MS Project Management

Seminar In Project Management

Course Code - 707

Project Management Office

Lecture # 24
 Summary of Previous Lecture
In previous Lecture, we have discussed about
 Project Portfolio Management
 Definition of Portfolio Management
 Need of Project Portfolio Management
 Goals of Project Portfolio Management
 Benefits of Project Portfolio Management
 Limitation of Project Portfolio Management
 Project Portfolio Management Examples
 Literature on Project Portfolio Management
 OMP3
The Project Management Office
 The Project Management Office

Many organizations of all sizes across the globe

have established „Project Manage-ment Offices
(PMOs)“ to serve as an organizational focal
point for the effective and efficient management
of their pro-grammes and projects. PMOs can
perform many important functions and, if con-
ceived and managed properly, are a huge asset
for project-driven organizations.
Internal Project Management Supporting Institutions in
Pakistan

Several public and private-sector organizations

which are operating in Pakistan, as well as the
federal and provincial governments, have
established structures (Project Management
Units, Project Monitoring Units) performing PMO
functions to support projects which they are
undertaking.
 Some Typical Functions of a “Mature” PMO

• Alignment of Projects with Organization’s Mission, Goals, Objectives

• Project Portfolio Management
• Resource Planning and Management
• Generating Awareness in Organization of Project Management
• Standardization of Policies, Processes, Protocolls and Documentaion
• Recruitment and Selection of Project Managers and Team Members
• Training in Project Management and Related Competencies, Skills
• Monitoring, Evaluation and Auditing of Projects
• Maintaining a Project Management Information System
• Conseling and Mentoring of Project Staff
• Benchmarking Best Practices
• Archiving Documentation on Completed Projects
• Refining Project Management Methodologies
• Software Tools
PMO Emerging Due to Concerns

Inability to ensure project investments align

with strategic objectives

Share data across to gain a full view of project,

resource, and financial Information

Lack of established standards and repeatable

processes across the organization

Extending and customizing the solution to fit

growing business needs

7
 Who benefits from PMO?

Executive Stakeholders
Project portfolio management, Resource Managers
reporting Skills-based resource
management

Team Members
Use familiar tools to collaborate,
report status

IT Managers
Project Managers Open, secure
Intuitive project management systems

IT Managers
Team
Executive
Members
Resource
Project Stakeholders
Managers
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 The Journey….

People/0rganizational Change Management and

Concepts of how you will implement & Integrate EPM
Solution into your organization is fundamental to success
Most importantly – You have to align People, Process, and
Tools into a seamless and homogenous solution
The Tools should compliment the Process
The Process should compliment the Tools
The Tools and Process need to support the People

You can reach your Destination in this journey

through Strong
Project Management Office (PMO)
 What is a PMO?
A Project Management Office (PMO) is an organizational
unit designed to coordinate the management of projects
within its domain.
It may be called a:
• Project Management Office
• Project Support Office
• Program Management Office
• Project Management Group
• Project Management Center of Excellence
• Directorate of Project Management

The PMO strives to standardize and introduce repeatable project delivery

process & and can be a source for documentation, guidance, and metrics
on the practice of project management and execution.
 PMO Goals & Responsibilities

• Facilitate effective project management across all projects & programs

• Project Management Mentoring, consulting & Coaching to Project
Heads/Leads/teams across organization
• Customized projects’ health Report for Management (e.g. project status &
Progress report)
• Software Process & Project Management Templates Development &
Deployment across all organization
• Collect, organize, and integrate project data for the entire organization.
• Centralized Project documents repository for project collaboration.
• Analyze, develop and implement new process as required for departments
improvement
• Monitoring, controlling, Audits (e.g. process, risk, quality) & Tool Selection
• Support Program management & Portfolio management
 Why introduce PMO?

