Steps to Establishing a Project Management Office

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Steps to Establishing a Project Management Office

• Presented By Andrew Hall
• Principal, Logan Consulting

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Who is Logan Consulting?Service Alliance Partner
of QAD

• Implementer of MFG/PRO Since 1992
• Experience in All QAD Vertical Markets
• Over 60 Full-Lifecycle Implementations
• Strategic IT Planning Package Selection
• Project Management and PMO Leadership
• Sarbanes-Oxley Leadership

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Why a Project Management Office?

• Organizations Typically Run Multiple,
  Cross-Functional Projects Concurrently. This
  Necessitates
• Consistent Project Management Methods, Processes,
  Systems, and Metrics
• Senior Management Support and Direction
• Continual Review of Progress Towards Completion
  and ROI

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Why a Project Management Office?

• Projects are a Major Corporate Budget Item and
  Resource Consumer. This Necessitates
• Accurate Estimating Based on Organizational
  History
• Accurate Resource Management Across Projects
• Management and Continual Evolution of Resource
  Skills

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Why a Project Management Office?

• Project Circumstances Change. This Necessitates
  the Ability to Gauge the Impact on
• Timelines
• Fixed Due Dates
• Budgets
• Resource Loads
• What-If Analysis
• Updated ROI Analysis

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Why a Project Management Office?

• High-Complexity Projects Fail to Deliver Too
  Often
• 1998 U.S. Report Indicates 26 Success Rate (The
  Standish Group)
• 98 Billion Spent Without Promised ROI Due To
• Changing Priorities / Market Conditions
• Poor Resource Planning
• Weak or Missing Business Case
• Lack of Management Direction, Oversight, and
  Involvement
• Lack of Continual Review Against the Business
  Case
• Poor Project Execution

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Requirements for Effective Project Management
Office

• Senior Management Support and Direction
• Human Resource Implications
• Leadership Skills
• Resource Allocation
• Skills Development
• Training and Certification
• Project Management Skills
• Project Management Methodologies
• Project Management Tools and Systems

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Benefits of Organizational PMO Standards and
Methods

• More accurate scope definition, supported by
  detailed project plans to achieve scope.
• Tighter control of changes to scope leading to
  better ROI.
• Tighter control of project objectives to achieve
  on time, on budget delivery of scope.
• Better resource management
• Ability to Manage Portfolio of Project with Ease

• Early risk identification, assessment and
  management.
• Good documentation and records management.
• Good buy-in and relations through good project
  communications.
• Good quality assurance and control
• Better project procurement and contract
  management.
• Ability to review existing projects against
  changing priorities / conditions

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General Role of Project Management Office

• Advising
• Mentoring
• Facilitating
• Strategic Planning
• Managing Project Knowledge
• Training PM Resources
• Reviewing
• Helping

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General Role of Project Managers

• Defining
• Controlling
• Executing
• Planning (Project)
• Estimating / Tracking
• Organizing
• Communicating

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PMO Development Phase
Implementation Phase
Define Select PM Software Suite
Install Test PM Software Suite
Select Customize PM Methodology
Publish PM Methodology
Project Plan
Produce Training Materials
Develop Training Materials
PMO Sub-Projects
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PMO Development Phase - Methodology

• Select, Customize or Develop and Publish PM
  Methodology
• Characteristics of a Good Methodology
• Is Applicable to All Project Types
• Provides How To Process and Procedures
• Provides Document Templates (Status Reports,
  Processes, etc.)
• Provides for Project Initiation, Planning,
  Execution, Control/Monitoring, and
  Hand-Off/Shut-Down
• Supports a Multi-Project Environment
• Provides for Organizational Needs, Including
  Roles and Responsibilities Descriptions
• Provides for Issue, Conflict, and Communications
  Management

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PMO Development Phase - Software

• Define and Select PMO Software Suite
• Software Requirements
• Scheduler and Resource Management Functions
• Knowledge Base and Search Functions
• Document Management Functions
• Time and Expense Functions
• Issue and Action Item Management
• Good Charting Capability
• Methodology Integration
• ERP Integration
• Web Enabled
• Install and Test PM Software Suite

