Advanced Project Management Office: A Necessity for Today’s Global, Complex Projects

1. Advanced Project Management Office: A Necessity for Today’s Global, Complex Projects Dr. Ginger Levin Project Management Consultant Adjunct Professor – University of Wisconsin-Platteville Lighthouse Point, Florida, USA 954-783-9819 954-783-9235 (fax) ginlevin@aol.com ® Rad and Levin, 2004

2. Presentation Overview • Motivations to Establish a PMO • PMO Functions – Project and Enterprise • Determining Functions to Perform • PMO Implementation ® Rad and Levin, 2004

3. Definition of a PMO • The Project Management Office is: • The organizational entity with full-time personnel to provide a focal point for the discipline of project management • It may be called a: • Project Office • Project Support Office • Program Management Office • Project Management Group • Project Management Center of Excellence • Directorate of Project Management ® Rad and Levin, 2004

4. The Increased Importance of a PMO • The functions of the PMO have evolved: • It is not just an organization to provide support for scheduling and monitoring activities on a single project • It is becoming an essential component for the future success of the organization • It provides services and organizational focus in core and supporting areas of project management ® Rad and Levin, 2004

5. Reasons to Establish a PMO • The PMO helps to manage the organization’s future through: • An emphasis on ensuring consistency and uniformity in projects • An organizational desire to excel • An enterprise focus on improvement in project management competency • A reduction in project overruns • An increase in the delivery speed of projects • An increase in customer satisfaction ® Rad and Levin, 2004

6. PMO Goals Set Industry Standards Show Higher Corporate Profits Integrate Project Management into the Organization Improve Divisional Project Management Performance Have Competent and Productive Project Teams Implement Consistent, Formalized Project Management Finish this Project on Time/Budget Funding and Commitment Organizational Recognition ® Rad and Levin, 2004

7. Presentation Overview • Motivations to Establish a PMO • PMO Functions – Project and Enterprise • Determining Functions to Perform • PMO Implementation ® Rad and Levin, 2004

8. Project-Focused Consult Mentor Augment Enterprise-Oriented Promote Archive Practice Train PMO Functions ® Rad and Levin, 2004

9. Project-Focused Functions • Augment • Fill the gaps in team resources • Mentor • Work side by side with novice team members • Consult • Provide occasional validation and assistance ® Rad and Levin, 2004

10. Standards for managing projects Standardized report forms PM software Proposal development methodology Project start-up assistance Charters and scope statements Kickoff meetings Project risk assessment Project visibility room Project requirements changes Project workbook or library Timesheets Administrative assistance Project reviews Issue resolution Project closeout support Project Areas of Assistance ® Rad and Levin, 2004

11. Enterprise-Oriented Functions • Enterprise objectives have more long-term effects and include: • Promoting consistency and uniformity in project management • Archiving project performance data • Providing a centralized point of reference for the project management practice • Imparting specific skills and knowledge through training to project professionals ® Rad and Levin, 2004

12. Enterprise-Oriented Functions • Promote • PM culture advocate • Archive • Clearinghouse for project performance information • Practice • Best practices and state-of-the-art procedures and guidelines • Train • Ongoing training in PM ® Rad and Levin, 2004

13. Estimating Project selection Data integration Reward and recognition Project audits Communication facilitation Customer satisfaction Enterprise Areas of Performance ® Rad and Levin, 2004

14. Presentation Overview • Motivations to Establish a PMO • PMO Functions – Project and Enterprise • Determining Functions to Perform • PMO Implementation ® Rad and Levin, 2004

15. Organizational Goals and PMO Functions • The organization’s goals affect the functions that the PMO will perform: • The PMO can change the direction of the organization to one of enterprise project management • It also can primarily assist individual projects • It can serve as the interface between the project managers and others in the organization ® Rad and Levin, 2004

16. The PMO and Maturity Levels Level 5 – Supports Business Strategy and Enterprise Resource Allocations Level 4 – Supports the Entire Organization Level 3 – Supports a Division/Department Level 2 – Supports Several Projects in a Program Level 1 – Supports One Project ® Rad and Levin, 2004

