EPMO Playbook-James Brown - Project Management Institute

Report
Intention of this Document
This document is intended:
 to describe at a high-level the effort required to implement
the Program Management Office (PMO).
 to cover the proposed lifecycle of the PMO from planning,
to startup, to stabilization and finally to world-class.
 to provide a view of the roadmap planned an PMO.
This document is not intended:
 to be detailed and complete in all areas.
 to be the playbook for program/project managers in
individual businesses.
 for implementation outside of the PMO.
PMO Purpose
 To provide the organizational focus on improving the
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management of projects and programs
To optimize the capability and use of scarce resources
To raise the strategic issues to the highest levels of the
organization to facilitate effective decision-making
Drive influence to extend from strategy formulation through
benefits realization
Integrate benefits realization into the entire life cycle starting
with planning and report on it regularly
Implement programmatic management tools that provide highlevel visibility and analysis that inform decision makers and
evoke action
Broaden competencies to include strategic planning and
investment analysis
PMO Critical Success Factors
 Executive support
 Appropriate Funding/Resources
 Acceptance of Program Managers
 Acceptance of Project Managers
 Acceptance by Business Managers
 Institutionalized Program/Project Management
Culture
Ultimate PMO
Elements required for the Ultimate PMO
 A flexible, end-to-end project management process that
balances rigor with overhead
 Easy to use tools to consistently plan, track, manage, and
report all projects
 Easy access to process tools (intranet) along with
supporting materials to increase adoption and compliance
 Formal training, coaching, and mentoring to develop
competent project managers
 Ability to provide PM assistance – consulting, problem
solving and audits
Ultimate PMO cont’d.
Elements required for the Ultimate PMO
 Institutionalized PM discipline
 Program-level visibility to identify and reduce resource
contention and improve resource utilization
 Education for business and external stakeholders about
shared responsibilities for ensuring program success
 Expanded PMO governance board to represent wider set
of stakeholders
 Communications programs to keep all stakeholders
informed and committed to program success
Levels of Project Management
Maturity
Level 1
Initial Process
 Ad-hoc processes
 Management awareness
Level 2
Structure Process and Standards
 Basic processes; not standard on all projects; used on large, high visible
projects
 Management supports and encourages use
 Mix of intermediate and summary-level information
 Estimates, schedules based on expert knowledge and generic tools
 Mostly a project centric focus
Levels of Project Management
Maturity
Level 3
Organizational Standards and Institutional Process
 All processes, standard for all projects, repeatable
 Management has institutionalized processes
 Summary and detailed information
 Baseline and information collection of actuals
 Estimates, schedules may be based on industry
standards and organizational specifics
 More of an organizational focus
 Informal analysis of project performance
Levels of Project Management
Maturity
Level 4
Managed Process
 Processes integrated with corporate processes
 Management mandates compliance
 Management takes an organizational entity view
 Solid analysis of project performance
 Estimates, schedules are normally based on
organization specifics
 Management uses data to make decisions
Levels of Project Management
Maturity
Level 5
Optimizing Process
 Processes to measure project effectiveness and
efficiency
 Processes in place to improve
 Management focuses on continuous improvement
PMO Implementation
Visioning & Concept
Definition
Vision and mission
Executive sponsor
Guidance (steering) team
Business case
Political management
strategy
Approval to staff
Readiness Assessments
Organizational readiness
assessment
Maturity assessment
Individual PM knowledge
and skill assessment
Implementation Planning
Strategic alignment
Scope
Authority
Services
Organization
Budget
PMO Launch
Standard Practices, Tools,
Metrics
Education & Training
Consulting Services
Visioning and Concept Definition
Visioning & Concept
Definition
Vision and mission
Executive sponsor
Guidance (steering) team
Business case
Political management
strategy
Approval to staff
Explore the business need
1. Determine current state of project
performance
2. Document business need
3. Identify PMO sponsor(s)
4. Secure approval
5. Build the case
1. Current State of Project
Performance
 Collect industry data on project performance
 Conduct a quick assessment of organizational
project performance
 Identify the business need for improvement
 Conduct a gap and cause analysis between current
and desired performance
 Identify the gaps in capabilities that are the causes
of poor project performance
2. Business Need
 Define the business problem or need the PMO
will satisfy
 Determine if the organization is ready for:
 Strategic level PMO or
 Tactical approach
 Prepare draft:
 Vision and mission
 Objectives and scope
 Measures of success in business terms
3. Sponsor(s)
 Identify one or more sponsors
 Interview the sponsors regarding the current state
of projects in your
 Industry
 Organization
 Discuss the role of PMO in closing the gaps
 Identify executive success criteria
4. Approval to Proceed
 Staff a small PMO planning team to finalize the
PMO detailing
 Vision and mission
 Objectives and scope
 Strategic alignment
 Establish measures to demonstrate PMO value
 Draft the business case
5. Build the Case
 Most likely PMO approach based on:
 Appropriate PMO model
 Scope considerations
 Organizational alignment, positioning and maturity
 Implementation approach
 Cost and benefit information
 Equate project performance data to a dollar figure
 Calculate ROI for expected change in performance
Readiness Assessments
Readiness Assessments
Organizational readiness
assessment
PM practices maturity
assessment
Individual PM knowledge
and skill assessment
1. Conduct organizational
readiness assessment
2. Conduct individual
competency assessment
3. Compile assessment
findings
1. Organizational Readiness
Assessment
 Purpose
 Determine organizational expectations
 Gauge the cultural readiness
 Gather information about best practices in the
organization to use as a springboard for replication
 Uncover challenges, gaps and issues
 Increase the organization’s readiness to improve
 Method
 Interviews
 Small focus group discussions
2. Individual Competency
Assessment
 To determine the skill level of existing project
managers
 Uses a survey to assess level of competencies
 Delivers results to help determine:
 Training requirements
 Professional development activities, and
 Specific mentoring and coaching needs
3. Assessment Findings Report
 Compile assessment results in a formal
document
 Use assessment findings to:
 Inform the business plan for the new PMO
 Assess risks and challenges
 Report
 Strengths
 Prioritized list of opportunities for
improvements
 Readiness to accept and support the PMO
 Challenges identified in implementing the PMO
Implementation Planning
Summarize decisions about the PMO in a
Charter to be used as a Business Plan:
Implementation Planning
Charter:
- Strategic alignment
- Scope
- Authority
- Services
- Organization
- Budget
- Measures of Success
1.
