Project Management Organizations

What Should PMOs Do?

Many organizations have PMOs. Whether Program or Project Management Offices, these organizations are typically set up with very similar accountabilities. While Governance and People Management are two of the most typical capabilities, what other functions are commonly associated with so-called PMOs?

Introduction
There are a multitude of project management organizations in different shapes and sizes, with different names (see: Project Management Organizations: All PMOs Are Not The Same, Slalom, 2009). There are at least two ways one can decompose a PMO: from its functional standpoint and from its span of control (or area of focus). As one begins to define possible functional offerings of a PMO, it is useful to have a common starting point: What Should a PMO Do? All PMOs should not be created the same. Given the variability in scope, size and capabilities, there is clearly no one answer to the question, what should my PMO look like? Whatever the functional definition or area of focus, the industry tends to lump all project management organizations under one name: PMO. Within the examination that follows, the PMO acronym is defined as either a Program or Project Management Office (Portfolio Management Offices, Performance Management Offices, etc. likely have different base value contributions than those described below and should be explored separately). Many Program and Project Management Offices have accountability for governance. Similarly, many PMOs share a common ownership for some level of resource management. These accountabilities appear to be standard whatever form the PMO takes or whichever area of focus the PMO operates within (e.g., within a single large-scale business initiative or over the portfolio of initiatives for an operational function like IT). While governance and resource management are two of the most commonly adopted functions within PMOs, they are not the only functions that offer value to an organization. PMOs also offer leadership, track and coordinate benefits, help to drive relationships and assist with integration efforts. A PMO may have accountability within an organization to provide leadership at various levels. For example, at a national property & casualty insurance firm, a PMO I worked in had responsibility for driving the IT strategy in coordination with IT architecture. At a multi-national retail chain where I drove program management practices, the PMO was accountable for providing leadership in largescale business initiatives (including, for example, the CFOs program to improve gross margin and the program set up to coordinate a corporate merger and integration). PMOs may also take lead roles in communications as well as organizational change management. Remember, the PMO need not be just a pool of PM resources. To the contrary, a PMO may be established as a group of business leaders for a business initiative (where PMs may participate as a support structure, it is the business leaders that are the decision making body of the Program Management Office). At a national consumer packaged goods client, Slalom worked with a business PMO that was focused on an ERP implementation. This businessled PMO provided the company with delivery execution as well as vision, strategy and leadership. Sample Activities Program Leadership Program Mobilization Program Strategy Stakeholders Communications Organizational Change Management Sample Deliverables Vision/Strategy Communications Plan Communications Materials Standard Practices and Templates Transition Plan Organizational Differentiation

Whether for a large-scale business initiative or for an entire organization, the business vision should be clearly articulated, documented and communicated. For example, it is critical to define the stakeholders of an initiative; the goals that the stakeholders are trying to achieve; and the appropriate alignment of the PMO to those needs. The documentation of the business vision can be used to ensure alignment and to can also be used to measure delivery and value. The PMO can help define the process for this visioning. The PMO can take accountability for tracking, monitoring and driving the realization of benefits for delivery initiatives. Benefits may be tracked at any number of levels: project, program or departmentally. As an independent party to the actual delivery of an initiative, the Project Management Office is in an excellent position to oversee metrics and measures. (Note: this does not
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Program & Project Management Competency Project Management Organizations

apply to a Program Management Office, since it is internal to a large scale program and therefore may lack independence.) In addition, some PMOs have their own set of metrics, independent from the programs or projects that they track. Since a PMO is established to deliver value to the organization, the PMO practitioners should lead by example and establish proven practices by measuring themselves. By reporting on its ability to exceed measures, the PMO reinforces the value contribution it offers. Sample Activities Stakeholder Business Vision Business Benefits Benefits Alignment Benefits Monitoring Business Process Integration Sample Deliverables Business Vision Business Case Continuous Improvement Plan Benefits Report

Too often, after a substantial expenditure, the organization is barely able to capture and report on time, let alone is it able to effectively manage resource pools. A common stumbling point for these organizations is a lack of planning for process development and a missing longrange vision for the on-going use of any tools. By first developing and working through a resource management process manually (and developing fully vetted requirements), a PMO may more easily be able to succeed within a time horizon that will enable pay back for the organization. But resource management is not just about staffing, time capture and tracking. Resource effectiveness can be supported through knowledge management (which includes structures, processes and tools). Similarly, effectiveness and efficiency can be linked back to training. As champions of organizational change management, the PMO can help to establish standards for on-boarding, on-going resource development and sustainability of a knowledge-sharing network. Sample Activities Project Staffing Resource Management On-boarding and Training Organizational Structure Knowledge Transfer Vendor Management Sample Deliverables Organizational Model Staffing Plan Training Plan Knowledge Management Plan

While some larger organizations have dedicated roles that act as liaisons between the business and IT, in other organizations the PMO may take on the role of business relationship management. Leveraging the output of the business benefits described above, the relationship with the business is paramount to delivering value to operations. PMOs may enact and facilitate formal processes that allow for the rigorous review and documentation of business expectations. After establishing and gaining agreement for expectations, the PMO should work to monitor, measure and report on the organizations success in attaining those expectations. Sample Activities Stakeholder Expectations Management Stakeholder Satisfaction Monitoring Sample Deliverables Stakeholder Management Plan Satisfaction Reporting

