2. Agenda
• Types PMO and ePMO
• What's the Value of Our PMO?
• PMO’s Challenges?
• MSC PMO 3 Pillars Strategy
• MSC ePMO maturity Roadmap
• PMO Best Practice
• Project Manage R&R
• PMO Value Proposition
3. WHAT IS A PMO
PMO
“An organisational structure that standarised the project-related governance
processes and facilitates the sharing of resource, methodologies, tools and
techniques.”
PMO value is reflected in the achievement of the objectives set out for the
PMO.
•
• Main objectives:
• Lower project delivery costs
• Earlier identification of project issues
• Better leverage and reuse of knowledge
• Higher accuracy of estimates
• Improvement in getting up to speed on new projects
4. ePMo vs. PMO
ePMO
• Making the right investment decisions is only part of the problem. Organisations struggle
with getting effective project participation and performance across the enterprise
• Focusing on reporting enterprise PPM office (REPMO) to provide visibility and actionable
status information to senior management
• Focusing on enterprise PCC to build a project culture to support enterprise wide change
• Focusing on business transformation office (BTO) on change and coordinating the
interdependencies between strategic programs.
• Focusing on enterprise portfolio office (EPO) on providing an exemplary portfolio analysis to
ensure the optimum portfolio is implemented
6. PMs’ in PMO’s
• Makes efficient use of project management skills for improving processes and mentoring
others.
• Establishes a way to standardize project management and execution across the organization.
• The most effective way to share practices and standardize processes is to have all
practitioners in a single team.
• Creates strong relationships with the project managers, and the leadership of their business
units, engendering trust and respect from providing needed results and benefits to their
business.
PMS’ IN PMO
8. What is the Value of our PMO?
The modern PMO provides standardisation, as the foundation, but has evolved to
offer more value to its sponsoring organisation.
It is responsible for:
– benefits tracking;
– expert work planning, estimating & scheduling;
– co-ordinated resource management;
– structured progress tracking/forecasting;
– robust scope management/change control;
– a focus on budget efficiency;
– stakeholder/communication oversight;
– industrialised quality management;
– value-adding risk/issue management;
– comprehensive knowledge/records management; and
– fully-integrated project processes.
This modern PMO enables timely delivery, successfully achieved
scope/quality requirements and targeted budgeting which ultimately results
in the minimisation of delivery risk
9. Why PMO Fail?!
• PMO did not define its value proposition.
• PMO is not perceived as impacting project delivery
abilities.
• PMO is seen as a threat — most often too authoritative.
• PMO does not have buy-in from the senior management.
• PMO is too low in the management reporting.
• Project Management Overhead — the bad PMO
acronym.
• PMO is micromanaging — trying to control every project
directly.
10. What are our Challenges?
A project staffed with uniformly very
low-rated personnel on all capability
and experience factors would require
11 times as much effort to complete
the project as would a project team
with the highest rating in all the above
factors**
In low-performing organisations
PMO staff are much less likely to
have formal project management
qualifications, hands-on-experience
and extensive project management
knowledge*
11. What are the main challenges?
In low-performing organisations
executive sponsorship is
approximately 60% less likely to
have an appreciation of the
strategic value of a PMO
In low-performing organisations
project management performance
(and PMO performance) is not
measured nor is appropriate
accountability for outputs assigned
In low-performing organisations
PMOs face much greater difficulty in
being accepted as a real value-adding
proposition, at all levels of their
organisation, when compared to high-
performers
12. PMO Maturity…
Statistics show that there is still a real issue with project overrun (in terms of
both cost and schedule). The study showed an average overrun of 24% on
original baselined schedule and budget across all completed projects*.
Notes: (1) Model reduces overrun according to defined schedule/cost delivery improvement
from research study outlined in previous slide and (2) cost basis for average Level 1 / Level 3
PMO of approx 2% / 4% of budget respectively** is used.
