31. What is the benefit of a PMO?

May 9 2012 by admin in PMO Definition |No Comments

A very common question I have heard at numerous organisations is “what is the benefit of a PMO”? The question is usually raised because somebody has been asked to set-up a PMO by senior management, they have experienced a lot of (negative) resistance and find them in the position of having to justify why it needs to be set-up. Unfortunately, saying “because I say so” or even worse “because senior management want it” are not an ideal responses.

In this post I want to share some of the important benefits so that you are ready when the question is asked.

Before covering the benefits, it is worth spending some time on why there is usually so much resistance.

Arguments to Resist a PMO

Bureaucracy

This reveals itself in statements like “this adds no value”, “I already report so providing information to you is duplication”, “this is an extra overhead on our time” or the all time classic “it takes my team away from doing important delivery work”.

Ambiguity

This is usually used at the start of a project. The project manager will say that everything is in early development and as soon as it has been finalised they will start reporting. This state can go on for many months without them reporting.

Spotlight

Many people like to control the message flow and keep information for themselves or to a close team. Reporting through a PMO shines a spotlight on progress and can lead to uncomfortable questions for the project manager. Hence, the desire to stay out of the spotlight.

No Authority

This is actually an issue due to failure of senior management. In many cases they do not know why they want a PMO. Therefore, they are reluctant to justify the creation to their peers and issue a formal notification of the authority of the PMO. This means the person charged with setting up the PMO finds it hard to get leverage with the project managers. If they don’t want to do the reporting they will play the bureaucracy card and escalate through their management. This can then result in the catastrophic case where the senior manager is confronted why he is setting up the PMO and they say “it does not really matter”. This is the point to seek a new role.

As you can see there are many arguments used to resist a PMO and project managers are very good at using them. So now for the advantages

Benefits of a PMO

Standardisation

Being able to develop a single method of reporting status and financials for projects greatly reduces the overheads to an organisation.  It reduces the time spent capturing numerous reporting formats with different interpretations.  It helps at the start of a project as the project manager does not have to spend time deciding what reporting templates and standards to use.

Where there are already active projects using different reporting formats, a smart PMO will offer to convert the reports to the new format, thus eliminating any claim of extra work to switch.

If a project manager plays the ace card of “we don’t have time to report as we are focusing on delivery”.  Ask them to provide what reporting format they are using and convert it for them.  If they are not producing a report, then they are not doing their job.  You can politely remind the project manager that an important aspect of project management is tracking and reporting status.

Independent View of Status

This is important for senior management.  Many projects appear to only go Red and fail close to the end.  This is because those close to a project always believe they will catch-up and meet the delivery dates / budget.  Unfortunately this rarely happens.

The PMO acts as the independent “eyes and ears” of management and can alert them to risks / issues early so as to allow timely interventions to be made.  It also helps the project manager to have someone who is not close to the project asking questions and making observations to risks they may have overlooked.

Improved Rigour

A solid, standardised approach to project management means is that there is more chance that the project will be approached with the correct rigour i.e. proper plans, budgets, resource plans, etc as progress is being monitored.  This translates into a high probability of a successful outcome.

Finally, there have been numerous surveys within the project management press that show that an organisation has a higher probability of delivering more of their change on time and within budget than those who do not.  This is why there has been a marked increase in the number of organisations setting up PMO’s over the past couple of years.

If you have any questions, please drop me a line.

Simon

30. PMO tools – practical PMO’s conduct an environment scan!

April 25 2012 by admin in PMO Mobilisation, PMO setup |No Comments

When you have been tasked with setting up a PMO, many of us want to get tools and processes up and running as quickly as possible.  This is a great attribute of a delivery focused person.  However, care is required as this desire usually means that our first choice is to implement tools and processes we have used before or, create new ones!.

The potential problem with this is that the organisation may already have it’s own tools and processes that are already being used.  Therefore, implementing a different set creates standardisation and duplication issues.  Important point to remember, project managers should be spending the majority of their time managing and delivering their project.  If you make their life harder and create extra overhead, you will not be popular.

