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Optimize Process and Project Management through the PMO

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Title: Optimize Process and Project Management through the PMO


1
Optimize Process and Project Management through
the PMO
Enterprise Project Management
  • Walter A. Viali, CSQA, PMP
  • UH April 6, 2005

2
Agenda
  • Whats the Big Deal?
  • Process and Project Management to the Top
  • Where Do We Want to Be?
  • How Do We Get There?
  • Why the SEI CMM (and the CMMI)?
  • What About Certification?
  • Enter PMI and QAI
  • An Enterprise Project Management Maturity Model
  • Wheres the Bang for the Buck?
  • How Can We Do Things Right and Fast?
  • How Do We Manage This Whole Thing?
  • Developing a PMO Implementation Plan
  • PMO of the Future?
  • Lessons Learned and Conclusion

3
Whats the Big Deal?
4
From the Standish Group...
  • 17 of projects succeed
  • 31 of projects fail
  • 52 of projects are challenged
  • Cost and/or schedule performance
  • 78 billion dollars total project waste (against
    250 billion in project spending)

The Standish Group 1994 Chaos Report
5
From the Standish Group...
  • 34 of projects succeed (100 improvement over
    1994)
  • 15 of projects fail (down from 31 in 1994)
  • 51 of projects are challenged
  • 55 billion dollars total project waste (against
    255 billion in project spending)
  • 38 billion in lost dollars for US projects in
    2002
  • 17 billion in cost overruns

The Standish Group 2003 Chaos Report
6
Project Failure
  • The major cause of project failure is not the
    specifics of what went wrong, but rather the lack
    of procedures, methodology and standards for
    managing the project.
  • Source InfoWeek, 1996

7
Success Criteria Points
  • User Involvement 19
  • Executive Management Support 16
  • Clear Statement of Requirements 15
  • Proper Planning 11
  • Realistic Expectations 10
  • Smaller Project Milestones 9
  • Competent Staff 8
  • Ownership 6
  • Clear Vision Objectives 3
  • Hard-Working, Focused Staff 3
  • TOTAL 100

61/100
"We know why projects fail, we know how to
prevent their failure -- so why do they still
fail? Martin CobbTreasury Board of Canada
SecretariatOttawa, Canada
8
Process and Project Management to the Top..
9
CIO Priorities Top 10 Management
Issues(1999-2003)
  • 1. Business/IT Fusion
  • 2. Demonstrating Business Value
  • 3. IT Skills (Recruit, Retain, Re-skill)
  • 4. Y2K Clean-up/Contingencies
  • 5. "Sourcing" Management
  • 6. IT Governance
  • 7. Process/Project Management
  • 8. MA IT Integration
  • 9. Knowledge Management
  • 10. IT Organization

Gartner Group (11/16/98)
10
Where Do We Want to Be?
11
Where Do We Want to Be?
  • Improved project management and process
    management practices based on
  • A portfolio view of projects aligned with a
    strategic business plan
  • Defined processes for different types of projects
  • A uniform project management process to support
    the software processes
  • Integrated business and quality controls
  • Viable tools to support process, project
    management and project portfolios

12
Managing Portfolios of Projects
Managing Projects

13
Establishing Project Portfolios
BUSINESS STRATEGY A
BUSINESS STRATEGY B
BUSINESS STRATEGY C


IT PORTFOLIO B
TOTAL COST
TOTAL BENEFITS
PROGRAM X
PROGRAM Y
COST
BENEFITS
COST
BENEFITS
PROJECT 1
PROJECT 4




PROJECT 2
PROJECT 5








PROJECT 3
PROJECT 6
14
Project Portfolio Priority Matrix
Project Name/Business Strategy
____________________________________
Business Project Manager ________________________
_________________
Company Name