Some typical issues

• Projects are not • Limited understanding
effectively prioritised of resource capacity

• Projects happen without • Lack of control of

authorisation project Schedule

• No definitive list of • Project risks are not

project’s tasks captured and mitigated

• Project benefits are not • Inconsistent

managed or realised approaches

• No visibility of progress • Minimal control of

project documentation
 PMO: Key Processes
Governance
Project Management • Program and project prioritization and risk/cost/value analysis
• Project definition and initiation • Decision-making, including commitment of time, money and resources
• Task planning and execution • Issue resolution
• Project completion and acceptance • Project monitoring and integration

Project Management Office Process Management

• Preliminary Process
assessment/ analysis
Governance • Process improvement
• tracking and variance
review

Project Resource Change Process

Management Management Management Management

Resource Management
• Skill-to-task matching
• Resource gap analysis
• Rresource optimization
Communications Management

Communications Management
• Centralized program and project reporting
mechanisms
• Inter-project communications
• Post-implementation tracking and feedback
Change Management
• Identification and elimination of organizational
barriers to change
• Management of employee resistance to change
• Assurance of effective involvement of, and
communication with, all project and program
constituencies
 PMO Assistance/Support Areas

Project Project
Support Resources
• Project reviews/evaluation - Identification of suitable
• Project initiation/closing Resources for projects
• Assist with troubled projects The Project Management - Management of resources
across projects
Office
Consulting
and Methods Training
Mentoring and
• Knowledge transfer Standards • Provide SE Process trainings
• PM best practices competency • Provide PM T& tools trainings
• Adherence to PM & SE Standards
• Succession planning • Provide Training Materials
• Promote PM & SE Methods
• Accessibility of Methodology

SE = Software Engineering
PM = Project Management
 Types of PMO

Early on in PMO history, the Gartner Group identified three PMO models
as flourishing: Project Repository Model, Project Coach Model &
Enterprise PMO Model

There are Many types of PMO Models defined in various books but PMO may be
categorized in 3 types:

• The Supportive/Reporting PMO (Project Management Office). This is the

most common type of PMO. It doesn't control or direct projects. Instead it
supports projects by offering training, mentoring, administration and
reporting to the stakeholders.
• The Controlling PMO (Project Management Office). Supportive services
may not be enough to put projects back on track. By offering controlling
services (such as project reviews, audits and assessments), the PMO can
influence project delivery.
• The Directive/Enterprise (Project Management Office). The least common,
but sometimes most effective type of PMO, is one that directs projects.
Which type of PMO model is suitable for your Organization?

• If you're implementing a PMO (Project Management

Office) for the first time, then the "Supportive/ Reporting"
model is best. It helps you add value to projects by
offering reporting, training and monitoring services,
without taking on the responsibility for the projects
themselves.
• If you have an established PMO (Project Management
Office) and you want to ensure that projects are
independently assessed, then the "Controlling" model is
best. You can directly influence the success of projects, as
well as implement best practices, standards, and tools.
• If your organization has a set of high risk projects & drives
you business, then usually the "Directive/Enterprise"
model is best.
 Tools for PMO
To set up and run a PMO (Project Management Office), you need three
types of tools.
Templates
Provide your Project Managers with templates to help them complete
project documents faster and more efficiently.
Methodology
Implement a Methodology for managing projects. The methodology
helps guide your projects towards completion.
Software
Use EPM software for the day-to-day effective planning, tracking and
reporting of projects.

Right People Right Data

 PMO
Setup & Implementation Strategy
 Five Steps to Set-up PMO
1
Nominate and
Confirm PMO 1. Nominate and confirm PMO team:
Team Identify, nominate and obtain approval for the PMO leadership from
senior management as identified in PMO organogram
2 2. Setup PMO:
Set-up PMO Determine relevant stakeholders, participants and structure PMO appropriately
Communicate key interested officers’ required involvement and PMO
expectations
3
Prepare Tools,
3. Prepare tools, processes and templates:
Processes & Prepare all required tools, processes and templates
Templates Prepare project reporting, issue management, change management, and
planning and communication management processes

