ePMO Workshop - Ali Kaabi
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The document discusses the strategy and roadmap for the ePMO (enterprise project management office) at MSC over fiscal year 2015. It outlines three pillars for the ePMO strategy: project competency, project excellence, and PMO best practices. For project competency, it discusses developing a project capability center (PCC) with career paths and competency assessments for project managers. For project excellence, it discusses achieving higher levels of portfolio/program/project maturity based on frameworks from Gartner and P3M3. For PMO best practices, it lists several practices around leadership, project and business acumen, reporting, and resource and risk management.
ePMO Workshop - Ali Kaabi
- 1. ePMO Summer Strategy (FY15) By: Ali Kaabi EMBA, PMO
- 2. Agenda • Types PMO and ePMO • What's the Value of Our PMO? • PMO’s Challenges? • MSC PMO 3 Pillars Strategy • MSC ePMO maturity Roadmap • PMO Best Practice • Project Manage R&R • PMO Value Proposition
- 3. WHAT IS A PMO PMO “An organisational structure that standarised the project-related governance processes and facilitates the sharing of resource, methodologies, tools and techniques.” PMO value is reflected in the achievement of the objectives set out for the PMO. • • Main objectives: • Lower project delivery costs • Earlier identification of project issues • Better leverage and reuse of knowledge • Higher accuracy of estimates • Improvement in getting up to speed on new projects
- 4. ePMo vs. PMO ePMO • Making the right investment decisions is only part of the problem. Organisations struggle with getting effective project participation and performance across the enterprise • Focusing on reporting enterprise PPM office (REPMO) to provide visibility and actionable status information to senior management • Focusing on enterprise PCC to build a project culture to support enterprise wide change • Focusing on business transformation office (BTO) on change and coordinating the interdependencies between strategic programs. • Focusing on enterprise portfolio office (EPO) on providing an exemplary portfolio analysis to ensure the optimum portfolio is implemented
- 6. PMs’ in PMO’s • Makes efficient use of project management skills for improving processes and mentoring others. • Establishes a way to standardize project management and execution across the organization. • The most effective way to share practices and standardize processes is to have all practitioners in a single team. • Creates strong relationships with the project managers, and the leadership of their business units, engendering trust and respect from providing needed results and benefits to their business. PMS’ IN PMO
- 8. What is the Value of our PMO? The modern PMO provides standardisation, as the foundation, but has evolved to offer more value to its sponsoring organisation. It is responsible for: – benefits tracking; – expert work planning, estimating & scheduling; – co-ordinated resource management; – structured progress tracking/forecasting; – robust scope management/change control; – a focus on budget efficiency; – stakeholder/communication oversight; – industrialised quality management; – value-adding risk/issue management; – comprehensive knowledge/records management; and – fully-integrated project processes. This modern PMO enables timely delivery, successfully achieved scope/quality requirements and targeted budgeting which ultimately results in the minimisation of delivery risk
- 9. Why PMO Fail?! • PMO did not define its value proposition. • PMO is not perceived as impacting project delivery abilities. • PMO is seen as a threat — most often too authoritative. • PMO does not have buy-in from the senior management. • PMO is too low in the management reporting. • Project Management Overhead — the bad PMO acronym. • PMO is micromanaging — trying to control every project directly.
