Selling PMO to Your Organization PMI-MN Breakfast Series September 14, 2004

Selling PMO to Your Organization

PMI-MN Breakfast Series

September 14, 2004

September 14, 2004

Selling PMO to Your Organization 2

Agenda

Abstract & Overview

Sales Objectives

Customer and Functional Landscape

Sales Strategies

Assessing your progress – and your success

Poll results

Q & A

September 14, 2004


Abstract

Many organizations today face ever-present pressure for short term tangible results.

PMOs (like other process functions) find it increasingly difficult to obtain funding.

PMOs offer the promise for improved project quality, consistency and visibility, which in turn permits timely and confident decisions making.

Justifying PMOs must go beyond intuitive or common sense arguments - value must be demonstrated and measured (e.g. quality, timeliness, costs)

September 14, 2004


Selling the PMO – an Overview

Process and efficiency areas must present and justify their operations in terms valued by the organization Contributions to bottom line should be more direct Value propositions need to be succinct and measurable,

in spite of limited resources to provide metrics or prove value

Justifications must tie directly to desired results of key sponsors and management

September 14, 2004


Selling the PMO – An Overview

PMOs must find a way to contribute to the company in terms which are Measurable Understood by management Aligned with stated corporate strategies

PMOs must be able to contribute For regular, expected activities For unscheduled, emergency situations

September 14, 2004


PMO Sales Objectives

Value measured in contribution to other critical objectives. Examples: Reduction of administrative time Swifter communication of actionable issues Improved satisfaction Consistency of project execution Improvement in projects’ ‘success criteria’

Demonstrate value regularly and visibly Risk: Promoting value without over promising the benefits and results

September 14, 2004


PMO Defined

What does the ‘P’ mean? Project Management Office Program Management Office Portfolio Management Office

The type of PMO desired impacts the strategy on how to sell the PMO

September 14, 2004


PMO Customer Landscape

Operational

Strategic

Executives

Executives

Sponsors

Sponsors

OwnersOwners

PMOPMO

Project Team

Project Team

Support & Maintenanc

e

Support & Maintenanc

e

PSOs*PSOs*

* Project Support Organization

September 14, 2004


PMO Function Landscape

PlanningPrioritization & alignment Delivery and executionMentoringReporting and visibility

Monitoring and/or trackingQuality assuranceRisk management Issue resolutionGovernanceTools, best practices

Examples

September 14, 2004


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Executives X X XSponsors X X X X XOwners X X XUsers/ConsumersProject Team X X X X XPMO X X XPSOs X X XSupport & Maintenance X X

Customer/Function Alignment

September 14, 2004


Selling Strategies

Planning Facilitates communication Oversees consistency completeness of content A central point for requests Consolidates and coordinates data into a cohesive

presentation Interaction across organization provides broader sense of

‘what is going on’

Transmits a common message, reduces confusion, simplifies & improves consistency, improves communications, enables development of portfolio management

Features / BenefitsFeatures / Benefits

September 14, 2004


Selling Strategies

Prioritization & Alignment Confirms portfolio allocations Facilitates Demand Management Aligns resources to company objectives Reduces risk of working on too many projects

simultaneously Speeds resource assignments to approved efforts

Organizes and manages future requests, governs resource issues, integrates scheduling, streamlines project workflow


September 14, 2004


Selling Strategies

Delivery & Execution Ensures projects are progressing Validates risks and issues Facilities minor problem resolution Mentors and aids project team in execution Project rescues

Improves compliance, assists lower skilled staff to become successful, contributes to project performance, reduces risk to projects


September 14, 2004


Selling Strategies

Mentoring Delivers directed education with immediate application Promotes Project Management principles and practices Provides training on roles and responsibilities Assists in use of tools and templates Communicates topics using a common language

Improves consistency of effort, contributes to professional development and project performance, promotes continuous process improvement


September 14, 2004


Selling Strategies

Reporting and visibility Consolidates performance and health into a common

format Early identification of trends and patterns Uses high impact vehicles (dashboards, etc) for all

projects Financial management

Clarifies communications, improves compliance, helps focus on key objectives, targets situations demanding attention, continues to aligns what’s important to decision makers and the project objectives


September 14, 2004


Selling Strategies

Project Monitoring and Tracking Independent evaluation of performance Confirms where improvements have been made and

future opportunities exist (lessons learned) Determines project earned value or ROI Supports Change Management practices

Provide independent assessment of progress, uncovers risks and issues, builds consistency in project control and integration , promotes reliable and credible expectations


September 14, 2004


Selling Strategies

Quality assurance Increases focus on ‘doing the right things’ Increases quality of ‘doing things right’ Reviews artifacts objectively Project Audits

Facilitates project execution, improves consistent controls and ensures all the proper processes are followed


September 14, 2004


Selling Strategies

Issue & Risk Management Assists stakeholders in driving open issues to closure Provides a framework to identifying risk Houses abatement and mitigation techniques Impartial assessment of projects