So in order to avoid this, a practical PMO will conduct an environment scan.

PMO Environment Scan

This is simply a quick check across the organisation to understand what tools and processes are being used.  The steps should be:

1. Are there existing tools and processes for project delivery / reporting / PMO activity, etc?

If there are, meet with the appropriate owners, understand what is required, where you can source templates, reporting cycles, etc and then use them to construct your PMO.

Great for user buy-in as you can point to it being Group Standard!

If there are not any standards:

2. Review what is currently being used by projects, particularly those projects which will be in the remit of the PMO you are building.

This is a very smart move.  Work out what everyone is using and then choose / adapt what is already in place.  This is great for user buy-in as it is already being used and a project manager likes it when their tools get re-used.

If what projects are using is not fit for purpose (or non-existent):

3. Use / develop your own tools and processes.

In some cases, usually more immature organisations, there will be nothing that can be used.  In this instance, you can shine by implementing your own tools and processes.  This offers a great opportunity as professional tools and processes promote confidence and this will be recognised by senior management.  If it goes well, you are in a great position to push to apply your standards Group wide – probably good for the career.

If you don’t have your own project templates or don’t want to spend time developing them, think about the advantage of buying professional project templates.

The above steps should help keep you on the good side of project managers.

 

29. How to develop a PMO charter.

April 17 2012 by admin in PMO Mobilisation, PMO setup |No Comments

Everyone involved in project management knows the importance of creating a solid project charter at the start of a project.  However, it is not so common to develop a PMO charter when setting up a central PMO.

What is a PMO charter?

Very simply, a PMO charter describes the background purpose, objectives, organisation and services provided by a PMO.

Why is this a good idea?

The main reason is to avoid confusion and make it very clear the scope of the PMO (what they are responsible for), the contact points and what they will (and won’t) do.  This is particularly important for a central PMO where each of the projects may also have their own PMO’s.

What to include in the PMO charter?

Background

Provide the context why the PMO has been formed.

Purpose

Explain the purpose, vision and design principles (see blog post 27. PMO purpose, vision and design principles for more information)

Scope of PMO

This could be better termed “what we will do”.  Explain in bullet type statements what the PMO will do.  It is also a smart move to also detail what the PMO will not do so as to avoid any confusion.

PMO organisation structure

Include and organisation diagram of the PMO with the names and roles.  You can also add a separate table that details each PMO member, role and description of what they do.

PMO engagement model

It is sometimes useful to explain how the PMO will engage with the different projects and stakeholders.  This helps guide good lines of communication and helps avoid wasted time and effort with different chains of communications being set-up.

PMO services

Expand on the points raised under scope (“what we will do”), this will vary depending on what type of PMO is being set up.  The aim is to provide an understanding of each service being provided.  Where appropriate include details of the tools and processes you will be using.  If you don’t have a set of professional project templates take a look at my page that provides the advantages and benefits.

You may also wish to add additional points into the PMO charter that are appropriate to your own requirements.  Just add the additional headings.

Following the above will allow you to construct a good PMO charter.

28. Mobilisation Heatmap Offer – e-mail address

April 12 2012 by admin in Project Mobilisation |No Comments

It has come to my attention that the heatmap offer e-mail was not working correctly.  Firstly, please accept my apologies.

The error has now been corrected.  So please send your name and project template order reference to heatmapoffer@practicalpmo.com and I will send you my mobilisation heatmap.

Many apologies.

PS: tip for anyone using WordPress, in order to add an e-mail link to your blog post you need to replace http:// with mailto:

Simon

27. PMO purpose, vision and design principles

April 11 2012 by admin in PMO setup |No Comments

Unfortunately, in many cases, when a decision is made to set-up a PMO, all attention turns directly to the activities that need to be set-up with no consideration to the purpose, vision and design principles.  When you think about this it is very strange, you would not start on any activity on a project without defining the design?  So why do this for a PMO?

When I set-up PMO’s, I like to spend some time defining the purpose, vision and design principles for the PMO.  The aim being to capture these points on a single Powerpoint slide that can be easily understood and, more importantly, all stakeholders can connect with.