- 10. What are our Challenges? A project staffed with uniformly very low-rated personnel on all capability and experience factors would require 11 times as much effort to complete the project as would a project team with the highest rating in all the above factors** In low-performing organisations PMO staff are much less likely to have formal project management qualifications, hands-on-experience and extensive project management knowledge*
- 11. What are the main challenges? In low-performing organisations executive sponsorship is approximately 60% less likely to have an appreciation of the strategic value of a PMO In low-performing organisations project management performance (and PMO performance) is not measured nor is appropriate accountability for outputs assigned In low-performing organisations PMOs face much greater difficulty in being accepted as a real value-adding proposition, at all levels of their organisation, when compared to high- performers
- 12. PMO Maturity… Statistics show that there is still a real issue with project overrun (in terms of both cost and schedule). The study showed an average overrun of 24% on original baselined schedule and budget across all completed projects*. Notes: (1) Model reduces overrun according to defined schedule/cost delivery improvement from research study outlined in previous slide and (2) cost basis for average Level 1 / Level 3 PMO of approx 2% / 4% of budget respectively** is used. By deploying a mature PMO the average project will save in the region of 12-19% of the total original budget of the project
- 14. I - PMO COMPETENCY - Project Capability Centre A Project Capability centre (PCC), is an approach, structure and road map that aims to foster PPM maturity, shared skills and shared approached to the overall planning and execution of all MSC projects (internal and external) as a core capability
- 15. PMO COMPETENCY - PCC Career Path
- 16. PMO COMPETENCY - PCC Individual Assessment Pn = Cn + Hn + In = PCC n
- 17. PMO COMPETENCY - PCC Individual Assessment Pn = Cn + Hn + In = PCC n Certification (Mandatory & Optional) L4 Mandatory Certification Name Mandatory Certification Level Type Provider Required Criteria Facilitator Certification Citified Product Marketing Manager (CPMM) 4 Product Management AIPMM Open to all PMO Online Course Providers Online Exam and certification PMP 4 Project Management Professional PMI Bachelor Degree and 4500 hours of managing and working in projects Online Course Providers Designated exam facilitators in major cities Toastmaster 4 Business & Leadership Toastmaster Recommended by the ePMO leader Toastmasters Participating in weekly classes Optional Certification Name Optional Certification Type Provider Required Criteria Facilitator Certification Agile Certified Product Manager (ACPM) 4 Product Management AIPMM CPMM Certified Online Course Providers Online Exam and certification Individual Competency Levels Skill Skill Description Rankings Level 5 (SPM/SP DPM Level 1) Leadership * Skilled at managing interpersonal relations to build rapport inside and outside the immediate project team, motivate through leadership, and mentor development of more junior PMs * Can prioritize trade-offs between on-time, on-scope, on-quality and on-budget delivery * Can drive PPM process implementation (i.e. progress tracking process to enable better forecasting of resource availability) * Team leadership skills sufficient to facilitate conflict and issue resolution 1 to 5 4 Planning * Can determine whether advanced schedule calculations are needed - and can perform them (i.e. determining schedule risk with optimistic, pessimistic and most likely times for tasks using PERT) * Can manage above the single-project level (i.e. can determine resource dependencies across multiple projects) * Working with technical domain experts, can estimate the project's effort from functional requirements skilled at project scheduling, including via automated tools, and can analyze progress and trade-offs 1 to 5 4 Problem Solving * Can implement project change process, as appropriate for scope control and change processes, and debate effectively for or against project changes, as appropriate * Can work with business management on budgets when priority trade-offs may favor on-time or on-scope delivery over on-budget. 1 to 5 4 Monitoring * Capable of project risk assessment, monitoring and mitigation planning * Can apply earned value management (EVM) techniques as needed, from "EVM lite" up to and including ANSI-standard EVM on large contact projects * Can steer collaboration with contractors on projects (i.e. from RFP evaluation through acceptance), maintaining controls as required, and can successfully confront contractor PMs as needed 1 to 5 4 Contextual Experience * Capable of defining, explaining and maintaining a high-level, longer-term view of projects' relationships with strategy and other initiatives * Possesses communication and organization skills to implement a formal communications plan * Can identify the necessary level of project requirements definition for planning and scheduling purposes in collaboration with business/system analysts 1 to 5 4
- 18. Assessing the Current State In order to create a benchmark for the current level of operational maturity the organisation would need to assess the current maturity level. There two main industry standards to perform the PPM (Project, Program and portfolio Management) assessment. 1. Gartner’s 5 Level PPM Maturity Model As per inserted image, Gartner’s PPM Maturity frame work consist of 5 level of maturity operation. In order to excel and achieve each level of maturity, the organisation would need to achieve a certain level of competencies in the following Core Dimensions: I. People II. PPM Practice & Processes III. Technology IV. Value & Financial Management V. Relationship II - PROJECT EXCELLENCE -Portfolio/Program/Project Maturity Model(PPM)
