2. The Death of PMO
(as we know it)
David Sides, PMP – Vice President – Project Consulting Services
david.sides@us.sogeti.com
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3. Agenda
• Welcome & Introductions
• Expectations – Why are we here today?
• Dave’s Top 10
• Why a PMO? What does a PMO do? PMO Basics
• Death to the PMO!
• What should a PPO do?
• PPI, PPO Value Proposition, Approach, Models
• Wrap-up, Expectations, Next Steps
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5. Dave’s Top 10 Stupid PMO Tricks
1. Why can’t we do it like we’ve always done it? Don’t you trust us? “They” don’t
need any visibility into my projects.
2. Keep the PMO in IT. We’re the ones who need it anyway. Ignore the business.
We know what’s best for them.
3. Don’t get any EPM tools for reporting. Keep cutting and pasting reports from Excel.
4. Who needs standards? I have my own templates and they work for me.
5. All this process takes more time than the project. You’re killing me with process!
6. PMO is a “dirty word”. Don’t bother defining accountability, R&R and specific PMO deliverables. Just
get those templates out there. We want consistency!
7. No metrics or measurement for improvement. If we don’t measure, we don’t have to
be accountable and prove your improvement. After all, we are already CMM level 3, right?
8. Staff the PMO with untrained or inexperienced resources. Don’t educate, train,
coach, and mentor. Just throw some junior staff into the PMO. That’s all we need to do reports.
9. Staff the PMO with one already overloaded resource. Wear more and more hats
until you can’t get anything done. But, you look really busy.
10. Be known as the “PM Process Police”. Develop lots of methods, processes, and
templates. Tell people they have to use them but don’t teach them how.
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6. Program or Programme
• Program or Programme generally has two meanings:
1. A collection of projects directed toward a common goal. (i.e. The NASA Space
Program)
2. An ongoing set of activities to consistently achieve specified business
goals through the execution of projects. (i.e. PMO)
• A Program uses resources allocated from a business and has the responsibility
to use those resources to achieve business results as defined in goals and
objectives.
• Improvement of processes is a continuous operation program.
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7. Why a PMO?
What % of development projects are over budget by what % of original
estimates?
52% over budget by 200% of original estimates *
What % of projects are cancelled before completion?
32% cancelled before completion *
What % of IT-related projects are late, over budget, lacking in functionality
or never delivered?
80% *
Project over-runs cost US companies and government agencies how much
($$) per year?
$145 billion/year in over-runs *
The greatest contribution to IT project failure is what?
Poor Project Management *
* statistics from National Institute of Standards and Technology, Software Engineering Institute, Gartner and Forrester 6
9. PMO Basics – 1 2 3
1 • A PMO must have strong executive sponsorship and not
just support, but accountability and advocacy.
2 • A PMO must have clear written and agreed objectives,
expectations, and deliverables (Charter).
3 • A PMO must provide continuous business value through
performance.
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11. Death to the PMO!
Process: Procedure, development,
progression, method (Ho hum…)
Everybody needs it but nobody
wants it.
Performance: Do, execute,
achieve, complete, act, go, run (Move it!)
Everybody wants it and we can
“sell” it.
A new paradigm – welcome the Project Performance Office!
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12. What is a PPO supposed to do?
Best Practices for a PPO:
> Governance & Control - the structure and process to control operations and
change to performance objectives
> Assurance - activity to verify and validate all operations and capacity to
perform
> Alignment - activity to support higher level vision, goals and objectives
> Integration - activity to optimize performance across the program value chain
functionally and technically
> Oversight - activity to structure reviews, accountability and management of
projects, stakeholders or suppliers
> Organization & Change - activity to manage competencies, learning,
knowledge and communications
> Improvement - activity to continuously assess performance, research and
develop new capabilities and systemically apply learning and knowledge to the
program
> Standards - activity and limits that define the performance architecture
> Measurement & Reporting – track, forecast, predict, and report
> Resource Pool – manage key projects and PMs
> Process Performance Improvement – continuously improve!
