Transcript Selling PMO to Your Organization

Organization / Implementation of a PMO
PMI-MN Breakfast Series
October 12, 2004
Agenda
Abstract & Overview
PMO Tactics
Sponsorship
 Organization
 Marketing
 Implementation

Protocol and Governance
Q&A
Organization and Implementation of a PMO
October 12, 2004
2
Abstract
Profitability, cost reduction or similar measures are often
used to gauge the value of operations directly contributing
to the production of a company’s goods or services
Process functions like the PMO are not perceived as direct
contributors to production
Process areas demonstrate value through performance
improvements, reduction of issues/obstacles, or exceeding
planned expectations (real or perceived)
Successful organization and implementation is vital to
establishing a vibrant PMO and keep it performing and
exceeding expectations
Organization and Implementation of a PMO
October 12, 2004
3
PMO Tactics
Take advantage of initial interest and attention
Establish tactics before the PMO is launched




Sponsorship (fertile environment for initial survival)
Organization (sturdy foundation devoted to core needs
and successful growth)
Marketing (weaning PMO from dependency of the
sponsor to a self-supporting entity)
Implementation (plans for continued growth)
Organization and Implementation of a PMO
October 12, 2004
4
Value Category -->
To Whom
Executives
Sponsors
Owners
Users/Consumers
Project Team
PMO
PSOs
Support &
Maintenance
Pla
nn
ing
Pr
ior
itiz
ati
De
on
liv
ery
an
To
de
ols
xe
,b
cu
e
st
tio
Me
pr
n
nt o
a
c
rin
t ic
g
es
Mo
nit
ori
ng
Re
an
po
d/o
rti
ng
rt
rac
Qu
a
nd
ali
kin
vis
ty
g
as
i
b
Ri
ilit
su
sk
y
ran
ma
c
e
na
Iss
g
e
ue
me
r es
nt
olu
t io
n
Customer/Function Alignment
X
X
X
X
X
X
X
X
X
X
X
X
Organization and Implementation of a PMO
X
X
X
X
X
X
X
X
X
X
X
X
October 12, 2004
5
Sponsorship Tactics
Establish clear relationship with sponsor




Regular strategy and planning meetings
Understand the depth and reach of sponsor’s backing
Understand degree of independence and latitude
How will you know if the sponsor got a proper return
on investment
Agreement and results must be tangible

Even if the sponsor “gets it”, she/he will need evidence
for others who may not
Organization and Implementation of a PMO
October 12, 2004
6
Sponsorship Tactics
Anticipate challenges – plan to preempt

Implied authority – does the PMO have control over…






PM quality to competently deliver projects
Taking on too many projects
Prioritizing project and resources
Reporting metrics v. corrective actions
Project rescues
The common message

Prepare messages for




Executives
Line leaders
Team members
Risk of over/under communication
Organization and Implementation of a PMO
October 12, 2004
7
Organization Tactics
Organizational Charter

1



Mission
Scope of authority
Functions
‘Roles and Responsibilities’
Business Case

2


Business objectives
Expected benefits
Deliverables and metrics for success
Executive Summary

Simplified combination of the charter and business case
Organization and Implementation of a PMO
October 12, 2004
8
Organization Tactics
Descriptive brief of benefits, deliverables,
expected results
PMO extends across silos and hierarchies to provide

Easier movement through the organization

Broader perspective to local and enterprise activities

Politically independent
PMO Deliverables

Help PM Practitioners do their jobs

Help management understand project status impact on the organization

Build consistency, quality, efficiency

Control over the management of resources
Organization and Implementation of a PMO
October 12, 2004
9
Organization Tactics
Example Summary:
The Project Office will develop, train, and implement a common
project and work management model to help achieve the
following objectives:

Improve predictability of results

Provide visibility into project priorities and progress

Clarify resource roles and responsibilities on projects

Capture metrics for continuous improvement of work management
processes

Improve control and direction of projects by senior management

Improve outcomes / customer satisfaction

Reduce time and cost to deliver services

Create an operational model to support IT investment analysis
Organization and Implementation of a PMO
October 12, 2004
10
Organization Tactics
3
Charter – what will happen
Roadmap – when it will happen and what
does it look like
It’s a high level project plan
 It identifies the milestones/deliverables

