Professional Documents
Culture Documents
Introduction
The Instructor
The Participants
Name Job Information
Seminar Expectations
Course Objectives
Learn the key concepts related to Project Management Offices as per the PMI standards Understand the different PMO Models Determine the right PMO model based on your organizational needs Understand where the PMO fits in the organizational context Design the right PMO Organization Learn how to define the PMO value proposition & PMO services
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
Course Objectives
Understand the concepts of portfolio management and program management as per the PMI standards Discuss and learn in a workshop environment how to build the right PMO (Case Study) Understand the Organizational Project Management Maturity Model Learn the secrets for maintaining a successful PMO
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Chapter 1
UNDERSTANDING KEY PMO CONCEPTS
What is a PMO?
P for Project or Program
M for Management
O for Office
Other interpretations
What is a Project?
PMI PMBOK defines a project as a temporary endeavor undertaken to create a unique product, service, or result
Temporary means have definite time frame Unique means the deliverables are somehow unique
Characteristics of Projects
What are the general characteristics of a project? Projects are non-routine (one-time) Have specific products (physical or intangible) Normally used as instrument of change Have limited time frame
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Initiating
Planning
Executing
Closing
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Time Management
Risk Management
Procurement Management
HR Management
Integration Management
Communication Management
Quality Management
Cost Management
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SEQ
PM PROCESS GROUP
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Control Scope
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SEQ
PM PROCESS GROUP
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2
Define Activities
Sequence Activities
Planning
Planning
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4 5 6
Planning
Planning Planning Monitoring & Controlling
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SEQ
PM PROCESS GROUP
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2
Estimate Cost
Determine Budget
Planning
Planning
Control Cost
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SEQ
PM PROCESS GROUP
Plan Quality
Planning
2 3
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PROJECT HR MANAGEMENT
SEQ
HR MANAGEMENT PROCESSES
PM PROCESS GROUP
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2 3 4
Planning
Executing Executing Executing
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SEQ
PM PROCESS GROUP
Identify Stakeholders
Initiating
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3 4 5
Plan Communications
Distribute Information Manage Stakeholders Report Performance
Planning
Executing Executing Monitoring & Controlling
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SEQ
PM PROCESS GROUP
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2 3 4 5
Planning
Planning Planning Planning Planning
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SEQ
PM PROCESS GROUP
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2 3 4
Plan Procurements
Conduct Procurements Administer Procurements Close Procurements
Planning
Executing Monitoring & Controlling Closing
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SEQ
PM PROCESS GROUP
Initiating
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3 4 5 6
Planning
Executing Monitoring & Controlling Monitoring & Controlling Closing
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What is a Program?
A programs is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside the scope of the discrete projects in the program.
Program
Programs
Projects
Other Work
Project
Projects
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Studies show that existing PMOs vary significantly in their structure, roles assumed, and the perceived value
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Fire fighting mode and management by crisis approach (i.e. urgent issues takes priority over important issues)
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Is PMO a Panacea?
According to a Forrester report (2003), PMOs are on the rise but their effectiveness is dubious Studies show that departmental PMOs has little acceptance outside their span of influence A PWC survey (2004) conducted on 10640 projects valued at $ 7.2 billion across a range of industries showed that only 2.5% of global businesses achieved 100% project success and over 50% of the projects fail
The relevance or even the existence of the PMO has been seriously questioned in recent years in 42% of organizations surveyed by PMI in 2006
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
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PMO Models
Models allow us to envision, in advance, what the final outcome will be. It also allow us to exchange ideas, conversations, and debate if the model is suitable for usage or not The PMO literature is full of high level PMO classifications or categorizations called PMO models
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PMO Models
Full Control PMO
Advisory PMO
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
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PMO Models
The easy to visualize model
Control Tower
Establish standards Educate Standards Enforce Standards Improve Standards
Weather Station
Report progress status to the executives (budget, risk, issues, progress) Track events without influencing them
Resource Pool
Supply of project managers Experts are hired in the pool Internal clients normally pay for the service
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PMO Models
The How Good Can We Be Model
Based on number of project management processes applied and level of sophistication Basic PMO Advanced PMO Center of Excellence PMO
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PMO Models
The Where to Focus Model
Strategic Tactical
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PMO Models
The Organizational Chart Model
Enterprise Level PMO Departmental PMO Project Control Office
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PMO Models
Which is the best model for your organization?
What are the factors that help in deciding the right PMO model?
What if my organizational needs are not covered by the general PMO models?
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Chapter 2
THE PMO ENVIRONMENT
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EPMO VP Marketing
COO GM Production
Marketing PMO
GM IT Solutions
GM IT Operations
Operation Mgr
Logistics Mgr
ERP PMO
Product A PMO
Product B PMO
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Golden Rule: The PMO should be located near the main customer of the PMO
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
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Exercise 1
Who are the major stakeholders in your organization?
