Enterprise Project Management

Optimize Process and Project

Management through the PMO

Walter A. Viali, CSQA, PMP

UH – April 6, 2005
 Agenda
 What’s the Big Deal?
 Process and Project Management to the Top
 Where Do We Want to Be?
 How Do We Get There?
 Why the SEI CMM (and the CMMI)?
 What About Certification?
 Enter PMI and QAI
 An Enterprise Project Management Maturity Model
 Where’s the Bang for the Buck?
 How Can We Do Things Right and Fast?
 How Do We Manage This Whole Thing?
 Developing a PMO Implementation Plan
 PMO of the Future?
 Lessons Learned and Conclusion
What’s the Big Deal?
 From the Standish Group...

 17% of projects succeed

 31% of projects fail
 52% of projects are challenged
– Cost and/or schedule performance
 $78billion dollars total project waste (against
$250 billion in project spending)

The Standish Group

1994 Chaos Report
 From the Standish Group...
 34% of projects succeed (100% improvement over
1994)
 15% of projects fail (down from 31% in 1994)
 51% of projects are challenged
 $55 billion dollars total project waste (against $255
billion in project spending)
– $38 billion in lost dollars for US projects in 2002
– $17 billion in cost overruns

The Standish Group

2003 Chaos Report
 Project Failure

“The major cause of project failure is not the

specifics of what went wrong, but rather the
lack of procedures, methodology and
standards for managing the project.”

Source: InfoWeek, 1996

Success Criteria Points
• User Involvement 19
• Executive Management Support 16
• Clear Statement of Requirements 15
• Proper Planning 11
• Realistic Expectations 10
• Smaller Project Milestones 9
• Competent Staff 8
• Ownership 6
• Clear Vision & Objectives 3
• Hard-Working, Focused Staff 3
TOTAL 100

"We know why projects fail, we know how to prevent their failure
-- so why do they still fail?”
Martin Cobb
Treasury Board of Canada Secretariat
Ottawa, Canada
Process and Project Management
to the Top…..
 CIO Priorities
Top 10 Management Issues
(1999-2003)
1. Business/IT Fusion
2. Demonstrating Business Value
3. IT Skills (Recruit, Retain, Re-skill)
4. Y2K Clean-up/Contingencies
5. "Sourcing" Management
6. IT Governance
7. Process/Project Management
8. M&A IT Integration
9. Knowledge Management
10. IT Organization
Gartner Group (11/16/98)
Where Do We Want to Be?
 Where Do We Want to Be?
 Improved project management and process
management practices based on:
– A portfolio view of projects aligned with a strategic
business plan
– Defined processes for different types of projects
– A uniform project management process to support
the software processes
– Integrated business and quality controls
– Viable tools to support process, project
management and project portfolios
Managing Portfolios of Projects

Managing Projects
 Establishing Project Portfolios
BUSINESS BUSINESS BUSINESS
STRATEGY A STRATEGY B STRATEGY C

TOTAL COST IT PORTFOLIO B TOTAL BENEFITS

COST PROGRAM X BENEFITS COST PROGRAM Y BENEFITS

$ PROJECT 1 $ $ PROJECT 4 $

$ PROJECT 2 $ $ PROJECT 5 $

$ PROJECT 3 $ $ PROJECT 6 $
 Project Portfolio Priority Matrix
Project Name/Business Strategy: ____________________________________
Business Project Manager: _________________________________________
I.T. Project Manager: _____________________________________________
As Of Date: ___________________ Strategic Priority: _______________

Profitability Market Share Infrastructure Cost to Compete Mandated

Initiative creates Initiative increases
profitability to market share
Does not improve
organization Does not improve
service 0 Market Share
Less than $1M in first
year 1 Strong potential to
increase Market
Share somewhat
Greater than $2M in over next 2 years
first year
2 2
Strong potential to
increase Market
Less than $5M in Share somewhat
3 over first year
first year
New industry
New industry
4 product
product
Significant impact
Industry leader right away
5 Significantly
Market Owner
Initiative improves Initiative enables Initiative is required
organization infrastructure organization to compete
Does not improve Does not improve 0 Initiative is not 0
0
0 Infrastructure competition ability mandated
Reduces cost State mandated 1
Improves somewhat
somewhat of 1 1 within fiscal year
ability to compete
existing
1 infrastructure Federally mandated
Reduces cost Improves moderately within fiscal year
2
2
moderately of ability to compete
existing High risk of State
penalty if not
2 infrastructure
Improves implemented in
3
Reduces cost
significantly ability to 3 fiscal year
significantly of 3 compete High risk of Federal
existing
3 infrastructure Moderately
penalty if not 4
Provides 4
implemented in
reduces cost to fiscal year
competitive 4 compete
4 advantage Large Penalty to the
Business if not 5
Industry Leader 5 reduces cost to 5 implemented in fiscal
5 compete year.

