Michael Vidyakin: Assessing Organizational Readiness (UA)

2023-2025 © Michael Vidyakin Michael.Vidyakin@gmail.com URL: Michael.Vidyakin.com

Lesson #2
Assessing
Organizational
Readiness
Lemberg PMO School 2025
https://lembs.com/pmoschool
23 January 2025
MichaelVidyakin

What you have learned during L1 – Introduction to
PMO:
• History of PMOs
• Roles & Functions of PMOs
• Benefits &Trends of PMOs
• DifferentTypes of PMOs
3 1/23/2025

Today’s Agenda / Sections of L2 - Assessing
Organizational Readiness:
1. Identifying the need for a PMO in an IT company
2. Assessing project management maturity in the organization
3. Defining the scope and objectives of the PMO
4. Identifying stakeholders and their roles in the PMO
1/23/2025
4

What are your expectations for this lesson?
5 1/23/2025
1. Розкрити поняття / CMMI , PM3
2. Як зрозуміти чи люди розуміють проектне управління?

Identifying the need
for a PMO in an IT
company
Section 1

Does your company need a PMO?
• A million $$ question
• Depends on many factors of the company specific –
size, culture, maturity, scope, etc.
• Based on top-management needs & decisions
7 1/23/2025

1. Silos operations?
Are the different departments and segments of your
company able to work together?
If not and they’re still operating in silos, then you may
need a PMO.
8 1/23/2025

2. Unified Procedures?
Are your methodologies and procedures consistent
across projects?
If not, then you may need a PMO to standardize these
things across the company.
9 1/23/2025

3. Stakeholders’ expectations
Are senior leaders, top executives, and key stakeholders
happy with the way projects are managed and run?
If not, a PMO can provide advice on best practices and
industry standards for your next projects.
10 1/23/2025

4. Strategy changes or transformations?
Are you in the process of implementing strategy
changes within the organization?
If so, you may need a PMO to provide strategic
direction & alignment.
11 1/23/2025

5. Large & Complex projects?
Do you consistently work on large projects with
significant impact and investment?
If you do, you’re likely to benefit from the experience
and expertise of a PMO.
12 1/23/2025

6. Project transparency
Is project visibility a problem in your organization?
If it is, you may need a PMO to centralize data
tracking and analysis, project performance
monitoring, and resource management.
13 1/23/2025

Potential factors & signs that your company needs in
PMO
• Your processes are not consistent throughout teams
• Your projects are not aligned with your business strategy
• Your human resources are insufficient
• You don’t have a project management knowledge base
• Your company's different departments and segments are not able
to work together
• Your methodologies and procedures are not consistent across
projects
• Your organization has a large number of projects or very big
projects that require coordination and integration.

When a PMO is needed
1. Complex Projects: If your company handles multiple, complex projects
simultaneously, a PMO can provide the necessary structure and oversight.
2. Need for Standardization:Companies requiring standardized project
management practices across various departments benefit from a PMO.
3. Resource Management: Efficient allocation and utilization of resources
across projects is a key PMO function.
4. Strategic Alignment: PMOs help ensure that projects align with the
company's strategic goals.
5. Performance Measurement: If there's a need for consistent project
performance assessment and improvement, a PMO can be invaluable.
6. Risk Management: PMOs are effective in identifying, assessing, and
mitigating risks across projects.
7. Change Management: For companies undergoing significant changes or
transformations, PMOs can provide guidance and stability.
8. Knowledge Sharing: PMOs facilitate the sharing of best practices, lessons
learned, and expertise across the organization.
15 1/23/2025

When a PMO is not needed
1. Small or Simple Projects: For companies with small-scale or less
complex projects, a PMO might be an unnecessary overhead.
2. Limited Resources: If the resource pool is limited, especially in smaller
companies, establishing a PMO might not be feasible.
3. Flexibility Over Standardization: Companies that prioritize flexibility
and individual project autonomy over standardized processes may find
a PMO restrictive.
4. AutonomousTeams: If project teams are highly autonomous and
effective without centralized oversight, a PMO might not add value.
5. Lack of Strategic Alignment: If projects are straightforward and not
directly tied to strategic objectives, a PMO's role may be less impactful.
6. Low Risk and Change Frequency: Companies with projects that have
low risk and change frequency might not need the risk and change
management support a PMO offers.
7. Cultural Resistance: Organizational culture resistant to the structured
approach of a PMO can render it ineffective.
16 1/23/2025

