PMO-Presentation-Color-Final for education purpose

PMO-Presentation-Color-Final for education purpose

1. IT Project Management OfficeIT Project Management Office
Paul R. Astiz, MBA, PMP, CDPPaul R. Astiz, MBA, PMP, CDP
[email protected]@Mitretek.org
(703-610-2435)(703-610-2435)

2. Presentation ObjectivesPresentation Objectives
Provide an overview and general Provide an overview and general
understanding of PMO models, understanding of PMO models,
functions, success factors, and functions, success factors, and
implementation implementation
Introduce the CobiT PM CMM as a Introduce the CobiT PM CMM as a
framework for establish and evolving framework for establish and evolving
the PMO Project Management the PMO Project Management
functionsfunctions

3. OutlineOutline
IT PMO TrendsIT PMO Trends
PMO Models PMO Models
PMO Key ConsiderationsPMO Key Considerations
–CharterCharter
–Culture ChangeCulture Change
–Implementation StrategiesImplementation Strategies
–Staffing/SkillsStaffing/Skills
–Performance MetricsPerformance Metrics
Critical Success FactorCritical Success Factor
Introduction - CobiTIntroduction - CobiT®® CMM CMM

4. IT PMO TrendsIT PMO Trends
67% of IT organizations in 2003 have PMOs 67% of IT organizations in 2003 have PMOs (Forrester Survey)(Forrester Survey)
More than half established since 2000 More than half established since 2000 (Forrester Survey)(Forrester Survey)
Government is moving to standardize IT Project Government is moving to standardize IT Project
ManagementManagement
–Nov, 2003, Federal CIO Council recommends setting up Nov, 2003, Federal CIO Council recommends setting up
Federal PMO to standardize PM practicesFederal PMO to standardize PM practices
–Jun, 2004, SC requires management of major and inter-Jun, 2004, SC requires management of major and inter-
agency IT projects to use standard practices and be managed agency IT projects to use standard practices and be managed
by PMPby PMP
–Jan, 2001, NY sets up PMO to standardize management of Jan, 2001, NY sets up PMO to standardize management of
technology projectstechnology projects
–Jun 2002, CA CIO established objectives for statewide project Jun 2002, CA CIO established objectives for statewide project
management standardsmanagement standards
IT PMOs are becoming strategic IT PMOs are becoming strategic
IT PMOs are gaining more influenceIT PMOs are gaining more influence

5. What’s Driving IT PMO What’s Driving IT PMO
Proliferation? Proliferation?
Late and over budget IT projectsLate and over budget IT projects
–Lack of coordination of activitiesLack of coordination of activities
–Poor project management practicesPoor project management practices
–Lack of standardization of PM methodologyLack of standardization of PM methodology
Need for consolidated project reporting to drive Need for consolidated project reporting to drive
prioritization/decisionsprioritization/decisions
–More focus on IT project ROI More focus on IT project ROI
–More focus on alignment of IT projects with business strategyMore focus on alignment of IT projects with business strategy
–Strategic value and dependency on IT applications/technologiesStrategic value and dependency on IT applications/technologies
Increase in IT Project workloadIncrease in IT Project workload
–Proliferation of IT project proposalsProliferation of IT project proposals
–Delays in getting projects approvedDelays in getting projects approved
More complex IT environment and solutionsMore complex IT environment and solutions
–Enterprise solutions/cross-functional projectsEnterprise solutions/cross-functional projects
–Distributed development organizationsDistributed development organizations
–Outsourcing and contracting out of IT projectsOutsourcing and contracting out of IT projects

6. PMO BenefitsPMO Benefits
Companies that implemented Companies that implemented
successful PMOs achieved:successful PMOs achieved:
–80% ROI80% ROI
–20% reduction in project time20% reduction in project time
–30-35% successful project delivery30-35% successful project delivery
Companies without a PMO Companies without a PMO
experience 74% project failure rateexperience 74% project failure rate
Source: Forrester Research

7. PMO ModelsPMO Models
One size does not fit allOne size does not fit all
–PMO drivers/business needsPMO drivers/business needs
–PM maturityPM maturity
–Vision and goals of sponsorVision and goals of sponsor
–Business/organization missionBusiness/organization mission
–Organization sizeOrganization size
–Number of projectsNumber of projects
–Political and cultural environmentPolitical and cultural environment
Tactical vs. strategicTactical vs. strategic
Internal vs. external focusInternal vs. external focus
Departmental vs. enterprise (IT vs. LOB)Departmental vs. enterprise (IT vs. LOB)
Single vs. multipleSingle vs. multiple
Staff vs. line organizationStaff vs. line organization

