PMO Practices and Trends - bluevisions.co.id › tools › publications › PMO... · Program...
Transcript of PMO Practices and Trends - bluevisions.co.id › tools › publications › PMO... · Program...
Institute of Management | Copyright 2010 | Version 2.2
Government PMO ForumAdel Khreich, Michael Chachaty January 2011
PMO Practices & Trends
Institute of Management | Copyright 2010 | Version 2.2
About Institute of Management
A Division of Blue Visions Management Project Management Consulting
Vetab Registered Training
Organisation (Provider No 91308)
Project Management InstituteRegistered Education Provider(REP Provider ID 2670)
AIPM Endorsed Course ProviderEndorsed by theEndorsed by the
2
Institute of Management | Copyright 2010 | Version 2.2
About blueVisions
3
• Project management services
• Specialist project planning
• Contract services (including dispute resolution and expert witness testimony),.
International consultancy focused on increasing project certainty and reducing risk through innovation, culture and excellence in delivery. Provides the leadership, technical excellence and leading edge tools and methodologies to create platforms for sustained long-term business improvement .
• Program and Project Management Capability improvement including assessments, benchmarking, project health checks, PMO start-up and methodology development.
Institute of Management | Copyright 2010 | Version 2.2
Objectives• Understand challenges for organisations and
PMOs;• Overview role of PMOs in training;• Familiarisation with the various PMO Models
and industry trends; • Develop awareness of the key considerations for
implementing a PMO; and• Understand maturity levels of PMOs.
4
Institute of Management | Copyright 2010 | Version 2.2
Administration• A Copy of the presentation will be on our
websites so no need to take a lot of notes
www.bluevisions.com.au
www.im.edu.au
5
Institute of Management | Copyright 2010 | Version 2.2
Typical Challenges
7
For organisations undergoing change…• Competitive advantage• Time to market of product development• Quality requirements• Costs and profitability• Innovation strategy• Business risks (not just the project risks)• Consistency• Efficiency• Governance and transparency
Institute of Management | Copyright 2010 | Version 2.2
Government vs. Private
8
Private Sector Public SectorStrategic business development Policy driven Increase in market share Response to perceived/actual
service/social needs Remain competitive Pressure on funding, IPART, etc…Profit focus Rarely focused on profits, more on
Allocations Global Local Efficiencies Availability of funding and annual
cash flow cycles – more and more limited resources
Institute of Management | Copyright 2010 | Version 2.2
Government vs. Private
9
Private Sector Public Sector Program Management Office:Resource management –prioritizing
Difficulties in managing resources across conflicting needs
Set standards for achievement of business benefits and tracks
Sets standards but rarely able to track
Deliver the product to market Not commonly involved in deliveryTrain the organisation - Develop capability
Big role in training
Institute of Management | Copyright 2010 | Version 2.2
Government vs. Private
10
Private Sector Public SectorSometimes have sunset clauses Tend to be permanent
department(s)Multiple PMOs
Less documentation Significant documentation requirements to satisfy policy/legislation
Organisation focused policies, procedures and governance
Difficult to influence whole organisation - subject to political influences
Reporting requirements increasing Significant compliance reporting requirements
Institute of Management | Copyright 2010 | Version 2.2
Typical Challenges
11
For PMOs…• Resource Management is the biggest challenge
• Sourcing skills• Conflicting demands on resources
• Decision making ability & conflicting authorities• Competing requirements and priorities• Governance and transparency• Improving capability• Demonstrating value – being able to measure value is
the first step
Institute of Management | Copyright 2010 | Version 2.2
Trends in Project Management
12
Over the last decade…• Much more awareness of standards• Significant investment in training – competency and
knowledge based• More demand for formal qualifications• Sharp increases in membership of industry associations• Buyers have become more knowledgeable and demand
evidence of good practice
Institute of Management | Copyright 2010 | Version 2.2
Missing Ingredients
13
Project Management alone can cause issues• Misalignment with strategy:
• Project targets met but fails to achieve business results (wrong scope)
• Misalignment with market:• Project targets met but was the wrong project
• Poor ROI:• Lack of benefits management (plan and track)
• Ineffective Coordination:• Successful project as a standalone but lost
opportunities for collaboration with interdependent projects
Institute of Management | Copyright 2010 | Version 2.2
Trends in PMOs
14
US research shows…..• Maturity of PMO has become a measure of maturity of
organization in Project Management capability• More than 80% of large companies have or are
implementing a PMO• Greater understanding of strategic value of PMOs• Increased challenges in resource management• PMOs relied on to progress training
Institute of Management | Copyright 2010 | Version 2.2
What is a PMO?
