Post on 02-Jun-2018
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Karl Knapp, MBAAmerUs Group / Indianapolis Life
Building a PMO from the Ground Up
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Agenda
Steps to Building & Maintaining a PMO:
Step 1: Assessment
Step 2: Approach Step 3: Application
Step 4: Repeat
Case Study
Step 1: Assessment
Step 2: Approach Step 3: Application
Results
Revised Approach
Questions & Answers
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The Greatest Tool For a PMO
Common Sense
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Step 1: Assessment
History
Culture
Perceptions of PM
PM Maturity
PM Talent Review
Mission & Vision
Gap Analysis
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Historical Assessment
A historical assessment of the company allows you
to understand where the company came from, what
path it has traveled and how it has gotten to where itis currently at.
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Cultural Assessment
The culture of the company has a major impact on
the approach to take implementing a PMO.
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Perceptual Assessment
The perception of project management in the
company will GREATLY affect the right approach
to implementing a PMO.
Find out about project failures. Drill down into why
the happened, who got hurt, and who might be
harboring ill thoughts about project management. Find out about process successes, and drill down
into these.
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Maturity Assessment
At the outset of establishing a PMO, assess the
project management maturity of the organization.
This early assessment will:
Guide the areas of focus for the PMO
Establish the baseline to track improvement in the project
management maturity level of the organization.
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Talent Assessment
The level of available project management talent in
the organization is another key indicator of the
approach to take.
Identify experienced and influential individuals.
Involvement of project managers throughout the
organization is a key to success.
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Mission Assessment
The mission answers the question, “why do weexist? ”. The mission should:
Provide a sense of timelessness
Involve both “ends” and “means”
Appeal to all stakeholders
Address all four basic needs (physical/economic,social/emotional, mental/ intellectual, &spiritual/holistic)
Be developed and owned at all levels
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Vision Assessment
Vision communicates the future desired state andanswers the questions, "Where are we going?
Where do we want to be one year from now? Five
years from now? Twenty years from now? “
Qualities of Vision: Is challenging, inspiring, and energizing
Creates purpose, direction and commitment
Goes beyond individual self-interest
Becomes an integral part of the culture
In uncomplicated, concise, easy to understand, andsimple to communicate
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GAP Assessment
Given where you are &,
Where you want to be
Identify the gaps as
potential areas for
development
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Step 2: Approach
Given the results of theAssessment , determinethe Approach that fitsorganizational: History
Culture
PM Maturity Available PM Talent
PM Mission & Vision
Gaps & Opportunities
Current Situation
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Steps in Developing an Approach
1. Given your organizational history, culture, and
available talent, choose the proper spot on a
Continuum of Approaches
2. Given your mission, vision, and available talent,
choose the initial, and eventual Menu of Services
3. Target specific opportunities for success. BuildVisible Wins.
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PMO Continuum
Continuum of Approaches
Control InfluenceOversight
• PMO At Highest Level
• Priori tization Leadership
• I nformation Ownership
• Project Managers Report
• Project Staff May Report
• Projects Run By PMO
• Strict Standards
• PMO System Reporting
• Education Standardized
• Certi f ication Standardized
• PMO At High Level
• Prioritization Participation
• I nformation Coordination
• Project Managers Dotted
• Project Staff Affiliated
• Projects Coordinated
• Standards Co-Developed
• System Co-Selected
• Education Of fered
• Certif ication Supported
• PMO At Any Level
• Prioritization Input
• Limited Information
• Project Manager Members
• Project Staff Separate
• Projects Not Coordinated
• Standards Recommended
• Systems Recommended
• Education I s Key
• Certif ication Encouraged
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Develop a Menu of Services
Portfolio Management
Project Selection
Project Prioritization
Project Scheduling
Project Closure
Standards &Information
Project Dashboard Project Status
Project RecordsManagement & Archive
Benchmarking Forecasting
Lessons Learned
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Develop a Menu of Services
Consulting Services
Project Scope
Project Estimation
Project Planning
Full Lifecycle Project
Management
Mentoring
Tools PM Information
Systems
ProfessionalOrganizations
PMI MembershipEncouragement
PMI Membership FeeReimbursement
Host Chapter Meetings
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Develop a Menu of Services
Education & Training
Curriculum Design
Course Design
Course Delivery
Tuition Reimbursement
Certification
Internally Developed
PMP Encouragement
PMP Reimbursement
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Opportunities for Success
Actions speak louder than words
Demonstrate the positive effect of good project
management practice
Find a runaway project to rein in
Better yet, find a visible project, choose your best project
manager and let them execute
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Step 3: Application
Implementing a PMOis implementing
change. Use the eight steps to
successfully leadingchange proposed by
John Kotter in his 1996 book, LeadingChange.