__ x .4 = __ __ x .3 = __ ___ x .15 = __ ___ x .1 = __ ___ x .05 = __

 Project Portfolio Summary
Business/IT Steering Committee Status Report for: date

Sales & Marketing - All Project Portfolios

Portfolio Business Strategy Total Cost Expected Benefits Overall Portfolio Status Comments
A. Optimize the Sales Network $9999M $99,999M
B. Reduce Cost through the Sun Study $9999M $99,999M Decisions pending
C. Implement a Distributed Support Model $9999M $99,999M
D. Rationalize Acquired BUs $9999M $99,999M
E. Expand the Use of Web Based Solutions $9999M $99,999M Behind schedule
F. Implement the Regionalization of Western Operations $9999M $99,999M
G. Reduce the Number of Wolrdwide Plants $9999M $99,999M
Totals $99999M $999,999M

Overall Risk Summary: 1. Current strategies are to be reviewed at the next Steering Council Meeting.
2. Stability of current portfolios impacted by new, emerging business strategies.

Additional Comments: 1. Portfolio F. impacted by loss of FTEs in the Western Region.

 Project Portfolio Reporting
Business/IT Steering Committee Status Report for: date

Sales & Marketing Function: eMarketing Project Portfolio Account Codes: 99999

Business Strategy Supported by this Project Portfolio: Expand the use of web solutions.

Total cost of Project Portfolio: $ 195,200 Total planned benefits for this Project Portfolio: $ .5M

New Projects

Project Name Budgeted Amount Expenses to Date Status Issues this period Outlook next period
Link to Merchandise Website 5,000 405
Redesign Sales Consultant Pages 44,000 1,140 Behind schedule 1 FTE to be added

SUB-TOTAL 49,000 1,545

Run and Maintain

Project Name Budgeted Amount Expenses to Date Status Issues this period Outlook next period
Enhance Broadcast Messaging 45,100 7,643
Modify/Test Release 1.7 101,100 36,743 95% Contingency used up.

SUB-TOTAL 146,200 44,385

PORTFOLIO TOTALS 195,200 195,200

Risk Analysis Summary: 1. Business liaisons for Redesign Sls Consultant Pages have not been available to the project team.

Change Reque sts Volume/Summary: 1. No significant change requests have been submitted during this reporting period.

Additional Comments: 1. A strategy review session will be held with the eMarketing group to confirm current direction.

Pending Projects

Project Name Project Summary Cost Benefits FTEs Priority

Develop New Site for the Western Region Current site no longer maintainable $9,999 $99,999 3.5 1

Total $9,999 $99,999

 I.T. and Project Governance
I.T. Governance Operating CEO CIO
Departments

Project Senior Project Senior

Governance* User Sponsor IT

* = Level of Project
Governance staffing tied Project
Manager
to project visibility and
delegation of authority PMO

QA Project Team
Managing Portfolios of Projects

Managing Projects
 Process/Project Management
Business and Quality Controls

Business Controls Discipline-Specific Template

(Management) (Web Dev., CSOO, Support, etc.)
PM Process
- Resources
- Schedule
- Cost
Stage 1 Stage 2 Stage 3 Stage 4
Technical Technical Technical Technical
Tasks Tasks Tasks Tasks Lessons
Learned

Techniques
Quality Controls
(Technical)
- Product Quality
Tools
- Technical Standards
= Compulsory End-Stage Assessment
Meeting
Stage 1, 2, 3, 4… = Quality Review Meetings
(for example: Initiation, Development, (Scheduled as needed by Project Type,
Implementation, Closure) Activity Type, Deliverable Type
= Compulsory Quality Review Meeting
 I.T. and Project Governance
I.T. Governance Operating CEO CIO
Departments

Project Senior Project Senior

Governance* User Sponsor IT

* = Level of Project
Governance staffing tied Project
Manager
to project visibility and
delegation of authority PMO

QA Project Team
How Do We Get There?
 How Do We Get There?
 Assessment of the current organizational
software capability
 A roadmap to improved process and project
management practices based on the
assessment results
 An internal function in support of project
portfolio management and of the
improvement journey
Why Do We Need to Assess?
 Establisha baseline
 What are our strengths?
 What are our weaknesses?
 What do we need to fix first?
 Do we need a PMO?
 Is the PMO effective?
 Should we outsource?
Why Do We Need to Assess?
 Use hard data to show IT and Business
Management where current processes
stand
 Provide business case for the establishment
of a Project Office
 Need information to build a thorough
process improvement plan
 Keep those outsourcers away!
 Why the SEI CMM*
(and the CMMI)?