A PPO is supposed to do exactly what is written in its Charter!
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13. Process Performance Improvement
Improve Improve
Process
5 – Optimizing • Continuous improvement through use of Lessons
Learned and Best Practices.. . PM is “in the water”
Hit Targets, Control
Save $$$
4 – Managed • Process control through quantitative and qualitative
metrics and measurement of CSFs and KPIs
Improve Quality Measure
& Reporting
3 – Defined • Standardized processes, templates and documentation used by all
(PPO, milestones, governance, gateways)
Control Time Standardize
& Costs
2 – Repeatable • Using some basic SDLC and Project Management processes
Rework Costs
$$$
1 – Initial • Ad hoc, uncontrolled processes, chaos
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14. PPO Value Proposition
•Maximizes the investment in people as business assets, likely
PEOPLE Performance reducing attrition and improving employee morale.
Provides education, training, and •Improves expertise in the critical functions of project
coaching to build core project management.
management competencies. •Establishes the common vocabulary essential to clear
communications.
PROCESS Performance •Saves time and money in managing projects as project managers
Builds, establishes, deploys, and reuse standard templates.
maintains common project •Improves consistency of communications and reporting as all are
management standards, using common formats.
methodology, processes, •Produces higher quality products as standardization leads to more
templates, and deliverables. repeatability.
TECHNOLOGY Performance •Tracks critical project information for accurate and timely project
monitoring and control.
Installs, configures, and •Provides high visibility into project performance.
administers appropriate automated •Aggregates project information for consolidated reporting
tools to facilitate process and across the enterprise leading to better decisions in managing the
make people more effective. portfolio.
Make your Project Performance Office PERFORM!
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15. Sogeti’s 3-Step Approach to your Project
Performance Office
1. ASSESS – Gap Analysis, Design Program Key Deliverables:
and Roadmap to Improvement • Assessment Report
• Gap Analysis
1. Assess “As-Is” situation in People, Process, & Technology.
• Design & Roadmap
2. Map existing Best Practices and Identify Gaps to standards.
3. Design “To-Be” Program and Roadmap for your PPO.
2. IMPLEMENT – Build PPO for your specific Key Deliverables:
• Business Benefits
needs and organization Early & Often
• People – Plan for your people as business assets. • Process Definition
• Process – Build “Just-Enough-Process” for effective management, • Tool Identification
monitoring and controls.
• Technology – Select appropriate and cost-effective tools.
3. ADOPT – Reinforce, Train, Mentor to
Key Deliverables:
provide continuous business-value • Incremental
• People – Educate, train, coach and shadow to improve expertise. Business Benefits
• Process – Standardize, Measure, Control, and Continuously Improve. • Continuous Process
• Technology – Expand tool effectiveness incrementally to ease adoption. Improvements
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16. Sogeti’s PPO Models
Organizational
5x5 PPO PPO Wheel Project
Management
• 5 key focus areas • 12 key functions • 6 key areas
• 25+ actionable, • 50+ activities • 100+ best practices
deliverable-based
activities
Sogeti’s PPO models have evolved through 35+ years of experience in Portfolio,
Program, Project Management, and Organizational Process Improvement.
