A Project Management Office, abbreviated to PMO, is a group or department within a business, agency or enterprise that defines and maintains standards for project management within the organization. The PMO strives to standardize and introduce economies of repetition in the execution of projects.
3. PMO MODEL
There are two (2) standard Project Management Office (PMO) models:
Administrative and Functional.
The key difference between the two is “ownership” in terms of Accountability.
The Administrative PMO is responsible for maintaining the approved policies, processes, and
procedures commonly applied across all programs/projects, as well as the centralized Project
Administration support necessary to ensure consistent implementation.
A Functional PMO, on the other hand, is an organizational activity that assigns the Project
Manager (PM) resources responsible for program/project cost, schedule, and
technical/quality performance. It is important to note that a Functional PMO also performs all
of the functions of an Administrative PMO, including assignment of a Project Administrator
4. PRIMARY REASON FOR IMPLEMENTING PMO
Efficiency – making optimal use of available resources;
Effectiveness – ensuring Project Management processes are delivered in a correct,
consistent, and timely manner; and
IT Governance – providing the leadership, organizational structure, regulations,
standards and processes that ensure projects comply with best practices in accordance
with the enterprise charter/mission, strategies, and business objectives
Regardless of whether it follows an Administrative or Functional model, the PMO serves as a
mechanism for satisfying six (6) standard process control objectives:
5. SIX STANDARD PROCESS CONTROL OBJECTIVES
Process Owner – designates an “owner” for each Project Management process so that
performance responsibility is clear
Process Repeatability – Project Management processes are defined and yield consistent
process results/outcomes
Clear Goals and Objectives – establishes clear goals and objectives for effective
execution of each Project Management process
Assigned Roles and Responsibilities – defines unambiguous roles, activities, and
responsibilities for each Project Management process to ensure efficient execution
Process Performance Evaluation – objectively measures the performance of each
Project Management process against defined goals and objectives
Approved Policy, Plans, and Procedures – documents, reviews, approves, and
communicates to all stakeholders the applicable policy, plan, and procedure/work
instructions that drive each Project Management process
7. PROJECT PLANNING
For the PMO and PM to be successful, all activities,
goals, milestones, and schedules must be
documented in a Project Plan.
Project Plans are based on the Work Breakdown
Structure (WBS), which identifies the activities
necessary to deliver the highest value project
work products and performance. The WBS defines
the total project work scope, and each
descending level of the WBS represents an
increasingly detailed definition of the work to be
performed.
The WBS provides the project scope definition
foundation for resource and performance
planning, time and cost estimating, budget
formation, and progress/performance tracking
and reporting.
Initiation
Planning
Costing
Execution
Closing
Control
PROJECT
PROCESS
8. COMMUNICATION MANAGEMENT
Effective communications are a key
factor in Project success. Project
communications best
practices include periodic Project
Team meetings, regularly
scheduled Client meetings and
formal reviews and audits, and
submission of regular (e.g., monthly)
Cost and Schedule Status
Reports (CSSRs).
To facilitate communication among
the Project Team members and
timely service delivery to Clients, a
PMO can employ a variety of
collaboration tools.
Project
PMO
Project
Managers
PMO
Management
Team Leads
Team
9. CHANGE MANAGEMENT
Project Change Management - a general
term describing the procedures used to
ensure that changes are introduced in a
controlled and coordinated manner.
Change Request – Requests to expand or
reduce the project scope, modify policies,
processes, plans or procedures, modify
costs or budgets, or revise schedules.
Change Order – Used in some companies
to identify approved change requests
(change request when the request is
made and change order once it has
been approved)
Identify
Change
Discuss
Report
Implement
Analyze Document
10. QUALITY MANAGEMENT
Quality Management is a less-emphasized function of the PMO. In large IT organizations,
primary Quality guidance is provided by a centralized Quality function and actual
implementation guidance by the PMO. For smaller IT organizations, the PMO.
However, it is important that the PMO incorporate the Quality Management aspects into its
guidance and governance systems, since process-orientation can bring in discipline and
streamline all activities in the Programs/projects.