Purpose

A good place to start.  What is the purpose of the proposed PMO?  Why does it (need) to exist?  Aim to capture this in a single paragraph that all stakeholders will resonate with and agree it makes sense.

Vision

When you have a solid ‘purpose’ for your PMO, then you can think about the vision of how you see the PMO operating i.e. will it just be an administrative / reporting PMO or a fully functional pro-active PMO?  Will it own the delivery with the project managers reporting to the PMO or be a facilitator?  Ask your self (and the team) these questions and then capture this in 1 or 2 clear and precise paragraphs.

Design Principles

I like to define around 5 – 8 design principles for the design and ongoing running of a PMO.  These are a great reference to ensure that the PMO stays true to the mission.  While they will vary from organisation to organisation and by project, the following are good PMO design principles for most PMO’s.

Pragmatic – only do something if it is needed and adds value.

Fir for Purpose – avoid over engineering and duplication of tools and processes.

Transparency – ensure clear and consistent reporting (the principle of no surprises).

Consistency – ensure consistent and a normalised approach across all projects / programmes.

Strategic Alignment – ensure projects / programmes are aligned to strategic objectives (if not why are they being done?).

You can add more or adapt to your particular needs and requirements.

You can then refer back to these principles over the lifetime of the PMO to ensure that any proposed report, process, etc is really needed.  This approach will win you alot of respect with the project and programme managers and helps the PMO being labeled an administrative overhead.

Finally, the other test I like to apply is the “so what” rule.  When somebody proposes a new report, process, etc ask “so what if we don’t do it”, keep asking “so what” until you are happy there is a valid reason or there is realisation it is not required.

Simon

 

26. How to fast track project mobilisation

March 29 2012 by admin in PMO Mobilisation, Project Mobilisation |No Comments

In this post I want to share with you a proven method for a PMO to fast track the mobilisation of a programme, projects or workstreams.  This is an approach and tool that I have successfully used to mobilise a number of programmes at different organisations.

The Problem

One of the hardest part of mobilisation is to get momentum so that you can get the different projects / workstreams up and running.  At this critical phase, the last thing on the sponsors and programme managers mind is getting the right tools and governance in place.

This creates a problem for the PMO.  It is important to embed robust tools, processes and governance.  However, during mobilisation, there is so much that needs to be done that everyone wants to focus on mobilisation activities and for the formal aspects of PMO management to catch-up.

The big risk is how do you know that you are mobilising quickly enough, the right items are being delivered, sufficient controls in place and transparency to allow rapid intervention to get a project / workstream back on track?

My Solution

Over the past number of years I have refined a simple and effective process supported by a single page Heatmap.  While to many it is a simple one page document, it serves many purposes.

Project Mobilisation Heatmap

Project Mobilisation Heatmap

Shaping Portfolio / Programme / Projects / Workstreams

The design forces the Sponsors / PMO to think about the shape of the programme and then capture the relevant projects / workstreams onto each line of the Heatmap.  The aim is to capture the projects at a meaningful level.

Sponsors

When you have the structure, attention can be turned to who should sponsor each project / workstream on the page?  In many cases this will be obvious.  Where it is not, make an educated guess who you think it should be and then hold a meeting with relevant parties to confirm.

Project Manager

Each project / workstream should have a project manager.  At the start it may be a case that not all of them will have a project manager.  This is not an issue.

Project managers should be assigned based on suitable skills not just the fact that they are available.

Estimated Costs / Benefits

This should capture a high level view of the cost / benefits of the project / workstream.  This was added as whewn this one page summary is used in update meetings, senior management like to be reminded of the approx. cost and what benefits are attached to each project / workstream.  This allows them to focus and prioritise on those with the best payback.

Heatmap

This is the real power of the one page summary.

Along the top of the Heatmap is a number of headings starting with “Approved”.  These headings relate to key deliverables in respect of the projects / workstreams.

