Implementation and Development of A PMO

[Client Logo Removed]
[Client Program 1] & [Client Program 2]

PMO Implementation
& Development Strategy
Final v1.0
[Client Logo Removed]

Revision History
Version # Description Date Modified Author
0.10 Reviewed draft 26 March 2014 Terry Feltham
1.0 Final 3 April 2014 Terry Feltham
Contents
1 Introduction and Goals of this Document..........................................................................1
1.1 Exclusions...................................................................................................................... 2
2 The PMO Value Proposition................................................................................................2
2.1 Types of Value Generating Models of a PMO................................................................3
2.2 Practical Considerations within [Client Program 1] & [Client Program 2]........................4
3 [Client Program 1] & [Client Program 2] PMO Mission and Objectives...........................5
3.1 [Client Program 1] & [Client Program 2] PMO Mission...................................................5
3.2 [Client Program 1] & [Client Program 2] PMO Objectives..............................................5
4 Support Service Offering.....................................................................................................6
4.1 PMO Support Services Scope.......................................................................................6
4.2 Initial Support Services Offering.....................................................................................7
4.2.1 Selection Criteria................................................................................................7
4.2.2 Initial Support Services......................................................................................7
5 PMO Organization and Resource Roles & Responsibilities.............................................8
5.1 Roles and Responsibilities.............................................................................................9
5.1.1 [Client Program 1] & [Client Program 2] PMO Director.....................................10
5.1.2 Managers, Planning and Strategy and Operations and Controls......................11
6 [Client Program 1] & [Client Program 2] PMO Competency Framework.......................11
6.1 Competencies/Experience Required per Position........................................................11
6.2 [Client Program 1] & [Client Program 2] PMO Resource Competency Grid.................12
7 Staffing Strategy................................................................................................................ 12
8 Capability Schedule and Milestones................................................................................14
9 Learning and Development Strategy................................................................................14
[Client Program 1] & [Client Program 2] - PMO Development Strategy

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10 Project Management Maturity Framework.......................................................................16
10.1 Standards applicable to [Client Program 1] & [Client Program 2] PMO........................16
10.2 Target Maturity Levels.................................................................................................18
10.3 Strategy for Achieving a Target Maturity Level.............................................................19
11 PMO Performance Measurement......................................................................................20
11.1 Formulating a [Client Program 1] & [Client Program 2] PMO PM Framework..............21
12 PMO Tools and Processes................................................................................................23

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1 Introduction and Goals of this Document
The goal of this document is to provide a detailed strategy for the implementation and
development of a Program Management Office (PMO) for the [Client Program 1] & [Client
Program 2] [Head of Department]. It is designed to assist the PMO Director and senior
management to establish a PMO that incorporates a balanced compliment of skills and
experience, designed to support [Head of Department] projects in the achievement of their
objectives.
The target PMO capability will have the ability to function as a bridge between the project level
where change is planned and executed and the strategic level where change is conceived,
prioritized and sequenced. It will also operate within the governance sphere to report and to
make recommendations with respect to [Head of Department] project management capabilities,
capacity and project dependencies.
An effective PMO team that operates at a high skill level and with the required level of
experience takes time to implement. So too does effective integration of the PMO with [Client
Program 1] & [Client Program 2] projects such that the PMO is perceived as an enabler of
project management excellence and not simply a bureaucratic impediment to project progress.
This document recognizes that the building of a PMO is an evolutionary process. As a result a
time –phased approach is taken to the development of the requisite experience as well as the
development of core processes, procedures and standards, that will help establish the PMO as
a local Centre of Excellence of project management “know how”. Error: Reference source not
found illustrates the major subject matter covered in this document.
[Cl Prog 1] & [Cl Prog 2] PMO

Mission and Objectives
Service Offerings
Roles & Responsibilities

Maturity Models / Levels
Competency Framework Performance Measurement & Benchmarking
Learning & Development
Staffing
Figure 1: [Client Program 1] & [Client Program 2] PMO Implementation and Development Subject
Matter

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This document uses existing information and resources where possible. These include existing
draft [Client Department 1] project management standards and frameworks, [Finance Controller]
([Finance Controller]) policies and standards as well as best practices obtained from public and
private sector sources.
1.1 Exclusions
This document is primarily concerned with the selection of the PMO services and the
development of the PMO organizational capabilities. It does not discuss the detailed processes
and interactions with existing and future [Client Program 1] & [Client Program 2] projects.
This document is not intended to be a project management framework; it is designed to

complement the [Client Department 1] Project Management Directive and Framework
documents (currently in draft) by providing details at the level of the PMO.
2 The PMO Value Proposition

The [Client Program 1] & [Client Program 2] [Head of Department]’s mandate is to run Pensions
operations but also effect changes to operations as necessary to adhere to current policy,
implement efficiencies and make improvements to service. These changes are accomplished
through projects, which are by definition, temporary endeavours that are created to plan, design,
and execute the change. The purpose of a PMO, and therefore the value to the [Head of
Department], is to assist the projects to be more efficient and effective in executing their scope
on time, within budget and delivering on the expected outcomes.
To justify its creation and ongoing investment of resources, time and effort, the PMO must
exhibit quantifiable value to progressing its sponsoring organization’s mandate. Figure 2
illustrates some of the business value anticipated from the PMO.
Tactical Value Strategic Value
 More efficient and effective project  Improved executive insight to

management planning &execution Directorate capabilities
 Supports standard processes  Improved capacity planning
 More effective risk mitigations  Improved understanding of
 Greater predictability of outcomes project interrelationships
 Project structure and
competency requirements
Figure 2: [Client Program 1] & [Client Program 2] PMO Value

Proposition
From a business perspective, efficiencies at the project level could result in a number of
benefits, including allowing more projects to be completed in a given period of time without

