Transcript Standing-Up the PMO

Newport
Consulting Group
PRELIMINARY
Standing-up a
Program Management Office (PMO)
A Discussion Document
Standing-up the Program Management Office
© 2008 Newport Consulting Group, LLC
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Implementing an integrated PMO enables organizations to obtain
many objectives across their organization
IT PMO Objectives
Strategic Objectives
Tactical Objectives
 Define long-range plans, roadmap
 Ensure effective executive cross-workstream and
cross-business unit communication
 Define the functional PMO structure(s)
 Provide the infrastructure to track, manage and report
progress of the effort against an integrated baseline /
workplan
 Facilitate issue identification and resolution (for issues
that cross workstreams or have project wide impact)
 Integrate the various process redesign workstreams
into a single, coordinated and well managed effort
 Develop a framework for program management that will
support a long-term client capability over the life of the
redesign project
Standing-up the Program Management Office
 Optimize the support structure for service delivery
 Enhance communications to the business stakeholders
regarding priorities
 Balance demand (projects) with supply (dedicated
resources)
 Prioritize projects to be implemented (implement a
rigorous demand management process)
© 2008 Newport Consulting Group, LLC
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A Program Management Office can have varying operating models,
organizations need to determine the desired level of control
Level 1 “Fully Decentralized”
Level 2 “Consolidated”
Business Stakeholders
Business Stakeholders
Business Stakeholders
Programmatic PMOs
Consolidated PMOs
Enterprise PMO
Partnership Technology
Business Infrastructure
& StrategicAdvancement
Systems & Support
Planning & IT PMO
PartnershipTechnology
Business Infrastructure
& StrategicAdvancement
Systems & Support
Planning & IT PMO
Partnership Technology
Business Infrastructure
& Strategic Advancement
Systems
& Support
Planning
& IT PMO
PMOs are programmatic, rolling into
logical functional domains.
PMOs are consolidated into logical
groupings based on functional domains.
PMOs are integrated into a centralized
organization, spanning functional domains.
Local decision rights at the project
level. Nimble and responsive.
Decision rights are held at the functional
level with chain of command to business.
Decision rights ultimately are channeled
through PMO for vetting by the business.
Governance held at the project level,
little regard for other business needs.
Governance spans functional domains
only, no enterprise view.
“Full horizon” enterprise view of all activities
and how they impact all facets of business.
Funding and Planning
Project level funding. Some ability to
move resources, needs inside domain.
Funding within functional domain.
Planning occurs in silos, no coordination.
Funding and planning, including business case
approval, occur through centralized body.
Communication
Each project inside a functional domain
communicates as needed.
Consistent messaging across domain,
may not be in concert across business.
Managed communication strategy and plan,
with integrated messaging across business.
Staffing
The needs of a project are determined
locally with planning support.
Projects are staffed with coordinators who
can see activities within a domain.
Methodology and process “coaches” enable all
program teams to a level of consistency.
Centralization
Decision Rights
Governance
Standing-up the Program Management Office
© 2008 Newport Consulting Group, LLC
Level 3 “Fully Centralized”
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World class PMO’s are defined by providing support and guidance to
an IT-based organization across nine areas
PMO Definitions
Secondary
Primary
PMO Area
Progress
Tracking and
Reporting
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Project deadlines / milestones are tracked and reported on
Standards and reporting frameworks are developed and implemented
Project plans are developed and managed centrally
Communication
Management
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Projects have a clear and consistent communications strategy
Communication strategy and its deliverables are targeted to decision makers
Communications are managed by a central source, ensuring that messaging is consistent and accurate
Issue
Management
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Projects have defined standards for issue categorization and resolution time according to issue severity
Processes for issues escalation and resolution is defined
Formal Issues Register exists (a means of logging and tracking issues)
Risk
Management
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Risk Register is developed and implemented (a means of logging and tracking risks)
Project risks reviewed and prioritized frequently
Projects that are missing a defined process for escalating risks to senior management defined and implemented
Demand
Management
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Projects have a standard process for requesting and approving changes in project scope and functionality
Costs and benefits associated with project scope changes assessed before approval is granted
Change management policies and procedures are developed and implemented
Resource/
Supplier
Management
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Projects resources are managed in s consistent manner
Projects are managed to reduce frequently working overtime and on weekends
IT subcontractors and subcontractor relationships will be managed by the PMO
Quality
Assurance
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Projects utilize their internal and external quality assurance standards and procedures
Project deliverables are finalized only after they are thoroughly reviewed by a quality management team
Project plans are reviewed as project teams prepare for critical project activities (i.e., Testing, Training)
Business
Alignment
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Business plans align with project implementation objectives
Potential process improvements are based on requests and are checked to ensure they align to application workflows
Conflicts between project objectives, business plans and I/T strategy documented and monitored
Technology
Alignment
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Project interdependencies with other planned implementations are clearly identified and documented
Future performance of new systems is easy to predict
I/T architecture of legacy systems is as simple as possible and well known within IT
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Credentials
William D. Newman
Principal
Executive summary
 Over 20 years of enterprise systems, change management, innovation management,
and product development experience. Former IT executive at Volkswagen.
 Over 10 years helping clients plan and manage complex, global enterprise programs
with management as a principal with tier-1 strategy, consulting and accounting firms.
 Develop recommended approaches for value realization, change management,
global program structures, innovation management and business transformation.
 Certified Management Consultant (CMC) since 1995.
Education
 MBA, Conrad L. Hilton School of Management, Loyola Marymount University
(Management with emphasis on International Business)
 BS in Aerospace Engineering with minor emphasis in Economics, Henry Samueli
School of Engineering and Applied Science, University of California at Los Angeles
(UCLA)
 Adjunct faculty member, University of Michigan – Dearborn, Graduate School of
Management, Department of Management Studies (Marketing Policy and Product
Development).
Standing-up the Program Management Office
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