Implementing A

Project Management Office (PMO)

Prepared by: Ahmad Hassan

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Overview
 The What and Why of PMO’s
 Starting a PMO
 Types of PMO’s
 PMO Roles and Responsibilities
 Executive Buy-In
 PMO Best Practices
 Sources and Suggested Reading
 Reference Material

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The What and Why of PMO’s

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What Is a PMO Exactly?

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The Project Management Office (PMO)
• A PMO is a centralized organization dedicated to
improving the practice and results of project management.

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PMO Responsibilities

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What Benefits Does a PMO Offer?
The most important service of a PMO is to provide qualified
project managers to an organization…

 PMO’s are/can…  If a PMO is not used…

 Making available qualified  With several projects
project managers under way, project
 Provide support personnel managers are probably not
to assist project learning from one another
managers  PM’s are probably
 Allow project managers to not sharing best
pool their skills and practices
knowledge
 PM’s are not challenged
 Help project managers to to continuously improve
develop professionally their skills
 Recommended for
organizations with many  Project managers can
project managers be overtly influenced by
line managers
 Provide consulting-type
services and products to its  Project managers scattered
constituency across an organization with
no common bond are 7

significantly handicapped
Starting a PMO

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Starting a PMO
FACTS
Executives must deliver in two key areas — ongoing
operational results and improvement efforts.
Functional managers are continuously evaluated by senior
management, peers, and subordinates for their ability to
make things happen quickly.
Many projects involve multiple departments and functional
areas.
Each organizational unit has its own language, its own
standards, its own project management techniques or lack
thereof.
No wonder so many central project management
coordination units have sprung up in the last few years.
Today, there is estimated to be over 50,000 such
organizations in the U.S. alone.
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 Starting a PMO
PMO Requirements:
PMO value must be measurable to become
sustainable.
 If you cannot measure, you cannot control
and if you cannot control, you cannot manage.
 The PMO must be aligned with the interests
and goals of the organization to sustain itself.

• A PMO has responsibility for educating the

organization it serves about its benefits it •The PMO should focus on portfolio
brings to projects management of:
• A PMO must create and track metrics to  Project investments
show the results of its contributions  Resources
• A PMO should survey its customers  Assets
routinely to verify it is adding value
 Strategic objectives

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Types of PMO’s

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Current PMO and Advanced
Models Traditional PMO

Focus mostly on tactical issues

Next Generation PMO

Focus on strategic and cultural issues

Science of project management Art and craft of project management

Views organization as a "complex Views organization as a "complex ecology"

machine"

Emphasis on monitoring and Emphasis on collaboration

control

Provides tools similar to a precise Provides tools similar to a "compass" that

"map" to follow show the direction

Internal process focused Focus on end products, customers and

outcomes

Process driven Business driven

Standard (heavy) methods and Adaptable and flexible (agile) methods and
practices practices

Based on rules; follow rules Based on guiding principles; follow rules

and improvise if needed

Defined, repeatable, managed and Adaptive and innovative practices

optimized practices

Focus on efficiency Focus on effectiveness and innovation

Process leadership Thought leadership

Heavy management and Balanced management, governance and

governance leadership

Table courtesy of J. Duggal, Projectize Group, http://www.projectize.com. 12

What Does a PMO Look
Like?
 Typical starting point for a
PMO can be three project
managers, a team leader, and
five team members (also called
PMO support personnel).

Reporting View of a Small Project Management

Office

 PMO Project Starter Services…

• Provide well-trained and competent project managers to run
key projects.
• Provide project management consulting.
• Review contract proposals from vendors.
• Sponsor project management education.
• Develop, document, and maintain project management best
practices.
• Conduct project culture training.
• Perform project reviews.
• Perform post-project reviews.
• Ensure that new projects apply lessons learned. 13
PMO Models
Early on in PMO history, the Gartner Group identified three
PMO models as flourishing:
• "Project Repository Model”
• "Project Coach Model"
• "Enterprise PMO Model"

There is a fourth model, called the "Deliver

Value Now Model," that should not be
ignored.

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PROJECT REPOSITORY
MODEL
PROJECT REPOSITORY MODEL BENEFITS
PMO serves as a source of  Data gap identification
information on project methodology Incremental risk management control
and standards. as projects initiate and mature in the
Assumes the enterprise has development cycle
embraced a cohesive set of tools for  Bottleneck identification for all
project design, management, and projects
reporting.
"Raising the bar" for delivery
Occurs most often in organizations
"goodness"
that empower distributed, business-
centric project ownership or with weak
central-governance.

