Welcome to London’s First

Conference

The Global State of the PMO

J LeRoy Ward

Global State of the PMOMATURITY IMPROVES BUT VALUE MEASUREMENT MISSINGJ. LeRoy Ward, PMP, PgMP, PfMP, CSMESI International

2015

It’s every man for himself.

Captain Edward J. Smith of the R.M.S. Titanic speaking to the ship’s

Morse Code operators.

Here’s what we’ll cover

Survey Quick Facts01Value & Effectiveness

Skills & Career Development

Role in Supporting Agile

Challenges & Obstacles

02

03

04

05

© 2014 - All information in this document is copyright protected and the property of ESI International, Inc.

SurveyQUICK FACTS

01

75% PROJECT STAFF

7% EXECUTIVES

42% FROM ORGS >10,000 EMPLOYEES

65% FROM MNCS

4 TYPES OF PMOs REPRESENTED

ESI’s 4th Global

Survey

900+RESPONDENTS

16INDUSTRY SECTORS

5CONTINENTS

OUR Take

75% PROJECT STAFF

7% EXECUTIVES

42% FROM ORGS >10,000 EMPLOYEES

65% FROM MNCS

4 TYPES OF PMO’S REPRESENTED

900+RESPONDENTS

16INDUSTRY SECTORS

5CONTINENTS

Knowledgeable & experienced respondents

Multiple perspectives (roles) represented

Weighted towards large organizations & IT professionals

Multiple types of PMOs represented

Broad industry coverage

Good geographic distribution

Now, let’s “DIVE” into the key findings!

© 2014 - All information in this document is copyright protected and the property of ESI International, Inc.

The Value & Effectiveness OF THE PMO

02

Has the PMO’s role, function, or value been challenged?

No64%

Yes36%

Who has challenged the PMO?

SR MGMT

PROJ MGRS

LINE ORG

C-LEVEL EXECS

PROGRAM MANAGERS

CUSTOMER/PROD OWNER

OTHER

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

72%

36%

27%

23%

22%

34%

4%

Who funds the PMO?

0%

10%

20%

30%

40%

50%

60%

57% 46% 19% 57%17% 15% 31% 15%14% 17% 35% 14%

Project Budgets

Program Budgets

Corporate Overhead

Enterprise WIDE

Project/ProgramLEVEL

Center of EXCELLENCE

DepartmentLEVEL

Reasons for questioning the PMO’s value

Lack of recog of PMO value

Lack of prog/proj maturity

Lack of exec/stkhldr support

Seen as too bureaucratic

Lack of skilled PMO resources

Not aligned to strat

PMO not fit for use

Lack of PMO leadership

Other0% 10% 20% 30% 40% 50%

44%

41%

32%

31%

27%

24%

24%

21%

16%

44%

41%

31%

27%

24%

32%

24%

21%

16%

TOP 4reasons why PMOs were

321 Organizational restructuring

Change in senior management

Seen as too bureaucratic

4 Not fit for use

Was terminating the PMO a good idea?

NO60%

YES20%

Maybe16%Don’t Know

4%

1. Methodology, processes and standards

2. Management reporting3. Project management tools4. Portfolio management5. Planning6. Governance

Top Six Services OFFERED BY PMOs

PMO evolutionary/maturity stages

Dashboarding

Dev meth/proc

Mng PM res

Mng dependencies

Track Proj ROI

Mng port health

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

NOT PART OF REMIT

NOT FULLY IN PLACE

STILL EVOLVING

FULLY EMBEDDED

S1

S2

S3

S4

S5

S6

To what degree does the PMO fulfill its role?

Poor Fair Good Very Good Excellent

2% 24% 45% 24% 5%

Perceptions of PMO service fulfillment by role

Director/VPHead of Proj/ProgNone of the above

Bus/Func MgrPort MgrProg MgrProj Mgr

PMO MgrPMO Spec

PMO AnalystProg Coord

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Poor Fair Good Very Good Excellent

Perceptions by relationship to PMO

PMO Manager

Interface with PMO

Report through PMO

Work in PMO

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Poor Fair Good Very Good Excellent

Improvements attributed to the PMO

Improved train/dev

Improved proc/stds

Better res mgt

Better comm

Better reporting

0%10%

20%30%

40%50%

60%70%

80%90%

100%

Very Ineffective Ineffective Neither Effective Very

EffectiveDon’t Know

Does the PMO measure and report its effectiveness to Execs and others?

DON’T KNOW

12%NO

23% YES65%

What criteria is used for measuring PMO effectiveness?

Proj deliv on time/budget

Prog/Proj status visibility

Strat align

PM method

Res util & staffing

Cust sat

Svc util of the PMO

PM training rates0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

78%

68%

60%

53%

52%

45%

33%

25%

78%

68%

53%

52%

45%

60%

33%

25%

CUSTOMER SATISFACTION: A never-ending quest for the truth

Hotels Rental car agencies Airlines Hospitals Training providers Conference organizers Dr’s offices and……….

The Customer is ALWAYS....

You’re asked for your opinion everywhere!

PMO

Performance against metrics in past year

Proj deliv on time/budget

Prog/proj status visibility

Strat align

PM method

Res util & staffing

Cust sat

Svc util of PMO

PM training rates

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Much Worse Worse Better Much Better

Understand and address challenges from Senior Management

Provide more support for PMs who don’t work in the PMO

All PMOs need to measure their effectiveness

Tackle more strategic activities such as determining project ROI

OUR Take

© 2014 - All information in this document is copyright protected and the property of ESI International, Inc.

