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Aligning PMO Foundations for Maximum Value

Aligning PMO Foundations for Maximum Value. Presented by: David W Burr, PMP, ITIL. Learning Objectives. Understand key considerations that influence establishing a PMO Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs

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Aligning PMO Foundations for Maximum Value

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  1. Aligning PMO Foundationsfor Maximum Value Presented by: David W Burr, PMP, ITIL

  2. LearningObjectives • Understand key considerations that influence establishing a PMO • Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs • Identify how the organization’s culture and maturity impact the PMO • Understand the importance of defining and measuring success criteria

  3. Where do we start? • We need a PMO! But why?? • Everyone else has one • It’s the “Silver Bullet” • Air plane magazine article / Symposium attendance • Flavor of the month • Fact finding “2 by 6” (working sessions) • Why are we here? (forward looking) • Current State (reality) • Future State (realistic) • What’s in it for me (projected benefits) • Success definition

  4. What factors influence PMO ROI? • Sponsorship • Alignment with the organization • Organizational positioning • Organizational role of the PMO • What the PMO owns and influences • Change management • Process and success definition • Rewards and recognition

  5. Sponsorship • Leadership versus Management • Leading means doing the right things • Managing means doing things right • Who’s waving the flag • Do they have the juice? • Leaders need to be seen, heard, unified, consistent • Set 360o expectations and accountability • Encourage and support • Manage “up” a ½ hour a week • Leaders at all levels

  6. PMO Organizational Alignment (1 of 2) • One or Many? • By functional group, discipline, or silo? • Cross Line of Business? • Business or IT, Marketing or Sales, R&D or Manufacturing? • Business and IT, etc?

  7. PMO Organizational Alignment (2 of 2) • Bridging the gap between cross functional PMOs • We’re on the same team • We want the same results • We define success similarly • Collaborate! • Saves time • Helps identify defects … earlier • Works … require it!

  8. PMO Alignment or Effectiveness (1 of 2) • Alignment: • Theory: • The degree to which the [support] group understands the priorities of the business and expends its resources, pursues projects and provides information consistent with them.1 • Practice • Support personnel alignment with each subset of the organization • Complexity leading to inefficiency and ineffectiveness • Fragmentation, redundancy, and subscale operations • High Complexity = High Cost

  9. PMO Alignment or Effectiveness (2 of 2) • Effectiveness: • Theory: • Getting projects done as specified, on budget, and on schedule • Practice • A very small % of Executives believe their IT capability is highly effective, that IT ran reliably • Synch up strategies not personnel

  10. The Three Levels of a PMO

  11. The PMO Role • Levels of PMO interaction with projects • Monitor • Data collection and reporting of high level status • No accountability for delivery execution • Observe and evaluate activities • Mentor • Guidance and shared accountability • First-hand awareness supporting detailed reporting • Participation in complex, high risk activities • Manage • Full accountability for execution and delivery • Complete resource management and direction • Comprehensive reporting

  12. Information Technology The Project Management Office Projects Operations Maintenance Ownership & Influence Business Needs Ownership and Influence (1 of 2)

  13. Production The Project Management Office Manufacturing Research & Development Maintenance Operations Ownership & Influence Sales Ownership and Influence (2 of 2)

  14. Change Management and Pain • What is the impact of change? • Benefits and detriments • Business and people • Short term and long term • Skills and behaviors • Ownership and accountability • Everybody wants things to be better, but nobody wants them to be different • The Executive Misunderstanding • Truly lead

  15. Change Management Quiz • Quiz: • What is the most difficult management level to change? • A Individual Contributors • B Middle Managers • C Senior Leaders

  16. Cultural and Maturity Change • Maturity level: Correlation or Disconnect • Maturity level assessments • What is your current culture? • Very traditional • Baby Boomer • Gen X, Y or Z • Get faster slower

  17. Process Improvement Tools • Stock up your toolbox • PMI • CMMi • Staged, Continuous, or Both? • ITIL • Six Sigma • Lean • Methodologies • Policies, procedures, standards, best practices • Simplicity, tailoring and scaling • Don’t be a slave to any one tool • Bottom Line - Add value!

  18. Process Quality Assurance • Don’t expect what you don’t inspect • PMO and your town police • What’s happening if PQA is getting no voluntary feedback or very few questions?

  19. Metrics • Why measure? • What do we measure? • Are we ready to measure? • The curse of the initial baseline • Now that we’ve measured, now what?

  20. Success • Aspects of success • Technical • Behavioral • Organizational • Financial • Market Share • Stock Price • ROI • How do you reward success? • Applaud gallantry but analyze the root cause • Reward the desired behaviors

  21. Next Steps (1 of 2) • Raise awareness of PMO benefits (marketing) • Define success criteria • Gain Executive sponsorship • Initiate • Don’t wait for perfection • Define reality • E.g. All green projects and estimation • Identify and prioritize risks and issues • Uncover their root causes and reprioritize • Define measurement process

  22. Next Steps (2 of 2) Plan, Execute, Measure, and Control • An owner for every process • With great power comes great responsibility1 • Time-box the development and efforts of the PMO • A series of small successes • Work expands to meet the time allotted for its completion2 • Get faster slowly • Communicate until you’re sick of it, and then … • Gather, analyze, share, and incorporate Lessons Learned • Promote Continuous Process Improvement • Celebrate and team build (frequently)

  23. Questions? • Things that make you say Hmmm??? • Initial planning is the most vital part of a project. The review of most failed projects indicates the disasters were well planned to happen from the start. • The nice thing about not planning is that failure comes as a complete surprise, rather than being preceded  by a period of worry and depression • Everyone asks for a strong project manager – when they get one they don't want one • We figure it's more profitable to have 50% overruns than to spend 10% on project management to fix them

  24. Thank You Aligning PMO Foundations for Maximum Value Presented by: David W Burr, PMP, ITIL Harbur Consulting PO Box 546 Hebron, Connecticut, USA Harburmaster@Comcast.net

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