leading successful pmos handout

Leading Successful PMOs

1 www.thelazyprojectmanager.com

Peter Taylor

The purpose of the PMO

The Project Management Office (PMO) in a business or professional enterprise is the

department or group that defines and maintains the standards of process, generally

related to project management, within the organization.

The PMO strives to introduce economies of repetition in the execution of projects.

The PMO aims to reduce project risk through common practice and quality

assurance.

The PMO links business strategy to project based execution of that strategy.

In a recent survey „The State of the PMO 20101‟ research showed that 84% of

companies now have a PMO (Project Management Office) in some form to support

their project based activity.

According to Gartner Industry Research, „building a Project Management Office (PMO)

is a timely competitive tactic‟ - Further, they believe that "organizations, who establish

standards for project management, including a PMO with suitable governance, will

experience half the major project cost overruns, delays, and cancellations of those that

fail to do so".

1 PM Solutions Research. (2010) The State of the PMO 2010. Research report. Glen Mills, PA: PM

Solutions www.pmsolutions.com

http://www.pmsolutions.com/



What is a PMO?

Project Management is all about doing something (a project) in the right way and the

„right way‟ is all about method and discipline and quality and control.

Program Management is all about doing those things (the projects) in the right

sequence or order.

Portfolio Management is about doing the right things.

Which leaves the PMO; and which you can think of as doing all the above but with the

right team (the right things, in the right way, in the right order).

Are all PMOs the same? A PMO can typically be one of six types from an organizational perspective:

A Departmental PMO

A special–purpose PMO

An Outreaching (Supplier) PMO

An External (Customer)PMO

And a model of an Enterprise PMO (internal or external)

There is one view that there are only three PMO types, enterprise, departmental and

special-purpose but I believe that what is often forgotten are the organisations that

reach outside with their PMOs to external customers to support project managers

working alongside and managing customer led projects. If you are a service based

company you will certainly recognise this flavour of the PMO. In addition there is the

work that such PMOs can get involved in through advising and supporting customer

centred PMOs – offering governance, guidance and resources.

So I believe that there are in fact six types that need to be understood or at least

appreciated.

A way of looking at this is to consider „Internal‟ PMOs – those PMOs that oversee

projects that are sanctioned within an organization for self-improvement or compliance

reasons - as one category.

Then „External‟ PMOs – those PMOs that exist to ensure that an organisations‟ customer

projects deliver the return on investment expected – as a second category.

A third category can be the „Special purpose‟ PMOs created for specific situations or

needs.



Against these there is the scale of the PMO coverage from departmental or business

unit level through to enterprise level.

Internal PMOs

Let‟s begin with perhaps the most common type of PMO; the internal to an

organization PMO that is focused on projects primarily within that organization, for self-

improvement or compliance purposes.

And the most common variety will be the departmental PMO.

Departmental PMOs: Department based PMOs might be just a small group that

manages very specific projects within their own landscape and with their own

resources. Any projects that require resources outside this department may have

difficulties securing and maintaining such resources. Moving up to the

organizational level the bandwidth of resources and scope of projects is greater

but the limitations may still be encountered.

External PMOs

Now let‟s consider those PMOs that are not internal to an organization as such but that

focus on the outside customers of many service companies for example.



Here we can describe the outreaching PMO.

Outreaching (Supplier) PMO: Here the PMO‟s role is to oversee project

methodology and practice and standards for a community of project managers

dealing with projects inside customer organizations – deploying solutions

developed by their own company as a supplier to these external customers.

External (Customer) PMO: As an extension of the service that outreaching PMOs

may offer then they may also offer guidance and governance to these external

customers on setting up and running their own PMOs.

Now it is quite possible that an external PMO can also undertake internal project

oversight and management, and equally that an internal PMO might undertake the

occasional external or customer focused project activity. The internal and external tags

indicate the primary focus of the project work.

Enterprise PMOs

For both the internal and the external PMOs there can be large benefits in scaling up to

an enterprise level.

Enterprise Internal PMO: The next step for a PMO is for it to move up to the

corporate level. This allows the PMO to gain a strategic position within the

organization and to ensure that projects proceed based on their strategic

alignment to the key business objectives of that organization. Such am

enterprise PMO based is far more likely to gain executive support.

