Title: The Complete PMO
1The Complete PMO
- Chapter 15 - Project Auditing
2Please Note that the following Slide text is
derived from the content in The Complete Project
Management Handbook by Gerald Hill
3Project Auditing
- Auditing examines the overall efficiency,
quality, and value of outcomes resulting from use
or nonuse of a process, practice, policy, or
capability. - Project auditing measures project outcomes with
the intent of determining contributing causes to
those outcomes i.e. competency, capability,
maturity, and other relevant conditions within
the PM environment.
4PMO Project Auditing Responsibility
- PMO oversight examines all aspects of the PM
environment for continuous improvement support. - Monitor PM contributions to achieving business
objectives. - Identify and respond to weak/troubled project
performance. - Conduct quality management activities.
- Maintain professional standards within the PM
environment. - Ensure compliance with organizational policies,
industry certification requirements, government
regulations, contractual obligations.
5Project Auditing Activities Across the PMO
Continuum
6Project Auditing Activities across the PMO
Continuum
- The PMOs process guidance includes project
auditing oversight using project metrics to
validate compliance with standards for PM
activities and business needs/interests/objectives
. - Project Office Reviews audits
initiated/conducted by project managers to
validate reported project status and identify any
unreported indicators that threaten successful
continuation of projects. - Mid-range PMO Develop/implement project
auditing processes that specify audit points for
standard project audits and criteria that
triggers project audits to assure project success
throughout the PM life cycle. - Center of Excellence Ensures that the auditing
capability within the PM environment
efficiently/effectively serves the interests of
project and business managers.
7Project Auditing Function Model
8Set-Up Project Auditing Capability
9Determine Project Auditing Needs
- The PMO defines the proper types and levels of
review and audit activities conducted within the
PM environment. - Primary PM Audits - Essential audits prescribed
by the PMO and for use within the PM. - PM Audit A comprehensive examination of PM
performance. - Project Performance Audit A detailed
examination of the financial and business aspects
of the project. - Pre-project (Planning Phase) Audit A validation
of project readiness for implementation. - Post-project (Close Out Phase) Audit An audit
that confirms project readiness for closure. - Review of PM Methodology Examines the use and
validates the content effectiveness of the PM
methodology. - Additional PM Audits.
- Customer satisfaction audit Examines customer
perception of how well the project achieved
desired objectives. - Project recovery audit An that focuses on
indicators of unsatisfactory project performance.
10PM Audit
- A comprehensive examination of PM performance.
-
- Project work plan and support plans created to
guide the PM effort. - Completion of required planning documents.
- Adequate inclusion of prescribed plan content.
- Appropriate inclusion of preferred practices and
industry standards. - Effectiveness of project work plan and
support-plan implementation. - Accomplishment of project work efforts according
to applicable plans. - Demonstrated tracking of actual project results
against work plan elements. - Timely identification and response to variations
in work plan elements. - Use of approved change-management procedures for
modifying plan content.
11Project Performance Audit
- A detailed examination of the financial and
business aspects of the project. - The business case used to manage
selection/continuation of the project. - Relevance of business purpose and alignment with
business interests. - Achievement of staffing aligned with the resource
allocation plan. - Confirmation of trends toward achieving
cost-benefit analysis results. - Achievement and acceptance of project
deliverables. - Identification of customer relationship status
and pertinent issues. - Cost specified in the project work plan.
- Review of cost tracking and reporting methods and
accuracy. - Identification and evaluation of cost performance
(planned versus actual).
12Pre-project Audit
- A validation of project readiness for
implementation. - Initial PM documents and activities.
- Finalization of the project definition.
- Validation of the project budget and resource
allocation plan. - Preparation of the project charter (specification
of project manager authority). - Authorization of project funding (if not in
project charter). - Executive (sponsor) approval to proceed with
project implementation. - Initial technical documents and activities.
- Review of customer requirements documents.
- Review of technical specifications documents.
13Post-project Audit
- An audit that confirms project readiness for
closure. - Customer acceptance of project deliverables.
- Receipt of interim and final customer acceptance
statements. - Completion of customer's evaluation of project
performance. - Preparation and submittal of invoices to
customer. - Receipt of customer invoice payments.
- Project lessons learned.
- Review of project financial and business
performance. - Review of PM plan content and effectiveness.
