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EMT 751 Project Management & Leadership Module 8: The Program Management Office (II) – A
EMT 751 Project Management & Leadership Module 8: The Program Management Office (II) – A

EMT 751 Project Management & Leadership

Module 8:

The Program Management Office (II)

A Potential Career Path From Project Manager

To Portfolio Manager

Wesley J. Howe School of Technology Management

To Portfolio Manager Wesley J. Howe School of Technology Management Summer 2011 - Module 8 For

Summer 2011

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Module 8

For Academic Use Only

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The Program Management Office (II) – Module 8 learning objectives
The Program Management Office (II) – Module 8 learning
objectives
MODULE 8 – THE PROGRAM MANAGEMENT OFFICE (II) A practical roadmap to establishing a PMO
MODULE 8 – THE PROGRAM MANAGEMENT OFFICE (II)
A practical roadmap to establishing a PMO
Establishing a PMO – from vision to staffing
Project Management Office – capability maturity model assessment
Program Management Office – capability maturity model assessment
Integration of Project Management with Portfolio Management
Program and Portfolio Managers – emerging roles and responsibilities
Program and Portfolio Managers – emerging roles and responsibilities Summer 2011 - Module 8 For Academic

Summer 2011

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Module 8

For Academic Use Only

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Establishing a PMO – a practical roadmap
Establishing a PMO – a practical roadmap
VISION Where do we want to be at a specific point in time?
VISION
Where do we want to
be at a specific point in
time?
ASSESSMENT What measures of success will be adopt and how will we know if we
ASSESSMENT
What measures of
success will be adopt
and how will we know
if we get there?
will be adopt and how will we know if we get there? PROCESSES How will we
will be adopt and how will we know if we get there? PROCESSES How will we
PROCESSES How will we get from here to there?
PROCESSES
How will we get from
here to there?
STAFFING How should we be organized and who should be selected?
STAFFING
How should we be
organized and who
should be selected?
How should we be organized and who should be selected? TRAINING Who will benefit from training
How should we be organized and who should be selected? TRAINING Who will benefit from training
TRAINING Who will benefit from training to get us there?
TRAINING
Who will benefit from
training to get us
there?
TRAINING Who will benefit from training to get us there? TOOLING What specific tools do we
TOOLING What specific tools do we need to learn to use?
TOOLING
What specific tools do
we need to learn to
use?
Modified from Perry, 2009
Modified from Perry, 2009
specific tools do we need to learn to use? Modified from Perry, 2009 Summer 2011 -

Summer 2011

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Module 8

For Academic Use Only

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Establishing a PMO – vision (I)
Establishing a PMO – vision (I)
Does the vision include the following in alignment with (a) the business strategy and (b)
Does the vision include the following in alignment with (a) the business strategy
and (b) customer needs and does it have executive sponsorship and support as well
as organizational buy-in and adherence?
A clear statement of who we are and what we intend to become
Clear, multi-generational goals to be pursued
Measurable objectives by which we can be assess our attainment of success
A defined process model
Technology architecture and tools
A facilitative work environment
Metrics by which we can measure organizational progress
Metrics by which we can measure organizational progress
Modified from Perry, 2009
Modified from Perry, 2009
which we can measure organizational progress Modified from Perry, 2009 Summer 2011 - Module 8 For

Summer 2011

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Module 8

For Academic Use Only

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Establishing a PMO – vision (II)
Establishing a PMO – vision (II)
POLICY
POLICY
CRISIS
CRISIS
Establishing a PMO – vision (II) POLICY CRISIS Modified from Perry, 2009 Summer 2011 - Module
Modified from Perry, 2009
Modified from Perry, 2009
a PMO – vision (II) POLICY CRISIS Modified from Perry, 2009 Summer 2011 - Module 8

Summer 2011

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Module 8

For Academic Use Only

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Establishing a PMO – process (I)
Establishing a PMO – process (I)
• A structured, measured set of activities designed to produce a specific output for a
• A structured, measured set of activities designed to produce a
specific output for a customer or market. Implies a strong
emphasis on how work is done within an organization, in
contrast to a product focus’s emphasis on what. A process is
PROCESS
thus a specific ordering of work activities across time and
space, with a beginning and an end, and clearly defined inputs
and outputs: a structure for action. Processes are the
structure by which an organization does what is necessary to
produce value for its customers (Davenport, 1993)
• A body of practices, procedures, and rules used by those who work in a
• A body of practices, procedures, and rules used by those who
work in a discipline or engage in an inquiry; a set of working
methods; a functional framework for doing work
• A system of broad principles or rules from which specific
METHODOLOGY
methods or procedures may be derived to understand
different situations (or solve different problems) within the
scope of a particular discipline. Unlike an algorithm, a
methodology is not a formula but a set of practices
an algorithm, a methodology is not a formula but a set of practices Summer 2011 -

