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® Rad and Levin, 2004 1
Advanced Project Management Office:
A Necessity for Today’s Global, Complex Projects
Dr. Ginger Levin
Project Management ConsultantAdjunct Professor – University of Wisconsin-Platteville
Lighthouse Point, Florida, USA954-783-9819
954-783-9235 (fax)[email protected]
® Rad and Levin, 2004 2
Presentation Overview
Motivations to Establish a PMO
PMO Functions – Project and Enterprise
Determining Functions to Perform
PMO Implementation
® Rad and Levin, 2004 3
The Project Management Office is: The organizational entity with full-time
personnel to provide a focal point for the discipline of project management
It may be called a: Project Office Project Support Office Program Management Office Project Management Group Project Management Center of Excellence Directorate of Project Management
Definition of a PMO
® Rad and Levin, 2004 4
The Increased Importance of a PMO
The functions of the PMO have evolved: It is not just an organization to provide support for
scheduling and monitoring activities on a single project
It is becoming an essential component for the future success of the organization
It provides services and organizational focus in core and supporting areas of project management
® Rad and Levin, 2004 5
The PMO helps to manage the organization’s future through: An emphasis on ensuring consistency and uniformity
in projects An organizational desire to excel An enterprise focus on improvement in project
management competency A reduction in project overruns An increase in the delivery speed of projects An increase in customer satisfaction
Reasons to Establish a PMO
® Rad and Levin, 2004 6
PMO Goals
Set Industry Standards
Show Higher Corporate Profits
Integrate Project Management into the Organization
Improve Divisional Project Management Performance
Have Competent and Productive Project Teams
Implement Consistent, Formalized Project Management
Finish this Project on Time/Budget
Fun
ding
an
d C
omm
itmen
t
Org
aniz
atio
nal R
eco
gniti
on
® Rad and Levin, 2004 7
Presentation Overview
Motivations to Establish a PMO
PMO Functions – Project and Enterprise
Determining Functions to Perform
PMO Implementation
® Rad and Levin, 2004 8
PMO Functions
Project-Focused Consult Mentor Augment
Enterprise-Oriented Promote Archive Practice Train
® Rad and Levin, 2004 9
Project-Focused Functions
Augment Fill the gaps in team resources
Mentor Work side by side with novice team members
Consult Provide occasional validation and assistance
® Rad and Levin, 2004 10
Project Areas of Assistance
Standards for managing projects
Standardized report forms PM software Proposal development
methodology Project start-up
assistance Charters and scope
statements Kickoff meetings
Project risk assessment Project visibility room Project requirements
changes Project workbook or
library Timesheets Administrative assistance Project reviews Issue resolution Project closeout support
® Rad and Levin, 2004 11
Enterprise objectives have more long-term effects and include: Promoting consistency and uniformity in
project management Archiving project performance data Providing a centralized point of reference for
the project management practice Imparting specific skills and knowledge
through training to project professionals
Enterprise-Oriented Functions
® Rad and Levin, 2004 12
Enterprise-Oriented Functions
Promote PM culture advocate
Archive Clearinghouse for project performance information
Practice Best practices and state-of-the-art procedures and
guidelines Train
Ongoing training in PM
® Rad and Levin, 2004 13
Enterprise Areas of Performance
Estimating Project selection Data integration Reward and
recognition
Project audits Communication
facilitation Customer satisfaction
® Rad and Levin, 2004 14
Presentation Overview
Motivations to Establish a PMO
PMO Functions – Project and Enterprise
Determining Functions to Perform
PMO Implementation
® Rad and Levin, 2004 15
The organization’s goals affect the functions that the PMO will perform: The PMO can change the direction of the
organization to one of enterprise project management
It also can primarily assist individual projects It can serve as the interface between the
project managers and others in the organization
Organizational Goals and PMO Functions
® Rad and Levin, 2004 16
The PMO and Maturity Levels
Level 1 – Supports One Project
Level 2 – Supports Several Projects in a Program
Level 3 – Supports a Division/Department
Level 4 – Supports the Entire Organization
Level 5 – Supports Business Strategy and Enterprise Resource Allocations
® Rad and Levin, 2004 17
Functions of a PMO according to PMI’s PMO SIG: The organizational structure, methodologies,
processes, procedures, controls, tools, people, training, and other components serve to integrate existing projects, manage the portfolio, control functions, and successfully deliver the organization’s business objectives
The PMO at Level 5
® Rad and Levin, 2004 18
PMO Activities
Mature Organization
Crisis Management Mode
Enterprise Functions
® Rad and Levin, 2004 19
Presentation Overview
Motivations to Establish a PMO
PMO Functions – Project and Enterprise
Determining Functions to Perform
PMO Implementation
® Rad and Levin, 2004 20
Phase 1 - Define the Goals for the PMO
Assign a lead for the initiative This individual will require the skills and ability to
communicate and effectively negotiate with senior management
Identify organizational constraints and assumptions Definitions and terms to establish a common
language Business processes and procedures that all projects
must use Organizational and project metrics
® Rad and Levin, 2004 21
Phase 1 - Define the Goals of a PMOContinued
To define the goals: Gather problem analysis information with a
focus on business needs Determine the root causes of troubled
projects Assess results from maturity assessments Analyze the gaps
Then list the goals and the prioritized business needs
® Rad and Levin, 2004 22
Phase 2 – Obtain Organizational Support
Create a Communications Plan to determine: Is the PMO of sufficient importance that a formal
announcement by the sponsoring executive is needed? What type of communication media describing the PMO
should be used? Are there any organizational entities that will not be
receptive to having a PMO, the functions it provides or the authority it exercises? What special orientation is needed for them?