THE PMO’S ROLE IN Skills & Career Development

03

Industry-sector perceptions of project staff skills

Aero/Defense

Automotive

Energy

Entertainment

Fin Svcs

IT

Manufacturing

Pharma/Healthcare

Prof Svcs

Telecom0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Poor Adequate Good Very Good

These guys need

to get their PMP!

Skill perceptions by size of organization

100 - 250 251-500 501-1,000 1,001 - 5,000 5,001 - 10,000

0%

10%

20%

30%

40%

50%

60%

EMPLOYEES

Very Poor Poor Adequate Good Very Good

Even high-performing organizations agree that PM skills need improvement

Very Good Good Adequate Poor Very Poor0%

10%

20%

30%

40%

50%

60%

<25% <50% 50%-75% >75%

Is the PMO involved in training/skills development?

YES69%

NO27%

YES61%

NO34%

YES60%

NO30%

YES65%

NO27%

Enterprise WIDE

Project/ProgramLEVEL

Center of EXCELLENCE

DepartmentLEVEL

How is the PMO involved?

Owns comps

Method tr

aining

Hard sk

ills tr

ain

Soft skills

train

Coaching

Cert pre

p

Proj re

l train

Other

Mento

ring

0%

10%

20%

30%

40%

50%

60%

70%

80%Enterprise

WideDepartment

LevelProject/Program

LevelCenter of Excellence

Training opportunities and relationship to the PMO

Manage the PMO

Do not work with PMO

Interface with PMO

Report through PMO

Work in PMO

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

NO YES

PMOs Exposed!64% Don’t Measure

Training’s Impact

How do PMOs measure training’s impact?

Post train evals

Follow up evals

ROI

Other

0% 10% 20% 30% 40% 50% 60% 70% 80%

68%

56%

32%

6%

68%

56%

6%

32%

Wait, It Gets Worse!Only 34% of PMOs Help PM’s Sustain New Skills

Dr. Hermann Ebbinghaus

No matter how thoroughly a person may have learned the

Greek alphabet, he will never be in a

condition to repeat it backwards without

further training

Use it or lose it!

verwenden Sie es

oder verlieren

Sie es

The Ebbinghaus Forgetting Curve

Ref: www.Revunote.com retrieved May 26, 2015

MEM

ORY

RET

ENTI

ON

%

ELAPSED TIME (DAYS)

Forget 40% of what I said since I

started talkingForget half of what I saidForget my name

& most of what I said

Forget you attended this

conference and that I exist!

6 techniques used by PMOs for sustainment

Coaching

Follow-up discussions

Pre-learning discussions

Collaborative learning

Stretch Assignments

Peer Support

Other

0% 10% 20% 30% 40% 50% 60% 70%

60%

57%

55%

38%

36%

33%

2%

60%

57%

55%

38%

36%

33%

2%

Sustainment and perception of PMO role fulfillment

ExcellentVery GoodGoodFairPoor

YES

NO

YES

NO NO NO NO

YES YES YES

Does your organization provide a career path for project managers?

46% 46%

Jeez, I don’t know….

That’s above my

paygrade!

PM career path and project performance

>75% (To T/B/S/CSAT)

Between 50% and 75% (To T/B/S/CSAT)

<50% (To T/B/S/CSAT)

<25% (To T/B/S/CSAT)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NO38%

NO42% NO

70%NO87%

YES55% YES

50%

YES27% YES

13%

Training effectiveness should be measured and in multiple ways

Provide more opportunities for “soft skills” training

Engage in more sustainment activities If possible, create some type of career

path or ladder

OUR Take

© 2014 - All information in this document is copyright protected and the property of ESI International, Inc.

THE PMO’S ROLE IN AGILE04

Agile Use & Experience

54%

USE CONSULTANTS TO HELP RUN AGILE PROJECTS

56%

NUMBER OF AGILE PROJECTS INCREASING

40%

USE AGILE METHODS ON PROJECTS 60% say they use on selected projects

66%

LITTLE OR NO PRACTICAL EXPERIENCE WITH AGILE

Why Agile is so hard to implementChanging the culture

Changing from traditional

Right leadership to drive change

Upskilling the teams

Understanding Agile's value

Motivating teams to use Agile

I don't know

Other

0% 10% 20% 30% 40% 50% 60%

53%

44%

43%

31%

20%

13%

31%

9%

Most significant challenges for supporting Agile?

Lack of trained resources

Don't understand PMO's role

No clear Agile philosophy

No agreed to Agile framework

Resistance to Agile

I don't know

Other

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

45%

39%

32%

31%

12%

26%

7%

How are PMOs supporting Agile?

Provide Agile training

Provide coaching/mentoring

Create a new methodology

Create consistent approach

Create new reporting processes

I don't know

Other

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

43%

42%

38%

37%

12%

35%

8%

Clarify and agree on PMO’s role in Agile adoption and practice

Position the PMO as the “change agent” of Agile methods

Help organization decide on a specific Agile approach

Ensure Agile training is available to all practitioners

OUR Take

© 2014 - All information in this document is copyright protected and the property of ESI International, Inc.

Challenges & Obstacles

05

Main challenges facing the PMO

1. Resources2. Portfolio Management:

aligning projects to strategy3. Defining/clarifying the

PMO’s role 4. Agile support5. Training & skills development6. Budget & funding issues

Can someone help me get

up?

When’s recess?

One last finding!

This survey is TOO

LONG!

This survey is TOO

LONG!

ESI InternationalTel: +44(0)20 7017 7100Email: enquiry@esi-intl.co.uk Website: www.esi-intl.co.uk

Questions?