Summer 2011

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Establishing a PMO – process (II) Clearly defined boundaries; Inputs and outputs DEFINABILITY May span
Establishing a PMO – process (II)
Clearly defined boundaries;
Inputs and outputs
DEFINABILITY
May span several
CROSS-
ORDER
Consists of activities
ordered according to their
functions
FUNCTIONALITY
position in time and space
PROCESS
Inculcated within
organizational culture
Recipient of the process
EMBEDDEDNESS
CUSTOMER
outcome(s)
VALUE ADDING
Adds value to the recipient,
either upstream or downstream
Modified from Perry, 2009
Summer 2011
- Module 8
For Academic Use Only
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Establishing a PMO – training
Establishing a PMO – training
• Will it allow for a • Will it be used for community of implementation
• Will it allow for a
• Will it be used for
community of
implementation or
practice?
for certification?
• Will we be able to
train each other?
• Will it enhance my
value to the
organization?
VALUE TO
COMMUNITY
OF PRACTICE
APPLICABILITY
TO CURRENT OR
FUTURE JOB
APPLICABILITY VALUE TO CONTINUOUS IMPROVEMENT TO ORGANIZATION CULTURE • Can elements of the training be
APPLICABILITY
VALUE TO
CONTINUOUS
IMPROVEMENT
TO
ORGANIZATION
CULTURE
• Can elements of the
training be
customized?
• Will the organization
embrace the
knowledge?
• Can the training be
improved on over
time?
• Who will sponsor its
applicability?
Modified from Perry, 2009
Modified from Perry, 2009
• Who will sponsor its applicability? Modified from Perry, 2009 Summer 2011 - Module 8 For

Summer 2011

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Establishing a PMO – tools
Establishing a PMO – tools
• How best can the • What do we need to tools be integrated achieve
• How best can the
• What do we need to
tools be integrated
achieve and at what
into existing and
planned processes?
levels of the
organization do we
need to achieve this?
INTEGRATION
OF TOOLS INTO
PROCESSES
DEFINITION OF
PURPOSE OF
ARCHITECTURE
PUZZLE
CREATION OF APPROPRIATE ACCESS TO TOOLS DEFINITION OF PIECES OF ARCHITECTURE PUZZLE • Who should
CREATION OF
APPROPRIATE
ACCESS TO
TOOLS
DEFINITION OF
PIECES OF
ARCHITECTURE
PUZZLE
• Who should have
access, why, and how
can this be enabled?
• How can we best
achieve this in a fully
integrated manner?
Modified from Perry, 2009
Modified from Perry, 2009
achieve this in a fully integrated manner? Modified from Perry, 2009 Summer 2011 - Module 8

Summer 2011

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Establishing a PMO – staffing (I)
Establishing a PMO – staffing (I)
FUNCTIONAL
FUNCTIONAL
Project Coordination CEO Functional Functional Functional Manager Manager Manager Staff Staff Staff Staff
Project
Coordination
CEO
Functional
Functional
Functional
Manager
Manager
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
PROJECTIZED
PROJECTIZED
Project Coordination CEO Project Project Project Manager Manager Manager Staff Staff Staff Staff Staff Staff
Project
Coordination
CEO
Project
Project
Project
Manager
Manager
Manager
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Staff
Source: Perry, 2009
Source: Perry, 2009
Staff Staff Staff Staff Staff Staff Staff Source: Perry, 2009 Summer 2011 - Module 8 For

