Building the PMO as a Program
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The document discusses building a program management office (PMO) to deliver benefits. It emphasizes that PMOs are more likely to be sustained when they focus on creating value through benefits management. Examples are provided for how to establish a PMO as an iterative program, identify stakeholders and requirements, define expected benefits, develop an architecture and roadmap, and implement enablers to achieve benefits.
Building the PMO as a Program
- 1. Building the PMO as a Program Thomas Walenta March 2016, Webinar for South Ontario Chapter (this is the only clean and black & white slide)
- 2. Successful Project creates a product / output in time & budget that can contributeto benefits / outcomes Successful Program achieves benefits / outcomes that can create value What do you want to achieve? Output > Outcome > Value Values are perceived by beneficiaries of the benefit / outcome over time More time for familyA traffic system allows fluid transportationA bridge to cross something Project Program Operations
- 3. Program Management deals with benefits (another topic is: Project Management has no clue = Method, Training, Capability, Attitude) Program Understand Create Achieve Strategy / Benefits GovernanceStakeholders Program: A group of related projects, subprograms, and program activities that are managed in a coordinated way to obtain benefits not available from managing them individually. (PMI Standard for Program Management) Benefit: An outcome of actions, behaviors, products, or services that provide utility to the sponsoring organization as well to the program’s intended beneficiaries. (PMI Standard for Program Management) An outcome providing value to someone (Th. Walenta)
- 4. How to get a handle on benefits? ’Logic Modelling’ provides a tool to link resources to value Resources Value Outcomes Long term Objectives Activities Projects Enablers Outputs Products Customers Stakeholder Outcomes Benefits Shortterm Outcomes Benefits Intermediate plan create Project / Enabler of Benefits Benefit: seen as positive by a stakeholder Objective (SMART) / Value
- 5. ’Logic Modelling’ Examples Resources Value Outcomes Long term Objectives Activities Projects Enablers Outputs Products Customers Stakeholder Outcomes Benefits Shortterm Outcomes Benefits Intermediate Training Skills achieved by participants Improved performance Participants changed behavior List of attendies Test results Observation, use of skills Process throughput Standardize project reporting Benefit: Project Visibility Value: Reduce cost of recovery % of key projects reporting on time % of revenues spent on recovery Idea Categorization sheet Benefit: Project Categorization Increase strategic value of projects
- 6. PMO studies and surveys reveal similar results since years: PMO’s live longer when they create value, but most die young 2016 UK study with 686 participants, by Wellingtone/APM • Only 10% of PMOs exist longer than 10 years, 55% less than 4 years • Most difficult process to implement for a PMO is benefits management • 47% do not have PMO KPIs at all, only 19% maintain their KPIs • Most common PMO tasks are • Reporting • List of projects • Methodology 2013 German study with 257 participants, by GPM/IPMA • Only 25% of PMOs older than 5 years, 35% less than 2 years • Average number of projects supported by PMO: 35-‐106 • Acceptance of PMO highest when measured quantitatively • Most common PMO tasks are • Methodology • Reporting • Coaching 2007 PMO white paper, by Hobbs/PMI (based on survey of 500 PMOs, 43% Canadian) • 83% of PMOs younger than 5 years • 50% of PMOs are being challenged • PMO Setup duration is 6-‐24 months • 50% have less than 4 FTEs • Identified 27 PMO functions • Most common PMO tasks are • Reporting • Methodology • Monitor Performance 1998 book ‘The Project Office’, by Th. Block & D. Frame Five functions (still valid today) • Project support (incl. reporting) • Consulting & mentoring • Methods & standards • Training • Project Managers
