aligning pmo foundations for maximum value

Part of the “Missing Piece” SeriesPart of the “Missing Piece” SeriesDavid W BurrDavid W Burr [email protected]@comcast.net

Aligning PMO Foundationsfor Maximum ValueAligning PMO Foundationsfor Maximum ValuePresented by: David W Burr, PMP, ITILPresented by: David W Burr, PMP, ITIL

Aligning PMO Foundations for Maximum ValueAligning PMO Foundations for Maximum ValuePart of the “Missing Piece” SeriesPart of the “Missing Piece” Series

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Learning ObjectivesLearning Objectives

Understand key considerations that influence establishing a PMO

Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs

Identify how the organization’s culture and maturity impact the PMO

Understand the importance of defining and measuring success criteria

Understand key considerations that influence establishing a PMO

Understand the impact on Return on Investment (ROI) of appropriately positioned PMOs

Identify how the organization’s culture and maturity impact the PMO

Understand the importance of defining and measuring success criteria


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Where do we start?Where do we start?

We need a PMO! But why?? Everyone else has one It’s the “Silver Bullet” Air plane magazine article / Symposium

attendance Flavor of the month

Fact finding “2 by 6” (working sessions) Why are we here? (forward looking) Current State (reality) Future State (realistic) What’s in it for me (projected benefits) Success definition

We need a PMO! But why?? Everyone else has one It’s the “Silver Bullet” Air plane magazine article / Symposium

attendance Flavor of the month

Fact finding “2 by 6” (working sessions) Why are we here? (forward looking) Current State (reality) Future State (realistic) What’s in it for me (projected benefits) Success definition


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What factors influence PMO ROI?

What factors influence PMO ROI?

SponsorshipAlignment with the organizationOrganizational positioningOrganizational role of the PMOWhat the PMO owns and influencesChange managementProcess and success definitionRewards and recognition

SponsorshipAlignment with the organizationOrganizational positioningOrganizational role of the PMOWhat the PMO owns and influencesChange managementProcess and success definitionRewards and recognition


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SponsorshipSponsorship

Leadership versus Management Leading means doing the right things Managing means doing things right

Who’s waving the flag Do they have the juice? Leaders need to be seen, heard, unified,

consistent Set 360o expectations and accountability Encourage and support Manage “up” a ½ hour a week Leaders at all levels

Leadership versus Management Leading means doing the right things Managing means doing things right

Who’s waving the flag Do they have the juice? Leaders need to be seen, heard, unified,

consistent Set 360o expectations and accountability Encourage and support Manage “up” a ½ hour a week Leaders at all levels


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PMO Organizational Alignment (1 of

2)


2)

One or Many?By functional group, discipline, or

silo?Cross Line of Business?Business or IT, Marketing or Sales,

R&D or Manufacturing?Business and IT, etc?

One or Many?By functional group, discipline, or

silo?Cross Line of Business?Business or IT, Marketing or Sales,

R&D or Manufacturing?Business and IT, etc?


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2)


2)

Bridging the gap between cross functional PMOsWe’re on the same teamWe want the same resultsWe define success similarlyCollaborate!

Saves timeHelps identify defects … earlierWorks … require it!

Bridging the gap between cross functional PMOsWe’re on the same teamWe want the same resultsWe define success similarlyCollaborate!

Saves timeHelps identify defects … earlierWorks … require it!


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PMO Alignment or Effectiveness (1 of 2)


Alignment: Theory:

The degree to which the [support] group understands the priorities of the business and expends its resources, pursues projects and provides information consistent with them.1

Practice Support personnel alignment with each subset of

the organization Complexity leading to inefficiency and

ineffectiveness Fragmentation, redundancy, and subscale

operations High Complexity = High Cost

Alignment: Theory:

The degree to which the [support] group understands the priorities of the business and expends its resources, pursues projects and provides information consistent with them.1

Practice Support personnel alignment with each subset of

the organization Complexity leading to inefficiency and

ineffectiveness Fragmentation, redundancy, and subscale

operations High Complexity = High Cost


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Effectiveness:Theory:

Getting projects done as specified, on budget, and on schedule

PracticeA very small % of Executives believe

their IT capability is highly effective, that IT ran reliably

Synch up strategies not personnel

Effectiveness:Theory:

Getting projects done as specified, on budget, and on schedule

PracticeA very small % of Executives believe

their IT capability is highly effective, that IT ran reliably

Synch up strategies not personnel


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The Three Levels of a PMOThe Three Levels of a PMO

CEO

Manufac-turing

Business Finance PMO

Main-tenance

R & DPro-

duction

Projects

PMO

Projects

ProjectsProjects ProjectsProjects ProjectsProjects PMOProjects PMO


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The PMO RoleThe PMO Role

Levels of PMO interaction with projectsMonitor

Data collection and reporting of high level status No accountability for delivery execution Observe and evaluate activities

Mentor Guidance and shared accountability First-hand awareness supporting detailed reporting Participation in complex, high risk activities

Manage Full accountability for execution and delivery Complete resource management and direction Comprehensive reporting

Levels of PMO interaction with projectsMonitor

Data collection and reporting of high level status No accountability for delivery execution Observe and evaluate activities