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8 Steps to Leading Change (Kotter)
Step 1: Establish a sense of urgency
Step 2: Create the guiding coalition
Step 3: Develop a vision & a strategy
Step 4: Communicate the change vision
Step 5: Empower employees
Step 6: Generate short-term wins Step 7: Consolidate wins & produce more change
Step 8: Anchor new approaches in the culture
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1: Establish a Sense of Urgency
Build awareness of project management with thecorporate management team
Highlight the results of good examples of projectmanagement
Highlight the need for project management inrunaway projects
Compare the speed and effectiveness of your firmin others in your industry. Can you execute as welland as fast as your competition?
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2: Create the Guiding Coalition
Identify the key influential stakeholders
For senior managers, pick one of their key projects
as a pilot project (choose low-hanging fruit)
Create a project management counsel, steering
committee or board of directors
Involve key project managers in the development ofthe PMO and in the determination of standards
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3: Develop a Vision & Strategy
After creating the initial vision and strategy, refine
it along with the guiding coalition
Have the key project managers involved in refining
the mission, vision and strategy
Get the feedback of the project management
counsel (senior management) on the mission, visionand strategy
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4: Communicate the Vision
COMMUNICATE, COMMUNICATE,COMMUNICATE!
Communicate the mission, vision and strategy tothe organization
Package your message well
If possible, ask for help in designing professionallooking logos to spruce up the presentation
Use town hall meetings, newsletters and thecompany Intranet to communicate
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5: Empower Employees
Support or supply project management training
Support PMI membership
Support project management certification (PMP)
Supply project management tools
Create an environment for success - set realistic
goals
Supply information
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6: Generate Short-Term Wins
Pick low-hanging fruit (VERY IMPORTANT)
High visibility, FUNDED project as a pilot
Runaway projects (more negative but quick)
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7: Consolidate Wins
Win Friends and Influence People
Build on project successes
Highlight project successes outside of the PMO for
good examples of project management
DEMONSTRATE SUCCESS TO SENIOR
MANAGEMENT AND BUILD Once the ball is rolling, GO GO GO!
