implementing a project management office - pmo_v1.2

8/8/2019 Implementing a Project Management Office - PMO_v1.2

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Implementing a value-driven

Project Management Office

a business value proposition for integrating

Project Management as a core capability acrossVIG Romania


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Topics

Project Management: existing situation

The missing link: PMO

Roadmap for a successful PMO

implementation


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Project Management:

existing situation without a

PMO


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Project Environment

Projects are executed in isolation, across various

business units

Different approaches in managing projects across the

enterprise

Lack of common understanding/ language:

Link between business strategy and projects

Project Management terminology

Project business value


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Expectations

Business Executives

Better connection between business goals and

projects results

More value with less resources

Project Managers

Common approach on managing projects

Enough resources

Functional/ Unit Managers

Better control of resources

Improved reporting capabilities


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Overall conclusion

Projects are not delivering maximum value to the

organization

Project Management is not yet a core business practice

across the enterprise

Executives dont perceive Project Management as a

business enabler

There is a missing link between project execution

environment and business strategy


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The missing link: PMO


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Solution: PMO is the VALUE LINK

Corporate/ DivisionStrategy

Project Portfolio BoardPMO

Project Execution

Environment

Governance and

PrioritizationProject Alignment

Consolidated Reporting


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What is a PMO?

Chartered organizational structure: Dept. of Project Mgmt.

Practice

Set of processes

Functional model of the PMO

Project and Portfolio Mgmt. methodologies

Process Assets Library

Pool of resources (project managers, tools and applications)

Competency Center (training, coaching. Technical support forProject Managers)

executive cockpit top management vehicle for decision

making


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Major components of a PMO

Processes, models,know-how

Tools, resources andinfrastructure

People, behavior andorganizational culture

Strategy, commitmentand support

PMO


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PMOs Mandate

Maximize project benefits

Connect strategy with tactics

Implement rigorous PM practice across the organization

Integrate:

Processes and practices

People

Departments/ organizational structures


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A Typical standard PMO Model


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Roadmap for a successful

PMO implementation


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PMO Conceptual Lifecycle

Analysis

Design and

Planning

Implementation

Evaluation

Most successful PMO implementations go through these four

main phasesand repeat as necessary


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Implementation phases (high level)

Gap Analysis Design and Build Operate

1. Understand current

status

2. Document

requirements and

expectations

3. Validate alignmentwith business

strategy

4. Document constraints

and assumptions

1. Select PMO model

2. Design functional

model

3. Issue PMO Charter

4. Assignresponsibilities and

authority

5. Develop processes

(PAL)

6. Select software tools

7. Develop capabilities

based on functional

model

8. Establish budget and

cost/revenue model

1. Perform assigned

functions:

A. Process

development

and deployment

B. Consolidatedperformance

reporting

C. Training center

D. Audit

2. Provide feedback for

Portfolio Management

3. Integrate businessprocesses

4. Organizational

integration

(vertical/horizontal,

internal/external)


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Typical timeline

Validate

analysis

report, PMO

Charter, High-

level Plan

Assessment

and validation

Approve

concept and

detailed plans

Project

kick-offDesign

6 months

Deployment

12 months 6 months

Continuous

Improvement

PMO up and

running

Duration may vary based on specific conditions

3 months

Gap

Analysis


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Critical success factors

Executives involvement and commitment: continuous

Right (balanced) positioning within the organizational

hierarchy sufficient authority

Choosing appropriate PMO type for the given businessmodel

Access to adequate competencies, skills and know-how

in building a PMO


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Questions?


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Two major types of PMO

Cost Control Model

Focused on reducing cost an delivering on-time

Limited or no impact on project alignment

Performs only on the project execution level

Limited or no visibility to executive management

Throughput Model The Return of Investment (ROI)

engine

Focus on business value maximization

Business integrator (horizontal/vertical, internal/

external)


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implementing a project management office - pmo_v1.2

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