PMO Point of View

PMO Point of View2010By Bill BoehnerDirector, PMO Practice

2Copyright © 2010 Newton Consulting, LLC.

Table of Contents

Today’s IT Challenges Challenges to IT

The Role of the PMO PMO as an Enabler

The PMO Framework A Holistic Approach

Newton Consulting Can Help PMO Vision Implementers

Newton Consulting Company Background Who We Are


Challenges to IT

Today’s Challenges


Today’s Challenges IT expected to deliver more with less IT expected to add value to the business while cutting costs IT perceived as a tactical cost-center – an “order-taker,” not as

a strategic partner to the Business IT and the Business pointing fingers and clashing over

priorities, projects, and IT investments A lack of transparency and trust between IT and the

Business

Project benefits not captured or tracked

No tracking or accountability for project success

Challenges to IT


Today’s Challenges (con’t)

Key resources are overworked and under appreciated Use of 3rd party contractors is increasing due to

commoditized services now available in the market No prioritization or process for business requests – “the

squeaky wheel gets the grease” Redundant solutions for similar problems No holistic (cross-organization) view of the Business’

investments into IT Outsiders’ question: “What does IT really do?” IT must respond to these challenges and plant the seed for

the future…

Challenges to IT


IT must position itself as a: Strategic partner to the Business that enables achievement

of key business objectives Driver of growth & innovation – “sits at the table” with

Business leadership Leader of IT Governance, establishing and maintaining an IT

investment portfolio that aligns to the Business strategy Reliable unit that can keep the critical system running High throughput machine that can produce more with less Flexible operation that can deliver at Business’ speed An attractive and exciting place to work, enabling retention

of high energy people

Challenges to IT


PMO as an EnablerThe Role of the PMO


The PMO is an Enabler A Project Management Office (PMO) is an organization

designed to:• Align IT initiatives with the Business strategy• Optimize IT investments and the project portfolio• Govern the flow of work through the IT delivery

machine• Establish project management best practices suitable

to the organization• Provide metrics and reporting to senior management

PMO as an Enabler


The PMO is an Enabler A PMO should represent for an organization what air

traffic controllers represent to pilots:• Should guide projects safely (minimizing risks)• Should guide projects as quickly as possible to their

destination• Should prevent midstream collisions between projects

and resources• Should be the Project Manager’s and Executive’s best

friend

PMO as an Enabler


Goal of a PMO The goal is simple:

Do the Right

Things

The Right Way

With the Right

Resources

To Drive Value to the

Business

Alignment Optimized Execution Measure

A holistic approach to managing IT investments

PMO as an Enabler


So Why Do PMOs Fail? The PMO…

• does not define its value proposition• does not have the buy-in from the senior management• is seen as a threat – most often too authoritative• is too low in the management reporting structure• does not fully understand the political environment, the

company culture, or the organization’s tolerance for change• does not have a mechanism to measure and report value• is expected to be one-size-fits-all by the organization• is not sustainable on its own (i.e., executive support leaves)

PMO as an Enabler


Avoid Failure – Think Holistically Analyze and Plan Before Acting

• Where are the current pain-points in the organization?• What is the Business Strategy? What is IT’s strategy? Are they aligned?• How are projects selected for funding? What criteria should be used to determine

pipeline project priorities?• Do any project management procedures, methods and/or systems exist? • What are the success criteria for your PMO and how will you measure them?• What services should the PMO provide (e.g. project mgt, project audits, training &

mentoring, project recovery, project startup, QA, business analysis, etc.)?• Where should the PMO report (e.g. Enterprise PMO, IT PMO, or Divisional PMO)?

Should the PMO house the PMs or should the PMs sit within IT or the Business?• What authority and accountability should the PMO have? • What is change management impact of adopting a PMO / disciplined project mgt? • Should the PMO manage vendor relations? • Should the PMO own process improvement (CMMI, PMP, ITIL, 6-Sigma, etc.)?• What type of tools will be required to operate your PMO (PPM tools, Balanced

Scorecard, Collaboration tools, etc.)?