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PROJECT COACHING
MODEL
PROJECT COACHING MODEL BENEFITS
Assumes a willingness to share some  Acts as trainer
project management practices across  Consultant or mentor
functions and uses the PMO to Source of information on project
coordinate the communication. processes
Best practices are documented and
Often helps in project setup and post-
shared and project performance is
project reviews
monitored actively.
Results
are used to raise enterprise
performance and train inefficient or
new project managers.

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ENTERPRISE PMO
MODEL
ENTERPRISE PMO MODEL BENEFITS
The most permanent, consolidated, Many firms have since learned that a
organizational model and concentrates consultative approach aimed at
project management within the PMO. increasing project throughput and
The mission of the EPMO implies reducing project durations requires
direct management or oversight of teamwork between the EPMO and the
projects. project teams.
All project managers are staffed The idea of a PMO owning the project

within the shared service and managers has some significant potential
consigned to projects as needed. negative effects.
The EPMO acts as a contracted project The project management expertise and

manager, assessing scope, allocating standards may not filter through to

resources and verifying time, budget, functional areas.
risk, and impact assumptions. When significant portions of the
projects are part of one functional area,
that functional area may not feel as
committed.
"DELIVER VALUE NOW"
MODEL
"DELIVER VALUE NOW" MODEL BENEFITS
 Puts organization goals first. A strong, well-balanced project portfolio
Improvements in PM methodology are that identifies up-to-date project
viewed as a means to an end, and not workload, sponsorship, tactical progress,
the end in itself. health status and current data gaps.
A holistic approach, embracing A monthly "plan and forecast" that

methods, skills and strategy that views identifies portfolio opportunities and
project management as one piece of a threats, top issues and risks, projects
bigger puzzle. over/under budget summary.
Enables consistent motivation for the A project prioritization model for all

entire organization to seek out portfolio projects based on ability to form

accelerated project deliveries. a Governance Board to direct model
A stronger, more balanced project
creation.
Governance Board setup and/or
portfolio and better project
performance. modification enables the force-ranking of
the portfolio of projects.
Project management training, coaching,
and mentoring based on need.

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DETERMINING THE PMO MODEL FOR
YOUR ORGANIZATION
Questions you should ask…
1. Who will initially be the main customers of the PMO?

2. What is the maturity level of the project management

community?

3. How well does the Executive Team work together for the good
of the enterprise?

4. Where is the greatest pain?

5. Will the PMO be able to deal with the intensity of missed

delivery expectations from the executives and all of its
implications?

6. Will the PMO be able to rescue troubled projects critical to the

business? What if it cannot?

7. Will the PMO be funded sufficiently and supported by the

executives to meet the value opportunities and threats? 19
PMO Roles and Responsibilities

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PMO Roles and
Responsibilities
PMO EXECUTIVE

PROJECT PORTFOLIO MANAGER

PROJECT MANAGEMENT MENTOR

PROJECT MANAGEMENT TOOL MENTOR

RESOURCE PORTFOLIO MANAGER

HELP DESK SPECIALISTS

DATA
ADMINISTRATOR

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PMO Services
Overview
 As a PMO begins to define its objectives, it needs to
consider what services it will provide to meet those
objectives.
 It must also assess when in its implementation schedule
it will provide these services.
 The services that are required dictate the various roles
and responsibilities.
 Each service provided will require some level of staff
support.

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PMO
Services
PMO Services

Portfolio Consulting &

Management PMO Services Training Admin./H.R. Archives
Project portfolio Project rescues Methodology Project Informatio
information accounting n
repository
Asset, strategic Project Tools Operations Data integrity and
objectives and acceleration, planning and security
resource assessments forecasting
portfolios , threats and
opportunities,
auditing, risk
management

Executive Project Project Data collection Project document

reporting and management managemen and report
governance processes, tools, t basics distribution library/knowledg
methodologies e management
Prioritizatio Mentoring Certification Asset tracking Lessons learned
n
techniques
Staggering of Help Desk Teamwork Materials and Closed contracts
projects supplies
Strategic Web Advanced Contract and
resource portal/information project change
managemen management managemen managemen
t t t

Analysis Resource Scheduling Metrics,

software bonuses, career
recruiting path, rewards
and recognition
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Custome Customer interface Customer Customer Customer
Executive Buy-In

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Executive Buy-in of The
PMO
Executives will embrace a PMO that dramatically increases the
probability of meeting their goals.