No PMO? Key points to consider
• Organizational Size and Maturity: Larger or more mature
organizations with complex project portfolios often benefit more
from PMOs.
• Project Diversity: The more diverse the project portfolio, the
more likely a PMO will be beneficial.
• Executive Support: Successful PMO implementation requires
strong executive support and alignment with business objectives.
• Additional material:
17 1/23/2025
No PMO? Know when you need
one (pmi.org)

Identification the needs for PMO
Step-by-step plan
1. Initial assessment
2. Evaluate current project management practices
3. Resource management analysis
4. Strategic alignment check
5. Performance monitoring
6. Risk management review
7. Cultural and organizational readiness
8. External factors consideration
9. Collect feedback
10.Cost-benefit analysis
11. Decision and recommendation
12.Presentation to leadership
18 1/23/2025

Step-by-step plan (1,2)
Step 1: Initial assessment and data
collection
• Define Objectives: Clearly outline
what you aim to achieve with a
PMO.This could include improved
project delivery, better resource
management, standardization, etc.
• Gather Data: Collect data on
current project performance,
including timelines, budgets, scope,
and quality metrics.
Step 2: Evaluate current project
management practices
• Assess Project Complexity: Review
the scale and complexity of ongoing
and upcoming IT projects.
• Analyze Methodologies: Evaluate
the consistency of project
management methodologies across
different teams or departments.
• Identify Pain Points: Determine
areas where project management is
falling short, such as delays, budget
overruns, or quality issues.
19 1/23/2025

Step 3: Resource management
analysis
• Resource allocation: Examine how
resources (personnel, technology,
budget) are currently allocated and
identify any inefficiencies.
• Skill Gap Analysis:Assess if there's
a need for better skill management
and training within the project
teams.
Step 4: Strategic alignment check
• Align Projects with Business
Goals: Ensure that IT projects align
with the company's strategic
objectives.
• Change Management Needs:
Identify how well the company is
managing change, particularly in
the fast-paced IT sector.
20 1/23/2025

Step 5: Performance monitoring
• ReviewTracking and Metrics:
Examine existing project tracking
and performance metrics.
• Evaluate Reporting Systems:
Check the effectiveness of current
reporting mechanisms and
stakeholder communication.
Step 6: Risk management review
• Risk Assessment Process:Analyze
the current approach to risk
identification, assessment, and
mitigation in IT projects.
21 1/23/2025

Step 7: Cultural and organizational
readiness
• Assess OrganizationalCulture:
Determine if the culture is
conducive to the structured
approach of a PMO.
• StakeholderAnalysis: Identify key
stakeholders and assess their
openness to adopting a PMO.
Step 8: External Factors
Consideration
• MarketTrends: Look at external
factors such as market demands
and client expectations.
• RegulatoryCompliance:Consider if
compliance and regulatory
standards necessitate a PMO.
22 1/23/2025

Step 9: Collect feedback
• Conduct Surveys/Interviews:Get
insights from project managers,
team members, and other
stakeholders about their views on
project management challenges
and the potential role of a PMO.
Step 10: Cost-benefit analysis
• Estimate PMO Costs: Consider the
financial implications of setting up a
PMO.
• Project Benefits: Estimate the
potential benefits, including
efficiency gains, better project
success rates, and alignment with
strategic goals.
23 1/23/2025

Step 11: Decision and
recommendation
• Compile Findings: Summarize the
insights from the previous steps
into a comprehensive report.
• Make a Recommendation: Based
on the analysis, recommend
whether or not to establish a PMO.
Step 12: Presentation to
leadership
• Prepare Presentation: Develop a
clear and concise presentation of
your findings and
recommendations for the
company's leadership.
• Schedule and Hold a Meeting:
Present your findings and facilitate
a discussion on the next steps.
24 1/23/2025