Enterprise external PMO: The next step for an „Outreaching‟ PMO is for it to

move up to the corporate level. As in internal PMOs this allows the

„Outreaching‟ PMO to gain a strategic position within its own organization

and offers to external customers a consistent project delivery and service

model across the world.

Special Purpose PMOs

And there may be a need in some cases for special PMOs created for a specific and

discrete purpose.

Special- purpose PMO: What about the special–purpose PMO which may have

been created for a single major project or set of projects, something that was

critical to the business as it underwent a step change in its technology platform

as one example. Here the special-purpose PMO may be departmental or

enterprise focused and may be IT and/or business focused. It will, however, be



created only for a special purpose and will, most likely, cease to exist once that

purpose has been completed.

Operational Mode

So we have explored one dimension of the PMO; the internal or external focus of its

work. Now let‟s explore the second dimension if you will; that of operating method or

approach.

A PMO can operate in a number of ways:

Supportive

Controlling

Directive

Supportive

The Supportive PMO is all about helping out project managers by providing some level

of support in the form of project expertise, templates, guidelines, best practices (or at

least proven practices), knowledge and project expertise, typically based on personal

experience and/or a network of experienced people throughout the organisation.

It can be seen as a process of bringing together of a project community, where before

there has only been silos of project based activity and a lack of knowledge sharing.

Why use a supporting model?

The requirement is to merely aid the existing project activity to raise the levels

of project success

To share project management information across a wider group of project

managers

To empower the project managers and project teams to solve common

problems and be more successful

Controlling

The Controlling PMO is applicable where there is a desire to have a stronger discipline

on all project activities, methods, procedures, documentation etc.

Why use a controlling model?

To ensure that a standard and consistent methodology is used

To ensure that regulatory compliance is adhered to

Where there regular reviews that need to be passed

A project or projects are high or higher risk than normal



A project or projects are a high or higher profile than normal

A new business endeavour

Directive

This Directive PMO goes beyond control and actually takes over the project or projects

by providing the necessary project management experience and resources.

Project managers from the PMO itself are assigned to each new project and reporting

of project progress is direct to the PMO itself.

Why use a directive model?

To guarantee the highest level of consistency of project management

practice across all projects

To reduce costs by centralizing project services

To de-risk project delivery

Blended



There is in fact another way that PMOs can operate and that is a combination of the

three. A mixture of directive, supporting and controlling or perhaps better described as

a „blended‟ approach. And the blend can be of any two modes or a combination of

all three.

This is a quite common PMO mechanism – being flexible depending upon the actual

and individual need.

All PMOs are not equal

So we have had the dimension of „type of PMO‟ and the dimension of „operational

mode of PMO‟ now let‟s add the dimension of „maturity of PMO‟ in to the ever

complexing PMO model.

All PMO leaders should try and move their PMO up the Maturity Scale to a level that is

appropriate and relevant to the organization funding and sponsoring that PMO:

Level 1: Ad-hoc – Where the project discipline has few, if any, formal definitions and is

performed on an ad-hoc basis. The PMO will typically get involved as trouble shooters

and recovery agents.

Level 2: Defined – Where the project discipline is defined, executed and repeatable.

Here the PMO will have set in place standards and methods and will measure adoption

and compliance accordingly.

Level 3: Controlled – Where the project discipline targets are aligned with business goals

and defined with greater detail. Results are qualitatively predictable and the PMO will

operate a governance model against this through reporting and deviation correction.

Level 4: Measured - Quantitative goals are clearly set and measured. The PMO will lead

the measurement of project behaviour through KPIs and metrics dealing with

intervention by exception.

Level 5: Optimized - There is a focus on continually improving the discipline

performance. Here the PMO moves beyond the individual project focus and looks more

towards incremental and innovative changes/improvements. To this end the PMO may

well initiate projects for self-improvement.

At level one I would suggest that this is not really a PMO but rather some form of SWAT

team activity, a specialist group of senior, and therefore „seen it and done it and lived

to tell the tale‟ project managers who enter projects to solve issues.



The real PMO enters at maturity level 2 – Defined.

And is it real?

