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The Program Management Office Overview for Piedmont Triad PMI Chapter 8 September 2003

Agenda Why a Program/Project Management Office (PMO)? What Is a PMO? Implementing a PMO Suggestions to Jump Start PMO implementation Questions & Answers

Rank and select important tactical improvement projects through Project Portfolio Management , to ensure your company doesn’t over-commit resources, and instead focuses efforts for the most impact. Manage all projects consistently utilizing Best Practices , a critical factor in achieving higher project completion rates. Why a PMO - The Goals of a PMO Manage Strategic Change with programs -- coherent groups of projects, each small enough to reliably succeed, but coordinated to achieve well-defined strategic goals. Strategic Change Best Practices Project Portfolio Management

What is a PMO: Essential Culture Components Individual Projects Enterprise Portfolio Organization Environment

What is a PMO: Key Processes Change Management Identification and elimination of organizational barriers to change Management of employee resistance to change Assurance of effective involvement of, and communication with, all project and program constituencies Cost Management Preliminary cost/benefit analysis Project budgeting Expenditure tracking and budget variance review Communications Management Centralized program and project reporting mechanisms Inter-project communications Post-implementation tracking and feedback Governance Program and project prioritization and risk/cost/value analysis Decision-making, including commitment of time, money and resources Issue resolution Project monitoring and integration Project Management Project definition and initiation Task planning and execution Project completion and acceptance Resource Management Skill-to-task matching Resource gap analysis and resolution Global resource optimization Program Management Office Governance Communications Management Project Management Resource Management Change Management Cost Management

Governance: Project Initiation Process Example Project Initiation Process Use one, simple project request form for all projects Only authorized individuals can submit project requests (VPs/Senior VPs) All project requests go directly to the PMO PMO evaluates the requests (enterprise architecture & project ranking tools) Steering Committee approves/disapproves requests – approval authorizes effort to do detailed planning of the requests (no funding approval at this point) Develop detailed cost & schedule estimates for approved projects Steering Committee reviews estimates and approves/disapproves funding or pursuit of funds – normal budget & financial processes allocate funds Project execution begins, and the PMO reports status of funded projects to the Steering Committee at least monthly

Project Management Support Project Support Project reviews/evaluation Project Start-up/shut down Assist with troubled projects Consulting and Mentoring Knowledge transfer PM best practices competency Succession planning Provide PM Instructors Coordinate PM Training Provide Training Materials Training Identification of PMs for projects Certification for PMs Project Manager Resources Adherence to PM standards Promote PM Methods Accessibility of Methodology Methods and Standards The Program Management Office

Resource & Cost Management Automated tools are required to do these functions effectively and efficiently The PMO focuses on “projects”, but resource issues cut across operational activities – hence a need to track time on operational tasks. Can create a “project” or “projects” to represent operational work in relation to project work PMO provides value-added by recognizing the need for or opportunity to adjust resource allocation between projects

Communications: Example of Organization & Roles

Change Management This PMO function: Anticipates organizational change caused by single or multiple projects, or that will impact projects Ensures that activities occur to manage that change in a smart way Examples IT disaster recovery: operating units have fewer software applications and fewer people, so how will they operate in a disaster recovery mode? Multiple new, inter-dependent and enterprise-wide software applications: role based training will be needed in addition to application training Organization Reduction-in-Force (RIF): organizational cost cutting will impact availability of project resources Incentives for project managers: are individuals only “graded” on their operational day jobs? So what encourages them to be successful PM’s?

Implementing a PMO: Basic Stages Assessment Definition Commitment Initiation Planning Execution / Control Transition / Shutdown Assess current environment: PMO Maturity Assessment, Current Projects Assessment, ROI and Cost Model Assessment Define Program Management Office (PMO): PMO Strategy and Mission Document Gain Executive Commitment to Build and Maintain PMO Initiate PMO Project: Governance Process, Business Case Development and Sign-off Plan PMO Implementation: PMO Manual, PMO Project Plan Sign-off Build and Implement the PMO: Initiate Training, Support, PMO Processes Hand-over to Client, Close Project: Transition Plan, Project Review

Implementing a PMO: Key Checkpoints PMOM01.2 PMOM01.1 PMOM01.4 PMOM01.6 Conduct PMO Maturity Model Assessment Conduct Assessment of Current Projects Outline Strategy and Mission Statement Client Sign-off on Assessment Assessment PMOM02.1 PMOM02.2 PMOM02.3 Conduct Assessment of IT Governance Process Develop PID / Business Case Client Sign-off on PID / Strategy Initiation PMOM03.4 PMOM03.12 PMOM03.12b Develop PMO Manual Client Sign-off on PMO Manual Planning PMOM04.2 PMOM04.3 PMOM04.4 PMOM04.6 PMOM04.7 PMOM04.8 Transition / Execution Implement Use of PMM / Delivery Methodologies Create Rolled-up Master Schedule Conduct PMO RAID Management Initiate Training Program Publish Revised PMO Manual Conduct PPW / Prepare PPW Report PMOM05.2 Execute Transition Plan PMOM04.5 Create Master Progress Tracking Report Define Transition Plan

Implementing a PMO: A Typical Lifecycle Estimated Timeline Assessment/ Initiation Planning Transition 2 Months 3 Months 1 Month 6 Months Execution PMO Maturity Model Governance Process Project Planning Workshop Project Management Planning Cost Planning Plan Execution Cost Management Tracking Monitoring & Controlling Performance Reporting & Information Distribution PMO Turn Over Program Initiation Workshop Team Development/ Mentoring Administration of Program Management Office PMO Deliverables PMO PID/ Strategy (Charter) Administration/ Controls Planning Communications Planning Project Assessment

Implementing a PMO: Resource Considerations

Suggestions to Jump Start PMO Implementation Identify the portfolio of projects – seeing the volume of work gets senior leader attention (leaders define the threshold: >80 hours?) Begin monthly senior leader governance meetings immediately, refining the process as you go Operating units need to see someone in charge, to whom they must sell new project requests PM’s need to see someone make prioritization decisions The PMO Champion (preferably the CEO/COO) directs that: Projects follow the same methodology (workshops, templates, etc.) PM’s report weekly and brief to a designated senior leader monthly

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