Download Aligning PMO Foundations for Maximum Value

Aligning PMO Foundations
for Maximum Value
Presented by: David W Burr, PMP, ITIL
David W Burr
Part of the “Missing Piece” Series
[email protected]
Learning Objectives
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Understand key considerations that influence
establishing a PMO
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Understand the impact on Return on
Investment (ROI) of appropriately positioned
PMOs
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Identify how the organization’s culture and
maturity impact the PMO
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Understand the importance of defining and
measuring success criteria
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
2
Where do we start?
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We need a PMO! But why??
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Everyone else has one
It’s the “Silver Bullet”
Air plane magazine article / Symposium attendance
Flavor of the month
Fact finding “2 by 6” (working sessions)
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Why are we here? (forward looking)
Current State (reality)
Future State (realistic)
What’s in it for me (projected benefits)
Success definition
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
3
What factors influence PMO ROI?
Sponsorship
 Alignment with the organization
 Organizational positioning
 Organizational role of the PMO
 What the PMO owns and influences
 Change management
 Process and success definition
 Rewards and recognition
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Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
4
Sponsorship
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Leadership versus Management
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Leading means doing the right things
Managing means doing things right
Who’s waving the flag
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Do they have the juice?
Leaders need to be seen, heard, unified,
consistent
Set 360o expectations and accountability
Encourage and support
Manage “up” a ½ hour a week
Leaders at all levels
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
5
PMO Organizational Alignment
(1 of 2)
One or Many?
 By functional group, discipline, or silo?
 Cross Line of Business?
 Business or IT, Marketing or Sales,
R&D or Manufacturing?
 Business and IT, etc?
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Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
6
PMO Organizational Alignment
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(2 of 2)
Bridging the gap between cross
functional PMOs
 We’re
on the same team
 We want the same results
 We define success similarly
 Collaborate!
 Saves
time
 Helps identify defects … earlier
 Works … require it!
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
7
PMO Alignment or Effectiveness
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(1 of 2)
Alignment:
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Theory:
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The degree to which the [support] group understands
the priorities of the business and expends its resources,
pursues projects and provides information consistent
with them.1
Practice
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Support personnel alignment with each subset of the
organization
Complexity leading to inefficiency and ineffectiveness
Fragmentation, redundancy, and subscale operations
High Complexity = High Cost
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
8
PMO Alignment or Effectiveness
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(2 of 2)
Effectiveness:
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Theory:
 Getting
projects done as specified, on budget,
and on schedule
 Practice
A
very small % of Executives believe their
IT capability is highly effective, that IT
ran reliably
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Synch up strategies not personnel
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
9
The Three Levels of a PMO
CEO
Manufacturing
Maintenance
R&D
Business
Production
Finance
PMO
PMO
Projects Projects
Projects Projects
Projects Projects
Projects PMO
Projects PMO
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
10
The PMO Role
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Levels of PMO interaction with projects
 Monitor
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Mentor
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Data collection and reporting of high level status
No accountability for delivery execution
Observe and evaluate activities
Guidance and shared accountability
First-hand awareness supporting detailed reporting
Participation in complex, high risk activities
Manage
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Full accountability for execution and delivery
Complete resource management and direction
Comprehensive reporting
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
11
Ownership and Influence
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
(1 of 2)
12
Ownership and Influence
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
(2 of 2)
13
Change Management and Pain
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What is the impact of change?
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Benefits and detriments
Business and people
Short term and long term
Skills and behaviors
Ownership and accountability
Everybody wants things to be better, but nobody
wants them to be different
The Executive Misunderstanding
Truly lead
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
14
Change Management Quiz
 Quiz:
What
is the most difficult
management level to change?
A
B
C
Individual Contributors
Middle Managers
Senior Leaders
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
15
Cultural and Maturity Change
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Maturity level: Correlation or
Disconnect
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Maturity level assessments
What is your current culture?
Very traditional
 Baby Boomer
 Gen X, Y or Z
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Get faster slower
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
16
Process Improvement Tools
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Stock up your toolbox
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PMI
CMMi
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Staged, Continuous, or Both?
ITIL
Six Sigma
Lean
Methodologies
Policies, procedures, standards, best practices
Simplicity, tailoring and scaling
Don’t be a slave to any one tool
Bottom Line - Add value!
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
17
Process Quality Assurance
Don’t expect what you don’t inspect
 PMO and your town police
 What’s happening if PQA is getting no
voluntary feedback or very few
questions?
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Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
18
Metrics
Why measure?
 What do we measure?
 Are we ready to measure?
 The curse of the initial baseline
 Now that we’ve measured, now what?
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Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
19
Success
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Aspects of success
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Technical
Behavioral
Organizational
Financial
Market Share
Stock Price
ROI
How do you reward success?
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Applaud gallantry but analyze the root cause
Reward the desired behaviors
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
20
Next Steps
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Raise awareness of PMO benefits (marketing)
Define success criteria
Gain Executive sponsorship
Initiate
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E.g. All green projects and estimation
Identify and prioritize risks and issues
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Don’t wait for perfection
Define reality
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(1 of 2)
Uncover their root causes and reprioritize
Define measurement process
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
21
Next Steps
(2 of 2)
Plan, Execute, Measure, and Control
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An owner for every process
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Time-box the development and efforts of the PMO
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With great power comes great responsibility1
A series of small successes
Work expands to meet the time allotted for its completion2
Get faster slowly
Communicate until you’re sick of it, and then …
Gather, analyze, share, and incorporate Lessons
Learned
Promote Continuous Process Improvement
Celebrate and team build (frequently)
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
22
Questions?
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Things that make you say Hmmm???
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Initial planning is the most vital part of a project. The
review of most failed projects indicates the disasters were
well planned to happen from the start.
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The nice thing about not planning is that failure comes as a
complete surprise, rather than being preceded by a period
of worry and depression
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Everyone asks for a strong project manager – when they
get one they don't want one
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We figure it's more profitable to have 50% overruns than to
spend 10% on project management to fix them
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
23
Thank You
Aligning PMO Foundations
for Maximum Value
Presented by: David W Burr, PMP, ITIL
Harbur Consulting
PO Box 546
Hebron, Connecticut, USA
[email protected]
Aligning PMO Foundations for Maximum Value
Part of the “Missing Piece” Series
24