Should there be a meeting with all organizational entities? Individually or as a group?
® Rad and Levin, 2004 23
Phase 2 – Obtain Organizational Support Continued
Create a presentation for an orientation that addresses: Why is a PMO being created? What are the objectives of the PMO? What benefits will the PMO provide? How will the PMO and organizational entities interact? What is the frequency/schedule for the interactions? What will organizations need to provide to the PMO? What will the PMO provide to organizational units?
® Rad and Levin, 2004 24
Phase 2 – Obtain Organizational Support Continued
Prepare a PMO implementation plan and develop organization-specific PM procedures: In all areas of project management For all divisions
Use the plan as a basis for: Promoting Training Consulting Mentoring Augmenting Disseminating Archiving
® Rad and Levin, 2004 25
Phase 2 – Obtain Organizational Support
Present a realistic schedule for PMO results: Project-level PMO
Three Months – One Year
Division-level PMO One – Three Years
Enterprise-oriented PMO Three – Seven Years
® Rad and Levin, 2004 26
Phase 2 – Obtain Organizational Support Continued
Develop implementation milestones: Metrics for success evaluation Milestones and metrics
Short term, three months Mid term, three – six months Long term, beyond six months
® Rad and Levin, 2004 27
Phase 2 – Obtain Organizational Support
Write a Charter for the PMO including: Goals and objectives Responsibilities/authority Assumptions Constraints Major risks Major milestones Approvals
® Rad and Levin, 2004 28
PMO Charter
Director, PMO Phone Fax E-Mail
VP of Projects Phone Fax E-Mail
Objectives
Scope
Assumptions
Constraints
Major Risks
Major Milestones
Approvals:
® Rad and Levin, 2004 29
Phase 2 – Obtain Organizational Support Continued
Reach agreement and gain commitment: Provide an initial estimate of the PMO’s budget Estimate the number of beneficiaries and
organizational coverage Outline the schedule and tasks needed to set up the
PMO Recommend the actions the sponsoring executive
will need to take to support the effort See whether a formal presentation and a special
announcement are required
® Rad and Levin, 2004 30
Phase 3 – Define the Functions
Identify the basic functions of the Project Management Office: Project-focused functions Enterprise-oriented functions Functions may be phased in over time
® Rad and Levin, 2004 31
Phase 3 – Define the FunctionsContinued
Define the scope (limits) of the PMO with options such as: All organizational units or only certain units All programs and projects or just a subset of
certain projects, e.g. just high risk, high budget
The complete project life cycle or only support of concept phase and business case but not implementation
® Rad and Levin, 2004 32
Phase 3 - Define the Functions Continued
Decompose the items identified Begin with a set of initial functions that will
solve the highest priority problems and contribute most to the business improvements expected and that require the least investment
Set reasonable expectations After the PMO is operational and gains
support, then expand its scope
® Rad and Levin, 2004 33
Phase 4 – DefineRoles, Responsibilities and Interfaces
Define the roles and responsibilities of the PMO: Vice President of Projects PMO Director PMO Staff Members
Determine roles and responsibilities relative to: Project Managers Functional Managers
® Rad and Levin, 2004 34
Phase 4 – DefineRoles, Responsibilities and Interfaces
Continued
Define the interfaces with other organizational entities List those entities with which the PMO will interact:
Internal organizations External organizations
For each entity above identify: Direction that will be received from the entity Direction that will be given to the entity Information that will be provided to the entity Information that will be received from the entity
® Rad and Levin, 2004 35
Phase 4 – Define Roles, Responsibilities and Interfaces
Continued
Determine where in the organization the PMO should report: List advantages, disadvantages, challenges
and critical success factors associated with each option
Discuss and negotiate options with the sponsoring executive
® Rad and Levin, 2004 36
Phase 4 – Define Roles, Responsibilities, and Interfaces
Continued
U n it A 1
U n it A 2
U n it A 3
D ivis ion A D ivis ion B D ivis ion C
U n it D 1
S u b -U n it D 2 1
S u b -U N it D 2 2
S u b -U n it D 2 3
P ro jec t X
P M O ?