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increasing the number of resources, lowering the risk that a project will exceed its budget or
schedule and increasing the probability that any given project will be delivered on time, on
budget and with its expected benefits. Standard PMO-published processes can effectively
provide for more streamlined project execution as well as quicker insight into project
performance issues. An example is standard processes for risk and issue management
schedule management and cost management.
Executive management can also expect strategic value from the PMO. A PMO placed at the
Program or Portfolio level is well positioned to understand the interrelationships and
dependencies that exist between [Head of Department] programs, both current and planned.
Executive leadership can leverage the knowledge the PMO gains of these dependencies by
using it to align the [Client Program 1] & [Client Program 2] ability to plan and execute to the
attainment of its strategic goals. From a practical standpoint, the involvement of the PMO at the
strategic level can result in improved investment planning, sequencing of projects, better
program segmentation and resource allocation and program execution strategies that have
lower risk and improved outcome predictability.
The strategic advantages of a PMO listed above are well-described in the Add [Government
Tool]. However, another facet of strategic value is the ability of the PMO to take an active role
in influencing a shift towards a project management-oriented culture. The strategic value of this
shift has been established by the ? Positioning the [Client Program 1] & [Client Program 2]
PMO as a Centre of Excellence will allow the PMO to demonstrate by example, the benefits of
applying project management principles to achieving project goals. resources at all levels of the
organization begin to understand and embrace project management thinking to enhance their
ability to perform their roles more effectively, then it can be said that a “culture” of project
management is taking root in the organization. By nurturing this shift, the PMO can be a strong
facilitator of an energetic, interactive project management community. The benefits of a thriving
culture of project management extend to further efficiencies in the planning and execution of
projects and an enthusiastic adoption of continuous improvement, mentoring and “give-back” to
further increase project management capabilities within the organization.
2.1 Types of Value Generating Models of a PMO

There are a number of different PMO service models that an organization can adopt. Each one
can generate value, depending on the scope of its authority and type of interactions it has with
the projects. The following are common PMO archetypes:
Mentoring/Coaching PMO – This model of PMO focuses on mentoring and coaching of PMO
resources and project resources. Staffed by a core of very experienced project managers, their
activities concentrate on increasing the project management competency levels of designated
individuals and teams.
Supportive PMO – provides support to projects in terms of on-request project management

expertise, project management process, procedures, templates, etc. This model may be good
for an organization that has projects that are loosely controlled and excessive enforcement is
either not practical or unnecessary.
Controlling PMO – More rigorous than the Supportive PMO, this model establishes the PMO
as the defining authority and centre of excellence on all aspects of project management

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methodology, governance and procedural rules. The PMO publishes all pertinent standards and
procedures for use by the projects, which are expected to adhere closely to them.
Directive PMO – The Directive PMO goes beyond the Controlling PMO by assuming the status
of lead project authority. At the start of each project, the PMO assigns an experienced project
manager out of a pool of project managers to lead that project. The assigned PM reports directly
to the PMO Manager.
Project Repository PMO – The Project Repository PMO develops and maintains a large
centralized repository of project management templates, procedures, checklists, best practices,
tools, etc. for the use of the PMO and project teams. The PMO Manager concentrates on
research and validation of new best practices and associated tools and standards. The PMO
also provides project documentation repository services for artifacts and deliverables produced
by the projects.
Real-world PMO functional models are generally not a pure adoption of one of the specific
archetype models listed above. Most organizations will develop a customized model by first
selecting a core model and then tailoring that model by integrating a mix of other functional
models determined by how the business believes the PMO could maximize its value given
practical considerations such as types and numbers of projects involved, strategic importance of
the project portfolio, requirement of the organization, and even resource availability. The
selected PMO functional model can also change over time and with gains in maturity. For
example, with gains in practical experience and broader resource base, a Supportive PMO may
confidently adopt policies that are closer to the Directive model.
In the case of the [Client Program 1] & [Client Program 2] PMO, the approach will be to initially
adopt a role that most closely resembles the Supportive PMO model. The current PMO does not
yet have the available resources, skills or experience to adopt either of the more authoritative
Controlling or Directive models.. The primary importance during the development period is
therefore a concentration on collaboration and fostering an environment of mutual support and
dependence between the PMO and projects.
The Supportive PMO as the core model is seen as a good fit to this approach. It will allow a
combination of project support through the supply of supplementary resources and will foster a
two-way dialogue that will ideally result in the build-up of an inventory of [Client Program 1] &
[Client Program 2] best practices to which the PMO and projects can mutually contribute.
2.2 Practical Considerations within [Client Program 1] &

[Client Program 2]
The root of a PMO’s ability to create value is the depth of the project management skills and
experience held by its resources, and also the credibility that the PMO builds up with the [Client
Program 1] & [Client Program 2] Project Managers and Branch executive. Ideally, the PMO
should be viewed by project staff as a force multiplier that compliments their own project skills.
The PMO should not be perceived by the projects as a bureaucratic imposition and an
impediment to their progress.. It is also important that senior management have the confidence
that the PMO can effectively attain its stated mission and objectives. A value-driven,
experienced and credible PMO is not easily achieved and must be built up over a period of time
with clear planning and execution.

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The current challenge is that the PMO has been assessed1 at a level that is below the threshold
where it could be expected that deep value could be generated. Time and investment will be
required for skills build-up through a combination of training, mentorship, knowledge transfer
and potentially through experienced hires.
3 [Client Program 1] & [Client Program 2] PMO

Mission and Objectives
The [Client Program 1] & [Client Program 2] PMO value proposition will be realized through
pursuing its mission and objectives. The [Client Program 1] & [Client Program 2] Charter stated
the following approved mission and objectives.
3.1 [Client Program 1] & [Client Program 2] PMO Mission

The [Client Program 1] & [Client Program 2] Program Management Office (PMO) is an entity
specifically for the purpose of supporting [Client Program 1] & [Client Program 2] projects. It will
provide the support, guidance and control that will assist all [Client Program 1] & [Client
Program 2] projects to reach a successful conclusion. Success is achieved when the
implemented system (people, process and technology) meets the projected benefits described
in the Project Plan on time and within budget. .
3.2 [Client Program 1] & [Client Program 2] PMO

Objectives
In support of the mission, the [Client Program 1] & [Client Program 2] PMO has the following
four primary objectives:
1. Serve as [Client Program 1] & [Client Program 2]’s authority on project

management practice
 Champion an [Client Department 1]-standard project management; Directive and
Framework by building out guidelines, procedures, and techniques; and
 Conduct research on project management best practices in cooperation with the [Client
Department 1] EPMO for eventual incorporation as new or improved [Client Program 1]
& [Client Program 2] project management standards.
2. Support the delivery of successful projects throughout all project phases

 Champion [Client Department 1] project management standards and assist in their
implementation for all [Client Program 1] & [Client Program 2] projects;
 Provide guidance to [Client Program 1] & [Client Program 2] PMs for the completion of
all [Client Department 1] and TB gating processes;
1
Accenture Report: [Client Program 1] & [Client Program 2] Project Office Maturity, PMO Assessment and Findings
dated March 2013.