- 7. Example: Setup the PMO as an iterative Program to deliver Benefits Stakeholders Requirements Expected Benefits Architecture Roadmap Implement Enablers Operate Enablers Measurements
- 8. Example: Identify and analyse stakeholders, develop surveys & interviews Stakeholders (80+) Requirements Expected Benefits Architecture Roadmap Implement Enablers Operate Enablers Measurements
- 9. Example: Collect and cluster requirements from interviews & questionnaires Stakeholders (80+) Requirements (219) Expected Benefits Architecture Roadmap Implement Enablers Operate Enablers Measurements KPIs
- 10. Example: Extract expected benefits from requirements (benefits register) Stakeholders (80+) Requirements (219) Expected Benefits (25) Architecture Roadmap Implement Enablers Operate Enablers Measurements KPIs
- 11. Project Management Office Project Portfolio Management Key Project Classification & Prioritization Resource alignment Task integration Benefits Mgmt Project Management Governance PM Standards Templates Integration SCRUM/Waterfall Reviews & Audits On-boarding process Risk Management Project Management Culture Community Communication Campus: Training Coaching Mentoring Certification Example: Define the PMO Architecture provides a sustainable framework for PMO benefits, PMO outputs and operations
- 12. PfM Process - priorisation PfM Process – resource alignment PfM List planned projects PfM List running projects PfM Process – portfolio health PfM Process – demand/planning PfM List all key projects PfM tool reporting PfM PfBoards MD/VGI PfM Scenario Tool PfM PEB Standard Project / Enabler of Benefit Benefit: seen as positive by a stakeholder (Key) Objective (SMART) PfM temp - Catagorization sheet PfM Process Res Capacity Mgmt PfM Process Res/demand coord PfM - template Benefits Register PfM - process Benefits Mgmt PfM - template Business case PfM –develop skills benefits mgmt PfM - template Benefits Report PfM proc DCC process PMOP05: Project Categorization 1 PMOP01: Establish Portfolio Visibility 1 PMOP06: establish preproject standard 5 PMOP02: Resource planning & alignment 3 PMOP04: Efficiency by Portfolio Prioritization 1 PMOP03: Ensure PEB/DCC and x-Team coordination 2 PMOP07: Customer expectation and benefits management 5 PMOP08: Pool key skills & resources 8 PfM Process Bottleneck mgmt PfM - template 'IT Value Sheet' CULT Customer survey Example: Create Benefits Roadmap using ‘logic modelling’ (Portfolio) Increase strategical value Increase Efficiency Increase Customer Sat Increase visibility Improve standardization started doneplanned
- 13. Example: Implement enablers of benefits Stakeholders (80+) Requirements (219) Expected Benefits (25) Architecture Roadmap Implement Enablers Operate Enablers Measurements KPIs
- 14. Examples of implementing enablers: schedule / templates Enablers/outputs are e.g. templates, processes, workshop, presentations, governance, meetings, reviews …
- 15. Example Portfolio Management: Template ‘categorization’ to prioritize ideas ROI Strategic Relevance Resource fit Compliance and Legal must Application Landscape fit Strategic Relevance (0-‐18 pts): • Increase revenue / profit 2 pts • Increase efficiency 2 pts. • Market penetration / Customer value 2 pts. • Contribute to strategic company goal 2 pts • Fit4Growth Projects 10 pts. Financial Impact / ROI Calculation (0-‐10 pts.): (OPEX+CAPEX+Operations) devided by Planned savings ROI <= 1 year: 10 pts. 1 > ROI <= 2 years: 8 pts. ... 4 > ROI <= 5 years: 2 pts. No ROI or > 5 years: 0 pts. Compliance and Legal must (0-‐10 pts.) • no relevant 0 pts. • IT Release Update 5 pts. • Mitigate Business Risk 5 pts. • Legal/Tax relevant 10 pts. Application Landscape fit: • does not fit to current IT landscape 0 pts. • new system, new service required 2 pts. • new component for existing system 3 pts. • extend/modify existing system 4 pts. • use existing system 5 pts • Set new standard 6 pts.. Ranking Pts. = Strategic Relevance + ROI + Compliance and Legal must + VGI Application Landscape fit MAX Ranking = 44 pts. Running projects = 100 pts.