Each cell can then has a drop down where you can choose a status:

  • Red
  • Amber
  • Green
  • Not Started
  • Complete

This allows you to quickly and visually set the status of the particular mobilisation activity.  Underneath each cell is a date field where you capture the target date for completion or, if complete, the date of completion.

As you can see, it is very easy to scan the report and quickly focus in on the ones marked Red and Amber.

How it Works

During mobilisation, I like to set up a weekly reporting cycle as it is critical to get momentum behind the projects / workstreams.

Each week meet with the project manager and / or sponsor for each project / workstream.  If this is not possible contact them by telephone or e-mail.

As part of this exchange, capture a status update.  This should be short and focused capturing reason if overall status is Red or Amber, plans on how to return to Green and key updates.

Then go through each of the deliverables that is not complete and agree the RAG status of the deliverable and target date.

If there are issues to escalate, add these to the notes on the right hand side of the Heatmap.

When you have met with each project / workstream you will have a comprehensive view of the status across the programme.  As you have taken the time to meet each project manager, you should be confident that you have challenged them on status / progress and know the details on ones reporting Red or Amber.

Flexibility

The headers on the Heatmap can be changed and adapted to the needs of most programmes and still be effective.

Summary

This is a great approach and tool for the rapid mobilisation of portfolios and programmes.  It allows a light (non bureaucratic) approach that provides visibility and transparency without demanding time consuming updates from the project manager.

Once each workstream has completed the mobilisation activities and has a signed-off business case and budget, they can move to the more established PMO tools and processes with monthly reporting.

How to get a free copy of my Project Mobilisation Heatmap

I have spent time over the years developing and refining the Project Mobilisation Heatmap.  I know it works well as I have used it a number of times.  So I have decided to provide the Heatmap free of charge to everyone who purchasers the PMO and project templates.  This includes e-mail support on how best to use the Heatmap

Update

If recently purchased the templates, the heatmapoffer@practicalpmo.com link was not working.This has been resolved, so please e-mail your name and order number and I will send you the heatmap.

Simon

26. Roles and functions within a PMO

March 20 2012 by admin in PMO Roles & Responsibilities |No Comments

Following on from the previous post about the wider programme roles, in this post I want to cover the roles and functions within the PMO.

I would like to start by making the important point that there is not a single correct answer.  What works for one organisation may not work for another and a level of adjustments may be required.  However, there are common functions / activities that need to be covered.

PMO Functions

The diagram below gives an example of what functions may be contained in a PMO.

Owned V Leveraged

This is a very important point, especially if you want to be a true practical, value adding PMO that detests bureaucracy!

In some organisations, functions will already exist that can perform some of the required tasks i.e. HR, Procurement, etc.  Where this is the case, a smart PMO will plug-in and leverage the existing process.  This ensures compliance to standards and avoids the risk and effort of creating a new process.

What I would recommend is to ensure that the function providing the service provides a dedicated point of contact.  This then allows you to make sure that they feel part of the virtual team.

Likewise, if there is an Enterprise PMO in place, they will probably already own items such as Methodology and Training.  Again build a link and ensure that you align your PMO to their processes.

PMO Team

It is important to evaluate and understand what needs to be owned and what can be leveraged as this will influence the organisational design of your PMO.

Most PMO’s will probably need to consist of:

  • PMO Manager
  • MI and Reporting
  • Governance
  • Planning and Delivery
  • Financial Management

Depending on workload this could be structured as a resource taking ownership of Financial Management, another MI & Reporting / Governance and finally Planning & Delivery.  All would report into the PMO Manager.

You would then add additional resources depending on what services could not be leveraged.  When adding the roles think of similar activities i.e. HR and Demand / Supply Management may go together, Scope Management may fit with Planning & Delivery.  The aim is to make it logical so it is easy for your stakeholders and customers to understand.

One role that does work well is to have the Planning and Delivery resource(s) facing off to the programme / project managers.  This allows them to truly understand what is going on within the programmes / projects and offer assistance before risks become issues.  If this is going to be successful you need to ensure that the resource has sufficient delivery skills to add value and gain the respect of the programme / project manager (Note: this is where the build out of many PMO’s fail by thinking you only need junior admin type resources for all roles).

