The Complete PMO

Chapter 7 - Organization and Structure

Please Note that the following Slide text is derived from the content in The Complete Project Management Handbook by Gerald Hill

PMO Organizational Alignment

The organizational alignment of project managers in the relevant organization: Represents the authority and responsibility conveyed to the PMO to enable them to achieve business objectives. Contributes to PM capability. Represents the influence project managers have on project team members and stakeholders. Contributes to the influence of the PMO regarding project oversight, control, and support activities.

Project Structure
Aligns PMO with project manager, project team members, and business stakeholders by defining their roles and responsibilities to specify project accountability. Establishes PMO structure and organizational alignment. Develops PM alignment within the relevant organization. Prescribes project team member roles and responsibilities. Defines the stakeholders in the PM environment.

Organization and Structure Activities across the PMO Continuum

Project Office Basic PMO Standard PMO Advanced PMO Center of Excellence

Manage the preferred project team structure

Establish essential project roles and relationships y Specify standard roles for project team members y Facilitate internal business unit relationships y Identify project stakeholders

Introduce PM structure

Expand PM and business alignment

Review and analyze project organization and structure y Analyze effectiveness of PM organization y Examine effectiveness of project team structure y Identify capability associated with current structure

y Evaluate PM structure options y Implement preferred project team structure y Implement preferred PMO staffing structure

y Develop PMO organizational alignment y Align project managers with PMO y Manage broader stakeholder alignment and participation

Organization and Structure Activities across the PMO Continuum

The PMO organization and structure function is influenced by organizational culture and established business and operating procedures. Project Office Uses established organizational guidance to align and structure the project team to achieve project objectives. The project office itself represents the first level of organizational alignment and structure above the individual project team member. Mid-range PMO Assumes a progressively more active role in specifying organizational alignment, structure of project managers and project teams, defining relationships between project teams and the PM environment, and expanding the PMO business role and recognition as a business unit. Center of Excellence Analyses the project team structure and alignment to maximize capability in the PM environment.

Organization and Structure Function Model

Set Up PMO Structure

Identify Staff Needs for PMO Functions Introduce PMO Staff Assessment Analyze and Establish PMO Relationships

Establish Project Structure

Specify Project Team and PMO Relationships Define Standard Project Team Structure Define Extended Project Team Alignment

Develop Stakeholder Participation

Define Project Stakeholder Categories Identify Project Stakeholders Prepare Stakeholder Participation Guidance

Set Up PMO Structure

Identify PMO Staff Needs

Although the PMO core staff may be a few senior project managers, staff planning typically strives towards having full-time and part-time administrative, business, and technical staff members. PMO Administrative Staff Responsible for administrative activities that accompany their work in PMO with some fundamental comprehension of PM concepts and practices. Collecting, compiling, and distributing PM documents from project managers for PMO and senior management review. Preparing project performance analyses for PMO and senior management review. Preparing and managing PMO business and technical correspondence. Coordinating and administering training in the PM environment. Performing project schedule management using an automated tool and creating master schedules of all projects for PMO and senior management oversight. Establishing and maintaining the PM library and archives and online project knowledge management system capability. Supporting PMO task force efforts by coordinating, compiling, and producing their materials. Coordinating arrangements and scheduling routine project audits, mentoring services, and project planning support and facilitation.

Identify PMO Staff Needs

PMO Business Staff Consists of the PMO manager, PMO function managers, and other operational leaders in the PMO (may also have business-staff responsibilities).
Managing PMO operations and PMO staff performance. Establishing PMO functionality for oversight, control, and support of PM. Collaborating with business units to integrate business needs, interests, and objectives. Collaborating with technical discipline managers to integrate technical management. Advising executives and senior managers in professional PM practices. Contributing to management of customer and vendor/contractor business relationships. Monitoring and managing project performance. Maintaining and tracking project cost, schedule, and resource utilization.

Identify PMO Staff Needs

PMO Technical Staff - Staff is who develop, implement, and manage professional PM practices, as well as experts in technical disciplines within the relevant organization.
Develop, implement, and manage PM processes and practices. Integrates technical discipline and business processes and practices. Performs PM management and technical audits and reviews. Researches, recommends, and implements PM tools and systems. Develops and implements PM and technical discipline standards. Analyzes and implements improved PM capability solutions. Facilitates project manager and project team activities.

Introduce PMO Staff

The PMO should personally present its staffing plan to senior management and key participants to solicit their support, including the acquisition and assignment of approved resources to complement the PMO staff.

Analyze and Establish PMO Relationships

The PMO becomes a recognized business unit that represents the interests and activities of the PM environment which facilitates relationship development and results from relationship development. Executive mandate and support Establishes the PMO as centralized oversight, control, and support within the PM environment. Business need Facilitates the emergence of the PMO as a business unit with broader responsibility and authority within the PM environment. Distinct business contribution - The PMO facilitates achieving business objectives, improving PM capability, realizing customer satisfaction

Establish Project Structure

Project Team Structure Includes the project manager and project team members, external participants, and relationship with the PMO.