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Personalities
Culture
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A research by BIA conducted on 750 PMO organizations showed that 60% of the PMOs are not supported by their corporate culture
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AUTHORITY
PROJECTIZED
PROJECT MANAGER
FUNCTIONAL
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
AUTHORITY
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FUNCTIONAL MANAGER
STRONG MATRIX
PMO leadership
Project management maturity of the organization
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48%
48% 45%
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Exercise 2
What are the main purposes of the PMO in your organization & why?
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Purchase
Solution Vendors
Data
PMO
Senior Management
Information
Direction (Strategy) Direction (Governance)
Information
Governance Board 63
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Chapter 3
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Specify Priorities
PMO Organization
PMO Services
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Manage
PMO: Stage 4
Enhance Manage
Transition
PMO: Stage 3 PMO: Stage 2 Manage PMO: Stage 1
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Tool Support
Install MS EPM Automate forms, templates, and some processes -
Skills Development
Conduct Project management Concepts Training Conduct PMO awareness sessions -
Portfolio Management
Governance Setup & Project Management Maturity Plans
Establish electronic project repository Design initial dashboard & webbased reporting Design repository update mechanism
Stage 2
Conduct Project management Concepts Training Conduct PMO awareness sessions Conducts MS EPM Training
Maintain project repository Finalize dashboard & web-based reporting Design resource portfolio analysis & reporting
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Delivery Assessment
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Organizational assessment
Organization type (projectized, strong matrix, weak matrix, functional) What resources are working in what projects? Which business unit has more projects, which region, & which time of the year? What resources can work as PMO champions?
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Process Assessment
Identify the organizational processes that are in place for project selection, initiation, planning, monitoring & controlling, and closeout Identify gaps in project management knowledge areas
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Process Assessment
Example: Assessing Scope Management Processes Statement
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A Project Scope Statement is created for every project. Project Scope Statements are prepared with customer input throughout the development process. Management and the customer reviews all project progression alternatives and recommendations. Potential changes to the SOWs are processed according to a documented Change Control Procedure. Approved changes to the Scope Statement are communicated to the project team and the customer. The Statement of Work (SOW) contains all deliverables and is reflected in the Project Plan.
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Process Assessment
Example: Assessing Time Management Processes Statement 1 2
1 2 3 4 5 6 The projects WBS and resource estimate are used to develop the projects baseline schedule. The project schedule identifies schedule constraints driven by the customer, technology, suppliers, or management. Project schedules are updated on a regular basis with progress status updates, which are measured against the baseline plan. All project schedule work elements have dependencies, effort, and resources assigned. A critical path analysis is performed on the project schedule during each progress update cycle. Schedules are optimized to conform to contract requirements.
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Delivery Assessment
Cost Are we delivering on budget?
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Project Reviews
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Financial Analyst
Librarian / Documentation Specialist
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Be a spokesman
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Exercise 3
Read the case study then work on groups to identify the following:
The most suitable PMO model The PMO value proposition PMO position in the organization structure
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Chapter 4
Program Management
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Benefits Management
The definition and formalization of the expected benefits a program is intended to deliver
The benefits are normally identified & formalized at portfolio level before being delegated to the program for realization Some programs deliver incremental benefits to the organization. Others deliver all of the benefits at the very end of the program. Examples?
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Stakeholders include Program Director, Program Managers, Program Sponsor, PMO, Program Team Members, Program Governance Board, Suppliers, and Consumers
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Program Governance
The process of developing, communicating, implementing, monitoring, and assuring the policies, procedures, organizational structures, and practices associated with a specific program Program governance should fit within the wider picture (corporate governance)
A governance board (or Steering Committee) is the forum where issues related to the program are discussed.
The Governance Board controls the investment and monitor the delivery of benefits as the program progresses
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Program Governance
Functions of the Governance Board include:
Initiating the program Approvals of program plans and authorizes deviation from the plans (when needed) Review programs progress, benefits delivery, and cost Problem solving in issues the Program Manager cannot solve. Ensure compliance with corporate and legal policies, procedures, and requirements
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Program Lifecycle
1. PreProgram Preparation
GR1
2. Program Initiation
GR2
3. Program Setup
GR3
GR4
5. Program Closure
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Benefit
Identification
Benefit Realization
Benefits Transition
Derive & prioritize components Define benefit metrics Define benefit realization plan & monitoring Map benefits to program plan
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This phase is iterative in nature ends only when all planned benefits of the program have been achieved
Activities at this phase include:
Ensure program governance is in action Initiate projects Ensure project deliverables meet the program requirement Measure benefits realization Analyze progress to the plan
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Program Quality Management Program Human Resource Management Program Stakeholder Management Program Governance
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
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Program Executing
Program Closing
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Initiate Program
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Distribute information
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Monitor & Control Program Scope Planning Process Group Monitor & Control Program Schedule Monitor & Control Program Financials Manage Stakeholder Expectations Monitor & Control Program Risks Administer Program Procurement
Monitor & Control Program Changes Report Program Performance Provide Governance Oversight
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Close Program
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Project Management & Program Management What are the similarities and differences between program management and project management?
