aligning pmo foundations for maximum value
DESCRIPTION
Aligning PMO Foundations for Maximum Value. Presented by: David W Burr, PMP, ITIL. Learning Objectives. Understand key considerations that influence establishing a PMO Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs - PowerPoint PPT PresentationTRANSCRIPT
Part of the “Missing Piece” SeriesPart of the “Missing Piece” SeriesDavid W BurrDavid W Burr [email protected]@comcast.net
Aligning PMO Foundationsfor Maximum ValueAligning PMO Foundationsfor Maximum ValuePresented by: David W Burr, PMP, ITILPresented by: David W Burr, PMP, ITIL
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
2
Learning ObjectivesLearning Objectives
Understand key considerations that influence establishing a PMO
Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs
Identify how the organization’s culture and maturity impact the PMO
Understand the importance of defining and measuring success criteria
Understand key considerations that influence establishing a PMO
Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs
Identify how the organization’s culture and maturity impact the PMO
Understand the importance of defining and measuring success criteria
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
3
Where do we start?Where do we start?
We need a PMO! But why?? Everyone else has one It’s the “Silver Bullet” Air plane magazine article / Symposium
attendance Flavor of the month
Fact finding “2 by 6” (working sessions) Why are we here? (forward looking) Current State (reality) Future State (realistic) What’s in it for me (projected benefits) Success definition
We need a PMO! But why?? Everyone else has one It’s the “Silver Bullet” Air plane magazine article / Symposium
attendance Flavor of the month
Fact finding “2 by 6” (working sessions) Why are we here? (forward looking) Current State (reality) Future State (realistic) What’s in it for me (projected benefits) Success definition
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
4
What factors influence PMO ROI?
What factors influence PMO ROI?
SponsorshipAlignment with the organizationOrganizational positioningOrganizational role of the PMOWhat the PMO owns and influencesChange managementProcess and success definitionRewards and recognition
SponsorshipAlignment with the organizationOrganizational positioningOrganizational role of the PMOWhat the PMO owns and influencesChange managementProcess and success definitionRewards and recognition
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
5
SponsorshipSponsorship
Leadership versus Management Leading means doing the right things Managing means doing things right
Who’s waving the flag Do they have the juice? Leaders need to be seen, heard, unified,
consistent Set 360o expectations and accountability Encourage and support Manage “up” a ½ hour a week Leaders at all levels
Leadership versus Management Leading means doing the right things Managing means doing things right
Who’s waving the flag Do they have the juice? Leaders need to be seen, heard, unified,
consistent Set 360o expectations and accountability Encourage and support Manage “up” a ½ hour a week Leaders at all levels
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
6
PMO Organizational Alignment (1 of
2)
PMO Organizational Alignment (1 of
2)
One or Many?By functional group, discipline, or
silo?Cross Line of Business?Business or IT, Marketing or Sales,
R&D or Manufacturing?Business and IT, etc?
One or Many?By functional group, discipline, or
silo?Cross Line of Business?Business or IT, Marketing or Sales,
R&D or Manufacturing?Business and IT, etc?
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
7
PMO Organizational Alignment (2 of
2)
PMO Organizational Alignment (2 of
2)
Bridging the gap between cross functional PMOsWe’re on the same teamWe want the same resultsWe define success similarlyCollaborate!
Saves timeHelps identify defects … earlierWorks … require it!
Bridging the gap between cross functional PMOsWe’re on the same teamWe want the same resultsWe define success similarlyCollaborate!
Saves timeHelps identify defects … earlierWorks … require it!
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
8
PMO Alignment or Effectiveness (1 of 2)
PMO Alignment or Effectiveness (1 of 2)
Alignment: Theory:
The degree to which the [support] group understands the priorities of the business and expends its resources, pursues projects and provides information consistent with them.1
Practice Support personnel alignment with each subset of
the organization Complexity leading to inefficiency and
ineffectiveness Fragmentation, redundancy, and subscale
operations High Complexity = High Cost
Alignment: Theory:
The degree to which the [support] group understands the priorities of the business and expends its resources, pursues projects and provides information consistent with them.1
Practice Support personnel alignment with each subset of
the organization Complexity leading to inefficiency and
ineffectiveness Fragmentation, redundancy, and subscale
operations High Complexity = High Cost
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
9
PMO Alignment or Effectiveness (2 of 2)
PMO Alignment or Effectiveness (2 of 2)
Effectiveness:Theory:
Getting projects done as specified, on budget, and on schedule
PracticeA very small % of Executives believe
their IT capability is highly effective, that IT ran reliably
Synch up strategies not personnel
Effectiveness:Theory:
Getting projects done as specified, on budget, and on schedule
PracticeA very small % of Executives believe
their IT capability is highly effective, that IT ran reliably
Synch up strategies not personnel
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
10
The Three Levels of a PMOThe Three Levels of a PMO
CEO
Manufac-turing
Business Finance PMO
Main-tenance
R & DPro-
duction
Projects
PMO
Projects
ProjectsProjects ProjectsProjects ProjectsProjects PMOProjects PMO
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
11
The PMO RoleThe PMO Role
Levels of PMO interaction with projectsMonitor
Data collection and reporting of high level status No accountability for delivery execution Observe and evaluate activities
Mentor Guidance and shared accountability First-hand awareness supporting detailed reporting Participation in complex, high risk activities
Manage Full accountability for execution and delivery Complete resource management and direction Comprehensive reporting
Levels of PMO interaction with projectsMonitor
Data collection and reporting of high level status No accountability for delivery execution Observe and evaluate activities