I.T. Project Manager ____________________________
_________________

As Of Date ___________________
Strategic Priority _______________
Market Share
Infrastructure
Cost to Compete
Mandated
Profitability
Initiative creates profitability to organization
Initiative increases market share
Initiative improves organization infrastructure
Initiative enables organization to compete
Initiative is required
Does not improve service
Does not improve Infrastructure
Does not improve competition ability
0
Initiative is not mandated
0
0
Does not improve Market Share
0
0
Reduces cost somewhat of existing infrastructure
1
State mandated within fiscal year
1
Improves somewhat ability to compete
1
Less than 1M in first year
1
Strong potential to increase Market Share
somewhat over next 2 years
1
Federally mandated within fiscal year
2
2
Reduces cost moderately of existing infrastructure
Improves moderately ability to compete
Greater than 2M in first year
2
2
High risk of State penalty if not implemented in
fiscal year
Strong potential to increase Market Share
somewhat over first year
3
2
Improves significantly ability to compete
Less than 5M in first year
3
Reduces cost significantly of existing
infrastructure
3
3
High risk of Federal penalty if not implemented
in fiscal year
4
New industry product
3
New industry product
4
Moderately reduces cost to compete
4
Provides competitive advantage
Significant impact right away
4
4
Industry leader
5
Large Penalty to the Business if not implemented
in fiscal year.
Significantly reduces cost to compete
5
5
Industry Leader
5
Market Owner
5
__ x .4 __
__ x .3 __
___ x .15 __
___ x .1 __
___ x .05 __
15
Project Portfolio Summary
16
Project Portfolio Reporting
17
I.T. and Project Governance
I.T. Governance
Operating
CEO
CIO
Departments
Senior
Project
Senior
Project
User
Sponsor
IT
Governance
Level of Project
Project Manager
Governance staffing tied
to project visibility and
PMO
delegation of authority
Project Team
QA
18
Managing Portfolios of Projects
Managing Projects
19
Process/Project Management Business and Quality
Controls
Business Controls (Management)
Discipline-Specific Template (Web Dev., CSOO,
Support, etc.)
PM Process
- Resources - Schedule - Cost
Stage 1
Stage 2
Stage 3
Stage 4
Technical Tasks
Technical Tasks
Technical Tasks
Technical Tasks
Lessons Learned
T e c h n i q u e s
Quality Controls (Technical)
T o o l s
- Product Quality - Technical Standards
Compulsory End-Stage Assessment Meeting
Quality Review Meetings (Scheduled as
needed by Project Type, Activity Type,
Deliverable Type
Stage 1, 2, 3, 4 (for example Initiation,
Development, Implementation, Closure)
Compulsory Quality Review Meeting
20
I.T. and Project Governance
I.T. Governance
Operating
CEO
CIO
Departments
Senior
Project
Senior
Project
User
Sponsor
IT
Governance
Level of Project
Project Manager
Governance staffing tied
to project visibility and
PMO
delegation of authority
Project Team
QA
21
How Do We Get There?
22
How Do We Get There?
  • Assessment of the current organizational software
    capability
  • A roadmap to improved process and project
    management practices based on the assessment
    results
  • An internal function in support of project
    portfolio management and of the improvement
    journey

23
Why Do We Need to Assess?
  • Establish a baseline
  • What are our strengths?
  • What are our weaknesses?
  • What do we need to fix first?
  • Do we need a PMO?
  • Is the PMO effective?
  • Should we outsource?

24
Why Do We Need to Assess?
  • Use hard data to show IT and Business Management
    where current processes stand
  • Provide business case for the establishment of a
    Project Office
  • Need information to build a thorough process
    improvement plan
  • Keep those outsourcers away!

25
Why the SEI CMM (and the CMMI)?
Software Engineering Institutes Capability
Maturity Model
26
Capability Maturity Model(SM)
Optimizing - Continuous Improvement
Managed - Focus on QA and QC Measures
Defined - Process Mgmnt. Focus
Repeatable - Project Mgmnt. Focus
Software Engineering Institute 1991
Initial - Ad hoc, Informal - Hero
Driven
27
SEI CMM Level 2 KPAs
  • Requirements Management
  • Software Project Planning
  • Software Project Tracking
  • Sub-contract Management
  • Quality Assurance
  • Configuration Management

28
SEI CMM Level 3 KPAs
  • Organization Process Focus
  • Organization Process Definition
  • Training Program
  • Integrated Software Management
  • Software Product Engineering
  • Inter-group Coordination
  • Peer Reviews

29
SEI CMM Level 4 KPAs
  • Quantitative Process Management
  • Quality Assurance (process)
  • Software Quality Management
  • Quality Control (products)

