Project Management Office –

Center of Excellence
The Improvement Paradox*

Despite the demonstrated benefits of improvement programs most end in

failure. Companies have found it extremely difficult to sustain even initially
successful process improvement programs. Even more puzzling, successful
improvement programs sometimes worsen business performance, triggering
layoffs, low morale, and the collapse of commitment to continuous
improvement. This phenomenon is known as the “Improvement Paradox”.

Process improvement is an imperative for businesses seeking competitive

advantage, yet it is disturbing how few organizations make lasting and
successful use of process improvement tools such as Six Sigma, CMMI and
reengineering. These tools should help to raise productivity, boost quality and
enhance competitiveness.
* MIT Sloan School of Management study conducted under a grant from the National Science Foundation.

Why Process Improvement Initiatives fail and what can be done to influence
this problem is the subject of today’s presentation.
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 Project Management Office –
Center of Excellence
Presentation: 12:00 – 12:50
Topics:
• The Results Model (review of the March presentation)
• Introducing the PMO: Master of the Project Management Craft
• The Current State of the PMO?
• What is a PMO and what does it do?
• How is a PMO organized?
• How does a PMO work?
• How can I start a PMO?
• PMO in action – Can a PMO Reverse the Improvement Paradox
Audience Questions: 12:50 – 1:00

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 Project Management Office –
Center of Excellence
Results First: Practice
• Results first – Change Second. When results come first the organization
and its people will find ways to meet expectations - or –
Big Hairy Aggressive Goals (BHAG’s) encourage improvement.
• When we put results first the process improvement group’s role becomes one
of support. They respond as needed to the demand for help.
• Improvement ‘Pull’ rather than ‘Push’

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 Project Management Office –
Center of Excellence
Results first – Change Second examples:

• The Manhattan project: The Manhattan Project was the project to develop the first nuclear
weapons during World War II . It refers specifically to the period of the project from 1942-1946 with its
scientific research directed by the American physicist J. Robert Oppenheimer. The project succeeded
in developing and detonating three nuclear weapons in 1945.
The project's roots lay in scientists' fears that Nazi Germany was also investigating such weapons of
its own. The Manhattan Project would eventually employ more than 130,000 people and cost a total of
nearly $2 billion.

• Apollo Project: President Kennedy in a speech in September 1962 said, "No nation which
expects to be the leader of other nations can expect to stay behind in this race for space". Kennedy
asked Congress to approve more than $22 billion for the Apollo Project, which had the goal of landing
an American man on the moon before the end of the decade.

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 Project Management Office –
Center of Excellence
Results First: Gone Bad

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 5
 Project Management Office –
Center of Excellence
The Results Model: The Frame Work
• The Results Model complements the Results First approach by addressing
the “Change Second” part. It provides a framework to understand and manage
the change that is necessary to achieve results.
• The Results Model begins with the Results-First premise, but adds people,
processes and management. These components work together, collaboratively
to produce products and services. To achieve results requires that Individuals,
Processes and Management are competent and aligned.
• In order to be effective and efficient Individuals, Processes and
Management must possess and practice Business, Technical and Project
Management competency.
• Individual, Process and Management competence is not complete if it only
addresses the Technical (how) aspects of producing a product/service and
does not also consider the Business and Project Management requirements as
well.
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 Project Management Office –
Center of Excellence
Results Model: Illustrated
To produce results and achieve strategic goals and objectives requires that
Individuals are:
• Business Competent – they produce the right product/service
• Technically Competent – they produce the product/service right
• Project Management Competent – they produce the product/service within the
right time and cost.

RESULTS = Ic * Pc * Mc

Bc Tc PMc

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 7
 Project Management Office –
Center of Excellence
Results Model: Illustrated

RESULTS = Ic * Pc * Mc

Bc Tc PMc

RESULTS = ( I c = .9 ) * (Pc = .7 ) * (Mc = 1)

RESULTS = .63

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 8
 Project Management Office –
Center of Excellence
Results Model: A Systems Approach

Policies –
Procedures –
Management
Techniques

Up-line Reports

Process

Customer

Input B (from previous Individual

Process)

Product

Tools
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 Project Management Office –
Center of Excellence
Overcoming the Improvement Paradox:
The PMO - Solution:
Using a RESULTS FIRST approach the PMO becomes an effective instrument
to overcome the Improvement Paradox.
A PMO provides expertise tailored to your business performance requirements
and supports the strategic goals and objectives within the organization.

