selling pmo to your organization pmi-mn breakfast series september 14, 2004
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Selling PMO to Your Organization
PMI-MN Breakfast Series
September 14, 2004
September 14, 2004
Selling PMO to Your Organization 2
Agenda
Abstract & Overview
Sales Objectives
Customer and Functional Landscape
Sales Strategies
Assessing your progress – and your success
Poll results
Q & A
September 14, 2004
Selling PMO to Your Organization 3
Abstract
Many organizations today face ever-present pressure for short term tangible results.
PMOs (like other process functions) find it increasingly difficult to obtain funding.
PMOs offer the promise for improved project quality, consistency and visibility, which in turn permits timely and confident decisions making.
Justifying PMOs must go beyond intuitive or common sense arguments - value must be demonstrated and measured (e.g. quality, timeliness, costs)
September 14, 2004
Selling PMO to Your Organization 4
Selling the PMO – an Overview
Process and efficiency areas must present and justify their operations in terms valued by the organization Contributions to bottom line should be more direct Value propositions need to be succinct and measurable,
in spite of limited resources to provide metrics or prove value
Justifications must tie directly to desired results of key sponsors and management
September 14, 2004
Selling PMO to Your Organization 5
Selling the PMO – An Overview
PMOs must find a way to contribute to the company in terms which are Measurable Understood by management Aligned with stated corporate strategies
PMOs must be able to contribute For regular, expected activities For unscheduled, emergency situations
September 14, 2004
Selling PMO to Your Organization 6
PMO Sales Objectives
Value measured in contribution to other critical objectives. Examples: Reduction of administrative time Swifter communication of actionable issues Improved satisfaction Consistency of project execution Improvement in projects’ ‘success criteria’
Demonstrate value regularly and visibly Risk: Promoting value without over promising the benefits and results
September 14, 2004
Selling PMO to Your Organization 7
PMO Defined
What does the ‘P’ mean? Project Management Office Program Management Office Portfolio Management Office
The type of PMO desired impacts the strategy on how to sell the PMO
September 14, 2004
Selling PMO to Your Organization 8
PMO Customer Landscape
Operational
Strategic
Executives
Executives
Sponsors
Sponsors
OwnersOwners
PMOPMO
Project Team
Project Team
Support & Maintenanc
e
Support & Maintenanc
e
PSOs*PSOs*
* Project Support Organization
September 14, 2004
Selling PMO to Your Organization 9
PMO Function Landscape
PlanningPrioritization & alignment Delivery and executionMentoringReporting and visibility
Monitoring and/or trackingQuality assuranceRisk management Issue resolutionGovernanceTools, best practices
Examples
September 14, 2004
Selling PMO to Your Organization 10
Value Category -->
To Whom Pla
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Del
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Tool
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est p
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Rep
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Qua
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assu
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Issu
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Executives X X XSponsors X X X X XOwners X X XUsers/ConsumersProject Team X X X X XPMO X X XPSOs X X XSupport & Maintenance X X
Customer/Function Alignment
September 14, 2004
Selling PMO to Your Organization 11
Selling Strategies
Planning Facilitates communication Oversees consistency completeness of content A central point for requests Consolidates and coordinates data into a cohesive
presentation Interaction across organization provides broader sense of
‘what is going on’
Transmits a common message, reduces confusion, simplifies & improves consistency, improves communications, enables development of portfolio management
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 12
Selling Strategies
Prioritization & Alignment Confirms portfolio allocations Facilitates Demand Management Aligns resources to company objectives Reduces risk of working on too many projects
simultaneously Speeds resource assignments to approved efforts
Organizes and manages future requests, governs resource issues, integrates scheduling, streamlines project workflow
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 13
Selling Strategies
Delivery & Execution Ensures projects are progressing Validates risks and issues Facilities minor problem resolution Mentors and aids project team in execution Project rescues
Improves compliance, assists lower skilled staff to become successful, contributes to project performance, reduces risk to projects
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 14
Selling Strategies
Mentoring Delivers directed education with immediate application Promotes Project Management principles and practices Provides training on roles and responsibilities Assists in use of tools and templates Communicates topics using a common language
Improves consistency of effort, contributes to professional development and project performance, promotes continuous process improvement
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 15
Selling Strategies
Reporting and visibility Consolidates performance and health into a common
format Early identification of trends and patterns Uses high impact vehicles (dashboards, etc) for all
projects Financial management
Clarifies communications, improves compliance, helps focus on key objectives, targets situations demanding attention, continues to aligns what’s important to decision makers and the project objectives
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 16
Selling Strategies
Project Monitoring and Tracking Independent evaluation of performance Confirms where improvements have been made and
future opportunities exist (lessons learned) Determines project earned value or ROI Supports Change Management practices