30
SEI CMM Level 5 KPAs
  • Defect Prevention
  • Technology Change Management
  • Process Change Management

31
CMMI Staged Representation
32
CMMI Continuous Representation
33
The Capability Im-Maturity Model
Finkelstein, "A Software Process Immaturity Model"
34
What About Certification?
35
SEI CMM Assessments
Evidence Based
  • Full Assessment
  • two weeks or longer
  • documentation intensive
  • when organization is between CMM levels
  • Interim Profile Assessment
  • gets the job done quickly
  • checklist based
  • quick snapshot of a CMM Level 1 organization
  • between full assessments

36
Improvement Plans
  • Based on the SEI CMM Assessment
  • strengths, weaknesses, recommendations
  • Aimed at improving Project Management
  • process, techniques, tools
  • Aimed at improving Process Management
  • process, techniques, tools
  • Not a part-time effort
  • Project Management Office (PMO)

37
Typical Recommendations from SEI CMM Assessments
for a Level 1 Organization
  • Develop a Process Improvement Plan, based on the
    findings of the SEI CMM Assessment, aimed at
    reaching Level 2 of the SEI CMM.
  • Make the Process Improvement Plan a strategic
    initiative.
  • Create policies, as required by the SEI CMM, to
    confirm support for the Process Improvement
    initiative.
  • Implement a global Project Management Office
    (PMO) and establish a Software Process
    Engineering Group (SEPG) within the PMO.

38
Typical Recommendations from SEI CMM Assessments
for a Level 1 Organization
  • Task the SEPG with the rollout of a common
    Project Management Process for the organization.
  • Acquire Enterprise Project Management and
    Enterprise Resource Management tools to support
    Project Planning and Project Tracking and
    Oversight activities.
  • Staff a Quality Assurance function and a Software
    Configuration Management function.
  • Implement methods, techniques and tools to
    support Software Quality Assurance and Software
    Configuration Management.

39
Typical Recommendations from SEI CMM Assessments
for a Level 1 Organization
  • Implement individual certification programs for
    Project Managers and Quality Assurance staff.
  • Implement policies and procedures for Subcontract
    Management.
  • Capture and support high-value processes for the
    organization (such as the SAP Implementation
    Process).
  • Implement a Skills Assessment system to drive the
    training and resource allocation functions.

40
Typical Recommendations from SEI CMM Assessments
for a Level 1 Organization
  • Strive for certified Project Managers to lead all
    projects.
  • Document the new way of doing business, explain
    it to the customers and obtain their concurrence.
  • Benchmark internally on a periodic basis and
    benchmark best internal process externally.

41
Application Development Practices
  • "Software Capability Evaluations (based on
    SEI's Capability Maturity Model) will be used to
    qualify all IT contractors on U.S. Federal
    Government projects by year end 2001 (0.8
    Probability) however, widespread year 2000
    damage will push regulated AD into the private
    sector, starting with applications that have
    public health and safety implications."

Gartner Group (11/16/98)
42
So What?
  • SEI CMM Level 1 Organizations will not be able to
    survive for very much longer
  • Heroes leave (more rapidly now)
  • Outside Service Providers are racing up the SEI
    CMM ladder
  • Cant do business with the Government if not at
    SEI CMM Level 3

43
(No Transcript)
44
The Sarbanes-Oxley Act
  • During the past two years, a series of
    accounting and management scandals within major
    companies undermined investor confidence in
    corporations and others serving the capital
    markets. In response to the crisis, the U.S.
    Congress passed legislation, the Sarbanes-Oxley
    Act of 2002, that establishes many new
    requirements, including
  • 1. Composition/Responsibilities of Audit
    Committees
  • 2. Adoption of Code of Ethics by Sr. Management
  • 3. Increased Financial Disclosures
  • 4. Audit Partner Rotation

45
Enter PMI and QAI
46
Some Background Information
  • PMI began in 1969 with 5 members and now has more
    than 150,000
  • Represented in over 125 countries
  • PMP Certification program established in 1984
  • Almost 100,000 PMPs as of recent count
  • PMBOK Guide now an American National Standard
  • PMI Certification Program Department is ISO 9000
    approved

47
The PMBOK Guide
  • Core to the PMP Certification Process
  • Current edition published in 2002
  • Focuses on 5 Process Groups
  • Process Groups govern 9 Knowledge Areas
  • Project Management a la PMI
  • New 2004 version to be officially adopted as of
    October 2005