A PMO provides the agility and resources necessary to support project

management performance improvement.

An effective PMO achieves results by supporting and delivering the right

products/services, right, and on time and budget.

A PMO is NOT an Improvement Initiative. It uses any improvement method

available to change (improve) performance to achieve results.

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 Project Management Office –
Center of Excellence
Overcoming the Improvement Paradox:
The PMO – Master of the Craft:
The PMO as the master project management practitioner has the talent,
expertise and experience to:

• Align projects to strategic business goals and objectives – Results First

• Assess the state of a project – Evaluate performance using the Results Model
• Prescribe corrective actions – Improve project effectiveness and efficiency

As Master of the Craft the PMO can:

• Objectively assess and diagnose what needs to be done

• Correctly select and implement the solution
• Effectively and efficiently improve performance

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 11
 Project Management Office –
Center of Excellence
State of the PMO
“The Project Management Office [PMO] may be the fastest growing organization
structure in project management.” (Status Report. Project Works May/June 2003.

A recent article in CIO magazine quoted business advisory firm, Hackett Group, for
saying the "Use of a Project Management Office [PMO] is another key to achieving world-
class status." The article indicated that half of world-class companies manage IT projects
through a PMO compared to just 25% of median companies. Hackett defines a "world-
class" IT organization as one that scores in the top 25 percent in its client database for
measures of efficiency and effectiveness.

Given such recent focus on PMOs, it is expected that senior IT Executives would wonder
about the relevance of a PMO for their organization. A PMO must be a necessary
component of all project focused IT organizations. Furthermore, its overall function ties
directly to achieving the objectives set by the CIO.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 12
 Project Management Office –
Center of Excellence
Why are PMOs Increasing?
The PMO is a response to a serious and seemly intractable problem.
The Chaos Report produced annually by the Standish Group reveals that;
• Only 44% of projects typically finish on time
• Projects usually complete at 222% of the duration originally planned
• Project cost typically reaches 189% of the original budgeted cost
• 70% of projects fall short of their planned scope (technical content delivered)
• 30% are cancelled before completion.

According to a Gartner, Inc. study in 2001 40% of IT projects failed to meet business
requirements.

According to The Wall Street Journal 42% of all technology projects launched in the U.S.
are abandoned before completion.
Good news/Bad news:
These figures represent a slight improvement over earlier Chaos Reports, but …they still
portray a bleak picture of inefficiency and poor planning and execution.
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 13
 Project Management Office –
Center of Excellence
PMO: What is it?
What’s in a Name? The PMO may be called a:

• Project Office
• Project Support Office
• Program Management Office
• Project Management Group
• Project Management Center of Excellence
• Directorate of Project Management
• Project Management Community of Practice
Project Management Offices (PMOs) aren't one-size-fits-all. The PMO you
establish for one client may be markedly different from the next. Always start by
defining how the PMO will operate within the organization; what are it’s
strategic goals and objectives then establish a charter to anchor it to its mission
and vision.

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 Project Management Office –
Center of Excellence
PMO: What is it? What can it do?

It is a clearing-house of best practices, methodologies, tools, techniques and

lessons learned:
The PMO is the creator and guardian of corporate methodology, standards, and
metrics.
It provides a thorough review and audit of the project management practices, a
baseline, of the enterprise to insure that good, standardized project
management practices are being applied.
The PMO is able to streamline methodologies, map out different models, and
determine best practices that can be applied across the corporation.
It has the ability to adapt and tailor its processes and approaches to respond to
the unique needs of projects.

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 Project Management Office –
Center of Excellence
PMO: What is it? What can it do?

It is the craft guild of master practitioners who lead, mentor and inspire the
apprentices and journeyman.