How do you know that your company does really
need a PMO now? Or .. there is no need?
25 1/23/2025
• Налагодити комунікацію та навчити всіх працювати (як робити роботу)
• Запит від керівництва
• Потрібно побудувати всі операційні процеси
• Розширення штату – для розуміння процесів, онбордингу, навчання
• Запит кері-ва – ефективне планування ресурсів на кілька місяців наперед

26 1/23/2025

Assessing project
management
maturity in the
organization
Section 2

What is Project management maturity?
• Project management maturity reflects a company’s ability to
lead successful projects.
• Companies with underdeveloped maturity may not finish projects
on time or within budget.
• Having high project management maturity means planning,
executing, and completing projects well (without relying solely
on the talents and leadership of a few gifted individuals).
• A project management maturity assessment is a process of
evaluating the reliability, consistency, and effectiveness of an
organization's project management approach, methodology,
strategy, and decision-making.
• It can be done internally or by a professional consultant, and it
involves various methods of data collection, such as interviews,
surveys, benchmarks, and document reviews.

Characteristics of HIGH project management maturity
• Projects finish on schedule
• Teams mitigate risks and complete projects well
• Finished projects reflect original goals
• Projects deliver benefits
• Projects continue successfully despite project changes
• Project management applies good project governance throughout
the organization.
29 1/23/2025

Why do you need to assess the maturity?
• A 2018 survey “Pulse of the Profession by PMI” showed that companies
waste $1 million every 20 seconds because of poor project
management.
• A maturity assessment is needed if any of following are true for your
company:
1) Projects don’t have kick-off or close meetings.
2) Projects lack charters and statements of work.
3) Projects are not realistic or time-bound.
4) Teams repeatedly fail to implement processes or tools.
5) Managers don't get the results they need.
6) Employees don't know what to do.
7) Management doesn’t receive clear deadlines.
30 1/23/2025

Чи можливо побудувати ПМО в такій організації?
(травень 2021 – лютий 2022)
31 1/23/2025

Project Management Maturity Models
• Project management maturity models measure how well a
company handles projects.
• Such models provide criteria and scoring systems to assess
capabilities.
• Models also provide a framework for implementing process
improvements in the future
• 25+ models exist
32 1/23/2025

7 models to consider
1. Capability Maturity Model (CMM)
2. Organizational Project Management Maturity Model (OPM3)
3. Project Management Maturity Model (PMMMSM)
4. Berkeley Project Management Process Maturity Model
5. Gartner Score Diagnostic Family
6. Kerzner’s Project Management Maturity Model
7. Portfolio, Programme, and Project Management Maturity Model
(P3M3®)
33 1/23/2025

1. Capability Maturity Model (CMM)
• Designed with contracted software projects in mind, the Capability
Maturity Model determines a company’s maturity level by evaluating its
standardized processes.
• This method includes two approaches to assessment and improvement:
staged, which tracks a specific set of processes throughout an
organization, and continuous, which follows process capabilities based
on an organization's priorities.
• Once the evaluation is complete, managers rank the company based on
the model’s five maturity levels: initial, managed, defined, quantitatively
managed, and optimizing.
• While the Capability Maturity Model is an excellent option for evaluating
software companies, it is adaptable for any industry.
• The CMMI Institute (ISACA since 2016 - https://cmmiinstitute.com/),
which owns the model, notes that companies in aerospace, finance,
healthcare, information technology, software, defense, transportation,
and telecommunications have found success using its methods.
34 1/23/2025