By deploying a mature PMO the
average project will save in the
region of 12-19% of the total
original budget of the project
14. I - PMO COMPETENCY - Project Capability Centre
A Project Capability centre (PCC), is an approach, structure and road map that aims to foster PPM
maturity, shared skills and shared approached to the overall planning and execution of all MSC
projects (internal and external) as a core capability
16. PMO COMPETENCY - PCC Individual Assessment
Pn = Cn + Hn + In = PCC n
17. PMO COMPETENCY - PCC Individual Assessment
Pn = Cn + Hn + In = PCC n
Certification (Mandatory & Optional) L4
Mandatory
Certification Name
Mandatory
Certification
Level
Type Provider Required Criteria Facilitator Certification
Citified Product
Marketing Manager
(CPMM) 4
Product
Management AIPMM Open to all PMO Online Course Providers Online Exam and certification
PMP 4
Project
Management
Professional PMI
Bachelor Degree and 4500 hours of
managing and working in projects Online Course Providers Designated exam facilitators in major cities
Toastmaster 4
Business &
Leadership Toastmaster Recommended by the ePMO leader Toastmasters Participating in weekly classes
Optional Certification
Name
Optional
Certification
Type Provider Required Criteria Facilitator Certification
Agile Certified Product
Manager (ACPM) 4
Product
Management AIPMM CPMM Certified Online Course Providers Online Exam and certification
Individual Competency Levels
Skill Skill Description Rankings
Level 5
(SPM/SP
DPM
Level 1)
Leadership
* Skilled at managing interpersonal relations to build rapport inside and outside the immediate project team, motivate through leadership, and mentor development of more junior PMs
* Can prioritize trade-offs between on-time, on-scope, on-quality and on-budget delivery
* Can drive PPM process implementation (i.e. progress tracking process to enable better forecasting of resource availability)
* Team leadership skills sufficient to facilitate conflict and issue resolution
1 to 5 4
Planning
* Can determine whether advanced schedule calculations are needed - and can perform them (i.e. determining schedule risk with optimistic, pessimistic and most likely times for tasks
using PERT)
* Can manage above the single-project level (i.e. can determine resource dependencies across multiple projects)
* Working with technical domain experts, can estimate the project's effort from functional requirements skilled at project scheduling, including via automated tools, and can analyze
progress and trade-offs
1 to 5 4
Problem Solving
* Can implement project change process, as appropriate for scope control and change processes, and debate effectively for or against project changes, as appropriate
* Can work with business management on budgets when priority trade-offs may favor on-time or on-scope delivery over on-budget. 1 to 5 4
Monitoring
* Capable of project risk assessment, monitoring and mitigation planning
* Can apply earned value management (EVM) techniques as needed, from "EVM lite" up to and including ANSI-standard EVM on large contact projects
* Can steer collaboration with contractors on projects (i.e. from RFP evaluation through acceptance), maintaining controls as required, and can successfully confront contractor PMs as
needed
1 to 5 4
Contextual
Experience
* Capable of defining, explaining and maintaining a high-level, longer-term view of projects' relationships with strategy and other initiatives
* Possesses communication and organization skills to implement a formal communications plan
* Can identify the necessary level of project requirements definition for planning and scheduling purposes in collaboration with business/system analysts
1 to 5 4
18. Assessing the Current State
In order to create a benchmark for the current level of operational maturity the organisation would need to
assess the current maturity level.
There two main industry standards to perform the PPM (Project, Program and portfolio Management)
assessment.
1. Gartner’s 5 Level PPM Maturity Model
As per inserted image, Gartner’s PPM Maturity frame work consist of 5 level
of maturity operation.
In order to excel and achieve each level of maturity, the organisation would
need to achieve a certain level of competencies in the
following Core Dimensions:
I. People
II. PPM Practice & Processes
III. Technology
IV. Value & Financial Management
V. Relationship
II - PROJECT EXCELLENCE -Portfolio/Program/Project Maturity Model(PPM)
19. 2. P3M3 (Project, Program, Portfolio Management Maturity Model)
P3M3 is park of P3O methodology. P3O is a framework of Project, Program and
Portfolio Management. It consists of Centre of Excellence (CoE) Model at its core.
