PMO – The Value Journeyjourneyconsulting.org/.../assets/docs/SlidesPMO-The_Value_Journey... · PMO – The Value Journey ... CMI Dental Equipment EHS Finance HR IT Legal MFAPS Procurement

PMO – The Value Journey

Page 1Unrestricted Internal Use

March, 29th 2011

“How do you eat an elephant?”

“One bite at a time!”

“How do you create a valuable PMO?”


“One step at a time!”

Today’s Journey

Decide to take a trip Need a PMO

Gather destination ideas & needs Research PMO Models & functions

Determine destination Define PMO Mission

Check the weather Understand organizational culture and current state

Pack Identify Process Management Methods


Pack Identify Process Management Methods and Tools

Put in your starting point, map the route and start driving

Drive Process, Change & Value

Year 1, Year 2, Year 3 and beyond

Make stops along the way and adjust route where necessary

Measure value, assess lessons learned & drive continuous Improvement

Check the rearview mirror Key Takeaways

Gather destination ideas & needs


The PMO Value Proposition


Copyright 2008 Forrester, Inc. All Rights Reserved

Framing the Mission of the PMOIn

vo

lve

me

nt

in

Pro

jec

t E

xe

cu

tio

n

Coach

Auditor Fin. Advisor

Enterprise

Standards & Approach

Standards & Approach

Measure Standards & Approach

Measure

Project

Transition

Portfolio

Measure

Portfolio


Coach Auditor Financial Advisor Enterprise

Mission:

• Share Project Management Best Practices

Tasks:

• Develop Standards & Methodologies

• Facilitate Project Manager Development

Success Metrics:

• Project Management Standards Compliance

• Methodology-Driven Project Delivery Improvement

Mission:

• Create Visibility into project queue performance

Tasks:

• Track & report project status

• Administer stage-gating and mid-project reviews

• Project Execution Post-Mortems

Success Metrics:

• Reduce Incremental Project Funding

• Reduce Controllable Project Failures

Mission:

• Facilitate Project Portfolio Optimization

Tasks:

• Support portfolio definition and asset allocation

• Guide Portfolio prioritization decisions

• Conduct Business Case Realization Audits

Success Metrics:

• Total Portfolio Returns

• IT Strategic Alignment

Degree of Authority over Benefits Realization & Risk Management

Portfolio

Mission:

• Optimize project portfolio, maximize throughput, and Drive Successful Project Delivery

Tasks:

• Oversee Project Managers

• Support Project Planning Process

Success Metrics:

• On-Time Delivery

• On-Budget Delivery

• On-Scope Delivery

Determine Destination


Portfolio

Planning, Prioritization

Resource Profile

600

800

1000

1200

1400

Resourc

e L

evel

Test Status

RegressionTestingResultsXMLHTML

SimplifiedTracking of Progress and Issues

ProjectExecution

&

Pipeline Loading /

Management

ResourcePlanning

Certainty / Payoff - Q2FY06

Ballpark

Ballpark HI

Ballpark MDC

Ballpark UCB

Caesar

Frank

Freebird

Freeworld

Hermes

Impera

Omnibus

Knex

PFLSRising Star

$0

$5

$10

$15

$20

0 0.2 0.4 0.6 0.8 1

Aggregate Project Certainty(Includes Technical and Marketplace Certainty)

No

min

al P

roje

ct

NP

V (

$M

M)

Outside Border: Total Project Cost

Inside Border: Spend Remaining

Washer: Spend to Date

Company ConfidentialLast Updated 28 July 2005

Extend / Defend

Create

Project Request

•Business-driven

•Special Programs

IT Council, Program(s) Steering Committee(s)

Process Framework

The Mission


Portfolio & Pipeline

Management

Process Mgmt.

Resource Management

ProjectManagement

0

200

400

600

1 2 3 4 5 6 7 8 9 10 11 12

Period

Resourc

e L

evel

Supervisors, Line Managers

Templates forProject Plans and Deliverables

Product Specification

i. Introductionii. Product Overviewiii. Product Requirementsiv. Voice of Customer Analysisv. Technical Documentationvi. Product Configurationvi i. Training Requirements


i. Introductionii. Product Overviewiii. Product Requirementsiv. Voice of Customer Analysisv. Technical Documentationvi. Product Configurationvii. Training Requirements




i. Introductionii. Product Overviewiii. Product Requirementsiv. Voice of Customer Analysisv. Technical Documentationvi. Product Configurationvi i. Training Requirements





&

Reporting

Planning

Financial Mgmt.