Levels of Maturity
35 1/23/2025

2. Organizational Project Management Maturity
Model (OPM3)
• The PMI’sOrganizational Project Management Maturity Model can help
managers assess maturity levels in projects, programs, and portfolios.
• This model uses the same 10 knowledge areas of PMBOK® guide to drive
assessments, which are project integration, time, scope, cost, quality,
human resources, risk, communications, stakeholders, and procurement.
• Once the assessment is complete, the model assigns one of four maturity
stages: standardize, measure, control, and continuously improve.
• Any organization in any industry can use it to make a thorough
assessment of, and ultimately improve, its project management
processes.
• Additional resources:
36 1/23/2025
1) PMI organizational maturity model
2) Assessing project management
maturity (pmi.org)

37 1/23/2025

3. Project Management Maturity Model (PMMMSM)
• The model also uses the PMBOK® 10 knowledge areas to create a
standardized method for maturity assessment.
• When using this model, project managers assign one of five maturity
levels to each knowledge area.These levels are the following: initial
process, structured process and standards, organization standards and
institutionalized process, managed process, and optimizing process.
38

4. Berkeley Project Management Process Maturity
Model
• Applicable to any industry
• When using this model, project managers assess the maturity level of key
project management processes and organizational characteristics and
rank them on a five-stage maturity scale, which includes the ad-hoc,
defined, managed, integrated, and sustained stages.
39 1/23/2025

5. Gartner Score Diagnostic Family
• Founded in 2014, the Gartner Score Diagnostic Family is a collection of
online maturity assessments.
• Highly customizable and adaptive, this model helps managers identify
priority growth areas based on their company’s strategic aims.
• With its interactive, intuitive tools, the Gartner Score Diagnostic Family
reveals which processes are undeveloped and provides a cross-functional
overview of the areas that are critical to strategic planning.
40 1/23/2025

6. Kerzner’s Project Management Maturity Model
• The Kerzner model defines each of its five maturity levels by the primary
focus of that stage: common language, common process, singular
methodology, benchmarking, and continuous improvement.
• For example, at the common process level, managers should work on
designing and implementing standardized, repeatable processes, while at
the continuous improvement level, managers should focus on monitoring
current processes and tweaking them as needed.
41 1/23/2025

7. Portfolio, Programme, and Project Management
Maturity Model (P3M3®)
• This model ranks maturity on a five-stage scale and gauges maturity
based on seven core processes: organizational governance, management
control, benefits management, risk management, financial management,
resource management, and stakeholder management.
• In addition to improving organizational processes, this model is also
useful for assessing and improving project portfolio management (PPM).
42 1/23/2025

With which tools assessments are done?
• Artifact Collection: Reviewing documents helps managers determine
whether or not teams follow processes and write project plans, and how
well they do so. A document review also shows if practitioners understand
why processes are important.
• Interviews: Conducting interviews individually or in groups helps reveal
how widely teams apply processes and understand process importance.
Personal interviews, in particular, can reveal commitment to and
enthusiasm for following practices and process nuances.
• Questionnaires: Administering questionnaires is a more methodical,
standardized method of determining project management maturity.
Models offer either self-administered or 360-degree questionnaires.
Companies often limit self-administered surveys to upper management
and distribute 360-degree questionnaires to teams and individuals.The
results of a 360-degree questionnaire administered by a third party may
provide a more balanced perspective than self-administered surveys.
• Benchmarking: Benchmarking against other organizations provides an
objective standard for considering a company’s efforts.
43 1/23/2025

Assessment Radar Chart
44 1/23/2025

Improved Maturity
• The organization has achieved full project
management maturity when
1) it has met the requirements and standards for project
management effectiveness as defined by the model, and
2) it is capable of demonstrating improvements such as on-time
project delivery, cost reductions, organizational efficiency, and
profitability.
45 1/23/2025

What is the maturity level (1-5) of your PMO? - in
the past (AS WAS), now (AS IS) andTO BE?
46 1/23/2025
• AS IS 1 -> 5 (2027)
• AS IS 2-3 -> 4 (2026)

Лелека несе
якісний такмед
для ЗСУ –
ПІДТРИМАЙ !
47 1/23/2025
URL:
www.Leleka.Care
FB:
facebook.com/Lel
ekaFoundation