Mentor Guidance and shared accountability First-hand awareness supporting detailed reporting Participation in complex, high risk activities

Manage Full accountability for execution and delivery Complete resource management and direction Comprehensive reporting


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Ownership and Influence (1

of 2)


of 2)


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of 2)


of 2)


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Change Management and Pain

Change Management and Pain

What is the impact of change? Benefits and detriments Business and people Short term and long term

Skills and behaviors Ownership and accountability Everybody wants things to be better, but

nobody wants them to be different The Executive Misunderstanding Truly lead

What is the impact of change? Benefits and detriments Business and people Short term and long term

Skills and behaviors Ownership and accountability Everybody wants things to be better, but

nobody wants them to be different The Executive Misunderstanding Truly lead


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Quiz:What is the most difficult management level to change?A Individual

ContributorsB Middle ManagersC Senior Leaders

Quiz:What is the most difficult management level to change?A Individual

ContributorsB Middle ManagersC Senior Leaders

Change Management QuizChange Management Quiz


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Cultural and Maturity Change

Cultural and Maturity Change

Maturity level: Correlation or DisconnectMaturity level assessments

What is your current culture?Very traditionalBaby BoomerGen X, Y or Z

Get faster slower

Maturity level: Correlation or DisconnectMaturity level assessments

What is your current culture?Very traditionalBaby BoomerGen X, Y or Z

Get faster slower


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Process Improvement Tools

Process Improvement Tools

Stock up your toolbox PMI CMMi

Staged, Continuous, or Both? ITIL Six Sigma Lean Methodologies Policies, procedures, standards, best

practices Simplicity, tailoring and scaling

Don’t be a slave to any one tool Bottom Line - Add value!

Stock up your toolbox PMI CMMi

Staged, Continuous, or Both? ITIL Six Sigma Lean Methodologies Policies, procedures, standards, best

practices Simplicity, tailoring and scaling

Don’t be a slave to any one tool Bottom Line - Add value!


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Process Quality AssuranceProcess Quality Assurance

Don’t expect what you don’t inspect

PMO and your town policeWhat’s happening if PQA is getting

no voluntary feedback or very few questions?

Don’t expect what you don’t inspect

PMO and your town policeWhat’s happening if PQA is getting

no voluntary feedback or very few questions?


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MetricsMetrics

Why measure?What do we measure?Are we ready to measure?The curse of the initial baselineNow that we’ve measured, now

what?

Why measure?What do we measure?Are we ready to measure?The curse of the initial baselineNow that we’ve measured, now

what?


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SuccessSuccess

Aspects of success Technical Behavioral Organizational Financial Market Share Stock Price ROI

How do you reward success? Applaud gallantry but analyze the root

cause Reward the desired behaviors

Aspects of success Technical Behavioral Organizational Financial Market Share Stock Price ROI

How do you reward success? Applaud gallantry but analyze the root

cause Reward the desired behaviors


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Next Steps (1 of 2)Next Steps (1 of 2)

Raise awareness of PMO benefits (marketing)

Define success criteria Gain Executive sponsorship Initiate

Don’t wait for perfection Define reality

E.g. All green projects and estimation Identify and prioritize risks and issues

Uncover their root causes and reprioritize Define measurement process

Raise awareness of PMO benefits (marketing)

Define success criteria Gain Executive sponsorship Initiate

Don’t wait for perfection Define reality

E.g. All green projects and estimation Identify and prioritize risks and issues

Uncover their root causes and reprioritize Define measurement process


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Next Steps (2 of 2)Next Steps (2 of 2)

Plan, Execute, Measure, and Control An owner for every process

With great power comes great responsibility1 Time-box the development and efforts of the

PMO A series of small successes Work expands to meet the time allotted for its completion2

Get faster slowly

Communicate until you’re sick of it, and then …

Gather, analyze, share, and incorporate Lessons Learned

Promote Continuous Process Improvement Celebrate and team build (frequently)

Plan, Execute, Measure, and Control An owner for every process

With great power comes great responsibility1 Time-box the development and efforts of the

PMO A series of small successes Work expands to meet the time allotted for its completion2

Get faster slowly

Communicate until you’re sick of it, and then …

Gather, analyze, share, and incorporate Lessons Learned

Promote Continuous Process Improvement Celebrate and team build (frequently)


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Questions?Questions?

Things that make you say Hmmm??? Initial planning is the most vital part of a project. The

review of most failed projects indicates the disasters were well planned to happen from the start.

The nice thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression

Everyone asks for a strong project manager – when they get one they don't want one

We figure it's more profitable to have 50% overruns than to spend 10% on project management to fix them

Things that make you say Hmmm??? Initial planning is the most vital part of a project. The

review of most failed projects indicates the disasters were well planned to happen from the start.

The nice thing about not planning is that failure comes as a complete surprise, rather than being preceded by a period of worry and depression

Everyone asks for a strong project manager – when they get one they don't want one

We figure it's more profitable to have 50% overruns than to spend 10% on project management to fix them


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Thank YouThank You

Aligning PMO Foundations

for Maximum Value

Aligning PMO Foundations

for Maximum ValuePresented by: David W Burr, PMP,

ITILHarbur Consulting

PO Box 546Hebron, Connecticut, USA

[email protected]

aligning pmo foundations for maximum value

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