How to start a PMO delivering benefits

1. Building
the
PMO
as
a
Program
Thomas
Walenta
March
2016,
Webinar
for
South
Ontario
Chapter
(this
is
the
only
clean
and
black
&
white
slide)

2. Successful Project
creates a
product /
output in
time
&
budget that can
contributeto benefits /
outcomes
Successful Program achieves
benefits /
outcomes that can
create value
What
do
you
want
to
achieve?
Output
>
Outcome
>
Value
Values
are perceived by
beneficiaries of the benefit /
outcome over time
More
time
for
familyA
traffic
system
allows
fluid
transportationA
bridge
to
cross
something
Project Program Operations

3. Program
Management
deals
with
benefits
(another
topic
is:
Project
Management
has
no
clue
=
Method,
Training,
Capability,
Attitude)
Program
Understand
Create
Achieve
Strategy
/
Benefits
GovernanceStakeholders
Program:
A
group
of
related
projects,
subprograms,
and
program
activities
that
are
managed
in
a
coordinated
way
to
obtain
benefits not
available
from
managing
them
individually.
(PMI
Standard
for
Program
Management)
Benefit:
An
outcome of
actions,
behaviors,
products,
or
services
that
provide
utility
to
the
sponsoring
organization
as
well
to
the
program’s
intended
beneficiaries.
(PMI
Standard
for
Program
Management)
An
outcome
providing
value
to
someone
(Th.
Walenta)

4. How
to
get
a
handle
on
benefits?
’Logic
Modelling’
provides
a tool
to
link
resources
to
value
Resources
Value
Outcomes
Long
term
Objectives
Activities
Projects
Enablers
Outputs
Products
Customers
Stakeholder
Outcomes
Benefits
Shortterm
Outcomes
Benefits
Intermediate
plan
create
Project
/
Enabler of
Benefits
Benefit:
seen
as
positive
by
a
stakeholder
Objective
(SMART)
/
Value

5. ’Logic
Modelling’
Examples
Resources
Value
Outcomes
Long
term
Objectives
Activities
Projects
Enablers
Outputs
Products
Customers
Stakeholder
Outcomes
Benefits
Shortterm
Outcomes
Benefits
Intermediate
Training
Skills achieved by
participants Improved
performance
Participants changed
behavior
List
of
attendies
Test
results
Observation,
use
of
skills
Process
throughput
Standardize project
reporting
Benefit:
Project Visibility
Value:
Reduce cost of recovery
%
of
key
projects
reporting
on
time
%
of
revenues
spent
on
recovery
Idea
Categorization sheet
Benefit:
Project Categorization
Increase strategic value
of projects

6. PMO
studies
and
surveys
reveal
similar
results
since
years:
PMO’s
live
longer
when
they
create
value,
but
most
die
young
2016
UK
study
with
686
participants,
by
Wellingtone/APM
• Only
10%
of
PMOs
exist
longer
than
10
years,
55%
less
than
4
years
• Most
difficult
process
to
implement
for
a
PMO
is
benefits
management
• 47%
do
not
have
PMO
KPIs
at
all,
only
19%
maintain
their
KPIs
• Most
common
PMO
tasks
are
• Reporting
• List
of
projects
• Methodology
2013
German
study
with
257
participants,
by
GPM/IPMA
• Only
25%
of
PMOs
older
than
5
years,
35%
less
than
2
years
• Average
number
of
projects
supported
by
PMO:
35-­‐106
• Acceptance
of
PMO
highest
when measured
quantitatively
• Most
common
PMO
tasks
are
• Methodology
• Reporting
• Coaching
2007
PMO
white
paper,
by
Hobbs/PMI
(based
on
survey
of
500
PMOs,
43%
Canadian)
• 83%
of
PMOs
younger
than
5
years
• 50%
of
PMOs
are
being
challenged
• PMO
Setup
duration
is
6-­‐24
months
• 50%
have
less
than
4
FTEs
• Identified
27
PMO
functions
• Most
common
PMO
tasks
are
• Reporting
• Methodology
• Monitor
Performance
1998
book
‘The
Project
Office’,
by
Th.
Block
&
D.
Frame
Five
functions
(still
valid
today)
• Project
support
(incl.
reporting)
• Consulting
&
mentoring
• Methods
&
standards
• Training
• Project
Managers

7. Example:
Setup
the
PMO
as
an
iterative
Program
to
deliver
Benefits
Stakeholders
Requirements
Expected
Benefits
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements

8. Example:
Identify
and
analyse stakeholders,
develop
surveys
&
interviews
Stakeholders
(80+)
Requirements
Expected
Benefits
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements

9. Example:
Collect
and
cluster
requirements
from
interviews
&
questionnaires
Stakeholders
(80+)
Requirements
(219)
Expected
Benefits
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements
KPIs

10. Example:
Extract
expected
benefits
from
requirements
(benefits
register)
Stakeholders
(80+)
Requirements
(219)
Expected
Benefits
(25)
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements
KPIs