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17. Sogeti’s 5x5 PPO Model
Business Focus Project Charters Portfolio Develop a Benefits Develop a Implement a
Knowledge
Management
and Alignment Management using Realization Customer Vendor
with IT & Business & Program to Prove Feedback Management
Business
Value
Methods
Business Performance ROI (“Reality on Program Program (prep
Strategy Metrics, Tools, & Investment”) for outsourcing)
Resources
Dashboards
Risk
KM Focus Develop an Create and Create and Integrate Design KM to
Knowledge
Management
Inventory of Maintain a Support an Knowledge Support
Knowledge Knowledge Information Management Collaboration and
Business
Value
Methods
Management Repository Sharing Culture into the Reuse
Assets Project
Resources Risk
Process
Methods Focus Provide “Just Implement a Define Project Become a Ongoing Change
Knowledge
Management
Enough Process” Culture of Management Trusted Management
in Project Accountability with Career Path(s) and Advisor to Program to Ease
Management & a Solid Work Flow Support Skills Project Adoption of Best
Business Methods
Value
Methodology and Signoffs Development Managers Practices
Models
Resources Risk
Resource Focus Analyze Supply Implement a Educate Business Support Provide
Knowledge
Management
and Demand of Resource Resources on PM Education Performance
All Resources – Allocation Process and Development Programs for Appraisals and
Business
Value
Methods
Reduce Across the Methodologies and Existing and Scorecards to
Constraints Enterprise Processes Future Skills Measure
Resources Risk
Improvement
Risk Focus Implement Implement Formal Quantify and Lead Support
Knowledge
Management
Formal Business Technical Risk Manage Risk Regulatory & Corporate
Risk Analysis Analysis Throughout the Compliance Security, DR,
Business Methods
Value Project Support and COB Efforts
Initiatives
Resources Risk
David Sides, PMP – VP, Project Consulting Services david.sides@us.sogeti.com 16
18. Sogeti’s PPO Wheel
The functions below include the most common functions of a PPO. One size does
not fit all! Each PPO is tailored to fit the needs of the organization it supports.
Organizational Governance – Strategic Planning, Management of Programs & Projects, Management of Operations
ORGANIZATIONAL PROGRAM PERFORMANCE
CHANGE MANAGEMENT COMMUNICATIONS MEASUREMENT IMPACT
. Culture Analysis & Change . Program Vision . Benefit Mapping
Adoption Programs . Exec Reporting MANAGEMENT
. Program Metrics
. Knowledge Transfer . Program Status/ . Issue Management
. Education &
. Trend
Progress Analysis . Risk Management
. Project Support/
Consulting . Program Change PPO
PORTFOLIO
Control INFRASTRUCTURE
MANAGEMENT
. IT Investment Analysis & MANAGEMENT
Project Prioritization . Methods, Processes, Tools & Templates
. Business Alignment . Process Governance
. Benefits Realization to ROI . Project Knowledge Management
. Do the “Right Projects” . Applied Best Practices & Reuse
Program
PROJECT INTEGRATION Management QUALITY
& COORDINATION MANAGEMENT
. Dependencies/Gaps/Overlaps . Program/Project Quality Plans
. Architecture Adherence . CSF Metrics & Measurement
. Transition to Operations . Project Audits/Reviews
VENDOR AND PROGRAM
THIRD PARTY FINANCIAL
RESOURCE CONFIGUR-
MANAGEMENT ATION MANAGEMENT
MANAGEMENT . Budget vs Actuals
. Readiness . People MANAGEMENT . Earned Value
. Outsourcing . Pool of Project . Version Control
Control Managers . Release control
. Facilities & Materials . Document Management
David Sides, PMP – VP, Project Consulting Services david.sides@us.sogeti.com 17
20. PMO PPO – Project Performance Office
• How do we get from a PMO to a PPO?
1. Assess – Implement – Adopt
2. People – Educate, Train and Coach to develop expertise.
3. Process – “JEP” & “JEC”. Baseline “As-Is”, Measure to Standard(s), Improve.
4. Technology – “JET”. Select & Configure appropriate tools to your situation.
5. Combine Weather Station, Control Tower, Resource Pool, Portfolio Manager,
Benefits Verifier, and Integrator for a full-featured PPO.
• Use SMCI:
1. We must Standardize to Measure.
2. We must Measure to Control.
3. We must Control to Improve.
• What is Continuous Improvement?
• Which Standards to Use?
1. CMMI
2. OPM3
3. CobIT
4. Others? 19
21. Wrap-up
• Discussion:
1. Do you have a charter that authorizes the PPO?
2. Which model and standards are appropriate for your
organization?
3. How much change can your organization handle?
4. Who is best suited to manage and staff the PPO?
5. Did your organization already purchase a tool?
6. What is your timetable?
7. Your questions?
• Review Expectations
• Next Steps
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