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 Provide expert resources as needed to augment project capabilities in required areas;
and
 Work with the DG [Client Program 1] & [Client Program 2] to align [Client Program 1] &
[Client Program 2] and other Branch resources with project roles and resource
requirements.
3. Build Project Management professionalism amongst [Client Program 1] & [Client

Program 2] project staff
 Establish training curricula and competency targets for PMO and project staff; and
 Mentor, train and guide [Client Program 1] & [Client Program 2] project teams as they
learn and implement PM best practices in their areas of responsibility.
4. Provide tactical and strategic input to [Client Program 1] & [Client Program 2]
senior management
 Provide DG [Client Program 1] & [Client Program 2] with a variety of regular updates
ranging from monthly status of projects to comprehensive reports on performance of the
[Client Program 1] & [Client Program 2] project portfolio;
 Inform DG [Client Program 1] & [Client Program 2] regarding [Head of Department]
project management capabilities, capacity and development; and
 Provide strategic advice to DG [Client Program 1] & [Client Program 2] regarding project
portfolio investments, project dependencies, project structure and order of project
completion.
4 Support Service Offering

The [Client Program 1] & [Client Program 2] PMO will create value through the support services
that it either provides directly by way of resource augmentation to a project or provides in a
consulting or mentoring capacity. This section deals with the range of potential services that
could be offered and the prioritization of potential PMO services into near-term targets and
longer term targets.
4.1 PMO Support Services Scope

The range of potential individual PMO support services extends over 30 candidate services
contained in 8 categories. Services are primarily oriented around the PMBOK2 knowledge areas
but additional service offering items have been identified as necessary. These include items
related to strategy and domain-specific items such as IT System Development Life Cycle
(SDLC) and Change Management. Figure 3 lists the [Client Program 1] & [Client Program 2]
candidate services.
2
Project Management Institute, Project Management Body of Knowledge, Version 5.

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Figure 3: Candidate PMO Support Services
4.2 Initial Support Services Offering

4.2.1 Selection Criteria
It would not be realistic to attempt to develop the PMO with competencies in all services
simultaneously. Instead, [Client Program 1] & [Client Program 2] PMO will select a subset of
approximately 25% of the listed services for initial development. This will allow the
establishment of realistic, attainable goals associated with an achievable of PMO services,
which can be delivered in a defined period of time. The PMO will also simplify the interaction
model which will enhance credibility by not attempting too much in the near term.
The list of initial services offerings will be based on:

a. Needs of the projects, especially in the area of competencies where there is little
to no current capability;
b. Existing capabilities that should be consolidated under a common PMO
organization; and
c. The ability to generate a “quick win” capability, immediately useful for project
support, through the focused development of skills and expertise.
4.2.2 Initial Support Services

Based on the criteria in section 4.2.1, the following services have been selected for initial
implementation and development. The selection of these services will affect all aspects of the
initial PMO, including organization, position specifications, initial competency targets and

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timelines. It is expected that the initial period of concentration on these services will be
approximately one year. After this period it is expected that additional services will be identified
and integrated into the existing PMO. The initial set of services to be offered is listed below:
Leadership and Strategy

 Program Governance support
Planning and Control

 Integrated schedule development and management
 Dependency identification & management
Quality and Risk Management

 Risk identification and mitigation
Operations
 Vendor and procurement management
 Program documentation
Financial Management
 Cost-benefit analysis
 Budget development and tracking
Business Integration
 Change management
 Benefits realization
5 PMO Organization and Resource Roles &

Responsibilities
Progress towards a fully operational PMO that is capable of fulfilling all aspects of the stated
mission and objectives will be an evolutionary process achieved over a period of time. Initially,
the PMO will have limited size and scope of responsibility but will grow incrementally in terms of
the number of resources, its scope of roles and responsibilities, and the competencies that it
displays in these roles.
The initial target PMO organization is shown Figure 4. It shows a [Client Program 1] & [Client
Program 2] PMO Director who is responsible to the DG [Client Program 1] & [Client Program 2].
There is a lateral reporting line from the [Client Program 1] & [Client Program 2] project
managers indicating a peer relationship rather than the projects reporting to the PMO. The
project managers remain responsible to the project sponsor, although this may change as the
PMO achieves increased project management maturity levels.

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Figure 4: Initial PMO Organization
The PMO Director will initially have two direct reports who will divide responsibilities for the
initial service offerings between them. This diagram assumes that the two managers that report
to the PMO Director are both skilled project managers with experience either working in a PMO
setting, or performing the services envisaged by the PMO .
The diagram also depicts a PMO Advisor position that reports laterally into the PMO Director
position. This position is intended to hold a very skilled and experienced project manager who
will work closely with the PMO Director. The advisor is expected to be a “jack of all trades” who
will be able to to provide expert advice across all intended service offerings. The advisor will
mentor staff as necessary and also provide experienced-based advice to the PMO Director
regarding the implementation and ongoing development of the PMO.
As the scope of PMO service offerings increases to the full extent of those shown in Figure 4,
the [Head of Department] may elect to expand the PMO both laterally, in terms of additional
managers and vertically to accommodate additional resources.
5.1 Roles and Responsibilities

This section describes the roles and responsibilities of the positions that are part of the initial
PMO organization shown in Figure 4.

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5.1.1 [Client Program 1] & [Client Program 2] PMO Director
As the leader of the PMO, the PMO Director is ultimately responsible for the achievement of the
mission and objectives of the PMO. This requires a wide range of responsibilities including (but
not limited to):
PMO Development
 Develop and maintain PMO mission and objectives;
 Develop and maintain the PMO Implementation and Development plan;
 Based on EPMO-published Project Management standards, direct research and
investigation into best practices associated with PMO support service offerings. Best
practices can include project management processes, project management techniques
or enhanced project management techniques; and
 Develop and maintain training and mentoring program to advance PM competency
levels within the PMO.
Strategy
 Engage DG [Client Program 1] & [Client Program 2] to advise on the [Client Program 1]
& [Client Program 2] program structure, including program content, project relationships
and dependencies, project sequencing and project execution strategies;
 Advise DG [Client Program 1] & [Client Program 2] on project management capacity and
capabilities;
 Work to engender a project management “culture” within [Client Program 1] & [Client
Program 2] [Head of Department]; and
 Work with other [Client Department 1] project management organizations to create
“communities of practice”.
Governance
 Work with projects to ensure the compliance with [Client Department 1] governance
policy;
 In association with other Branch and [Client Department 1] PMO’s, implement and
support the [Client Department 1] Project Management Directive and Project
Management Framework at the PMO and project level;
 Develop project and PMO Key Performance Indicators; and
 Address the gathering of performance metrics.
Resource Management
 Develop a PMO staffing model together with required competencies;
 Recruit PMO resource candidates and prepare staffing actions;
 Address resource administration responsibilities consistent with EDSC and Federal
Public service policy;
 Work with project managers to determine project resource augmentation requirements;
and
 Provide PMO resources as necessary to augment project structure.
Support [Client Program 1] & [Client Program 2] Projects