Program Management
Business & Technical in nature Aligned to strategic objectives of the business Focuses on interdependencies among projects and feasibility of delivery Handle program level risks Broad range of business, leadership, and management skills required Focus on consistent usage of common processes among projects
Project Management
Technical in nature Aligned to program objectives Focus on milestone, deliverables of a single project Focus on project level risks In-depth project management skills required Focus on effective usage of processes in a single project
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Exercise 4
Q: What type of services a Program Management Office (PMO) can provide to the Program Manager?
Define the program management processes that will be followed Manage schedule and budget at the program level Define the quality standards for the program and its components
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Q: Have you ever cancelled a project that is on-time and on-budget? Why?
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Portfolio
Portfolio
Projects
Programs
Program
Projects
Program
Projects
Other Work
Projects
Projects
Projects
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Organizational Resources
Building & Managing the Right PMO IBRAHIM MAHMOUD IBRAHIM
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PPM can help project managers have enough resources to accomplish projects that are perceived to be valuable and enjoy plenty of support throughout the organization
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Exercise 5
Compare project management, program management, and portfolio management.
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Component Processes
Current strategic Plan Goals Definition Key performance criteria Capacity Definition
Identify Components Categorize Components Evaluate Components Select Components Identify Portfolio Risks Analyze Portfolio Risks
Prioritize Components
Monitor & Control Portfolio Risks Portfolio Reporting & Review Monitor Bus. Strategy Changes No
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Selecting the right mix to achieve the desired returns should take into consideration: interdependencies, similarities, and synergies that exist between components
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Portfolio Governance
Evaluate Components Select Components Prioritize Components Authorize Components Identify Portfolio Risks
Pipeline Management
The process of determining if and how a set of projects in the portfolio can be executed by a company in a specified time, given finite development resources in the company.
The organization should have the tools to estimate the efforts planned for each project
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Maturity Models
The term Maturity Model has become widely recognized with the advent of CMM (Capability Maturity Model) for software engineering in the late 1980s Maturity indicates capabilities grow over time to produce repeatable success
Without existence of mature processes, organizations are forced to use talent and heroic efforts alone to accomplish tasks
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Defining OPM3
Organizational Project Management (OPM) is the alignment of an organizations projects, programs, and portfolios to its stated strategic goals Organizational Project Management Maturity Model (OPM3) is a standard developed by PMI designed to help organizations translate strategy into successful outcomes, consistently and predictably (PMI, 2003, p. ix)
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Defining OPM3
OPM3 standard has three key elements:
Knowledge: Describes the organizational project management maturity Assessment: Methods, processes, & procedures that an organization can use to self-assess its maturity Improvement: A process for moving from current maturity to increased maturity
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Defining OPM3
OPM3 focuses on alignment of projects, programs, and portfolio results with the organizational strategic objectives achieved by continuous improvement through the adoption and enhancement of best practices Other maturity models such as CMM focus on producing consistent products and consistent support for products OPM3 defines a continuum of maturity as opposed to discrete maturity levels
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OPM3 Vs CMM
CMM model has five levels
Level 1: Initial ad-hoc processes employed based on the strength of individual team leaders Level 2: Repeatable basic processes are informally established Level 3: Defined documented processes are standardized and integrated into daily operations
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OPM3 Vs CMM
Level 4: Managed process adherence is measured through established metrics and evolutions are based on these metrics
Level 5: Optimizing continuous process improvement is practiced and documented; organization culture is continuous improvement
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OPM3 Domains
OPM3 model has three different domains
Project Domain Program Domain Portfolio Domain
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Project Domain
The main responsibilities of the project manager in the project domain are:
Managing stakeholder expectations at a project level Managing project constraints Identifying inter-project contentions
Prioritizing Tasks
Ensure project objectives support program strategies
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Program Domain
The main responsibilities of the program manager in the program domain are:
Managing stakeholder expectations at a program level Coordinating activities of multiple project managers & teams Managing conflicts among projects to achieve organizational goals
Prioritizing projects
Ensure program objectives support portfolio strategies
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Portfolio Domain
The main responsibilities of the portfolio manager in the portfolio domain are:
Translating organizational strategies into specific initiatives or business cases that become the foundation for programs & projects Identifying and initiating programs and projects Providing, allocating, and reallocating resources to programs, projects, and other activities Maintaining a balanced project portfolio Supporting the OPM environment
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C = Control: A process is in control if all measurements are within the upper and lower boundaries
I = Improved: If the process is controlled and data is collected & used to improve the process
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Best Practices
An optimal way currently recognized by industry to achieve a stated goal or objective. Best practices are incorporated into mature project management capabilities in organizations All BPs are categorized by stage & domain dimensions. OPM3 has around 586 OPM BPs
BP BP Name BP Domain Stage Process Number Description Project Scope Planning 1030 Project Standardize 5.1 Process Standardization Process Group Planning
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Capability
Capability A specific competency that must exist in an organization in order to execute project management processes and deliver project management services and products. Capability is an element of BP. Every BP has several Caps.