17. The PMO at Level 5 • Functions of a PMO according to PMI’s PMO SIG: • The organizational structure, methodologies, processes, procedures, controls, tools, people, training, and other components serve to integrate existing projects, manage the portfolio, control functions, and successfully deliver the organization’s business objectives ® Rad and Levin, 2004

18. PMO Activities Enterprise Functions Mature Organization Crisis Management Mode ® Rad and Levin, 2004

19. Presentation Overview • Motivations to Establish a PMO • PMO Functions – Project and Enterprise • Determining Functions to Perform • PMO Implementation ® Rad and Levin, 2004

20. Phase 1 - Define the Goals for the PMO • Assign a lead for the initiative • This individual will require the skills and ability to communicate and effectively negotiate with senior management • Identify organizational constraints and assumptions • Definitions and terms to establish a common language • Business processes and procedures that all projects must use • Organizational and project metrics ® Rad and Levin, 2004

21. Phase 1 - Define the Goals of a PMOContinued • To define the goals: • Gather problem analysis information with a focus on business needs • Determine the root causes of troubled projects • Assess results from maturity assessments • Analyze the gaps • Then list the goals and the prioritized business needs ® Rad and Levin, 2004

22. Phase 2 – Obtain Organizational Support • Create a Communications Plan to determine: • Is the PMO of sufficient importance that a formal announcement by the sponsoring executive is needed? • What type of communication media describing the PMO should be used? • Are there any organizational entities that will not be receptive to having a PMO, the functions it provides or the authority it exercises? What special orientation is needed for them? • Should there be a meeting with all organizational entities? Individually or as a group? ® Rad and Levin, 2004

23. Phase 2 – Obtain Organizational SupportContinued • Create a presentation for an orientation that addresses: • Why is a PMO being created? • What are the objectives of the PMO? • What benefits will the PMO provide? • How will the PMO and organizational entities interact? • What is the frequency/schedule for the interactions? • What will organizations need to provide to the PMO? • What will the PMO provide to organizational units? ® Rad and Levin, 2004

24. Phase 2 – Obtain Organizational SupportContinued • Prepare a PMO implementation plan and develop organization-specific PM procedures: • In all areas of project management • For all divisions • Use the plan as a basis for: • Promoting • Training • Consulting • Mentoring • Augmenting • Disseminating • Archiving ® Rad and Levin, 2004

25. Phase 2 – Obtain Organizational Support • Present a realistic schedule for PMO results: • Project-level PMO • Three Months – One Year • Division-level PMO • One – Three Years • Enterprise-oriented PMO • Three – Seven Years ® Rad and Levin, 2004

26. Phase 2 – Obtain Organizational SupportContinued • Develop implementation milestones: • Metrics for success evaluation • Milestones and metrics • Short term, three months • Mid term, three – six months • Long term, beyond six months ® Rad and Levin, 2004

27. Phase 2 – Obtain Organizational Support • Write a Charter for the PMO including: • Goals and objectives • Responsibilities/authority • Assumptions • Constraints • Major risks • Major milestones • Approvals ® Rad and Levin, 2004

28. PMO Charter ® Rad and Levin, 2004

29. Phase 2 – Obtain Organizational SupportContinued • Reach agreement and gain commitment: • Provide an initial estimate of the PMO’s budget • Estimate the number of beneficiaries and organizational coverage • Outline the schedule and tasks needed to set up the PMO • Recommend the actions the sponsoring executive will need to take to support the effort • See whether a formal presentation and a special announcement are required ® Rad and Levin, 2004

30. Phase 3 – Define the Functions • Identify the basic functions of the Project Management Office: • Project-focused functions • Enterprise-oriented functions • Functions may be phased in over time ® Rad and Levin, 2004

31. Phase 3 – Define the FunctionsContinued • Define the scope (limits) of the PMO with options such as: • All organizational units or only certain units • All programs and projects or just a subset of certain projects, e.g. just high risk, high budget • The complete project life cycle or only support of concept phase and business case but not implementation ® Rad and Levin, 2004

