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Developing Project Offices William Franklin
Objectives Context for project, programme and portfolio management support structures and centres of excellence Structure of portfolio, programme and project offices Benefits of establishing a structured framework of support, standards and information sharing
Portfolio Management Project Management Programme Management Vision and Strategic Objectives Change Management Core Business Change activities Change activities
Responsibilities for best practice Accredited Training Organisation Owner of Best Management Practice Examining board
Integrated model PRIORITISATION COORDINATION COORDINATION Risk DELIVERY DELIVERY PORTFOLIO LEVEL PROGRAMME LEVEL PROJECT LEVEL INDIVIDUAL PROJECT & PROGRAMME SUPPORT Manages overall Risk exposure Decision enabling/delivery support model
Integrated model PRIORITISATION COORDINATION COORDINATION Risk DELIVERY DELIVERY Centre of Excellence
P3 and BAU Portfolio  – “The totality of an organisation’s investment (or segment thereof) in the changes required to achieve its strategic objectives.” Programme  –  “ A temporary flexible organisation created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisation’s strategic objectives” Project  – “ A temporary organisation structure designed to deliver specific outputs over a defined period of time according to specified cost, quality and resource constraints” Business as usual  – “ Day to day work, with standardisation and limited changes. Based on a line management structure, where staff have certainty and stability over their work and are clear about their roles”
Portfolio vs. Programme or Project Offices Portfolio Offices Programme and Project Offices Focused on doing the ‘right changes’ Focused doing the ‘change right and doing the change well’ Define right changes, those that best align with strategic objectives, at that particular time, attract acceptable risk, complexity, cost and impact on business as usual Support programme and project managers to delivery a specific change on time, within budget and to standard Usually permanent, aligned with corporate financial governance structures and decisions Temporary, aligned with Programme or Project governance structure arrangements Contact with Senior Management Board  Contact with Programme or Project Board
Benefits by Business Impact Benefits - disciplined project selection  Lots of initiatives, company is growing and investing in new directions Strategic Establishing new presence in new region  Speculative Improving quality of delivery Operational Cost reduction and efficiency improvements Support Strategic Speculative Operational Support Importance to current organisation Importance to future organisation
Benefits – quality standards Enables implementation of quality management standards Increases the number of project deliverables that are ‘right first time’ Enables implementation of international best practice in P3O: Portfolio management Programme management Project management
Benefits – efficient use of resources Disciplined project selection process based on business benefits/value for money/strategic contribution Enables one vision of all projects across the organisation, leading to focussed project activity Project 1 Project 2 Available resources
Benefits – information exchange PMO Project tolerances Project progress/exceptions Project Board Project Manager Team Manager Stage tolerances Stage progress/exceptions Work Package tolerances Work Package progress/issues To PMO: Project progress Project level risks, issues and changes Exceptional items From PMO: Decisions on priority in overall portfolio Decisions on resource availability and allocation Information on risks, issues and changes from other projects Directing Managing Delivering
PMO responsibilities Support/Enabling Assurance/Restraining Provision of tools, techniques and resource database Information hub for senior management Central management of core project, programme and portfolio functions Verifying achievement towards planned outcomes Optimisation of portfolio to achieve successful implementation of change Ensuring viability of desired strategic outcome Level of business change Governance
Typical P3O roles Management roles PO Sponsor Head of PO Programme or project specialist (coach/mentor) Programme or project officer (coordinator or administrator) Functional roles Benefits Commercial (contract) Communications & stakeholder engagement Information/Config Mgt Finance Issue/Risk/Change Planning Quality assurance Resource management Reporting Secretariat/administrator Tools expert
P3O Sponsor Ideally member of main board  Directs and champions establishment and evolving operation of the P3O  Committed to developing maturity of project management across the organisation Has strong leadership and management skills Understands wider objectives of the portfolio and programmes Develops and maintains relationships with senior managers, programme and project teams and 3 rd  parties © Maven Training 2009 © Crown copyright 2008
Head of P3O Establishes and runs permanent office Develops and maintains robust relationships with business, programmes and projects Understands wider objectives of the change, has credibility within environment to influence others  Provides strategic challenge, overview and scrutiny May be a Strategic or Business Planning Manager or Director Has significant experience of project management Has understanding of programme and portfolio management © Maven Training 2009
P3O pitfalls Not investing appropriately in the right skills Investing too heavily in tools which the organisation is too immature to use effectively Trying to do too much too quickly – instead of a phased implementation Unsupportive culture due to lack of senior management support Lack of skilled programme and project managers Lack of clarity in roles and responsibilities of individuals or of the Programme Office  Lack of integration of functions and services offered by P3O offices and the wider organization Lack of buy-in of business owners into the need for project and programme discipline Low level of understanding of the Senior Management role in sponsoring business change Lack of appetite on the part of senior managers for decision support information
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PMO Presentation

