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Enhancing Project Management Office (PMO) Value: Key Strategies and Insights

This presentation, led by David W. Burr, PMP, ITIL, provides essential insights into maximizing the value of Project Management Offices (PMOs). Participants will learn critical factors influencing PMO establishment, the impact on ROI, and how organizational culture and maturity affect PMO performance. The session will cover the importance of defining success criteria, strategies for aligning PMOs with organizational goals, and effective leadership and change management practices. Join us to explore practical approaches to ensure PMOs deliver greater value and success in project management.

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Enhancing Project Management Office (PMO) Value: Key Strategies and Insights

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Presentation Transcript

  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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