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The Program Management OfficeThe Program Management Office

Overview for Piedmont Triad PMI Overview for Piedmont Triad PMI ChapterChapter

8 September 20038 September 2003

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AgendaAgenda

• Why a Program/Project Management Office (PMO)?• What Is a PMO?• Implementing a PMO• Suggestions to Jump Start PMO implementation• Questions & Answers

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– Rank and select important tactical improvement projects through Project Portfolio Management, to ensure your company doesn’t over-commit resources, and instead focuses efforts for the most impact.

– Manage all projects consistently utilizing Best Practices, a critical factor in achieving higher project completion rates.

Why a PMO - The Goals of a PMOWhy a PMO - The Goals of a PMO

– Manage Strategic Change with programs -- coherent groups of projects, each small enough to reliably succeed, but coordinated to achieve well-defined strategic goals.

Strategic Change

Best Practices

Project Portfolio

Management

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Individual Projects

Individual Projects

Enterprise Portfolio

Enterprise Portfolio

Organization Environment

Organization Environment

What is a PMO: Essential Culture ComponentsWhat is a PMO: Essential Culture Components

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What is a PMO: Key ProcessesWhat is a PMO: Key Processes

Program Management OfficeGovernanceGovernance

Communications ManagementCommunications Management

Project Management

Project Management

ResourceManagement

ResourceManagement

Change Management

Change Management

Cost Management

Cost Management

Change Management• Identification and elimination of organizational

barriers to change• Management of employee resistance to change• Assurance of effective involvement of, and

communication with, all project and program constituencies

Cost Management• Preliminary cost/benefit

analysis• Project budgeting• Expenditure tracking and

budget variance review

Communications Management• Centralized program and project reporting

mechanisms• Inter-project communications• Post-implementation tracking and feedback

Governance• Program and project prioritization and risk/cost/value analysis• Decision-making, including commitment of time, money and resources• Issue resolution• Project monitoring and integration

Project Management• Project definition and initiation• Task planning and execution• Project completion and acceptance

Resource Management• Skill-to-task matching• Resource gap analysis and

resolution• Global resource

optimization

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Governance: Project Initiation ProcessGovernance: Project Initiation Process

Example Project Initiation Process

• Use one, simple project request form for all projects– Only authorized individuals can submit project requests (VPs/Senior VPs)– All project requests go directly to the PMO

• PMO evaluates the requests (enterprise architecture & project ranking tools)• Steering Committee approves/disapproves requests – approval authorizes

effort to do detailed planning of the requests (no funding approval at this point)

• Develop detailed cost & schedule estimates for approved projects• Steering Committee reviews estimates and approves/disapproves funding or

pursuit of funds – normal budget & financial processes allocate funds• Project execution begins, and the PMO reports status of funded projects to

the Steering Committee at least monthly

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Governance & the Budget CycleGovernance & the Budget Cycle

Approved through the Annual Budget Cycle

Exceptions - Approved Outside the Budget Cycle

May - September

Review/update 5-year plan; look ahead for new project

ideas, and adjust list based on budget cycle results

October - December

Submit new project requests to the PMO --> IT Steering

Committee --> Approval to do detailed planning with

approved charters (short documents)

January - March

Conduct Project Initiation Workshops and Project Planning Workshops -->

detailed cost and schedule estimates

April

IT Steering Committee reviews detailed project estimates --> submits budget request for new projects with detailed

estimates

- Accelerated process, in some cases 2-4 weeks - Can be disruptive to rest of the project porfolio - May introduce more risk

May - September

Budget review cycle --> approved budget allocated to

projects

Project requests are submitted, evaluated against established criteria and the existing project

portfolio, estimated and approved and funded, or

disapproved

Time Period

Governance Process Highlights

The OCIO PMO conducts ongoing oversight of all

projects, including at least monthly reviews of the

project portfolio with the IT Steering Committee

New Projects Providing Oversight of Approved, Ongoing

Projects

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ProjectSupport

ProjectSupport

• Project reviews/evaluation• Project Start-up/shut down• Assist with troubled projects

Consultingand

Mentoring

Consultingand

Mentoring

• Knowledge transfer• PM best practices competency• Succession planning

Project Management SupportProject Management Support

• Provide PM Instructors • Coordinate PM Training• Provide Training Materials

TrainingTraining

• Identification of PMs for projects

• Certification for PMs

ProjectManager

Resources

ProjectManager

Resources

• Adherence to PM standards• Promote PM Methods• Accessibility of Methodology

Methodsand

Standards

Methodsand

Standards

The Program Management Office

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Resource & Cost ManagementResource & Cost Management

• Automated tools are required to do these functions effectively and efficiently

• The PMO focuses on “projects”, but resource issues cut across operational activities – hence a need to track time on operational tasks. Can create a “project” or “projects” to represent operational work in relation to project work

• PMO provides value-added by recognizing the need for or opportunity to adjust resource allocation between projects

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Communications: Example of Organization & RolesCommunications: Example of Organization & Roles

