Building An Enterprise PMO

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  • Establishing a Business Focused Project Management Office in a

    Large Organization

    Lacey Newbry, MBA, CSSBB, PMP, RDN/RD, LD Sr. Director of Tools and Standards, Enterprise Project Management Office Dignity Health Lauren Krikke, PMP, LSSBB Project Manager, Enterprise Project Management Office Dignity Health

    WHITE PAPER May 2016

  • Table of Contents I. Executive Summary ......................................................................................................... 3 II. Mission and Vision......................................................................................................... 3 III. Timeline ........................................................................................................................ 4 IV. Organizational Structure ............................................................................................... 5 V. Governance .................................................................................................................... 6 VI. Intake Process ............................................................................................................... 7 VII. Models and Methodology ............................................................................................ 7 VIII. EPMO Responsibilities .............................................................................................. 8 IX. Project Management Software ...................................................................................... 9 X. Results ............................................................................................................................ 9 XI. Lessons Learned ......................................................................................................... 10 XII. Conclusion ................................................................................................................. 11

  • I.Executive Summary Dignity Health is made up of more than 60,000 caregivers and staff who deliver excellent care to diverse communities in 21 states. Headquartered in San Francisco, Dignity Health is the fifth largest health system in the nation and the largest hospital provider in California. For many years, Dignity Health has boasted a strong Information Technology (IT) Project Management Office (PMO) successfully executing IT projects across the enterprise. While this team is highly effective implementing IT focused projects, there was little project management support for high level operational business initiatives. Dignity Healths Executive Leadership Team saw a need for enterprise wide project management support on governance, project portfolio management and standardization of tools and methodologies. The decision to create an Enterprise Project Management Office (EPMO), focused on strategic operational business needs, was made in December of 2014. The impetus for the decision was due in part to several poorly executed enterprise projects that created increased costs related to schedule delays, lack of thorough due diligence and weak coordination of facility and system resources. Once given the green light, Dignity Health was able to launch a fully functioning business focused EPMO in less than 3 months. This paper details the timeline, organizational and governance structure, delivery models, intake process, integration with the IT PMO and future direction/lessons learned for launching an EPMO in a large organization.

    II.Mission and Vision Performance Excellence (PE), a group within Dignity Health responsible for process improvement, was a core partner during the formation of the EPMO. The two groups are grounded in the core belief that through the contribution and engagement of staff, physicians, volunteers and patients, the provision of care and operational processes can be greatly improved. Together, PE and the EPMO focus on maximizing value-added activities by eliminating waste, variability and inflexibility through the application of Lean, Six Sigma, Project Management and Human Centered Design. Realizing the opportunity to create a new hybrid approach utilizing PE methods in combination with traditional PM methods, the leadership team for PE and the EPMO came together to craft a joint mission and vision in strategic alignment with the existing mission and vision of Dignity Health. EPMO/PE Vision Impact and deeply empower people to build a better working world.

  • EPMO/PE Mission Fueled by relentless optimism, we deliver things that matter in strategic alignment with the mission and vision of Dignity Health, trusting there are different ways to change together.

    III.Timeline The direction from leadership was to quickly build the EPMO to guide business operations in defining project vision and scope, initiation/planning and implementation from the highest level of leadership (see Figure 1). The core leadership team of the EPMO was in place within a few months of launch. A project management tool was adopted with a custom build specific to the EPMO and project managers (PM)s were hired into the newly formed group. The intake process, tools, standards and templates were all built while new projects came online, giving PMs the feeling the road was being built behind them as they trail blazed projects into new areas of Dignity Health. An innovators mindset was needed from the onset to immediately start accepting projects while core standards were built from lessons learned. There was significant work done to develop the culture of the EPMO, including a collaboration to establish a vision and mission with PE. New team members were given a customized gift from the most recent new hire along with assignment of a work buddy on their first day. Team building activities were part of all meetings, to build trust and collegiality among the new team members. Many of the new PMs were accustomed to a highly structured and stable environment, and thus were asked specific questions to gauge their cultural fit and comfort level in a less structured and more fluid project environment. PMs uncomfortable with the iterative improvement process and flexible nature of the EPMO were supported in transitioning to other roles. The first project in the EPMO started in February of 2015. The formal governance model and organizational structure was presented to the executive leadership team in May after project work had commenced. The EPMO leadership group identified early on to be successful, full support and collaboration with the IT PMO was crucial. Regular communications were established coordinating new and existing project efforts. While IT and the EPMO continue to track projects in separate tools, status reports for both PMOs are routinely communicated with future plans to integrate high level project data via a business intelligence dashboard.

    Figure 1

  • IV.Organizational Structure The organizational structure was built with the expectation that all members of the team are able to talk freely and openly with one another regardless of title or specific project work. This concept was established in the hiring and recruiting stage of the EPMO formation, it was imperative for members of the EPMO to be empowered to collaborate with one another free of title or position. The dual reporting structure for the leader of the EPMO was to the Chief Administrative Officer and Chief Operating Officer to enable regular communication with Dignity Healths executive level leadership. The short chain of command allows for high visibility and enables the EPMO to become aware of strategic projects as they happen. The direct line of authority to an Executive Leadership team member allows barrier removal when PMs are faced with road blocks relating to schedule, cost and resources.

