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Group 6

Project Governance Models and Program Management Office (PMO)

Sharad NirwalShubham GuptaSumeet Duggal

Sunayan Pal

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What is Project Governance?

Project Governance uses the basic principle of Governance and applies it into both the management of individual projects via Governance structures, and the management of projects at the business level. It defines accountabilities and responsibilities for strategic decision-making across the project.

It will:– Outline the relationships between all internal and external groups involved

in the project – Describe the proper flow of information regarding the project to all

stakeholders – Ensure the appropriate review of issues encountered within each project – Ensure that required approvals and direction for the project is obtained at

each appropriate stage of the project.

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Strategy/PolicyPeopleProcessTechnology

3. Transaction

CompetitionConfidentiality/privacyFee for transactionE-authentication

Self-servicesSkill set changesPortfolio mgmt.Sourcing

Inc. business staff

BPRRelationship mgmt.Online interfacesChannel mgmt.

Legacy sys. linksSecurity

Information access24x7 infrastructureSourcing

Funding stream allocationsAgency identity“Big Browser”

Job structuresRelocation/telecommuting

OrganizationPerformance accountability Multiple-programs skills

Privacy reduces

Integrated servicesChange value chain

New processes/servicesChange relationships(G2G, G2B, G2C, G2E)

New applicationsNew data structures

Time

2. Interaction

SearchableDatabase

Public response/ email

Content mgmt.Increased support staff

Governance

Knowledge mgmt.E-mail best prac.Content mgmt.MetadataData synch.

Search engineE-mail

1. Presence

Publish

Existing

Streamlineprocesses

Web siteMarkup

Trigger

4. Transformation

Cost/Complexity

Define policy and outsource execution

Retain monitoring and control

Outsource service delivery staff

Outsource process execution staff

Outsource customer facing processes

Outsource backend processes

ApplicationsInfrastructure Value

5. Outsourcing

Constituent

Evolve PPP model

PM Governance: Enables to rapidly move up the Evolution Staircase

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Role Project Activities

Project Sponsor provides agreement for funding the project and executive intervention to overcome organizational roadblocks

Steering Committee

guides project progress and provides senior level advice for aspects outside the realm of influence of the Project Manager

Project Manager responsible for ensuring that the project is delivered on time, on scope and on budget

Stakeholder any person or group that has an active interest in the project outcome or process

Business Analyst

analyses an organization’s structures and processes to determine areas for improvement and creates a requirements specification

Team Leader manages a group within the project to achieve a specific block of project activities

Project Administrator responsible for administrative tasks throughout the life of the project

Projects Office coordinates the organization’s project resourcing, high-level reporting, project management coaching and facilitation services

Roles in Project Governance

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Project Governance Model and Structure

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Project Governance Framework

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Project Governance Framework (High Risk)

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• Network Management• Policy Management • Administration

(Telecommunication and computers )

Control and processing of all mission related functionality

Documentation, processes, Audit, Quality, Support system

Project Governance Model

• Internal audit• external audit• Audit

directive• Implementati

on

Process and policies of • identification, • assessment, • prioritization,• monitor, • control

• Primary & secondary stakeholder

• Scope • information (includes

reporting) management

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Project Governance ModelThe Governance model is a management model in which there is interaction; from the top to the bottom (decisions) and from the bottom to the top (information), the 3 levels in a project organization chart are:

1) Steering Committee Level or Sponsor Level2) Project Management Level3) Work Teams Sponsor level

Project ManagementLevel

Work Teams Level

INFO

RM

ATIO

N

DE

CISIO

NS

The work meetings of each governance level are the vehicle that defines the dynamic of each governance level:

a) the participantsb) the objective of the work meetingsc) the frequency of such meetingsd) the agenda that they should deal with.