11. Project
Management
Office
Project
Portfolio Management
Key Project Classification &
Prioritization
Resource alignment
Task integration
Benefits Mgmt
Project Management
Governance
PM Standards
Templates
Integration
SCRUM/Waterfall
Reviews & Audits
On-­boarding process
Risk Management
Project Management
Culture
Community
Communication
Campus:
Training
Coaching
Mentoring
Certification
Example:
Define
the
PMO
Architecture
provides
a
sustainable
framework
for
PMO
benefits,
PMO
outputs
and
operations

12. PfM Process -­
priorisation
PfM Process –
resource alignment
PfM
List planned projects
PfM
List running projects
PfM Process –
portfolio health
PfM Process –
demand/planning
PfM
List all key projects
PfM tool
reporting
PfM
PfBoards MD/VGI
PfM
Scenario Tool
PfM
PEB Standard
Project / Enabler of Benefit
Benefit: seen as positive by
a stakeholder
(Key) Objective
(SMART)
PfM temp -­
Catagorization sheet
PfM Process
Res Capacity Mgmt
PfM Process
Res/demand coord
PfM -­ template
Benefits Register
PfM -­ process
Benefits Mgmt
PfM -­ template
Business case
PfM –develop skills
benefits mgmt
PfM -­ template
Benefits Report
PfM proc
DCC process
PMOP05:
Project Categorization
1
PMOP01:
Establish Portfolio Visibility
1
PMOP06:
establish preproject standard
5
PMOP02:
Resource planning &
alignment
3
PMOP04:
Efficiency by Portfolio
Prioritization
1
PMOP03:
Ensure PEB/DCC and x-­Team
coordination
2
PMOP07:
Customer expectation and
benefits management
5
PMOP08:
Pool key skills & resources
8
PfM Process
Bottleneck mgmt
PfM -­ template
'IT Value Sheet'
CULT
Customer survey
Example:
Create
Benefits
Roadmap
using
‘logic
modelling’
(Portfolio)
Increase
strategical value
Increase Efficiency
Increase Customer
Sat
Increase visibility
Improve
standardization
started doneplanned

13. Example:
Implement
enablers
of
benefits
Stakeholders
(80+)
Requirements
(219)
Expected
Benefits
(25)
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements
KPIs

14. Examples
of
implementing
enablers:
schedule
/
templates
Enablers/outputs
are
e.g.
templates,
processes,
workshop,
presentations,
governance,
meetings,
reviews
…

15. Example
Portfolio
Management:
Template
‘categorization’
to
prioritize
ideas
ROI
Strategic
Relevance
Resource
fit
Compliance
and
Legal
must
Application
Landscape
fit
Strategic
Relevance
(0-­‐18
pts):
• Increase
revenue
/
profit
2
pts
• Increase
efficiency 2
pts.
• Market
penetration
/
Customer
value 2
pts.
• Contribute
to
strategic
company
goal 2
pts
• Fit4Growth
Projects 10
pts.
Financial
Impact
/
ROI
Calculation
(0-­‐10
pts.):
(OPEX+CAPEX+Operations)
devided by
Planned
savings
ROI
<=
1
year: 10
pts.
1
>
ROI
<=
2
years:
8
pts.
...
4
>
ROI
<=
5
years: 2
pts.
No
ROI
or
>
5
years: 0
pts.
Compliance
and
Legal
must
(0-­‐10
pts.)
• no
relevant
0
pts.
• IT
Release
Update 5
pts.
• Mitigate
Business
Risk 5
pts.
• Legal/Tax
relevant 10
pts.
Application
Landscape
fit:
• does
not
fit
to
current
IT
landscape 0
pts.
• new
system,
new
service
required 2
pts.
• new
component
for
existing
system 3
pts.
• extend/modify
existing
system 4
pts.
• use
existing
system 5
pts
• Set
new
standard 6
pts..
Ranking
Pts.
=
Strategic
Relevance
+ ROI
+
Compliance
and
Legal
must
+
VGI
Application
Landscape
fit
MAX
Ranking =
44
pts.
Running projects =
100
pts.

16. Example:
Implement
enablers
of
benefits
Stakeholders
(80+)
Requirements
(219)
Expected
Benefits
(25)
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements
KPIs

17. Example
Portfolio
Management:
semi-­‐annual
Portfolio
Board
(C-­‐Suite
+
1st line
below)
Focus
of
IT
Portfolio
Board
03
/
2016
Focus
of
IT
Portfolio
Board
09
/
2015
Portfolio
Planning
§ Resource
Capacity
Planning
§ Financial
Planning
§ Prioritization
Portfolio
Management
§ What-­‐if
Modeling
§ Target
Modeling
§ Key
Driver
Analytics
Analyze
§ Portfolio
Health
&
Value
contribution
§ Exception
Management
Analysis
Plan
Select
Capture
Collaboration
§ Progress
Status
§ Issue
&
Risk
Management
§ Change
Management
Execute
Resource
Alignment
§ Reallocate
Resources
§ Remove
completed
projects
§ Cancel
projects
§ Sunset
projects Manage
Demand
Management
§ Idea
Categorization
§ Strategic
Initiatives
§ Operational
work