The P3M3 model contains three models that enable independent assessment.
There are no interdependencies between the models, so an organization may be
better at programme management than it is at project management, for example.
The models are:
• Portfolio Management (PfM3)
• Programme Management (PgM3)
• Project Management (PjM3).
This enables the organisation to focus one any of the models above. The
assessment of each of the above models are through 5 structure level of maturity.
The five structured levels for maturity are:
Level 1: Awareness of Process
Level 2: Repeatable Process
Level 3: Defined Process
Level 4: Managed Process
Level 5: Optimized Process
PROJECT EXCELLENCE -Portfolio/Program/Project Maturity Model(PPM)
20. PROJECT EXCELLENCE - PMO Program Management (Level 2)
• Leading operational excellence
• Knowledge Management
• Nurture Good Ideas
• Resource expertise
23. ePMo Roadmap
(Maturity Guide)
Core Dimensions Level 1: Reactive Level 2: Emerging Discipline Level 3:Initial Integration
Level 4: Effective
Integration
Level 5: Effective
Innovation
People
Priority projects get appropriate
staffing — everything
else is "first available." Nascent
PPM leader role is primarily
still an individual manager
focus. A few people begin
to work toward stopping
the pain and getting organized.
Project staffing and resource
capacity issues are
addressed to increase
productivity.
The most common
PPM leader role is purveyor
of methodology and
standards.
The concept of disciplined
teams working on projects
is developed. Specialized
PPM leader roles are
formalized.
Career paths are
defined.
A network of PPM leaders
is emerging. Companywide
centers of excellence improve
workload management.
Project assignments
are made based on the
specific skills and capabilities
of the individual.
PPM leaders exist in all
areas of the company.
Accepted specialization
(program, portfolio and
strategy) supports maximum
performance.
PPM Practices &
Processes
All internal processes are
centered on the management of
critical projects. The approach to
process is centered on necessity
and observation of processes
brought in by outside vendors
working on large projects and
programs.
PMOs are established.
Project processes are in
place. Understanding of risk
management is becoming
more common. An approach
to demand management
prioritization is in place.
Programs increasingly are
managed in-house.
Projects are approved on
a portfolio basis. Multiple
processes are in place for
projects and programs.
Related projects are managed
as programs. The
portfolio is actively maintained.
Multiple methods
exist and are used by all
project managers (PMs).
Portfolios exist for all
project work throughout
the enterprise. The enterprise
PMO (EPMO) oversees
strategy execution. Other
PMOs exist as necessary.
Technology
Project scheduling tools and
milestone reporting are
adopted on a project-byproject
basis. There are no
formal management tools.
Project collaboration and
team workspaces are
occasionally supported.
Dashboards (where available)
primarily
aggregate data.
A portfolio tool is in place.
Reporting dashboards
that focus on providing
actionable information are
available.
Technology supports portfolio
modeling. A single
PPM tool is available for
the enterprise in order to
support a project-capable
organization.
Technology supports a robust
knowledge management
system, and resource
management is enabled for
all project resources.
Value & Financial
Management
Projects have budgetary estimates.
Actual costs can be
estimated. There are some
benefit statements.
Project cost and labor hours
are generally captured. An
estimate of benefits is made
for each project.
Value-based estimates are
adopted. Actual costs are
captured and forecast.
Benefits are identified and
related to strategy in the
portfolio.
The portfolio is modeled
and appropriately optimized,
factoring in risk. Project and
program outcomes are tracked
against anticipated value.
Full life cycle costs and benefits
are tracked, with feedback to
improve financial management
and value. Portfolio resources
are consciously allocated
toward innovation.
Relationship
Previous informal relationships
begin to break down,
and it becomes necessary to
formalize roles, including
that of a "stakeholder."