Defining the scope
and objectives of
the PMO
Section 3

Main focus of PMOs activities
• A PMO is a centralized department in an organization that oversees and
manages projects via project managers. It provides support, guidance,
standards, tools and training to ensure projects are completed on time
within budget, adhering to the required quality standards.
• PMO primarily focuses on three key functions:
1) Governance —Whether ensuring regulatory compliance, defining
standards, creating project policies and procedures, or periodic reviews
and audits, the PMO team works with all the project managers to
ensure strong governance on projects undertaken by the organization
2) Support — A PMO provides support and guidance to project managers
and their project teams, develops methodologies and processes,
coaches and trains project teams, allocates resources and budget, and
procures and adopts tools
3) Delivery —The PMO team also focuses on stakeholder management,
documentation and delivery, risk management, tracking and
collaboration, change management, and ensures smoother execution
and delivery

General steps to set up a PMO (1/4)
1. Define your core business case — Create a case to define the
problems that project management is facing and the actual need
of a PMO.This document should answer how the organization
would benefit from a PMO and outline key objectives
2. Gain buy-in from top management — Present the business
case to the management and secure their support, funds, and
resources permissions
3. Define the scope — Define the PMO responsibilities and its
areas of work.
This should include all projects the PMO will manage
• Your PMO’s scope definition is complete when both product
and project scope elements are reflected and integrated
• Your PMO project’s scope is well-defined when each
stakeholder can see the elements that are important to them
and when all stakeholders agree that the project’s scope is
complete and accurate.
50 1/23/2025

General steps to set up a PMO (2/4) - SCOPE
• A tabular approach can be used to scope
definition to help stakeholders understand
what the PMO is, what the PMO might be
in the future and what the PMO is not.
• Defining scope in a tabular format allows
scope elements to be categorized and
bundled, which allows for detailed review,
deeper insights, and at-a-glance synthesis
of a lot of information.
• There could be 100+ scope elements to
evaluate when defining a PMO.
• For each scope element, the presence or
absence of text in the columns indicates
that element’s scope status.
• Descriptive wording can be provided
instead of a generic “x” to ensure shared
understanding of complex elements.
51 1/23/2025

4. Define the type of PMO to adapt — Knowing the scope and
responsibilities, analyze and decide on which type of PMO will
best suit your organization
5. Define the process and methodologies — Develop your initial
process, methodology, and best practices to be followed by
projects. Create templates for various communications in project
management
6. Identify success metrics — Identify the performance indicators
that can help measure the success and effectiveness of the PMO
7. Create a PMO charter —The charter is an official document that
explains the mission, vision, goals, objectives, and scope of the
PMO. It also records detailed processes, operating procedures,
and methodologies that the PMO will adapt
8. Acquire resources — Hire and train the PMO staff, procure
required tools and technologies, procure project management
software, and any other required assets
52 1/23/2025

9. Training and support —Train project managers and project
teams on initial processes, methodologies, standards,
templates, practices as defined in the charter
10.Implement operating procedures —Work with project
managers and teams to implement standards, processes, best
practices, tools, and methodologies
11.Monitor and evaluate — Constantly monitor initial project
performance and impact due to introduction of the PMO.
Evaluate the results and take adequate actions to improvise
12.Communicate the value — Communicate the value of the new
PMO to all the stakeholders and explain the new milestones
13.Iterate and improve — Constantly evaluate and improve
operating procedures
53 1/23/2025

Some peculiarities in establishing a PMO
• Establishing a project management office doesn’t happen
overnight
• It can take at least a month or two and up to several months or
years to establish a strong, mature PMO
• When you first get started, create a small PMO with one project
and a small set of responsibilities
• Then you can slowly expand the scope of PMO and include more
projects as and when it becomes more mature and established
• Seek constant feedback from stakeholders and secure support
from senior management by periodically communicating values to
them
• The more your stakeholders can see project elements of interest
to them in your scope statement, the easier it becomes to manage
and control your project
54 1/23/2025