 In the context of the [Client Department 1] Project Management Framework and [Client
Program 1] & [Client Program 2] support service offerings, prepare and publish a
portfolio of best practices and make them available to projects;

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 Work with projects on a consulting basis to implement PMO-published best practices,
across all [Client Program 1] & [Client Program 2] projects;
 Provide mentoring to project resources as necessary;
 Help ensure project compliance to published standards;
 Challenge inefficient practices;
 Work with the projects to ensure consistent and accurate reporting;
 Work with the projects to continuously improve project management practices; and
 Work with the projects to ensure timely and accurate escalation of appropriate items.
The PMO Director has the option of delegating individual responsibilities but will remain
accountable for PMO performance and the achievement of its objectives.
5.1.2 Managers, Planning and Strategy and Operations and Controls

The two PMO managers have common general duties with respect to the implementation,
development and operation of the PMO. The manager’s duties differ only with respect to the
particular service offerings for which they are assigned responsibility.
The manager’s duties will consist of the following:

 Assist the PMO Director in executing his/her responsibilities at the discretion of the PMO
Director;
 Execute delegated responsibilities and tasks at the discretion of the PMO Director
 Manage the provision of their respective service offerings through consulting and/or
secondment to the projects;
 Mentor their staff as necessary;
 Monitor the performance of seconded personnel; and
 Research, develop and recommend to the PMO Director, project management best
practices and standards with respect to their assigned service offerings.
6 [Client Program 1] & [Client Program 2] PMO

Competency Framework
The [Client Program 1] & [Client Program 2] Competency Framework is a tool to assist the PMO
Director to identify the various competencies required for the PMO and then to plan and track
their development. To develop a PMO with the required competencies, it is necessary to know
what competencies are required for each role and the extent of proficiency that the incumbent
should demonstrate for each required competency. The Framework will help the PMO Director
to assess the current competencies of existing team members and identify areas that need
development and to develop training, mentoring or on-the-job assignments to increase
competence levels as necessary. The Competency Framework will also assist the PMO Director
to align organizational positions with required roles and competencies.
6.1 Competencies/Experience Required per Position

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Competencies are expressed on a scale for “Awareness” to “Innovator” per the scale in Figure
5, below. The attached spreadsheet contains the competency framework that this applicable to
the initial competency targets of the [Client Program 1] & [Client Program 2] PMO.
Deep knowledge that can be innovatively applied and has been demonstrated within
5. Innovator complex projects and programs. Recognized expert/specialist in the competency
including generation of ideas, methods, tools and leading others in best practice use.
Considerable knowledge and experience in application and tailoring of the competency

4. Expert to meet complicated project needs. Managing others utilizing this competency in the
project domain.
Applied knowledge and experience of the competency concepts tools and techniques,
3. Practitioner adopting those most appropriate for the individual project environment
2. Working Has the knowledge and experience required to execute the competency indicator in a
limited and structured manner
Knowledge
Basic knowledge of the skills involved and how they are used in a project environment
Awareness
Figure 5: Competency Scale
6.2 [Client Program 1] & [Client Program 2] PMO Resource

Competency Grid
The [Client Program 1] & [Client Program 2] PMO Competency Grid is detailed in the attached
Microsoft Excel worksheet. The Grid contains competency descriptions associated with the
support service offering roles described in Section 4.2 and assigns target initial competency
levels for each competency based on assigned role. It is designed to be complimentary to the
[Client Department 2] Competency Model, which does not cover the full range of expected
[Client Program 1] & [Client Program 2] roles.
The Grid is the PMO Director’s primary tool for the evaluation of current PMO resource
competencies and for the planning and tracking of competency development activities. Target
competencies can be adjusted as necessary as initial targets are met and more challenging
targets are established. Competencies are currently assigned at the “Competency” level.
However, they can also be assigned at the more detailed “Competency Indicator” level. This can
be especially useful during initial resource competency evaluations to provide a more granular
indication of training and development needs for that individual. The Grid can also be expanded
vertically to include additional competency descriptors and expanded laterally to include
additional support service offerings as needed.

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7 Staffing Strategy
The PMO should be resourced with a blend of skilled program and project management
professionals, including specialist expertise required for any identified requirements that may be
unique to [Client Program 1] & [Client Program 2]. Care too should be paid to ensuring that
there is a suitable mix of senior and junior resources such that a reasonable succession plan
can be implemented for the PMO. The [Client Program 1] & [Client Program 2] PMO staffing
model has many possible solutions. The following staffing principles are presented as a
guideline to arriving at an efficient solution for the PMO.
1. Positions/roles can be recombined. While the organization in Figure 4 depicts the

recommended initial organization, PMO functions can be organized in a number of different
ways and roles can be amalgamated to optimize the number of resources required. For
example, it may be possible to combine the roles of Project Plan and Risk and Issue into a
single position. In making position/role decisions the PMO Director will need to consider a
number of factors, including the individual skills and experience of the available resources,
relative demand and workloads for roles under consideration and to some extent, the personal
goals of the potential incumbent.
2. Generalists provide flexibility. Above all, the demands of the Program will greatly
influence the exact structure and capabilities required of the PMO and this may be difficult to
gauge in the initial stages of PMO implementation. For this reason, it would be advantageous to
the PMO to concentrate initially on the acquisition of project management generalists.
Generalists will normally be career project managers or project management office resources
who have filled multiple project management or PMO roles as they have achieved progressive
experience and seniority in the project management profession. Ideally they will have formal
training and one or more project management-related certifications. These resources are ideal
when staffing a PMO because they can be productive in virtually any capacity and can take on
multiple roles simultaneously. In addition, generalists provide the PMO Director with flexibility
because they can be easily shifted from one role to another to fulfill short or long term shifts of
demand for certain skills.
3. Competence in a role is built through specialization. The first of the PMO objectives
relates to establishing the PMO as a [Client Program 1] & [Client Program 2] authority on project
management. The advantage of staffing specialists is that they provide immediate and deep
capability in a given service offering. For example, expertise in risk management is a central
requirement for the PMO that can be provided by a risk management specialist. This resource
can be used to provide key services to the projects but equally importantly, the expert’s
knowledge can be used to broaden the competency base of the PMO as a whole through
mentorship, training and contributions to the PMO knowledge repository. Specializing is also a
way to develop core expertise within the PMO using government employees. Provided with the
opportunity to specialize in a specific competence through training, mentorship and relevant
assignments, resources will be established as an authoritative figures within that domain.
4. Focused use of contractors. The availability of experienced government resources with