Relationships become difficult,
with organizations focused
on optimizing their processes
and their needs. A focus on the
project starts as the operating
entity begins to emerge. Cross-
functional governance
committees are formed.
Cross-functional groups
are formed, and collaboration
is becoming the norm. Project
and program staff view
themselves as reporting to the
project first and their home
department second.
The organization has adopted
a project-centered view
that supports enterprisewide
teams. No more "us
versus them."
Social responsibility aspects
are considered, as
well as the impact on the
supply chain. Dynamic tension
of explore/exploit is
accepted.
24. ePMo Roadmap
(External)
Core Dimensions Level 2: Emerging Discipline Level 3:Initial Integration Level 4: Effective Integration Level 5: Effective Innovation
People
Project staffing and resource capacity issues are
addressed to increase productivity. The most common
PPMleader role is purveyor of methodology and
standards.
The concept of disciplined teams working on
projects is developed. Specialized
PPMleader roles are formalized.
Career paths are defined.
PPM Practices &
Processes
PMOs are established. Project processes are in
place. Understanding of risk management is becoming
more common. An approach to demand management
prioritization is in place.
Programs increasingly are managed in-house.
Projects are approved on a portfolio basis.
Multiple processes are in place for projects and
programs.
Technology
Project collaboration and team workspaces are
occasionally supported. Dashboards (where available)
primarily aggregate data.
A portfolio tool is in place. Reporting dashboards
that focus on providing actionable information
are available.
Value & Financial
Management
Project cost and labor hours are generally captured. An
estimate of benefits is made for each project.
Value-based estimates are adopted. Actual costs
are captured and forecast. Benefits are
identified and related to strategy in the
portfolio.
Relationship
Relationships become difficult, with organizations
focused on optimizing their processes and their needs.
A focus on the project starts as the operating entity
begins to emerge. Cross-functional governance
committees are formed.
Cross-functional groups are formed, and
collaboration is becoming the norm. Project and
program staff view themselves as reporting to
the project first and their home department
second.
2015-July
TBD
2015-July
25. PMO Best Practice
LEADERSHIP:
– Engaged sponsors and project committees
– The project manager has the power of authority
to move the project through completion.
LEADERSHIP LEADERSHIP LEADERSHIP
LEADERSHIP LEADERSHIP
26. PMO Best Practice
• Project and Business Acumen:
– Unified and consistence approach to managing
projects (Tools & Templates)
– Intelligent reporting and value-add (risk & issues
management)
– Frequency of reports (Weekly region reporting –
monthly regional reporting)
– Facilitate project steering team with the regional
stakeholder.
– Be proactive and anticipate issues/risk (good or bad)
27. PMO Best Practice
• Web Repository:
– Project information easily accessible to management,
stakeholders, and project team.
– Build project risk and issue repository (per region- per
product)
• Stakeholder Management:
– Identification of the “right stakeholders”
– Timely communications with stakeholders throughout
project (stakeholder management)
– Conduct monthly project steering team meetings to
review status, risks, and required project change
controls
28. PMO Best Practice
• Resource Management:
– Clear understanding of task responsibilities (Time & Effort)
– Effective resource tracking system (Timesheet)
– Resources are assigned to your project. You’re ultimately
responsible for project success and as such you set the
mandate.
– Risk Management:
– Early identification of potential risks
– Early identification of how risk impact/probability will be
identified – Risk Matrix
– Continuous review of risks throughout life of project /
program
29. PMO Project Manager
Role
• Leads and maintains
the development of
the project, resource,
asset and strategic
objective portfolios
• Reports to the PMO
Manager
• Financial and what-
if analysis.
Responsibility
• Analyzes the project
portfolio and makes
recommendations to
decision makers
• Balances the
portfolio
• Evaluates and helps
to implement
processes to
improve project flow
• Publishes the
monthly forecast
and work plan
report
• Manages the
development and
definition of the
prioritization model
• Can be backup to
the PMO Mgr
Value
• Consistence
Delivery
• Cost reduction
• Better utilisation
• Higher productivity
• Improvement in
ROI in project
portfolio.