PMO can provide assistance (i.e., training, coaching, and mentoring) in using
standard project management practices to achieve results.

To ensure that projects are healthy, the PMO uses assessment tools sufficient
to determine project management competence, and can intervene either
directly in ‘troubled projects’ or indirectly with competency-based business
training.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 16
 Project Management Office –
Center of Excellence
PMO: What is it? What can it do?

It is the gatekeeper and the steward of project governance:

The PMO provides project governance structures that involve both the project
and the functional organizations. ‘Governance’ is a layer of control over the
project that is exercised by, or on behalf, of the people who are paying for the
project.
It is usually at a higher level in the organization than the level of detailed
operational control. It can involve the project sponsor, the project director
and/or an advisory board or steering group, in addition to the project manager
and core members of the project team.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 17
 Project Management Office –
Center of Excellence
PMO: What is it? What can it do?

It is the nucleus of a project management culture and the community of

practice.

The Project Management culture or Community of Practice (CoP) embodies a

group of people informally bound together by shared expertise and passion
for a common goal or discipline.

Members are mutually engaged in activities that focus on the practice, the
purpose of the community. This influences members to establish relationships
that facilitate full participation.

Eventually the CoP develops a shared vocabulary and repertoire of

resources, tools, documents, artifacts, routines, and accumulated knowledge.
Members take ownership of the practice. They share a common goal or
mission and become mutually accountable for the group.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 18
 Project Management Office –
Center of Excellence
PMO: What is it? What can it do?

According to PMI’s PMO Special Interest Group:

The PMO is the organizational structure, methodologies, processes,

procedures, controls, tools, people, training, and other components serve to
integrate existing projects, manage the portfolio, control functions, and
successfully deliver the organization’s business objectives.

In other words, a PMO's main function is to focus on fostering project

management excellence throughout the organization. Project management
excellence is only achieved when standardized processes, procedures,
tools, training and support functions are established, implemented, and
continuously improved upon by a PMO. This sets a strong foundation for
the successful management of strategic project initiatives.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 19
 Project Management Office –
Center of Excellence
How is the PMO organized?

THE PMO EFFORT IS A FULL TIME, VALUE-ADDED FUNCTION –

perhaps one of the most important tools that the executive team must have to
meet their goals. It is not about saving cost; it is about staying in business. To
any executive who is thinking about “part-timing” it or aligning it to one
functional area, our advice would be to forget the whole idea.
Kendall and Rollins, Advanced Project Portfolio Management and the PMO.

The Gartner Group identified four different PMO organizational models:

1. Project Repository Model

2. Project Coach Model
3. Enterprise PMO Model
4. Deliver Value Now Model

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 20
 Project Management Office –
Center of Excellence
How is the PMO organized?

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 21
 Project Management Office –
Center of Excellence
How is the PMO organized?

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 22
 Project Management Office –
Center of Excellence
How is the PMO organized?
Project Management Office
Organization
Project PLANT CEO
CEO

Management
Office Director Contracts
Contracts Dept
Procurement
Procurement Dept
Dept Dept

Inform ation
Information
T echnology
Technology Dept
Dept
Plant
Project Projects
Project
Management
Management s
Steering Group
Working Group
Project
Project
Project
History
History
Performance
Performanc Portfolio
Be nc
Data
e Data Behnch
Example s
Te mplate s Le sson MMarks
arks
Le ssons
s
Proce dure s Le
Learne
arned
Policie s d
Project
Project
Repositor
Repository
y

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 23
 Project Management Office –
Center of Excellence
How does a PMO work?
Project Management Office
Organization
Project PLANT CEO
CEO

Management
Office Director Contracts
Contracts Dept
Procurement
Procurement Dept
Dept Dept

Inform ation
Information
T echnology
Technology Dept
Dept
Plant
Project Projects
Project
Management
Management s
Steering Group
Working Group
Project
Project
Project
History
History
Performanc Portfolio
Performance Be nc
Data
e Data Behnch
Example s
Te mplate s Marks
Le sson M arks
Le ssons
s
Proce dure s Le
Learne
arned
Policie s d
Project
Project
Repositor
Repository
y