Just when you thought that it couldn‟t perhaps get any more complicated I am afraid

to say that „yes‟ it definitely can. For example you might wish to consider the concept

of the „virtual PMO‟.

It may be that an organization feels that it does not have the experience or resources

to run a successful PMO, or requires that its own dedicated staff have other priorities, or

it actually wants to benefit from the value of a PMO but in a very short time span that

doesn‟t fit in with developing and building one internally.

The virtual PMO could be the answer to this problem with a third party supplying the

necessary management and resources and skills and knowledge. The choice then a) is

this the ongoing model for the PMO or b) this is an initial model only for expediency and

as part of the PMOs remit there is an objective to manage the transition of all PMO

activity (and therefore skills and knowledge) inside the company at some point in the

future.

And what does a PMO do?

Finally, and just for completeness sake, let‟s take a very quick look at what a PMO does

(or could do).

The short answer is „anything that the business wants it to do‟ – especially if that PMO is

in the period of proving value and the business in question has just made a significant

investment in setting the PMO up.

The longer answer could include:

Project Management community or practice ownership or lead

Methodology

Training and Certification

Resource Management

Project (Program – Portfolio) Reporting

Coaching, mentoring, support

Business alignment

Quality Control

Financial follow up and support

Project selection and/or decision making

And many more besides these.



The point here is really that the PMO‟s range of responsibilities can be simple or

complex.

Add to that the many forms of PMOs that can exist then it could be said that there is no

one answer or solution to the project and business challenges that the PMO could be

the answer for.

The PMO Acid Test How successful is your own PMO?

Take the 5 question PMO „acid‟ test:

Who

„Call up your CEO and then count the number of seconds before he recognizes your

name...‟

If your PMO is really connected to the business, at the right level and with the right

profile, then your CEO will know you and your PMOs work.

You don‟t have to start with the CEO, you can try this out moving up the organisation

level by level – who at two levels above you knows you and the PMOs work? For those

that do say „thanks‟ and for those that don‟t; well tell them about it.

What

„What happens when you call up a project manager do you get straight through or do

they adopt an avoidance strategy...‟

A call from any member of the PMO should be a welcome event and not something to

hide from or fear.

Consider if there are certain individuals or teams or departments that are resistant to

what the PMO is trying to achieve. Ask yourself why this is and plan a charm offensive to

demonstrate that the PMO is their friend.

When

„When was the last time that a project manager contacted your PMO asking for some

form of help? ...‟

If this has not happened in some time then perhaps your PMO is not as accessible and

open as you may wish it to be?



Run a survey or open session to gain some insight in to the reasons for non-contact with

the PMO. It may link to the „what‟ question above i.e. fear of the PMO, or it may be just

a lack of awareness. Go out of your way to help key people, regardless of if it isn‟t really

in your PMO remit – by winning influential supporters the word will spread about the

PMO being a „go to‟ group.

Where

„Do people ask many times over where they should go for project information or project

help...‟

The PMO should be the automatic first call for anything project related when project

managers or others need some guidance, make sure yours is easy to access and quick

to respond.

Market what the PMO does, create a menu of service items that the PMO can deliver

„off the shelf‟ and advertise this tirelessly.

Why

„Do people ask why they should use the PMO and do they know what your PMO

does...‟

You should have marketed the value of your PMO throughout the organization and

people should easily access a „service menu‟ or what the PMO can do to help them.

Success stories really help here with proven benefits of PMO involvement, invest your

time in developing some and get people outside the PMO to write them or at least

validate them.

How

And finally question number six – the „how‟ – how can you improve the PMOs‟ work and

profile, its performance, its acceptance and its role in your company?

How can you do this?

You need to think and plan and act.



Peter Taylor or The Lazy Project Manager can be persuaded to get out of his

really comfortable chair if you feel the need to hear the benefit of his

wisdom at your business event.

Peter is a dynamic and commercially astute professional who has achieved notable

success in Project Management.

His background is in project management across three major business areas over the

last 26 years, MRP/ERP systems with various software houses and culminating in his

current role with Infor, Business Intelligence (BI) with Cognos, and product lifecycle

management (PLM) with Siemens. He has spent the last 7 years leading PMOs and

developing project managers.