P ro jec t Y P ro jec t Z P M O ?
S u b -U n it D 2 4
U n it D 2 U n it D 3 U n it D 4 P M O ?
D ivis ion D P M O ?
Th e E n te rp rise
Determine the PMO placement
® Rad and Levin, 2004 37
Phase 5 - Identify the PM Processes and Tools
Describe internal and external project management processes and tools the PMO will use:
Internal PMO FunctionsFunction Processes Tools
Risk Management
Quality Assurance
Change Management
Schedule Management
Financial Management
Supplier Management
® Rad and Levin, 2004 38
Phase 6 – Estimate the Resources
Several techniques can be used: A top-down or analogous estimate —
appropriate when comparing to a PMO with another unit of similar scope and function
A bottom-up estimate based on the functions and interfaces to provide the most accurate estimate
An affordability estimate, based on the overall budget available, provides a limit as to what can be provided with a limited budget
® Rad and Levin, 2004 39
Phase 6 – Estimate the ResourcesContinued
Promote Archive Practice T rain T rain Consult Mentor Consult Mentor
Augment
Scope - - - - - - -
Cost - - - - - - -
Quality - - - - - - -
Schedule - - - - - - -
Risk - - - - - - -
Contract - - - - - - -
Integration - - - - - - -
Reporting - - - - - - -
Communications - - - - - - -
Team Relations - - - - - - -
Client Relations - - - - - - -
Vendor Relations - - - - - - -
Cost of the infrastructure for:
® Rad and Levin, 2004 40
Phase 6 – Estimate the ResourcesContinued
PM
O F
un
din
g
1 2 3 4 5
Maturity Rating
Consider the Organization’s Maturity Rating:
® Rad and Levin, 2004 41
Phase 6 – Estimate the ResourcesContinued
1 2 3 4 5
Maturity Rating
To
tal C
ost
Implicit
Explicit
Determine Project Performance Costs:
® Rad and Levin, 2004 42
Phase 6 – Estimate the ResourcesContinued
PMO Cost Estimates
Labor Estimated based upon functions to be performed, interfaces and processes and tools.
Labor costs by month
Travel Where there are geographically-dispersed projects, travel may be required. Identify all locations where travel is anticipated, the number of trips to make, length of trips and the number of individuals making the trips.
Travel costs by month
Facilities Facilities include costs for use of office resources or costs for set up of home offices. Furniture, telephone, and computer connections make up the majority of this budget item.
1. Startup facility costs
2. Recurring monthly costs
Tools/
Processes
This category includes hardware costs, software, site license fees, etc.
1. Startup facility costs
2. Recurring monthly costs
Suppliers For services of subcontractors or other outsourced entities.
1. Startup facility costs
2. Recurring monthly costs
® Rad and Levin, 2004 43
Phase 7 - Get Budget and Approval to Start
Obtain executive approval: Convince the decision-makers based on sound
research as outlined in the previous phases: Be thoroughly prepared with a complete knowledge
of your planning data Anticipate questions and be prepared to defend your
logic
Finalize operating procedures: Include documentation of the outputs from the
previous phases that is approved by the stakeholders
® Rad and Levin, 2004 44
Phase 8 – Staff the PMO
Acquire the individuals Start with a
understanding of the functions to be performed
Ensure staff have expertise to gain early confidence and acceptance
Orient and train the individuals to the: Organization Business processes PMO objectives, plans
and success factors Functions to perform
and tools to use
® Rad and Levin, 2004 45
Advanced Project Management Office:
A Necessity for Today’s Global, Complex Projects
® Rad and Levin, 2004 46
References
Advanced Project Management Office, by Parviz F. Rad & Ginger Levin, CRC Press, 2002
Achieving Project Management Success Through Virtual Teams, by Parviz F. Rad & Ginger Levin, J. Ross Publishing, 2003
Assuring Project Success With Metrics-Based Management, by Parviz F. Rad & Ginger Levin, In Preparation
People Skills for Project Managers, by Steven W. Flannes & Ginger Levin, Management Concepts Press, 2001
Project Estimating and Cost Management, by Parviz F. Rad, Management Concepts Press, 2002