    Executive Vice President/ Chief Administrative Officer

    SVP Operational Effectiveness & Performance Excellence

    VP Enterprise PMO & Performance Excellence Executive Coordinator

    Senior Director,

    EPMO

    Project Manager

    Project Manager

    Project Manager

    Project Manager

    Senior Director,

    EPMO

    Project Manager

    Project

    Coordinator Project

    Coordinator

    Project Manager

    Executive Vice President/ Chief Operating Officer

    EPMO Director

    Figure 2

  • V.Governance The tight timeline to implement required a flexible governance model for success. Unlike a traditional IT PMO where governance is typically more strict and formalized due to the nature of the technical standards, the EPMO needed to be nimble, collaborative, creative and strategic. Many projects and initiatives at this level cross multiple operational and administrative levels which required a more fluid approach. The model adopted consists of two major directions:

    1) top-down, where individual projects are managed and directed granularly and 2) bottom up so all projects are reported and escalated globally (see Figure 3).

    This structure allows for steering committees to direct executive sponsors when setting requirements and expectations for Project Managers. Project Managers report upward to the EPMO, where reports are vetted and provided to the executive leadership team for information and action. The decision was made to categorize projects by strategic pillars. Each member of the Executive Leadership Team has ownership over a pillar which allows for reporting by functional area.

    Figure 3

  • VI.Intake Process As the popularity grew for EPMO services based on successful outcomes of projects, the intake process was formalized. There were no limits to projects in the embryonic phase while the EPMO was building good will and trust throughout the organization. Once operational, the intake process illustrated below was adopted: Because the EPMO sits at the highest level of the organization, it was integral to the intake process to limit requests to Vice President (VP) or higher to both maintain the strategic importance of projects and to limit the overall volume of projects that the EPMO could successfully execute. The EPMO maintains a level of authority to approve projects within specific parameters, beyond the defined parameters projects need to be approved by executive leadership. Projects that do not meet the above criteria convert to the supported model discussed in the Models and Methodology section below. The goal is to not leave any project in the organization stranded without some level of support. Traditionally, only projects with an IT component benefitted from formal project management support.

    VII.Models and Methodology The EPMO introduced two models for meeting the business project management needs of the organization: managed and supported. The managed model is defined as all projects actively run and managed by the EPMO PMs. PMs are responsible for the final delivery and hand off of projects in this model. The EPMO ensures a standard methodology; tools and templates are maintained for all managed projects.

    VP or higher

    request project

    Initial Assessment

    and Discussion

    Build

    Business Case

    Review for Approval

    (based on $ and

    resources)

    Launch Project

    EPMO Intake Process Figure 4

  • The supported model is a way for the EPMO to extend its reach without running every project across the enterprise and relies on building project management capabilities throughout the organization. Individuals outside of the EPMO are given tools, templates and training for non-project managers to work independently. EPMO PMs provide mentorship and support as needed. Projects in the supported model are tracked in the EPMO project management software tool and reported as part of the overall project dashboard, providing senior leadership insight into the breadth of work across the system. The methodology used in the EPMO is unique. In addition to utilizing project management principles, all PMs are trained in Lean/Six Sigma methodology and Human Centered Design. PMs are given freedom to utilize the tools best suited to their project. The EPMO has developed templates, tools, processes, decision trees and a custom intake module that allows flexibility with multiple project types. The eventual goal is to use the tools, templates and learnings to provide consulting capability to external healthcare companies or other industries wishing to build a strategic business project management office. The EPMO, in partnership with PE, have developed a specialized methodology and common set of tools used on all projects regardless of type, creating a hybrid approach to traditional project management which includes the principles of Lean/Six Sigma, process improvement and design thinking.

    VIII. EPMO Responsibilities Like any traditional PMO, the EPMO has responsibilities to lead projects from inception to completion, assume accountability for project success, communicate effectively with stakeholders, manage the project team, remove obstacles and provide oversight. The EPMO PMs provide project management mentoring in the support Model. PMs are encouraged to spread knowledge and skills to non-project managers working on business projects. Supported projects are shorter in duration and smaller in scope. Non-project managers are assigned a PM mentor from the EPMO. The responsibility of the PM on a support project is to teach, train and provide information about the Project Management Life Cycle (PMLC) methodology, while helping to support the project from initiation to completion. The goal of the supported model is to provide the non-project manager with new skills to be able to better manage projects. The EPMO PM encourages the non-project manager to share the newly gained skills and knowledge within their own business units. One of the exceptional benefits of the EPMO is the team is closely aligned with the Performance Excellence (PE) department. By creating a partnership with PE, the EPMO is able to increase service offerings and provide support from various subject matter experts.

  • IX.Project Management Software Part of the success of the EPMO to date is the introduction of a project management software tool. The tool tracks projects allowing executive, sponsor and team reporting. The EPMO utilized a custom build to tailor the intake process and add custom workflows, decision trees, tools and templates based on the unique needs of a business-focused PMO without adding layers of extra work and approvals. The EPMO also provides the tools and training for non-project managers in the supported model. The deployment of the Project Management Software tool buffered by the custom development of tools, templates and methodology provided the basis for standing up an effective EPMO. The IT PMO currently uses a different project management solution; the plan is to utilize business intelligence software bringing all projects together in one dashboard to inform executi...

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