4 4. Develop PMO master plan:

Develop PMO Conduct interviews, meetings, and workshops with key interested
Master Plan stakeholders
Prioritize work initiatives and conduct high-level review of any
dependencies, overlaps, and issues
Consolidate tentative work initiative project plans into a consolidated
5 master plan
Conduct First 5. Conduct first PMO session:
PMO Session Conduct first basic PMO workshop, communicate timing and agenda of first
PMO session to all stake holders
Discuss issues, dependencies, project plan recommendations, role of PM
Going forward
 Implementing a PMO: Basic Stages
Assess current environment: PMO Need Assessment,
Assessment Current Projects Assessment, ROI and Cost Model Assessment

Definition Define Program Management Office (PMO):

PMO Strategy and Mission Document

Commitment Gain Executive Commitment to Build and Maintain PMO

Initiate PMO Project: Governance Process,

Initiation Business Case Development and Sign-off
Plan PMO Implementation: PMO Manual,
Planning PMO Project Plan Sign-off
Build and Implement the PMO: Initiate
Execution / Control Training, Support, PMO Processes

Hand-over to Client, Close Project:

Transition / Shutdown Transition Plan, Project Review

PMO Improvements PMO Maturity Level: Assessment &

improvement
 Implementation Timeline-Estimated

Baby PMO Young PMO Maturing PM) Mature PMO

(initial) (Define) (Managed) (Optimized)

Timeline 0-4 Month 4-8 month 8-12 month 12-16 month

Vision Developing aligning somewhat aligned with fully integrated
(Framework, with Organization Organization
Methodology, policies Strategy
& Templates)
Operations Trial & error - Some planned - Planned - Well defined
approaches activities activities Processes
- Projects of variable - Planned activities
size - Projects, - Projects,
- Basic project programs & programs &
Management portfolio portfolios
methodology in use Management Management

People New Mix of core and new cohesive team high performing
resources team with
established career
path

Metrics Not Used Minimal consistent, focused on

repeatable continuous
methodology in improvement and
use growth
PMO Maturity Model
Adopt a Basic Capability Maturity Model

Level 5 Optimizing: Continuous Improvement

Level 4 Managed: Focus on QA & QC Measures

Level 3 Defined: Process Management Focus

Level 2 Repeatable: Project Management Focus

Level 1 Initial: Ad hoc, informal, hero driven

Careful planning and execution is required

to climb from step to step
 Microsoft EPM Solution -Functional
Overview
User Interface
Microsoft Project and 3rd party
Microsoft apps (LOB, ERP,
Office Project Portfolio
Office CRM, etc.)
Professional Web access

EPM Sub-capabilities

Work Resource Portfolio Team

Management Management Optimization Collaboration

EPM Components
Scheduling Resource Plans Data Warehouse Timesheet Portfolio Analysis

Budgeting Event/Notifications Task Assignment Reporting Portfolio Selection

Platform

Operating Portal/Web Database Analysis Reporting

System
 Successful PMO Using Microsoft EPM
Solution

Project Managers Resource Managers

Senior Management Team Members

Successful PMO- Capacity Planning
Successful PMO- Detailed Planning
Successful PMO - Manage & Track Project Performance
Track Progress

Project Workspaces

Timesheets

Task Assignments Timesheets

Team Members Project Manager

Issues & Risks Mgmt Status Reports

 Portfolio Prioritization
Assess the impact of each project request
Use proven techniques to define and prioritize
against the prioritized business drivers
business drivers
Business Drivers

Projects
Prioritize Business Drivers Impact Assessment

Derive a priority score to evaluate each project Analyze the project portfolio before attempting
request (that is, strategic value, financial value, risk) to make funding decisions

Prioritize Projects Investment Maps

Project Dashboard
 Summary of This Lecture
In this Lecture, we have discussed about
 PMO
 Functions of Mature PMO
 Types of PMO
 Setting Up PMO
 Software Support in PMO
THANK YOU!