Required Skills
• Ability to report bad
news
• Ability to work well
with all levels of the
business
• Project and Business
Acumen
• Project Management
Certified (Prince 2,
CAPM, PMP, P3O
or OPM3
30. PM R&R
Roles Task Description Key Performance Indicator Duration-Frequency
Project Preparation 1. Project Benchmark
1. Determine and set Project cost benchmark (Budgeted Cost-Total effort)
2. Determine and set project schedule baseline (Duration)
3. Ensure the project baseline is communicated with internal stakeholders
4. Escalate immediately to PMO Mgr and Regional Mgr if the project is forecasted to have less than 30% profit margin
5. Ensure the project baseline is communicated with external customers and agreement has been achieved (Business
Brief)
Project Creation
PMO Template and Process
1. Project Life-cycle
Process and procedure
1. Project Manager to ensure all 12 Project life-cycle Templates are utilised as per project agreement
2. Assess and manage project risk and issues
3. Project Manager to ensure each project document is completed according to the MSC PMO standard
On-Going
Project Management Evaluation
Criteria
1. Internal Stakeholders
1. Provide Regional Project Dashboard
2. Facilitate Bi-Monthly Regional Project committee meeting with regional practice
3. Provide billing report-forecast to PMO-PPM Coordinator
4. Provide Monthly Regional status report to PMO Mgr
5. Provide project Risk and Issue report
Weekly/Bi-Monthly
2. External Stakeholder
Provide Weekly or Bi-Monthly status report to all project stakeholder
Conduct project status meeting as per project brief
Conduct Project Kick-off meeting and utilise Project Kick off Presentation
Conduct Project closure meeting (as per project brief)
Weekly
3. PMO Reporting
1. Maintain and report on Billing milestone by liaising with each project managers
2. Produce Monthly forecasting billing forecast
Provide Regional Billing forecasting
Monthly (on-Going)
Project Management Performance
1. Project Resource
Scheduling
Liaise and secure project resource with tech office and Service transition
Schedule Project resource as per project Budget – by utilising resource breakdown document.
Manage internal and external communication between MSC project team and Channel (Telstra)-External customer
Monitor and report project scope implementation
Approve timesheet and escalate project risk and issue with project sponcer
On-Going
2. Project Cost & Schedule
Baseline Maintenance
1. Project Manager to ensure the original Project Baseline is agreed with customer (channel-External)
2. Project Manager to maintain the original cost and schedule baseline, and ONLY change these baselines if a successful
change request has been completed
3. Project manager to work closely with all project resources and customer to ensure the project is completed
successfully
4. Project Manager to identify RISK and ISSUES at the beginning of the project and establish an effective Risk management
plan.
5. Project Manager to update RISK and ISSUE register throughout the project life-cycle
6. Project Manager to inform and escalate to PMO and Regional Mgr about project Risks and Issues
On-Going
3. Project Stakeholders
Management
Identify project Internal and external Stakeholder
Identify project stakeholder’s expectation
Manage Project stakeholders expectation
On-Going
4. Regional Practice
Project Governance
1. Manage and represent PMO on regional basis
2. Provide ongoing support and update on regional project
3. Maintain an active role in providing risk and issue on regional basis
4. Maintain project profitability as per project baseline agreed on the project start
5. Provide accurate regional project reporting on Budge-cost-schedule
6. Maintain a build a healthy relationship with regional stakeholders
7. Work closely with Regional Mgr to provide support and build an effective operation
8. Maintain and uphold PMO value and 3-pillars strategy
On-Going
31. Initation Phase
“GROUN RULES”
Business Case
-Budget Estimate
-Schedule Estimate
-Collaboration
-kick Off
-Create Project Baseline
(Cost/Schedule/Quality)
-Internal Collaboration
and establish a projcet
duration
-Understand and workout
your projecct
dependenties.