PMOProject Teams

Drive integration of portfolio, project, resource, and financial information to ensure optimal delivery of IT Products and Services aligned with business need.

The Foundation - Pillars of the PMO

Governance Standards and

Best Practices

Coaching, Mentoring &Training


Project Execution Oversight

Dashboards and Scorecards

Gate Reviews

Project Risk Assessments

Stakeholder Management

Change Management

Master Planning

Benefits Realization - Post Project Review

Alignment with PMBOK

Project Delivery Methodology

Project Management Tools

Standards, Best Practices & Templates

Scope Management

Schedule Management

Cost Management

Resource Management

Quality Management

Lessons Learned Cycle

Knowledge Sharing

PM Community / Forum

PMO Steward Support

Training and Certification Program

PM Expectations

PM Effectiveness Measures

Check the weather – PMO Current State

Starting Point

Culture Risk Adverse

Change Resistant

PMO Model Ineffective Project Management Office – Too low in the organization

PMs dispersed across organizations

Portfolio Management Non Existent

Governance Internally Focused


Governance Internally Focused

Inconsistent ability to execute

Weak stakeholder network

Standards & Best Practices Overly complex, outdated project delivery methodology

Lessons Learned process ad hoc

Coaching, Mentoring & Training Project managers typically assigned based on capacity

Project managers usually multi hatted as design or technical lead and SME

Value Lack of confidence from the company & business in the ability of the IT organization to lead, plan and execute a portfolio of strategic projects.

Pack the tools


11

Copyright 2009 Planview, Inc. All Rights Reserved

The trip began…

Year 1


Change Resistant

Afraid to escalate

PMO Model Executive Sponsorship

PMO elevated to report to CIO

Portfolio Management Established a project scoring system and portfolio management process balancing risk, cost and return


Portfolio Managementmanagement process balancing risk, cost and return

Portfolio Planner Role created

Governance Standard Project Status Reporting

Project Risk Review Process

Defined Project Stakeholder Network

Standards & Best Practices PMO PMP Certified

Project Initiation & Project Closure Templates

Coaching, Mentoring & Training

PM Community forum established

PMO Website launched

Microsoft Project Schedule training

Year 1 – Accomplishment Examples




Year 1 - Lessons LearnedLessons Learned Actions

Struggled with New Platforms Introduce prototype phase to understand technology and business process impacts

Under estimated stabilization Add 3 month standard stabilization timeframe for new platforms

Lack of stakeholder engagement

Enforce governance model and rigid gate 0 compliance

Weak Gate 1 Implement stakeholder signoff at Gate 1 of business


at Gate 1 of business requirements

Add Charter to Requirements scope review

Shortage of critical resources Targeted hires in skill gap areas

Implement resource constraint reporting

Complex Project Management Methodology and inadequate tools

Transform the methodology aligned with industry standards

Mandate PM tools and provided training and best practices

Lack of escalation of resource issues

Make the environment safe to escalate bad news in a timely fashion

The trip continued….

Year 2

Culture Overcompensating

PMO Model Hybrid

- Applications -Balanced Matrix

- Infrastructure – Strong Matrix

Portfolio Management Established Project Launch (Kick) Process

Project Charter Process Improvements


Estimating Improvements

Governance Improved Stakeholder Network governance

Standards & Best Practices Introduced Prototyping Project framework

Project Methodology Makeover

Lessons Learned Template improvements


PMO Steward Role

Project Quality

PM Expectations


Project has been Launched via KICK process and in Accept Status in PV.Project Charter complete and approved.Architecture alignment with Enterprise roadmap confirmed.Stakeholder network identified.Regulatory Impact Assessed.

Launch the project based on approved Project CharterGate 0: Initation

Gate Compliance Checks:Objective:Gate

Project has been Launched via KICK process and in Accept Status in PV.Project Charter complete and approved.Architecture alignment with Enterprise roadmap confirmed.Stakeholder network identified.Regulatory Impact Assessed.