*Software Engineering Institute’s Capability Maturity Model

 Capability Maturity Model (SM)

Optimizing
- Continuous Improvement

Managed
- Focus on QA and QC Measures

Defined
- Process Mgmnt. Focus

Repeatable
- Project Mgmnt. Focus
Software
Engineering
Initial Institute
- Ad hoc, Informal
1991
- Hero Driven
SEI CMM Level 2 KPAs
 Requirements Management
 Software Project Planning
 Software Project Tracking
 Sub-contract Management
 Quality Assurance
 Configuration Management
SEI CMM Level 3 KPAs
 Organization Process Focus
 Organization Process Definition
 Training Program
 Integrated Software Management
 Software Product Engineering
 Inter-group Coordination
 Peer Reviews
SEI CMM Level 4 KPAs
 Quantitative Process Management
– Quality Assurance (process)

 Software Quality Management

– Quality Control (products)
SEI CMM Level 5 KPAs

 Defect Prevention
 Technology Change Management
 Process Change Management
CMMI Staged Representation
CMMI Continuous Representation
The Capability Im-Maturity Model
Level Characteristic Description
Failure to allow successful development process to succeed. All
problems are perceived to be technical problems. Managerial
0. Negligent Indifference and quality assurance activities are deemed to be overhead and
superfluous to the task of software development process.
Reliance on "silver bullets".
Counterproductive processes are imposed. Processes are rigidly
defined and adherence to the form is stressed. Ritualistic
-1. Obstructive Counter Productive
ceremonies abound. Collective management precludes
assigning responsibility. Status quo über alles.
Disregard for good software engineering institutionalized.
Complete separation and division between software
-2. Contemptuous Arrogance
development activities and software process improvement
activities. Complete lack of a training program.
Worried about looking good rather than being good. Conscious
-3. Undermining Sabotage discrediting of peer organizations software process
improvement efforts. Rewarding failure and poor performance.

Finkelstein, "A Software Process Immaturity Model"

What About Certification?
 SEI CMM Assessments
 Full Assessment
– two weeks or longer
– documentation intensive
– when organization is between CMM levels
 “Interim Profile” Assessment
– gets the job done quickly
– checklist based
– quick snapshot of a CMM Level 1 organization
– between full assessments
 Improvement Plans
 Based on the SEI CMM Assessment
– strengths, weaknesses, recommendations
 Aimed at improving Project Management
– process, techniques, tools
 Aimed at improving Process Management
– process, techniques, tools
 Not a part-time effort
– Project Management Office (PMO)
 Typical Recommendations from
SEI CMM Assessments for
a Level 1 Organization
 Develop a Process Improvement Plan, based on the
findings of the SEI CMM Assessment, aimed at
reaching Level 2 of the SEI CMM.
 Make the Process Improvement Plan a strategic
initiative.
 Create policies, as required by the SEI CMM, to
confirm support for the Process Improvement
initiative.
 Implement a global Project Management Office
(PMO) and establish a Software Process
Engineering Group (SEPG) within the PMO.
 Typical Recommendations from
SEI CMM Assessments for
a Level 1 Organization

 Task the SEPG with the rollout of a common

Project Management Process for the organization.
 Acquire Enterprise Project Management and
Enterprise Resource Management tools to support
Project Planning and Project Tracking and
Oversight activities.
 Staff a Quality Assurance function and a Software
Configuration Management function.
 Implement methods, techniques and tools to
support Software Quality Assurance and Software
Configuration Management.
 Typical Recommendations from
SEI CMM Assessments for
a Level 1 Organization
 Implement individual certification programs for Project
Managers and Quality Assurance staff.
 Implement policies and procedures for Subcontract
Management.
 Capture and support high-value processes for the
organization (such as the SAP Implementation
Process).
 Implement a Skills Assessment system to drive the
training and resource allocation functions.
 Typical Recommendations from
SEI CMM Assessments for
a Level 1 Organization
 Strive for certified Project Managers to lead all
projects.
 Document the new way of doing business,
explain it to the customers and obtain their
concurrence.
 Benchmark internally on a periodic basis and
benchmark best internal process externally.
Application Development Practices

"Software Capability Evaluations (based on

SEI's Capability Maturity Model) will be used
to qualify all IT contractors on U.S. Federal
Government projects by year end 2001 (0.8
Probability); however, widespread year 2000
damage will push regulated AD into the
private sector, starting with applications that
have public health and safety implications."