Summer 2011

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Establishing a PMO – staffing (II)
Establishing a PMO – staffing (II)
BALANCED MATRIX STRONG MATRIX CEO CEO Functional Functional Functional PMO Functional Functional Functional
BALANCED MATRIX
STRONG MATRIX
CEO
CEO
Functional
Functional
Functional
PMO
Functional
Functional
Functional
Manager
Manager
Manager
Manager
Manager
Manager
Project
Staff
Staff
Staff
Staff
Staff
Staff
Manager
Project
Staff
Staff
Staff
Staff
Staff
Staff
Manager
Project
Staff
Staff
Staff
Staff
Staff
Staff
Manager
Project
Project
Coordination
Coordination
Source: Perry, 2009
Summer 2011
- Module 8
For Academic Use Only
Page 11
Establishing a PMO – sequential organizational build
Establishing a PMO – sequential organizational build
ESTABLISH THE STRATEGIC PMO Create the vision; establish G&Os; develop the plan; mgmt. reviews &
ESTABLISH THE STRATEGIC PMO
Create the vision; establish G&Os; develop the plan;
mgmt. reviews & commitment
EXPAND THE PMO
Expand initial PMO staffing; mgmt. reviews &
commitment; expand the PMO
STAFF THE PMO
Develop initial staffing plan; mgmt. reviews &
commitment; staff the PMO
READY THE PMO
Define PM processes & PMO policies; develop tools
& training plan; mgmt. reviews & commitment
NAME THE PMO MANAGER
Create the vision; establish G&Os; develop the plan;
mgmt. reviews & commitment
Source: Perry, 2009
Source: Perry, 2009
develop the plan; mgmt. reviews & commitment Source: Perry, 2009 Summer 2011 - Module 8 For

Summer 2011

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Establishing a PMO – assessment
Establishing a PMO – assessment
CURRENT STATE ON GAP ANALYSIS AND FUTURE, MULTI-PERIOD EACH CAPABILITY DIMENSION CLOSURE STEPS TO ATTAIN
CURRENT STATE ON
GAP ANALYSIS AND
FUTURE, MULTI-PERIOD
EACH CAPABILITY
DIMENSION
CLOSURE STEPS TO
ATTAIN DESIRED STATE
STATE ON EACH
CAPABILITY DIMENSION
Source: Perry, 2009
Source: Perry, 2009
STATE STATE ON EACH CAPABILITY DIMENSION Source: Perry, 2009 Summer 2011 - Module 8 For Academic

Summer 2011

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Project Management Office (I) – representation of capability maturity levels
Project Management Office (I) – representation of
capability maturity levels
CMM Level 5 OPTIMIZED CMM Level 4 MEASURED CMM Level 3 GOVERNED CMM Level 2
CMM Level 5
OPTIMIZED
CMM Level 4
MEASURED
CMM Level 3
GOVERNED
CMM Level 2
DEFINED
CMM Level 1
INFORMAL
CMM Level 3 GOVERNED CMM Level 2 DEFINED CMM Level 1 INFORMAL Summer 2011 - Module

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Project Management Office (II) – definitions of capability maturity levels
Project Management Office (II) – definitions of capability
maturity levels

CMM Level 4

Effective use of stage gate reviews;

metrics used

consistently for decision-making;

effective Project

prioritization

OPTIMIZED CMM Level 3 Emphasis on Project prioritization; some MEASURED use of stage gate reviews;
OPTIMIZED
CMM Level 3
Emphasis on Project
prioritization; some
MEASURED
use of stage gate
reviews; metrics
used inconsistently
for decision-making
CMM Level 2
Data aggregated and
Project relationships
GOVERNED
established; non-
discretionary Projects
communicated
DEFINED
INFORMAL

CMM Level 1 Collection of data to determine which Projects are active; no delineation of discretionary Projects

CMM Level 5

Emphasis on creation of strategic alternatives, strategic orientation,

and value

maximization against $ and FTEs

strategic orientation, and value maximization against $ and FTEs Summer 2011 - Module 8 For Academic

Summer 2011

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Project Management Office (III) – diagnostic of capability maturity levels along several dimensions (I)
Project Management Office (III) – diagnostic of
capability maturity levels along several dimensions (I)
of capability maturity levels along several dimensions (I) Summer 2011 - Module 8 For Academic Use
of capability maturity levels along several dimensions (I) Summer 2011 - Module 8 For Academic Use

Summer 2011

-

Module 8

For Academic Use Only

Page 16

Project Management Office (III) – diagnostic of capability maturity levels along several dimensions (II)
Project Management Office (III) – diagnostic of
capability maturity levels along several dimensions (II)
of capability maturity levels along several dimensions (II) Summer 2011 - Module 8 For Academic Use
of capability maturity levels along several dimensions (II) Summer 2011 - Module 8 For Academic Use