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Steering Committee Level• Participants (steering committee composition: CIO, Top manager :functional area,

consulting firm if any, Internal auditing manager)

• Governance Level objectives (ensure the correct course of the project and to make the necessary decisions)

• Meeting Frequency

• Agenda– General Plan of the Project. Current state (Understand current state & review milestone

achieve)– Status of the Project Risk Matrix (Identifies situations that may affect the course of the project,

anticipate and manage risk)– Issues that require attention ( Subjects which require special attention, critical issues, Early

escalation)– Project Budget Status ( Total budget, incurred budget, the remainder budget required and

revision if required)– An accurate presentation (of design or criterion adopted by the project)

Project Governance Dynamics

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Project Governance DynamicsProject Management Level

• Participants ( Project manager functional, IT )• Governance Level objectives (Day to day management, roles and responsibility ) • Meeting Frequency • Agenda

―Opening (The Project Management is in charge of it) (inform participant about the decision adopted by steering committee and event occurring in organization)

―Detailed monitoring of the project work plan (PMO and respective team, potential deviation identified and different action re carried)

― Issues log status ( PMO involvement)― Issues that require attention ( Subjects which require special attention, critical issues, Early

escalation)

Work Teams Level• Participants• Governance Level objectives ( understand the work, deepen the knowledge ,recognize

situation that require adoption of decision, motivate the team ) • Meeting Frequency • Agenda

―Project Management news (Share the project news )― Issues that require attention (Analysis of subject that required the action of project management )

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A Governance Model for Incremental, Concurrent, or Agile ProjectsSystem Structure

Applications

Service components

Specific different

functionality, data

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Intended Strategies

Agile project teams measure progress not according to how many requirements have been gathered, but by how much running functionality has been designed, programmed, and integrated (running tested features, or RTF )

Fig: Burn-Up Chart ( Running tested feature)

Agile burn-up charts are very similar to traditional earned-value charts

Fig: Target Progress Markers

The vertical tick-marks show 10 percent units of completed RTF from left to right (100 percent complete at the right). The triangle milestone markers show the amount of RTF the team targets to have completed and integrated at each IR (Internal releases) milestone.

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Collecting the InformationGathering the Estimates

To capture the of what for tracking, we need three pieces of information:

1. What is the unit of accomplishment? often consists of use cases2. About how many units do you expect to create?3. Confidence level on the estimate

Gathering the StatusTo tag the timeline, we need to give each iteration or planning window a milestone number such as an IR completed then followed by iteration completed.

After iterations, the teams send in their RTF numbers, which get rolled up into a summary spreadsheet at any level of granularity desired.

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The Status Report Packet

A good summary page of the package put in front of the steering committee. That package also needs detail pages for the separate subprojects.

This detail page has three sections:

• A status/targeted/deferred and risk snapshot for each section of work within the component.

• A commentary, including surprises and lessons learned during the previous period.

• Cost roll-up information.

1

3

2

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PROGRAM MANAGEMENT OFFICE

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What is a Mutual Fund? A mutual fund is an open ended investment company that offers its investors the

benefits of portfolio diversification, provides greater safety and reduces volatility by professional management.

Program Management Office: Managing a portfolio of projects within the enterprise of a company. Manage how to spend the money on different projects Manage the volatility of successful and failed projects Professional Managers run a PMO (understand how projects impact the

strategic directions of the company)

“A PMO is an organizational unit to centralize and coordinate the management of projects under its domain” – PMBOK Guide 3rd Edition

What is a Program Management Office (PMO) …

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Background on the PMO

What is a PMO? – there are many acceptable definitions– Project/Program Management Office– Portfolio Management Office

PMOs are positioned on a continuum between– Facilitating– Controlling

Purpose and scope of the PMO– Improve the practice and results of project management– Department or group that defines and maintains the standards of process,

generally related to project management, within the organization. – Strives to standardize and introduce economies of repetition in the execution of

projects. – Source of documentation, guidance and metrics on the practice of project

management and execution.