Often times a Project Management Office will sit strategically within an organization in order to have visibility to all projects within a domain (e.g., engineering or information technology). With this broad focus, the PMO can serve in the role of integrator. In other words, in addition to providing process, creating methods and monitoring metrics, the PMO can work to ensure that projects are connected, communicating and working through their inter-dependencies. A PMO may also offer operational support within an organization. For example, the Information Technology Governance Office (a PMO of another name) of a large property & casualty insurance company had the responsibility of integrating IT through a charge back process. This IT PMO orchestrated annual budget creation, set expectations with its internal customer base and facilitated the entire charge back and tracking model, including the development and ownership for IT service level agreements. This key role allowed the PMO to ensure that the IT organization was seamlessly integrated with its business customers.

Often seen as one of the top functions of a PMO, rigorous and detailed resource management unfortunately tends to be a long-term, often unrealized goal. Many PMOs have spent thousands of hours and dollars researching, purchasing, customizing and implementing software tools used to streamline time-keeping processes and to automate the tracking of organizational performance.

Program & Project Management Competency Project Management Organizations

The PMO may sometimes be tapped for its deployment expertise to assist integration efforts as a source of senior project management skills. For PMOs that are home to the most senior and experienced PMs, this role of deployment or integration expert can deliver extraordinary value by leveraging resources with key capabilities. Sample Activities Project Integration Deployment Coordination Change Management Operational Support Program Infrastructure Sample Deliverables Master Integrated Project Plans Program Plan and Master Schedule Budget and Forecast Internal Service Level Agreements Measured Metrics

Sample Activities Program Planning Monitoring and Controlling Risk Management Issue Management Quality Management Quality Reviews Sample Deliverables Quality Plan Risk and Issue Management Logs Program Status Reports Quality Reports There are many different charters for PMOs. Some act as project management resource pools: a home for shared PM resources. Other PMOs take on the full responsibility of resource management across their focus area. PMOs also have a variety of different functions and activities, depending on their organization and capabilities. Creating the right PMO for your organization requires careful planning. Plan. Implement. Measure. These are the basics for what a PMO does and are clear ways to help demonstrate value.

Governance is the paramount PMO function. While there are many aspects to governance, and not all PMOs address each of those facets, there are some easily identifiable common activities. First, PMOs often own the project management life-cycle process within a company. They are responsible for building, updating, educating users on and supporting this governance process. Linked to the governance process is the responsibility for oversight and for quality assurance for delivery. One way the PMO acts as the quality police for projects along their journey is by providing phase-gate check points within the governance process. PMOs can also take on the role of monitoring and reporting governance activities within an organization. Monitoring and controlling may be focused within a program (tracking everything from resources and budget to issues and risks) or it may be for an entire organization (providing facilitation for the reporting of project details). PMOs may govern a wide breadth of activities (across an enterprise) or a more narrowly focused set (within a single department). Similarly, the PMOs focus may be shallow (for example, acting solely as a status consolidation, summarization and reporting engine) or very deep (engaging in the detailed oversight of every project running within its purview). It all depends on the size, capabilities and competencies within the PMO. Regardless of how your PMO is established, it most probably has at least one or two governance responsibilities.

What To Do Next
There are several basic steps to follow in crafting or recasting a PMO. While each step will be implemented in a unique way given your business, state of maturity of your project management organization, PMO capabilities and where you want to go the way forward is common. 1. Assess the current state of your project management organization Leverage a third-party to give you independent feedback on how you are doing

2.

Map where you want to take your PMO Create a roadmap for attaining your to-be state, that addresses both form (span of control) and function (what you will do)

3.

Build on short-term wins Follow the roadmap, gaining success by delivering value to the company. While a longrange plan is good, your PMO must be focused on demonstrating value sooner rather than later

4.

Grow, develop and aim for continuous improvement Continue to follow the roadmap to attain your future state

Program & Project Management Competency Project Management Organizations

About Slalom:
Slalom Consulting is a business and technology consulting firm combining its local expertise with national reach. With consultants from the Big 4 and industry leaders, Slaloms mix of local leadership and innovation solves its clients most challenging business issues across four key practice areas: Business Management, Organization Effectiveness, Technology Enablement and Information Management. Working in areas such as BI, portals, mobility, project management and process design, Slalom helps create a competitive advantage for its Fortune 500 and mid-market clients across all industries. Slalom has extended its national reach from the Seattle headquarters to Atlanta, Chicago, Dallas, Denver, Los Angeles, Portland and San Francisco. Slaloms local, flexible model for both consultants and clients has repeatedly earned the firm recognition by national and regional programs as a best place to work and for service excellence. For more information, visit www.slalom.com

About the author:

Carl Manello is an experienced senior consultant with over 22 years of line management, program management and operational experience in manufacturing, insurance, retail and non-profit industries. He has focused specifically on assessing, designing and implementing PMO solutions for corporations for the last thirteen years. Carl is the Solution lead for the Program & Project Management offering at Slalom Consulting in Chicago. He is working on his book Proactive Project Management, and is a contributing author to Project Management Best Practices, by Dr. Harold Kerzner.

Program & Project Management Competency Project Management Organizations