Summer 2011

-

Module 8

For Academic Use Only

Page 17

Program Management Office (I) – representation of capability maturity levels
Program Management Office (I) – representation of
capability maturity levels
CMM Level 5 COE CMM Level 4 ADVANCED PMO CMM Level 3 STANDARD PMO CMM
CMM Level 5
COE
CMM Level 4
ADVANCED PMO
CMM Level 3
STANDARD PMO
CMM Level 2
BASIC PMO
CMM Level 1
PROJECT
OFFICE
3 STANDARD PMO CMM Level 2 BASIC PMO CMM Level 1 PROJECT OFFICE Summer 2011 -

Summer 2011

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Program Management Office (II) – definitions of capability maturity levels
Program Management Office (II) – definitions of
capability maturity levels
Management Office (II) – definitions of capability maturity levels Summer 2011 - Module 8 For Academic
Management Office (II) – definitions of capability maturity levels Summer 2011 - Module 8 For Academic

Summer 2011

-

Module 8

For Academic Use Only

Page 19

Program Management Office (III) – diagnostic of capability maturity levels along several dimensions
Program Management Office (III) – diagnostic of
capability maturity levels along several dimensions
diagnostic of capability maturity levels along several dimensions Summer 2011 - Module 8 For Academic Use
diagnostic of capability maturity levels along several dimensions Summer 2011 - Module 8 For Academic Use

Summer 2011

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Module 8

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Project Management alignment – with Portfolio Management and Business Cycle processes
Project Management alignment – with Portfolio
Management and Business Cycle processes
PROJECT PORTFOLIO PERFORMANCE OPTIMIZATION CONTINUOUS ONGOING BUSINESS ITERATIVE PORTFOLIO BUSINESS PROJECT
PROJECT
PORTFOLIO
PERFORMANCE
OPTIMIZATION
CONTINUOUS
ONGOING
BUSINESS
ITERATIVE PORTFOLIO
BUSINESS
PROJECT
PROJECTS
STRATEGY
MANAGEMENT PROCESS
CYCLE
MANAGEMENT
PORTFOLIO GATE REALIGNMENT EVALUATION
PORTFOLIO
GATE
REALIGNMENT
EVALUATION
Source: Pennypacker, 2005
Source: Pennypacker, 2005
PORTFOLIO GATE REALIGNMENT EVALUATION Source: Pennypacker, 2005 Summer 2011 - Module 8 For Academic Use Only

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Project Management integration – with Portfolio Management process
Project Management integration – with Portfolio
Management process
PORTFOLIO ANALYSIS
PORTFOLIO
ANALYSIS
PORTFOLIO INVENTORY Opportunity Initiating Assessment
PORTFOLIO
INVENTORY
Opportunity
Initiating
Assessment
PORTFOLIO PLANNING
PORTFOLIO
PLANNING
Planning Executing
Planning
Executing

Controlling

Closing
Closing
PLANNING Planning Executing Controlling Closing PORTFOLIO REVIEW PORTFOLIO 4 TRACKING Source:
PORTFOLIO REVIEW
PORTFOLIO
REVIEW
PORTFOLIO 4 TRACKING
PORTFOLIO
4
TRACKING
Source: Pennypacker, 2005
Source: Pennypacker, 2005
PORTFOLIO REVIEW PORTFOLIO 4 TRACKING Source: Pennypacker, 2005 Summer 2011 - Module 8 For Academic Use

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Project, Program, and Portfolio Management alignment – hierarchy of overlapping competencies
Project, Program, and Portfolio Management alignment
– hierarchy of overlapping competencies
PORTFOLIO MANAGEMENT PROGRAM MANAGEMENT PROJECT MANAGEMENT
PORTFOLIO
MANAGEMENT
PROGRAM
MANAGEMENT
PROJECT
MANAGEMENT
 LEADERSHIP  STRATEGY AND COMMUNICATION  ANALYSIS & PRESENTATION  GOVERNANCE RELATIONSHIPS 
 LEADERSHIP
 STRATEGY AND COMMUNICATION
 ANALYSIS & PRESENTATION
 GOVERNANCE RELATIONSHIPS
 STAKEHOLDER MANAGEMENT
 LEADERSHIP  PEOPLE MANAGEMENT  STRATEGY & COMMUNICATION  STAKEHOLDER MANAGEMENT  SUBJECT MATTER
 LEADERSHIP
 PEOPLE MANAGEMENT
 STRATEGY & COMMUNICATION
 STAKEHOLDER MANAGEMENT
 SUBJECT MATTER EXPERTISE
   KNOWLEDGE MANAGEMENT  STAKEHOLDER MANAGEMENT  SUBJECT MATTER EXPERTISE
KNOWLEDGE MANAGEMENT
 STAKEHOLDER MANAGEMENT
 SUBJECT MATTER EXPERTISE