Keep roadmap measures high level and
flexible
Organization and Implementation of a PMO
October 12, 2004
11
Organization Tactics
Sample Roadmap
2004
2005
Benefits
Capabilities
Features
• Develop project portfolio (Visibility)
• Capture project work plans and time
2006
• Integrate portfolio with annual
planning (planning)
Repository of project artifacts
(Mentoring, Execution)
Triage and Demand Management
(planning)
Scorecards (Reporting, visibility)
PM Competency Model & Training
(mentoring, quality)
tracking (Resource Management)
• Basic project health summary
(Reporting)
• Project / Methodology (Quality,
Mentoring)
• Estimating Tools & Templates
(execution)
•
• Ability to demonstrate improved Project
• PM Metrics
• Forecasting - Capacity Analysis
• Proactive management of resource
Management competency
• Consistency of process and language
• Comparison of key projects using
consistent and impartial measures
• Reduce confusion of how project shown
be run
• Single point of
Reporting/Communication
• Enabled fact-based discussions with
CIO’s
• Single point for reporting
• Clarification of Roles & Responsibilities
•
•
•
conflicts
• Measurable & repeatable use of
methodology, tools & artifacts
• Prediction of project health
• Compressed time to “Ramp up” new
employees
• Fact-based Customer Interaction
• Improved cycle times for estimates
• Trained, competent PMs and
Functional Managers
Organization and Implementation of a PMO
• Financial/PM Integration
• Self-service reporting (Visibility)
• Single point intake of projects and
service requests (planning,
prioritization)
• Earned Value Management (quality)
• Repository of best practices (tools)
• Robust IT planning & integration
• Predictable, manageable & repeatable
estimation
• Transparency of Status Reporting
• Understanding of TCO
• Financial Chargeback
• Clearly defined, easier-to-use
processes for all stakeholders
• Immediate responses to inquiries on
project status, health and issues
• Defensible alignment of projects to
strategic goals
October 12, 2004
12
Organization Tactics
4
Regular communications to market and
reinforce success and slow the decay of
“sponsorship half-life”
Use of scorecards for easy to digest facts,
supplemented by more detailed “in-depth but
crucial” information
 Emphasize accomplishments
 Use to supplement but not replace PMO
marketing

Organization and Implementation of a PMO
October 12, 2004
13
Organization Tactics
Sample Planning “Scorecard”



2004 YTD Successes



Delivered Standardized Planning Schedule with current resource pool
Program Managers have common collection of planning templates to reflect common
services
Triage team established and process documented to handle project estimation
What we still need to accomplish



Finalize functional planning templates and roll up into a functional Master WBS
Expand usage of planning templates across portfolio
Reinforce common vocabulary used in planning
Organization and Implementation of a PMO
October 12, 2004
14
Organization Tactics
Other considerations
PMO position in the organization hierarchy
 PMs’ staffed within or outside of the PMO
 Obtain proper time/resources for tools

Estimation
 Project planning
 Time Tracking
 Reporting


Handling special requests
Organization and Implementation of a PMO
Selection
Deployment
Training
Operation
October 12, 2004
15
Marketing Tactics
What’s the Message?



Increased throughput (more projects completed
successfully with same resources)
Project crises averted or mitigated w/o impact on other
projects
Higher customer satisfaction via improved




Success
Clear communications
Problem solving abilities
Increased participation of key project participants
Ability of lower skilled resources to perform function
previously requiring higher skilled resources
Organization and Implementation of a PMO
October 12, 2004
16
Marketing Tactics
Focus on why the PMO was created – Examples




Help PM Practitioners do their job
Help organization better understand and direct their
resources
Build improved consistency and quality into project
work
Put vital project information into hand of management
sooner and more clearly
Now use communications to show what has been
accomplished and how
Organization and Implementation of a PMO
October 12, 2004
17
Marketing Tactics
The PMO leader as a cheerleader


Evangelical dedication
Focus on the progress



Don't assume that because its going according to (or better
than) plan, that people are aware of it.
Speak the language of the customer
Connect their passion to PMO direction



Their pain
Their motivations
Don’t assume if a person is aware of problems, they know how
or have courage to fix it.
Key: The emotional/logic mix (EQ/IQ)
Organization and Implementation of a PMO
October 12, 2004
18
Implementation Tactics
The need for a good first impression

A poorly implemented first attempt can tarnish a PMO’s
reputation and fuel obstacles for future attempts.
Remaining true to why the PMO was created*


*
As business demands change, it is incredibly tempting
to shift the expectations of the PMO without planning or
review with sponsors.
Staying credible by limiting and fulfilling promises
Avoid the appearance of not being responsive. Changes often come as additional duties
rather then a change in accountability. If the PMO is taking on new challenges, it
requires a conscious recognition to the PMO mandate which will require additional
effort, and more importantly require a shift in perspective and expectations.
Organization and Implementation of a PMO
October 12, 2004
19
Implementation Tactics
Provide sufficient but simple references





Announcements / communiqués
Training materials
Web sites / Repositories / email boxes
Staff – PMO, local mentors, other
External resources
Stick to roadmap
Roll out new features / service individually

Beware of process overload
Organization and Implementation of a PMO
October 12, 2004
20
Implementation Tactics
Provide feedback loop
Surveys
 Suggestion boxes
 Measure and report which service used most
often

How to be visible but not intrusive
Organization and Implementation of a PMO
October 12, 2004
21
Implementation Tactics
Success Measures



Increased throughput (more projects completed
successfully with same resources)
Project crises averted or mitigated w/o impact on other
projects
Higher customer satisfaction via improved





Communication
Problem solving abilities
Increased participation of key project participants
Ability of lower skilled resources to perform function
previously requiring higher skilled resources
Relate progress to accepted Maturity Models
Organization and Implementation of a PMO
October 12, 2004
22
Protocol and Governance
Process Models abound to help specialists define
understand and control their environments