generalist skills or deep specialist skills may be limited. To effectively fulfill the initial service
offerings within a reasonable time period may require the engagement of contractors.
Contractors can be selected to have any required combination of skills and experience but have
the drawback of being temporary. Contractors can be perceived as being incompatible with the

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desired perception of the PMO as a permanent and continuously improving source of program
and project management expertise. Contractors should therefore be staffed with the dual roles
of performance and knowledge transfer in mind. For each PMO role that is performed by the
contractor and there is a gap in available government employee expertise, the Director should
staff a “shadow” position occupied by a PMO government employee. Over a period of time, the
incumbent in the “shadow” position will be expected to acquire the Competency Framework
target competency for that role.
5. Capacity to match workload and development needs. The recommended PMO model
involves working in a consultative capacity with the projects and by directly supplementing the
projects as required with skilled resources. The PMO Director will need to forecast total demand
on PMO resources to understand what roles will require duplication and to what extent. Other
factors in deciding role duplication may be redundancy needed for critical roles and absences
due to extended training.
8 Capability Schedule and Milestones

Figure 6 provides the time line for key [Client Program 1] & [Client Program 2] Implementation
and Development milestones.
Figure 6: Implementation and Development Milestones

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9 Learning and Development Strategy
The goal of learning and development (L&D) is to develop a competent team that is capable of
efficiently fulfilling the PMO’s stated mission and objectives. To accomplish this goal, PMO
resources will ultimately need to demonstrate various degrees of capability, from Awareness to
Innovator, across multiple project management competency domains.
The fundamental purpose of an L&D strategy is to close the gap between an existing set of
competencies exhibited by a team and its resources and a target, future state of competencies.
The following steps outline the approach to developing a responsive L&D Plan for the [Client
Program 1] & [Client Program 2] PMO.
Step 1:
The first step is to confirm the competencies required by the [Client Program 1] & [Client
Program 2] PMO to complete its mandate. The Competency Framework describes many of the
competencies but the PMO Director may wish to dig deeper to identify sub-competencies where
the area is broad and [Client Program 1] and [Client Program 2] needs may be more precise.
For example, consider Cost Management service offering. One of its competencies is “Develop
project budget”. A deeper analysis of required sub-competencies may reveal a need for specific
skills in MS Excel, including developing formulae, pivot tables and developing graphs. Other
competencies may include an understanding of estimation techniques such as parametric
estimating analogous estimating and reasonability analysis. Each of these sub-competencies
would be combined into a full Competency Specification for each given service offering.
Step 2:
The next step is to confirm the level, or degree of expertise required for the described
competency. The Competency Framework has target capability levels (Awareness to Innovator)
levels assigned to competencies in accordance with initial service offering and capability
targets. These levels should be reviewed with the additional competency detail developed in
step 1.
Step 3:
Step three is to complete a skills and experience assessment of the existing workforce in
relation to the required detailed competencies that have been developed in step 2. This will be
the “as-is” state that will provide a quantified state of the gap between present and target
competency states. Based on this analysis the Director may wish to fine-tune the distribution of
roles and responsibilities within the organization to take advantage of existing strengths where
they have become apparent.
Step 4:
Step four to link the detailed competency gaps with the types of development best suited to
close the gaps. Learning and development can take place through multiple approaches,
including formal classroom learning, self-paced learning curricula, and individual study. L&D can
also take place take place on the job through formal and informal mentoring, and opportunities
such as research assignments and team activities. L&D activities can range from short term and
tactical, such as with learning a particular MS Office skill or long term and strategic as with
obtaining a Project Management Professional designation. This step should match specific gaps
with reasonable and appropriate means of achieving the required skills. For formal and self-
study training, matching would include identifying specific institutions and programs/courses.

15
For mentoring development, the identification of specific competencies should be identified with
the ability to set up a formal mentor/mentee relationship.
Step 5:
To be effective, the L&D plan should include sub-plans that are individualized for each team
member. Plans should show an integrated mix of various types of training, mentoring and on-
the-job development, depending on the competency gap(s) that need to be closed. The
individual plans should be clear as to the specific to the gaps it is closing. The plans should and
have measurable outcomes for each individual and be time-bound to achieve desired results
that are linked to set milestones. The plans should be developed in cooperation with the
resource and there should be agreement between the Director and resource regarding all
aspects of the plan.
Step 6:
Step 6 is to set up ongoing verification that the L&D plans are being executed according to
schedule and that the desired competency results are being achieved.
10 Project Management Maturity Framework

In contrast to the PMO Competency Framework that concentrates on the project management-
oriented competencies an individual, a project management maturity framework (PMMF).
concentrates on the project management capabilities of an organizational entity. PMMF
assessments look for evidence of formality in project management processes, the presence of
organizational structures that support project management and the presence of formal
standards and ways of working. PMMF’s are used by organizations to estimate their own
capabilities, determine strengths and weaknesses in their current practices and then plot
roadmaps for improvement.
10.1 Standards applicable to [Client Program 1] & [Client

Program 2] PMO
The term “maturity model” is a generic name for a wide range of proprietary, open source and
publicly-funded approaches to measure an organization’s project management capabilities.
These models include (among others):
 [Finance Controller] [Government Tool] ;

 Software Engineering Institute Capability Maturity Model Integration (SEI CMMI);
 Kerzner Project Management Maturity Model (PMMM);
 Project Management Institute Organizational Project Management Maturity Model
(OPM3);
 Association for Project Management Body of Knowledge Review (APM BoK Review);
and
 APMG Portfolio, Programme, and Project Management Maturity Model (P3M3)