32. Phase 3 - Define the Functions Continued • Decompose the items identified • Begin with a set of initial functions that will solve the highest priority problems and contribute most to the business improvements expected and that require the least investment • Set reasonable expectations • After the PMO is operational and gains support, then expand its scope ® Rad and Levin, 2004

33. Phase 4 – DefineRoles, Responsibilities and Interfaces • Define the roles and responsibilities of the PMO: • Vice President of Projects • PMO Director • PMO Staff Members • Determine roles and responsibilities relative to: • Project Managers • Functional Managers ® Rad and Levin, 2004

34. Phase 4 – DefineRoles, Responsibilities and Interfaces Continued • Define the interfaces with other organizational entities • List those entities with which the PMO will interact: • Internal organizations • External organizations • For each entity above identify: • Direction that will be received from the entity • Direction that will be given to the entity • Information that will be provided to the entity • Information that will be received from the entity ® Rad and Levin, 2004

35. Phase 4 – Define Roles, Responsibilities and InterfacesContinued • Determine where in the organization the PMO should report: • List advantages, disadvantages, challenges and critical success factors associated with each option • Discuss and negotiate options with the sponsoring executive ® Rad and Levin, 2004

36. Phase 4 – Define Roles, Responsibilities, and InterfacesContinued Determine the PMO placement ® Rad and Levin, 2004

37. Phase 5 - Identify the PM Processes and Tools • Describe internal and external project management processes and tools the PMO will use: ® Rad and Levin, 2004

38. Phase 6 – Estimate the Resources • Several techniques can be used: • A top-down or analogous estimate —appropriate when comparing to a PMO with another unit of similar scope and function • A bottom-up estimate based on the functions and interfaces to provide the most accurate estimate • An affordability estimate, based on the overall budget available, provides a limit as to what can be provided with a limited budget ® Rad and Levin, 2004

39. Promote Archive Practice T rain Consult Mentor Augment Scope - - - - - - - Cost - - - - - - - Quality - - - - - - - Schedule - - - - - - - Risk - - - - - - - Contract - - - - - - - Integration - - - - - - - Reporting - - - - - - - Communications - - - - - - - Team Relations - - - - - - - Client Relations - - - - - - - Vendor Relations - - - - - - - Phase 6 – Estimate the ResourcesContinued Cost of the infrastructure for: ® Rad and Levin, 2004

40. Phase 6 – Estimate the ResourcesContinued Consider the Organization’s Maturity Rating: ® Rad and Levin, 2004

41. Phase 6 – Estimate the ResourcesContinued Determine Project Performance Costs: ® Rad and Levin, 2004

42. Phase 6 – Estimate the ResourcesContinued ® Rad and Levin, 2004

43. Phase 7 - Get Budget and Approval to Start • Obtain executive approval: • Convince the decision-makers based on sound research as outlined in the previous phases: • Be thoroughly prepared with a complete knowledge of your planning data • Anticipate questions and be prepared to defend your logic • Finalize operating procedures: • Include documentation of the outputs from the previous phases that is approved by the stakeholders ® Rad and Levin, 2004

44. Acquire the individuals Start with a understanding of the functions to be performed Ensure staff have expertise to gain early confidence and acceptance Orient and train the individuals to the: Organization Business processes PMO objectives, plans and success factors Functions to perform and tools to use Phase 8 – Staff the PMO ® Rad and Levin, 2004

45. Advanced Project Management Office:A Necessity for Today’s Global, Complex Projects Thank You! ® Rad and Levin, 2004

46. References • Advanced Project Management Office, by Parviz F. Rad & Ginger Levin, CRC Press, 2002 • Achieving Project Management Success Through Virtual Teams, by Parviz F. Rad & Ginger Levin, J. Ross Publishing, 2003 • Assuring Project Success With Metrics-Based Management, by Parviz F. Rad & Ginger Levin, In Preparation • People Skills for Project Managers, by Steven W. Flannes & Ginger Levin, Management Concepts Press, 2001 • Project Estimating and Cost Management, by Parviz F. Rad, Management Concepts Press, 2002 ® Rad and Levin, 2004