- 19. 2. P3M3 (Project, Program, Portfolio Management Maturity Model) P3M3 is park of P3O methodology. P3O is a framework of Project, Program and Portfolio Management. It consists of Centre of Excellence (CoE) Model at its core. The P3M3 model contains three models that enable independent assessment. There are no interdependencies between the models, so an organization may be better at programme management than it is at project management, for example. The models are: • Portfolio Management (PfM3) • Programme Management (PgM3) • Project Management (PjM3). This enables the organisation to focus one any of the models above. The assessment of each of the above models are through 5 structure level of maturity. The five structured levels for maturity are: Level 1: Awareness of Process Level 2: Repeatable Process Level 3: Defined Process Level 4: Managed Process Level 5: Optimized Process PROJECT EXCELLENCE -Portfolio/Program/Project Maturity Model(PPM)
- 20. PROJECT EXCELLENCE - PMO Program Management (Level 2) • Leading operational excellence • Knowledge Management • Nurture Good Ideas • Resource expertise
- 21. PROJECT EXCELLENCE - PMO (Level 3 - 4)
- 23. ePMo Roadmap (Maturity Guide) Core Dimensions Level 1: Reactive Level 2: Emerging Discipline Level 3:Initial Integration Level 4: Effective Integration Level 5: Effective Innovation People Priority projects get appropriate staffing — everything else is "first available." Nascent PPM leader role is primarily still an individual manager focus. A few people begin to work toward stopping the pain and getting organized. Project staffing and resource capacity issues are addressed to increase productivity. The most common PPM leader role is purveyor of methodology and standards. The concept of disciplined teams working on projects is developed. Specialized PPM leader roles are formalized. Career paths are defined. A network of PPM leaders is emerging. Companywide centers of excellence improve workload management. Project assignments are made based on the specific skills and capabilities of the individual. PPM leaders exist in all areas of the company. Accepted specialization (program, portfolio and strategy) supports maximum performance. PPM Practices & Processes All internal processes are centered on the management of critical projects. The approach to process is centered on necessity and observation of processes brought in by outside vendors working on large projects and programs. PMOs are established. Project processes are in place. Understanding of risk management is becoming more common. An approach to demand management prioritization is in place. Programs increasingly are managed in-house. Projects are approved on a portfolio basis. Multiple processes are in place for projects and programs. Related projects are managed as programs. The portfolio is actively maintained. Multiple methods exist and are used by all project managers (PMs). Portfolios exist for all project work throughout the enterprise. The enterprise PMO (EPMO) oversees strategy execution. Other PMOs exist as necessary. Technology Project scheduling tools and milestone reporting are adopted on a project-byproject basis. There are no formal management tools. Project collaboration and team workspaces are occasionally supported. Dashboards (where available) primarily aggregate data. A portfolio tool is in place. Reporting dashboards that focus on providing actionable information are available. Technology supports portfolio modeling. A single PPM tool is available for the enterprise in order to support a project-capable organization. Technology supports a robust knowledge management system, and resource management is enabled for all project resources. Value & Financial Management Projects have budgetary estimates. Actual costs can be estimated. There are some benefit statements. Project cost and labor hours are generally captured. An estimate of benefits is made for each project. Value-based estimates are adopted. Actual costs are captured and forecast. Benefits are identified and related to strategy in the portfolio. The portfolio is modeled and appropriately optimized, factoring in risk. Project and program outcomes are tracked against anticipated value. Full life cycle costs and benefits are tracked, with feedback to improve financial management and value. Portfolio resources are consciously allocated toward innovation. Relationship Previous informal relationships begin to break down, and it becomes necessary to formalize roles, including that of a "stakeholder." Relationships become difficult, with organizations focused on optimizing their processes and their needs. A focus on the project starts as the operating entity begins to emerge. Cross- functional governance committees are formed. Cross-functional groups are formed, and collaboration is becoming the norm. Project and program staff view themselves as reporting to the project first and their home department second. The organization has adopted a project-centered view that supports enterprisewide teams. No more "us versus them." Social responsibility aspects are considered, as well as the impact on the supply chain. Dynamic tension of explore/exploit is accepted.