11. QUALITY MANAGEMENT
The key responsibilities of a PMO for Quality Management include:
• Setting up quality standards if none exists or tailoring organizational standards.
• Provide guidance on defining acceptance criteria to measure successful completion of
the project.
• Provide guidance on setting up Program and project specific metrics for monitoring,
tracking progress and quality.
• Schedule, conduct and review Program and project audits to ensure they are following
the guidance provided by the PMO.
• These aspects can be detailed out in a Quality Management Plan. A well-structured QM
Plan can help the Program/Project adhere to the accepted practices in their projects. In
addition, the PMO may also provide.
• Quality management support to projects through a dedicated team of people.
12. QUALITY MANAGEMENT
A typical QM Plan will have the following Table of contents (sections):
• Reference to organizational processes (if available)
• List and reference to any adaptations to the organizational processes, templates and
checklists
• List and reference to program/project specific processes, templates and checklists
• List and reference to all standards/guidelines (including technical, industry-specific
regulations, domain etc.)
• Release Reviews performed by the Quality function before any customer/production
release.
• Program/Project specific metrics and tolerances
• Work product reviews that will be performed by people in the Quality function
• Tools and techniques used for Quality activities
• Defect prevention, causal analysis activities and techniques
• Reports and Dashboards
• Frequency and timing of project reviews and audits by the Quality function
13. QUALITY MANAGEMENT
PROJECT DELIVERABLE MANAGEMENT
Prepare Work
Product
QA / QC
Review
Rework?
Deliver to PDU
PDU Review
Rework?
Yes
No
Yes
No
Approve for
Delivery
Client
Comments
Approved?
Client User
Acceptance
Testing
Deliver to Client
Project
Library
CR
Yes
No
14. RISK MANAGEMENT
A risk is a possible future event that may affect
your project either positively or negatively.
Risk management is the systematic process of managing an
organization's risk exposures to achieve its objectives in a manner
consistent with public interest, human safety, environmental factors,
and the law. It consists of the planning, organizing, leading,
coordinating, and controlling activities undertaken with the intent of
providing an efficient pre-loss plan that minimizes the adverse impact
of risk on the organization's resources, earnings, and cash flows.
15. RISK MANAGEMENT
Risk Assessment has three elements:
Identify Uncertainties
Explore the entire project plans and look for areas of uncertainty.
Analyze Risks
Specify how those areas of uncertainty can impact the performance of the project,
either in duration, cost or meeting the users' requirements.
Prioritize Risks
Establish which of those Risks should be eliminated completely, because of potential
extreme impact, which should have regular management attention, and which are
sufficiently minor to avoid detailed management attention.
16. RISK MANAGEMENT
In the same way, Risk Control has three elements, as follows:
Mitigate Risks.
Take whatever actions are possible in advance to reduce the effect of
Risk. It is better to spend money on mitigation than to include
contingency in the plan.
Plan for Emergencies.
For all those Risks which are deemed to be significant, have an
emergency plan in place before it happens.
Measure and Control.
Track the effects of the risks identified and manage them to a
successful conclusion.
17. EARNED VALUE MANAGEMENT
Earned Value Management (EVM) is a project management technique that objectively tracks
physical accomplishment of work
More Elaborately:
• Earn Value Management (EVM) technique used to track the Progress and Status of a
Project & Forecast the likely future performance of the Project.
• EVM technique integrates the scope , schedule and cost of a project.
• EVM technique answers a lot of questions to the stakeholders in a project related to the
performance of the project.
• EVM technique can be used to show past performance of the project, current
performance of the project and predict the future performance of the project by use of
statistical techniques.
• Good planning coupled with effective use of the EVM technique will reduce a large
amount of issues arising out of schedule and cost overruns.
18. . . . follow process and progress will follow.
20. LEVEL 1
REACTIVE PROJECT MANAGEMENT – AD HOC
Level 1 is the Reactive Project Management stage where methods are undocumented
and delivery, budgets and schedules are uncontrolled.