Project Management Working Group

Practitioner Level Role:
Expert project practitioners responsible for
infusing project management practices into
organizational projects. They represent best
and brightest project management talent. The
PMWG may include other technical and subject
matter experts as required. Reports to PMO
Director

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 24
 Project Management Office –
Center of Excellence
How does a PMO work?
PMO Director (Champion)
Mid-Management Level Role: responsible
for oversight, budget and planning of all
plant projects. Reports to the Project
Management Steering Group

Project Management Office

Organization
Project PLANT CEO
CEO

Management
Office Director Contracts
Contracts Dept
Procurement
Procurement Dept
Dept Dept

Inform ation
Information
T echnology
Technology Dept
Dept
Plant
Project Projects
Project
Management
Management s
Steering Group
Working Group
Project
Project
Project
History
History
Performanc Portfolio
Performance Be nc
Data
e Data Behnch
Example s
Te mplate s Marks
Le sson M arks
Le ssons
s
Proce dure s Le
Learne
arned
Policie s d
Project
Project
Repositor
Repository
y

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 25
 Project Management Office –
Center of Excellence
How does a PMO work?

Project Management
Steering group (PMSG)
Strategic level Role: Upper level
management responsible for
corporate vision, mission and goals
regarding project management.
Reports directly to Senior
management and executives.

Project Management Office

Organization
Project PLANT CEO
CEO

Management
Office Director Contracts
Contracts Dept
Procurement
Procurement Dept
Dept Dept

Inform ation
Information
T echnology
Technology Dept
Dept
Plant
Project Projects
Project
Management
Management s
Steering Group
Working Group
Project
Project
Project
History
History
Performanc Portfolio
Performance Be nc
Data
e Data Behnch
Example s
Te mplate s Marks
Le sson M arks
Le ssons
s
Proce dure s Le
Learne
arned
Policie s d
Project
Project
Repositor
Repository
y

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 26
 Project Management Office –
Center of Excellence
PMO Working Group (PMWG)

Responsibilities Operational Level – Practitioners

• Creates and maintains project
• Act policies andbetween
as liaison proceduresPMWG and MSG
•• Maintain
Createsand and maintains
monitor project project repository
performance data
•• EnsurePerformsthat the PMWGassessments
project has necessary resources
• Oversee and manage the Project portfolio
•• Develop
Mentors andand tutors
maintain theproject
PM/CoEteams
budget
•• Ensure
Participates with
the Project project team
Management skillsto
and
processes align with
provide necessary skillsa standard (PMBOK)
• Optimize Project performance
•• Integrate
Helps project team to infuse
Project Management project
discipline with other
management
disciplines requiredtechniques, lessons
in plant projects
• Maintain
learnedand and promote
tools continuous process
improvement
•• Create
TailoraPMBOK
PMO businessprocesses
function to project
and cost center
specific and
• Supports needspromotes PMBOK
•• Determine
Has necessary project
specific best practices
experience and
• Manage employee training plan PMP certification
credentials i.e., PMP certification

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 27
 Project Management Office –
Center of Excellence
PMO Working Group (PMWG)
Authority
• Recommend remedial actions
• Report non-compliance to the PMO
• Waive PMBOK compliance through PMWG approved project tailoring
• Create policies and procedure

