PMO Development - Line of Sight
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The document discusses the challenges and traditional models of Project Management Offices (PMOs), emphasizing the need for a strategic and value-focused approach to PMO development. It outlines essential steps for positioning a PMO for success, including defining functions, scoping ownership, and following a formal development methodology. The approach aims to create immediate value for customers and improve the effectiveness of PMOs in managing projects and aligning with organizational goals.
PMO Development - Line of Sight
- 1. A Practical Approach To PMO Development ©2013 Line of Sight
- 2. The Challenge 2 Finance ©2013 Line of Sight
- 3. PMOs Need To Elevate Their Status 3 “The Multi-Project PMO:A Global Analysis of the Current State of Practice” By Dr. Brian Hobbs University of Quebec at Montreal, Quebec, Canada © 2007 Project Manangement Institute. All rights reserved. ©2013 Line of Sight
- 4. Organization Layer Project Layer Skeptical Customers – Business units, division heads, contracting units, and others often don’t see the value of a PMO. Lack of Authority – PMs cannot take swift action to manage projects or implement practices without approval from Project Directors, Sponsors, or Executives. Increasingly Complex Projects – Especially true for IT, as organizations move toward enterprise solutions the level of complexity increases. Conflicting Guidance – To PMs from Sponsors and Project Directors, including competing priorities and inconsistent practices. Austere Budgets – Facing a post-ARRA world, governments face a 24-month lag in recovery. “Matrixed” Resources – Team members on loan, outside the PM’s organization or “chain-of- command”. Multiple Missions – Disparate missions within single organizations leads to funding imbalances, power struggles and lack of results. Project Management “Overhead” – The practice is perceived as a burden. PMs and team forced to do projects over, instead of doing them right at the beginning. 4©2013 Line of Sight
- 5. Promote Facilitate Champion Create 5©2013 Line of Sight
- 6. Traditional PMO Models •Minimal staffing, deep PM expertise •Focus on methodologies and best practices •Use of knowledge and content management tools Center of Excellence •Mix of PM and training expertise •Focus on Coaching, Mentoring, Training •Use of PMIS and LMS Project Support Office •Stable of PM’s •Focus on leading and managing projects •Use of schedule, risk, and related tools Delivery PMO •PM’s, BA’s, training staff •Portfolio ownership •Use of EPM and PPM tools Enterprise PMO 6©2013 Line of Sight
- 7. Why Traditional PMO Models Under-Deliver Not explicit enough-lacking critical details Internally focused Little emphasis on value to customers Lack a strategic focus, linkage to higher level goals Does not “tell the story” of how the PMO will evolve Focus on “maturity” leads to unnecessary investments 7©2013 Line of Sight
- 8. Key Design Decisions Accountability: How much authority will the PMO have? Customers: Who are the champions? Services: What will the PMO offer and how will they be delivered? Systems: What systems do we need to be successful? Value: What will generate near term value for the organization? 8 Begin with the end in mind! ©2013 Line of Sight
- 9. 5 Steps: Positioning for Success 1. Position the PMO for Strategic Success 2. Identify Functions of the PMO 3. Scope the Desired Level of Ownership 4. Map Functions Over Time 5. Follow A Formal PMO Development Methodology 9©2013 Line of Sight
- 10. Step 1: Position the PMO Align with organization’s strategic goals Make accountable for achieving specific outcomes Establish key executive champions and internal roles PMO leadership participates in setting strategic direction PMO facilitates investment in projects/programs across the organization Link at the right level of the organization 10©2013 Line of Sight
- 11. Step 2: Identify Foundation Functions 11 PMO Managed Services Automation Competency Development Project Management PMO Infrastructure ©2013 Line of Sight
- 12. Step 2: Identify Aggregate Functions 12 PMO Managed Services Automation Competency Development Project Management Resource Management Performance Management Program PMO Infrastructure ©2013 Line of Sight
- 13. Step 2: Identify Value Functions 13 PMO Managed Services Automation Competency Development Project Management Resource Management Performance Management Program Benefits Realization Portfolio PMO Infrastructure ©2013 Line of Sight
- 14. Step 2: Identify Decision Function 14 PMO Managed Services Automation Competency Development Project Management Resource Management Performance Management Program Benefits Realization Portfolio Governance PMO Infrastructure ©2013 Line of Sight
- 15. Assess Each Function 15 PMO Managed Services Automation Competency Development Project Management Resource Management Performance Management Program Benefits Realization Portfolio Governance PMO Infrastructure StrategicFunctions ©2013 Line of Sight
