Uploaded byLaura Barnard, PMP
How to Setup a High-IMPACT PMO
The document outlines steps for setting up a high-impact Project Management Office (PMO), emphasizing the importance of understanding business needs and aligning services accordingly. It highlights common mistakes, the significance of outcome measurement, and the need for adapting processes and tools based on organizational shifts. Ultimately, the PMO is positioned as a strategic driver for achieving business results, requiring a focus on impact rather than just performance.
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How to Setup a High-IMPACT PMO
- 1. HOW TO SETUPA HIGH-IMPACT PMO By Laura Barnard, PMP IMPACT ENGINE™ SERIES
- 2. 24 years ofexperience building PMOs and developing PM and change capability for a wide range of organizations 15 years “on the inside” running PMOs 5 years partnering with PMO leaders to build PMOs 18 years coaching and mentoring PMO and PM teams to Get. It. Done. Founder and President, Project Management for Change and leader of the highest-IMPACT PMO in the DC area responsible for the Project Management Day of Service, the Impossible PMO® PM4Change.org How to Setup a High-IMPACT PMO
- 3. The top mistakespeople make when starting a PMO WHAT YOU WILL DISCOVER The steps to ensure your PMO is off to the right start How to build a sustainable and high-IMPACT PMO How to Setup a High-IMPACT PMO
- 4. Starting with PMOobjectives Getting busy with templates, tools and process Building a PMO charter Trying to be “business driven” COMMON MISTAKES How to Setup a High-IMPACT PMO
- 5. WHERE DO YOUSTART?
- 6. Improve project performance Reducecosts and increase value delivery Increase project throughput Better utilize / allocate resources Improve productivity Get. It. Done. WHY DO WE DO PMO? How to Setup a High-IMPACT PMO
- 7. START WITH THEOUTCOME PMOs should drive IMPACT
- 8. WHAT IS IMPACT? IT’SNOT ABOUT PERFORMANCE. IT’S NOT ABOUT PROGRESS. IT’S ABOUT REALIZING OUTCOMES THAT ARE GREATER THAN THE INVESTMENT.
- 9. IMPACT IS ACHIEVING HOLISTICRETURN ON INVESTMENT (ROI) VALUE + BENEFITS- COST VALUE – MEASURABLE OUTPUT BENEFITS – SECONDARY OUTCOMES COST – DIRECT (INPUT) AND INDIRECT (OPPORTUNITY)
- 10. NO. 1 How toSetup a High-IMPACT PMO Find the WHY
- 11. What business problemsdo you see? What pain points can you solve? • Are projects realizing their intended benefits? • Are projects taking too long or costing too much? • Are project managers undervalued? Compare to industry, but trust the data you gather internally Don’t assume you know, ask to be sure! ASSESS How to Setup a High-IMPACT PMO
- 12. NO. 2 How toSetup a High-IMPACT PMO Where can you add value?
- 13. Start with greatestneed and IMPACT potential Look for opportunities for quick wins Align services to problems you can solve Start small with one service to one business area and then leverage the momentum to grow Solve for P – Portfolio, Program, Project DEFINE: SERVICES How to Setup a High-IMPACT PMO
- 14. PMOS CREATE IMPACT CONNECTPMOSERVICES TO THE IMPACT ON THE ORGANIZATION AND THE OUTCOMETHE BUSINESSLEADERS WANT TO SEE Outcome IMPACT on Organization PMO Service Offering Transparency •Know what’s going on in the portfolio •Better decision making •Strategic Alignment and PPM •Metrics, Dashboards and Reporting Reliability •Can plan work and project alignment •Can more fully allocate resources •Projects lead to results expected •Can build roadmaps for delivery •Program and Project Execution •Standards and Best Practices •Project Support Return on Investment •Better triple constraint management •Decreased costs and expenses •Increased value and project outcomes •Improved business management of assets •Program and Project Execution •PPM Techniques •Strategic Alignment with PPM •Metrics, Dashboards and Reporting Predictability •Can predict outcomes •Better triple constraint management •Decreased costs and expenses •Increased value •Program and Project Execution •Metrics, Dashboards and Reporting •PPM Techniques Accountability •Teams work toward common goals •All hands on deck mindset •PPM Techniques •Metrics, Dashboards and Reporting •Project Support
- 15. We cannot determine thetalent or tools we need until we know how we will deliver IMPACT.
- 16. NO. 3 How toSetup a High-IMPACT PMO How will you manage?