PMBOK, OPM3, CMM, 6s, TQM, etc.
Detail and intricacy overwhelms those who do not
embrace these disciplines or not ready for this
mature, robust approach
Provide a streamlined approach for those wanting
or needing less
A possible alternative is Protocol and Governance
Organization and Implementation of a PMO
October 12, 2004
23
Protocol and Governance
Protocol: The means in which we communicate with each
other, and our behavior surrounding this communication
Governance: The
Protocols
Governance
means in which issues, • Communication
• Controls
• Documentation
• Steering Committees
differences, conflicts,
• Tracking
/Review Boards
or obstructions to
• Reports
• Risk mitigation
• Rules of Engagement • Issue escalation
goals are resolved,
• 1st contact
• Corrective actions
• Change Mgmt
escalated or otherwise • Dashboards
• Roles and
• QA/QC
dispatched
Responsibilities
• Lessons learned
Organization and Implementation of a PMO
October 12, 2004
24
Protocol and Governance
Protocols can be used to:

Train roles and responsibilities

Identify project artifacts, their use and content

Set expectations for communication

Example: Rules of Engagement
Governance can be used to:

Set timeframes for escalation

Confirm ownership and accountability

Streamline decisions

Example: Technology Compliance Review Council
Organization and Implementation of a PMO
October 12, 2004
25
Protocol Example
Project Initiation – Protocols should be in place to
address how people behave, which artifacts
convey information, formality of communication





Do stakeholders know what to do?
Do they care to learn or remember their roles?1st
encounter
Who controls the process?
Who has overrides (GOOPF)?
How to corral escapes
Who determines if protocols are working?
Organization and Implementation of a PMO
October 12, 2004
26
Governance Example
Risk Management – Persistent review of risks
uncovers potential obstacles to project success.
How will the organization react to avoid the risk,
and/or minimize its impact if realized?




Who may identify risks? Who must look for them?
How are risks reported, what actions are put into
motion?
What is the predefined escalation if no action taken?
Are risks and their solutions centrally collected to help
future situations or projects?
Who determines if governance is working?
Organization and Implementation of a PMO
October 12, 2004
27
Implementation Risks
WARNING!! Be realistic
(Organizations resist change naturally)
Don’t promise it if
Scope
Cost
Time
If you can’t measure it
It requires training or tools which are not budgeted
It requires time commitments not agreed to by line
managers
It hasn’t been accepted by those in control of the
resource
Organization and Implementation of a PMO
October 12, 2004
28
Implementation Risks
The daily, continual pressure of
Got to get it done!!
vs.





Approving projects once proven alignment to organization
Projects begin only with adequate plans or risk assessments
Assigning work when resource commitments secured
Building after adequate requirements defined
Regular and dispassionate review of status
Transition: Sponsors move on. How does the
PMO survive a direct hit to sponsorship?
Organization and Implementation of a PMO
October 12, 2004
29
Questions
Organization and Implementation of a PMO
October 12, 2004
30
References
General















PMFORUM www.pmforum.org
Project Management Institute www.pmi.org
PMI’s Knowledge & Wisdom Center - Pros and Cons of Project Offices
https://secure.pmi.org/memberapp/code/premium_content/kwc/KWCtopic_pmo.asp
Center for Business Practices Project Management Resources http://www.cbponline.com/
gantthead.com http://www.gantthead.com
Max’s http://www.maxwideman.com
PMO USA http://www.pmousa.com
PM Solutions http://www.pmsolutions.com
ProjectConnections.com www.ProjectConnections.com
Projects @ Work http://www.projectsatwork.com
International Institute for learning, http://www.iil.com/free_resources/articles.asp
Optimizec(IW) www.optimizemag.com
CIO www.cio.com
Computerworld (IDG) www.computerworld.com
Project Magazine http://www.projectmagazine.com
Organization and Implementation of a PMO
October 12, 2004
31
References
PMO Organizational Tactics










Dinsmore, Paul C. Sixteen reasons not to implement a project office, PM Network 2002.
February
Kerzner, Harold, Strategic planning for a project office, 2003 Project Management Journal
2003. June;
Kerzner, Harold, Best Practices in Project Management – The Project Management Office
Presentation to PMI-MN October 1, 2004;
Lipper, Stan, An effective approach to establish a Program Management Office, 2003
Proceedings of the PMI Global Congress 2003 - N American
Kendall, Gerald I. And Rollins, Steve, How to Get Value Out of a Project Management Office
(PMO), IIL, November 2002
Mullaly, Mark E., PMP, Project Management: A New Definition, gantthead.com July 23, 2003
Mullaly, Mark E., PMP, Baby PMO Blues, gantthead.com July 28, 2004
Rahiya, John C., Implementing the Project Management Office, Presentation to PMI-NYC,
May 26, 2004
Passori, Al, Project Management Essentials: IT's About Governance, META Group
Consulting, Delta 2935, 2 June 2004
Santosus, Megan, Project Management Office Discipline: Why You Need a Project
Management Office, CIO Magazine July 1, 2003
Organization and Implementation of a PMO
October 12, 2004
32