Launch the project based on approved Project CharterGate 0: Initation

Gate Compliance Checks:Objective:Gate

Project Delivery Methodology -

PDX Framework


Asset Management Tasks completeSponsor agreement that Charter objectives have been satisfied, or revised with approvalLessons Learned CapturedProject Team Celebration taken placeAll Issues and Risks ClosedProject Stabilization Criteria metUpdates to Application portolio are complete

Confirmation from the project, sites, master data, and production support that the system stabilization has been achieved. Confirmation that the sites fully accept the system.

Gate 4A:Stabilization

Formal Business Project Lead Acceptance (of System Test results)Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Operations Service Delivery Ready for Go LiveGo / No Go Meeting ScheduledStabilization Criteria DefinedUser and Support Resources Training is CompleteBusiness Readiness Confirmed - Training Complete, Organization process changes implemented

Confirmation that cutover plans are in place, and all IT components (App, Data, Infrastructure), are ready for go-live. Confirmation that the sites are ready and committed to a successful implementation

Gate 3: Deployment Readiness and Approval

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Application Development Complete or On Plan for Go LiveData Cleanup Complete, Data Loads & Conversions Complete or On PlanInfrastructure Environments On PlanSystem testing is completeFormal Stakeholder Acceptance (of Config Buildout)

Development is Complete, or on plan to support go liveProject is on plan for go-liveSoftware can be migrated into production

Gate 2: Development and Verification

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Project resources are confirmed for the projectFormal Acceptance of Planned ScopeProject Cost, Schedule and Scope is complete, reviewed and base linedDesign is complete (Application, Data and Infrastructure)RM Confirmation that requirements are still aligned w/ Project Charter

Plans are complete for the project schedule, budget, resource needs, communication events, and risk responses.The project Scope and Design are complete and Ready to begin Development

Gate 1: Planning and Design

Asset Management Tasks completeSponsor agreement that Charter objectives have been satisfied, or revised with approvalLessons Learned CapturedProject Team Celebration taken placeAll Issues and Risks ClosedProject Stabilization Criteria metUpdates to Application portolio are complete

Confirmation from the project, sites, master data, and production support that the system stabilization has been achieved. Confirmation that the sites fully accept the system.

Gate 4A:Stabilization

Formal Business Project Lead Acceptance (of System Test results)Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Operations Service Delivery Ready for Go LiveGo / No Go Meeting ScheduledStabilization Criteria DefinedUser and Support Resources Training is CompleteBusiness Readiness Confirmed - Training Complete, Organization process changes implemented

Confirmation that cutover plans are in place, and all IT components (App, Data, Infrastructure), are ready for go-live. Confirmation that the sites are ready and committed to a successful implementation

Gate 3: Deployment Readiness and Approval

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Application Development Complete or On Plan for Go LiveData Cleanup Complete, Data Loads & Conversions Complete or On PlanInfrastructure Environments On PlanSystem testing is completeFormal Stakeholder Acceptance (of Config Buildout)

Development is Complete, or on plan to support go liveProject is on plan for go-liveSoftware can be migrated into production

Gate 2: Development and Verification

Compliance Manager(s) approvals(s) (e.g., SOD, FDA, PCI, Data)Project resources are confirmed for the projectFormal Acceptance of Planned ScopeProject Cost, Schedule and Scope is complete, reviewed and base linedDesign is complete (Application, Data and Infrastructure)RM Confirmation that requirements are still aligned w/ Project Charter

Plans are complete for the project schedule, budget, resource needs, communication events, and risk responses.The project Scope and Design are complete and Ready to begin Development

Gate 1: Planning and Design

Year 2 - Lessons Learned

Lessons Learned Actions

Projects coming in under budget and behind schedule – resource trashing

Need effective master planning p

1)Resource Management capabilities

2)Improved Change management

Charter Estimating being done by wrong group – buy-in missing

Move estimating into the supply teams (supervisors)

Estimates to Actuals Variance Analysis insufficient

Need to improve monthly variance cadence and reporting


Project scope management inconsistent Improve change management process and governance