  • 1. Developing Project Offices William Franklin
  • 2. Objectives Context for project, programme and portfolio management support structures and centres of excellence Structure of portfolio, programme and project offices Benefits of establishing a structured framework of support, standards and information sharing
  • 3. Portfolio Management Project Management Programme Management Vision and Strategic Objectives Change Management Core Business Change activities Change activities
  • 4. Responsibilities for best practice Accredited Training Organisation Owner of Best Management Practice Examining board
  • 5. Integrated model PRIORITISATION COORDINATION COORDINATION Risk DELIVERY DELIVERY PORTFOLIO LEVEL PROGRAMME LEVEL PROJECT LEVEL INDIVIDUAL PROJECT & PROGRAMME SUPPORT Manages overall Risk exposure Decision enabling/delivery support model
  • 6. Integrated model PRIORITISATION COORDINATION COORDINATION Risk DELIVERY DELIVERY Centre of Excellence
  • 7. P3 and BAU Portfolio – “The totality of an organisation’s investment (or segment thereof) in the changes required to achieve its strategic objectives.” Programme – “ A temporary flexible organisation created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organisation’s strategic objectives” Project – “ A temporary organisation structure designed to deliver specific outputs over a defined period of time according to specified cost, quality and resource constraints” Business as usual – “ Day to day work, with standardisation and limited changes. Based on a line management structure, where staff have certainty and stability over their work and are clear about their roles”
  • 8. Portfolio vs. Programme or Project Offices Portfolio Offices Programme and Project Offices Focused on doing the ‘right changes’ Focused doing the ‘change right and doing the change well’ Define right changes, those that best align with strategic objectives, at that particular time, attract acceptable risk, complexity, cost and impact on business as usual Support programme and project managers to delivery a specific change on time, within budget and to standard Usually permanent, aligned with corporate financial governance structures and decisions Temporary, aligned with Programme or Project governance structure arrangements Contact with Senior Management Board Contact with Programme or Project Board
  • 9. Benefits by Business Impact Benefits - disciplined project selection Lots of initiatives, company is growing and investing in new directions Strategic Establishing new presence in new region Speculative Improving quality of delivery Operational Cost reduction and efficiency improvements Support Strategic Speculative Operational Support Importance to current organisation Importance to future organisation
  • 10. Benefits – quality standards Enables implementation of quality management standards Increases the number of project deliverables that are ‘right first time’ Enables implementation of international best practice in P3O: Portfolio management Programme management Project management
  • 11. Benefits – efficient use of resources Disciplined project selection process based on business benefits/value for money/strategic contribution Enables one vision of all projects across the organisation, leading to focussed project activity Project 1 Project 2 Available resources
  • 12. Benefits – information exchange PMO Project tolerances Project progress/exceptions Project Board Project Manager Team Manager Stage tolerances Stage progress/exceptions Work Package tolerances Work Package progress/issues To PMO: Project progress Project level risks, issues and changes Exceptional items From PMO: Decisions on priority in overall portfolio Decisions on resource availability and allocation Information on risks, issues and changes from other projects Directing Managing Delivering
  • 13. PMO responsibilities Support/Enabling Assurance/Restraining Provision of tools, techniques and resource database Information hub for senior management Central management of core project, programme and portfolio functions Verifying achievement towards planned outcomes Optimisation of portfolio to achieve successful implementation of change Ensuring viability of desired strategic outcome Level of business change Governance
  • 14. Typical P3O roles Management roles PO Sponsor Head of PO Programme or project specialist (coach/mentor) Programme or project officer (coordinator or administrator) Functional roles Benefits Commercial (contract) Communications & stakeholder engagement Information/Config Mgt Finance Issue/Risk/Change Planning Quality assurance Resource management Reporting Secretariat/administrator Tools expert
  • 15. P3O Sponsor Ideally member of main board Directs and champions establishment and evolving operation of the P3O Committed to developing maturity of project management across the organisation Has strong leadership and management skills Understands wider objectives of the portfolio and programmes Develops and maintains relationships with senior managers, programme and project teams and 3 rd parties © Maven Training 2009 © Crown copyright 2008
  • 16. Head of P3O Establishes and runs permanent office Develops and maintains robust relationships with business, programmes and projects Understands wider objectives of the change, has credibility within environment to influence others Provides strategic challenge, overview and scrutiny May be a Strategic or Business Planning Manager or Director Has significant experience of project management Has understanding of programme and portfolio management © Maven Training 2009
  • 17. P3O pitfalls Not investing appropriately in the right skills Investing too heavily in tools which the organisation is too immature to use effectively Trying to do too much too quickly – instead of a phased implementation Unsupportive culture due to lack of senior management support Lack of skilled programme and project managers Lack of clarity in roles and responsibilities of individuals or of the Programme Office Lack of integration of functions and services offered by P3O offices and the wider organization Lack of buy-in of business owners into the need for project and programme discipline Low level of understanding of the Senior Management role in sponsoring business change Lack of appetite on the part of senior managers for decision support information
  • 20.  