Helps keep projects on track; anticipates and deals with problems proactively, minimizes collateral damage of project problems on other work and the company


September 14, 2004


Selling Strategies

Governance Educates stakeholders on the roles and responsibilities Constructs and advises oversight groups for projects

and programs Referees conflicts/disputes within and across projects Escalates major situations to executive management

Brings clarity to project ownership, removes obstacles to project success


September 14, 2004


Selling Strategies

Tools and Best Practices Support for implemented tools Improves Project Management and Methodology

Maturity Delivers best practices to all PM practitioners Promotes common language to reduce

misunderstanding Maintains KM repository document libraries

Improves consistency, simplifies process workflows, contributes to project performance, promotes continuous process improvement


September 14, 2004


Strategy Assessment

Contract with sponsors to achieve results with

explicit success criteria

Define success metrics and timeframe

Communicate regularly Both status and successes

Reset expectations based on strategic changes

September 14, 2004


Local Survey Results

Survey distributed to recipients on on-line

PMI-MN newsletter

Survey period August 2-13

Members asked to forward to their PMOs

91 respondents

September 14, 2004



Distribution of PMOs (86 responses)Distribution of PMOs

71%

17%

7%10%2%

2%

1%

Project Program Portfolio

Project & Portfolio Project & Program All 3

September 14, 2004



Scope of PMOs (88 respondents)Scope of PMOs

38%5%

19%

38%

Enterprise Divisional / Local Both Other

September 14, 2004



Age of PMO (84 respondents)Age of PMO as of 2004

7%

24%

24%7%

2%

6%

5%

25%

Less than 1 year

1 - 3 years

3 - 5 years

5 - 10 years

10 - 15 years

15 + years

Unknown/Other

None

September 14, 2004



What function(s) does your PMO perform (86 respondents)?What functions does the PMO perform?

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September 14, 2004


Questions

September 14, 2004


ReferencesGeneral

PMFORUM www.pmforum.org Project Management Institute www.pmi.org PMI’s Knowledge & Wisdom Center - Pros and Cons of Project Offices

https://secure.pmi.org/memberapp/code/premium_content/kwc/KWCtopic_pmo.asp Center for Business Practices Project Management Resources http://www.cbponline.com/ gantthead.com http://www.gantthead.com Max’s http://www.maxwideman.com PMO USA http://www.pmousa.com PM Solutions http://www.pmsolutions.com ProjectConnections.com www.ProjectConnections.com Projects @ Work http://www.projectsatwork.com International Institute for learning, http://www.iil.com/free_resources/articles.asp Optimizec(IW) www.optimizemag.com CIO www.cio.com Computerworld (IDG) www.computerworld.com Project Magazine http://www.projectmagazine.com

September 14, 2004


ReferencesPMO Justification

Dinsmore, Paul C. Sixteen reasons not to implement a project office, PM Network 2002. February

Kerzner, Harold, Strategic planning for a project office, 2003 Project Management Journal 2003. June;

Lipper, Stan, An effective approach to establish a Program Management Office, 2003 Proceedings of the PMI Global Congress 2003 - N American

Kendall, Gerald I. And Rollins, Steve, How to Get Value Out of a Project Management Office (PMO), IIL, November 2002

Mullaly, Mark E., Making the Case For a PMO: Building Your Presentation, gantthead.com August 4, 2003

Mullaly, Mark E., PMP, Project Management: A New Definition, gantthead.com July 23, 2003 PMI® Project Management Software Survey. Newtown Square, PA: Project Management

Institute. 1999. Santosus, Megan, Project Management Office Discipline: Why You Need a Project

Management Office, CIO Magazine July 1, 2003 Ware, Lorraine Cosgrove, Best Practices for Project Management Offices, CIO Magazine

July 02, 2003

September 14, 2004


ReferencesPMO Definitions Archibald, Russell D, Project Management State of the Art – 2004 Archibald, Russell D, What CEOs Must Demand To Compete and Collaborate in

2005 Archibald, Russell D., and Vladimir I. Voropaev, Commonalities and Differences in

Project Management Around the World – A Survey of Project Categories and Life Cycle Models. Proceedings of the 17th IPMA World Congress on Project Management

Crawford, Lynn, J. Brian Hobbs, and J. Rodney Turner, Matching People, Projects, Processes, and Organizations’ Proceedings of the Project Management Institute Annual Seminars & Symposium, Oct. 3-10, 2002.

Bullock, James, The Top 10 Ways Software Projects are Different. http://www.pmforum.org/pmwt03/papers03-09.htm .

Dye, Lowell D., and James S. Pennypacker, Project Portfolio Managing and Managing Multiple Projects: Two Sides of the Same Coin?” Proceedings of the 2000 PMI Seminars & Symposium.

Documents

Selling PMO to Your Organization PMI-MN Breakfast Series September 14, 2004