Mentor Guidance and shared accountability First-hand awareness supporting detailed reporting Participation in complex, high risk activities
Manage Full accountability for execution and delivery Complete resource management and direction Comprehensive reporting
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
12
Ownership and Influence (1
of 2)
Ownership and Influence (1
of 2)
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
13
Ownership and Influence (2
of 2)
Ownership and Influence (2
of 2)
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
14
Change Management and Pain
Change Management and Pain
What is the impact of change? Benefits and detriments Business and people Short term and long term
Skills and behaviors Ownership and accountability Everybody wants things to be better, but
nobody wants them to be different The Executive Misunderstanding Truly lead
What is the impact of change? Benefits and detriments Business and people Short term and long term
Skills and behaviors Ownership and accountability Everybody wants things to be better, but
nobody wants them to be different The Executive Misunderstanding Truly lead
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
15
Quiz:What is the most difficult management level to change?A Individual
ContributorsB Middle ManagersC Senior Leaders
Quiz:What is the most difficult management level to change?A Individual
ContributorsB Middle ManagersC Senior Leaders
Change Management QuizChange Management Quiz
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
16
Cultural and Maturity Change
Cultural and Maturity Change
Maturity level: Correlation or DisconnectMaturity level assessments
What is your current culture?Very traditionalBaby BoomerGen X, Y or Z
Get faster slower
Maturity level: Correlation or DisconnectMaturity level assessments
What is your current culture?Very traditionalBaby BoomerGen X, Y or Z
Get faster slower
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
17
Process Improvement Tools
Process Improvement Tools
Stock up your toolbox PMI CMMi
Staged, Continuous, or Both? ITIL Six Sigma Lean Methodologies Policies, procedures, standards, best
practices Simplicity, tailoring and scaling
Don’t be a slave to any one tool Bottom Line - Add value!
Stock up your toolbox PMI CMMi
Staged, Continuous, or Both? ITIL Six Sigma Lean Methodologies Policies, procedures, standards, best
practices Simplicity, tailoring and scaling
Don’t be a slave to any one tool Bottom Line - Add value!
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
18
Process Quality AssuranceProcess Quality Assurance
Don’t expect what you don’t inspect
PMO and your town policeWhat’s happening if PQA is getting
no voluntary feedback or very few questions?
Don’t expect what you don’t inspect
PMO and your town policeWhat’s happening if PQA is getting
no voluntary feedback or very few questions?
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
19
MetricsMetrics
Why measure?What do we measure?Are we ready to measure?The curse of the initial baselineNow that we’ve measured, now
what?
Why measure?What do we measure?Are we ready to measure?The curse of the initial baselineNow that we’ve measured, now
what?
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
20
SuccessSuccess
Aspects of success Technical Behavioral Organizational Financial Market Share Stock Price ROI
How do you reward success? Applaud gallantry but analyze the root
cause Reward the desired behaviors
Aspects of success Technical Behavioral Organizational Financial Market Share Stock Price ROI
How do you reward success? Applaud gallantry but analyze the root
cause Reward the desired behaviors
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
21
Next Steps (1 of 2)Next Steps (1 of 2)
Raise awareness of PMO benefits (marketing)
Define success criteria Gain Executive sponsorship Initiate
Don’t wait for perfection Define reality
E.g. All green projects and estimation Identify and prioritize risks and issues
Uncover their root causes and reprioritize Define measurement process
Raise awareness of PMO benefits (marketing)
Define success criteria Gain Executive sponsorship Initiate
Don’t wait for perfection Define reality
E.g. All green projects and estimation Identify and prioritize risks and issues
Uncover their root causes and reprioritize Define measurement process
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
22
Next Steps (2 of 2)Next Steps (2 of 2)
Plan, Execute, Measure, and Control An owner for every process
With great power comes great responsibility1 Time-box the development and efforts of the
PMO A series of small successes Work expands to meet the time allotted for its completion2
Get faster slowly
Communicate until you’re sick of it, and then …
Gather, analyze, share, and incorporate Lessons Learned
Promote Continuous Process Improvement Celebrate and team build (frequently)
Plan, Execute, Measure, and Control An owner for every process
With great power comes great responsibility1 Time-box the development and efforts of the
PMO A series of small successes Work expands to meet the time allotted for its completion2
Get faster slowly
Communicate until you’re sick of it, and then …
Gather, analyze, share, and incorporate Lessons Learned
Promote Continuous Process Improvement Celebrate and team build (frequently)
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
23
Questions?Questions?
Things that make you say Hmmm??? Initial planning is the most vital part of a project. The
review of most failed projects indicates the disasters were well planned to happen from the start.
The nice thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression
Everyone asks for a strong project manager – when they get one they don't want one
We figure it's more profitable to have 50% overruns than to spend 10% on project management to fix them
Things that make you say Hmmm??? Initial planning is the most vital part of a project. The
review of most failed projects indicates the disasters were well planned to happen from the start.
The nice thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression
Everyone asks for a strong project manager – when they get one they don't want one
We figure it's more profitable to have 50% overruns than to spend 10% on project management to fix them
Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series
24
Thank YouThank You
Aligning PMO Foundations
for Maximum Value
Aligning PMO Foundations
for Maximum ValuePresented by: David W Burr, PMP,
ITILHarbur Consulting
PO Box 546Hebron, Connecticut, USA