He is also an accomplished communicator and leader and is a professional speaker as

well as the author of „The Lazy Project Manager’ Infinite Ideas) and ‘Leading Successful

PMOs’ (Gower).

More information can be found at www.thelazyprojectmanager.com – and through his

free podcasts in iTunes.

http://www.thelazyprojectmanager.com/



LINKS TO BUSINESS AUDIENCES

Sample presentation topics that Peter can deliver, or he can customize one for your

audience:

Abstract – The Art of Productive Laziness

'Progress isn't made by early risers. It's made by lazy men trying to find easier ways

to do something.' Robert Heinlein

Learn about the art of productive laziness with The Lazy Project Manager;

understanding what is meant by the „productive lazy‟ approach to Projects (and

life) and learn how to apply these lessons „to be twice as productive and still

leave the office early‟.

The session will cover the definition of productive laziness, the science behind the

theory (yes there really is some), and will share some personal learning

experiences that led to the creation of „The Lazy Project Manager‟. In addition

the audience will be led through the three key project stages, one of which the

„lazy‟ project manager works very hard in and the second they should be in the

comfortable position of enjoying the „comfy chair‟ safe in the knowledge that

the project is well under control. A specific focus will be made on the third area,

project closure, which can be done so much better with very little effort but with

a significant value add for all „would be‟ lazy project managers.

Abstract –Leading Successful PMOs

What makes a great PMO leader from the business point of view and also for the

project managers who work within the PMO.

Based on his new book and significant research find out how to how to build the

best PMO for your business and keep it relevant to your business.



Abstract –Getting Project Management ‘Out of the Box’

How many people know what you do? Beyond your fellow project managers

and outside of your close family, who really understands what “being a project

manager” is all about? Possibly even your close family wave you goodbye each

day without really understanding what you actually do.

Taking project management “out of the box” will spread the word outside our

community about what a great bunch of people we are and how project

management is a valuable to skill to pretty much everybody.

We should appreciate how we are seen from “outside” our project world and

understand which of our many skills others would value.

I want to shout to the world about project management and tell all the great

work that I and my fellow project managers do, but is the world listening?

Customised Presentation

Peter is happy to develop a presentation specifically for your event, just contact

him to discuss your requirements. Presentations can be anything from 20 minutes

through 2 hours or indeed full day training courses are also available.



SPEAKING REFERENCES

Peter Taylor Author and Public Speaker at „The Lazy Project Manager Ltd’

“Peter Taylor spoke at the NYC chapter of PMI Professional Development Day

September 24, 2010. His presentation was "The Lazy Project Manager". The meeting

room which held about 100 was "standing room only". His presentation was informative,

educational and entertaining. Peter is a self-effacing presenter poking fun at himself. All

of this is what makes his presentation so good. If you are looking for a terrific presenter

for your event, I highly recommend Peter.

Karen Fox, PMP President, PMI NYC” September 25, 2010

“Entertaining public speaker and world-famous author of The Lazy Project Manager

Peter has spoken at a number of PMI UK events and has always been very well

received. Highly recommend his book too! All this and a day job...read the book to find

out how!”

Chris Field, President, PMI UK Chapter November 12, 2009

“Mr. Taylor, an expert on his area of knowledge, kindly supported our IX PMI

International Seminar in Sao Paulo (2009) giving us the best of his experience as a

Project Manager. He wisely spoke for more than 300 people.” November 4, 2009

Tânia Belmiro PMI Sao Paulo October 2009

“I have had the pleasure to invite Peter as one of the keynote speaker to ProjectZone

2010, Budapest. He is a great motivational speaker with such an experience that many

of us strive to gain. I have rarely seen an audience of such kind so captivated by a

speaker before. Peter with his passionate speech was clearly one of the highlights of

the event and also met my personal objective reminding me what “productive

laziness” means.”

Andrea Major, Conference Producer, Stamford Global May 3, 2010

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CONTACT DETAILS

To find out more about Peter Taylor and The Lazy Project Manager or to discuss a

speaking opportunity then please:

Email to: [email protected]

Phone: +44 (0)2476 540324

And now eLearning is available at www.thelazyprojectmanager.net

mailto:[email protected]

http://www.thelazyprojectmanager.net/

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