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Answer the following questions:What is a PMO and what are its purposes?
Identify three challenges and three benefits of PMOs?
Should all organizations build the Strategic capabilities? Why or why not?
Do you agree with the Five Rules of Business Execution? Can you come up with more?
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MGMT 582:
Contemporary Topics in Project
Management
Module 2: Introduction to Project Management
Office
Module Outline
1. PMO Overview
2. Progression of PMOs
3. Three Important Considerations for Enterprise
PMOs
4. Five Rules of Business Execution
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
MGMT 582:
Contemporary Topics in Project
Management
Module 2a: PMO Overview
PMO Overview
1. PMO Overview
2. Progression of PMOs
3. Three Important Considerations for Enterprise
PMOs
4. Five Rules of Business Execution
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Current Business Environment
• Project complexity exponentially increases with cross-functional business
requirements
• Multiple projects in progress simultaneously make communication,
managing schedules & risks, and resolving issues very difficult
• Increasing demands for speed in implementation of these complex projects
• Often extreme shortage of resources makes efficient use of available
people a high priority
• Organizations cannot afford project failure as the pace of business
increases
• Difficulty managing many vendors
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
What is a PMO?
• A management structure that standardizes the project-related governance processes
and facilitates the sharing of resources, methodologies, tools, and techniques. PMI
Lexicon
• An organizational structure that standardizes the project-related governance
processes and facilitates the sharing of resources, methodologies, tools, and
techniques. PMI PMBOK Guide
• [Project Office] A temporary office setup to support the delivery of a specific change
initiative being delivered as a part of a project…. Undertakes the responsibility of a
project support role. Prince 2, Office of Government Commerce (OGC)
• [Program Office] a function providing the information hub and a standards custodian
for a programme and its delivery objectives; could provide support for more than one
programme. MSP, OGC
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
PMO Purposes
• Facilitate communication across the business units & IT
• Manage and coordinate business & IT resources across the multiple
projects in the program
• Identify opportunities for synergy amongst projects
• Operate and maintain a learning foundation through organization and
people to complement processes
• Provide value assessment (overall spending vs. overall benefits) of the
program as a whole
• Budget tracking, including all projects, plus PMO-specific activities
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Why is it important?
• Project Management Office is the main body that ensures ongoing
execution excellence for project-intense organizations
• Today, approximately 80% of Fortune 500 firms have PMOs, in various
forms and shapes
• The benefits are many:
 For executives, PMO provides visibility to project health, issues and risks, changes
and surprises
 For project teams, PMO drives discipline, control, and consistency of execution
 For customers, PMO is the connection between consistency and meeting
expectations (versus poor communication)
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Why is it important? (Continued)
• Organizations with high performing PMOs are FOUR times more likely
than low performers to excel in strategy execution.1
• Established PMOs deliver projects with higher quality and greater
business success, according to a PwC survey.2
 PMOs in place for six years or more report that 62 percent of projects achieve the
intended business benefit and 74 percent of projects are deemed high-quality, the
PwC survey says.
• Today, more than 80% of organizations have one or more project
management offices (PMOs), up from only 47% of organizations in
2000.3
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Challenges & Benefits
Challenges
Benefits
• Management buy-in is key
• Manage chaotic development / project
environment
• Support from business units: change in
culture, shift in control
• Better coordination of resources
• Sufficient clout to lead PMO
• Create symbiotic exchange across PMs
• Discordant project teams
• Provide central, targeted resources
• Inflexible staff
• Establish & enforce best practices
• Organizational effort; resource intensive
• Bulldoze roadblocks – speed up
implementation
• Tool “inadequacies”
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
MGMT 582:
Contemporary Topics in Project
Management
Module 2b: Progression of PMOs
Progression of PMOs
1. PMO Overview
2. Progression of PMOs
 Enterprise PMO vs. Initiative Specific PMOs
 History of PMOs
 Essential, Advanced, and Strategic PMOs
3. Three Important Considerations for Enterprise PMOs
4. Five Rules of Business Execution
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
History of PMOs
State driven
126 A.D
Colosseum in the year
70 A.D and the
Pantheon in the year
126 A.D. Delivered in
relatively short time
frames, Colosseum in 9
years, and the Pantheon
in 7 years. Like the
projects of today, the
focus was primarily to
keep the project
sponsors happy.
Commercial driven
Military driven
1930s.
US Air Corps
who developed a
‘Project Office’
function to
monitor aircraft
development
1945
1951
1990s
US Air Force’s
project offices,
coordinated the
development of
the B-29
bomber
Joint Project
Office (JPO)
coordinated the
development of