- 24. ePMo Roadmap (External) Core Dimensions Level 2: Emerging Discipline Level 3:Initial Integration Level 4: Effective Integration Level 5: Effective Innovation People Project staffing and resource capacity issues are addressed to increase productivity. The most common PPMleader role is purveyor of methodology and standards. The concept of disciplined teams working on projects is developed. Specialized PPMleader roles are formalized. Career paths are defined. PPM Practices & Processes PMOs are established. Project processes are in place. Understanding of risk management is becoming more common. An approach to demand management prioritization is in place. Programs increasingly are managed in-house. Projects are approved on a portfolio basis. Multiple processes are in place for projects and programs. Technology Project collaboration and team workspaces are occasionally supported. Dashboards (where available) primarily aggregate data. A portfolio tool is in place. Reporting dashboards that focus on providing actionable information are available. Value & Financial Management Project cost and labor hours are generally captured. An estimate of benefits is made for each project. Value-based estimates are adopted. Actual costs are captured and forecast. Benefits are identified and related to strategy in the portfolio. Relationship Relationships become difficult, with organizations focused on optimizing their processes and their needs. A focus on the project starts as the operating entity begins to emerge. Cross-functional governance committees are formed. Cross-functional groups are formed, and collaboration is becoming the norm. Project and program staff view themselves as reporting to the project first and their home department second. 2015-July TBD 2015-July
- 25. PMO Best Practice LEADERSHIP: – Engaged sponsors and project committees – The project manager has the power of authority to move the project through completion. LEADERSHIP LEADERSHIP LEADERSHIP LEADERSHIP LEADERSHIP
- 26. PMO Best Practice • Project and Business Acumen: – Unified and consistence approach to managing projects (Tools & Templates) – Intelligent reporting and value-add (risk & issues management) – Frequency of reports (Weekly region reporting – monthly regional reporting) – Facilitate project steering team with the regional stakeholder. – Be proactive and anticipate issues/risk (good or bad)
- 27. PMO Best Practice • Web Repository: – Project information easily accessible to management, stakeholders, and project team. – Build project risk and issue repository (per region- per product) • Stakeholder Management: – Identification of the “right stakeholders” – Timely communications with stakeholders throughout project (stakeholder management) – Conduct monthly project steering team meetings to review status, risks, and required project change controls
- 28. PMO Best Practice • Resource Management: – Clear understanding of task responsibilities (Time & Effort) – Effective resource tracking system (Timesheet) – Resources are assigned to your project. You’re ultimately responsible for project success and as such you set the mandate. – Risk Management: – Early identification of potential risks – Early identification of how risk impact/probability will be identified – Risk Matrix – Continuous review of risks throughout life of project / program
- 29. PMO Project Manager Role • Leads and maintains the development of the project, resource, asset and strategic objective portfolios • Reports to the PMO Manager • Financial and what- if analysis. Responsibility • Analyzes the project portfolio and makes recommendations to decision makers • Balances the portfolio • Evaluates and helps to implement processes to improve project flow • Publishes the monthly forecast and work plan report • Manages the development and definition of the prioritization model • Can be backup to the PMO Mgr Value • Consistence Delivery • Cost reduction • Better utilisation • Higher productivity • Improvement in ROI in project portfolio. Required Skills • Ability to report bad news • Ability to work well with all levels of the business • Project and Business Acumen • Project Management Certified (Prince 2, CAPM, PMP, P3O or OPM3
- 30. PM R&R Roles Task Description Key Performance Indicator Duration-Frequency Project Preparation 1. Project Benchmark 1. Determine and set Project cost benchmark (Budgeted Cost-Total effort) 2. Determine and set project schedule baseline (Duration) 3. Ensure the project baseline is communicated with internal stakeholders 4. Escalate immediately to PMO Mgr and Regional Mgr if the project is forecasted to have less than 30% profit margin 5. Ensure the project baseline is communicated with external customers and agreement has been achieved (Business Brief) Project Creation PMO Template and Process 1. Project Life-cycle Process and procedure 1. Project Manager to ensure all 12 Project life-cycle Templates are utilised as per project agreement 2. Assess and manage project risk and issues 3. Project Manager to ensure each project document is completed according to the MSC PMO standard On-Going Project Management Evaluation Criteria 1. Internal Stakeholders 1. Provide Regional Project Dashboard 2. Facilitate Bi-Monthly Regional Project committee meeting with regional practice 3. Provide billing report-forecast to PMO-PPM Coordinator 4. Provide Monthly Regional status report to PMO Mgr 5. Provide project Risk and Issue report Weekly/Bi-Monthly 2. External Stakeholder Provide Weekly or Bi-Monthly status report to all project stakeholder Conduct project status meeting as per project brief Conduct Project Kick-off meeting and utilise Project Kick off Presentation Conduct Project closure meeting (as per project brief) Weekly 3. PMO Reporting 1. Maintain and report on Billing milestone by liaising with each project managers 2. Produce Monthly forecasting billing forecast Provide Regional Billing forecasting Monthly (on-Going) Project Management Performance 1. Project Resource Scheduling Liaise and secure project resource with tech office and Service transition Schedule Project resource as per project Budget – by utilising resource breakdown document. Manage internal and external communication between MSC project team and Channel (Telstra)-External customer Monitor and report project scope implementation Approve timesheet and escalate project risk and issue with project sponcer On-Going 2. Project Cost & Schedule Baseline Maintenance 1. Project Manager to ensure the original Project Baseline is agreed with customer (channel-External) 2. Project Manager to maintain the original cost and schedule baseline, and ONLY change these baselines if a successful