group 1 setting up the pmo and the 5 w's of pmo

8/4/2019 Group 1 Setting Up the Pmo and the 5 w's of Pmo

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SO WHAT IS A PROJECT

MANAGEMENT OFFICE (PMO)

y Project management is a challenge in many organizations. More pressure than ever is being applied to deliver greaterreturns and or improved service levels through strategic projects. In todays fast paced business world we find that thestatistics continue to show that many projects are failing.

y The now famous Standish Group study concluded that 60% of IT projects experienced cost overruns in the range of 15-20%. This means that if your annual budget for IT projects is $10 million dollars, and you fit into the average your costoverruns on projects are $900K to $1.2 million per year.

y These are pretty significant numbers.

y

y So what is a project management office (PMO). A PMO is a function in the organization that facilitates the successfuland consistent use of project management practices on all projects. It is focused on delivering an environment whereprojects can f lourish not on actually managing projects. This is an important distinction that is often misunderstood.

y

In simple terms a project manager is responsible for the management and delivery of a project. The PMO is responsiblefor helping these project managers be successful. This difference is critical as some PMOs try to also be projectmanagers and when this happens their objectivity, ability to serve multiple projects and credibility is usuallydiminished.


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WHAT SHOULD MY PMO DO? 1. Drive down project cycle times 2. Choose the project portfolio mix 3. Provide executive portfolio cockpit 4. Track & report progress

5. Mentor Project Managers 6. Provide tools 7. Help Desk 8. Establish methodology 9. Focus corrective action 10. Facilitate project governance 11. Prioritize the portfolio 12. Assist troubled projects

13. Provide training 14. Market its services 15. Establish data archives

What Every PMO Should Do (Kendall / Collins p.45)


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THE PROJECTIZED PMO


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THE DIFFERENCE BETWEEN A PROJECT MANAGER AND PMO BASED ON THEIR HIGH LEVEL ROLES

PMO PROJECT MANAGERS

y Advising Defining

y Mentoring/ Coaching Controlling

y Facilitating Executing

y Planning (strategic/ tactical) Planning (projects)

y Managing project knowledge Estimating/ Tracking

y Reviewing Organizing

y Helping Communicating


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Setting Up a Project Management Office

y When developing a Project Management Office keep in mind the following items:

y PMO Need - Why are you setting up a PMO? What are the Pros and Cons?

y Cultural Change - What barriers will there be to setting up PMO? How will the PMO overcome these barriers?

y Organizational Assessment - What is the Project Management Maturity of your project managers and theorganization?

y Methodologies - What Methodologies will you use in the PMO? Templates? Business Processes?

y Resources - How many people will comprise the PMO staff and what are their roles and responsibilities?

y Training - What type of training does the staff require? What type of training does the organization require to supportthe PMO?

y Metrics - What type of metrics will the PMO be responsible for collecting?

y Lines of Authority - Who runs the PMO and why?

y PMO Type - What type of PMO are you going to setup? Strategic? Business Unit Focus? Project Control Office?

y Executive Buy-In - How are you going to get your company executives to buy-in to and then support the PMO?

y Setting up a PMO is a daunting challenge that all to often ends up in failure. If your organization is seriouslyconsidering starting up a PMO make sure they have done their homework.


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Approval and Support

Define the purpose and concept.

Find a sponsor or champion.

Obtain executive/upper management support and initial approval

Assessment Assess and document the organisation's project maturity level, application of projectmanagement practices. Conduct a needs analysis.

DesignDesign the PSO structure, project management systems andprocesses

Develop a roll-out plan.

Develop a communication plan. Formulate the PSO budgets.

Document the design and develop the business case. / Present business case toexecutive/upper management and obtain

support and approval to continue.

ImplementationImplement facilities (tools, staff, documentation, systems). Conduct awareness campaign.Roll out the project management systems and processes through

the organisation.

BRIEF LIST OF STEPS AND ACTIONS NORMALLY TAKEN TO

IMPLEMENT A PMO.Module 6 PLCM6 Page 52


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TOP 5 REASONS FOR IMPLEMENTING A PROJECT MANAGEMENT OFFICE (PMO)

THE (5) WHYs

y Prioritize projects on an organization-wide basis. Using established criteria, the PMO can assistto ensure the right projects are worked on, that the projects are aligned to organizational strategicgoals and that the projects drive real business values, e.g. increasing market share, profitability,reducing costs, gaining efficiencies. , etc. previously identified.

y Standardize the approach to projects.A PMO can assist in the development and skills uplift of anorganizations staff through training, education, establish the best practices and standards to use,within project management. Economies of repetition arise from consistent delivery, and stakeholderalignment of project expectations/outcomes which leads to higher quality and project success.

y Provide project visibility to the leadership team.A PMO serves in raising the visibility to seniormanagement and key stakeholders throughout the organization on the status of project efforts.Reports about project performance on plan enable senior management and key stakeholders tocompare their organizational portfolio against the business value these initiatives are delivering.

y Manage project staffing. The PMO can help optimise manpower resources based on theirutilization. Decisions and trade-offs can be made with executives and business stakeholders to reduceor remove labour bottlenecks.

y Track and report on task completion. The PMO will assist in tracking and reporting on taskcompletion to reveal performance, trends, and trouble spots. The PMO tends to track at the keymilestone level, but also track at task detail levels to ensure enable communication on keyinformation to stakeholders throughout the project life cycle.


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QUESTIONS &

ANSWERS

THANK YOU!

group 1 setting up the pmo and the 5 w's of pmo

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