Underestimated PM project schedule and budget management skills

Project Execution Fundamentals training

* cost & schedule management

Lack of business resources understanding project roles & deliverables

Roles and Responsibilities improvements

Project Kick off training

Project closure not timely – consuming overhead to monitor and track

Institute project closure timeframe expectations – performance measure

The trip continues…

Year 3

Culture Transitioning

PMO Model Strong Matrix

Portfolio Management Master Planning

Resource Management

Change Management


Governance Move Gate Review governance to business steering team

improve monthly variance cadence and reporting

Standards & Best Practices Create flexible paths through Project Methodology tailored to business needs with project execution quality




Develop PM Career Path model

All PMO members will be PM practioners

Year 3 – Focus AreaMASTER PLANNING - Overall Supply / Demand Balancing Approach

�List of projects�Driven business programs and ASR�Sequenced by ROI�Cross-project dependencies captured (IT and Business)

�Internal labor capacity outlook�Depicts time-phased supply of internal skills to work on Investment Projects

10

Business and IT Projects Driven by the EBITDA ProgramTotal Costs: Internal IT Labor & External Costs

Note: No provision or allowance yet provided for Sales / Use Taxes nor FX

Projects

CM

I

De

nta

l

Eq

uip

me

nt

EH

S

Fin

an

ce

HR IT

Le

ga

l

MF

AP

S

Pro

cure

men

t

RD

E, R

&I,

IP,

& T

C&

L

Rerg

Su

pp

ly C

hain

Sa

les &

Se

rvic

e

Tota

l

DMS003-1 : Equipment Mfg Changes 1,482

DMS003-2 : Equipment Mfg Changes 879EHS002 : MSDS Replacement 139

FI001 : Implement BW-SEM/BPS Module 1,808FI002 : Implement SAP for Practicworks - US 736

FI003 : Equip.Rev.Rec, R&D Reporting - Implement SAP PS 998FI005: Migrate Practiceworks International to SAP 705

FI007 : FCW--> SAP Conversion 884

HR003 : HR SAP Poliferation 2,728IT011: Complete Mainframe retirement 1,249

IT013 : Optimize Managed Server Services \ Data Center 1,396IT015 : Optimize Server Hardware Architecture 738

PR004 - Corporate Spend Control – Strategy 243RDE001 : Move R&D infra under IT server services-Shanghai 2,384

RDE002 : Replacement of EQDS/Teamcenter (infrastructure) 61

RDE005: Build out Centralized Global QA test infrastructure 37RDE008 : Synergy and Focal Point 26

RDE009: Softw Conf Mgnt Expansion 26SC003 : Replace ICOM with SAP 1,230

SC004 : Replace SUN with SAP 1,490

SC007A - Logistics NW Changes - US1 397SC007B - Logistics NW Changes - US2 314

SC007C - Logistics NW Changes - nonUS major 347SC007D - Logistics NW Changes - minor 40

SC007D - Logistics NW Changes - minor 40

Subtotal 2,361 139 7,851 2,728 3,383 243 2,534 1,138 20,377

Contingency 30% 30% 15% 15% 15% 30% 30% 30%Total w\ Contingency 3,070 181 9,028 3,137 3,891 316 3,294 1,480 24,396

20

2008 Internal Labor Utilization Forecast

111 111 111 111 111111 111 111 111

Demand Exceeds Supply

-5 -3

110

10

43

269

Apr-08

-4

103

10

46

255

May-08

0

89

10

41

247

Jun-08

0

81

10

38

237

Jul-08

16

60

10

33

231

Aug-08

27

47

10

25

221

Sep-08

33

37

10

24

215

Oct-08

50

-15

1019

215

Nov-08

57

21

10

25

215

Dec-08

Available capacity

CHIP IT Demand

KIR

Management and Admin

IT Investment Projects

16

Demand exceeds Supply

Lab

or

Capacity

(F

TE

)

Based on the current plans some capacity becomes available in H2

Project Demand Resource Supply


�Project demand expressed in-phased requirements for:

�Internal Skills �Funds availability

�Supply / availability of �Internal Skills �Funds�External Supply assumed not to be a constraint