48
PROJECT MANAGEMENT PROCESS GROUPS
Initiating Processes - Recognizing that a project
or phase should begin and committing to do so.
Planning Processes - Devising and maintaining a
workable scheme to accomplish the business need
that the project was undertaken to address.
Executing Processes - Coordinating people and
other resources to carry out the plan.
Controlling Processes - Ensuring that project
objectives are met by monitoring and measuring
progress and taking corrective action when
necessary. Closing Processes - Formalizing
acceptance of the project or phase and bringing
it to an orderly end.
49
Links Among the Process Groups in a Project Phase
Planning Processes
Initiating Processes
Controlling Processes
Executing Processes
Closing Processes
50
Project Management Knowledge Areas
  • Project Integration Management
  • Project Scope Management
  • Project Time Management
  • Project Cost Management
  • Project Quality Management
  • Project Human Resource Management
  • Project Communication Management
  • Project Risk Management
  • Project Procurement Management

51
Another Assessment Needed
  • Project Management and PMI.
  • http//www.pmi.org
  • Assess Project Managers Skills
  • its not your daddys PM anymore
  • Bring everyone to the same level
  • huge resistance to change!
  • love to hate accountability
  • PMP Certification not an option
  • Project Management is almost a profession

52
Another Assessment Needed
  • Programs available to make it happen
  • Extensive and a bit painful...
  • Ditto for IT Managers
  • Pioneers are a thing of the past
  • Unconscious Incompetence
  • Love to reinvent all known wheels
  • Ditto for Quality Assurance Specialists
  • http//www.qaiusa.com/

53
The Quality Assurance Institute
  • Based in Orlando, Florida
  • Promotes quality in software development and
    support activities
  • Provides quality related training courses
  • Offers Certified Quality Analyst (CQA) and
    Certified Software Testing Engineer (CSTE)
    programs
  • Certification programs available through the
    local Society for Software Quality (SSQ)

54
An Enterprise Project Management Maturity Model
55
OPM3
  • PMIs answer to the plethora of Project
    Management Maturity Models is OPM3
  • Organizational Project Management Maturity Model
  • Comprised of three general elements
  • Knowledge content of the standard
  • Assessment method for comparison with the
    standard
  • Improvement setting the stage for
    organizational changes

56
Organizational Project Management Processes the
Domains
57
OPM3 Stages of Maturity
58
Wheres the Bang for the Buck?
59
Observed SEI CMM Benefits
Estimated impact for 200,000 LOC Software
Project (from Sematech publication Communique)
60
Project Management Certification Benefits
  • Consistent Project Management approach within the
    organization and improved interface mechanisms
    with all customers
  • Certification requires continuing education in
    the Project Management field, which leads to more
    effective Project Managers over time
  • Project Management Certification thoroughly
    supports the findings and recommendations of most
    benchmarking efforts
  • Combination of Project and Process Management has
    the potential of reducing project development
    costs by 30 a year (Gartner Group)

61
Project Management Certification Is It Worth It?
  • By 2004, 70 of successful projects will have
    certified project managers, while 90 of failed
    projects will not(0.7 probability).
  • By 2002, employees with Project Management
    Professional (PMP) certification will receive
    salaries 20 higher than those of project
    managers without PMP certification(0.7
    probability).
  • By 2002, leading-edge project management
    outsource vendors will have at least one out of
    five contracted staff team members who are
    PMP-certified(0.7 probability).

Gartner Group - November 16, 1999
62
How Can We Do Things Right... And Fast?
63
Where Do the Slick Tools Fit?
  • Depends on the outcome of the assessment of the
    organization
  • Depends on the outcome of the assessment of the
    individuals
  • No tools until the knowledge is there
  • A fool with a tool is still a fool
  • No tools without the right support in place
  • Training
  • Process Management Function (PMO)

64
The Need For Process Management And Project
Management Tools
  • Process Management too complex to implement
    without effective tools
  • Process Management and Project Management tools
    must be integrated
  • Tools must be able to produce reliable measures
    for Process and Project Management
  • Process Management tools are now industrial
    strength

65
Process And Project Management
Define the Process
Improve the Process

Control the Project
Plan the Project

Do the Activity
66
The New Shape of Processes
From This...
To This...
Work/Activity Model
Deliverables/ Products
Process Manager
Metrics
Process Library
Roles
Workflow Model
Techniques
Tools
Project Manager
Developer
67
A Word about Tools
  • Many to choose from!
  • Start small and grow as the organization matures
  • Master the use of MS Project for scheduling
  • Purchase Web-based team collaboration tools to
    support CMM Level 2 processes
  • Implement more mature tools to support CMM Level
    3 processes