Remember my advice from an earlier post last year that all of the structure, roles, responsibilities of the PMO should be defined in a PMO Charter to ensure everyone understands.

Please refer to my post How to set-up a PMO and the related posts for more background on each of the PMO functions.

If you have any questions or comments please e-mail me at simon@practicalpmo.com.

25. The real roles and reposibilities of the people responsible for a programme

March 12 2012 by admin in PMO Roles & Responsibilities |No Comments

In post number 24, I talked about the roles and responsibilities of the PMO Manager.  In this post I would like to provide further context by showing the other key roles within project and programme delivery.

I will also provide an illustration of how the different roles interact and, how a smart PMO, can be involved at all levels.

The diagram below depicts a typical programme governance structure.  You will see the PMO is providing support and guidance at all levels.

PMO Roles

Typical programme governance structure

Steering Committee (SteerCo)

This should consist of senior management members who are empowered to prioritise and make decisions.  An effective SteerCo should be able to resolve and remove barriers to delivery that cannot be addressed by the programme.

Programme Sponsor

A programme sponsor is accountable for the successful delivery of a programme in line with the signed-off business case and the realisation of associated benefits.  Think of the business case as being a contract between the Programme Sponsor and the organisation i.e. “give me £100 and I will deliver you £200 in savings”.

It is very important to note that, while a Programme Sponsor can delegate the delivery to a Programme Manager, they cannot delegate accountability for the business case.  Therefore, it is important that they ensure that they are comfortable that a suitable Programme Manager is appointed.

A good Programme Sponsor must take an active interest in how the programme is progressing so as to ensure it is being delivered to plan and within agreed budget.

A good Sponsor will also provide the required level of support to make the Programme Manager successful.  This makes complete sense as the success of the Sponsor and Programme Manager are linked.

In summary, the Programme Sponsor must be “passionate” about the business case to give the best chance to succeed.

Programme Manager

Responsible for the complete end-to-end delivery of the programme so as to deliver the business case on behalf of the Sponsor.

This means accountable for all aspects of Business, IT and 3rd party deliverables.  It is no good if the Programme Manager does not feel accountable or have control of all aspects.

It is a bad idea to have 2 programme managers, one responsible for Business the other for IT.  This allows for accountability to fall down the “cracks in the pavement”.

By all means appoint a programme manager for Business and one for IT if the programme is large and complex.  However, have a very clearly defined programme structure showing that there is one clear programme manager responsible to the Programme Sponsor.

It should also make it clear that the IT and / or Business programme manager is reporting to the overall programme manager NOT the IT or Business function.

Get the structure right at the start with clear communication and you will be on a solid foundation for success.

Project Team

This is where the work takes place to complete the work packages that make up the deliverables of the programme.

The team should be structured in a way each team member knows what they are responsible for, what they need to deliver and by when.

Where possible co-locate the team members.  Not only does it make for a more efficient way of working.  It greatly improves communication and most important of all, makes everyone feel part of one team.

Stakeholders

There will usually be a number of stakeholders in the organisation who either have a vested interest, impacted or need to be consulted.  Not all Stakeholders are made equal.  Therefore, it is highly recommended that you conduct a Stakeholder Analysis and management plan.

The PMO is ideally placed to help the information flow to and from Stakeholders and help ease the way of the programme.  Many issues actually occur because people do not feel included or opinion sort.  Good communication goes a long way to address this potential issue.

Summary

While this post does not cover the normal basics of the roles and responsibilities, it more importantly provides the context of how the different ‘players’ need to interact and what is really important.

Any questions or thoughts, drop me a mail at simon@practicalpmo.com.  If you find this or any of my other articles helpful, please share with your colleagues.  Thank you.

24. PMO Manager roles and responsibilities

March 2 2012 by admin in PMO Roles & Responsibilities |No Comments

In this post I would like to spend some time considering the role of the PMO manager.

If an organisation is serious about improving the project delivery capability through a PMO, it is very important that the right candidate is appointed to the role.