16
Of these, the most important to the [Client Program 1] & [Client Program 2] PMO and to [Client
Department 1] is the [Government Tool]. This model is mandated by [Finance Controller] for use
by [Government] Departments to self-evaluate their project management capability. Combined
with Project Complexity and Risk Analysis evaluations, results of [Government Tool] evaluations
determine the degree of oversight a Department will be subjected to by [Finance Controller] in
the preparation and execution of a given project.
The [Government Tool] is the only official model applicable to [Client Department 1] and the
[Client Program 1] & [Client Program 2] PMO. However, the [Government Tool] is designed to
provide a succinct means of capability measurement at the Departmental level and has
limitations when applied at the PMO level. This is because several [Government Tool] criteria
can appear coarse-grained due to its measures having been developed to provide a
Departmental versus local perspective. Also, [Government Tool] criteria do not represent a
continuum of increasing capability but instead, state a single capability and then applies tests to
evaluate how widespread this capability is across the Department. Other PMMFs exist that
focus more on the finer-grained best practices and processes applicable at the PMO and project
levels. They can also provide better and more graduated descriptions of what defines evidence
of demonstration of a higher level maturity versus a lower-level maturity. Alternative PMMFs can
therefore be useful to evaluate specific strengths and weaknesses of the PMO and for planning
roadmaps for improvement.
As stated, many alternative maturity models exist but two of most popular are SEI CMMI and
P3M3. These models and their derivatives are responsible for the familiar five-level maturity
scale often used by firms to conduct independent evaluations. The SEI CMMI five-level scale is
reproduced in Figure 7.
Figure 7: SEI CMMI Maturity Levels
While each PMMF has slightly different names for the maturity levels, they share many of the
same characteristics. Key characteristics applicable to most of the 5-level PMMF are noted in
Table 1, below:

17
Level 1
Processes, if any, are largely undocumented and unpredictable. There are no consistent guidelines or supporting
documentation. Any standards are ad-hoc and not controlled. No consistent use of tools.
Level 2
Locally evolved, acknowledged approach, templates, ad-hoc training, islands of expertise, initiatives delivered in
isolation, minimal evidence of continual improvement, simple activity based plans, focus may be on startup and initial
documentation, individual effort predominates, weak inter working
Level 3
Organizational wide consistency, process ownership, standards in place (e.g. roles and responsibilities), processes
defined with inputs and outputs, central control group, consistent use of tools, guidelines on how to do it, system
framework, governance clearly defined, capable staff, configuration system, evidence of Subject Matter Experts, good
communications and collaboration, strategic planning links, perceptive approach to management, flexing
Level 4
Integration with Corporate governance and functions, accurate information, statistical analysis, competent & qualified
staff, assurance in place, business capacity management, exec board level ownership, mentors, process
management, strategic planning alignment, approaches reviewed, consistent behavior, quantitative approach to
management, collaboration, adapting
Level 5
Start, end, route, process optimizing, business process ownership, integrated with strategic direction, lessons learned
being applied, continual improvement, common good for the organization, seamless and automatic, sustained, value
based behavior, evidence based management, innovation
Table 1: General Characteristics of PMMF Maturity Levels
Typical of all PMMFs is a series of separate categories in which maturity is measured. Most
PMMF adopt the same general approach. For example, [Government Tool] and OPM3 use the
nine PMBOK Knowledge Areas, while P3M3 uses the 7 Process Perspectives seen in the
PRINCE2® project management methodology. Of the popular PMMFs, no set of categories is
intrinsically superior to the other. The quality of the PMMF lies primarily in coverage, detail and
applicability of its detailed evaluation criteria contained in its associated assessment tool. A
good example of a detailed tool is “Project Management Process Improvement” by Robert K.
Wysocki. The author presents a CMMI-based tool that contains over 800 assessment criteria
across the nine PMBOK Knowledge Areas. Table 2 compares the evaluation categories of the
[Government Tool] against two other popular models.
[Government Tool] PMI OPM3 APMG P3M3

 Investment Portfolio  Integration Management  Management Control
Management and Investment  Scope Management  Benefits Management
Program Management  Time Management  Financial Management
 Organizational Support  Cost Management  Stakeholder Engagement
Structures  Quality Management  Risk Management
 Project Management  Human Resource Management  Organizational Governance
Standards  Risk Management Resource Management
 Integration Management  Communication Management
 Scope Management  Procurement Management
 Time Management
 Cost Management
 Quality Management
 Human Resource
Management
 Risk Management
 Communication Management
 Procurement Management
Table 2: Example PMMF Evaluation Categories

18
10.2 Target Maturity Levels
Organizations do not need to target the highest maturity to be effective. Rather, they should
target the minimum level at which benefits and desired project and program performance
objectives are achieved, when balanced against the cost to achieve the objectives. A general
industry consensus is that Level 3 maturity is a reasonable initial target for most organizations
involved in medium to complex projects. Level 3 implies a reasonable degree of process rigour
applied to all projects, resulting in outputs that are predictable and repeatable. This is also a
level in which, if applied to all Branches across [Client Department 1], would result in a
Departmental maturity level of 3 or over.
It is anticipated that the [Client Program 1] & [Client Program 2] PMO should target a Level 3
maturity across most project management categories. This is consistent with project
management skills competency targets established in Section 6 – Competency Framework, as
well as being consistent with the ability to provide a solid contribution to the Departmental
[Government Tool] rating.
Note that an organization can exhibit different maturity levels for different evaluation categories.
This is a characteristic that should be expected in PMOs at all stages of development.
10.3 Strategy for Achieving a Target Maturity Level

Prior to discussing the strategy for achieving the target maturity level, it is worthwhile reiterating
the differences between a Competency Framework and a PMMF. The Competency Framework
concentrates on the individual resource as a point-source of skills and experience that is
needed to provide a specific PMO service. PMMF’s on the other hand concerned with process,
interaction and performance at an organizational level. P3M3, for example, only discusses
individual skills in the context of the lowest maturity level. From this, it is evident that the
Competency Framework and PMMFs are distinct but complimentary. To achieve higher PMMF
maturity levels, it is first necessary to have a foundation of individual skills, which can then be
combined to provide synergistic effects at the organizational level.
Because of the need for individual competence to serve a foundation for increased project
management maturity levels, it should be expected that target maturity levels will lag behind the
achievement of target individual competency levels. This should be considered in the overall
PMO development schedule and key performance indicators.
To set a path for the achievement of the desired project management maturity level, the
following steps are recommended:
Step 1:
The first step is to identify one of the PMMF’s and set it as the standard for measurement. This
will ensure that [Client Program 1] & [Client Program 2] projects, the [Client Program 1] & [Client
Program 2] PMO and executive management all refer to the same descriptions of project
management maturity levels and evaluation criteria.. By virtue of their graduated and more
detailed maturity criteria, selections such as P3M3 and OPM3 would represent a good choice as
a goal-setting and an ongoing measurement tool that is specific to the PMO.
Step 2:

19
Identify the PMMF maturity categories that correspond to the initial service offerings. For
example, one of the initial recommended [Client Program 1] & [Client Program 2] PMO service
offerings is “risk identification and mitigation”. If we assume P3M3 as the PMMF of choice, we
see that this service offering maps directly to the P3M3 “Risk Management” Process
Perspective. Other [Client Program 1] & [Client Program 2] service offerings may not map
directly to a single Process Perspective but may map to a combination of two or more. For
example, we see that the “change management” service offering is covered through portions of
the P3M3 Management Control and Organizational Governance Process Perspectives.
Step 3 (optional):
Using the mapping, and the evaluation criteria provided in the PMMF, determine the PMO’s “as-
is” maturity level. This is optional because there is evidence that the [Client Program 1] & [Client
Program 2] PMO currently occupies an area between Level 1 and Level 2 in all evaluation
categories.
Step 4:
Determine target [Client Program 1] & [Client Program 2] PMO maturity levels for each category
mapped in Step 2. Use the descriptions available in the PMMF tool to determine what maturity
level is reasonable and attainable. Using the Risk Management example, P3M3 contains
various descriptors of what would characterize Risk Management at each of the five maturity
levels. Two (of over 22) of the descriptors of Risk Management - Level 3 are:
 Regular reviews, addressing broader opportunities for improvement as well as

compliance
 Risk management interventions embedded within project life cycle
A conservative and recommended approach to this Step would be to work incrementally by

selecting the next level up from the “as-is” state for each mapped maturity category.
Step 5:
For each target capability identified in Step 4, develop an Action Plan to formally integrate the
capability into [Client Program 1] & [Client Program 2] PMO practice. In the example of the first
of the two example descriptors, “regular reviews”, in Step 4, a number of questions must be
addressed to create the Action Plan. For example:
1. What constitutes a review of sufficient depth?

2. How should the projects be engaged?
3. At what seniority level should a review be conducted?
4. What skills and knowledge are required to conduct the review?
5. What are the review criteria? Who should develop them?
6. What minimum outcomes should be expected?
7. How should the review be documented?
Step 6:
Invoke each Action Plan and follow up on a regular basis to verify progress and effectiveness
and adjust as required.

20
11 PMO Performance Measurement
In conjunction with [Client Program 1] & [Client Program 2] PMO implementation and
development, it is recommended that the Director develop and implement an associated
performance measurement capability. There are several benefits to incorporating performance
measurement, including the ability to:
 Measure progress towards achievement of PMO mission and objectives

 Understand where adjustments should be made to improve effectiveness and efficiency
 Provide feedback to staff to inform and motivate
 Ensure factual basis for operational decisions
 Determine if improvements have actually occurred
 Make clear reports to executive management
 Increase Departmental [Government Tool] score (The organizational presence of a
performance measurement framework is an [Government Tool] rating criteria).
11.1 Formulating a [Client Program 1] & [Client Program 2]

PMO PM Framework
There are several popular performance management techniques used in government and
industry. The Key Performance Indicator (KPI) is popular and effective. The technique provides
a straightforward and relatively simple approach to effectively measuring performance and the
potential to achieving each of the benefits listed above. Figure 8 shows the basic process
associated with KPI performance management.
Key Specific Measured

Business Analysis and
Performance Performance Performance
Objective Action
Indicators Targets Results
Feedback
Figure 8: KPI Technique Basic Process
The KPI technique begins with asking the question: “what are the specific measures that will
allow me to determine whether we are achieving our objectives?” It is important that each KPI is
both relevant to the Objective and also must be measurable
Other qualities of good KPI’s:

 They are verifiable in terms of data that can be collected
 They allow measurement of accomplishments, not just work that is performed
 They are defined in terms of the owner, unit of measure, collection frequency

21
Specific performance targets are the next step. These need to be attainable in the sense that
they can be achieved with available resources and support. They also need to be time-bound so
that achievement of the performance target is set with an expectation of when success is to be
expected and when it would be appropriate to conduct an interim review of the KPI.
Measuring the performance results will provide verification of the degree to which the KPI is
being met and will be the source of data for clear and unambiguous management reports. A set
of measured results will also allow management to look further into the KPI. If the target was not
met, why is this? Is corrective action required? What corrective action would be most effective
and efficient?
Finally, there is a feedback loop back to the KPI step. Generally, the business objectives
themselves are relatively static because they are related to a stable business strategy. But KPI’s
can change depending on the evolving business environment. For example, managers may
discover better or more detailed KPI’s to describe the achievement of the objectives. Also early
KPI’s may be superseded by more challenging KPI’s if it is determined that the PMO is ready to
tackle more challenging goals.
The following is an example KPI setup.
Example Key Performance Example Specific

Business Objective
Indicators Performance Targets
Serve as [Client Program 1] 1. Number of best practices per 1. Ten best practices by
& [Client Program 2]’s Service Offering identified, x/x/2014.
authority on project documented and implemented
management practice across all projects.
Support the delivery of 1. Number of project 1. Five processes per
successful projects management processes service offering by
throughout all project phases developed by the PMO xx/xx/2014.
and implemented at the 2. 100% of PMO
project level. positions staffed by
2. Percentage of key PMO xx/xx/2014.
positions staffed versus target. 3. 75% of artifacts
3. Effectiveness rating of project judged by PM as
artifacts developed by PMO staff being “effective” or
(e.g. project schedule, risk log, higher.
financial estimates, etc) 4. 50% of projects by
4. Number of projects expected to xx/xx/2015.
complete on-time, on budget and
with expected benefits
Build Project Management 1. Percent of Service Offerings for 1. 75% of Service
professionalism amongst which there is an identified and Offerings by
[Client Program 1] & [Client documented training and xx/xx/2014.
Program 2] project staff development plan. 2. 50% of PMO
2. Percent of PMO resources who resources by
have met competency xx/xx/2014.
framework level targets for their
designated role.
Provide tactical and strategic 1. Degree to which PMO is 1. Medium to high
input to [Client Program 1] & prepared and capable of degree by xx/xx/2014

