Emerging Trends in PMO Governance

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Emerging Trends in PMO Governance

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This presentation discusses emerging trends in PMO Governance
and addresses three domains:
Portfolio Management Office
Program Management Office
Project Management Office
Holistically, the term PMO refers to Project Management Office,
but may in fact refer to any of the three above (depending upon
the type and size of the organization). It may also be integrated as
one entity.
Overview

As an organization’s projects, programs, and portfolios
progress and change, there becomes an increasing need to
ensure alignment between PMO governance and business
strategy.
In the next series of slides, we will review the framework that
sets the director for jobs within a PMO:
Portfolio Management Office
Program Management Office
Project Management Office
Context

The purpose of PMO Governance is to:
Centralize decision making pertaining to projects,
programs, and portfolios
Standardize methodologies, procedures, and
templates for projects programs and portfolios
Coordinate resources to work on projects, programs,
and portfolios
What is the purpose of PMO Governance?

Ways PMO Governance benefits the organization:
Oversight of projects, programs, and portfolios
Entity responsible for tactical and strategic direction
Supports organizational maturity and growth
Reduces potential risk
Enables economies of scale through resource pooling
Provides consistency in decision-making processes
What are the benefits of PMO Governance?

People:
Assoc. Vice President/Senior Director: An executive
level or senior management position
Senior Director/Director: A senior management
position
Director/Assoc. Director: A senior management
position
Senior Manager/Manager: A management position
Definitions (1 of 3)

Functions:
Project Manager Internal: Responsible for overall
project management (full-time)
Project Team Member Internal: Subject Matter Expert
(SME), project coordinator (full time or part time)
Project Manager External: Serves as project lead (full
time or part time)
Project Team Member External: SME, supplier, vendor,
consultant, project coordinator (part time)

Structure:
Enterprise: may involve multiple portfolios (which
include programs and projects)
Portfolio: may involve multiple programs and
projects
Program: may be a series of separate programs (not
in a portfolio) that involve multiple projects
Project: may involve one or more projects

PMO Governance Specialist Job Trends
Retrieved from - http://www.simplyhired.com/a/jobtrends/trend/q-pmo+governance+specialist on 06-01-2012
Since October 2010, the following has occurred: Pmo Governance Specialist jobs decreased 13%

PMO Governance – Enterprise Level Job
Description
PMO Governance and Support
Play an important leadership role in our Enterprise PMO Governance that supports a number
of large-scale businesses worldwide.
We are looking for a seasoned individual to serve in the capacity of a PMO professional to
manage a portfolio of programs and projects globally, with a focus on their key deliverables
and impact assessment.
You will be responsible for managing a staff with a full range of PMO duties, (both financial
and non-financial), issue identification and management, risk management, planning and
scheduling. Additionally, you'll ensure the programs and projects deliver results that are
clearly aligned with the business unit's overall objectives and strategy.
Applicants must be able to demonstrate an excellent track record in a senior PMO capacity.
You must have experience in a strong PMO governance organization with a background in
influencing multiple stakeholders.

PMO Governance – Enterprise Level
Portfolio ABC
Program A1
Project A1
Project A2
Project A3
Program B1
Project B1 Project C1
Portfolio XYZ
Program Z1
Project Z1
Project Z2
Project Z3
Senior Director /
Assoc. Vice President

PMO Governance – Enterprise Level
Portfolio ABC
Program A1
Project A1
Project A2
Project A3
Program B1
Portfolio XYZ
Program Z1
Project Z1
Project Z2
Project Z3
Senior Director /
Assoc. Vice President
Project Team Members (external)
Project Manager (internal)
Project Manager (external)
Project Team Members (internal)
Possible Staffing

PMO Governance – Portfolio Level Job Description
PMO Governance and Support
Play an important role in the PMO Governance that supports a number of large-scale
businesses.
We are looking for an experienced PMO professional to manage a portfolio of programs and
projects, with a focus on their key deliverables and impact assessment.
You will be responsible for a full range of PMO duties, (both financial and non-financial), issue
identification and management, risk management, planning and scheduling. Additionally,
you'll ensure the programs and projects deliver results that are clearly aligned with the
business unit's overall objectives and strategy.
Applicants must be able to demonstrate an excellent track record in a diverse PMO. You must
have experience in a strong PMO governance organization with a background in influencing
multiple stakeholders.

PMO Governance – Portfolio Level
Portfolio ABC
Program A1
Project A1
Project A2
Project A3
Program B1
Senior Director /
Director

PMO Governance – Portfolio Level
Possible Staffing
Portfolio ABC
Program A1
Project A1
Project A2
Project A3
Program B1
Senior Director /
Director

PMO Governance – Program Level Job Description
PMO Governance Support
Play an important role in the PMO Governance that supports a number of large programs.
We are looking for an experienced PMO professional to manage programs and projects, with
a focus on their key deliverables and impact assessment.
have experience in a strong PMO with a background in influencing multiple stakeholders.

PMO Governance – Program Level
Program A1
Project A1
Project A2
Project A3
Program B1
Director /
Assoc. Director

PMO Governance – Program Level
Program A1
Project A1
Project A2
Project A3
Program B1
Possible Staffing
Director /
Assoc. Director

PMO Governance – Project Level Job Description
PMO Governance Support
Play an important role in the PMO Governance that supports a number of projects.
We are looking for an experienced PMO professional to manage a projects, with a focus on
their key deliverables and impact assessment.
have experience in a strong PMO with a background in influencing multiple stakeholders.

