keep everyone within the organization on the same page. The Scope of the project was to provide formal PMO which incorporates the PMO values while being mindful of the current culture of AtekPC. Also, to keep coordination and effective standards of projects performed within the organization in order for AtekPC to meet its revenue, expenses...
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...its PMO? 2. What should AtekPC have done to successfully implement its PMO? Industry Background Proliferation of mobile phones, PDAs and web-based applications slowed PC popularity. Industry was undergoing a wave of Director Application Development consolidation as cost control and scale Richard Steinberg became more important. Chief Information Officer John Strider Director Technology & Operations Company Background Established in 1984, 210 full-time employees, 200 part-time employees. 2006 sales = $1.9 Billion. Dealing with an industry moving from Growth stage to Maturing stage. Strategic Planning Office established to propose business changes. SPO initiated PMO effort, focused on IT projects, with plans to become Enterprise PMO. Sales Systems Manager Lead Analyst Linda Starr Manufacturing Systems Manager Steven Gardner Lead Analyst Financial Systems Manager Lead Analyst Workgroup Communications Manager Adv. Systems Replacement Project Manager Director Project Mgmt. Support Larry Field Lead Analyst Lead Analyst IT at AtekPC - PMO was introduced to provide standardization in managing IT projects. Project Manager Pre-PMO (2007) IT projects are managed by development staff (Lead Analysts). Used informal approach to projects = rapid response to user requests. Struggled with changing industry that required larger, more complex projects involving multiple functional areas, which was overtaxing current management methods. PMO Director...
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...Project Management Office Summit Measures and Metrics for PMO Success 0011 0010 1010 1101 0001 0100 1011 Jim Kendrick, PMP, CMC President and Practice Leader © 2009 P2C2 Group, Inc. kendrick@p2c2group.com 301-942-7985 Also See Related Blog Articles http://jimkendrick.blogspot.com Web www.p2c2group.com Blog http://jimkendrick.blogspot.com Phone 301‐942‐7985 Email kendrick@p2c2group.com LinkedIn http://www.linkedin.com/in/jimkendrick Location Washington, DC Metro Area Measures & Metrics (c) 2009 kendrick@p2c2group.com Managing projects and portfolios without metrics is like sailing a ship without a compass! 0011 0010 1010 1101 0001 0100 1011 Measures & Metrics (c) 2009 kendrick@p2c2group.com 2 Why PMOs need measurement and metrics You already know … 0011 0010 1010 1101 0001 0100 1011 • 63% of projects have schedule delays • 49% of projects exceed budget or do not meet business objectives • 45% of projects face cost overruns • 23% of all projects FAIL Data published by Standish Group International, Inc., as reported in Computer World, February 17, 2003 http://www.computerworld.com/printthis/2003/0,4814,78517,00.html Measures & Metrics (c) 2009 kendrick@p2c2group.com 3 Most organizations have problems with their measures and metrics 0011 0010 1010 1101 0001 0100 1011 • • • • • • • • • Too much data Measures aren’t useful Too much time to collect and report data Data...
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...office (PMO)? At AtekPC, in early 2007 IT projects were mostly of operational and maintenance nature and IT department handles these project on the specific request of concerned business unit or functional area. Most of them are small to medium in terms of both length of project execution and size and they were handled informally without any standard practice. As per the Director of applications, they do have lot of operations project but very less number of enterprise applications. As per him, when they began to take a look at what they needed to do in the future, they realized that they had to really hone our skills to be able to move more aggressively and sure-footedly...
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...Universität Berlin, Chair for Technology and Innovation Management, Straße des 17. Juni 135, Sekr. H71, 10623 Berlin, Germany Université du Québec à Montréal, School of Business and Management, P.O. Box 8888 Downtown Station, Montreal, Quebec, Canada H3C 3P8 Received 27 July 2011; received in revised form 29 November 2011; accepted 26 January 2012 Abstract Project portfolio management offices (PPMOs) are a subset of project management offices (PMOs) that handle collections of multiple single projects and programmes, i.e. portfolios. PPMOs are centralised organisational units that cater to the demands of various stakeholders by performing specialised tasks. They are initiated by their organisation's leadership in response to increasing management challenges originating from project portfolios. Although there has been considerable research on PMOs in general, not only a clear understanding of multi-project PMOs' activity patterns set in specific contexts like project portfolio management, but also both existence and mode of multi-project PMOs' contribution to successful performance are still lacking. By quantitatively analysing PPMOs in 278 portfolios, we identify three different activity patterns, which are interpreted as distinctive roles. We show a significant positive effect of PPMOs' coordinating and controlling roles on performance in terms of project portfolio management quality, which is a predictor of portfolio success. © 2012 Elsevier Ltd. APM and IPMA. All rights reserved...