68
A Word about Tools
69
A Word about Tools
70
A Word about Tools
Project Information
71
A Word about Tools
Project Information
72
A Word about Tools
Project Management Template
Project Information
73
A Word about Tools
PMO Implementation Template
Project Information
74
Work Breakdown Structure
  • Produces major end products for major end of
    stage assessment
  • Well-defined chunk of activity which can be
    planned in detail (2-3 months)

Stage(s)
  • Development milestone where performance against
    plan can be assessed
  • Produces major deliverables (component parts of
    stage end products)

Step(s)
  • Lowest level of work defined (lt10 days)
  • Provides basis for estimating effort, allocating
    resources, and controlling progress
  • Produces minor deliverables

Task(s)
75
Project Integration Management
Work Breakdown Structure
Stage
Step
Tasks
Scope Quality Procurement Communication Human
Resources Time Cost Risk
Project Plans
Plan
Manage
Planning and Managing at the Task Level
76
Enterprise Project Management
  • Leading EPM Software Tools
  • Artemis (www.artemisintl.com)
  • Changepoint (www.changepoint.com)
  • Evolve (www.evolve.com)
  • Kintana (www.kintana.com)
  • Niku (www.niku.com)
  • Pacific Edge (www.pacificedge.com)
  • Planview (www.planview.com)
  • Primavera (www.primavera.com)
  • Prosight (www.prosight.com)
  • Systemcorp (www.systemcorp.com)

77
How Do We Manage This Whole Thing?
78
Whats a Project Office?
  • A Project Office is a companys source of project
    management expertise and serves as the guardian
    of project management standards, a central point
    for process and project management tools, best
    practice reuse and process library

79
Evolution of the Project Office
  • Early 30s Empire State Building sets record for
    large construction using fast tracking and
    centralized project control office.
  • Late 50s Military System Program Offices
    established to support major program/project
    managers. Polaris Submarine
  • Early 60s Advent of computerized project
    scheduling techniques leads to Project Offices
    staffed with programmers.
  • Mid 70s User-oriented/controlled project
    management software leads to Project Offices
    staffed with systems engineers to run mainframe
    PM software. Artemis support...

80
Evolution of the Project Office
  • Early 80s Development of user-friendly,
    sophisticated scheduling software creates
    interest in project management and leads to the
    demise of the Project Office concept. Let the
    technical managers do the project management.
    Harvard Project Manager...
  • Early 80s thru early 90s Proliferation of
    scheduling software with the expectation that
    technical or administrative team members would
    use it.
  • Early to mid 90s Recognition that projects need
    professional project managers, supported by other
    specialists. Project management training
    emphasized. Awareness of the need for Project
    Office resurfaces.

81
Evolution of the Project Office
  • Mid 90s to the present Emergence of Enterprise
    Project Management, where the Project Office
    plays a crucial role. Realization that
    enterprise-wide projects require broader
    definition of the Project Office role and
    leadership. The Project Management Institute
    experiences exponential growth.
  • The Future Project Offices will grow in size,
    reflecting increased organizational commitment to
    conducting work through project management.
    Evolution of the Project Office to equivalent
    functional department status. Project
    Management Certification will no longer be an
    option.

82
Why Do We Need a Project Office?
  • Through 2004 and beyond, Information Services
    organizations that establish enterprise standards
    for project management, including a Project
    Office with suitable governance, will experience
    half the major project cost overruns, delays and
    cancellations of those that do not.
  • Gartner Group, 1999

83
What Does a Project Office Do?
  • Ensures executive sponsorship, leadership, and
    continued involvement
  • Selects the right project office model
  • Selects the right team structure, roles, and
    responsibilities
  • Supports training requirements and activities
  • Establishes executive-level, top-down planning
    techniques that align financial objectives to
    projects from a project portfolio perspective

84
What does a Project Office really do?
  • A Project Office establishes a set of stable,
    predictable, repeatable, reusable, and reliable
    management techniques and processes
  • planning- standardize estimating techniques,
    prioritization techniques, and project management
    processes for small, medium, and large projects,
    etc. aligned with PMIs PMBOK
  • controls - establish change management standards,
    project measurements, and metrics, etc.
  • communication - develop a library for processes,
    templates, project files, etc. aligned with the
    SEI CMM
  • tools - project planning, scheduling and
    management, project data repository, JAD, etc.