At this basic level, PMO need to establish methods for project scheduling, time tracking,
resource assignments, project tracking, oversight & support and perhaps use an
automated
project dashboard to track project success.
Key Identifications:
• No formal Project Management Process exist across the organization.
21. LEVEL 2
REPEATABLE PROCESS – CONSISTENT
Level 2 occurs when companies begin adopting Repeatable Processes. The main
project
management processes have been defined, but not constantly used. Still, project
teams find it difficult to repeat earlier successes and the project still risks exceeding
budgets and schedules.
At this established phase, PMO's should automate project budgeting, risk and issue
tracking,
requirements tracking, resource management.
Key Identifications:
• Secure Management Support.
• Establish Project Goals across IT & Project Teams.
• Consistent use of Documented Process.
• Establish & Implement PM Training
22. LEVEL 3
PROACTIVE, STANDARDIZED PROJECT
MANAGEMENT – INTEGRATED
Level 3 PMO's show a commitment to Proactive, Standardized Project Management.
They
employ documented standard project management and delivery processes, and
consistently use these processes companywide for project delivery.
In this growth phase when these new tasks are mastered, the PMO can focus on
automating
other functions such as financial management and business process modeling.
Key Identifications:
• Integrate Business & PM Processes.
• Integrate Project Information Through PMIS.
• Develop Advanced Techniques.
23. LEVEL 4
MEASURED PROJECT MANAGEMENT –
COMPREHENSIVE
PMO’s demonstrate Measured Project Management. Quantitative key performance
indicators have been specified for project success and are monitored frequently.
The PMO has achieved predictable and controllable project delivery and is now
free to become more
“innovative.”
Key Identifications:
• Define goals for all functions and processes.
• Promote metrics based performance.
• Promote participation of all stakeholders.
• Establish risk management culture.
• Establish a PM core competency.
24. LEVEL 5
MATURED – OPTIMIZING
At Level 5, the most mature PMO enterprises continuously improve project
management. At
this level, the “connected” PMO can focus on automating vendor management,
collaboration through social networks and blogs – and communication through text,
IM, video or mobile.
Key Identifications:
• Proactively prevent defects.
• Implement a continuous improvement strategy.
• Achieve high project success rates.
25. PMO MATURITY MATRIX
Ad Hoc
• No formal
Project
Management
Process exist
across the
organization
CONSISTENT
• Secure
Management
Support.
• Establish
Project Goals
across IT &
Project Teams.
• Consistent use
of
Documented
Process.
• Establish &
Implement PM
Training
INTEGRATED
• Integrate
Business & PM
Processes.
• Integrate
Project
Information
Through PMIS.
• Develop
Advanced
Techniques.
COMPREHENSIVE
• Define goals
for all functions
and processes.
• Promote
metrics based
performance.
• Promote
participation
of all
stakeholders.
• Establish risk
management
culture.
• Establish a PM
core
competency.
OPTIMIZING
• Proactively
prevent
defects.
• Implement a
continuous
improvement
strategy.
• Achieve high
project
success rates.
Tactical Strategic
26. PMO OBJECTIVES DURING MATURITY STAGES
Ad Hoc
•Discourage
"Under the Table"
or Untracked
Work
CONSISTENT
•Review progress
through Weekly /
Monthly Checks
•Provide general
support
•Assist with Project
Planning
•Enforce Project
Standards
•Strengthen PM
Skills (Coach,
Mentor, Train)
INTEGRATED
•Identify
overlapping
projects
•Performed
troubed projects
rescue /
abandonment /
postmonement
•Monitor project
scope creep
•Develop advance
processes (Risk
Management,
SCope
Management)
•Help PM's too
secure Buy-In and
Support from
Managers and
Executives
•Leverage
Historical Lessons
Learned
COMPREHENSIVE
•Manage project
prioritization and
reprioritization
•Resource
capacity planning
•Improve ROI
•Collect Project
Data in
Consistently used
PMIS
OPTIMIZING
•Actively manage
and enhance
processes and
procedures
•Achive high
project success
rates
27. We are what we repeatedly do.
Excellence then, is not an act, but a habit.