-Outline risks & exclusion
Planning Phase
“Plan Better, Stress Less
later”
Requirement Scoping
-Schedule Costing
-Quality Planning
-Risk Planning
-Project Plan
-Translate your
estimates into
milestone and
deeliverables in form of
project plan
-ensure your proect
baseline is accurate
-Publish the project plan
and share with all
stakeholders
-Update risk
Implementation
Phase
“Coordinate work and
guide RC”
Scope Implementation
-Scope Assessment
-Issue Log
-Change Log
-Status report
-Ensure you only
implement project
plan (scope)
-Perform project
health-check
-Assess risk and issues
- Update risk
-Communicate
effectively
-Anticipate scope
change (risk)
Post-Imp
Phase
“Check the work,
manage variance”
-Performance Report
-Budget Update
-Scope Update
-Risk Register
-Implement Approved
changed
-Conduct
Perfromance check
(Budget-schedule)
-Assess Project risk
and issues
-Proposal soluition for
any verance
-Inform project
stakeholderes of any
issue risk (internal-
externa)
-Anticipate change
and propose a
soluition
Closing Phase
“Close the book, send
report”
Estimating updates
-Performance review
-Improvement Plan
-Lessons Learnt
-Achieving
-Complete
implmentating project
cope
-Assess Risk and issues
and update the
relevent documents
-Provide project
assessment report
-Suggest business
improvement
collaborate with
internal and external
stakeholders and
obtain their feedback
32. PMO Reporting Best Practice
• Best Practice 1: Tailor the Dashboard to the
Audience
• Executives and business management really do not process "FYI" information
well. They need to see at a glance if there is anything they should be worried
about. So, less data is better than more, and pictures are better than words.
Show them the initiatives they care about, plus the ones you want them to
care about
33. PMO Reporting Best Practice
• Best Practice 2: Link Dashboards to
Prioritization Decisions
• Any dashboard must have links back to the prioritization and portfolio
decisions that led to their placement in the active portfolio. Investment type,
priority within the investment type and prioritization score should all be
carried forward, so future decisions on each initiative can be made within the
proper portfolio context.
34. PMO Reporting Best Practice
• Best Practice 3: Lead the Reader to Action
• Many dashboards highlight areas of green status — trumpeting the
good job that the project team and PMO are doing. There are two
problems with this. First, the readers don't care. As one CIO told us,
"Why would I ever look at anything that's green? That's just my people
doing their job." What they are looking for when reading the
dashboard is what to do to ensure success. So, tell them. The
dashboard "owner," PPM leader or PMO has the right and the
responsibility to analyze and provide recommendations for actions that
should be taken, or decisions that need to be made.
35. PMO Reporting Best Practice
• Best Practice 4: Provide "Just Enough"
Information
• For every data element in the dashboard, ask three basic questions about it:
• Why are you requesting this particular data element? What will you do with the
data?
• What have you done to make the data collection and reporting as easy and
practical as possible for those affected?
36. PMO Reporting Best Practice
• Best Practice 5: Include Risk Assessment in the
Dashboard
• There should be some way to assess risk and attach it to all initiatives, even if
it is just an assessment of low, medium or high risk. In the context of
dashboard design, one reason to address risk is to decide what projects to
show and emphasize. Low-risk projects will not be as interesting to executives
as high-risk ones, because there will be less for them to do and less impact if
they don't do anything.
37. Project Management as a Service (PMaas)
Project Phase
(PMBOK)
PMO Project Acceptance Communication
Project Kick Off Meeting
Project Kick Off Meeting minutes
Project Kick Off Presentation
Business Brief
Project Plan
Risk Register
Issue Register
Change Log
Project Schedule
Communication Management Plan
Quality Plan
Stakeholder Register
Implementation Work Implemenation
Weekly Status Report
Weekly Checkpoint Meeting
Project close off Report
Project close off Meeting
Customer Acceptance
Project Lessons Learned
Comprehensive
Initiation
Planning
Controlling and Monitoring
Closure
Project Management Deliverable Lean Intermediate
Establish Stakeholder
expectation