PMO as an Enabler


A Holistic ApproachThe PMO Framework


The PMO Framework

PMOFrame Work

Portfolio Management

ProjectManagement

QualityManagement

ResourceManagement

A holistic approach to organizing and planning your PMO initiatives

Tailored to meet the specific needs of the Business

A Holistic Approach


So Now What? Expect a challenge

• Resistance to change, to transparency, and being tracked• Business’ reluctance to committing to ROI • Labeling structured documentation as “administration”• Lack of accountability and managers’ follow through• Isolated groups avoiding processes

Secure commitment across leadership ranks – Executive, Senior, Middle

Appoint an experienced leader who can prevent pitfalls Communicate at all levels with a consistent message Determine where you are on the PMO Adoption Cycle Newton Consulting can help

A Holistic Approach


Newton Consulting Can HelpPMO Vision Implementers


PMO strategy and roadmap development Current state / future state assessments PMO and project management maturity

analysis PMO organizational assessments PMO business case development “PMO in a box” Portfolio management and project

prioritization analysis PPM tool analysis and recommendation PM / PMO training and coaching Project / program audits Balanced scorecards and project

dashboards

PM on Demand: Flexible staffing and seasoned project managers with Tier 1 PM consulting experience

Manage 3rd party vendors or systems integrators

Drive cultural change around project management (demonstrating the value of good project management)

Project management best practices

PMO on Demand: Partial or full outsourcing of PMO

Build, operate, and transition a PMO

Provide temporary PMO leadership resources

Tailor and implement tools, templates, and techniques

Optimize IT spending & resource utilization

Recruit, develop, and place skilled PM/PMO resources

Strategic Consulting Services PMO ServicesPractical Project Management Services

VALUE

Newton’s three PMO offerings are designed to help you answer The PMO Challenge and drive value to your IT and Business operations

Our unique and flexible operating model allows us to provide Tier 1 experienced resources at rates 25-50% lower than Tier 1 firms.

Newton Consulting PMO ServicesPMO Vision Implementers


Stage 1Unaware or

Unconvinced

Stage 2Recognition

of Need

Stage 3Approval

to Proceed

Stage 4Early Stage

Implementation

Stage 5Sustain and

Expand

StageCharacteristics:

Typical Timeframe:

How Newton Can Help:

Minimal defined PM processes for the org

IT mgrs serving in PM capacity

Limited exposure to PM / PMO best practices

Not sure if a PMO will deliver value

Minimal defined PM processes for the org

Recognize the importance and value of Project Management

Need help with “selling” the concept internally to mgt

Have funding approval Have both IT and BU

sponsorship Recognize the tremendous

hurdle in front of you Uncertain how to proceed

Initial PM / PMO initiatives are rolled out

Preliminary feedback is trickling in

Some components going well, others are not

Some early adopters are supportive, others are not.

The first year’s push is complete.

The organization has generally accepted the PMO

Initial excitement has worn off Organization may become

complacent

6-18 months prior to beginning a PM / PMO improvement initiative



1-12 months afterbeginning a PM / PMO improvement initiative

13-36 months afterbeginning a PM / PMO improvement initiative

Newton can: Educate the organization

on PM/PMO best practices Conduct workshops with

key IT and BU resources Develop Business Case to

justify an investment Help organizations

recognize the value and need for PM / PMO best practices

Newton can: Provide a current state

assessment Develop Business Case to

socialize internally Provide case studies and

key success criteria Conduct workshops with

key IT and BU executives Help define the scope of

the PM / PMO initiative

Newton can: Help develop a PMO

strategy and phased roadmap

Assist with development of a communication plan

Provide tools, templates, and resources to help jump-start the process

Implement the PM / PMO initiative in partnership with you.

Newton can: Help course-correct where

appropriate Assist developing a

“Phase 2” push for the PM / PMO initiatives

Help reinforce the first year’s initiatives

Conduct audits & reviews Assist with metrics &

measurement Drive specific components

of the PMO initiative

Newton can: Assist with the execution of a

“Phase 2” for the PMO Help reinforce first yr’s initiatives Expand on the internal

marketing/communication plan Help establish PMO as an

incubator for future leaders Help realign the PMO’s long-term

strategy with IT & BU strategies

Where are you?Newton Consulting’s PMO Adoption Cycle

PMO Vision Implementers


Newton Consulting offers packaged workshops (2 days to 2 weeks) based on where you are in the PMO Adoption Cycle:• Stage 1: Unaware or Unconvinced

• An Introduction to the Power of a PMO (PMO Defined: Is it right for you? How can it help?)

• Stages 2 & 3: Recognize need and/or have funding but have not started

• The PMO Roadmap (How to define your PMO Vision: An approach to implementation)

• PMO in a Box (A way to jump-start your PMO initiative)

• Stages 4 & 5: PMO Initiatives already underway• PMO Current State of Assessment (Evaluation of an existing PMO and its

maturity)

Contact us to learn more or to discuss further how Newton Consulting can help you achieve your PMO vision…

PMO Vision Implementers

PMO Consulting Workshop Offerings


Who We AreCompany Background


Newton Consulting is a unique and leading provider of IT and HR consulting services, providing an outstanding proposition to our clients at they move from vision to reality.