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PMO Development Phase - Software

• Examples of Software Products
• Planview
• eProject
• GlobalToolkit.com
• Common Functionality
• View to Issues and Actions at a Detailed Level
  within a Project
• Supports High-Level View of Rolled-Up Status at
  Project Level and Across Projects
• Supports Standard Gantt Reporting
• Supports Resource Allocation Views
• Appropriate Level Portals for Team Members,
  Project Managers, and PMO Leadership
• Online Collaboration and Knowledgebase

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PMO Development Phase - Training

• Develop/Customize PM Training Materials
• Produce Project Management Training Materials
• Training Requirements
• Senior Mgmt Requires Overview of Methods,
  Systems, and Their Roles and Responsibilities
• Functional Managers Require Overview of Methods,
  Systems, and Their Roles and Responsibilities
• Project Managers Require Extensive Knowledge of
  Methods, Systems, and Their Roles and
  Responsibilities
• Team Members Require Overview of Methods,
  Systems, and Their Roles and Responsibilities

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Project Management Organization Sub-Projects
Establish and Operate the Project Review Committee
Establish and Operate the Project Management
Office
Establish and Support a Project Managers Forum
Establish and Support a Communications Plan
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PMO Sub-Project Project Review Committee

• Establish and Operate the Project Review
  Committee
• Role and Responsibilities
• Review and Recommend Action on New Proposed
  Projects
• Establish Project Priorities
• Review On-Going Projects Against Strategic and
  Tactical Plans of the Organization
• Reporting Relationships Can Be Tiered

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PMO Sub-Project Establish and Operate PMO

• Establish and Operate the Project Management
  Office
• Functions
• Manage Project Environment
• Internal Consultants
• Quality Assurance
• Risk Assessment Support
• Project Information Management
• Manage and Maintain Multi-Project Information
  Data Base
• Provide Consolidated Management Reports
• Manage Project Methodologies and Systems
  Resources
• Provide Support to Projects
• Support a Project Managers Forum

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PMO Sub-Project Project Managers Forum

• Establish a Project Managers Forum
• Provides a Voice for Project Managers in the
  Overall Process
• Sponsored by the PMO
• Provides a Clearing House of Ideas, Common Issues
  and Concerns
• Regularly Scheduled Forum
• Foundation for Creating and Sharing New Best
  Practices

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Project Management Organization Sub-Project
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Communications Sub-Project
Develop Project Communications Plan
Develop Standards and Templates
Establish and Maintain Communications with all
Corporate Stakeholders and Impacted Employees
Identify Stakeholders
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PMO Sub-Project Communications

• Develop Project Communications Plan
• Establish and Maintain Communications with all
  Corporate Stakeholders and Impacted Employees
• Briefing Sessions, Newsletters, Web Pages,
  Bulletin Boards (Electronic or Cork Board)
• Communications Must be Timely and Frequent
• Strongly Suggest Corporate Communications
  Involvement and Leadership

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Implementation Phase
Executive Senior Management Training
Initial PM Training
PM Training Certification Program
Select Implement Pilot Projects
Review Pilot Results Adjust
Implement PM System Service Support
Full Implementation
Communications Sub-Project
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PMO Implementation Phase

• Phase Where Possible for Reduced Risk and
  Resource Burden
• Training
• Executive and Senior Management
• Initial PM Training
• PM Training Certification Program
• Project Management Software and Tools Training
• Implement PM System Service and Support
• Pilot Projects
• Full Implementation

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Conclusion

• Strong Executive Mgmt Support Required
• Implementing an Effective PMO is a Major Project
  and Requires Careful Planning and Methodical
  Approach
• Effective PMO Implementation Should Cover
• Methods, Processes, Procedures, and Templates for
  Project Management
• Project Mgmt Systems Software Required to Support
  the Methods, Processes, Procedures, and Resource
  Mgmt
• Training of all Impacted Staff - Executives
  Through Project Team Members
• Phased Implementation is Best Approach
• Good Communications is Essential

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Questions and Answers