85
What is Joint Application Development (JAD)?
  • JAD is a structured meeting, conducted by a
    neutral facilitator, designed to extract
    high-quality information from the meeting
    participants, using a compressed time frame and a
    workshop environment to enhance the process.
  • JAD strongly complements, but does not replace,
    analytical methodologies.

86
The Power of JAD in Lifecycle Management
Strategic Business Planning
Project Scope Definition
Business Process Reengineering
Process and Data Modeling
Strategic I.T. Planning
Structured Walkthroughs
Acceptance Testing
I.T. Project Portfolios
87
Lessons LearnedBenefits of JAD
88
Project Office Models
  • Repository Model - Model 1
  • source of information on project methodology and
    standards
  • Repository-Coach Model - Model 2
  • coordinates sharing of best practices across
    business functions
  • Repository-Coach-Manager Model - Model 3
  • direct management of projects and project managers

89
Project Office Overview
Projects
Drill Down
Capability
Status
Executive
Business
Project Portfolio
Management
Units
Database
Policy
Budget Proposals
Vision
Approvals/Adjustments/Status
Business Cases
Strategy
Project Justification
Business Trends

Program Status
Direction
Standard

Program
Reporting
PROJECT
Forecasting
Requirements

Schedule
OFFICE
Performance

Project Funding
Training

Resource Analysis
and Allocation

Projects
Disposition

Issues/Resolutions
PPM Tools
Resource

Overtime Reporting
Pool

Cost Overrun
PPM Operations

Business Function/
Guide
Program Evaluation

Contract Analysis

Program Exception
Process
Contractor
Analysis
Library
Database

Budget Analysis

Problem Analysis
90
Project Office Mission
  • Processes, Standards and Methodologies
  • Process and Project Management Tools Project
    Support
  • Planning, Scheduling, Risk Management
  • Consulting and Mentoring
  • Facilitated Workshops
  • Training

91
Project Office Mission
  • Software Quality Assurance
  • Software Configuration Management
  • Certified Project Managers
  • Subcontract Management
  • Benchmarking
  • Strategic Planning
  • Project Portfolio Management

92
Staffing the Project Office
  • PMO should report to the CIO and later to the CEO
  • One to three percent of development staff
  • The right skills needed
  • Application development and support experience
  • Certified Process and Project Management
    professionals
  • Knowledge of Strategic Planning
  • Trained JAD facilitators
  • Knowledge of the SEI CMM and CMM assessments
  • Knowledge of Process and Project Management tools
  • QA and Configuration Management experience

93
Staffing the Project Office
  • Project Office Director
  • Project Managers
  • Project Mentors
  • Project Controllers
  • Project Planners
  • Methodology Experts
  • Estimators
  • Librarian/Documentation Specialist
  • Administrative Support Coordinator
  • Communications Coordinator
  • Issue Resolution and Change Control Coordinator
  • Risk Management Coordinator
  • PM Software Guru

94
Project Office CSFs
  • Unwavering Management Support
  • Motivated, Enthusiastic and Knowledgeable Project
    Office Staff
  • Availability of External Skills, Knowledge,
    Processes and Tools
  • Effective Change Management Strategy
  • Project Office Implementation Managed at least at
    SEI CMM Level 2

95
Developing a PMO implementation plan

96
An Implementation Approach
  • Project Initiation and Planning
  • Project Office Establishment
  • Project Office Infrastructure
  • Organization-Wide Standards Development
  • Rollout and Training Preparation
  • Breakthrough Stage
  • Operations Stage
  • Project Closure

97
Project Initiation and Planning StageMajor
Deliverables
  • Project Charter and Objectives
  • Project Organization
  • Project Scope
  • Project Plan
  • Project Standards and Control Procedures
  • Business Case
  • Project Budget

98
Project Office Establishment Stage Major
Deliverables
  • Project Office Communication Plan
  • Project Office Documentation Plan
  • Project Office Facilities Plan
  • Project Office Organization Structure
  • Project Office Staffing Plan
  • Project Office Budget