8. SUPPORT CONTROL
Project administrative support
PM standards, methodology, processes
Project Consulting and mentoring
PM coaching/training/certification
Integrated Project Reporting
Issue Tracking/Reporting
Master Project Schedule
Project Document Repository
PM tools and tools support
Project Audits
Cost and Schedule Control
Business Case
Project Approval
Project Prioritization
Project Management
Resource Management
IT Asset Management
Project Portfolio Management
PMO Support/Control ModelPMO Support/Control Model

9. Key ConsiderationsKey Considerations
PMO charterPMO charter
Culture changeCulture change
Implementation strategyImplementation strategy
StaffingStaffing
Metrics/PerformanceMetrics/Performance
Success factorsSuccess factors
Maturity of Project Management Maturity of Project Management
PracticesPractices

10. PMO CharterPMO Charter
Charter ScopeCharter Scope
–Business NeedsBusiness Needs
–SponsorSponsor
–Public vs. Commercial Public vs. Commercial
–PM MaturityPM Maturity
Charter DocumentCharter Document
–Mission/VisionMission/Vision
–Goals/Objectives Goals/Objectives
–SponsorSponsor
–Service OfferingService Offering
–PMO GovernancePMO Governance
–Key Performance MetricsKey Performance Metrics
–Funding modelFunding model

11. PMO - Culture ChangePMO - Culture Change
Natural resistance to changeNatural resistance to change
Political landscapePolitical landscape
–Winners/LosersWinners/Losers
–Management Support Management Support
Degree of cultural changeDegree of cultural change
–PM maturityPM maturity
–PMO charterPMO charter
–Existing skill levelExisting skill level
–Key driver implementation strategyKey driver implementation strategy
Change ManagementChange Management
–Assess impact of change Assess impact of change
–InformInform
–EducateEducate
–InvolveInvolve

12. PMO Implementation StrategiesPMO Implementation Strategies
Strategy driversStrategy drivers
–PMO charterPMO charter
–PM maturity PM maturity
–Sponsor and management supportSponsor and management support
–PMO driversPMO drivers
–Perception of valuePerception of value
–Political environmentPolitical environment
–Culture/Value SystemCulture/Value System
Evolutionary/IncrementalEvolutionary/Incremental
–Lower implementation risksLower implementation risks
–Lower start up costsLower start up costs
–Will take longer to demonstrate ROIWill take longer to demonstrate ROI
–More suitable if high resistance to change and low management supportMore suitable if high resistance to change and low management support
Revolutionary/WholesaleRevolutionary/Wholesale
–Higher implementation risksHigher implementation risks
–Higher startup costsHigher startup costs
–May be able to demonstrate ROI quickerMay be able to demonstrate ROI quicker
–More suitable if crisis or recognition at high level that change is More suitable if crisis or recognition at high level that change is
imperativeimperative

13. PMO Staffing/SkillsPMO Staffing/Skills
Staffing ApproachesStaffing Approaches
–In-house resourcesIn-house resources
–Hybrid (In-house/contractors)Hybrid (In-house/contractors)
–Ad hoc contractors augmentationAd hoc contractors augmentation
SkillsSkills
–PMO Director/ManagerPMO Director/Manager
–Project ManagerProject Manager
–Project Portfolio ManagerProject Portfolio Manager
–PM Process/Methodology TrainerPM Process/Methodology Trainer
–Relationship/Account ManagerRelationship/Account Manager
–Tools Support/AdministrationTools Support/Administration
–Administrative SupportAdministrative Support
–Librarian/Document ControlLibrarian/Document Control