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8: Anchor New Approaches
Involve more and more people in projectmanagement
Train project participants in the basics of projectmanagement
Embed project planning into organizational planning
Prioritize, schedule and fund projects
Project management should be embedded in everyorganizational change
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Reevaluate and Repeat
Evaluate lessons
learned
Reevaluate mission and
vision
Reevaluate the menu of
services
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Summary
Assessment
Approach
Application
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Case Study
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Grass-Roots PMO
Larry Halbach – Sr. VP of Planning & eBusiness 25% Business Planning
eBusiness Strategy Project Management Organization
Karl Knapp – Executive Consultant 50% Balanced Scorecard
Executive Consulting
Project Management Organization
Colleen O’Brien – Project Manager (Part-Time) 100% Program Manager – Demutualization
Project Management Organization
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PMO Members
Part-Time Focus
Other „jobs‟ were primary
Well respected
Well qualified
Belief in importance of project management
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Assessment
History
Culture
PM Perceptions
PM Maturity
PM Talent Review
Mission & Vision
GAP Analysis
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Assessment - Culture
Management Low morale
Heavy politics Uncertainty
Management versus Project
Management
Unrealized potential for
synergy
Ownership concerns
Lack of accountability
Organizational Multiple Project
Organizations High maintenance
Distribution complexity
IT disconnected from the
business
Multiple uncoordinated IT
organizations
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Assessment –
Perceptions/Maturity Perceptions
Have not completed projects
within specifications, time or budget
Don‟t know performance
Don‟t track performance
Expenses high
Runaway projects
PM Maturity Inconsistent analysis of
alternative approaches Varying methodologies
Varying tools – no effectiveutilization
No standards
No tracking of performancevs. budget
No communication across business units
Lack of prioritization
Don‟t track internal costs
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Assessment – Mission
Promoting consistent use of basic project management
standards, reporting procedures, and tools
Providing a clearinghouse for critical project information
across the enterprise
Enabling senior officers to prioritize strategic projects by
analyzing project commitments and results
Educating employees on leading project management
methodologies
Providing the organization with a nucleus of project
managers who can run projects
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Assessment – GAP Analysis
Area Current State Desired State
MethodsVarying methods, no
standards
Standards, reports, tools,
guidelines & prioritization
Training Minimal training, seat of
the pants
Standard classes (tools, soft
skills, methods), PMI
Consulting None available internally Project reviews, mentoring,
manage projectsSupport Multiple tools, no political
support
Standard tools, templates &
documentation
Managers Only a few trained, no
PMPs, no focused PMs
All PMP certified, career
paths, sponsorship
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Approach
Continuum of
Approaches
Menu of Services
Visible Wins
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Approach - Continuum
Key Determinates:
Lacked a „mandate‟
Uncertain support from senior management
Needed to show rationale for project management and
demonstrate success
Approach Selected:
Influencing the Organization
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Approach – Menu of Services
Prioritization Assistance
Summary major project status report
Prioritization process consulting
Standard PM Templates & Forms
Training Classes (Initiation & Planning class)
Project Management (pilot project)
PMP Reimbursement (anyone passing exam)
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The Project Center Is Born
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Approach – Visible Wins
Manage Large, Visible Project
Demutualization
Put best project manager in charge of the project
Involved from the planning process forward
Assist Prioritization Committee Information – bi-weekly summary status report
Process – facilitated design of prioritization process
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Application
Sense of urgency
Guiding coalition
Vision & strategy
Communicate vision
Empower employees
Generate short-term wins Consolidate wins
Anchor new approaches
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Reevaluation & Repeat
Accomplishments
Lessons Learned
Mission & Vision
Menu of Services
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Reevaluation - Accomplishments
Expanded the consistent use of project managementstandards, reporting procedures & tools
Adopted the Project Management Institute (PMI) body of knowledgeas our basis
Extended the Project Center to include key project managersthroughout the organization in a Project Management Counsel
Created a Project Management Handbook including new projectmanagement forms & processes
Reported critical project information Provided bi-weekl y status and resource projection reports to the
prioritization committee on key projects
Deployed a web-based project dashboard for executives
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Reevaluation - Accomplishments
Grew the base of Project Management knowledgeand experience throughout the company
Conducted two „town hall‟ meetings on project management, Designed, developed and implemented two classes covering the five
PMI processes - 20% of enti re employee base trained
Developed job descriptions for two levels of Project Manager
F ive PMP certified project managers
Provided the organization with a nucleus of projectmanagers, focused on the key corporate projects Demutualization project ($15M) completed meeting strenuous
regulatory & quality goals, on schedule, exceeding cost by 15%
Variable project ($5M) completed one month late, 7% under budget
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Approach – “Virtual” Project
Center
The “Virtual”
Project Center
LH
CO KK
Project
Management
Council
Dept.
PM
Dept.
PM
Dept.
PM PM
Dept.
PM PM
Dept.
PM PM
PO
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CHANGE
Merger with AmerUs
Group
Senior managementcombined
Loss of guiding coalition
and sponsorship
The Project Center movedto the IT Department
What to do?
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Of Course!
Assessment
Approach Application
Reevaluation & Repeat
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Open Discussion