99
Project Office Infrastructure StageMajor
Deliverables
  • Project Office Guidebook
  • Software and Hardware Procedures
  • Security and Budget Control Procedures
  • Communication and Staffing Procedures
  • Measurement and Exception Management Procedures
  • Operational Management Procedures
  • Projects Meeting and Reporting Guidelines
  • Projects Baselining Procedures
  • Standard Projects Justification Criteria
  • Projects Resource Allocation Procedures
  • Project Office Interface Structure

100
Organization-Wide Standards Development
StageMajor Deliverables
  • SEI CMM Level 2 Compliant Practices for
  • Requirements Management
  • Project Planning
  • Software Project Tracking and Oversight
  • Software Subcontract Management
  • Software Quality Assurance
  • Software Configuration Management

101
Project Management Business and Quality Controls
Business Controls (Management)
Discipline-Specific Template (Web Dev., CSOO,
Support, etc.)
PM Process
- Resources - Schedule - Cost
Stage 1
Stage 2
Stage 3
Stage 4
Technical Tasks
Technical Tasks
Technical Tasks
Technical Tasks
Post-Mortem Review
T e c h n i q u e s
Quality Controls (Technical)
T o o l s
- Product Quality - Technical Standards
Compulsory End-Stage Assessment Meeting
Quality Review Meetings (Scheduled as
needed by Project Type, Activity Type,
Deliverable Type
Stage 1, 2, 3, 4 (for example Initiation,
Development, Implementation, Closure)
Compulsory Quality Review Meeting
102
Rollout and Training Preparation StageMajor
Deliverables
  • Rollout Approach
  • Rollout Scope Document
  • Objectives
  • Risks and Constraints
  • List of Breakthrough Projects
  • Rollout Increments
  • Training Strategy
  • Change Resistance Strategy

103
Breakthrough StageMajor Deliverables
  • Breakthrough Projects Managed at SEI CMM Level 2
  • Project Office Support to Breakthrough Projects
  • Project Office Reports Based on Breakthrough
    Projects Performance
  • Breakthrough Projects Feedback and Process
    Improvements

104
Operations StageMajor Deliverables
  • Process for Projects Assessment and
    Prioritization
  • Ongoing Projects
  • New Projects
  • Project Office Reporting on Projects
  • Cost Analysis
  • Time Analysis
  • Performance Analysis
  • Assessment of Project Office Activities

105
Project ClosureMajor Deliverables
  • Maintenance Guide for Project Office Activities
  • Action Plans for Remaining Open Items
  • Project Performance Measures
  • Lessons Learned
  • Process Improvement Report
  • Project Closure Meeting
  • Celebration of Success!

106
The PMO Lifecycle Loop
Project Management Office
Project Portfolio Management
Projects
Maturity Models
107
PMO of the Future?
108
The Need for an Advanced PMO Model(for Effective
Project Portfolio Management)
Traditional PMO
Traditional PMO Next Generation PMO Focus
mostly on tactical issues Focus on
strategic and cultural issues Science of project
management Art and craft of project
management Emphasis on monitoring and control
Emphasis on collaboration Tools as a map
Tools as a compass Internal process
focused Focus on end products and
customers Heavy methods and practices
Agile methods and practices Based on rules
Based on guiding principles Defined,
repeatable, optimized practices Adaptive
and innovative practices Focus on efficiency
Focus on effectiveness and
innovation Process leadership Thought
leadership Heavy management and governance
Balanced management, governance and
leadership
109
Lessons Learned
110
Lessons LearnedManagement Support
  • PMO Manager needs to secure many allies in the
    organization
  • PMO Manager must establish credibility as a
    professional
  • Need Management awareness, knowledge and
    understanding of issues
  • Presentations on modern Project Management
    approaches
  • Certification at all levels of the organization,
    not just Project Managers
  • PMO Manager should spend 90 of his/her time
    soothing irritations and communicating!
  • Gain customer support for the PMO
  • Fastest growth in law suits tied to poorly
    constructed and delivered software
  • Strive for Project Portfolio Management

111
Lessons LearnedManagement Support
  • The PMO must be an overhead function
  • Cannot inflict pain and charge for it!
  • Beware of reorganizations and loss of support
  • If we dont get rid of accounting, why do we get
    rid of the PMO?
  • Dont threaten executives with pending disaster
    or righteous statements
  • Use the Control Tower analogy to explain the
    mission of the PMO
  • This is still PM 101 and a management
    responsibility that must be addressed by senior
    management