2.
3.
4.
5.
6.
7.
Select the appropriate PMO organization structure,
governance
Establish PMO guidelines
Manage cultural change
Prepare to demonstrate value
Manage the path to maturity
Develop a political management strategy and
communication plan
Present the Business Case and Charter to Guidance
Team for approval
1. PMO Organization and
Governance Structure
Governance
Team
Executive Sponsor
Director/Manager
Program Management
Office
Admin
Metrics/Reporting
Best Practices
Tools
Assessments
2. PMO Guidelines
20% improve
PM
practices
40% support
the
execution
framework
40% implement
common
reporting
1
2
3
3. Change Management
 Expect that only a limited
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amount of concurrent change
may be absorbed
Anticipate considerable amount
of resistance
Secure buy-in and support
Lead, communicate and manage
the change
Use PMO Governance Team to
communicate a compelling vision
4. Value
 Wrap mission around
impact on the business
 Establish business measures
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Gain efficiencies
Achieve cost savings
Increase customer satisfaction
Reduce time-to-market
Increase revenue and profit
Increase competitive advantage
 Value is not templates, tools, methodology,
processes and training
Source: http://www.chiefprojectofficer.com/article/146
5. Path to Maturity
 Stabilize performance by supporting basic project
management practices before taking on sophisticated
practices
 Transition to more sophisticated practices as momentum
builds
Limited Influence
Phase
1 1
Phase
Project
Project
Centric
Centric
Strategic Influence
Phase 2
Department
Focus
Phase
Phase
3 3
Strategic
Strategic
Asset
Asset
6. Communication and Political
Management
Communication Plan
Political Management Strategy
•
•
•
• Determine which stakeholders
•
Identify stakeholders
Conduct an audience analysis
Document information needs,
messages, media and frequency
Use guidance team to constantly
communicate
–
–
–
–
Vision and mission
Objectives
Business drivers
Value
– Can influence the PMO, and
– Feel positively or negatively about it
• Identify stakeholders’ goals
• Assess the political environment
• Define problems, solutions, and action
plans to
– Leverage positive influences
– Neutralize negative ones
7. Approval of Guidance Team
 Organize, structure and convene the PMO
Guidance Team
 Ensure that any issues, conflicts and
inconsistencies have been resolved before the
meeting
 Summarize the contents of the business case
and charter
 Seek approval to proceed with formal launch of
the PMO
Launch the PMO
PMO Launch
Standard Practices & Tools
Measurement & Accountability
Professional Development
Professional Services
Portfolio Management Support
1.
2.
3.
Conduct PMO Kickoff
Build a great team
Build a PMO to last
1. PMO Kickoff
 Capstone event officially launching the PMO
 All key stakeholders are in attendance
 Purpose
 Finalize the charter and gain consensus on an
implementation approach
 Prior to the kickoff
 Areas of resistance have been resolved
 Charter and business case approved
 Buy-in of influential stakeholders secured
2. The PMO Team
 Establish a small core dedicated leadership
team
 Augment with SMEs
and sub-teams
 Select team members
based on their passion
3. A EPMO to Last
Executives Love:
• Drive 50% more projects to
completion
– Without increasing resources
• Complete 25% more projects
– In drastically shorter times
• PMO impact is clearly felt
throughout organization
• Management sees benefits of
PMO
Teams Trust:
• Viewed as indispensable
• Gains credibility one project at a
time
• Provides valuable services
–
–
–
–
–
–
–
Project kick-off workshops
Coaching and mentoring
Methods scaled to meet project needs
Training and education
Communities of practice
Stage gate review preparation
Business case reviews
Source: Gerald I. Kendall and Steven C. Rollins, Advanced Project
Portfolio Management and the PMO, J. Ross Publishing, 2003
Expect Challenges
 Project managers applaud their
increased control
 But loathe the accountability
 Managers enjoy the visibility of
project progress
 But scoff at the added level of
communication needed to get
things done
 Executives like the deliberate
assignment of responsibilities
 But balk at the investment
necessary to support a central
resource
Source: Donn DiNunno CCP, CDP, Program Management Office
(PMO) Basics, Engineering, Management, and Integration, Inc. 20
Avoid Pitfalls
 Lack of focus and too many
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responsibilities
Placed too low in the
organization
Relegation to clerical role
Excessive time developing
process and tools
Perception of not adding
value
Viewed as:
 Worthless resource
 “Project police”

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