5

8

10

5

5

5

5

5

10

1

3

1

5

31

1

Apr-08

16

Aug-08

31

12

1 13

1

GDW

Helpdesk/Desktop

HR

Master Data Management

4

7

4

3

4

3

Non SAP ERP

OTC

57

Dec-08

Finance

5

2

22

2

12

7

4

3

42

50

Nov-08

5

2

May-08 Jun-08 Jul-08

1

11

22

1

2

12

1

27

Sep-08

31

21

2

11

7

311

33

Oct-08

1

Project Manager

R&D

Sales and Marketing

Service

Telecom/Network

Architects

Manufacturing

TAS/BASIS

System Admin

5

8

10

5

5

5

5

5

10

1

3

1

5

31

1

Apr-08

16

Aug-08

31

12

1 13

1

GDW

Helpdesk/Desktop

HR

Master Data Management

4

7

4

3

4

3

Non SAP ERP

OTC

57

Dec-08

Finance

5

2

22

2

12

7

4

3

42

50

Nov-08

5

2

May-08 Jun-08 Jul-08

1

11

22

1

2

12

1

27

Sep-08

31

21

2

11

7

311

33

Oct-08

1

Project Manager

R&D

Sales and Marketing

Service

Telecom/Network

Architects

Manufacturing

TAS/BASIS

System Admin

383635 3927 32 3428 29 30 31 33

Q3

37

7/28/08

Quarter

Activity

Project 1

Project 6

Project 5

Project 4

Project 3

Project 2

Project Roadmap

Continuous Improvement will be ongoing

Quantifying Risk

Contingency Planning Guidelines

Automated Dashboading and Analystics

Effective use of Project Historical Data Analysis

Post Project Benefits Realization


Better Procurement Management

……..and more

The trip summary so farYear 1 Year 2 Year 3


Change Resistant

Afraid to escalate

Overcompensating Transitioning

PMO Model Executive Sponsorship

PMO elevated to report to CIO

Hybrid

- Applications -Balanced Matrix

- Infrastructure – Strong Matrix

Strong Matrix

Portfolio Management

Established a project scoring system and portfolio management process balancing risk, cost and return

Portfolio Planner Role created

Established Project Launch (Kick) Process

Project Charter Process Improvements

Estimating Improvements

Master Planning

Resource Management

Change Management


Portfolio Planner Role created Estimating Improvements

Governance Standard Project Status Reporting

Project Risk Review Process

Defined Project Stakeholder Network

Improved Stakeholder Network governance

Move Gate Review governance to business steering team

improve monthly variance cadence and reporting

Standards & Best Practices

PMO PMP Certified

Project Initiation & Project Closure Templates

Introduced Prototyping Project framework

Project Methodology Makeover

Lessons Learned Template improvements

Create flexible paths through Project Methodology tailored to business needs with project execution quality



PM Community forum established

PMO Website launched

Microsoft Project Schedule training

PMO Steward Role

Project Quality

PM Expectations


Develop PM Career Path model

All PMO members will be PM practioners

Where the journey is going

Strategic “Destination”

Culture Process Driven, results oriented with a focus on executionRespected and sought after

PMO Model PMO Model – Strong Matrix

Federated PMOs across the business

Portfolio Management Portfolio Management processes and tools that are leveraged by the business to achieve maximum return on investments

Governance Business ownership of projects


Governance

Standards & Best Practices

Standards and Best Practices adopted by the company

Lean with Quality

Strong lessons learned process


Ability to offer Project Managers and / or Project Manager coaching and training to the company

PMP Certified PMs

Value Consist, repeatable project delivery – on time, on budget, on scope with quality –that satisfies expected business benefits that match executive expectations

Key Takeaways

Must have executive sponsorship

Understand the organizations

are you able to lead a revolution or an evolution

Understand the stakeholders

who are the supporters, who are the naysayers

Determine what functions your PMO must have


How will it be staffed – what type of PMO

where will the PMs be reporting to

Prioritize

Execute each release as a project

GET STARTED

Plan, Do, Check, Act – Lessons Learned and Continuous Improvement

Love what you do

The PMO Value Journey….

….Prove the Value one bite


….Prove the Value one bite at a time!

Documents

PMO – The Value Journeyjourneyconsulting.org/.../assets/docs/SlidesPMO-The_Value_Journey... · PMO – The Value Journey ... CMI Dental Equipment EHS Finance HR IT Legal MFAPS Procurement