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BP 1030
BP 1000
Best Practice 1030 Project Scope Planning Standardization Constituent Cap 1030.10 Process Management Governing Body Prerequisite Cap 1000.10 Established Standardization Policies Constituent Cap 1030.20 Project Scope Planning Process Development Constituent Cap 1030.30 Standardized Project Scope Planning Process
Cap 1030.030
Cap 1000.030
Cap 1030.020
Cap 1000.020
Cap 1030.010
Cap 1000.010
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BP 1030
Cap 1030.030
Cap 1030.020
Cap 1030.010
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2. Measure
3. Control
4. Improve
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Standardize
The process is implemented and standardized in the organization
Documented (Caps, outcomes, policies, checklist, templates, guidelines, tools, etc.) Communicated Implemented consistently Governing body established
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Measure
Critical steps of the process and all inputs to the process are identified, mapped, and measured
QA produces Non Compliance Report (NCR) that PMO will investigate Metrics dashboards might be used in some organizations to highlight vital measurements
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Control
A process is controlled when it stays within process specifications
Control tools include: control charts, Standard deviations Who controls the processes?
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Improve
A series of actions taken to identify, analyze, and improve existing processes within an organization to meet new goals and objectives A process in control is the primary target for improvement An improved process has the following characteristics
Root causes for problems within the process are documented All parties participate in the improvement process The improvement is sustainable (enforced by PMO, training, procedure update, etc.)
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Improve
Steps for process improvement are:
Evaluate current state value stream Study which capabilities from OPM3 best practices can improve the current state value stream
Attainability Strategic priority
Cost / benefit
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Chapter 7
PMO Software Tools
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Other Stakeholders
PMO
Team Members
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Chapter 8
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Yes
58%
No
0% 10% 20% 30%
42%
40%
50%
60%
70%
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Utilize internal best business practices (outside-in approach is not always the best)
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Thank You
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References
A Guide to the Project Management Body of Knowledge, Third Edition, PMI, 2004 The Standard for Program Management, PMI, 2006 The Standard for Portfolio Management, PMI, 2006 Organizational Project Management Maturity Model: Knowledge Foundation, PMI, 2003
Building Project Management Centers of Excellence, Dennis Bolles, PMP, AMACOM, 2002
The Complete Project Management Office Handbook, 2nd Edition, Gerard Hill, Auerbach Publications, 2008 Advanced Project Portfolio Management and the PMO: Multiplying ROI at Warp Speed, Gerald Kendall, PMP and Steven Rollins, PMP, J. Ross Publishing, 2003
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References
The Program Management Office: Establishing, Managing, and Growing the Value of a PMO, Craig Letavec, PMP, J. Ross Publishing, 2006
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References
Next Generation PMO: The Secret of a Successful PMO, Jack Duggal, PMI Global Congress Proceedings, Seattle, Washington, 2006
The need for a PMO From a Consulting Companys Perspective, Victoria Kumar and Gary Evans, PMI Global Congress Proceedings, 2007, Hong Kong
Magic Quadrant for IT Project and Portfolio Management, 2007, www.gartner.com Evaluation Criteria for IT Project and Portfolio Management Applications, Matt Light, 2007, www.gartner.com Case Study: Project & Portfolio Management at Transport for London, Matthew Hotle, 2007, www.gartner.com Project Management Office: The IT Control Tower, Matt Light, Matthew Hotle, Daniel Stang, Jack Heine, 2007, www.gartner.com
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References
Role Definition and Organizational Structure: Program and Portfolio Management, Audrey Apfel, Matthew Hotle, 2006, www.gartner.com How to Get Value Out of Project Management Office (PMO): Building a PMO that Executives love, White Paper, Gerald Kendall, and Steve Rollins, International Institute for Learning, 2002 The AtekPC Project Management Office, Warren McFarlan, Harvard Business School Publishing, 2007, www.hbsp.com
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Useful Websites
www.pmi.org
www.gantthead.com
www.pmosig.org
www.pmousa.com
http://www.oracle.com/us/products/applications/primavera/in dex.htm
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Hand-Outs
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