Gartner Group (11/16/98)

 So What?
 SEI CMM Level 1 Organizations will not be
able to survive for very much longer
 Heroes leave (more rapidly now)
 Outside Service Providers are racing up the
SEI CMM ladder
 Can’t do business with the Government if not
at SEI CMM Level 3
 The Sarbanes-Oxley Act
During the past two years, a series of accounting and
management scandals within major companies
undermined investor confidence in corporations and
others serving the capital markets. In response to
the crisis, the U.S. Congress passed legislation, the
Sarbanes-Oxley Act of 2002, that establishes many
new requirements, including:
1. Composition/Responsibilities of Audit Committees
2. Adoption of Code of Ethics by Sr. Management
3. Increased Financial Disclosures
4. Audit Partner Rotation
Enter PMI and QAI
Some Background Information
 PMI began in 1969 with 5 members and now has
more than 150,000
 Represented in over 125 countries
 PMP Certification program established in 1984
 Almost 100,000 PMPs as of recent count
 PMBOK Guide now an American National Standard
 PMI Certification Program Department is ISO 9000
approved
 The PMBOK Guide
 Core to the PMP Certification Process
 Current edition published in 2002
 Focuses on 5 Process Groups
 Process Groups govern 9 Knowledge
Areas
 Project Management a la PMI
 New 2004 version to be officially adopted
as of October 2005
PROJECT MANAGEMENT PROCESS GROUPS

Initiating Processes - Recognizing that a project or

phase should begin and committing to do so.
Planning Processes - Devising and maintaining a
workable scheme to accomplish the business need that
the project was undertaken to address.
Executing Processes - Coordinating people and other
resources to carry out the plan.
Controlling Processes - Ensuring that project objectives
are met by monitoring and measuring progress and taking
corrective action when necessary.
Closing Processes - Formalizing acceptance of the
project or phase and bringing it to an orderly end.
Links Among the Process Groups in a
Project Phase

Planning
Processes
Initiating
Processes

Controlling Executing
Processes Processes

Closing
Processes
Project Management Knowledge Areas
 Project Integration Management
 Project Scope Management
 Project Time Management
 Project Cost Management
 Project Quality Management
 Project Human Resource Management
 Project Communication Management
 Project Risk Management
 Project Procurement Management
 Another Assessment Needed
 Project Management and PMI….
– http://www.pmi.org
 Assess Project Managers’ Skills
– “it’s not your daddy’s PM anymore”
 Bring everyone to the same level
– huge resistance to change!
– love to hate accountability
 PMP Certification not an option
– Project Management is “almost” a profession
Another Assessment Needed
 Programs available to make it happen
– Extensive and a bit painful...
 Ditto for IT Managers…
– Pioneers are a thing of the past
– “Unconscious Incompetence”
– Love to reinvent all known wheels
 Ditto for Quality Assurance Specialists
– http://www.qaiusa.com/
 The Quality Assurance Institute
 Based in Orlando, Florida
 Promotes quality in software development and
support activities
 Provides quality related training courses
 Offers Certified Quality Analyst (CQA) and
Certified Software Testing Engineer (CSTE)
programs
 Certification programs available through the local
Society for Software Quality (SSQ)
 An Enterprise Project
Management Maturity Model
 OPM3

PMI’s answer to the plethora of Project

Management Maturity Models is OPM3
– Organizational Project Management Maturity Model
– Comprised of three general elements
 Knowledge – content of the standard
 Assessment – method for comparison with the

standard
 Improvement – setting the stage for

organizational changes
Organizational Project Management
Processes – the Domains
OPM3 Stages of Maturity
Where’s the Bang for the Buck?
 Observed SEI CMM Benefits
Maturity Calendar Person Defects Defects Total
Level Months Months Found Shipped Cost
1 29.8 593.5 1348 61 $ 5,440,000

