Leading Successful PMOs

Peter Taylor www.leadingsuccessfulpmos.com

Peter Taylor

Experience: Creativity: Motivation Author Speaker Workshops - Coaching

Leading Successful PMOs

Leading Successful PMOs is a book to guide all project based organisations, and project managers who contribute to and benefit from a PMO (Project Management Office), towards maximising their project success.

Imprint: Gower Published: Oct 2011 Format: 234 x 156 mm Extent: 160 pages Binding: Hardback ISBN: 978-1-4094-1837-5

Quick Quiz
What does PMO mean to you?

The PMO is ...

The Project Management Office (PMO) in a business or professional enterprise is the department or group that defines and maintains the standards of process, generally related to project management, within the organization The PMO strives to introduce economies of repetition in the execution of projects The PMO aims to reduce project risk through common practice and quality assurance The PMO links business strategy to project based execution of that strategy

PMOs

What is meant by a PMO?

What is meant by a PMO?

And the right strategy

You know, what I love is having people who look after our business for me and who help me drive our strategies forward the PMO does both, which isnt what all my departments do....

And the right strategy

Again from The State of the PMO 2010 report
64% of the PMOs advise their executives 62% of the PMOs participate in some form of strategic planning And nearly 60% of PMO Directors/Leaders report in to the EVP level or above

Types of PMOs
A PMO can typically be one of 5 types from an organizational perspective:
A Departmental PMO A SpecialPurpose PMO An Outreaching (Supplier) PMO An Customer (External) PMO An Enterprise PMO

Models of PMO
Blended PMO combining
elements of all three models
Controlling
Standards

Supportive
Aid

Directive
Ownership

Empower

Risk Mgt

Guarantee

Share

Profiling

Unit

And is it real?

All PMOs are not equal

Level 1 Ad Hoc
Few formal definitions PMO is a trouble shooter

Level 2 - Defined
Project discipline in place repeatable behaviour Standards and Method and simple Measures

Level 3 - Controlled
Aligned with business goals PMO is governing, reporting and correcting

Level 4 Measured
Quantitative goals set PMO KPIs in place

Level 5 Optimized
Continual improvement PMO drives innovative changes

PMO Acid Test

Get the PMO leader to call your CEO and then count the number of seconds before he recognizes their name...

PMO Acid Test

When was the last time that a project manager contacted your PMO asking for some form of help? ...

PMO Acid Test

Do people ask why they should use the PMO and do they know what your PMO does...

PMO Acid Test

What happens when you call up a PM, do you get straight through or do they adopt an avoidance strategy...

PMO Acid Test

Do people ask many times over where they should go for project information or project help...

Now
Established project management offices result in projects with higher quality and business benefits

PWC: Insights and Trends: Current Portfolio, Programme, and Project Management Practices

Now
Building a Project Management Office (PMO) is a timely competitive tactic

Gartner Research

Now
With projects in many organizations becoming global, involving multiple business units and locations, the benefits of PMO are more visible

2012 KPMG report - Business Unusual: Managing projects as usual

The Book Research

Peter Taylor www.leadingsuccessfulpmos.com

Being part of a PMO

Personal Satisfaction

Project Success

Project Quality

Process

Career

Training

Support

Much improved

Better

No change

Worse

Much worse

I have always worked in the PMO

The PMO Leaders said:

PMO Leaders said:
1 2 3

One size doesnt fit all, flexibility is key Balance well between people and process Never be afraid to promote your PMO and your projects

4
5

Act like a business leader but have a continued passion for projects Track the benefits of what you are doing And be a strong leader

The Managers said:

Managers of PMO leaders said:
1
2 3 4 5

Communicate well
Negotiate fairly and strongly Be an agent of change Demonstrate self-managing capability Believe in the business and the projects And know the project world

Recruiters said:
Recruitment Skills: PMO Leaders
Project Management experience Stakeholder Management Skills Strategically Competent Quality Assurance Risk Management Capability Previous PMO experience Communication Skills Self Managing/Organised Change Management/Agent of Change Negotiation Skills

Method/Methodology
0 5 10 Asia 15 USA 20 Europe 25 30 35 40 45 50

Competency Framework

Business

Leadership

Project Management
Technical Personal

PMO Key Competencies

Be passionate about projects

Be strong in communication

Negotiate well

Business

Leadership
Dont be afraid to be unique

Project Management
Technical Personal

Be enthusiastic about leading change

It is your PMO...
Don't let anyone tell you that you have to be a certain way. Be unique. Be what you feel you need to be

The Future of PMOs

Peter Taylor www.leadingsuccessfulpmos.com

Consistency
The best PMOs have consistent, repeatable PM practices across the enterprise. All projects are held to the same standards and requirements for success. They have also eliminated redundant, bureaucratic PM practices that have slowed down projects.

Consistency
The best PMOs have the most experienced PMs in place and have a program underway to recruit the best PMs, develop their existing PMs into the best and to maintain this level of quality and experience.

Transparency
The best PMOs have clear visibility into the progress and cost of all projects. They also know exactly how resources are being used. They openly share this information to all the appropriate stakeholders throughout the enterprise.

