project management office - Unit 4 - PMO Charter for your Company
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ReferencepptUnit-4assignment.pptxStarting a PMO
Note: Reference material is The Complete Project Management Office Handbook by Gerard M. Hill and Business Driven PMO Setup by Mark Price Perry.
Overview
It is extremely important when starting up a PMO that a good stakeholder-centered entity is formed. This includes how the PMO needs to support the strategic planning as well as how it is structured. This unit focuses on the steps needed to start up a PMO in a way that will sustain the PMO post startup. You will be selecting an organization in the Unit and writing a PMO charter as a part of one of your assignments.
Potential Leading Factors for a PMO
Need for common tools
Need for organizational training
Need for processes and standards
Need for knowledge assets for project management
Need for governance policies
A successful PMO will have well-defined PMO goals as well as metrics for measuring its performance and a common and shared vision in the organization.
Initiating a Successful PMO
Practical Roadmap
Vision
The PMO vision statement is a short aspirational statement which identifies what you would you like to achieve or accomplish.
A clear statement of who is the PMO
Goals to be pursued
How does it align to customer needs and business strategy
Example: The PMO supports the implementation of the organization’s strategic objectives by providing a full set of professional PMO services. Working in partnership with project teams, stakeholders and sponsors to attain successful outcomes. (www.pmmajik.com)
Processes
Processes
Processes do matter.
Processes should be effective and usable processes
Avoid confusing methodology with process
Methodology is a documented description of the approach to be taken, i.e. project management methodology
Processes provide a functional framework for doing the work
Good process empowers workers and enables them to succeed
Training
Training
The training strategy should include external and internal training
Cost of training should be considered and the ROI
Send just process owner to training to reduce hidden cost of training
Community of practice can play a key role in training
Tooling
Tooling
Must know actionable needs and critical success factors before selecting tools
Conduct evaluation and examination of potential tools
One tool can’t do it all
Consider implementation of the tool
Keep tool usage as simple as possible
There must be a relationship between tools and processes and policies
Integrate your tools into your processes and not the other way around
Staffing
Staffing
Gradually create and staff the office of the PMO as objectives are achieved and phases are completed
There are several staffing models: Functional, Projectized, and Matrix
Matrix organization models include weak, balanced and strong
First step is to name the PMO manager during the vision and processes phases
Small PMO team can be set up to analyze training and tool needs
Organizational PMOs can be established, i.e. IT, Engineering, Applications, Business Unit, Marketing, Strategic, etc.
Assessment
Timing of the assessment is key
After initial PMO setup activities, a detailed gap analysis and maturity assessment is of greater value and practical use
You might be able to limit the scope of the gap analysis and assessment to just essential areas
Three Techniques used in creating value add PMO’s
Needs Assessment – first meetings
What are the problems? Quantify as much as possible.
What is their idea of a solution?
Prioritize.
2 - Needs analysis – subsequent meeting
Paraphrase what they told you in the proper order of importance. Ask for validation.
Identify services and functions:
Required to address the needs of the business
That will provide solutions to challenges identified by the business
That assist the business reach its goals and objectives
3 -Create and present Charter
Goals
Measureable Objectives
Services/Function mix designed to meet the needs of the business
Roles and Responsibilities
Critical Success Factors
Signatures of the stakeholders indicating buy in and ownership
Organizational Culture Evaluation
The primary purpose of this activity is to create the basis for the PMO Design and Implementation
It must include the Project Management Needs and the Business Management Needs
Project management needs include:
Competency – What you know
Capability – What you do
Maturity – how you do it across the organization
Business management needs include (how is the PMO going to be involved):
Revenue generation
Customer satisfaction
Operational efficiency
Stakeholder Analysis
The primary purpose of this activity is to identify stakeholders who will be influential or otherwise involved during the PMO design and development effort.
Stakeholders to be considered:
Executive stakeholders
Business unit stakeholders
Project management stakeholders
Project management staff stakeholders
External stakeholders
Current Practices Assessment
The purpose of this activity is to establish a benchmark for
project management capability improvement.
Assessment of practices
Project initiation, project planning, project implementation, project closeout
Assessment of other factors
Project tools
Project work plans
Project primary plans
Project team competency
Project team structure
Oversight and support
What is PMO charter and how does a PMO get chartered?
A PMO Charter is not a Project Management Charter!
A PMO Charter includes the following:
Business Purpose
Project Management Purpose
PMO Functional Responsibilities
PMO Business Alignment
PMO Business Affiliation
PMO Authority
PMO Resource and Funding Authorization
PMO Charter Review and Approval
Design the PMO
This activity specifies what functionality the PMO will have and how that functionality
will contribute to establishing operational capability within the project management environment
in order to serve the project management and business needs.