Duties
• Mentor and guide Project Manager and Team perform project functions as required
• Perform project quality assurance audits
• Report non-compliance to Project Manager for action
• Perform configuration management of PMO Policies, procedures, training and tools (all data)
• Creates and maintains the PMO repository
• Perform project closeout audits
• Participate in or oversee development of project lessons learned
• Conduct PMBOK training and assessment
• Assess project readiness
• Review and approve project work products, including but not limited to: 1. Charter, 2. WBS,
3. Risk management plan, 4. Communication plan, 5. Cost and schedule control plan,
6. Performance reporting – EVM and 7. All others as required.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 28
 Project Management Office –
Center of Excellence
PMO Director (Champion)
Responsibilities Tactical Level – Mid-Management
• Act as liaison between PMWG and MSG
• Maintain and monitor project performance
• Act dataas liaison between PMWG and MSG
•• Maintain
Ensure andthatmonitor
the PMWG has
project necessary
performance data
• Ensure
resourcesthat the PMWG has necessary resources
•• Oversee
Overseeand andmanage
manage the Project portfolio
the Project portfolio
•• Develop and maintain the PM/CoE
Develop and maintain the PMO budget budget
• Ensure the Project Management skills and
• Ensure the Project Management skills and
processes align with a standard (PMBOK)
processes
• Optimize align
Project with a standard (PMBOK)
performance
•• Integrate
OptimizeProject
project performance
Management discipline with other
• disciplines
Integrate Project
required Management
in plant projectsdiscipline
• Maintain
with other anddisciplines
promote continuous
requiredprocess
in projects
improvement
• Maintain and promote continuous process
• Create a PMO business function and cost center
improvement
• Supports and promotes PMBOK
•• Determine
Create a PMO business
specific andpractices
project best cost center
•• Manage
Supports and promotes
employee PMBOK
training plan PMP certification
• Determine specific project best practices
• Manage employee training plan and PMP
certification
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 29
 Project Management Office –
Center of Excellence
PMO Director (Champion)

Authority Duties
• Appoint and remove PMWG • Facilitate and expedite interaction
members between the PMWG and MSG
• Direct/authorize PMWG activities • Translate strategic goals and
• Intervene in at-risk projects objectives into actions for the PMWG
• Assess project compliance to • Authorize PMWG work
standard (PMBOK) • May act as the Head of the PMWG
• Ensure that projects are PMBOK • Report project performance to the MSG
compliant • Present project management policies
• Reward excellent performance and process to the MSG for their
• Authorize project team performance review and approval
incentives • May participate on the MSG but not
• Creates PMO budget as a voting member
• Reviews and approve PMWG • Maintain quantitative project data
• recommendations for resources, • Review and approve PM/CoE policies
tools and training and procedures

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 30
 Project Management Office –
Center of Excellence
Project Management Steering group (PMSG)

Responsibilities Strategic Level – Corporate Officers

• Reviews and approves all

project policies and procedures
• Align projects with corporate level
goals and objectives
• Mandate and ensure Standards
compliance
• Require and enforce standard project
tools, methodologies, metrics.
• Review and approve projects against
a standard project acceptance criteria-
(Business Case)
• Manage Project Portfolio
• Establish Project performance metrics
• Establish Project Manager
qualifications

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 31
 Project Management Office –
Center of Excellence
Project Management Steering group (PMSG)

Authority Duties
• Terminate projects • Review project performance metrics
• Direct PMO intervention into at-risk • Review and approve PMWG policies
projects and procedure
• Create, maintain and modify project • Review PMWG non-compliance
reports
portfolio
• Review PMWG recommendations
• Issue site wide directives involving
• Initiate corrective action through
project policies and procedures
the PMO
• Control project approval and budget
• Direct and mandate policy, procedure
• Review, approve and authorize
and process Compliance
projects for the project portfolio
• Acknowledge and reward outstanding
project performance
• Review, approve, sign and support
project charter

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 32
 Project Management Office –
Center of Excellence
How does a PMO work?
PMO Scenario #1: Project Management Office
The PMO as mentor.
An engineer/project Project
Organization
PLANT CEO
CEO

manager supporting a Management

program is being asked Office Director Contracts
Contracts Dept
Procurement
Procurement Dept
Dept Dept
to develop a schedule
(plan), to identify risk 3 4 Inform ation
Information
T echnology
Technology Dept

and track cost. He Plant

Dept

suddenly realizes that Project Projects

Project
he needs to know more Management
Management 1 s
Steering Group
about project Working Group
management. He is the Project
Project
Project
lead engineer on the 2 Performance
Performanc Portfolio
Be nc
History
History

Be nch
project and he doesn’t Data
e Data
Te mplate s
Example s
Le sson M
h
Marks
arks
Le ssons
s
feel that project Proce dure s Le
Learne
arned
Policie s d
management is his Project
Project
area of expertise. He Repositor
Repository
wants his project to y
succeed. So he asks
the PMO for HELP!

