Building  the  PMO  as  a  Program

Thomas  WalentaMarch  2016,  Webinar  for  South  Ontario  Chapter

(this  is  the  only  clean  and  black  &  white  slide)

Successful Project  creates a  product /  output in  time  &  budget that cancontribute to benefits /  outcomes

Successful Program achievesbenefits /  outcomes that cancreate value

What  do  you  want  to  achieve?Output  >  Outcome  >  Value

Values  are perceived bybeneficiaries of the benefit /  outcome over time

More  time  for  familyA  traffic  system  allows  fluid  transportationA  bridge  to  cross  something

Project Program Operations

Program  Management  deals  with  benefits(another  topic  is:  Project  Management  has  no  clue  =  Method,  Training,  Capability,  Attitude)

Program

UnderstandCreateAchieve

Strategy  /  Benefits

GovernanceStakeholders

Program:A  group  of  related  projects,  subprograms,  and  program  activities  that  are  managed  in  a  coordinated  way  to  obtain  benefits not  available  from  managing  them  individually.(PMI  Standard  for  Program  Management)

Benefit:An  outcome of  actions,  behaviors,  products,  or  services  that  provide  utility  to  the  sponsoring  organization  as  well  to  the  program’s  intended  beneficiaries.(PMI  Standard  for  Program  Management)

An  outcome  providing  value  to  someone  (Th.  Walenta)

How  to  get  a  handle  on  benefits?’Logic  Modelling’  provides  a tool  to  link  resources  to  value  

Resources

ValueOutcomesLong   termObjectives

ActivitiesProjectsEnablers

OutputsProducts

CustomersStakeholder

OutcomesBenefitsShortterm

OutcomesBenefits

Intermediate

plan

create

Project  /  Enabler ofBenefits

Benefit:  seen  as  positive  by  a  stakeholder

Objective(SMART)  /  Value

’Logic  Modelling’  Examples

Resources

ValueOutcomesLong   termObjectives

ActivitiesProjectsEnablers

OutputsProducts

CustomersStakeholder

OutcomesBenefitsShortterm

OutcomesBenefits

Intermediate

Training Skills  achieved  by  participants Improved  

performance

Participants  changed  behavior

List  of  attendies

Test  results

Observation,  use  of  skills

Process  throughput

Standardize  project  reporting

Benefit:Project  Visibility

Value:Reduce  cost  of  recovery

%  of  key  projects  reporting  on  time

%  of  revenues  spent  on  recovery

IdeaCategorization  sheet

Benefit:Project  Categorization

Increase  strategic  value  of  projects

PMO  studies  and  surveys  reveal  similar  results  since  years:PMO’s  live  longer  when  they  create  value,  but  most  die  young  

2016  UK  study  with  686  participants,  by  Wellingtone/APM• Only  10%  of  PMOs  exist  longer   than  10  years,  55%  less  than  4  years• Most  difficult  process  to  implement   for  a  PMO  is  benefits  management• 47%  do  not  have  PMO  KPIs  at  all,  only  19%  maintain  their  KPIs• Most  common  PMO  tasks  are

• Reporting• List  of  projects• Methodology

2013  German  study  with  257  participants,  by  GPM/IPMA• Only  25%  of  PMOs  older  than  5  years,  35%  less  than  2  years• Average  number  of  projects  supported   by  PMO:  35-­‐106• Acceptance  of  PMO  highest  when measured  quantitatively• Most  common  PMO  tasks  are

• Methodology• Reporting• Coaching

2007  PMO  white  paper,  by  Hobbs/PMI(based  on  survey  of  500  PMOs,  43%  Canadian)• 83%  of  PMOs  younger  than  5  years• 50%  of  PMOs  are  being  challenged• PMO  Setup  duration   is  6-­‐24  months• 50%  have  less  than  4  FTEs• Identified  27  PMO  functions• Most  common  PMO  tasks  are

• Reporting• Methodology• Monitor  Performance

1998  book  ‘The  Project  Office’,  by  Th.  Block  &  D.  FrameFive  functions   (still  valid  today)• Project  support  (incl.  reporting)• Consulting   &  mentoring• Methods  &  standards• Training• Project  Managers

Example:  Setup  the  PMO  as  an  iterative  Program  to  deliver  Benefits

Stakeholders

Requirements

Expected  Benefits

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

Example:  Identify  and  analyse stakeholders,  develop  surveys  &  interviews

Stakeholders(80+)

Requirements

Expected  Benefits  

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

Example:  Collect  and  cluster  requirements  from  interviews  &  questionnaires  

Stakeholders(80+)

Requirements(219)

Expected  Benefits  

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

KPIs

Example:  Extract  expected  benefits  from  requirements  (benefits  register)

Stakeholders(80+)

Requirements(219)

Expected  Benefits  (25)