2 18.5 143 328 12 $1,311,000

3 15.2 79.5 182 7 $728,000

4 12.5 42.8 97 5 $392,000

5 9.0 16 37 1 $146,000

Estimated impact for 200,000 LOC Software Project

(from Sematech publication ‘Communique”)
 Project Management Certification –
Benefits
• Consistent Project Management approach within the
organization and improved interface mechanisms with all
customers
• Certification requires continuing education in the Project
Management field, which leads to more effective Project
Managers over time
• Project Management Certification thoroughly supports the
findings and recommendations of most benchmarking
efforts
• Combination of Project and Process Management has the
potential of reducing project development costs by 30% a
year (Gartner Group)
 Project Management Certification –
Is It Worth It?
 By 2004, 70% of successful projects will have certified
project managers, while 90% of failed projects will not
(0.7 probability).
 By 2002, employees with Project Management Professional
(PMP) certification will receive salaries 20% higher than
those of project managers without PMP certification
(0.7 probability).
 By 2002, leading-edge project management outsource
vendors will have at least one out of five contracted staff
team members who are PMP-certified
(0.7 probability).
Gartner Group - November 16, 1999
How Can We Do Things Right...
And Fast?
 Where Do the Slick Tools Fit?

 Depends on the outcome of the assessment

of the organization
 Depends on the outcome of the assessment
of the individuals
 No tools until the knowledge is there
– “A fool with a tool is still a fool”
 No tools without the right support in place
– Training
– Process Management Function (PMO)
The Need For Process Management
And Project Management Tools
 Process Management too complex to implement
without effective tools
 Process Management and Project Management
tools must be integrated
 Tools must be able to produce reliable measures
for Process and Project Management
 Process Management tools are now industrial
strength
Process And Project Management
Define the Improve the
Process Process

Plan the Control the

Project Project

Do the
Activity
 The New Shape of Processes

From This...

To This... Work/Activity
Model
Deliverables/
Process Manager Metrics Products
Process Library

Roles Workflow
Model

Tools Techniques

Project Manager
Developer
 A Word about Tools
 Many to choose from!
 Start small and grow as the organization
matures
 Master the use of MS Project for scheduling
 Purchase Web-based team collaboration tools
to support CMM Level 2 processes
 Implement more mature tools to support CMM
Level 3 processes
A Word about Tools
A Word about Tools
 A Word about Tools

Project
Information
 A Word about Tools

Project
Information
 A Word about Tools

Project
Project Management
Information Template
 A Word about Tools

PMO
Implementation
Project Template
Information
 Work Breakdown Structure
Produces major end products for major end of stage
assessment
Stage(s) Well-defined chunk of activity which can be planned
in detail (2-3 months)

Development milestone where performance against

plan can be assessed
Step(s) Produces major deliverables (component parts of
stage end products)

Lowest level of work defined (<10 days)

Task(s) Provides basis for estimating effort, allocating
resources, and controlling progress
Produces minor deliverables
 Project Integration Management
Work Breakdown Structure
Stage
Step
Tasks

Scope
Quality
Procurement Project
Plan Communication Manage Plans
Human Resources
Time
Cost
Risk

Planning and Managing at the Task Level

 Enterprise Project Management
 Leading EPM Software Tools:
– Artemis (www.artemisintl.com)
– Changepoint (www.changepoint.com)
– Evolve (www.evolve.com)
– Kintana (www.kintana.com)
– Niku (www.niku.com)
– Pacific Edge (www.pacificedge.com)
– Planview (www.planview.com)
– Primavera (www.primavera.com)
– Prosight (www.prosight.com)
– Systemcorp (www.systemcorp.com)
How Do We Manage This Whole
Thing?
 What’s a Project Office?

A Project Office is a company’s source

of project management expertise and
serves as the guardian of project
management standards, a central point
for process and project management
tools, best practice reuse and process
library
 Evolution of the Project Office
 Early 30s: Empire State Building sets record for large
construction using “fast tracking” and centralized
project control office.
 Late 50s: Military “System Program Offices” established
to support major program/project managers. Polaris
Submarine…
 Early 60s: Advent of computerized project scheduling
techniques leads to Project Offices staffed with
programmers.
 Mid 70s: User-oriented/controlled project management
software leads to Project Offices staffed with systems
engineers to run mainframe PM software. Artemis
support...
 Evolution of the Project Office
 Early 80s: Development of user-friendly, sophisticated
scheduling software creates interest in project
management and leads to the demise of the Project
Office concept. “Let the technical managers do the
project management.” Harvard Project Manager...
 Early 80s thru early 90s: Proliferation of scheduling
software with the expectation that technical or
administrative team members would use it.
 Early to mid 90s: Recognition that projects need
professional project managers, supported by other
specialists. Project management training emphasized.
Awareness of the need for Project Office resurfaces.
 Evolution of the Project Office
 Mid 90s to the present: Emergence of Enterprise Project
Management, where the Project Office plays a crucial
role. Realization that enterprise-wide projects require
broader definition of the Project Office role and
leadership. The Project Management Institute
experiences exponential growth.
 The Future: Project Offices will grow in size, reflecting
increased organizational commitment to conducting
work through project management. Evolution of the
Project Office to equivalent functional department
status. Project Management Certification will no longer
be an option.
Why Do We Need a Project Office?