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...role of PMO in the strategy design and execution, to define the certain advantages and disadvantages from having PMO and how it participates in the successful strategy design and execution of any strategic plan. As organizations mature their project, program, and portfolio management practices to better align work with strategic goals, to support effective stakeholder communication and collaboration, to develop talent, and to place a focus on realizing value from organizational investments through effective benefits realization management, The PMO has many potential roles to play as a contributor to advancing these important topics. There are several types of PMO structures in organizations, each varying in the degree of control and influence they have on projects within the organization, such as: • Supportive. Provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects. This type of PMO serves as a project repository. The degree of control provided by the PMO is low. • Controlling. Provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. The degree of control provided by the PMO is moderate. • Directive. Take control of the projects by directly managing the projects. The degree of control provided by the PMO is high. PMO may have...
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...Universität Berlin, Chair for Technology and Innovation Management, Straße des 17. Juni 135, Sekr. H71, 10623 Berlin, Germany Université du Québec à Montréal, School of Business and Management, P.O. Box 8888 Downtown Station, Montreal, Quebec, Canada H3C 3P8 Received 27 July 2011; received in revised form 29 November 2011; accepted 26 January 2012 Abstract Project portfolio management offices (PPMOs) are a subset of project management offices (PMOs) that handle collections of multiple single projects and programmes, i.e. portfolios. PPMOs are centralised organisational units that cater to the demands of various stakeholders by performing specialised tasks. They are initiated by their organisation's leadership in response to increasing management challenges originating from project portfolios. Although there has been considerable research on PMOs in general, not only a clear understanding of multi-project PMOs' activity patterns set in specific contexts like project portfolio management, but also both existence and mode of multi-project PMOs' contribution to successful performance are still lacking. By quantitatively analysing PPMOs in 278 portfolios, we identify three different activity patterns, which are interpreted as distinctive roles. We show a significant positive effect of PPMOs' coordinating and controlling roles on performance in terms of project portfolio management quality, which is a predictor of portfolio success. © 2012 Elsevier Ltd. APM and IPMA. All rights reserved...
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...reason which is obvious is the thought of losing power and authority to the project management office. Another reason is that most people are afraid of change, they have been operating a specific way for so long that this change is scary when you don’t know what is coming down the pike. In a survey conducted by CIO and the Project Management Institute (PMI), “the top two reasons for establishing a PMO, according to the survey: improving project success rates and implementing standard practices”. Reading the question for this assignment, it is apparent that a project management office has been establish or is in the process of being established by the senior executives and John Compton; now the task before us is to decide where the project management office (PMO) should report to. Before we decide where the PMO should report to, we need to decide whether the PMO will be a centralized or decentralized team. “According to the magazine Information Week article on October 14, 2010, 57% of managers say that their PMO reports to the CIO”. Even though most organizations believe that the PMO team should reside in IT; in many cases there should be a cross-functional group that...
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...PME601 WEEK THREE HOME WORK VIDEO ONE: The Project Management Office (PMO) The PMO has become an important part of the business process because they align project objectives and broader business goals. One of the most important rolls the PMO has is taking on the role of becoming the guardian of all project management intellectual property. Executives fight over control of the PMO so they can have access to all the intellectual property. In order for a company and senior executives to accept a PMO you should gradually include less threatening activities then more threatening activities in order to let company executives become comfortable with the PMO. The PMO should always report to C level executives. The PMO should manage activities, which will enhance the company for the future. The PMO should always be looking to the future. The PMO’s focus should be on the corporate value-added activities. Most PMO’s are overhead and the return on invest (ROI) should be measured. Metrics must be established to show the ROI such as customer satisfaction or less project risk. There are three types of PMO’s functional PMO (resource management), Customer PMO (customer management), and corporate PMO (strategic and operational issues). It is possible to have multiple PMO’s networked together. The PMO has evolved over the years and now looks at staffing, change requests; validate funding, stream-lining project closure. VIDEO TWO: Understand Project Management Maturity Models Maturity...
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