Provide independent assessment of progress, uncovers risks and issues, builds consistency in project control and integration , promotes reliable and credible expectations
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 17
Selling Strategies
Quality assurance Increases focus on ‘doing the right things’ Increases quality of ‘doing things right’ Reviews artifacts objectively Project Audits
Facilitates project execution, improves consistent controls and ensures all the proper processes are followed
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 18
Selling Strategies
Issue & Risk Management Assists stakeholders in driving open issues to closure Provides a framework to identifying risk Houses abatement and mitigation techniques Impartial assessment of projects
Helps keep projects on track; anticipates and deals with problems proactively, minimizes collateral damage of project problems on other work and the company
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 19
Selling Strategies
Governance Educates stakeholders on the roles and responsibilities Constructs and advises oversight groups for projects
and programs Referees conflicts/disputes within and across projects Escalates major situations to executive management
Brings clarity to project ownership, removes obstacles to project success
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 20
Selling Strategies
Tools and Best Practices Support for implemented tools Improves Project Management and Methodology
Maturity Delivers best practices to all PM practitioners Promotes common language to reduce
misunderstanding Maintains KM repository document libraries
Improves consistency, simplifies process workflows, contributes to project performance, promotes continuous process improvement
Features / BenefitsFeatures / Benefits
September 14, 2004
Selling PMO to Your Organization 21
Strategy Assessment
Contract with sponsors to achieve results with
explicit success criteria
Define success metrics and timeframe
Communicate regularly Both status and successes
Reset expectations based on strategic changes
September 14, 2004
Selling PMO to Your Organization 22
Local Survey Results
Survey distributed to recipients on on-line
PMI-MN newsletter
Survey period August 2-13
Members asked to forward to their PMOs
91 respondents
September 14, 2004
Selling PMO to Your Organization 23
Local Survey Results
Distribution of PMOs (86 responses)Distribution of PMOs
71%
17%
7%10%2%
2%
1%
Project Program Portfolio
Project & Portfolio Project & Program All 3
September 14, 2004
Selling PMO to Your Organization 24
Local Survey Results
Scope of PMOs (88 respondents)Scope of PMOs
38%5%
19%
38%
Enterprise Divisional / Local Both Other
September 14, 2004
Selling PMO to Your Organization 25
Local Survey Results
Age of PMO (84 respondents)Age of PMO as of 2004
7%
24%
24%7%
2%
6%
5%
25%
Less than 1 year
1 - 3 years
3 - 5 years
5 - 10 years
10 - 15 years
15 + years
Unknown/Other
None
September 14, 2004
Selling PMO to Your Organization 26
Local Survey Results
What function(s) does your PMO perform (86 respondents)?What functions does the PMO perform?
0
10
20
30
40
50
60
70
80
Rep
ort
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and
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Qu
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Oth
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September 14, 2004
Selling PMO to Your Organization 27
Questions
September 14, 2004
Selling PMO to Your Organization 28
ReferencesGeneral
PMFORUM www.pmforum.org Project Management Institute www.pmi.org PMI’s Knowledge & Wisdom Center - Pros and Cons of Project Offices
https://secure.pmi.org/memberapp/code/premium_content/kwc/KWCtopic_pmo.asp Center for Business Practices Project Management Resources http://www.cbponline.com/ gantthead.com http://www.gantthead.com Max’s http://www.maxwideman.com PMO USA http://www.pmousa.com PM Solutions http://www.pmsolutions.com ProjectConnections.com www.ProjectConnections.com Projects @ Work http://www.projectsatwork.com International Institute for learning, http://www.iil.com/free_resources/articles.asp Optimizec(IW) www.optimizemag.com CIO www.cio.com Computerworld (IDG) www.computerworld.com Project Magazine http://www.projectmagazine.com
September 14, 2004
Selling PMO to Your Organization 29
ReferencesPMO Justification
Dinsmore, Paul C. Sixteen reasons not to implement a project office, PM Network 2002. February
Kerzner, Harold, Strategic planning for a project office, 2003 Project Management Journal 2003. June;
Lipper, Stan, An effective approach to establish a Program Management Office, 2003 Proceedings of the PMI Global Congress 2003 - N American
Kendall, Gerald I. And Rollins, Steve, How to Get Value Out of a Project Management Office (PMO), IIL, November 2002
Mullaly, Mark E., Making the Case For a PMO: Building Your Presentation, gantthead.com August 4, 2003
Mullaly, Mark E., PMP, Project Management: A New Definition, gantthead.com July 23, 2003 PMI® Project Management Software Survey. Newtown Square, PA: Project Management
Institute. 1999. Santosus, Megan, Project Management Office Discipline: Why You Need a Project
Management Office, CIO Magazine July 1, 2003 Ware, Lorraine Cosgrove, Best Practices for Project Management Offices, CIO Magazine
July 02, 2003
September 14, 2004
Selling PMO to Your Organization 30
ReferencesPMO Definitions Archibald, Russell D, Project Management State of the Art – 2004 Archibald, Russell D, What CEOs Must Demand To Compete and Collaborate in
2005 Archibald, Russell D., and Vladimir I. Voropaev, Commonalities and Differences in
Project Management Around the World – A Survey of Project Categories and Life Cycle Models. Proceedings of the 17th IPMA World Congress on Project Management
Crawford, Lynn, J. Brian Hobbs, and J. Rodney Turner, Matching People, Projects, Processes, and Organizations’ Proceedings of the Project Management Institute Annual Seminars & Symposium, Oct. 3-10, 2002.
Bullock, James, The Top 10 Ways Software Projects are Different. http://www.pmforum.org/pmwt03/papers03-09.htm .
Dye, Lowell D., and James S. Pennypacker, Project Portfolio Managing and Managing Multiple Projects: Two Sides of the Same Coin?” Proceedings of the 2000 PMI Seminars & Symposium.
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