14. PMO Performance MetricsPMO Performance Metrics
PMO vs. Project metricsPMO vs. Project metrics
Less that 15% of PMOs employ formal metrics program (Source: Forrester Research)Less that 15% of PMOs employ formal metrics program (Source: Forrester Research)
Metrics are essential for growth and support – demonstrate progress, value, and Metrics are essential for growth and support – demonstrate progress, value, and
productivityproductivity
Performance metrics are driven by charter – no such thing as typical metricsPerformance metrics are driven by charter – no such thing as typical metrics
Business value metricsBusiness value metrics
–Executive focus - Measure and demonstrate value to businessExecutive focus - Measure and demonstrate value to business
–Help justify existence during downsizingHelp justify existence during downsizing
–Expressed primarily in dollars savings/revenue or ROIExpressed primarily in dollars savings/revenue or ROI
–Tend to be few and harder to deriveTend to be few and harder to derive
Functional performance metricsFunctional performance metrics
–Internal focus - Measure and demonstrate performance or quality of PMO functionsInternal focus - Measure and demonstrate performance or quality of PMO functions
–Help justify PMO budgetHelp justify PMO budget
–Help improve PMO performance Help improve PMO performance
–May require baseline or benchmark to demonstrate performanceMay require baseline or benchmark to demonstrate performance
–Expressed primarily in percent or counts Expressed primarily in percent or counts
–Tend to be many depending on functions performedTend to be many depending on functions performed
–Must be selectively chosen so as not to overwhelm Must be selectively chosen so as not to overwhelm
Service level metricsService level metrics
–Customer focus - Measure and demonstrate service level or quality of service to customerCustomer focus - Measure and demonstrate service level or quality of service to customer
–Help improve and maintain customer satisfactionHelp improve and maintain customer satisfaction
–SLA/SLOSLA/SLO
–Expressed in a variety of waysExpressed in a variety of ways
–Select on key and most important value to customer communitySelect on key and most important value to customer community

15. Success FactorsSuccess Factors
Clear CharterClear Charter
–Creates clear expectationsCreates clear expectations
–Defines boundaries for implementationDefines boundaries for implementation
Top-Down SupportTop-Down Support
Bottoms up Buy-inBottoms up Buy-in
Sponsor - Reporting to senior executiveSponsor - Reporting to senior executive
Strong LOB representation Strong LOB representation
Communication/PRCommunication/PR
–Promotion of servicesPromotion of services
–Education of valueEducation of value
–Performance metrics that demonstrate business and Performance metrics that demonstrate business and
customer valuecustomer value

16. PM Capability Maturity ModelsPM Capability Maturity Models
Valuable tool for establishing PMO and Valuable tool for establishing PMO and
help define objectives, charter, and help define objectives, charter, and
processes processes
Assess current statusAssess current status
Compare against best practicesCompare against best practices
Develop strategy and road map for PMODevelop strategy and road map for PMO
Help communicate vision and get buy inHelp communicate vision and get buy in
Different models (CobiT, OPM3, ISO Different models (CobiT, OPM3, ISO
15504, CMM/CMMI) 15504, CMM/CMMI)

17. CobiT CobiT ®® Capability Maturity Model Capability Maturity Model
CobiTCobiT®® CMM is valuable and comprehensive framework for CMM is valuable and comprehensive framework for
assessing maturity of IT organizationassessing maturity of IT organization
CobiTCobiT®® CMM CMM
–International Open Standard for IT GovernanceInternational Open Standard for IT Governance
–IT Governance Institute (ITGIIT Governance Institute (ITGI®)®)
–Information Systems Audit and Control Association (ISACAInformation Systems Audit and Control Association (ISACA®)®)
ITIG ITIG ®® not associated with Software Engineering Institute not associated with Software Engineering Institute
(SEI), Carnegie Mellon(SEI), Carnegie Mellon
CobiTCobiT®® CMM uses same conceptual framework as SEI’s CMM uses same conceptual framework as SEI’s
CMM CMM
Defines maturity of IT organizations in four domainsDefines maturity of IT organizations in four domains
–Planning and OrganizationPlanning and Organization
–Acquisition and ImplementationAcquisition and Implementation
–Delivery and SupportDelivery and Support
–MonitoringMonitoring
PM CMM part of CobiTPM CMM part of CobiT®® Planning and Organization domain Planning and Organization domain
Sources: WWW.ISACA.ORG and WWW.ITGI.ORG

18. CobiTCobiT®® Maturity Levels Maturity Levels
0 Non-Existent – Not applied0 Non-Existent – Not applied
1 Initial – Ad hoc and disorganized 1 Initial – Ad hoc and disorganized
2 Repeatable – Follow regular pattern 2 Repeatable – Follow regular pattern
3 Defined – Documented/communicated3 Defined – Documented/communicated
4 Managed – Monitored and measured4 Managed – Monitored and measured
5 Optimized – Best practices followed/ 5 Optimized – Best practices followed/
automatedautomated
Source: CobiT 3
rd
Edition, Management Guidelines

19. CobiTCobiT®® Model Components Model Components
Defines processes within each domainDefines processes within each domain
Defines high-level control statement Defines high-level control statement
for each processfor each process
Defines maturity levelsDefines maturity levels
Defines success factors for each Defines success factors for each
process process
Defines key goals for each processDefines key goals for each process
Defines key performance indicatorsDefines key performance indicators
Source: CobiT 3
rd
Edition, Management Guidelines

