most effective pmo models

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Most Effective PMO Models Presented by Optimum Consultancy Services PMI Houston Conference 2015 1

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Page 1: Most Effective PMO Models

Most Effective PMO ModelsPresented by Optimum Consultancy Services

PMI Houston Conference 2015

1

Page 2: Most Effective PMO Models

STRATEGIC PMOs POSITIONED TO SUPPORT ORGANIZATIONS’

STRATEGIC OBJECTIVES In today’s complex and rapidly changing business environment, successful PMOs must evolve from reporting and tactical project management entities into high-performing strategic partners in order to empower executives to make the right decisions and achieve better business outcomes. Many organizations still struggle to position their strategic PMOs to support their long-term strategic objectives.

Depending on the size and maturity of organizations and where the strategic planning really happens, strategic PMOs are positioned, named, and championed differently in different organizations and industries; some even placed on the IT side while expected to drive business strategies and objectives.

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

While no two PMOs are created equal, this report provides a summary of multiple surveys and researches performed by the Project Management Institute (PMI), Pulse, and other organizations to identify most common types of PMOs and highlight the value that each type delivers in an attempt to provide project leaders with benchmarks against measured market criteria and standards.

Nooshin YazhariNooshin Yazhari, PMPFounder and President Optimum Consultancy Services

Page 3: Most Effective PMO Models

PMO NAMES

Source: Pulse of the Profession™: Impact of PMO on Strategy Implementation

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 4: Most Effective PMO Models

KEY BENEFITS OF PMOS

Improved alignment of projects and programs with organizational strategies

Execution of repeatable, measurable, and consistent processes into projects

Improved communication and change management

Improved chance of project success and reduced operational costs

CIO Magazine reported organizations with PMOs complete twice as many projects as those without and communicated 65% increase in project success rate (PMOs operating for more than 4 years). Key benefits of PMOs:

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 5: Most Effective PMO Models

CURRENT STATE OF PMOS80% of firms have a PMO in place; PMO average age is 4; average number of projects the PMO works on is 60/year*. However there are:

No two PMOs that are alike!

No agreed on nomenclature that defines or separate different PMOs

No formalized model or consensus on the right form of a PMO

* PM Solutions - The State of The PMO 2014 Research Report

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 6: Most Effective PMO Models

CURRENT CHALLENGES OF PMOS

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Defining PMO’s role within organizations

Demonstrating & communicating added value

Lack of direction and support from executives

Not aligned with organization's strategy and objectives

Organizational change management challenges - resistance to change

Page 7: Most Effective PMO Models

MOST COMMON PMO MODELS IN PRACTICE TODAY

Business Unit/Departmental:

Provides project management support and services to support a department within the organization

Also provides appropriate information to other PMO entities as part of organizational governance

May be responsible for the consolidated reporting for the projects, programs, and portfolios within its domain

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 8: Most Effective PMO Models

MOST COMMON PMO MODELS IN PRACTICE TODAY

Project Support/Services:

Provides enabling processes to support management of projects, programs or portfolios by utilizing governance, processes, practices, and tools established by the organization

May also develop tools and practices to specifically support a particular project effort

May support mentoring, training, and certification activities for project managers within its area of responsibility

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 9: Most Effective PMO Models

MOST COMMON PMO MODELS IN PRACTICE TODAY

EPMO (Enterprise PMO):

Highest-level PMO often responsible for alignment of projects and programs to organizational strategies

Also responsible for establishing and ensuring enterprise project, program and portfolio management governance and methodology

Responsible for ensuring benefits realization, and organizational change management (education, communication) across the organization

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 10: Most Effective PMO Models

MOST COMMON PMO MODELS IN PRACTICE TODAY

Center of Excellence:

Provides processes, methodologies, governance standards and tools to support project, program, and portfolio management throughout the organization

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 11: Most Effective PMO Models

MOST COMMON PMO MODELS IN PRACTICE TODAY

Project Specific:

Provides project-related services as a temporary entity established to support a specific project or program

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 12: Most Effective PMO Models

Business Unit PMO

Project Support PMO

Enterprise/ Corporate PMO

Center of Excellence

Project-Specific PMO

Project/Program Delivery Management 46% 47% 30% 24% 46%

Standards/Methodology/Processes 15% 19% 20% 41% 16%

Portfolio Management Prioritization/ Strategic Planning/Governance 15% 12% 25% 14% 11%

% who have this PMO in their organization 54% 44% 39% 35% 31%

PMOs potential to contribute business value to the organization is fully realized 28% 32% 35% 32% 45%

PMO Reports to CEO 13% 22% 18% 16% 31%

Facts:• Business unit PMO is the most common type• Project-specific PMOs claim the highest level of business value realization among the PMO types• Project-specific PMOs are more likely to report to a CEO• Organizations that elevate the PMO to a strategic decision-making level are far more likely to be high performers

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Source: Pulse of the Profession™: Impact of PMO on Strategy Implementation

Page 13: Most Effective PMO Models

One size does not fit all!

WHICH PMO MODEL IS RIGHT FOR YOUR ORGANIZATION?

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 14: Most Effective PMO Models

DRIVING FACTORSWhat is the perceived role of the PMO within the

organization?

What is the Purpose: Decision-making or advisory? What portfolios will this PMO be responsible for?

• Expected scope of influence• Expected services• Expected value added

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 15: Most Effective PMO Models

ROADMAP TO SUCCESSFUL PMO MODEL IMPLEMENTATION

Current State Assessment Define PMO goals, scope, services Define PMO Maturity Roadmap PMO build-out planning Acquire/build PMO team Define methodology, processes, and templates Tools selection and standardization PMO implementation pilot Multi-site rollout Communication and Change Management Continuous Improvement

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 16: Most Effective PMO Models

SUCCESS FACTORSExecutive sponsorship and support

Communicate value

Proper PMO team structure with proper skill sets, defined roles and responsibilities

Organizational readiness

Communication and Change Management focus

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 17: Most Effective PMO Models

PMO OUTSIDE OF ITWHY SHOULD YOU CONSIDER?

Keeps the focus on business priorities and assets

More customer-oriented

Business driven technology solutions to fulfill business and organization's strategic

Business objectives – rather than technology- drives the solutions

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 18: Most Effective PMO Models

ABOUT OPTIMUMWe give our clients the competitive advantage through

innovation, competency, and expertise

Optimum Consultancy Services is a professional services (project management consulting) and technology firm providing strategic and technology services to a broad range of industries and organizations.

We help organizations fulfill their strategic and business needs, define and improve business processes, and leverage latest technologies, resulting in increased revenue and reduced cost..

COMPANY OVERVIEW

WHY OPTIMUM?INDUSTRY AND BUSINESS KNOWLEDGE AND EXPERTISE

SMALL FIRM’S DEDICATION AND ATTENTION

HIGHEST QUALITY WORK WITH COMPETITIVE PRICING

CUSTOMER-CENTRIC, RESULTS-ORIENTED, VALUE-DRIVEN

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300

Page 19: Most Effective PMO Models

CONTACT US

(713) 505-0300 [email protected]

www.optimumcs.com10497 Town and Country WaySuite 700Houston, TX 77042

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Need information about our services and offerings, want to chat with us about your projects, or need experienced consultants to help assess and fulfil your business needs?

Contact us to see how we can help!

Page 20: Most Effective PMO Models

REFERENCES

• Pulse of the Profession™: Impact of PMO on Strategy Implementation• Pulse of the Profession™: PMO Models• PM Solutions: The State of The PMO 2014 Research Report

10497 Town & Country Way Suite# 700 Houston, TX www.optimumcs.com l (713) 505.0300