22
[Client Program 2] senior advising on [Client Program 1] 2. Medium to high
management & [Client Program 2] project degree by xx/xx/2014
investment decisions and
planning.
2. Degree of completeness and
detail with which is capable of
reporting on project risks and
dependencies.
12 PMO Tools and Processes

This section contains a brief review of some of the tools that may assist the [Client Program 1] &
[Client Program 2] PMO in achieving its objectives. It is assumed that certain tools are “default”,
such as MS Office, Visio and MS Project and the [Client Department 1] PMIS, so these will not
be discussed.
There is a family of products termed Project Portfolio Management (PPM). These products are
useful for organizations having programs consisting of multiple projects or in some instances
even a single highly complex project could be served by a PMIS. This is an extremely
competitive product space with over 120 competitors globally.
PPM tools focus on three general areas:
1. Portfolio Prioritization and Optimization: Mathematical algorithms are used to support

decision making regarding the types and mix of projects that should be adopted by the
organization. These will help the organization:
a. Document motivations for prospective projects;
b. Simulate the impact of project decisions on the business;
c. Evaluate projects based on effects of opportunity costs;
d. Compare relative values of projects; and
e. Understand risks, including risks of deferral or cancellation.
2. Multi-Project Management Tools: These tools concentrate on project planning and

execution. These will help the organization:
a. Support planning, including work breakdown structures and schedules. This can
involve integration with popular scheduling tools such as MS Project;
b. Assist with budgeting and cost estimates, often with integration to Enterprise
Resource Planning tools such as SAP;
c. Assist with project reporting and status; and
d. Support collaboration and communication.
3. Resource Balancing Tools: These tools help the organization understand and optimize
the distribution of resources across projects. These will help the organization:
a. Track competencies, skills and experience across the project workforce;
b. Manage work requests;
c. Track resource allocations and utilization;
d. Determine resource requirements; and

23
e. Show the impact of resourcing decisions on project completion or schedule.
A PMS can be an asset in a complex environment when there is a lot of information to

aggregate for the purpose of reporting and decision-making. Many PPM tools have strong
integration features that can be used to leverage existing software assets such as SharePoint,
MS Project and SAP. The downside is that they can be complex and difficult to set up and
maintain. Depending on the developer, it can also be costly.
As mentioned, there are several options potentially worth considering. Most major software
vendors have PPM offerings including Microsoft (EPM), IBM (Rational Focal Point), Computer
Associates (CA Clarity), SAP (Project and Portfolio Management) and HP (PPM Center), to
name a few. Adoption of any product would require a clarifying business case in coordination
with the [Client Department 1] EPMO, as a department wide standard is already understood to
be in place.

24

Implementation and Development of A PMO

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[Client Logo Removed]

[Client Program 1] & [Client Program 2]

[Client Logo Removed]

[Client Program 1] & [Client Program 2] - PMO Development Strategy

[Client Program 1] & [Client Program 2] - PMO Development Strategy

[Cl Prog 1] & [Cl Prog 2] PMO

Roles & Responsibilities

Learning & Development

[Client Program 1] & [Client Program 2] - PMO Development Strategy

This document is not intended to be a project management framework; it is designed to

2 The PMO Value Proposition

Tactical Value Strategic Value

 More efficient and effective project  Improved executive insight to

Figure 2: [Client Program 1] & [Client Program 2] PMO Value

[Client Program 1] & [Client Program 2] - PMO Development Strategy

2.1 Types of Value Generating Models of a PMO

Supportive PMO – provides support to projects in terms of on-request project management

[Client Program 1] & [Client Program 2] - PMO Development Strategy

2.2 Practical Considerations within [Client Program 1] &

[Client Program 1] & [Client Program 2] - PMO Development Strategy

3 [Client Program 1] & [Client Program 2] PMO

3.1 [Client Program 1] & [Client Program 2] PMO Mission

3.2 [Client Program 1] & [Client Program 2] PMO

1. Serve as [Client Program 1] & [Client Program 2]’s authority on project

2. Support the delivery of successful projects throughout all project phases

[Client Program 1] & [Client Program 2] - PMO Development Strategy

3. Build Project Management professionalism amongst [Client Program 1] & [Client

4 Support Service Offering

4.1 PMO Support Services Scope

[Client Program 1] & [Client Program 2] - PMO Development Strategy

4.2 Initial Support Services Offering

The list of initial services offerings will be based on:

4.2.2 Initial Support Services

[Client Program 1] & [Client Program 2] - PMO Development Strategy

Leadership and Strategy

Planning and Control

Quality and Risk Management

5 PMO Organization and Resource Roles &

[Client Program 1] & [Client Program 2] - PMO Development Strategy

5.1 Roles and Responsibilities

[Client Program 1] & [Client Program 2] - PMO Development Strategy

Support [Client Program 1] & [Client Program 2] Projects

[Client Program 1] & [Client Program 2] - PMO Development Strategy

5.1.2 Managers, Planning and Strategy and Operations and Controls

The manager’s duties will consist of the following:

6 [Client Program 1] & [Client Program 2] PMO

6.1 Competencies/Experience Required per Position

[Client Program 1] & [Client Program 2] - PMO Development Strategy

Considerable knowledge and experience in application and tailoring of the competency

Figure 5: Competency Scale

6.2 [Client Program 1] & [Client Program 2] PMO Resource

[Client Program 1] & [Client Program 2] - PMO Development Strategy

1. Positions/roles can be recombined. While the organization in Figure 4 depicts the

4. Focused use of contractors. The availability of experienced government resources with

[Client Program 1] & [Client Program 2] - PMO Development Strategy

8 Capability Schedule and Milestones

Figure 6: Implementation and Development Milestones

[Client Program 1] & [Client Program 2] - PMO Development Strategy

[Client Program 1] & [Client Program 2] - PMO Development Strategy

10 Project Management Maturity Framework

10.1 Standards applicable to [Client Program 1] & [Client

 [Finance Controller] [Government Tool] ;

[Client Program 1] & [Client Program 2] - PMO Development Strategy