the B-47
Technology
projects
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Dot.com boom
Mega
projects
Context of Today’s PMO
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Challenges PMOs are facing …
How do we
determine the
important KPIs rather
than creating long
reports?
How can we
measure the
PMOs maturity
levels and
benchmark them?
How do we create a
PMO lifecycle to help
determine what and
how to implement an
effective PMO?
Why is our PMO seen
as either admin or
policy and controlling?
How can we
demonstrate
value?
How can we offer
structured services
with the corresponding
capabilities to deliver
them?
What are the tools
and techniques
required to run a
successful PMO?
Why are projects and
programs managed in
isolation?
Why do projects turn
from green to red
without warning?
How do we integrate
multiple methodologies,
tools and techniques?
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
PMO Scope
Enterprise PMO
Initiative-Specific PMO
• Focus on organization-wide initiatives
• Focus on one-time program, such CRM,
eCommerce, ERP
• Report to senior executive (CTO/CIO/CFO)
• Develop “PMO Center of Excellence” to leverage
knowledge and best practices across the enterprise
• Set up active communication, marketing, and PR
strategy
• Take 4-8 months (with active marketing); Enterprise
PMO becomes organic in 12-18 months
• Report to Enterprise PMO or business sponsor
• Actively manage program schedule, status, scope,
issues, and resources
• Leverage knowledge across the initiatives within
the project
• Take 2-4 weeks to establish; terminate upon
completion and roll into Enterprise PMO or
operations
For the rest of this course, unless it is specified,
PMOs refer to Enterprise PMO
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Progression of PMOs
Project related
PMO ranging from
supportive, reporting to
directive. PMO life
restricted by duration of
project lifecycle. Maybe
transformed into a PMO
supporting product or
service otherwise retired.
PMO services and
competencies vary
depending on several
factors
Strategic Advisors
Different capabilities to the
lower level PMOs. Senior
Center of Excellence
consulting and strategy
Evolved from department capabilities but with an
excellent understanding of
PMOs or product based
Department related
PMOs. Scope extends furtherthe mechanics of projects
PMO seeded from an old
and can take a regional or and programs as well as a
project or the need to
global context. Challenge is solid understanding of the
Program related
support ongoing operations to remain agile and provide business and its value
the capabilities on request chain. Can support the
PMO has similar functions and enhancement.
Competencies
will
focus
and not to become seen as a Portfolio PMO team as well
to project PMO but
more
on
change
centralized function pushing as receive or search new
required broader and
management and optimized out standard methods, tools mandates to support or
deeper competencies.
PMO extends into every using techniques like lean six and reporting requirements drive strategic initiatives.
sigma. PMO members will
Because of their
Often gets involved in
component project and
have
high
levels
of
Emotional
understanding of business
outsourcing and global
may also split into one or
Competence
than
initiative
and the key initiative, they
contracts and also moves
more product PMOs.
Likely PMO will transform specific PMOs. Risk of being more into standard services will be a source of new
into a product based PMO dissolved in the value add is such as ITIL based services. ideas, concepts, as well as
not seen in the department Risks losing the
knowing innovation and
on completion of the
understanding of business – strategy level techniques
program and come under
is moved into a central
the governance of a
function
department or business
unit
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Essential Capabilities
Highlights
“Essential PMOs” are mainly
designed for
project/program monitoring,
reporting, and control.
Organizations often evolve
toward this model as their
project environment
intensifies.
The benefits are immediate
with high executive visibility.
Thus, support from top
management tends to be
strong.
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Advanced Capabilities
Highlights
“Advanced PMOs” start to balance the strategic with the tactical considerations. Capabilities evolved from
monitoring and reporting, toward decision making. Furthermore, the “reach” of the PMO is broader.
At this stage, PMO’s focus shifts towards executive decision support, management of strategic assets,
exploiting or mitigating risks, governance, integration, and strategic alignment.
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Strategic Capabilities
Highlights
The view of “Strategic PMOs” extends beyond the nearterm project and program implementation. At this stage,
Strategic PMOs are deeply embedded in the overall
organizational processes and closely integrated with a
range of critical functions from strategic planning to product
development and operations management.
Portfolio management is the key to ensuring optimal
project investment in organizations. Through a disciplined
approach of identifying, prioritizing, and approving
components, organizations can achieve superior business
value.
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Comprehensive PMO Capability
Map
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
PMO Capabilities Can Also Have Multiple
Levels Of Sophistication And Automation…
Highlights
The capabilities outlined here are not static, and
arguably every one of them can evolve from basic
to advanced to strategic.
Take portfolio management as an example:

Basic – Tracking of project initiatives in execution

Intermediate – Tracking and monitoring of project
initiatives across the entire lifecycle, from ideation to
operation

Advanced – Implementing governance and alignment
processes to guide decision making

Strategic – Embedding portfolio management as a core
component of organizational investment management,
business execution, and benefit realization.
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
This raises the concept of
lifecycle at various levels.
Next, we will examine the
lifecycle of an Enterprise
PMO (ePMO).
MGMT 582:
Contemporary Topics in Project
Management
Module 2c: Three Important Considerations for
Enterprise PMOs
Three Important Considerations
1. PMO Overview
2. Progression of PMOs
3. Three Important Considerations for Enterprise
PMOs
 Lifecycle
 Building and Running Enterprise PMOs
 Governance
4. Five Rules of Business Execution
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
PMO Lifecycle Framework for
Enterprise PMOs
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Building and Running
Enterprise PMOs
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Principle Based Governance
Hierarchy
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
MGMT 582:
Contemporary Topics in Project
Management
Module 2d: Five Rules of Business Execution
Five Rules of Business
Execution
1. PMO Overview
2. Progression of PMOs
3. Three Important Considerations for Enterprise PMOs
4. Five Rules of Business Execution
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Almost the final word……
• Throughout this course and the project management courses in this
program, we have discussed a wide range of business execution and
project management activities; It can feel overwhelming.
• To simplify, PMO Advisory created a “shortcut” that has helped many of
our organizations in the short run to immediately and significantly
improve execution.
 To achieve and sustain execution excellence, there is no shortcut. Organizations
must invest in their culture, essential competencies, integrated processes, and core
disciplines (e.g. project, program, and portfolio management) that can best propel
the organization to the next level of success.
• The shortcuts are composed of five simple rules:
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
The Five Rules of Business
Execution
1 Focus on the vital few
2
Determine “what is good enough” for the rest
3
Establish good metrics and reward systems
4
5
Create an easy to understand scoreboard
Develop a culture of execution-ready mindset
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Focus on the Vital Few
The vital few should
be both urgent and
important.
1
Why are we
working on
these?
Vital Few
Why are these
even on the
list?
Do we
need to
focus on
these now?
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Determine What is
“Good Enough” for the Rest
2
• We all desire to achieve excellence, but the price of
excellence is often high – sometimes very high
 Be practical, be real, and decide what is “good enough“
• In most business endeavors, achieving “good enough” on time
is far more important than attaining “greatness” that misses
the optimal window of opportunity
 Make trade-off decisions early and quickly
 There is always a next phase…..
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Determine What is
“Good Enough” for the Rest
2
• More importantly, for the entire “system” to work,
the complimentary pieces must work together
 But often, they do not need to be perfect
• Finding the “good enough” components will
reduce anxiety, workload, and buy time and
resources to work on the vital few
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Establish Good Metrics And
Rewards Systems
3
• Business (and people) often achieve what they measure. But
determining the right metrics can be challenging. For example:
???
o Does your organization operate on a
consistent set of metrics, also known as
Key Performance Indicators (KPIs)?
o Do the metrics give you the ability to
diagnose and predict?
o Are people and teams rewarded for the
right results and behaviors?
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Establish Good Metrics And
Rewards Systems
3
• Organizations should critically challenge the current
metrics and make sure they measure the desired
outcome
• In “Execution: The Discipline of Getting Things Done”,
Bossidy and Charan, point out that rewards are pivotal
in motivating people towards achieving specific results
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Create an Easy to Understand
Scoreboard
4
• People need to see how they are doing, and there is
no better motivator than making real progress on
achieving challenging goals
• Therefore, all leaders need an easy to understand
dashboard that requires no more than 30 seconds for
the followers to check on their progress
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Create an Easy to Understand
Scoreboard
4
• The dashboard must be timely, relevant, and accurate
Some of the
best scoreboards
include:
o Traffic Signs – Red, Amber, Green
o Sport Scoreboard – Soccer, Basketball,
Football, etc.
o Goal Posts – revenue, profit, margin, market
share, net presenter score
o Progress Reports – % completion
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Develop a Culture Of Execution
Ready Mindset
5
• Develop a culture of accountability
• Accountability is accepting responsibility for a specific area of
focus and consciously striving to meet expectations of all
facets from strategy to execution
• Creating a culture of accountability will be vital for the building
of a sustainable engine of execution excellence
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Develop a Culture Of Execution
Ready Mindset
5
• In a nutshell, execution ready mindset is the habit of getting
things done. Three examples:
 When delegating, always ask for confirmation. For example, “please
confirm that you understand the expectations and the deadline”.
 When working with clients, help them make decisions by removing
obstacles.
 When working in teams, always think through how others would react
and what you can do to motivate the team to work smarter.
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018
Develop a Culture Of Execution
Ready Mindset
5
• But for some organizations, establishing this culture can be
difficult
 Leaders should start on small but meaningful tasks, celebrate
success when achieved, and move the organization toward larger
tasks and activities
• Once the rhythm of execution and accomplishment is
established, then take opportunities to nurture them including
applying the right rewards and recognition
 Before long, the organization becomes a powerhouse of business
execution.
PROPRIETARY & CONFIDENTIAL – COPYRIGHT 2018

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