IndividualRole or PMO

Process OwnedPMO Liaison to the

Following PHHS GroupsSpecial ProjectsNursing Services

Information ServicesStrategic Initiatives

Facilities / EngineeringMedical Director

Internal Audit

Professional & Support Services

Financial Services

Medicine ServicesSurgical Services

Ambulatory Services / COPC / PCHP

Russell Breeding

Nehal Nawab

Eleonore Pieper

Perot Account Executive

Joe Bengfort

Human Resources Women & Children's

Stuart Tozier

PMO Director

Project Management

Resource Management Cost Management

Communications Change Management

Governance

Jan Arny

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Change ManagementChange Management

• This PMO function:– Anticipates organizational change caused by single or multiple projects,

or that will impact projects– Ensures that activities occur to manage that change in a smart way

• Examples– IT disaster recovery: operating units have fewer software applications

and fewer people, so how will they operate in a disaster recovery mode?– Multiple new, inter-dependent and enterprise-wide software applications:

role based training will be needed in addition to application training– Organization Reduction-in-Force (RIF): organizational cost cutting will

impact availability of project resources– Incentives for project managers: are individuals only “graded” on their

operational day jobs? So what encourages them to be successful PM’s?

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Assessment

Definition

Commitment

Initiation

Planning

Execution / Control

Transition / Shutdown

Assess current environment: PMO Maturity Assessment, Current Projects Assessment, ROI and Cost Model Assessment

Define Program Management Office (PMO): PMO Strategy and Mission Document

Gain Executive Commitment to Build and Maintain PMO

Initiate PMO Project: Governance Process, Business Case Development and Sign-off

Plan PMO Implementation: PMO Manual, PMO Project Plan Sign-off

Build and Implement the PMO: Initiate Training, Support, PMO Processes

Hand-over to Client, Close Project: Transition Plan, Project Review

Implementing a PMO: Basic StagesImplementing a PMO: Basic Stages

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Implementing a PMO: Key Implementing a PMO: Key CheckpointsCheckpoints

PMOM01.2PMOM01.2

PMOM01.1PMOM01.1

PMOM01.4PMOM01.4

PMOM01.6PMOM01.6

Conduct PMO Maturity Model Assessment

Conduct Assessment of Current Projects

Outline Strategy and Mission Statement

Client Sign-off on AssessmentAs

se

ss

me

nt

PMOM02.1PMOM02.1

PMOM02.2PMOM02.2

PMOM02.3PMOM02.3

Conduct Assessment of IT Governance Process

Develop PID / Business Case

Client Sign-off on PID / StrategyInit

iati

on

PMOM03.4PMOM03.4

PMOM03.12PMOM03.12

PMOM03.12bPMOM03.12b

Develop PMO Manual

Client Sign-off on PMO ManualPla

nn

ing

PMOM04.2PMOM04.2

PMOM04.3PMOM04.3

PMOM04.4PMOM04.4

PMOM04.6PMOM04.6

PMOM04.7PMOM04.7

PMOM04.8PMOM04.8Tra

ns

itio

n /

Ex

ec

uti

on

Implement Use of PMM / Delivery Methodologies

Create Rolled-up Master Schedule

Conduct PMO RAID Management

Initiate Training Program

Publish Revised PMO Manual

Conduct PPW / Prepare PPW Report

PMOM05.2PMOM05.2 Execute Transition Plan

PMOM04.5PMOM04.5 Create Master Progress Tracking Report

Define Transition Plan

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Implementing a PMO: A Typical LifecycleImplementing a PMO: A Typical Lifecycle

Estimated Timeline

Assessment/Initiation

Planning Transition

2 Months 3 Months 1 Month6 Months

Execution

PMO MaturityModel

Governance Process

Project Planning Workshop

ProjectManagement

Planning

Cost Planning

Plan Execution

Cost ManagementTracking

Monitoring & Controlling

Performance Reporting & Information Distribution

PMO Turn Over

Program Initiation

Workshop

Team Development/Mentoring

Administration of Program Management Office

PMODeliverables

PMO PID/Strategy (Charter)

Administration/Controls Planning

CommunicationsPlanningProject

Assessment

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Implementing a PMO: Resource ConsiderationsImplementing a PMO: Resource Considerations

PMO ProjectCustomer

OrganizationNumber of Projects

Implementation Schedule

People Reources

PMO Assessment

Any Any 4-8 WeeksBusiness Consultant,

Senior PM, PM

Implement Small PMO

Corporate Division or Small

Corporation10-20 12 Months

PMO Director, Senior PM, PM, and 10+ PM's to lead

customer projects **

Implement Medium PMO

Large Corporate Division or

Medium-Sized Corporation

20+ 12+ Months

PMO Director, Business Consultant, 2 Senior PMs, 2 PMs, and 10+ PM's to lead

customer projects **

Implement Large PMO

Large Corporation

40+ 12+ Months

PMO Director, Business Consultant, 3 Senior PMs, 2 PMs, and 20+ PM's to lead

customer projects **

** 10+ or 20+ PM's if the customer does not have them

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Suggestions to Jump Start PMO ImplementationSuggestions to Jump Start PMO Implementation

• Identify the portfolio of projects – seeing the volume of work gets senior leader attention (leaders define the threshold: >80 hours?)

• Begin monthly senior leader governance meetings immediately, refining the process as you go– Operating units need to see someone in charge, to whom they must sell

new project requests– PM’s need to see someone make prioritization decisions

• The PMO Champion (preferably the CEO/COO) directs that:– Projects follow the same methodology (workshops, templates, etc.)– PM’s report weekly and brief to a designated senior leader monthly