“Through 2004 and beyond, Information

Services organizations that establish
enterprise standards for project management,
including a Project Office with suitable
governance, will experience half the major
project cost overruns, delays and cancellations
of those that do not.”
Gartner Group, 1999
 What Does a Project Office Do?
 Ensures executive sponsorship, leadership, and
continued involvement
 Selects the “right” project office model
 Selects the “right” team structure, roles, and
responsibilities
 Supports training requirements and activities
 Establishes executive-level, top-down planning
techniques that align financial objectives to projects
from a project portfolio perspective
What does a Project Office really do?
 A Project Office establishes a set of stable,
predictable, repeatable, reusable, and reliable
management techniques and processes
– planning- standardize estimating techniques,
prioritization techniques, and project management
processes for small, medium, and large projects, etc.
aligned with PMI’s PMBOK
– controls - establish change management standards,
project measurements, and metrics, etc.
– communication - develop a library for processes,
templates, project files, etc. aligned with the SEI CMM
– tools - project planning, scheduling and management,
project data repository, JAD, etc.
 What is Joint Application
Development (JAD)?
 JAD is a structured meeting, conducted by a
neutral facilitator, designed to extract high-
quality information from the meeting
participants, using a compressed time frame
and a workshop environment to enhance the
process.
 JAD strongly complements, but does not
replace, analytical methodologies.
The Power of JAD in Lifecycle
Management
Strategic Project
Business Planning Scope Definition

Business
Process and Data
Process
Modeling
Reengineering

Strategic Structured
I.T. Planning Walkthroughs

I.T. Project Acceptance

Portfolios Testing
Lessons Learned
Benefits of JAD
 Project Office Models
 Repository Model - Model 1
– source of information on project methodology
and standards
 Repository-Coach Model - Model 2
– coordinates sharing of best practices across
business functions
 Repository-Coach-Manager Model - Model 3
– direct management of projects and project
managers
Project Office Overview Projects
Drill Down
Capability
Status

Executive Business Project Portfolio

Management Units Database
Policy
Vision Budget Proposals
Approvals/Adjustments/Status
Business Cases
Strategy
Business Trends Project Justification
Direction • Program Status
Standard • Program
Reporting Forecasting
PROJECT Requirements • Schedule
OFFICE Performance
• Project Funding
Training • Resource Analysis
and Allocation
• Projects
Disposition
• Issues/Resolutions
PPM Tools
Resource • Overtime Reporting
Pool • Cost Overrun
PPM Operations
• Business Function/
Guide
Program Evaluation
• Contract Analysis
• Program Exception
Contractor Process Analysis
Database Library • Budget Analysis
• Problem Analysis
 Project Office Mission
 Processes, Standards and Methodologies
 Process and Project Management Tools
Project Support
– Planning, Scheduling, Risk Management
 Consulting and Mentoring
 Facilitated Workshops
 Training
 Project Office Mission

 Software Quality Assurance

 Software Configuration Management
 Certified Project Managers
 Subcontract Management
 Benchmarking
 Strategic Planning
 Project Portfolio Management
 Staffing the Project Office
 PMO should report to the CIO and later to the CEO
 One to three percent of development staff
 The right skills needed
– Application development and support experience
– Certified Process and Project Management professionals
– Knowledge of Strategic Planning
– Trained JAD facilitators
– Knowledge of the SEI CMM and CMM assessments
– Knowledge of Process and Project Management tools
– QA and Configuration Management experience
 Staffing the Project Office
 Project Office Director
 Project Managers
 Project Mentors
 Project Controllers
 Project Planners
 Methodology Experts
 Estimators
 Librarian/Documentation
Specialist
 Administrative
Support Coordinator
 Communications
Coordinator
 Issue Resolution and
Change Control
Coordinator
 Risk Management
Coordinator
 PM Software Guru
 Project Office CSFs
 Unwavering Management Support
 Motivated, Enthusiastic and
Knowledgeable Project Office Staff
 Availability of External Skills, Knowledge,
Processes and Tools
 Effective Change Management Strategy
 Project Office Implementation Managed at
least at SEI CMM Level 2
Developing a PMO implementation plan
 An Implementation Approach
 Project Initiation and Planning
 Project Office Establishment
 Project Office Infrastructure
 Organization-Wide Standards Development
 Rollout and Training Preparation
 Breakthrough Stage
 Operations Stage
 Project Closure
 Project Initiation and Planning Stage
Major Deliverables