- Review of technical plan content and
effectiveness.
14Review of PM Methodology
- Examines the use and validates the content
effectiveness of the PM methodology. - General content of PM methodology.
- Contains adequate descriptions of process (what
to do) and practice (how to do it) for PM phases,
activities, and tasks. - Designates roles/responsibilities of project team
members and other stakeholders participating in
the completion and oversight of PM
activities/tasks. - Provides adequate tools to facilitate the
accomplishment of methodology process elements. - Process content of PM methodology.
- Presents a discernable process relationship and
flow that advances the project through phases of
initiation, planning, implementation/execution,
and close out. - Specifies all essential PM activities and tasks
within each phase. - Incorporates essential technical planning and
performance activities in each phase. - Methodology utilization by project managers and
teams.
15Identify Project Auditing Resources
- The PMO evaluates project auditing requirements
and designates preferred auditors and auditing
teams. - Project Managers and Project Team Members
Project managers and team members with proven
technical and/or PM competency in conducting
formal/informal project audits. - Internal Auditors Personnel in business units
who can participate as auditors in the PM
environment. - Senior managers.
- Quality assurance managers.
- Quality control managers.
- Finance managers and specialists.
- Business analysts.
- Senior engineers and scientists.
- Senior technical specialists.
16Establish Project Audit Performance Points
- The PMO establishes audit performance points to
specify when or under what conditions to conduct
audits within the PM environment. - Routine Project Audit Point Designated points
in the PM life cycle or technical process at
which a specified type audit routinely occurs. - Triggered Project Audit Point Unscheduled
audits conducted in response to a project
performance indicator that suggests the need for
a more detailed examination of some aspect of
project or technical performance. - Discretionary Project Audit Point Authority to
conduct audits at the discretion of the PMO.
17Conduct Project Auditing
18Prepare for Project Audits and Reviews
- The PMO specifies the key audit preparation
activities to guide project audit efforts. - Identify and Convene Auditor/Auditing Team.
- Plan the Audit.
- Specify the type of audit to be conducted.
- Identify the lead auditor and audit team members.
- Review auditor/audit team preparation activities.
- Request timely receipt of project documentation
for advance examination. - Determine schedule and review auditor/audit team
on-site activities. - Identify audit responsibilities of the project
manager and project team members. - Identify any pertinent issues or problems that
might be encountered.
19Conduct Project Audit
- The auditor/audit team collaborates with the PMO
and project manager to perform on-site audit
activities beginning with a meeting of affected
participants. - Interviews and questionnaires.
- Observations.
- Project document (and other archival data)
review. - Onsite work sampling.
- Analysis Analyze common threads of findings to
identify topics of interest and points of focus
in formulating impressions regarding aspects of
projects. - Initial audit feedback.
20Prepare Project Audit Report
- Executive summary.
- Overview of the audit type and purpose.
- General description of the project's condition.
- General identification of condition causes.
- Summary of recommendations.
- Audit approach.
- Overview of the activity steps performed by the
auditor/audit team. - Overview of audit methods used.
- Identification of auditor/audit team members.
- Identification of other audit participants.
21Manage Project Auditing Results
22Review Project Audit Results
- The PMO reviews project audit reports to assess
trends within the PM environment used in
proactively formulating solutions to resolve
major/recurring issues/problems adversely
affecting project performance. - Identification of Troubled Projects.
- Findings that can be resolved by current project
managers. - Findings that cannot be resolved by current
project managers. - Findings that warrant PMO support of project
manager efforts. - Identification of recurring difficulties for a
particular project manager. - Identification of difficulties encountered across
projects. - Examination of Audit Completeness.
- Consistency of reported audit findings with known
conditions. - Clarity of findings statements that depict the
adequacy/depth of auditor examination/analysis.
23Analyze Aggregate Program Results
- The PMO examines aggregate results of audits
across all current/completed/terminated projects
to identify/monitor trends and effectiveness of
remedies applied to correct project performance
deficiencies.
24Monitor Project Audit Follow-Up Activities
- The PMO monitors audit follow-up activities to
oversee corrective action implementation at
project and functional PMO levels. - Activity statement A simple statement of the
effort. - Activity description.
- Activity completion date.
- Activity interim review dates.
- Activity manager.
- Activity close out date.