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Why PMOs? (PMI・PMI-TW PMO Day)

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  • Why PMOs?Shinya Takahashi

    Group CEO of MSOL

    Management Solutions co.,ltd.

    MSOL, Inc. MSOL TW, Inc. ProEver, Inc.

  • Management Solutions have been supporting for more than 70 Japanese big companies as external PMOs since 2005. In the US, more than 90% of companies have their own PMOs including project, division and corporate level. They has difficulties with managing and educating their own PMOs, although executives recognize necessity of PMOs. Why is PMO necessary for corporate growth and project successful? How can PMOs help projects and grow? Based on my experiences in Japan and US, I will make a speech on present and future of PMOs.

    Todays topic

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    Introduction

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    Founder/CEO Shinya Takahashi

    Founder and CEO of Management Solutions co.,ltd.CEO of MSOL, Inc.Shinya Takahashi

    Shinya Takahashi has founded Management Solutions in 2005 after directinga number of consulting projects at Accenture, Ernst&Youngconsulting/Capgemini and Sony Global Solutions.In 2003, he was a PMO leader of a big system development projects of SONY as a manager of SONY global solutions which is a subsidiary of SONY.From 1999 to 2003, he has managed and conducted a big system development project and 5 management consulting projects as a manager of Ernst&Young consulting/Capgemini in Japan.In 1996, he started working for Accenture in Japan as a system engineer and IT consultant.He has a degree in Economics from Sophia University.

    He is the author of PMO implementation framework published in Japan

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    The Rapid GrowthAfter Shinya Takahashi, the founder and CEO of Management Solutions co., ltd. , starting the business by himself, the sales has been growing rapidly.

    Sheet1

    FY200520062007200820092010201120122013201420152016

    Sales(JP)46,000,000125,000,000250,000,000300,000,000400,000,000480,000,000550,000,000620,000,000720,000,000900,000,0001,000,000,0001,400,000,000

    Employees4612283335456075

    Sheet2

    Sheet1

    FY200520062007200820092010201120122013201420152016

    Employees410202735465556596571105

    Sheet2

  • The proof as a leading company of PMOs #2

    Shinya Takahashi has delivered speeches at PMI Forum held by PMI which is the biggest project management professional institution.

    And he published PMO implementation framework in 2010 with the companys plentiful experiences and know-how on how to organize PMO professionals for making projects successful.

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    4 3 2 1

    FP

    FP

    Todo

    Todo

    PMBOK

    Ski l l Po int

    2. Based on PMO skill map which contains 106 skills, more than 100 business cases and PMO workshop materials, we have developed e-learning training systems and workshop training courses.

    RecruitingEducation &

    TrainingEvaluation

    1. With experienced recruiting process, we find a proper person for PMO professional.

    200 applicants a month

    20 interviews a month

    2 applicants pass our examination

    3. Each professional is evaluated several times in a year with using PMO processional criteria. Through this evaluation process, professionals can learn many thins about being PMO.

    The competitive advantage #1

    The competitive advantage is in the education & training process which enables non-experienced persons becoming PMO professionals.

    The PMO certification is being acknowledged in Japan.

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    Maturity of PMO

    people

    Process

    Tools

    Organization

    Divided into three roles;1. Project Management Consultant2. Project Controller3. Project AdministratorEach role has its proper criteria to be a professional

    The organization of PMO is adjustable to the belonging organization.The typical type of PMO is divided into six.

    1. Strategic Enterprise PMO2. Operational Enterprise PMO3. Administrative Enterprise PMO4. Strategic PMO5. Operational PMO6. Administrative PMO

    The competitive advantage #2

    The education process is based on the methodology PMO implementation framework. MSOL, Inc. will modify the contents of the methodology for educating Americans.

    The contents of the methodology

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    Our position

    Management Solutions support your project management as an independent party

    Company

    Vendor A

    Consulting company B

    Project

    Project

    Project

    Management Solutions

    We are supporting companies as external PMO

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    What is PMOs?

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    The roles of PMOs

    Strategic PMO

    Administrative PMO

    CoECenter of Exellence

    Program manmagement

    Project Management

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    The research

    The Project Management Office (PMO): A Quest for Understanding

    Brian Hobbs, PhD, PMP and Monique Aubry, PhD, MPM

    the authors discuss two opposing viewpoints: Are PMOs a sign that an organization is innovating, or that it is disorganized and unstable? The best answer, according to the authors, may be that PMOs are still evolving. The Project Management Office (PMO): A Quest For Understanding is a valuable resource for any practitioner or project organization with a stake in that evolution.

    The roles of PMO vary depending on its belonged organization

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    Program Management Office solution - example

    Program management support needed for a major system integrator handling multiple projects

    PMO needed for efficient management of multiple projects

    Project management enhancement required due to the diversity of participants (vendors from different companies, etc)

    Background

    Our role and achievements

    Lead PM

    PM PM PM

    PgMO

    PM : Project Manager

    PMO created for each project

    Each project had over 100 members

    Management Solutions 7 personnel

    Duration

    Introduction, stabilization and improvement of various control processes (progress control, issue control and change control)

    Facilitation for all-project meetings Risk management and Executive

    reporting

    Our role

    Over 1 year

    Early issue identification for project management and expedition of problem resolution Provided detailed project overview to management for executive decision supportachievements

    PjMO PjMO PjMO

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    Project Management Office solution - example

    Large-scale project for a backbone system at a major system integrator which has been rescheduled

    Controlling process implementation immediately needed due to offshore development in China

    PMO needed for efficient project control expert service sought after

    Background

    Our role and achievements

    PM : Project ManagerOver 100 project

    member from three developers

    Management Solutions 4 personnel

    Duration

    Launching PMO organization Introduction of various control

    processes (progress control, issue control and change control) and decision making support for PM

    Project control tool selection and implementation support

    Risk management and Executive reporting (to MD)

    Our role

    18 months

    PM

    TL TL TL

    PMO

    Visualization of project progress and issues by controlling tasks and processes Timely and precise reporting to top management Contribution to cost reduction by controlling vendor tasks for less inefficiency

    achievements

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    Catch up with delays by monitoring workload, redefine roles for overworking resources

    Situation

    Most of members did not have required skills, resulting in high workload of project leader

    Issue

    A was a leader of high commitment with tendency to take more tasks than actually possible and was unable to see how much delay was there.