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

KPIs

Project  Management  Office

Project  Portfolio  Management

Key  Project  Classification  &  Prioritization

Resource  alignmentTask  integrationBenefits  Mgmt

Project  Management  Governance

PM  StandardsTemplatesIntegration  

SCRUM/WaterfallReviews  &  Audits

On-­boarding  processRisk  Management

Project  ManagementCulture

CommunityCommunication

Campus:TrainingCoachingMentoringCertification

Example:  Define  the  PMO  Architecture  provides  a  sustainable  framework  for  PMO  benefits,  PMO  outputs  and  operations

PfM Process -­priorisation

PfM  Process  –resource   alignment

PfMList  planned   projects

PfMList  running projects

PfM Process –portfolio health

PfM  Process  –demand/planning

PfMList  all  key projects

PfM  toolreporting

PfMPfBoards MD/VGI

PfMScenario   Tool

PfMPEB  Standard

Project   /  Enabler   of  Benefit Benefit:  seen   as  positive   by  a  stakeholder

(Key)  Objective(SMART)

PfM temp -­Catagorization sheet

PfM  ProcessRes  Capacity  MgmtPfM  Process

Res/demand   coord

PfM  -­ templateBenefits   Register

PfM  -­ processBenefits   Mgmt

PfM  -­ templateBusiness   case

PfM –develop skillsbenefits mgmt

PfM -­ templateBenefits Report

PfM  procDCC  process

PMOP05:  Project  Categorization

1

PMOP01:  Establish   Portfolio   Visibility

1

PMOP06:  establish   preproject   standard

5

PMOP02:  Resource   planning   &  

alignment

3

PMOP04:  Efficiency   by  Portfolio  

Prioritization

1

PMOP03:  Ensure   PEB/DCC  and  x-­Team  

coordination

2

PMOP07:  Customer  expectation   and  benefits   management

5

PMOP08:  Pool  key  skills  &  resources

8

PfM  ProcessBottleneck   mgmt

PfM -­ template'IT  Value   Sheet'

CULTCustomer  survey

Example:  Create  Benefits  Roadmap  using  ‘logic  modelling’  (Portfolio)

Increasestrategical value

Increase Efficiency

Increase Customer  Sat

Increase visibility

Improvestandardization

started doneplanned

Example:  Implement  enablers  of  benefits  

Stakeholders(80+)

Requirements(219)

Expected  Benefits  (25)

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

KPIs

Examples  of  implementing  enablers:  schedule  /  templates

Enablers/outputs  are  e.g.  templates,  processes,  workshop,  presentations,  governance,  meetings,  

reviews  …

Example  Portfolio  Management:  Template  ‘categorization’  to  prioritize  ideas

ROI  

Strategic  Relevance

Resource   fit  

Compliance  and  Legal  must  

Application  Landscape  fit

Strategic  Relevance  (0-­‐18  pts):• Increase  revenue  /  profit   2  pts• Increase  efficiency 2  pts.• Market  penetration  /  Customer  value 2  pts.• Contribute  to  strategic  company  goal 2  pts• Fit4Growth  Projects 10  pts.

Financial  Impact  /  ROI  Calculation  (0-­‐10  pts.):(OPEX+CAPEX+Operations)  devided by  Planned  savingsROI  <=  1  year: 10  pts.1  >  ROI  <=  2  years:   8  pts....  4  >  ROI  <=  5  years: 2  pts.No  ROI  or  >  5  years: 0  pts.

Compliance  and  Legal  must  (0-­‐10  pts.)• no  relevant   0  pts.• IT  Release  Update 5  pts.• Mitigate  Business  Risk 5  pts.• Legal/Tax  relevant 10  pts.

Application  Landscape  fit:• does  not  fit  to  current   IT  landscape 0  pts.• new  system,  new  service  required 2  pts.• new  component   for  existing  system 3  pts.• extend/modify   existing  system 4  pts.• use  existing   system 5  pts• Set  new  standard 6  pts..

Ranking  Pts.  =   �Strategic  Relevance    + ROI+   Compliance  and  Legal  must+   VGI  Application  Landscape  fit

MAX  Ranking =  44  pts.    Running projects =  100  pts.

Example:  Implement  enablers  of  benefits  

Stakeholders(80+)

Requirements(219)

Expected  Benefits  (25)

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

KPIs

Example  Portfolio  Management:  semi-­‐annual  Portfolio  Board  (C-­‐Suite  +  1st line  below)

Focus  of  IT  Portfolio  Board  03  /  2016

Focus  of  IT  Portfolio  Board  09  /  2015

Portfolio  Planning§ Resource  Capacity  

Planning§ Financial  Planning§ Prioritization

Portfolio  Management§ What-­‐if  Modeling§ Target  Modeling§ Key  Driver  Analytics

Analyze§ Portfolio  Health  &  Value  

contribution§ Exception  Management Analysis Plan

Select

Capture

Collaboration§ Progress  Status§ Issue  &  Risk  

Management§ Change  Management Execute

Resource  Alignment§ Reallocate  Resources§ Remove  completed  projects§ Cancel  projects§ Sunset  projects Manage