 Project Charter and Objectives

 Project Organization
 Project Scope
 Project Plan
 Project Standards and Control Procedures
 Business Case
 Project Budget
Project Office Establishment Stage
Major Deliverables

 Project Office Communication Plan

 Project Office Documentation Plan
 Project Office Facilities Plan
 Project Office Organization Structure
 Project Office Staffing Plan
 Project Office Budget
 Project Office Infrastructure Stage
Major Deliverables

 Project Office Guidebook:

– Software and Hardware Procedures
– Security and Budget Control Procedures
– Communication and Staffing Procedures
– Measurement and Exception Management
Procedures
– Operational Management Procedures
– Projects Meeting and Reporting Guidelines
– Projects Baselining Procedures
– Standard Projects Justification Criteria
– Projects Resource Allocation Procedures
– Project Office Interface Structure
 Organization-Wide Standards
Development Stage
Major Deliverables

 SEI CMM Level 2 Compliant Practices for:

– Requirements Management
– Project Planning
– Software Project Tracking and Oversight
– Software Subcontract Management
– Software Quality Assurance
– Software Configuration Management
 Project Management
Business and Quality Controls
Business Controls
Discipline-Specific Template
(Management)
(Web Dev., CSOO, Support, etc.) PM Process
- Resources
- Schedule
- Cost

Stage 1 Stage 2 Stage 3 Stage 4

Technical Technical Technical Technical
Tasks Tasks Tasks Tasks Post-Mortem
Review

Techniques
Quality Controls
(Technical)
- Product Quality Tools
- Technical Standards

= Compulsory End-Stage Assessment Meeting

Stage 1, 2, 3, 4… = Quality Review Meetings

(for example: Initiation, Development, (Scheduled as needed by Project Type,
Implementation, Closure) Activity Type, Deliverable Type
= Compulsory Quality Review Meeting
Rollout and Training Preparation Stage
Major Deliverables

 Rollout Approach:
– Rollout Scope Document
 Objectives
 Risks and Constraints

 List of Breakthrough Projects

 Rollout Increments
– Training Strategy
– Change Resistance Strategy
 Breakthrough Stage
Major Deliverables

 Breakthrough Projects Managed at SEI CMM

Level 2
 Project Office Support to Breakthrough
Projects
 Project Office Reports Based on Breakthrough
Projects Performance
 Breakthrough Projects Feedback and Process
Improvements
 Operations Stage
Major Deliverables

 Process for Projects Assessment and

Prioritization
– Ongoing Projects
– New Projects
 Project Office Reporting on Projects
– Cost Analysis
– Time Analysis
– Performance Analysis
 Assessment of Project Office Activities
 Project Closure
Major Deliverables

 Maintenance Guide for Project Office

Activities
 Action Plans for Remaining Open Items
 Project Performance Measures
 Lessons Learned
 Process Improvement Report
 Project Closure Meeting
 Celebration of Success!
 The PMO Lifecycle Loop
Strategic
Business
Planning

Strategic
Project
IT
Planning
Management
Business Office
Process
Reengineering

Project
Maturity
Portfolio
Models
Projects
Management
PMO of the Future?
 The Need for an Advanced PMO Model
(for Effective Project Portfolio Management)
Traditional PMO Next Generation PMO
Focus mostly on tactical issues Focus on strategic and cultural issues
Science of project management Art and craft of project management
Emphasis on monitoring and control Emphasis on collaboration
Tools as a “map” Tools as a “compass”
Internal process focused Focus on end products and customers

Traditional
“Heavy” methodsPMO
and practices “Agile” methods and practices
Based on rules Based on guiding principles
Defined, repeatable, optimized practices Adaptive and innovative practices
Focus on efficiency Focus on effectiveness and innovation
Process leadership Thought leadership
Heavy management and governance Balanced management, governance
and leadership
Lessons Learned
 Lessons Learned
Management Support
 PMO Manager needs to secure many allies in the organization
 PMO Manager must establish credibility as a professional
 Need Management awareness, knowledge and understanding of
issues
– Presentations on modern Project Management approaches
– Certification at all levels of the organization, not just Project
Managers
 PMO Manager should spend 90% of his/her time soothing irritations
and communicating!
 Gain customer support for the PMO
 Fastest growth in law suits tied to poorly constructed and delivered
software
 Strive for Project Portfolio Management
 Lessons Learned
Management Support
 The PMO must be an overhead function
– Cannot inflict “pain” and charge for it!
 Beware of reorganizations and loss of support
– If we don’t get rid of accounting, why do we get
rid of the PMO?
 Don’t threaten executives with pending disaster or
righteous statements
 Use the “Control Tower” analogy to explain the mission
of the PMO
 This is still PM 101 and a management responsibility
that must be addressed by senior management
 Lessons Learned
Manage Expectations

