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!

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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