18. Planning ExecutingInitiating Closing
Example
Governance:
Generic
project
lifecycle,
artifacts
and
deliverables
§ Rough Budget Planning
§ Rough Project
Scheduling
§ Stakeholder Analysis
§ Risk Register
§ Project Charter
§ System Approval
§ Procurement
For key projects:
§ Pre-­Project
§ Benefit Register
§ Business Case
§ Resource Planning
(Org.-­Chart)
§ Detailed Project
Scheduling
§ Set up MS Project
§ Scope Management
§ PMP (Project
Management Plan)
§ Stakeholder Mgmt.
§ Risk Management
For key projects:
§ Initial SteerCo
§ Kick Off
§ Status Reports
§ Budget Tracking
(Plan/As-­is)
§ Stakeholder
Management
§ Risk Management
§ Change Requests
§ Documentation for AMS
For key projects:
§ SteerCo
§ Project Acceptance
Letter
§ Final Lessons Learned
Workshop + Project
Celebration
For key projects:
§ Final SteerCo
Gate 1
DoR
Gate 2
Startup
Gate 3
DoD
Gate 4
Closing
Health
Check
Health
Check
Health
Check
Kickoff
Initial
SteerCo
SteerCo SteerCo
Lessons
Learned
final
SteerCo
Lessons
Learned
Lessons
Learned
Monitoring
&
Controlling
Processes
Initiating
Processes
Closing
Processes
Planning
Processes
Executing
Processes
Project
Lifecycle
phases
not
be
confused
with
iterative
PM
process
groups
(Thomas
Walenta)

19. Example
Governance:
Standardized
Health
Check
for
all
key
projects,
part
of
weekly
report
Major success
factors for projects
Delivery
organization
benefits are
being realized
Scope is realistic
and managed
Business
Benefits are
being realized
Work & Schedule
are predictable
Team is high
performing
Risks are being
mitigated
Stakeholders are
committed
Assess
Repeated
depending
on
a
project’s
health,
e.g.
RED
=
monthly
Plan
Implement
Impact
Integrated
Project
Management
Plan
§Stakeholders
§Business
benefits
§Work
&
Schedule
§Scope
§Team
§Risks
§Delivery
organization
§Project
Plan
Based
on
IBM’s
7keys
method
Red
Amber
Green

20. Example
Culture:
PM
Development
Path
Consultant
Staff
Project
Mgr
(parttime)
Project
Ldr (100%)
Program
Mgr /
Scrum
Master
PM
Staff
Training
(understanding)
Assessment
Experience
(practice)
Expertise
(analyze/synthesize
situations)
Extend
&
enhance
(evaluate
PM
concepts)
CAPM
PMP
PgMP
Coaching
Certification
Program
Be
a
mentor
Business
Analyst
PBA
PMI
ACP
Hypercare
Job-­‐
Rotation
Get
a
mentor
PMI
Certifications:
CAPM
Certified
Associate
Project
Manager
PMP
Project
Management
Professional
ACP
Agile
Certified
Practitioner
PgMP Program
Manager
PBA
PMI
Business
Analyst
LeadershipPracticePerspective
PMI’s
talent
triangle
&
IPMA’s
eye
of
competence
Business
Analyst

21. Example:
Measurements
• Points
of
Measurement:
outputs,
benefits,
value
• Developed
2-­‐8
potential
measurements
per
benefit
• Progressively
elaborated
• NOT:
implementing
or
reporting
all
measurements
• BUT:
decide
on
what
key
stakeholders
want
or
need
and
when

22. Most
busy
slide
of
this
presentation
Stakeholders
(80+)
Requirements
(219)
Expected
Benefits
(25)
Architecture
Roadmap
Implement
Enablers
Operate
Enablers
Measurements
KPIs
Major success
factors for projects
Delivery
organization
benefits are
being realized
Scope is realistic
and managed
Business
Benefits are
being realized
Work & Schedule
are predictable
Team is high
performing
Risks are being
mitigated
Stakeholders are
committed

23. Setup
the
PMO
as
an
iterative
Program
to
create
Value:
Starting
with
stakeholders,
identifying
and
realizing
benefits,
closing
with
KPIs
Stakeholders
Requirements
Expected
Benefits
Architecture
Roadmap
Implementation
Operations
Measurements,
KPIs
Resources
Value
Long
term
Outcomes
Objectives
Activities
Projects
Enablers
Outputs
Products
(e.g.
training)
Customers
Stakeholders
Outcomes
Benefits
Shortterm
(e.g.
skills)
Outcomes
Benefits
Intermediate
(e.g.
behavior)
Project
/
Enabler
of Benefit
Benefit:
seen
as
positive
by
a
stakeholder
Objective
(SMART)
/
Value
Necessary
for
Success
Traditional
PMO