With a superior team of experienced leaders and accomplished professionals, Newton Consulting specializes in providing these services to growing companies based in North America and Europe:

IT Strategy Project Management Systems Integration Legacy Application Support Health and Welfare Benefits Consulting Recruitment Placement Outsourcing

Newton Consulting is able to serve an expanding customer base by attracting and retaining the best and brightest in the consulting field with its industry changing business model.

Whatever your IT or HR vision, Newton Consulting can implement it.


About Us


We are Vision Implementers We believe that all companies have vision, but most need help in shaping and

effectively pursuing it.

Almost always, they know what they need to do. Often, they know where they want to go. Sometimes, they know how they are going to get there.

Newton Consulting helps fill in their vision implementation gaps. Our goal is to provide our clients the best that consultants have to offer…

Partnership Leadership Experience ExpertiseFocus Catalytic Energy Commitment to the Mission’s Success…

…without the conflicting “profit first” and “high-growth-based” business agendas of large consulting organizations.

Company BackgroundWho We Are


Our Mission

To

Our Vision To be the global standard of a customer-focused, values-driven

consulting company.We will accomplish this by: being true to our core values developing and establishing long-term, partnering relationships with businesses that

are (or aspire to be) leaders in their marketplace and community attracting and retaining the best talent in the consulting industry maintaining an employee-friendly, shared ownership operating model

Company Background Who We Are

To implement the business and technology vision of our clients through premier, values-driven consulting solutions.


Company Background Who We Are

We are Growing

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,0008,000,0009,000,000

2003 2005 2006 2009

Revenue

2.5M

65 Total

28

7

10

700K

8.5M

We believe this growth is a result of our customer-centric business approach and validates our unique operating model.

0

5

10

15

20

25

30

35

2003 2005 2006 2009

EmployeesSubcontractors


• Customer Focused

• Values Driven

• Unique Operating Model

Company BackgroundThe Newton Difference: Not Your Typical Consulting Company

• We implement your vision, not our own.

• Our core values drive everything we do.

ClientRESULT: Our clients receive Tier 1 quality at value cost – the right solution to your mid-sized company’s dilemma.

• Our model attracts and retains the top talent in the consulting industry.

Who We Are


Best Service Provider


Proud to serve our region, the nation, and a growing international client base!

Pittsburgh Technology Council’s Tech 50 Finalist 2009 and Category Winner 2008.

Recognized as one of the leading and highest achieving companies in southwestern Pennsylvania.

Recognized in Our Industry


ITInformation Technology

HRHuman Resources

DIVISION CLIENTSERVICE LINE

PRACTICE AREA

Our Services

Customer-focused services revolve around our client

Whatever your IT or HR vision, Newton Consulting can implement it.

Bringing Together People, Process and Technology

Who We Are


Our “Ex” Factor

Experience 600+ years of combined experience integrating and managing

information technology

Expertise Project Leadership Implementation Support

Excellence 100% client referrals

Who We Are


Quality

Cost

Newton Consulting

“Big 5” Firms

Staff Augmentation

Our Value Proposition

We offer Tier 1 quality consulting services at rates that are consistently 25-50% lower than Tier 1 firms – with no loss in quality

This value proposition is tailored for, and craved by, mid-market companies.

Who We Are

We Solve Your Mid-Sized Company’s Dilemma

Offshore


Our DifferenceWe are Business Experts Who Know Technology We staff Tier 1 experienced consultants who choose to work for Newton Consulting

because of our unique shared ownership model, mission, and values.

Our Right Resourcing model gives you the right staff at the right time.

Savings are often measured in hundreds of thousands of dollars, a result of:

Lower RatesShorter TimelinesHigher ProductivityOn-Time Delivery

Who We Are


We want to understand your vision, adopt it as our own, and make it a reality.

– Rick Newton, President & Founder, Newton Consulting

Our Commitment

Our Commitment Our Values Satisfaction Guaranteed If you are not 100% satisfied with the work performed by Newton Consulting, we will do

everything in our power to remedy the situation.

Newton is the most customer-focused vendor I’ve ever worked with.– GlaxoSmithKline Consumer Healthcare IT Management Team

Who We Are


Our Service to YouWho We Are

We are… Difference Makers Problem Solvers Team Players Servant Leaders

Vision Implementers

Newton Consulting, LLC 2068 East Finley DriveClaysville, PA 15323

p: 800.883.1198 p: 724.663.5827 f: 724.663.4209

[email protected]

Bill BoehnerDirector, PMO Practicep: 412-334-0196f: [email protected]

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PMO Point of View