A PMO must deliver on its promise through four major processes:

 Choosing the right project mix — a new way of strategic planning
 Linking the executive team's strategies to current and planned projects
 Managing the project portfolio correctly
Measuring the PMO to tangibly improve project performance relative to
the executives' strategic goals

A PMO must be able to help executives with execution of strategy, as

determined by the project mix and flow, or the PMO will not achieve
sufficient level of value to sustain itself. 25
Executives Embrace a
PMO

If…
CHARACTERISTICS OF A PMO THAT EXECUTIVES WILL
EMBRACE:
 Executives will perceive value if the PMO helps the
executives meet the goals on which they are measured
 It must drive more projects through completion, without
correspondingly increasing resources
 Projects must be completed in drastically shorter times
 The impact of the PMO is clearly felt on both the top and
bottom lines of the organization (even in not-for-profit
organizations)
 Executives and managers throughout the organization feel
that they are getting benefit out of the PMO

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PMO Best Practices

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Elements of An Effective PMO
 The Right People
 The Right Tools
 The Right Data
 AVOIDS: The Wrong Result

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 THE "WRONG" RESULT —
WHY PMO
IMPLEMENTATIONS FAIL…
T h e PMO did not define its value proposition.
 T h e PMO is not perceived as impacting project delivery abilities.
 T h e PMO is seen as a threat — most often too authoritative.
 The PMO does not have buy-in from the senior management.
 T h e PMO is too low in the management reporting.
 Project Management Overhead — the bad PMO acronym.
 The PMO is micromanaging — trying to control every project
directly.

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Some Final Thoughts on starting a PMO…

 In today's economy, more value is needed now.

 Establishing a PMO that brings recognized value in
the first six months of its existence is critical.
 Recommend you go beyond the original models.
 As you plan the PMO implementation, seriously
consider establishing visible value to senior
management from the get-go.
 Go after the low-hanging fruit that helps everyone win
and the PMO will be on its way.
 Avoid being perceived as sitting in the "Ivory Tower
of Project Management Excellence".
 Build a PMO that will "Deliver Value Now."

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Sources &Recommended
Reading

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Sources and Recommended
Reading
Advanced Project Portfolio Management and the PMO: Multiplying ROI
at Warp Speed by Gerald I. Kendall and Steven C. Rollins, J. Ross
Publishing © 2003
 The Enter Prize Organization: Organizing Software Projects for
Accountability and Success by Neal Whitten, Project Management
Institute © 2000
 Improving Your Project Management Skills by Larry Richman,
AMACOM © 2006
 Building Project Management Centers of Excellence by Dennis Bolles,
AMACOM © 2002
 Introduction To Project Management by Kathy Schwalbe, Thomson
Course Technology © 2006
 “In Common” by Bud Baker, Ph.D., PM Network magazine, September
2007
 “Definition Impossible” by Bud Baker, Ph.D., PM Network magazine,
June 2007

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Reference Material

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 Next Steps Overview
I. Executive Summary/Proposal Letter with these sections:
 Business Case
 Scope
 Approach
 Risk
 Cost and Benefits
 Timeline
II. To successfully gain executive buy-in spend an hour with each
functional executive to assess the current environment
III. Executive Presentation (3 hour time slot)
 The problems in managing projects
 The cost of the problems
 The connections between the root problem and the executive
problems
 Simulate one of the problems to show the executives the impact
 The PMO Solution
 Discussion
 Conclusion
 This proposal becomes the formal written document for chartering
the implementation of the PMO as a project.
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PMO Roles and Responsibilities
PMO EXECUTIVE

Required
Role Responsibilities Value Skills When
Leads the PMO charter Measured by Executive This is the
development development and how much oriented first person
of the PMO implementation documented Project hired into the
value Ensuring all PMO value is management PMO.
proposition activities are driving brought to the professional
Leads the bottom line value organization Has the ability
PMO Buy-in and to work well with
strategically involvement of all levels of the
Key to executives organization
gaining  PMO Cross-
organization- staffing functional
wide Approval of monthly experience with
support. forecast and work project
plan report portfolio
 PMO staff retention
management
Consulting
Approval authority
background
on project mgmt.
contracts
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 PMO Roles and Responsibilities
PROJECT PORTFOLIO MANAGER

Required PMO Career

Role Responsibilities Value Skills When Path
Leads and Analyzes the project Same Ability to report Part of PMO
maintains the portfolio and makes measurement bad news the first Executive
development recommendations to as PMO Ability to work group of
of the decision makers executive well with all people
project,  Balances the improvement levels of the hired into
resource, portfolio in ROI in business the
asset and Evaluates and helps project Portfolio PMO
strategic to implement portfolio. management
objective processes to improve experience for
portfolios project flow project portfolios
Reports to > $25 million.
Publishes the
the PMO monthly forecast and
executive work plan report
Financial
Manages the
and what-if development and
analysis. definition of the
prioritization model