Editor's Notes

  1. P2FP2009-DEL-EN-Slides 1.1Maven Training Ltd 2007 P2FP-DEL-EN-1. Slides 6.5 Maven Training PRINCE2™ Course Slides Maven Training Ltd 2007 P2FP-DEL-EN-1. Slides 6.5 You can give the brief history of PRINCE2 if you like, but this is no longer part of the Syllabus PRINCE was established by CCTA (the Central Computer and Telecommunications Agency) in 1989. CCTA is now the Office of Government Commerce and they continued to develop PRINCE. PRINCE2 was launched in 1996 in response for a project management method that could be used for all sorts of projects and not just IT systems. There are other methods and approaches but realistically PRINCE2 is seen as best practice - probably best evidenced by its wide requirement in many project management job specifications In the UK, the APM have their own Body of Knowledge; in US the PMI have a similar “Body of Knowledge”; the BSI have BS6079 but these are primarily for guidance and do not have the project management structure which resides within PRINCE2 and makes it unique. Give an overview to delegates of how P2:2009 was generated and “split” into two with the Directing manual. Also how this now links in with the other available standards. Office of Government Commerce (OGC), owns the licence: Works with public sector organisations to help them improve their efficiency, gain better value for money from their commercial activities and deliver improved success from programmes and projects APM Group are the examination board Supported by accredited training companies and consultants Important to reassure delegates that the examinations are formally accredited and therefore are well respected in the job marketplace. This is not the sort of course where they simply turn up and get an attendance certificate - their hard work is formally recorded in their examination results. Last point - remind them that PRINCE stands for PR ojects IN C ontrolled E nvironments – consider drawing this on a pre-pared flipchart in your training room
  2. Programmes are different from projects in that it is their outcomes that matter not their outputs . Outputs are specified deliverables from projects that are delivered within time, cost and quality constraints. Outcomes are the effects of change and form part of the vision for the programme. Purpose of a programme is to change organisations and deliver the company strategy. Try to give delegates a sense of the difference between project and programme management: Business as usual is very different because of the level of certainty – there are staff who fit very well in this environment because they derive a great deal of security from this structure and if secure then they perform better – but others find it too constraining and thrive in not knowing what they are doing, who they are working with next week. Working from the bottom up – the level of uncertainty grows – BAU provides a great deal of certainty and stability over what is to be done each day. Projects, whilst subject to changes, issues and risks, still have a level of certainty, usually driven from the time constraints that they operate under – projects might deliver a little early or a little late, but in the grand scheme of things, there is general understanding of the milestones and when they will be hit. Programmes, however, are often far longer in duration, and are more uncertain of when things will eventually finish. This is coupled with an evolving project list – whatever projects you think will form part of your programme at the start, they are likely to double in number and extra workstreams will be added – it is just the nature of the work. MF- Personally, I prided myself on enjoying the uncertainty that project management gave me – doing something different every day, working with new people etc. However, when I was promoted to programme manager, I started to look back on project management very fondly, as it was so much more certain than a constantly evolving programme, where the only stake in the ground was the overall vision of what we were going to create ultimately.
  3. Maven Training - MSP Foundation Course Slides MSPFP-TRA-EN-1. Trainer Slides 5.6 This diagram is based on the diagrams on p65 and 74 and tries to show delegates the linkages between what they are planning to do – in this case lets pretend that the company is growing and has lots of strategic initiatives that it is following – therefore, whilst it carries out some speculative, operational and support work we would expect to see the majority of benefits being strategic. Note that the words in the diagram are important for the Foundation exam (i.e. Strategic, Speculative, Key Operational and Support) and how these correspond to the various sectors of the matrix (-/+ importance to future organisation and +/- importance to current organisation).
  4. P2FP2009-DEL-EN-Slides 1.8 Maven Training PRINCE2® Course Slides Remember our Organisation charts and the levels of management. Here we see how the concept of tolerance and management by exception works. Tolerances are approved always one level higher than who needs them. Exceptions always get raised to the next higher authority Portfolio office: Management dashboard Programme office: Escalated programme issues and risks Benefit review reports Programme progress reports – dashboard End-of-tranche review reports End programme report
  5. Example of one of our recent creations in support of a client, the client could use the website before and after the event to both support their learning and embed their learning. Resources page worth a mention with downloadables etc. Questionnaire worth a mention – allows people to assess their level of knowledge prior to attending event