20. CobiTCobiT®® Project Management Project Management
Process Control StatementProcess Control Statement
Control of project management process Control of project management process
with the business goal of setting priorities with the business goal of setting priorities
and delivering on time and within budget and delivering on time and within budget
Is enabled by the organization identifying Is enabled by the organization identifying
and prioritizing projects in line with the and prioritizing projects in line with the
operational plan and the adoption and operational plan and the adoption and
application of sound project management application of sound project management
techniques for each project undertakentechniques for each project undertaken
Source: CobiT 3
rd
Edition, Management Guidelines

21. Level 0 – Non ExistenceLevel 0 – Non Existence
PM techniques not usedPM techniques not used
Organization does not consider Organization does not consider
business impact of poor project business impact of poor project
performanceperformance
Source: CobiT 3
rd
Edition, Management Guidelines

22. Level 1 – Initial/Ad HocLevel 1 – Initial/Ad Hoc
Aware of need for project structure and risks of poorly Aware of need for project structure and risks of poorly
managed projectsmanaged projects
Use of PM techniques left to the individualUse of PM techniques left to the individual
Projects are generally poorly defined and do not Projects are generally poorly defined and do not
incorporate business or technical objectives of the incorporate business or technical objectives of the
organization or stakeholdersorganization or stakeholders
Lack of management commitment and project ownershipLack of management commitment and project ownership
Critical project decisions are made without user Critical project decisions are made without user
management or customer inputmanagement or customer input
Little or no customer and user involvement in defining IT Little or no customer and user involvement in defining IT
projectsprojects
No clear organization within IT projects and No clear organization within IT projects and
roles/responsibilities are not definedroles/responsibilities are not defined
Project schedules and milestones are poorly defined Project schedules and milestones are poorly defined
Project staff time and expenses are not tracked and Project staff time and expenses are not tracked and
compared to budgetscompared to budgets
Source: CobiT 3
rd
Edition, Management Guidelines

23. Level 2 – Repeatable but IntuitiveLevel 2 – Repeatable but Intuitive
Sr. Management has gained and Sr. Management has gained and
communicated an awareness of the need communicated an awareness of the need
for IT Project Managementfor IT Project Management
Organization is in the process of learning Organization is in the process of learning
and repeating certain techniques and and repeating certain techniques and
methods from project-to-projectmethods from project-to-project
Projects have informally defined business Projects have informally defined business
and technical objectivesand technical objectives
Limited stakeholders involvement in PMLimited stakeholders involvement in PM
Some PM guidelines developed, but left to Some PM guidelines developed, but left to
discretion of project managersdiscretion of project managers
Source: CobiT 3
rd
Edition, Management Guidelines

24. Level 3 – Defined ProcessLevel 3 – Defined Process
PM process and methodology formally established and PM process and methodology formally established and
communicatedcommunicated
IT projects defined with appropriate business and technical IT projects defined with appropriate business and technical
objectivesobjectives
Stakeholders are involved in the management of IT Stakeholders are involved in the management of IT
projectsprojects
Defined project structure with roles and responsibilitiesDefined project structure with roles and responsibilities
Defined and updated project milestones, schedules, budget Defined and updated project milestones, schedules, budget
and performance measurementsand performance measurements
IT Projects have formal post systems implementation IT Projects have formal post systems implementation
proceduresprocedures
Informal project management training providedInformal project management training provided
No established policies for using combination of internal No established policies for using combination of internal
and external resourcesand external resources
Quality assurance procedures are definedQuality assurance procedures are defined
Source: CobiT 3
rd
Edition, Management Guidelines

25. Level 4 – Managed and MeasurableLevel 4 – Managed and Measurable
Formal and standardized project metricsFormal and standardized project metrics
PM measure and evaluated throughout organization not PM measure and evaluated throughout organization not
just ITjust IT
PM process enhancement formalized and communicated, PM process enhancement formalized and communicated,
and project team members are trained on all and project team members are trained on all
enhancementsenhancements
Risk management performed as part of PMRisk management performed as part of PM
Stakeholders actively participate in projects or lead themStakeholders actively participate in projects or lead them
Project milestones and criteria for evaluating success at Project milestones and criteria for evaluating success at
each milestones are establishedeach milestones are established
Value and risk are measured and managed prior to, during, Value and risk are measured and managed prior to, during,
and after project completionand after project completion
Management has established a program management Management has established a program management
function within ITfunction within IT
Projects are defined, staffed, and managed to address Projects are defined, staffed, and managed to address
organizational goals, rather than only IT specific ones.organizational goals, rather than only IT specific ones.
Source: CobiT 3
rd
Edition, Management Guidelines

