Effectively Implementing a Project Management Office (PMO)
Project Management Offices have become increasingly popular in the past few years, as companies are more than ever striving to optimize the execution of internal IT processes and projects and drive out unnecessary cost wherever possible. Establishing a PMO is viewed by many organizations as a critical success factor for the alignment of IT strategies with business strategies, for effective project management and for project portfolio reporting to key stakeholders. It is becoming very difficult to gain the required cost efficiencies without a Project Management Office in place.
CIOs, IT Directors, and Project Managers who want to learn more about this important function, as well as those executives who are ready to establish a PMO in their organization. Existing PMO staff should also attend this course and assess the current effectiveness of their PMO activities.
Experience with PMO issues
Problem areas that can be addressed by the implementation of a PMO
SEI CMM for assessments and process improvement
Project Management Maturity Models for assessments and improvement
Organizational structure (functional or matrix)
Internal project Management practices
Identifying risk areas in establishing a PMO
Funding and resources
Adequate skills to support the organization
Cultural acceptance (change management)
Probability of success
Availability of sound PM practices
Determining initial PMO roles and goals
Project Office Models
Model 1
Model 2
Model 3
PMO Steering Committee (business and IT)
Report assessment findings, conclusions, recommendations and alternatives
Benefits of establishing a PMO
Scope Management
Identify corporate champion
Sponsor’s credibility within the organization
Confirm PMO roles and goals
Project Office Models
Model 1
Model 2
Model 3
PMO Charter
Detailed PMO Implementation WBS
Quality Management Plan
Quality Assurance issues
Establishing monitoring metrics
Time Management Plan
Refining and sequencing WBS
Developing multi-project schedules
Cost Management Plan
Developing the PMO Implementation budget
Selling the plan to senior management
Risk Management Plan
Identified risks and triggers (risk assessment)
Risk response plan
Human Resource Management Plan
Defining specific roles and staff
Complete list of PMO responsibilities
Required roles to initiate a PMO for different models
Establishing the PMO Director
Risk, Issue, Change Control resolutions
Project support
Processes, methods and tools
Training issues
Role of external consulting and facilitation
Scope and Requirements Definition (Business Analysts)
Estimating
Knowledge Repository Coordinator
Project Managers
Procurement Management Plan
PMO facilities
Facility issues (office space, telephones, supplies, PCs, copiers, etc.)
Soft issues (manuals, books, reference material, software)
Communication Management Plan
Identifying key stakeholders
Defining reporting requirements
Establishing PMO Steering Committee
Integration Management Plan
PMO Steering Committee (Governance approach)
PMO Implementation Change Control Committee
Other Key PMO Interface functions
Internal Auditing
Quality Assurance
Financial Department
Linkage to strategic plans
Project portfolio management
Project selection criteria and risk analysis
SWOTs (Strengths, Weaknesses, Opportunities, Threats)
Expected value
Net present value
Decision tree analysis
ROI (Return on Investment)
IRR (Internal Rate of Return)
Business Case Analysis
Alignment with specific business strategy
Enterprise resource allocation and management
Project monitoring and control
Project and Portfolio reporting
Accounting and Financial Analysis
Project closure (Lessons Learned, Knowledge Management)
PMO Performance measurement
Key Performance Indicators
Managing Project Managers
Benchmarking
Issues in managing a PMO in a functional organization
Ineffective or no linkage to the strategic plan
Project Manager’s level of authority
Resource contention (project vs. functional activities)
Issues in managing a PMO in a matrix organization
Same issues in absence of strong matrix
PMO Critical Success Factors
Lessons learned from past PMO implementations