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 Project Management Office –
Center of Excellence
How does a PMO work?
PMO Scenario #2: Project Management Office
The PMO & Portfolio
Organization

Management. The Project PLANT CEO

CEO

Management
MSG is preparing to Office Director Contracts Procurement
review the organization Contracts Dept
Dept
Procurement Dept
Dept

portfolio and budget for 2 1 Inform ation

the coming fiscal year. Information
T echnology
Technology
Dept
Dept

They want the PMO to Plant

provide status for the Project Projects
Project
Management
current portfolio and to
Management 3 s 5 Steering Group
Working Group
prepare business cases
for future projects. They Project
Project
Project
History
History
Portfolio
plan to review the 4 Performance
Performanc
Data
e Data
Example s
Be nc
Be nch
h
Te mplate s Le sson MMarks
arks
current status at the Le ssons
s
Proce dure s Le
Learne
arned
executive off-site and Policie s d
Project
provide a revised Project
Repositor
capability requirements Repository
y
list (strategic goals &
objectives) along with a
budget.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 34
 Project Management Office –
Center of Excellence
How does a PMO work?
PMO Scenario #3: Project Management Office
The PMO VS BHAG. Organization
Project PLANT CEO
CEO
The MSG has decided Management
to add a very risky and Office Director Contracts Procurement
Contracts Dept Procurement Dept

difficult project to the Dept Dept

portfolio. This project 2 1 Inform ation

will require extra help Information
T echnology
Technology
Dept
Dept

from the PMO. Plant

Project Projects
Project
Because the MSG Management
Management 3 s 5 Steering Group
really want this to be Working Group
successful and they
Project
Project
DO NOT want to be Project
Portfolio
History
History
Performance
embarrassed they 4 Performanc
Data
e Data
Example s
Be nc
Be nch
h
Te mplate s Le sson MMarks
arks
want the PMO to Le ssons
s
Proce dure s Le
Learne
arned
become engaged on Project Policie s d

the project from the Project

Repositor
Repository
outset, don’t wait for y
the project manager to
pull for help.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 35
 Project Management Office –
Center of Excellence
How can I start a PMO?
To start a PMO requires that you make a conscious effort and deliberately plan to
focus on immediate return on investment and business necessities (RESULTS). The
key is to keep the implementation simple, focused on immediate value, and
structured with a plan. To jumpstart the PMO begin with a tactical focus and
consider immediate concerns and business needs.

Although the focus is short-term in the beginning, longer-term solutions should be

considered and preliminary steps taken to lay the groundwork on broader, more
complex issues. The long-term vision is to address permanent value that will result
in the organization attaining and holding a very competitive and healthy business
position.

To accomplish a successful PMO implementation, follow this four-phase approach:

Phase #1: Establish the foundation

Phase #2: Startup with Short-Term Initiatives
Phase #3: Rollout with Long-Term Solutions
Phase #4: Support and Improve
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 36
 Project Management Office –
Center of Excellence
How can I start a PMO?
Phase #1: Establish the foundation-
• Identify the MSG and get their commitment to sponsor the PMO
• Find a Champion
• Understand your Value Proposition
• Write the PMO Charter
• Determine the PMO funding source
• Identify available resources
• Embrace the Results Model
• Baseline current projects
• Identify short-term objectives
Phase #2: Start up with Short-term Initiatives-
• Launch and staff the PMO
• Initiate project mentoring
• Implement short-term initiatives:
• Project reviews
• Support New projects
• Support projects In need
• Deploy a pilot project support program
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 37
 Project Management Office –
Center of Excellence
How can I start a PMO?
Phase #3: Rollout with Long-Term Solutions
• Develop project management expertise
• Implement process improvement and streamlining
• Apply lessons learned
• Tailor project processes and methodology
• Identify tools and techniques
• Support the MSG with portfolio management
Phase #4: Support and Improve:
• Utilize project data and metrics to continuously improve
• Refine project management processes
• Expand the role of the PMO
• PMP training
• Business case methodologies
• Enterprise architecture
• Governance

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 38
 Project Management Office –
Center of Excellence
PMO in action – Can a PMO Reverse the Improvement Paradox – Maybe!