 Need overall strategic plan for implementing and growing

the PMO
– Can’t do it all in one iteration
 Need to realize that the PMO evolution is a journey with
manageable phases
– Each phase needs to deliver specific results
 Develop a clear Charter and Statement of Work for the
PMO
 Develop a sound Business Case and positive ROI
 Provide clear answers to the question of “What’s in it for
me?” (WIIFM) for all levels of the organization
 The PMO is the “enabler” but senior management has to
be the “driver”
 Lessons Learned
Standard Process
 Develop a common Project Management process
first
 Impossible to adequately report project information
without a common process
– Standard number of stages/phases
– Standard terminology for all stages/phases, major
Project Management deliverables
 Management “dashboards” not very effective if
different project management processes are used
by different project managers
 Do not reinvent any “wheels”
 Lessons Learned
PMO Skills

 Need the right skills immediately!

 It takes too long to grow internal resources,
if not already skilled
 PMO Manager should have experience in
establishing and managing PMOs
 PMO Manager can hire consultants, but
should manage them effectively
 A balanced mix of new hires, internal
resources and external consultants may be
acceptable
 Quick hits and credibility require
experienced resources
 Lessons Learned
Which Skills
 Strategic Planning
 Process Management (SEI
CMM)
 Project Management (PMBOK)
 JAD Facilitation
 Quality Assurance (QAI)
 Configuration Management
 Team Management
 Software Development
 Project/Process Management
Tools
 Certifications

People skills and the “right” personality are of fundamental

importance
 Lessons Learned
PMO Quick Hits

 Rescue visible projects that are in trouble

 Work with those Project Managers who really care
about improving the situation
 Use JAD Facilitation techniques
– to compress the development lifecycle
– to standardize process and deliverables across
projects
 Help Project Managers produce time-consuming
project management deliverables
 Lessons Learned
Consult Effectively
 Ineffective “consultants” will do more harm than
good
– Credibility is constantly at stake
– Resistance to change will be rampant
 Help Project Managers and project staff
– Project Planning, Risk Management, etc.
 Use JAD Facilitation techniques
– Project Planning, Scope Definition, Risk
Management, etc.
 JAD sessions promote the use of common
techniques and methods, through an impartial
facilitator
 Lessons Learned
Kiss Principle!!!
 Grow with a carefully planned and phased approach
 Start with simple processes and simple tools
– “A fool with a tool is still a fool!”
 Start with simple project reporting
 Provide hands-on support to project teams and “grant”
permission to fail!
 Gradually bring projects under the PMO umbrella
– cannot support all projects at once
 The more complex the approach, the harder to manage its
implementation and the harder to control cost
 Far-reaching solutions will overwhelm project
teams and PMO staff
 Lessons Learned
Adequate PMO Resources

 One to three percent of the organization’s project

staff
 No more than one PMO consultant for every five or
six projects
 Implement rotation process
– Bring the experienced “believers” into the PMO
– Send PMO staff to the trenches and avoid “ivory tower”
syndrome
 Cut back on PMO resources once processes have
become institutionalized and are the natural way of
doing business
 Lessons Learned
Organization Change Management

 Develop plan for managing culture change

 Work with those opinion leaders who are
respected in the organization
– Especially if they don’t like disciplined approaches
 Communicate, communicate, communicate!
– Newsletters, Web site, Presentations, etc.
 Provide feedback mechanisms
 Modify internal reward systems
 Find success stories from other companies
 Get vendor assistance to drive change
 Lessons Learned
PMO Project

 Manage PMO implementation project the same way future

projects will be managed
 Capture lessons learned at every corner!
 Use an approach based on the PMI Knowledge Areas or
on the CMM Level 2 Key Practices
 There are no “silver” bullets
 Beware of “lip service” as the PMO implementation evolves
 Assess the importance of Process and Project
Management in your industry and organization
 Realize when there is not enough support and it’s time to
pack it in and move on...
 Enterprise Project Management

Optimize Process and Project

Management through the PMO

Walter A. Viali, CSQA, PMP

viali@pmotogo.com 713-252-9722