Setting Up and Sustaining a PMO/PMCOE:

Real Life Experiences

Background• Company A: Small Financial Institution – Information

Technology– PMO of 5 people– Serving 225 people– Revamping Existing Services

• Company B: Large Financial Institution - Information Technology– PMCOE of 15 People– Serving 9 PMOs and 1200 + People– Starting from Scratch

First Steps:What Are Your Primary Business Drivers

• Improve overall consistency and quality of project delivery to your clients

• Realize a return on investment demonstrated through reduced costs, increased revenues and higher overall client satisfaction ratings

Goals

• Enhance project management, project manager and process capability

• Create and sustain a supportive, professional environment within which to grow your project management capability

• Implement methods for evaluating capability and maturity

Areas for Development

• Infrastructure (Processes, Standards and Tools)– Methods, standards and process improvement

(project management, project governance, business planning, portfolio management)

– Project management organization (including roles, responsibilities, processes and procedures, administrative support)

– Knowledge management processes and tools

Areas of Development cont’d

• People– Resource Management – including competencies,

recruiting, retention, internal growth and development, compensation, career paths

– Certification and professionalism – including experience, education and training

– Business development and marketing – selling the vision

– Coaching and mentoring – networking and support– Training– Consulting – including project audit and rescue

Areas of Development cont’d

• Measures (Outcomes)– Benchmarking – industry standards, project

metrics and measurement– Quality Assurance – Project tracking and performance management

(review and assessment, time management system)

Success Criteria

• Ongoing proof you are working on the right projects

• Demonstrable long-term, sustainable improvement in project performance

• Reduced turnover• Better utilization of resources• Processes are flexible, streamlined and repeatable

Conduct an Inventory: What is your current state?

• Capability

• Processes

• Tools

• Stakeholders

• Sponsors

• Resistors

Determine the Issues: At Several Levels

• Time to market pressures• Competitive advantage• Clients dissatisfied• Increased capability needed• Over/under utilization• Poor project performance• Low morale• Project Manager dissatisfaction

The Business Case

• Strategic and Tactical: recognize your project support organization must grow and change and your project environment changes with maturity

• Address:– Cultural and People Change Issues– Sustaining Sponsorship– Resistance: Clients and Partners

• Priorities• Cost (one time and ongoing)

Services Offered, Relationships and Service Level Agreements

• PMCOE to PMOs• PMOs to Project and Line Managers• Define what you are trying to support (hierarchy

of needs)– Individual project management– Multiple project management– Departmental resource management– Organizational resource management– Corporate project portfolio managementDeveloping a Project Management Toolbox, PM Network, October, 2001, Lois M. Mentrup

Recognize the Challenges

• What is a project in your organization?• Where is the resistance?

– Confusion– Lack of Business Support– Turf Wars– Time to Market

• Is your organization ready for this?• Have you managed expectations?

Determine How You Will Deliver

• Programs – Include products and services– Development component– Delivery component

How will you deal with the primary stakeholders?

• Support the Current State (PMs/PMOs) – deal with the human capital FIRST– Identify issues

– Define job profiles

– Clarify project roles and responsibilities

– Provide recruiting support

– Provide coaching and mentoring

– Deliver training

– Support bonusable goals

Getting There: What we did at Company A & B

• Support Current Projects– Project selection, team coaching, performance assessment,

identify and fill gaps (risk assessment and management, RFP process, charter)

Process improvement is not crisis management

• Improve Processes– Governance and portfolio management, coaching, project

management methodology, business planning, project review, program management

• Develop and Implement a Professional Development Program– Sponsors, PMs, Project Leads

Getting There cont’d

• Provide Tools for planning, tracking and resource management– Estimating and budgeting, resource

management, ROI, project status reporting

• Other Opportunities– Quality Assurance, Quality Control, Business

Analysis, Maintenance & Release Management, Configuration & Release Management

Critical Success Factors and Key Result Areas

• Know what you are trying to support• Pick your priorities and do things in the right order• Ensure sustaining sponsorship and management

support are in place• Adopt a marketing mentality (sell, sell, sell and

verify results)• Ensure you provide support to achieve the

capability required to sustain the change• Employ agents of change

Critical Success Factors and Key Result Areas

• Staff Appropriately– PMP

– Experience & Education

– Process knowledge

– Coaching, mentoring, selling and facilitation skills, credibility in the profession, superior contacts

• The resources who set up the PMO/PMCOE may not be the best people to sustain it

Questions?

Karen MacNeil

macneil@procept.ca, tel 416-363-8110

Procept Associates Ltd

125-1234 Kingston Road

Toronto, ON M1N 1P3

www.procept.ca