15
PMO represents internal capability…• Program Management Office or Project Management Office
(models to be overviewed later)• Business Unit Level• Functional (department) level• Project level
• To provide centralised and structured leadership & infrastructure for managing & controlling multiple programs and projects• Processes & methodology• Support• Tools• Best practice• Governance
Institute of Management | Copyright 2010 | Version 2.2
Why Have a PMO?
16
It is all about the Business…• Part of maturity growth• For continual improvement in achieving business
objectives• For consistency• To be single point of contact within an organisation
Institute of Management | Copyright 2010 | Version 2.2
Purpose of PMO
17
Delicate balance to avoid conflict• Make best use of company’s time, money and human
resources• Embed consistent repeatable practices in program and
project management• Focus on business level strategic success• Define the metrics required for monitoring & control• Measure program performance• Report to executive
Institute of Management | Copyright 2010 | Version 2.2
Value of PMO
18
Project Management Solutions, Inc
Institute of Management | Copyright 2010 | Version 2.2
Role of PMO in Training
20
An increasing Role ….• Basic technical skills still accounts for more than 50% of
training• Training in software tools skills is also very high• Training in soft skills and business skills is increasing
rapidly as recognition is improving• Areas for improvements:
• Formalise qualifications for PMO staff• Formalise competency frameworks• Formalise competency assessments• Clear capability development roadmap
Institute of Management | Copyright 2010 | Version 2.2
Skill Set for Project Managers
21
Technical Skills – The Science (30%)• Process Champion• The PM Knowledge Areas (S,T,C,R,Q,R,P, C)• The Ability to apply the knowledge (Experience)• Tools and metrics
Soft Skills – The Art (70%)• Stakeholder management (Support and buy-in)• Communication (clarity and relevance)• Team leadership (high performance)
Institute of Management | Copyright 2010 | Version 2.2
Skill Set for Program Managers
22
Business Skills• Business Champion – achieving Benefits,
outcomes, ROI• Market, environment • Process and project management “acumen” only
Leadership Skills• Lead teams (to achieve high performance)• Communication (to influence)• Stakeholder management (engagement)
Institute of Management | Copyright 2010 | Version 2.2
Skill Set for Portfolio Managers
23
Business Skills• Product Champion – focus on market &
customer• Determine business value of a product / project• Technology / product changes in market place• Resource & risk management
Leadership Skills• Communication (to influence)• Stakeholder management (engagement)
Institute of Management | Copyright 2010 | Version 2.2
Why so Many Models?
25
One size does not fit all. Models depends on...• Size, structure and geographical spread of
organisation• Complexity of investment (works) program• Intended PMO Charter• Proposed function• Amount of likely influence• Level within the organisation• Type of organisation (business)
Institute of Management | Copyright 2010 | Version 2.2
PMO Models
26
Typical Models Discussed in this Presentation• Project Control Office – project level• Functional Program Office – functional (department)
level• Enterprise PMO – business (unit) level
Other Models• Project Office – actually delivers projects • Support Model – supports through training and
administration• Resource Model – provides PM resources to other
business units• Or a combination of the above...