Specify Project Team and PMO Relationship

The nature of PMO / project team alignment with depends on the stage of development along the PMO competency continuum with four alternate relationship alignments emerging. No Alignment of Project Resources - PMO has no apparent influence or control over resources assigned to PM work (smaller PMO operations). Indirect Alignment of Project Managers - PMO develops active working relationships with project managers who are directly aligned with business units. Direct Alignment of Project Managers - Project managers work for the PMO and receive their assignment from them. Direct Alignment of All Project Resources - Project managers and project team members are assigned to the PMO as a component of the PMO staff.

Define Standard Project Team Structure

The PMO evaluates the effectiveness of the current project team structures and recommends the project team structure that fits within the established organizational culture and serves the PM needs and interests of the relevant organization. Functional project team structure - A functional manager in a business unit has primary authority over assignments and management of project resource contributions to the project effort. Matrix project team structure - The project manager has limited authority over project resources aligned with the project manager for purposes of project work. Integrated project team structure - The project manager has primary authority over project resources aligned through a direct and full-time assignment to a project manager or to the PMO.

Define Extended Project Team Alignment

The PMO makes decisions regarding how project participants external to the relevant organization are aligned with the project and with the project manager. Customers - Some project work require ongoing customer involvement in the development and delivery of the project deliverables. Vendors/contractors - Project managers decide on the level of integration of vendor/contractor work with the primary project work plan. Regulatory agents - A regulatory agent can be a prominent participant at critical junctures in the PM life cycle.

Develop Stakeholder Participation

Internal Project Team Stakeholders

Project participants directly involved in conducting and managing the project effort, producing project deliverables, and achieving project objectives. Program Manager - Responsible for oversight of multiple projects, usually a collection of interrelated projects based on similar business interests, technical solutions, or customer base. Project Manager - Conducts PM activities through all phases of the PM life cycle, managing project resources, and achieving project deliverables and objectives. Project Team Member - Performs work to produce project deliverables and complete PM activities delegated by the project manager.
Assistant project manager. Technical leader. Technical staff member. Technical specialist. Professional staff member. Task leader/supervisor. Craft specialist/laborer.

Internal Oversight Stakeholders

Project participants who provide senior level direction and decisions to guide PM toward achieving business interests and objectives. Project Executive Sponsor - Senior manager with the power to authorize project selection, continuation, and termination and project funding. PMO Director PMO head responsible for establishing and conducting PM oversight, control, and support across all projects in the relevant organization. Executive Control Board - Senior managers within the relevant organization that decide on the capability instituted in the PM environment. Technical Advisory Boards Internal groups that decide on technical processes and practices applied in the PM environment.
Product development control board. Technical process control board. Configuration management team. Engineering design committee. Scientific analysis committee. Test and acceptance procedures committee. Construction management board. Manufacturing process control board. Technical achievement advisory council.

Internal-Support Stakeholders
Project participants within the relevant organization that serve as adjunct or part-time project team members. PMO Staff Member - PMO director directs them to implement PMO functionality, develop PM capability, and support project managers/teams to produce project deliverables and accomplish project objectives. Project Resource Manager - Responsible for collaborating with the PMO and project managers to provide qualified project resources. Business Unit Managers - Head business units that routinely provide business support to project managers and the PMO.
New product expert. Human resources manager. Business development manager. Legal adviser/counselor. Procurement/contracts manager.

Customer Stakeholders
Project participants responsible for ensuring that project outcomes fulfill the intended business purpose or need of their organization. Customer Executive - Senior manager in the customer environment with strategic responsibility for project success and authorized project selection and funding. Customer Project Manager - Provides project oversight and control on behalf of the customer's interests and perspectives regarding project success. Customer Project Team Member - Customer representatives that perform technical, business, and PM activities on customer-initiated projects. Customer End Users - Responsible for implementing the project's technical solution in the customer's business environment. Customer Business Manager Responsible for initiating project requests, managing associated project contracts, and approving project deliverables.

Vendor/Contractor Stakeholders
Members of the vendor/contractor organization responsible for ensuring that project outcomes fulfill the offering of the vendor/contractor. Vendor/Contractor Executive - Senior manager in the vendor/contractor organization who holds business responsibility for their product/service offering. Vendor/Contractor Project Manager Leads the vendor/contractor project team in conducting assigned project tasks and achieving the prescribed technical solution to fulfill the vendor/contractor's offer. Vendor/Contractor Project Team Members - Perform technical, business, and PM activities on assigned projects. Vendor/Contractor Business Manager - Vendor/contractor point of contact for project efforts.

Other Project Stakeholders

Regulatory Agents - Perform inspections or examinations within the PM environment to ascertain quality or compliance. Business Partners - Stakeholders with interests in recouping investments associated with project efforts. Industry Partners - Stakeholders with interests in achieving technical and technology solutions that advance industry standards, enlarge markets, or promote associated professional disciplines. Executive Management Team - The highest level of executive management in the relevant organization.