26. Level 5 - OptimizedLevel 5 - Optimized
Proven full life-cycle project methodology is implemented and Proven full life-cycle project methodology is implemented and
enforced, and integrated into organizational cultureenforced, and integrated into organizational culture
On-going program to institutionalize best practices has been On-going program to institutionalize best practices has been
implementedimplemented
Strong and active project support from Sr. Management Strong and active project support from Sr. Management
sponsors and stakeholderssponsors and stakeholders
Implemented project organization structure with documented Implemented project organization structure with documented
roles, responsibilities, and staff performance criteriaroles, responsibilities, and staff performance criteria
Long term IT resources strategy is defined to support Long term IT resources strategy is defined to support
development and operational outsource decisionsdevelopment and operational outsource decisions
Integrated Program Management Office is responsible for Integrated Program Management Office is responsible for
projects from inception to post implementationprojects from inception to post implementation
Program Management Office is under the management of the Program Management Office is under the management of the
business units and requisitions and directs IT resources to business units and requisitions and directs IT resources to
complete projectscomplete projects
Organization-wide planning of projects ensures that users and Organization-wide planning of projects ensures that users and
IT resources are best utilized to support strategic initiativesIT resources are best utilized to support strategic initiatives
Source: CobiT 3
rd
Edition, Management Guidelines

27. CobiTCobiT® PM ® PM Success Factors Success Factors
Experienced and skilled project managers are availableExperienced and skilled project managers are available
Accepted and standard project management process in placeAccepted and standard project management process in place
Sr. Manager sponsorship of projects, and stakeholders and IT Sr. Manager sponsorship of projects, and stakeholders and IT
staff share in the definition, implementation, and management of staff share in the definition, implementation, and management of
projectsprojects
There is an understanding of the abilities and limitations of the There is an understanding of the abilities and limitations of the
organization and the IT functions in managing large, complex organization and the IT functions in managing large, complex
projectsprojects
Organization-wide project risk assessment methodology is Organization-wide project risk assessment methodology is
defined and enforceddefined and enforced
All projects have a plan with clear traceable work breakdown All projects have a plan with clear traceable work breakdown
structures, reasonably accurate estimates, skill requirements, structures, reasonably accurate estimates, skill requirements,
issues to track, quality plan, and transparent change process issues to track, quality plan, and transparent change process
(my note – effective PM methodology enforced)(my note – effective PM methodology enforced)
Transition from implementation team to operational team is a Transition from implementation team to operational team is a
well-managed processwell-managed process
System development life cycle methodology has been defined System development life cycle methodology has been defined
and is used by the organizationand is used by the organization
Source: CobiT 3
rd
Edition, Management Guidelines

28. CobiTCobiT® PM® PM Key Goal Indicators Key Goal Indicators
Increased number of projects completed on time Increased number of projects completed on time
and on budgetand on budget
Availability of accurate project schedule and Availability of accurate project schedule and
budget informationbudget information
Decrease in systematic and common project Decrease in systematic and common project
problemsproblems
Improved timeliness of project risk identificationImproved timeliness of project risk identification
Increased organization satisfaction with project Increased organization satisfaction with project
delivery servicesdelivery services
Improved timeliness of project management Improved timeliness of project management
decisionsdecisions

29. CobiTCobiT® Project Management® Project Management
Key Performance IndicatorsKey Performance Indicators
Increased number of projects delivered in Increased number of projects delivered in
accordance with defined methodologyaccordance with defined methodology
Percent stakeholders participation in Percent stakeholders participation in
projects (involvement index)projects (involvement index)
Number of project management training Number of project management training
days per project team memberdays per project team member
Number of project milestones and budget Number of project milestones and budget
reviewsreviews
Percent of projects with post-project Percent of projects with post-project
reviewsreviews
Average number of years of experience of Average number of years of experience of
project managersproject managers

30. ConclusionConclusion
IT PMOs can improve IT project delivery IT PMOs can improve IT project delivery
performanceperformance
One size does not fit allOne size does not fit all
PMO Support/Control model most usefulPMO Support/Control model most useful
Clear charter, top down support, & bottom Clear charter, top down support, & bottom
ups buy is key to PMO successups buy is key to PMO success
PMO performance metrics should focus on PMO performance metrics should focus on
value to key stakeholdersvalue to key stakeholders
CMM valuable framework for establishing CMM valuable framework for establishing
and evolving PMOand evolving PMO