PEOPLE MANAGEMENT FACILITATION & COMMUNICATION

MATTER EXPERTISE PEOPLE MANAGEMENT FACILITATION & COMMUNICATION Summer 2011 - Module 8 For Academic Use Only
MATTER EXPERTISE PEOPLE MANAGEMENT FACILITATION & COMMUNICATION Summer 2011 - Module 8 For Academic Use Only

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Project Management – generally accepted roles and responsibilities
Project Management – generally accepted roles and
responsibilities
Project Managers possess a mixture of Project Management skills, subject matter expertise, and some leadership
Project Managers possess a mixture of Project Management skills, subject matter
expertise, and some leadership skills
Project Managers are oriented toward generating quality deliverables while satisfying
the needs of the triple constraint
Project Managers generate a Project Plan to conduct detailed planning in order to
manage the progress of their Project(s)
Project Managers help manage metrics – risk, value, cost, time – that are easy to
articulate and measure at the Project level
Project Managers strive to minimize change, risk, and uncertainty
Project Managers usually manage no one; senior Project Managers may manage junior
staff
Success is generally measured by delivering more mature Projects or Products to
specification within the triple constraint
Project Managers usually identify themselves with the progress of the Projects they
manage directly
themselves with the progress of the Projects they manage directly Summer 2011 - Module 8 For

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Program Management – generally accepted but emerging roles and responsibilities
Program Management – generally accepted but
emerging roles and responsibilities
Program Managers possess a mixture of Project Management skills, subject matter expertise, and some leadership
Program Managers possess a mixture of Project Management skills, subject matter
expertise, and some leadership skills
Program Managers are oriented towards the attainment of the Program’s goals in the
context of those of the organization
Program Managers generate a Program Plan to enable Governance decisions that
contribute to sector value in the context of Portfolio goals
Program Managers help manage metrics – risk, value, cost, time – that require
Governance agreement to enable their definition and measurement
Program Managers create Program strategies that incorporate varying levels of change,
risk, and uncertainty
Program Managers usually manage Project Managers
Success is usually measured by enabling effective and efficient Program decision-making
geared toward value creation at the level of the sector
Program Managers usually identify themselves with the progress of the Program(s) they
manage directly and contribution to sector goals
the Program(s) they manage directly and contribution to sector goals Summer 2011 - Module 8 For

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Portfolio Management – continually emerging roles and responsibilities
Portfolio Management – continually emerging roles and
responsibilities
Portfolio Managers possess a blend of Portfolio Management, senior level communication, stakeholder management, and
Portfolio Managers possess a blend of Portfolio Management, senior level
communication, stakeholder management, and leadership skills
Portfolio Managers are oriented toward the ongoing attainment of the organization’s
strategic and financial goals
Portfolio Managers conduct analysis and generate recommendations to enable
Governance decisions that maximize Portfolio value
Portfolio Managers help manage metrics – risk, value, cost, time – that require
Governance agreement to enable their definition and measurement
Portfolio Managers recommend Portfolio strategies that incorporate varying levels of
change, risk, and uncertainty
Portfolio Managers usually manage no one; senior Portfolio Managers may manage
junior staff
Success is usually measured by enabling effective and efficient Portfolio decision-
making geared toward value creation at the level of the enterprise
Portfolio Managers usually identify themselves with the annual value creation of the
Portfolio they help manage indirectly
annual value creation of the Portfolio they help manage indirectly Summer 2011 - Module 8 For

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The Program Management Office (II) – critical success factors
The Program Management Office (II) – critical success
factors
CRITICAL SUCCESS FACTORS Defining the roadmap to establish the PMO The importance of staffing in
CRITICAL SUCCESS FACTORS
Defining the roadmap to establish the PMO
The importance of staffing in establishing a PMO
Conducting a transparent gap analysis at the Project and Program Management
Office levels
Understanding the intersection of organizational Project and Portfolio
Management
Dual roles of the Project champion
The 12 competencies of Project, Program, and Portfolio Managers – a potential
route to career progression
and Portfolio Managers – a potential route to career progression Summer 2011 - Module 8 For

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