change request has been completed 3. Project manager to work closely with all project resources and customer to ensure the project is completed successfully 4. Project Manager to identify RISK and ISSUES at the beginning of the project and establish an effective Risk management plan. 5. Project Manager to update RISK and ISSUE register throughout the project life-cycle 6. Project Manager to inform and escalate to PMO and Regional Mgr about project Risks and Issues On-Going 3. Project Stakeholders Management Identify project Internal and external Stakeholder Identify project stakeholder’s expectation Manage Project stakeholders expectation On-Going 4. Regional Practice Project Governance 1. Manage and represent PMO on regional basis 2. Provide ongoing support and update on regional project 3. Maintain an active role in providing risk and issue on regional basis 4. Maintain project profitability as per project baseline agreed on the project start 5. Provide accurate regional project reporting on Budge-cost-schedule 6. Maintain a build a healthy relationship with regional stakeholders 7. Work closely with Regional Mgr to provide support and build an effective operation 8. Maintain and uphold PMO value and 3-pillars strategy On-Going
- 31. Initation Phase “GROUN RULES” Business Case -Budget Estimate -Schedule Estimate -Collaboration -kick Off -Create Project Baseline (Cost/Schedule/Quality) -Internal Collaboration and establish a projcet duration -Understand and workout your projecct dependenties. -Outline risks & exclusion Planning Phase “Plan Better, Stress Less later” Requirement Scoping -Schedule Costing -Quality Planning -Risk Planning -Project Plan -Translate your estimates into milestone and deeliverables in form of project plan -ensure your proect baseline is accurate -Publish the project plan and share with all stakeholders -Update risk Implementation Phase “Coordinate work and guide RC” Scope Implementation -Scope Assessment -Issue Log -Change Log -Status report -Ensure you only implement project plan (scope) -Perform project health-check -Assess risk and issues - Update risk -Communicate effectively -Anticipate scope change (risk) Post-Imp Phase “Check the work, manage variance” -Performance Report -Budget Update -Scope Update -Risk Register -Implement Approved changed -Conduct Perfromance check (Budget-schedule) -Assess Project risk and issues -Proposal soluition for any verance -Inform project stakeholderes of any issue risk (internal- externa) -Anticipate change and propose a soluition Closing Phase “Close the book, send report” Estimating updates -Performance review -Improvement Plan -Lessons Learnt -Achieving -Complete implmentating project cope -Assess Risk and issues and update the relevent documents -Provide project assessment report -Suggest business improvement collaborate with internal and external stakeholders and obtain their feedback
- 32. PMO Reporting Best Practice • Best Practice 1: Tailor the Dashboard to the Audience • Executives and business management really do not process "FYI" information well. They need to see at a glance if there is anything they should be worried about. So, less data is better than more, and pictures are better than words. Show them the initiatives they care about, plus the ones you want them to care about
- 33. PMO Reporting Best Practice • Best Practice 2: Link Dashboards to Prioritization Decisions • Any dashboard must have links back to the prioritization and portfolio decisions that led to their placement in the active portfolio. Investment type, priority within the investment type and prioritization score should all be carried forward, so future decisions on each initiative can be made within the proper portfolio context.
- 34. PMO Reporting Best Practice • Best Practice 3: Lead the Reader to Action • Many dashboards highlight areas of green status — trumpeting the good job that the project team and PMO are doing. There are two problems with this. First, the readers don't care. As one CIO told us, "Why would I ever look at anything that's green? That's just my people doing their job." What they are looking for when reading the dashboard is what to do to ensure success. So, tell them. The dashboard "owner," PPM leader or PMO has the right and the responsibility to analyze and provide recommendations for actions that should be taken, or decisions that need to be made.
- 35. PMO Reporting Best Practice • Best Practice 4: Provide "Just Enough" Information • For every data element in the dashboard, ask three basic questions about it: • Why are you requesting this particular data element? What will you do with the data? • What have you done to make the data collection and reporting as easy and practical as possible for those affected?
- 36. PMO Reporting Best Practice • Best Practice 5: Include Risk Assessment in the Dashboard • There should be some way to assess risk and attach it to all initiatives, even if it is just an assessment of low, medium or high risk. In the context of dashboard design, one reason to address risk is to decide what projects to show and emphasize. Low-risk projects will not be as interesting to executives as high-risk ones, because there will be less for them to do and less impact if they don't do anything.
- 37. Project Management as a Service (PMaas) Project Phase (PMBOK) PMO Project Acceptance Communication Project Kick Off Meeting Project Kick Off Meeting minutes Project Kick Off Presentation Business Brief Project Plan Risk Register Issue Register Change Log Project Schedule Communication Management Plan Quality Plan Stakeholder Register Implementation Work Implemenation Weekly Status Report Weekly Checkpoint Meeting Project close off Report Project close off Meeting Customer Acceptance Project Lessons Learned Comprehensive Initiation Planning Controlling and Monitoring Closure Project Management Deliverable Lean Intermediate Establish Stakeholder expectation
- 38. The End