Institute of Management | Copyright 2010 | Version 2.2
PMO Models
27
Project Project Project ControlOffice
ProgramA
ProgramB
EnterprisePMO
Tools Systems Support FunctionalProgram
Office
IT Engineering
GeneralManagement
Institute of Management | Copyright 2010 | Version 2.2
Trends on PMOs
28
An increasing trend in....• Trust by executives• More than 50% reporting to the highest level of the
executive• Authority and empowerment• Work on strategic tasks
– Strategic planning– Governance– Key advise to executives– Benefits
• PMO managers selected for their business acumen not just PM skills
• Starting to be involved in portfolio management
Institute of Management | Copyright 2010 | Version 2.2
Project Control Office Model
29
• Support for project teams• Maintain procedures• Support tools• Schedule maintenance• Earned value tracking• Project metrics and tracking• administration
Institute of Management | Copyright 2010 | Version 2.2
Functional Program Office Model
30
• Supports program and project managers within a department
• Central repository of program and project information• More administrative in nature
– Maintain program schedules– Tracking of data– reporting
Institute of Management | Copyright 2010 | Version 2.2
Enterprise PMO Model
31
• Useful for large organisations with distributed environment
• The centre for program management competencies & practice within an organisation
• @ level comparable to other critical functions– PMO manager part of senior management– PMO manager has sufficient influence to broker
tension
Institute of Management | Copyright 2010 | Version 2.2
Enterprise PMO
32
Knowledgemanagement
Knowledgemanagement
ReviewsReviews
ToolSelection /
support
ToolSelection /
support
Processdevelopment /
support
Processdevelopment /
support
Professional development /
support
Professional development /
support
ReportingReporting
ManageProjects,
Programs &Portfolio
ManageProjects,
Programs &Portfolio
Resourcemanagement
Resourcemanagement
TrainingTraining
CoachingCoaching
QualificationsQualifications
Benefitsrealisation
Benefitsrealisation
PIRPIR
Healthchecks
Healthchecks
EnterprisePMO
EnterpriseEnterprisePMOPMO
Institute of Management | Copyright 2010 | Version 2.2
Elements of Enterprise PMO
33
• Empowerment by organisation – align to strategy• Operational management
– Admin– Schedules– Tracking and reporting– Change management & documentation– Facilitation– Risk management
• Methods & processes• Information systems – centralised, accessible• Tools – evaluate, select, deploy & maintain• Metrics & tracking – track, collect, analyse data and report• Management review – formal health checks, gates, post completion,
etc..• Competency training – learning and continuous improvement
Institute of Management | Copyright 2010 | Version 2.2
Tools for PMO
34
Much more sophistication around...• Information management• Schedule management• Financial management• Risk and issues management• Change control• Benefits management• Resource and capacity management• Document storage with version control• Forums and discussions• Contact lists• Quality control• Reporting tools
Institute of Management | Copyright 2010 | Version 2.2
PMO Top 5 Priorities
35
Current trends and focus...1. Improve resource planning & forecasting
– Skills– Demand– Capacity– Contracted vs. Internal – contracted is still more than 50%
2. Improve processes3. Enhance reporting and metrics4. Improve performance measurement - KPIs5. Improve governance
Institute of Management | Copyright 2010 | Version 2.2
Implementing a PMO
36
• How it is implemented impacts success– Buy-in, resistance– Roles & responsibilities– Decision making ability– Political environment– Level within the organisation
• Use a PM approach to implement• Interactive and incremental (multiple cycles including pilots)
– Foundation• Charter & objectives• Current capability vs.. future (end) state – gap analysis• Transformation plan (roadmap)• Senior sponsor – visible sponsorship• Appoint PMO senior team• Communication and change plan
– Transformation pilot (incremental development, training, rollout, early wins)– Fully functional– Refine & improve– Regular assessment of success
Institute of Management | Copyright 2010 | Version 2.2
Observation
39
Basis of strong capability:• Effective project managers (good technical
and soft skills with demonstrated experience)
• Standardised processes (for consistency)• Standardised tools (for efficiency)
Institute of Management | Copyright 2010 | Version 2.2
Capability Development
40
… maturing together in step
Institute of Management | Copyright 2010 | Version 2.2
The 5 Levels of Maturity
41
Level 1 – awareness of process
Level 2 – repeatable process
Level 3 – defined process
Level 4 – managed process
Level 5 – optimized process
Processes not documented , terminology not standardised
Basic practices established, and processes are developing, some are used consistently
Processes documented and integrated to some extent
Processes repeatedly applied and measured against overall performance measurement framework.
Continuous process improvement is being enabled.
Institute of Management | Copyright 2010 | Version 2.2
Developing Capability
42
• An incremental process with a carefully designed change management program
• Master the people aspect of change
• Analyse before you optimise - Identify the opportunities, conduct benchmarking exercises and capability maturity assessments
• Strategies to enable early adoption and create ownership within the project management community
• Consider impact on organisational design, job or role definition, performance management, training needs,
Institute of Management | Copyright 2010 | Version 2.2
Industry PMO Maturity
43
Project Management Solutions, Inc