- 17. Identify areas ofgreatest need where you can deliver IMPACT quickly Determine what success looks like – and talk to others about it Establish standard operating procedures (SOPs) to facilitate delivery Lean portfolio management - don’t build more than you need Drive decision making – that’s why you govern DEFINE: GOVERNANCE How to Setup a High-IMPACT PMO
- 18. Are we doingthe right projects? Are we doing enough of the right projects? Are we doing the projects right? Are we ensuring the priorities and the resources are aligned? How to Setup a High-IMPACT PMO
- 19. EXAMPLE PMO MODELS USETHIS AS A GUIDE TO HOW YOUMIGHT ORGANIZE TO GOVERN AND DELIVERIMPACT Org Structure Functions Business Unit Provides project services to a specific business unit to execute projects Project Specific Temporary entity to accomplish a specific project or organizational objective Governance & Oversight Enables project execution through reporting and portfolio management support services Enterprise / Strategic Responsible for alignment of project/programs to enterprise strategy Center of Excellence Provides standards, best practices, tools, templates to enable better project execution Advisory Provides coaching to PMs and guidance on the project management process
- 20. NO. 4 How toSetup a High-IMPACT PMO Who do you need?
- 21. Who’s with you? Whatstrengths do you need? • Business knowledge and business acumen Define roles and responsibilities Set expectations early and often Engage your sponsor DEFINE: TALENT How to Setup a High-IMPACT PMO
- 22. NO. 5 How toSetup a High-IMPACT PMO What are the tools for the job?
- 23. Never start here! Processmeets services and talent, not the other way around Avoid heavy customization of tools and process – streamline! Phased roll out to methodology, templates, and tools Question everything you build and use – it must drive direct action Go for simple one pagers – no one reads it when it’s more DEFINE: PROCESS AND TOOLS How to Setup a High-IMPACT PMO
- 24. Do not spenda lot of time focused on tools and process before you’ve shown an IMPACT. We assume we know what the organization needs and we are often wrong.
- 25. NO. 6 How toSetup a High-IMPACT PMO What’s the plan?
- 26. Create a businessplan, not a charter (business plans are for sustainable organizations, charters are for projects) • What you will do • How you will organize • How you will deliver • How you will measure IMPACT Build a roadmap of capabilities • Start small and implement in phases • Create IMPACT targets • 30/90 cycles – measure every 30 days, shift every 90 • No big bang! PLAN How to Setup a High-IMPACT PMO
- 27. NO. 7 How toSetup a High-IMPACT PMO Create IMPACT
- 28. Start with onebusiness area and solve a business problem Start with one set of services or service to get it right before expanding Share wins and progress with others, build upon successes Track what’s working and what’s not so you can adapt Keep your roadmap up to date, shift as needed DELIVER IMPACT How to Setup a High-IMPACT PMO
- 29. NO. 8 How toSetup a High-IMPACT PMO How will you know it works?
- 30. Develop an IMPACTmeasurement plan (measure every 30/shift every 90) Tell the story: communicate targets and outcomes Performance does not equal success, IMPACT does Use a core set of IMPACT-ful metrics, EVM is performance but what is actually showing return on investment for your existence? Do not measure everything just because you can! Tie metrics directly to WHY the PMO exists (in business terms) MEASURE IMPACT How to Setup a High-IMPACT PMO
- 31. NO. 9 How toSetup a High-IMPACT PMO How will you adapt?
- 32. Shift focus/services asorganization needs shift – must be agile! Regularly check in and ensure services meet needs Get comfortable letting go when things aren’t working Embrace role as strategy navigator – you drive the strategy delivery Bring people with you through the process to avoid change resistance Regularly revisit the WHY and make sure it still makes business sense SUSTAIN & EVOLVE How to Setup a High-IMPACT PMO
- 33. Think agile: iteratevs. big bang Look for business minded talent Stay focused on IMPACT Avoid the common trap of process and tools Streamline at every turn Reevaluate often, but allow time to stick Don’t boil the ocean Whatever you think you know, always know you are probably wrong How to Setup a High-IMPACT PMO
- 34. IMPACT ENGINE PMO “Remember… Projectmanagement is NOT the end game. Project management is simply the process we use to drive business results and the PMO is the engine that generates that IMPACT for an organization.”
- 35. CONNECT Download the IMPACTPMO Planner here: IMPACTbyLaura.com/IPP Questions? [email protected] © 2018 PMO Strategies