Canexecutive
PMO be backup to the 36
 PMO Roles and Responsibilities
PROJECT MANAGEMENT MENTOR

Required PMO Career

Role Responsibilities Value Skills When Path
Supports Provides coaching Same Ability to work Part of PMO
project and mentoring services measurement well with all the first Executive
rescues to the project as PMO levels of group of Project
Works in the management executive business people Portfolio
field community on top Monetarily Consultative in hired into Manager
assisting portfolio-related identified in nature and the
project teams components overcoming duties PMO
Trains Works with project project team Certified
project sponsors and project threats and Project
managers managers to identify opportunities Management
Conducts
project delivery Professional
opportunities and (PMP)
project threats.
assessments Complete

Reports to grasp of PMI

the PMO PMBOK®
executive. fundamentals

 Ability to work
3
in high stress 7
situations
 PMO Roles and Responsibilities
PROJECT MANAGEMENT TOOL MENTOR

Required PMO Career

Role Responsibilities Value Skills When Path
Provides Ensures the integrity Same Expert in Part of Project
technical of all data captured measurement scheduling tools the first Management
leadership, through the supported as PMO Quick learner group of Trainer
coaching and PMO tools executive on software people Project
mentoring Responsible for the Data integrity packages hired into Management
on all PMO competence of all and Ability to work
the Mentor
tool project managers, completeness PMO
well with all
utilization resource managers levels of the
Reports to and team members in business
the Project PMO tools and Complete
Management applications
grasp of PMI
Mentors Helps with project
PMBOK®
rescues in rescheduling fundamentals
work loads in the Ability to work
scheduling tool.
in high stress
situations

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 PMO Roles and Responsibilities
RESOURCE PORTFOLIO MANAGER

Required PMO Career

Role Responsibilities Value Skills When Path
Oversees Full and correct Same Ability to work Part of Project
resource utilization of the measurement as in high stress the Portfolio
portfolio, organization's PMO executive situations with second Manager
including strategic resources Utilization and project team group of
strategic Tracks resource throughput per partners people
resources utilization trends in week of the Strong hired into
Works with alignment with organization's negotiation the
Project portfolio objectives strategic skills. PMO
Portfolio Assists project resources
Manager to management Primary PMO
help balance community in executive
the locating just-in-time measurement: to
portfolios resources. reduce delays
Seeks to caused by
implement unavailable non-
resource strategic
portability resources.

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 PMO Roles and • METHODOLOGY SPECIALIST
Responsibilities

Required Skills PMO Career Path

Role Responsibilities Value When
 Works with  Assesses team's  Same  Strong background in  Part of the  Project
project teams in methodology usage measurement PMI/PMBOK® concepts and second group Management
the application for method as PMO their application of people hired Mentor
of the project compliance and executive  Ability to teach concepts to into the PMO  Trainer
management associative risk  Percentage work teams  Brought in early
 Resource
methodology management for all of project if the work
 Certified as a Project Portfolio
key projects management environm ent
Management Professional Manager
 Works with Project community has very low
(PMP®)
Management Mentor to claiming that project
 Able to work with business
identify and overcome methodology managem ent
obstacles and is worthwhile sponsors and their project maturity
resistance teams in project startups.

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 PMO Roles and Responsibilities

• PROJECT MANAGEMENT TRAINER

Required PMO Career

Role Responsibilities Value Skills When Path
 Works with  Teachproject  Same measurement as  Professional  Part of the second  Methodology
project teams, management basic PMO executive training group of people Specialist
functional units and advanced  Agreed upon financial experience hired into the PMO  Project
and other concepts impact of the training,  Brought in earlier if Management
organizations to signed off by sponsors or the work environme Mentor
provide and functional executives. nt has low project
arrange project managem ent
management maturity
training

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 PMO Roles and Responsibilities
DATA ADMINISTRATOR

Required PMO Career

Role Responsibilities Value Skills When Path
Constructs Ad hoc reporting; Same Ability to Should HelpDesk
the monthly PMO data repository measurement as work in high be part of Specialist
forecast and processing and PMO executive stress the first Methodology
work plan integrity Customer situations with group of Specialist
report Review of portfolio satisfaction with project team people
Document project status information partners hired into
librarian reports and (not data) the PMO
Supports all schedules for data provided.
PMO role completion
players
Provides
primary
support for
the portfolio
manager

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