- 16. Example: Implement enablers of benefits Stakeholders (80+) Requirements (219) Expected Benefits (25) Architecture Roadmap Implement Enablers Operate Enablers Measurements KPIs
- 17. Example Portfolio Management: semi-‐annual Portfolio Board (C-‐Suite + 1st line below) Focus of IT Portfolio Board 03 / 2016 Focus of IT Portfolio Board 09 / 2015 Portfolio Planning § Resource Capacity Planning § Financial Planning § Prioritization Portfolio Management § What-‐if Modeling § Target Modeling § Key Driver Analytics Analyze § Portfolio Health & Value contribution § Exception Management Analysis Plan Select Capture Collaboration § Progress Status § Issue & Risk Management § Change Management Execute Resource Alignment § Reallocate Resources § Remove completed projects § Cancel projects § Sunset projects Manage Demand Management § Idea Categorization § Strategic Initiatives § Operational work
- 18. Planning ExecutingInitiating Closing Example Governance: Generic project lifecycle, artifacts and deliverables § Rough Budget Planning § Rough Project Scheduling § Stakeholder Analysis § Risk Register § Project Charter § System Approval § Procurement For key projects: § Pre-Project § Benefit Register § Business Case § Resource Planning (Org.-Chart) § Detailed Project Scheduling § Set up MS Project § Scope Management § PMP (Project Management Plan) § Stakeholder Mgmt. § Risk Management For key projects: § Initial SteerCo § Kick Off § Status Reports § Budget Tracking (Plan/As-is) § Stakeholder Management § Risk Management § Change Requests § Documentation for AMS For key projects: § SteerCo § Project Acceptance Letter § Final Lessons Learned Workshop + Project Celebration For key projects: § Final SteerCo Gate 1 DoR Gate 2 Startup Gate 3 DoD Gate 4 Closing Health Check Health Check Health Check Kickoff Initial SteerCo SteerCo SteerCo Lessons Learned final SteerCo Lessons Learned Lessons Learned Monitoring & Controlling Processes Initiating Processes Closing Processes Planning Processes Executing Processes Project Lifecycle phases not be confused with iterative PM process groups (Thomas Walenta)
- 19. Example Governance: Standardized Health Check for all key projects, part of weekly report Major success factors for projects Delivery organization benefits are being realized Scope is realistic and managed Business Benefits are being realized Work & Schedule are predictable Team is high performing Risks are being mitigated Stakeholders are committed Assess Repeated depending on a project’s health, e.g. RED = monthly Plan Implement Impact Integrated Project Management Plan §Stakeholders §Business benefits §Work & Schedule §Scope §Team §Risks §Delivery organization §Project Plan Based on IBM’s 7keys method Red Amber Green
- 20. Example Culture: PM Development Path Consultant Staff Project Mgr (parttime) Project Ldr (100%) Program Mgr / Scrum Master PM Staff Training (understanding) Assessment Experience (practice) Expertise (analyze/synthesize situations) Extend & enhance (evaluate PM concepts) CAPM PMP PgMP Coaching Certification Program Be a mentor Business Analyst PBA PMI ACP Hypercare Job-‐ Rotation Get a mentor PMI Certifications: CAPM Certified Associate Project Manager PMP Project Management Professional ACP Agile Certified Practitioner PgMP Program Manager PBA PMI Business Analyst LeadershipPracticePerspective PMI’s talent triangle & IPMA’s eye of competence Business Analyst
- 21. Example: Measurements • Points of Measurement: outputs, benefits, value • Developed 2-‐8 potential measurements per benefit • Progressively elaborated • NOT: implementing or reporting all measurements • BUT: decide on what key stakeholders want or need and when
- 22. Most busy slide of this presentation Stakeholders (80+) Requirements (219) Expected Benefits (25) Architecture Roadmap Implement Enablers Operate Enablers Measurements KPIs Major success factors for projects Delivery organization benefits are being realized Scope is realistic and managed Business Benefits are being realized Work & Schedule are predictable Team is high performing Risks are being mitigated Stakeholders are committed
- 23. Setup the PMO as an iterative Program to create Value: Starting with stakeholders, identifying and realizing benefits, closing with KPIs Stakeholders Requirements Expected Benefits Architecture Roadmap Implementation Operations Measurements, KPIs Resources Value Long term Outcomes Objectives Activities Projects Enablers Outputs Products (e.g. training) Customers Stakeholders Outcomes Benefits Shortterm (e.g. skills) Outcomes Benefits Intermediate (e.g. behavior) Project / Enabler of Benefit Benefit: seen as positive by a stakeholder Objective (SMART) / Value Necessary for Success Traditional PMO