112
Lessons LearnedManage Expectations
  • Need overall strategic plan for implementing and
    growing the PMO
  • Cant do it all in one iteration
  • Need to realize that the PMO evolution is a
    journey with manageable phases
  • Each phase needs to deliver specific results
  • Develop a clear Charter and Statement of Work for
    the PMO
  • Develop a sound Business Case and positive ROI
  • Provide clear answers to the question of Whats
    in it for me? (WIIFM) for all levels of the
    organization
  • The PMO is the enabler but senior management
    has to be the driver

113
Lessons LearnedStandard Process
  • Develop a common Project Management process first
  • Impossible to adequately report project
    information without a common process
  • Standard number of stages/phases
  • Standard terminology for all stages/phases, major
    Project Management deliverables
  • Management dashboards not very effective if
    different project management processes are used
    by different project managers
  • Do not reinvent any wheels

114
Lessons LearnedPMO Skills
  • Need the right skills immediately!
  • It takes too long to grow internal resources, if
    not already skilled
  • PMO Manager should have experience in
    establishing and managing PMOs
  • PMO Manager can hire consultants, but should
    manage them effectively
  • A balanced mix of new hires, internal resources
    and external consultants may be acceptable
  • Quick hits and credibility require experienced
    resources

115
Lessons LearnedWhich Skills
  • Strategic Planning
  • Process Management (SEI CMM)
  • Project Management (PMBOK)
  • JAD Facilitation
  • Quality Assurance (QAI)
  • Configuration Management
  • Team Management
  • Software Development
  • Project/Process Management Tools
  • Certifications

People skills and the right personality are of
fundamental importance
116
Lessons LearnedPMO Quick Hits
  • Rescue visible projects that are in trouble
  • Work with those Project Managers who really care
    about improving the situation
  • Use JAD Facilitation techniques
  • to compress the development lifecycle
  • to standardize process and deliverables across
    projects
  • Help Project Managers produce time-consuming
    project management deliverables

117
Lessons LearnedConsult Effectively
  • Ineffective consultants will do more harm than
    good
  • Credibility is constantly at stake
  • Resistance to change will be rampant
  • Help Project Managers and project staff
  • Project Planning, Risk Management, etc.
  • Use JAD Facilitation techniques
  • Project Planning, Scope Definition, Risk
    Management, etc.
  • JAD sessions promote the use of common techniques
    and methods, through an impartial facilitator

118
Lessons LearnedKiss Principle!!!
  • Grow with a carefully planned and phased approach
  • Start with simple processes and simple tools
  • A fool with a tool is still a fool!
  • Start with simple project reporting
  • Provide hands-on support to project teams and
    grant permission to fail!
  • Gradually bring projects under the PMO umbrella
  • cannot support all projects at once
  • The more complex the approach, the harder to
    manage its implementation and the harder to
    control cost
  • Far-reaching solutions will overwhelm project
    teams and PMO staff

119
Lessons LearnedAdequate PMO Resources
  • One to three percent of the organizations
    project staff
  • No more than one PMO consultant for every five or
    six projects
  • Implement rotation process
  • Bring the experienced believers into the PMO
  • Send PMO staff to the trenches and avoid ivory
    tower syndrome
  • Cut back on PMO resources once processes have
    become institutionalized and are the natural way
    of doing business

120
Lessons LearnedOrganization Change Management
  • Develop plan for managing culture change
  • Work with those opinion leaders who are respected
    in the organization
  • Especially if they dont like disciplined
    approaches
  • Communicate, communicate, communicate!
  • Newsletters, Web site, Presentations, etc.
  • Provide feedback mechanisms
  • Modify internal reward systems
  • Find success stories from other companies
  • Get vendor assistance to drive change

121
Lessons LearnedPMO Project
  • Manage PMO implementation project the same way
    future projects will be managed
  • Capture lessons learned at every corner!
  • Use an approach based on the PMI Knowledge Areas
    or on the CMM Level 2 Key Practices
  • There are no silver bullets
  • Beware of lip service as the PMO implementation
    evolves
  • Assess the importance of Process and Project
    Management in your industry and organization
  • Realize when there is not enough support and its
    time to pack it in and move on...

122
Optimize Process and Project Management through
the PMO
Enterprise Project Management
  • Walter A. Viali, CSQA, PMP
  • viali_at_pmotogo.com 713-252-9722
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