Creating a project charter for a company
Skaur
Unit4Slides1.pptxPMGT 580 Unit 4
Starting 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.
Unit 4 Objectives
Key Questions and Outcomes
What are some of the leading factors that contribute to the establishment of a PMO?
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
What are the typical barriers that often prevent a PMO from establishing a clear vision?
What are the differences between and characteristics of functional and projectized organizations and weak, balanced, and strong matrix organizations?
What are the pros and cons of “selling” the concept of a PMO mindset?
What does organizational culture have to do with setting up a PMO?
What type of PMO should be selected?
What types of staffing might be needed to establish and maintain a PMO?
What is PMO charter and how does a PMO get chartered?
Discussion
What are some of the leading factors that might contribute to the establishment of a PMO?
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.
Perry, Chapter 10.
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Initiating a Successful PMO
PMO
Standards
Policies
Processes
Resources
Training
Monitoring & Control
Practical Roadmap
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
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Vision
Processes
Training
Tooling
Staffing
Assessment
Vision
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
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Vision
Processes
Training
Tooling
Staffing
Assessment
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
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
10
Vision
Processes
Training
Tooling
Staffing
Assessment
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
Discussion
Why people dislike processes?
Training
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
13
Vision
Processes
Training
Tooling
Staffing
Assessment
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
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
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Vision
Processes
Training
Tooling
Staffing
Assessment
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
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
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Vision
Processes
Training
Tooling
Staffing
Assessment
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
Phases
Time
Perry, Chapter 10, Page 344
Perry, Chapter 10, Page 344
In terms of a practical roadmap for establishing a PMO, what are the phases and order of phases that a PMO should seek to follow?
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Vision
Processes
Training
Tooling
Staffing
Assessment
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
1 - Needs Assessment – first meetings
What are the problems? Quantify as much as possible.
What is their idea of a solution?
Prioritize.
Harlan Bridges, PMO Symposium 2011, Project Management Institute
2nd Technique used in creating value add PMO’s
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
Harlan Bridges, PMO Symposium 2011, Project Management Institute
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3rd Technique used in creating value add PMO’s (cont.)
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
Harlan Bridges, PMO Symposium 2011, Project Management Institute
Discussion
Have you ever participated in an assessment and for what?
1 - Needs Assessment
Discovering the Needs
Who are the major stakeholders (the influencers)?
Who are the other stakeholders (those affected)?
What are the challenges of the business?
What are the goals of the business?
What is the culture of the business?
What is the maturity level of the business?
What are the expectations the organization has of the PMO?
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Harlan Bridges, PMO Symposium 2011, Project Management Institute
One of the problems with PMOs is that many times an executive might just decide that their company needs a PMO but not sure why. They assign this task of starting a PMO to a project manager maybe even with a PMP and they are off and running.
But stop.. So many times we come up with a solution in search of a problem and we don’t even know what problem we are trying to solve. How much better to stop and do a needs assessment first as your first setp.
It starts many times with understanding who the stakeholders are and making sure we understand the influencers from the affected. Do we understand what are the current goals and challenges of the business.
Culture is a big issue in change and if we are initiating a PMO we had really better understand the culture and its maturity level and how best to design a PMO that is inline with both.
It is also critical to understand the expectations that the organization might have on the PMO and what results it expects from it.
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Questionnaire – New PMO*
When creating a PMO, interview stakeholders:
Top Three Problems to be solved
How do you view the future state of the PMO? (3 years – what are people doing different)
What do you think should be the goals and objectives of the PMO?
Please describe what you expect from the PMO (What value can it provide?)
How successful has the current organization been in managing projects?
What is the most important performance indicator to you? (What one thing would spell success for you?)
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Harlan Bridges, PMO Symposium 2011, Project Management Institute
Mark Perry, the author of Business Driven PMO Setup tells the story of two candidates that were being interviewed to start a PMO. One candidate had all the lingo down – he could talk the talk of PMOs, the different types, their own opinions on how they would set it up, and the first steps. The other candidate talked a lot more losely about the setup talking about it would depend on what the problems were and tackling the top problems. The company hired the first candidate. The candidate hit the ground running, building all kinds of PMO processes, guidelines, documents, flow charts, and much more.. After nine months of work, no buy in through the organization had been obtained, people didn’t get it, no results could be seen, and they decided to fire the person they hired. They went back to the second person and hired them, and within the 4 months, this person made incredibly significant results by focusing on the top three problems.
We have to focus on the top problems that we are going to solve in order to initiate well a PMO.
We have to have a clear vision of what we think the future of the PMO should be including its goals and objectives.
Value.. Value Value.. We have to make sure the PMO focuses on value because if it doesn’t, it wont survive.
And it has to be about project success.. Schedule, budget, and scope.. How well we manage the items.. Getting this data from a Questionnaire that is obtained through company interviews is a great way to get this information.
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Critical Success Factors – Initiating a PMO
Strong PMO leadership
Support from senior management – ensure they understand they are also responsible for the success of the PMO
Strong PMO champion (sponsor)
Create a sense of ownership among the stakeholders
Outwardly focused
Be aware of the culture and unique needs of the business
Problem solving – be aware of the “pain points” and solve them
Market, market, market
Communicate, communicate, communicate and monitor the effectiveness of the communication
Solicit and act upon feedback
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Just read through these Critical success factors.
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PMO Initiating and Development Process
Organizational
Needs
Determination
Current
Practices
Assessment
PMO Charter
Preparation
PMO Staff
Alignment
Examination
Stakeholder
Analysis
Organizational
Culture
Evaluation
Design
PMO
Plan PMO
Implementation
Preliminary
Functionality
Examination
PMO Charter
Preparation
Gerald Hill, The Complete Project Management Handbook, Appendix A
HIll
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Organizational Needs Determination
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
See page 627-628, Hill.
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Organizational Culture Evaluation
The primary purpose of this activity is to gain an understanding of organizational culture issues and impacts on the PMO design and development effort.
The examination considers strength of support relative to:
Organization change – ability to conduct change initiatives
Business focus – preference to manage business growth vs. profit
Business philosophy – use of formal vs. informal authority
Business alignment – ability to position a new centralized PMO
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
Preliminary Functionality Assessment
The primary purpose of this activity is to provide a preliminary determination of the nature and extent of proposed PMO functionality and operational capability
Use the project continuum as a guide:
Project Office
Basic PMO
Standard PMO
Advanced PMO
Center of Excellence
PMO Staff Alignment Examination
The primary purpose of this activity is to identify PMO resource needs
PMO development team – who will be performing the design and implementation activities
PMO operations staff – who will be establishing and managing the PMO
PMO Managers/Program & Project Managers
Project Administrator
Project scheduler
Contract administrator
Proposal Manager
Business analyst
Project estimator
Resource manager
Legal advisor
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
Review pages 636-639, 655 - 656, Hill. Discuss each of the parts of the charter in detail as this is part of their homework.
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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.
Review assessment
Review charter
Review capability assessment
Specify initial and short-term PMO functionality
Specify long-term PMO functionality
Finalize PMO structure
Plan PMO Implementation
This activity facilitates a planning workshop for implementing the PMO
Convene planners and decision makers
Prepare the work plan
Assess project risk and identify responses
Finalize work plan
Key word for those absent
Listen to recording!
Questions?