The PMO can Project Management Office

overcome the Organization
Project PLANT CEO

fundamental flaws Management

CEO

of typical Office Director Contracts

Contracts Dept
Dept
Procurement
Procurement Dept
Dept
Process
Improvements, IF: Inform ation
Information
T echnology
Technology
Dept
Dept

Plant
1. It’s driven by results Project Projects
Project
Management
first. Management s
Steering Group
Working Group
2. It seeks to understand Project
Project

what’s broken first,

Project
History
History
Performance
Performanc Portfolio
Be nc
Data
e Data Behnch
Example s
Marks
arks
then fix it. Te mplate s Le sson M
Le ssons
s
Proce dure s Le
Learne
arned

It’s dynamic and

Policie s d
3. Project
Project
Repositor
adaptive. Repository
y
4. It provides support
“pull” to projects in
need.
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 39
Project Management Office –
Center of Excellence

Questions?

40
 Project Management Office –
Center of Excellence

Back up Slides

41
 Project Management Office –
Center of Excellence
Results First: Concept behind the Results Model
• Results first – Change Second. challenges the position that an
organization must first be reformed and retrained before it can be
expected to produce improved results.
• The results-first proposition contends that it is not possible to change
an organization to achieve higher-order results unless strategic
business goals and objectives are driving the initiative.
• The results first approach contends that the demand for results drives
change.
• Increasing the pressure to produce results sets the stage for conflict
and confrontation, and exposes the painful nature of change.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 42
 Project Management Office –
Center of Excellence
Overcoming the Improvement Paradox:

The Results Model - The Framework:

• Provides a systems approach to the assessment of performance competency.
It answers the question ‘What’s broken and needs to be fixed’.
• Forecasts the efficacy of process improvement interventions and supports ‘what if’
scenarios that let management postulate what might happen if processes are changed or
people trained.
It answers the question ‘How should the problem be fixed’
• Provides feedback loop for recalibration and continuous improvement of people,
process and management.
It answers the question ‘Are we getting better.’

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 43
 Project Management Office –
Center of Excellence
Results Model: Performance Competency Scale

20

Incompetent
Competent
Effective

10

Incompetent

0
10 20
Efficient
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 44
 Project Management Office –
Center of Excellence
State of Project Management - the need for the PMO

A survey conducted by the Center for Business Practices (CBP), the

research arm of project management consultancy PM Solutions, entitled
"Project Management: The State of the Industry" reveals the latest project
management challenges and trends facing executives of Global 2000 companies.
Executives and project professionals report that their organization's biggest project management
challenges are:
• Developing a consistent approach to managing projects (23.9%),
• Allocating resources (19.7%),
• Managing too many projects or the wrong projects (16.9%),
• Developing and maintaining project manager competency,
• Managing economic pressures, and
• Dealing with limited visibility of project activities.
According to the survey, the three most commonly implemented project management improvement
initiatives are:
• Software tools (77.9%),
• Methodology development (69.1%), and
• Staff training (69.1%).
The companies that implemented project management improvement initiatives spent an average of
$712,000 on them annually.
Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 45
 Project Management Office –
Center of Excellence
Why are PMOs Increasing?
Second, Do we really have a choice? Something must be done; it’s the Law.
Information Technology Management Reform Act of 1996 – Clinger Cohen Act
Public Law 104-106-Feb.10, 1996: Subtitle C. SEC 5122. para (b)
The Process of an executive agency shall-

The Process of an executive agency shall -

6) Provide the means for senior management personnel of the executive
agency to obtain timely information regarding the progress; of an
investment in an information system, including a system of milestones for
measuring progress, on an independently verifiable basis, in terms of
cost, capability of the system to meet specified requirements, timeliness
and quality.

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 46
 Project Management Office –
Center of Excellence
How is the PMO organized?

Performance Improvement Inc. proprietary information. May not be released or reproduced without written permission. 47