    Project overvie

    wERP package implementation project

    Duration 6 months

    Project members About 70

    Solution

    Meticulously planned WBS (detailed schedule), measuring workload quantitatively

    Divided work in two, splitting the team as well had leader A in charge of only one team

    Improved quality by member cross-checking documents

    Effect

    Task resources clearly identified helping reduce leader As workload resulting in catching up with delays

    Leader A

    Project Manager

    PMO

    Fully dependent on A due to lack of required

    skills

    Overwhelmed by high workload but hiding

    delay

    WBS

    Leader A

    100%

    Too much

    workload

    Leader A

    Leader A (also

    assuming a

    member task)

    Leader C

    Team Workload Monitor workloa

    d

    Divide team in two

    Cross-checkin

    g

    Solution for individual projects example 1

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    Speedy problem resolution made possible by creating a taskforce handling cross-team problems

    Situation

    Unresolved problems in a project involving multiple teams

    Issue

    No team would not take leadership nor ownership, resulting in unattended issues and problems involving multiple teams

    Project overvie

    wGlobal ERP Global ERP implementation project

    Duration 2 years

    Project members Over 100 members

    Solution

    Task forces formed up for each problems allowing all resources from all team to join on necessity basis, expediting problem resolution

    PMO got in charge of various coordination work and reporting, contributing in decreasing member workload

    Effect

    Clear responsibilities were given to members to improve the speed of problem resolution across multiple teams

    Problem

    Problem

    Team A Team B Team C

    Team C should be taking initiatives

    With the workload in coordination

    tasks, we cannot take initiatives on

    this

    Task force

    PMOProblem Problem

    Team A Team B Team C

    Solution for individual projects example 2

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    Established PM schemes and standards to handle numerous short-term project groups in a financial consulting firm, which has just acquired a partner company

    Situation

    A dozens of projects, although having similar structures, have been controlled by a few experienced senior directors -thus not scalable nor expandable.

    Issue

    WBS has not been defined and standard PM processes were not in place.

    Project overvie

    wPM Enhancement for Financial Consulting projects

    Duration Ongoing

    Project members 15 members

    Solution

    All tasks have been re-identified then to form up standard, reusable WBS templates

    PM training have been given to PM leads so they understand the importance of project control

    Project Control Standard has been created and implemented

    Effect

    Project members now knows how to plan fast-turnaround projects as well as controlling risks, upper management can concentrate more on deliverable reviews rather than tackling with day-to-day tasks.

    Solution for individual projects example 3

    Project Lead A Project Lead B

    Project members Project members

    Function Manager

    Ex-company A Ex-company B

    *Recently experienced M&A

    Common PM standardSame WBS type

    Greater Risk Control

    Periodical report Periodical report

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    Authorities Responsibilities

    Project Manager / Project leader

    Human resources, budgeting

    Project completion responsibilities -

    Delivery, Cost and Quality

    Team leads Direct works and evaluate

    Responsible for team task completion, motivating team and controlling tasks

    PMOTake corrective measures in terms of quality

    Productivity improvement (especially in decision making processes for managements and in on-site controlling processes)

    The key role of PMO

    Work scope Deliverables Schedule Memberskills

    Otherteams

    Clear (well-defined,

    limited)

    Mainly deliverables for clients

    Well-definedSpecialized skills are required

    PMO Various

    Mainly deals with non-client deliverables

    Mostly continuous works

    Wide range of skill set is required

    PMO can help improve project management maturity level by visualizing progress and issues across the entire project, enabling PM to make better decisions.

    PMOs authorities and responsibilities

    PMO difference from other teams

    PM

    Biz Design Development Infrastructure

    PMO

    Introduction and improvements of project control processes

    Decision making support

    Visualization of Progress

    and Issues

    PMO roles

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    Skill of PMO

    PMO Skill Map

    28 categories of basic skills

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    Why PMOs?

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    Fight against department silo

    One of the characteristics of industrial age enterprises is that they are organized around functional departments. This organizational structure results in both limited information and restricted thinking. The Silo Effect asks these basic questions: why do humans working in modern institutions collectively act in ways that sometimes seem stupid? Why do normally clever people fail to see risks and opportunities that later seem blindingly obvious? Why, as psychologist Daniel Kahneman put it, are we sometimes so blind to our own blindness?

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    The future of PMOs

  • The future of PMOs

    1. PMOs will be the center of excellence for supporting and training project managers and project management knowledge

    2. PMOs will be initiative for change management in order to fight against for department silo

    3. Some of PMO functions will be outsourced in order to optimize internal PMOs

    Why PMOs? 2Introduction 4 5 6 7 8 9What is PMOs? 11 12 13 14 15 16 17 18 19Why PMOs? 21The future of PMOs 23