Flexibility
The best PMOs adapt to the enterprise's strategic expectations and know how to operate effectively within the corporate structure and culture. And they are not rigid in their own structure and focus in order to adapt and adopt quickly.

Educational
The best PMOs sponsor training and facilitate communities of practice to promote PM best practices in their organizations. Such communities of practice provide PMs with a forum to share their knowledge and share experiences.

Methodology
The best PMOs are the custodians of a dynamic framework of method to assist PMs in the delivery of projects. This includes not only process but also templates and guidance.

Assurance
The best PMOs ensure that quality assurance actually delivers quality.

Future Progress
1. PMO leaders will continue to build better relationships with executive management 2. Improvements in performance measurement will make it possible for PMOs to more accurately measure project health 3. As PMO leaders strive to define their organizations role, they will move to a menu of PMO features and capabilities

The Case Study

Peter Taylor www.leadingsuccessfulpmos.com

Siemens
Siemens 80 billion euro

Siemens
Industry Automation 38 billion euro

Siemens
PLM Software 1 billion euro

Siemens

Me

The Projects

Why a PMO?
300 360 115 13

The PMO 5 Ps
People
Recruitment Profiles Training Induction Certification Assessment Team Building

Process
Methodology Certification Program Quality Assurance Assessment Authority

Performance
Project Profiling Project Reporting Dashboard KPIs Scorecard Funding ROI Escalation

Promotion
Internal Communications External Communications Marketing Success Stories

PMIS
PM Information Systems

2007 Achievements
PM Maturity Assessment Survey of PMs Training/Experience/ Certification Survey of PMS Top PM Project Issues PM Competency Development Framework (PMCDF) defined PM Training

Baselining Activities

PM Training Plans

Action Dashboard for Top PM Issue Resolving Actions/Initiatives Project Reporting Improvements Continuous developments Pipeline and Live Projects Project Audits Project Support and Mentoring PMI Standards Adopted

Bring out your dead Project Issue Assessment completed

Practice Strategy defined

PM@Siemens Interfacing with PM@A&D Council PLM VDM Training development PLM VDM Training

PLM VDM Development Support PM Virtual Practice formed

Regular Communication in place PM Newsletters (weekly) PM Calls PM Leaders meetings Ad Hoc AppShare/Training sessions

2007/2008 Achievements
Project Visibility HealthChecks (PMO) Retrospectives (PMO) Methodology training/adoption Certification (PMP) Red project movement Fixed Price projects (LoA)

EMEA PMO 2008/2009

Self Sufficiency
Methodology HealthChecks Retrospectives

Certification (PMP & Siemens) Program Management Project Reporting and Escalation Go Green Compliance

Measuring the impact

We targeted
Project Health Improvements Project Management Issues

Project Red Status

30.0%

Measuring the impact

2007-2010

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

Schedule

Margin
2007

Resources
2008 2009 2010

Product

Overall

53

Measuring the impact

2007-2010

54

EMEA PMO
Pre-Project
Project Acquisition
-Selling Project Management - Large bid support

Project Delivery
Project Delivery - Healthchecks (training/delivery) - Retrospectives (training/delivery) - Lessons Learned - Governance - Control - Project Closure - Success Stories Project Reporting - Dashboard (content) - Top 5 projects - FP Reports - myPMO - NCC

Project De-Risking
- LoA - SOW reviews and approval - PLM VDM (updates and training) - PLM VDM (adherence)

EMEA PMO
Pre-Project
Project Acquisition
-Selling Project Management - Large bid support

Project Delivery
Project Delivery - Healthchecks (training/delivery) - Retrospectives (training/delivery) - Lessons Learned - Governance - Control - Project Closure - Success Stories Project Reporting - Dashboard (content) - Top 5 projects - FP Reports - myPMO - NCC

Project De-Risking
- LoA - SOW reviews and approval - PLM VDM (updates and training) - PLM VDM (adherence)

The C Level Challenge

Negative
Failed projects waste an organizations money: for every US$1 billion spent on a failed project, US$135 million is lost forever unrecoverable

PMIs Pulse of the Profession 2013

Positive
The progressive development of the organisations project management approach, methodology, strategy and decision-making process are dependent on having a dedicated entity for project management

2012 KPMG report - Business Unusual: Managing projects as usual

Danger
55% of respondents reported that the value of their PMO was questioned by key stakeholders and inevitably some of these questions were translated in to cancellation of the PMO

ESI report 2012: The State of the Project Management Office: On the Road to the Next Generation

The Issues

Maturity

Knowledge

Awareness

Experience

Skills

The Critical role of PMOs in a global organisation

3 GOOD IDEAS

Ideas

Ideas
Don't let anyone tell you that you have to be a certain way. Be unique. Be what you feel you need to be

www.leadingsuccessfulpmos.com

The PMO journey

Motivation and Understanding
Keynote Leading Successful PMOs motivational session Workshop Your PMO challenges revealed

Investigation and Guidance

Discovery process to uncover your PMOs key challenges Detailed Report with PMO roadmap defined

Coaching and Mentoring

Coaching of PMO leader Mentoring of project team

Peter Taylor www.leadingsuccessfulpmos.com peter.b.taylor@btinternet.com Twitter: @thelazypm