PMO Governance – Project Level
Project A1
Project A2
Project A3
Senior Manager /
Manager

PMO Governance – Project Level
Project A1
Project A2
Project A3
Project Team Member (external)
Project Team Member (external)
Project Team Member (internal)
Possible Staffing
Senior Manager /
Manager

In order for PMO Governance to be successful it must have:
Sponsorship: endorsement by sponsors, senior-level
management, and key stakeholders
Alignment: working on the right activities that add value to the
organization
Staffing: right people assigned to complete assigned tasks
Successful PMO Governance

Sponsorship
The organizational politics associated with PMO governance
requires a sponsor to address issues from an executive-level
position.
The sponsor makes the necessary contribution to the overall
enterprise business strategy.
Multiple sponsors may share in the responsibility for the
program's successes and opportunities for improvement.
There is a trend to have multiple sponsors as the size or
complexity of PMO Governance increases.

PMO Governance Organization
Project Manager
Program Manager
Portfolio Manager
Project Team Members
Subject Matter Experts
Consultants
Information Technology
Operations
Sales & Marketing
Quality Assurance
Customer Service
HR & Legal

PMO Governance Organization
Project
Manager Project
Team
Member
Program
Manager
Portfolio
Manager
Information
Technology
Quality
Assurance
Subject
Matter
Experts
Consultants
Operations
Sales &
Marketing
Customer
Service
Steering Committee Senior Management Sponsors
HR &
Legal

PMO Governance Oversight
PMO Governance Oversight may be provided by:
Sponsors
Steering Committee
Senior Management
Third party staffing agency (under some circumstances)

Steering Committee
The configuration of steering committees is becoming more diverse:
Steering committees may include: functional department heads,
key stakeholders, members of senior management
The increase in virtual meetings is integrating steering
committees
Vendors or suppliers and sometimes invited to participate
Consultative and advisory models are making their presence
known within the steering committee

Steering Committee: Consultative vs. Advisory
The configuration of steering committees is becoming more diverse:
In a consultative model, business segments have significant
ownership of the work effort and results.
In the advisory model, ownership is diminished by comparison.
Information is transferred to the business segments, and
decisions are expected to conform to the direction provided by
Program Governance.

Senior Management
Senior Management may include:
Functional department managers
Special arrangements to involve suppliers with a
vested interest
Consultants who may serve in a capacity to ensure
compliance, i.e., in situations involving regulatory
agencies

Organizations are becoming more sensitive to aligning a
PMO to its culture which usually resembles one of the
following three types:
Bureaucratic: political (i.e., education, law
enforcement or government
Rules-based: regulated (i.e., health-care utilities, food
products)
Learning: innovation (i.e., technology, hospitality,
entertainment)
PMO Governance and Culture

As expertise within a PMO grows, they become
earmarked for additional work such as:
Resource to support cloud computing environments
Interface to regulatory agencies in support of special
projects, i.e., validation, verification, audits, and
periodic reviews
Centralized project repository to support
documentation requirements and records
management
Emerging Functions of PMO Governance

Challenges PMOs are experiencing more now than in the past include:
Larger staff reductions due to streamlining
Need to justify the existence of the PMO and staff levels
Nature of the global workforce requiring multi-lingual skills
Requirements to support staff in different time zones
Keeping up with changes in technology, i.e., cloud computing
Needs for multiple project management training an/or
certifications, i.e., Agile, PMP, PgMP, PRINCE2 (instead of just one)
Challenges for PMO Governance

PMOs are perceived to lose instrumental value when:
Projects do not come in within time, cost, and scope
Project risk gets out of control of the project team
Sponsorship in the PMO disappears
Project team members are not responsive to stakeholder
requests
Templates once used are no longer followed
Lack of communication from the PMO to the organization
Staffing levels in the PMO diminish
PMO Governance Loses Value When…

A launch refers to the first establishment of PMO
Governance. Before an organization establishes the PMO,
they should:
Benchmark PMOs in similar organizations
Establish short- and long-term goals for the PMO
Adequately staff it to ensure a successful launch
Network for best practices by collaborating with peers
and professional associations, i.e., PMI
Launching PMO Governance

Another emerging trend some organizations are using is to re-
launch a PMO if its perception within the organization needs to
be improved. Rebranding frequently requires:
Restructuring of the PMO
Mission, vision, and purpose aligned to the organization
Revised stakeholder alignment by project team member
New system interfaces, i.e., website, SharePoint site, reports
New marketing, i.e., logo, newsletter and related
communications
Re-branding PMO Governance

Under what rare circumstances is it worth considering terminating
PMO governance:
During mergers and acquisitions, it may be necessary to
integrate project management functions.
There may be conflicting directions by having multiple PMO
governance.
Corporate restructuring may disable the function of PMO.
There may not be adequate work for the PMO to perform if
the nature of the work dramatically changes due to
outsourcing or related circumstances, i.e., product lines have
been sold
Terminating PMO Governance

What is the Function of PMO Governance?
Approval / Rejection
of Projects,
Programs, Portfolios
Acquiring Project Team
Coordination of
Resources Internal / External
Development of
Standards, Policies,
Procedures, Templates
Training and Development,
Coordinating Supporting
Processes and Systems
Project, Program, Portfolio
Evaluations and
Lessons Learned
Quality Assurance and
Quality Control
Internal/External Compliance
Strategic Alignment,
Business Continuity,
Succession Planning
U N C T I O N
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Take-away

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