- 16. In Depth: The Project Management Function 16©2013 Line of Sight
- 17. Project Management Services Project Management Methodology On Site Project Management Project Fast Start Triage and Rescue Audit/Review Consultation 17©2013 Line of Sight
- 18. Step 3: Scope the Level of Ownership Determine level of ownership of individual functions 18 Managing • PM/PgM Role on Project/Program • Enforces Use of Methodologies and Tools • Owns Results Directing • Formal, Non-PM Role on Projects • Selective Mandatory Use of Methodologies and Tools • Contributes to Results Facilitating • Advisory Role on Projects • Encourages Use of Methodologies and Tools • Not Responsible for Project Results
- 19. Step 4: Map the Functions Over Time 19 PMO Managed Services Automation Competency Development Resource Mgmt. Perf. Mgmt Program Benefits Realization Portfolio Governance Project Initial Installation ManagingDirectingFacilitating
- 20. 20 Initial Installation Go-live + 180 ManagingDirectingFacilitating PMO Managed Services Automation Competency Development Resource Mgmt. Perf. Mgmt Program Benefits Realization Portfolio Governance Project PMO Managed Services Automation Competency Development Resource Mgmt. Perf. Mgmt Program Benefits Realization Portfolio Governance Project Step 4: Map the Functions Over Time
- 21. 21 PMO Managed Services Automation Competency Development Project Resource Mgmt. Perf. Mgmt Program Portfolio Governance ManagingDirectingFacilitating Benefits Realization Initial Installation Go-live + 180 Go-live + 360 PMO Managed Services Automation Competency Development Resource Mgmt. Perf. Mgmt Program Benefits Realization Portfolio Governance Project PMO Managed Services Automation Competency Development Resource Mgmt. Perf. Mgmt Program Benefits Realization Portfolio Governance Project Step 4: Map the Functions Over Time
- 22. Step 5: Follow A Formal PMO Development Methodology Define Design Develop Deploy Sustain Why What How When Evolve Establish Champion Form Initial Team Justify PMO Charter the PMO Anchor the PMO Identify Stakeholders Survey Customers Select Functions Create Service Delivery Model Define High-Level Requirements Build Coalition Identify Customer Segments Develop Detailed Offerings Develop Delivery Processes Define Detailed Requirements Engage Supporters Deploy CRM Roll Out Selected Offerings Engage PMO Staff Acquire Automated Tools Refine Delivery Methods Refine Automated Tools Verify Value Proposition Educate Customers Refine Offerings 22
- 23. The Path Forward ©2010 Line of Sight, LLC 23
- 24. When to Deploy This Approach Use this approach: When planning a new PMO When re-chartering a failing PMO When seeking to improve an existing PMO ©2010 Line of Sight, LLC 24
- 25. Benefits of the Strategic Approach ©2010 Line of Sight, LLC 25 This approach enables: The creation of immediate value for your customers The ability to focus on what is important NOW A way to justify the approach taken The development of a staffing profile A balance between project work and PMO process development
Editor's Notes
- #2: Welcome everyone. My name is_______. I am so thrilled to be working with you on your business strategy.
- #5: [4 minutes]Tim – For each of these obstacles there are actions to counter or mitigate the impact. These four obstacles are fairly common across most organizations, but have been highlighted by DOH project managers and project directors as particularly resident here.Have you experienced or witnessed other obstacles?Pain points:Poor project performanceDuplicative projectsResource managementOpportunities:Help customers achieve their goalsBring project discipline to the organizationReduce budget through better management
- #6: [2 minutes]Bob - > The purpose of the PMO is to:Promote project management practices and principles that are standard across the enterprise and applied according to individual organizational needs.Facilitate sharing of project management information across organizations.Champion continuous improvement of project performance.Create a view into the enterprise’s project portfolio supporting insight, openness, and coordination across the organizationServicesDevelop, maintain and promote PM standards Promote Department communication and processRespect the unique nature of different program areasSupport both technology and business centric projectsEnsure PM best practices to improve project performance through the methodology, mentoring, and trainingFacilitate a PM “Community of Practice”Future Increased resources to support PMs and the project management discipline Support executive decision-making through governance and project inventory management Establish standards for individuals to be “certified” as able to manage projects
- #23: The time phased lifecycle supports:Stakeholders can clearly understand the evolution of a PMOAllows staff to focus on what is important nowDerives value by engaging in the highest priority work early on
- #26: The PMO is a collection of products, services, functions, and people.
- #27: MA/TJ