Common challenges when implementing a PMO
• A PMO can complicate the daily tasks of project
managers and teams by adding excessive paperwork.
• This potentially leads to slowness in project execution
and stretches project timelines resulting in financial
losses
• Forming a PMO can be expensive as it adds costs like
staff salaries, software and tools, training, and ongoing
operational expenses.
• Smaller organizations should not adopt PMO for this
reason and larger organizations should be mindful to
keeping costs in check
• Not all project teams and stakeholders might be
adaptable and some might resist adapting the policies,
procedures, and templates.
• Some teams might view a PMO as an intrusion, leading
to friction within the organization
55 1/23/2025
Added bureaucracy
Resistance to
change
Overhead costs

New PMO of the future
• Leaders can demand value and purpose-driven governance and
structure in the new PMO.The new PMO should be both value-driven,
with a seat at the C-suite table, and purpose-driven with
implementation teams recruited from across the organization as well
as trusted partners.
• PMO implementation models will be customized to help deliver the
critical performance outcomes and the notion of a one-sized PMO will
likely become obsolete.
• The PMO of the future can be defined by how business leaders
challenge the PMO of today, inviting an objective PMO maturity
review to help identify improvement areas and define their strategic
PMO plan.
• PMO transformations should become commonplace as business
leaders engage with expert partners to help strategically source their
PMO functions with implementation models that work for them
including outsourced, co-sourced or point solutions.
• PMO transformation begins by defining the right scope and
establishing a set of achievable objectives and realistic boundaries
that are based on a well-researched expert maturity assessment.
56 1/23/2025

Additional resources to read
• The Complete Guide to Project Management
Office (PMO) [2023] • Asana
57 1/23/2025
• Building a PMO from the ground up:Three
stories, one result (pmi.org)

What is out of scope in your PMO?
58 1/23/2025
• Немає потреби контролювати процеси на етапі проєктування

Identifying
stakeholders and
their roles in the
PMO
Section 4

Why stakeholders matters?
Scope/
Requirements
Schedule
Cost
Project team
Outcomes
Culture
Benefits
Quality
Plans
Risk
Success
• by revealing the need change elements of the scope and/or project
requirements
• by expediting or halting project tasks editing or halting project tasks
• by cutting costs or raising expenses with changes
• by controlling access for skillful, knowledgeable, outcome-driven staff,
fostering a learning environment
• by informing plans or advocating changes
• by enabling or blocking work required for the desired outcomes
• by setting the team's involvement and organization's role
• by setting long-term goals for project value
• by defining the risk thresholds of the project he project
• by identifying and requiring quality requirements
• by defining success factors and participating in the evaluation of success

PMO outcomes depend on Stakeholder needs
61 1/23/2025
Interest
Power/
Authority
Influence
Impact on
outcomes
Need
Stakeholder

Stakeholder management cycle
62 1/23/2025

Stakeholder Management
Useful Online Resources
Project Management Institute:
• Steps to Identify and Prioritize Stakeholders | PMI
• Stakeholder management strategies
• C-suite stakeholders
Other Sources:
• PMO Stakeholder Management: Definition and Roles
• How to Identify Project Stakeholders in Project Management
• What Is Stakeholder Management?
• How to identify stakeholders? (+Identification Cheatsheet)
• How to identify stakeholders (With examples) | Indeed.com UK
63 1/23/2025

Домашнє завдання
Наприкінці курсу Вам необхідно буде презентувати рішення та
план по впровадженню/оновленню PMO ваших/обраних
компаній з урахуванням знань та практик, отриманих на
заняттях курсу.
З заняття #2 у Вашій презентації мають міститися
обґрунтування:
1. Яка готовність організації до PMO та/або який поточний
рівень розвитку проєктного управління?
2. Який очікується обсяг робіт (та завдань) PMO? Що входить, а
що поза межами PMO?
64 1/23/2025

Ready to support your PMO
Michael.Vidyakin.com
+380 97 926 1101
65 1/23/2025

Michael Vidyakin: Assessing Organizational Readiness (UA)

Michael Vidyakin: Assessing Organizational Readiness (UA)

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