Demand  Management§ Idea  Categorization§ Strategic  Initiatives§ Operational  work

Planning ExecutingInitiating Closing

Example  Governance:  Generic  project  lifecycle,  artifacts  and  deliverables

§ Rough  Budget  Planning§ Rough  Project  Scheduling

§ Stakeholder  Analysis§ Risk  Register§ Project  Charter§ System  Approval§ Procurement

For  key  projects:  § Pre-­Project§ Benefit  Register§ Business  Case

§ Resource  Planning  (Org.-­Chart)

§ Detailed  Project  Scheduling

§ Set  up  MS  Project§ Scope  Management§ PMP  (Project  Management  Plan)  

§ Stakeholder  Mgmt.  § Risk  Management

For  key  projects:  § Initial  SteerCo§ Kick  Off

§ Status  Reports§ Budget  Tracking  (Plan/As-­is)

§ Stakeholder  Management

§ Risk  Management§ Change  Requests§ Documentation  for  AMS

For  key  projects:  § SteerCo

§ Project  Acceptance  Letter

§ Final  Lessons  Learned  Workshop  +  Project  Celebration

For  key  projects:  § Final  SteerCo

Gate  1DoR

Gate  2Startup

Gate  3DoD

Gate  4Closing

HealthCheck

HealthCheck

HealthCheck

Kickoff

InitialSteerCo SteerCo SteerCo

LessonsLearned

finalSteerCo

LessonsLearned

LessonsLearned

Monitoring  &  Controlling  Processes

InitiatingProcesses

ClosingProcesses

PlanningProcesses

ExecutingProcesses

Project  Lifecycle  phases  not   be  confused   with   iterative   PM  process  groups(Thomas  Walenta)

Example  Governance:  Standardized  Health  Check  for  all  key  projects,  part  of  weekly  report

Major  success  factors  for  projects  

Delivery  organization  benefits  are  being  realized

Scope  is  realistic  and  managed

Business  Benefits  are  being  realized

Work  &  Schedule  are  predictable Team  is  high  

performing

Risks  are  being  mitigated

Stakeholders  are  committed

Assess

Repeated  depending  on  a  project’s  health,  

e.g.  RED  =  monthly

Plan

Implement

Impact

Integrated  Project  Management  Plan

§Stakeholders§Business  benefits§Work  &  Schedule§Scope§Team§Risks§Delivery  organization§Project  Plan

Based  on  IBM’s  7keys  method

Red  Amber  Green

Example  Culture:  PM  Development  Path

Consultant  Staff

Project  Mgr(parttime)

Project  Ldr (100%)

Program  Mgr /  Scrum  Master

PM  Staff

Training  (understanding)

Assessment

Experience  (practice)

Expertise  (analyze/synthesize  situations)

Extend  &  enhance  (evaluate  PM

 concepts)

CAPM

PMP

PgMP

Coaching

Certification  Program

Be  a  mentor

Business    Analyst

PBA

PMIACP

HypercareJob-­‐

Rotation

Get  a  mentorPMI  Certifications:CAPM  Certified  Associate  Project  ManagerPMP  Project  Management  ProfessionalACP  Agile  Certified  PractitionerPgMP Program  ManagerPBA  PMI  Business   Analyst

LeadershipPractice

Perspective

PMI’s  talent  triangle&  IPMA’s  eye  of  competence  

Business    Analyst

Example:  Measurements  

• Points  of  Measurement:  outputs,  benefits,  value  • Developed  2-­‐8  potential  measurements  per  benefit• Progressively  elaborated  • NOT:  implementing  or  reporting  all  measurements• BUT:  decide  on  what  key  stakeholders  want  or  need  and  when  

Most  busy  slide  of  this  presentation

Stakeholders(80+)

Requirements(219)

Expected  Benefits  (25)

Architecture

Roadmap

ImplementEnablers

OperateEnablers

Measurements

KPIsMajor  success  factors  for  projects  

Delivery  organization  benefits  are  being  realized

Scope  is  realistic  and  managed

Business  Benefits  are  being  realized

Work  &  Schedule  are  predictable Team  is  high  

performing

Risks  are  being  mitigated

Stakeholders  are  committed

Setup  the  PMO  as  an  iterative  Program  to  create  Value:Starting  with  stakeholders,  identifying  and  realizing  benefits,  closing  with  KPIs

Stakeholders

Requirements

Expected  Benefits

Architecture

Roadmap

Implementation

Operations

Measurements,  KPIs

Resources

ValueLong   termOutcomesObjectives

ActivitiesProjectsEnablers

OutputsProducts

(e.g.  training)

CustomersStakeholders

OutcomesBenefitsShortterm(e.g.  skills)

OutcomesBenefits

Intermediate(e.g.  behavior)

Project  /  Enablerof Benefit

Benefit:  seen  as  positive  by  a  stakeholder

Objective(SMART)  /  Value

Necessary  for  Success

Traditional   PMO