Unfortunately, as many organisations view the PMO as an administrative centre, they automatically assume that it does not need experienced resources with solid project management skills.  This often leads to a PMO being staffed and led by junior resources with no or very little experience.

This causes a fundamental issue – lack of credibility to the project community.  It will be very difficult for a PMO to implement tools, standards and try to engage and help the project teams, if the project teams know they have no experience.  There will soon be discussions with stakeholders that the PMO is trying to implement bureaucratic processes that add no value and take time away from real delivery.  While this is not true, the PMO will find itself spending a lot of valuable time trying to correct this perception

If an organisation is serious about project delivery they need to:

  • Recognise the importance of the PMO
  • Appoint experienced professionals
  • Ensure that there is a clear mandate and sponsorship

Doing this opens the way to appointing a suitable PMO manager.

 

PMO Manager role and responsibilities

While this will vary by organisation and type of PMO, it can include:

  • Define and build PMO
  • Appoint / recruit PMO resources based on PMO model
  • Define organisational model
  • Provide reporting to senior management and stakeholders
  • Ensure alignment to strategy
  • Create working relationships with project managers and other PMO’s
  • Facilitate governance process
  • Overall risk management to identify themes
  • Facilitate dependency management across the projects and programmes
  • Facilitate change control process
  • Track deliverables and benefit realisation
  • Mentor project managers
  • Responsible for tools, standards and methodology i.e. project management templates
  • May line manage project managers for a pro-active / managerial PMO

 

PMO Manager skills and experience

  • Typically a solid project / programme manager
  • Real experience of project delivery
  • Commercial outlook
  • Pragmatic
  • Trustworthy / honest
  • Very good stakeholder skills
  • Exceptional communication skills
  • Strong leadership

Choosing the right person to lead a PMO can make a dramatic difference to the value that the PMO delivers.

If you have any questions, please contact me on simon@practicalpmo.com.

23. PMO Mobilisation

February 22 2012 by admin in PMO setup |No Comments

The mobilisation of a PMO can appear daunting, especially if you organisation does not have an established PMO methodology and you have not set one up before.  Therefore, I wanted to spend some time in the post to provide a framework that can be used to build and establish a PMO in 4 weeks.

Fast track PMO mobilisation

PMO Mobilisation

Establishing a PMO should be thought of as a project.  You need to ensure you complete the correct activities as part of a plan.  Breaking the steps down is very important as it makes the whole task look less challenging, helping you feel in control and avoiding the feeling of overwhelm.

4 Week Plan

My framework breaks the activities into ‘bite size’ chunks that can be achieved over a 4 week period.

Week 1 Action Plan

Activities to be addressed.

  • Confirm PMO sponsor (very important see my post on PMO Sponsorship)
  • Appoint / formal notification of PMO lead
  • Start work on PMO charter
  • Draft PMO organisation
  • Capture roles and responsibilities

 

Week 2 Action Plan

  • Environments assessment (what tools, processes, templates exist).  Remember my tip of buying project management templates to save valuable time)
  • Define portfolio of projects
  • Establish governance process
  • Define communication strategy

Week 3 Action Plan

  • Define reporting / dashboards, etc
  • RAID’s
  • Cost Management
  • Benefit Management
  • Resource Management
  • Planning
  • Change Control

Week 4 Action Plan

  • Hold briefing sessions with stakeholders
  • Finalise and issue PMO charter (should include all items above)
  • Publish reporting calendar

Week 5 into business as usual

Week 5 is where you get the processes and reporting routines embedded into the projects / workstreams.  There will be issues so don’t be afraid to fine tune the process.  Making changes is a sign of a mature PMO and will gain you credit with the project teams.

Conclusion

Remember this is a framework and, as such, can and should be adjusted to be made fit for purpose.  Don’t be afraid to experiment and find what works best for you and your organisation.

Likewise, you can accelerate some of the activities, run some in parallel, add to, eliminate, etc.  The principle is what works best.

Take a look at my post on how to setup a PMO for more information

If you have any questions please drop me a line simon@practicalpmo.com.

 

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