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Most large-scale transformation programs do not succeed, mainly driven by inadequate governance and poor planning

Why Projects / Programs Fail

36%

15%

4%

20%

10%

4%11%

Others

Technical Problems

Problems with Suppliers

Ineffective Project Planning

Poorly Defined or Missing Project

Objectives

Poor Organization and Project

Management Practices

Insufficient Project Personnel Resources

Source: Standish Group International, Survey from 2500 personnel attending project management training

Cancelled

Under Perform

Successful

Large Programs Success Rates

53%

31%

16%

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Some More Facts…

• Enterprise Resource Planning Initiatives

– 51 percent of survey respondents to the 2001 Robbins-Gioia Survey viewed

their ERP implementation as unsuccessful

– However, 56 percent of respondents indicated that their organization had a

PMO in place and of those individuals only 36 percent felt the ERP

implementation was unsuccessful

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Examples of Challenges

Project mission and tasks are poorly defined Lack of a clear process for escalating risks to senior

management Insufficient reporting to support top-management

decisions Ineffective enforcement of project controls and

policies Conflict between line, project managers Projects do not meet deadlines / milestones Lack of standardized reports and reporting

frameworks for all projects - Fragmented project plans

Responsibilities of PMO

Identifies gaps in realization of strategic objectives Escalates current risks and identifies potential risks

earlier Ensures proper communications to relevant

stakeholders Improves monitoring and control of projects Mediates issue resolution Increases efficiency in tracking progress of projects Integrates project plans for all projects –

Standardizes progress reporting

A Program Management Office (PMO) can effectively help address these challenges…

PMO Challenges & Responsibilities

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…and can accelerate progress, increase value, and reduce risk of failure

Traditional Program Management

Value 1: Accelerates Progress

Value ($)

Time

Value 2: Delivers Incremental Value

Failure

Failure

Failure

Efficient Program Management Office

Implementation

Planning & Set-up Assessment

& Concept Development

Validation& Detailing, Planning

Value 3: Reduces Risk of Failure

Value of an Effective & Efficient PMO

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Prepare Tools, Processes & Templates

Develop PMO Master Plan

Nominate and Confirm PMO Team

Set-up PMO

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3

2

4

Conduct First PMO Session

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A PMO would be initiated through five key steps leading to the first PMO session and the kick-off of Implementation

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Preliminary Suggested PMO Structure

Program Sponsorship Oversight and direction Institutional commitment

to program

Project Management Day-to-day project

management IT, Business and Vendor

representatives (full-time involvement)

Program Management Overall responsibility program

implementation and related efforts Conflict resolution Communication with key external

interested parties

Workgroups Technical and operational

business initiative solutions

The PMO must be comprised of senior people to facilitate and govern the implementation process

TENTATIVE

Workgroups

PMO Chairman

Program Management Office

Business OfficersIT OfficersChange Officers

HR Mobilization Changes and Transformation Core Functions Support FunctionsI/T, Vendors, etc.

PMO Administrations

External Advisors Internal Advisors

Sponsor

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PMO Deliverables

Business Case

Stakeholder Analysis

Project Plan Definition

Evaluating Project’s Potential for Outsourcing

Resource Justification

Vendor Qualifications Evaluation

Schedule Risk Assessment

Program Management Office will provide the team with several deliverables…

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Appendix

Initiative Template

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INITIATIVE #X

INITIATIVE DESCRIPTION

INITIATIVE PROJECT SPONSOR

KEY RESOURCES REQUIRED

INPUTS/DEPENDENCIES

COSTS/ INVESTMENTS REQUIRED

INITIATIVE DELIVERABLES

INITIATIVE PROJECT OWNER

KEY STAKEHOLDERS

Initiative Description Template

COSTS/ INVESTMENTS REQUIRED

BENEFITS

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Initiative Implementation Planning Template

Number FTEs

Responsible Party

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10

9

8

7

6

5

4

3

2

8 9 10 11 12 13 14

Activities/ Worksteps

Program Management

1

7654321

WeeksNo.

OutputsNo.

(2)

(1)

Overall Timeline Full Deliverable

Internal/External Consultation

Interim Deliverable

Status Meeting(#) Denotes key deliverables number as aligned with proposal

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Initiative Status Tracking Template

Expected Completion Date

Actual Start Date

Actual Value-AddExpected Value-AddInitiative Name

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Thank You