Implementing a value-driven
Project Management Office
a business value proposition for integrating
Project Management as a core capability across
VIG Romania
Topics
Project Management: existing situation
The missing link: PMO
Roadmap for a successful PMO
implementation
Project Management:
existing situation without a
PMO
Project Environment
Projects are executed in isolation, across various
business units
Different approaches in managing projects across the
enterprise
Lack of common understanding/ language:
Link between business strategy and projects
Project Management terminology
Project business value
Expectations
Business Executives
Better connection between business goals and
projects results
More value with less resources
Project Managers
Common approach on managing projects
Enough resources
Functional/ Unit Managers
Better control of resources
Improved reporting capabilities
Overall conclusion
Projects are not delivering maximum value to the
organization
Project Management is not yet a core business practice
across the enterprise
Executives don’t perceive Project Management as a
business enabler
There is a missing link between project execution
environment and business strategy
The missing link: PMO
Solution: PMO is the VALUE LINK
Corporate/ Division
Strategy
Governance and
Project Alignment
Prioritization
PMO Project Portfolio Board
Consolidated Reporting
Project Execution
Environment
What is a PMO?
Chartered organizational structure: “Dept. of Project Mgmt.
Practice”
Set of processes
Functional model of the PMO
Project and Portfolio Mgmt. methodologies
Process Assets Library
Pool of resources (project managers, tools and applications)
Competency Center (training, coaching. Technical support for
Project Managers)
“executive cockpit” – top management vehicle for decision
making
Major components of a PMO
know-how
Processes, models,
Tools, resources and
infrastructure
PMO
People, behavior
and organizational and support
culture Strategy, commitment
PMO’s Mandate
Maximize project benefits
Connect strategy with tactics
Implement rigorous PM practice across the organization
Integrate:
Processes and practices
People
Departments/ organizational structures
A Typical standard PMO Model
Key Functions of the PMO
Project Portfolio Management Support
Prioritization and operations planning/forecasting
Project Management Training and Mentoring
Resource Management – Gaps, Recruiting, & Skills Competency
Leadership - Key Projects
Project Management Processes & Methodology
PM Metrics/Reporting
Project Management Tools
PMI or Company Specific PM Certification
Just-in-time support to project needs
Project Startup Assistance
Proposal Support
Risk Assessments
Project Change Management
Support
Project Recoveries/Rescues
Project Assessments
Roadmap for a successful
PMO implementation
PMO Conceptual Lifecycle
Most successful PMO implementations go through these four
main phases—and repeat as necessary
Analysis
Design and
Evaluation
Planning
Implementation
Implementation phases (high level)
Gap Analysis Design and Build Operate
1. Understand current 1. Select PMO model 1. Perform assigned
status functions:
2. Design functional
2. Document model A. Process
requirements and development
3. Issue PMO Charter
expectations and deployment
4. Assign
3. Validate alignment B. Consolidated
responsibilities and
with business performance
authority
strategy reporting
5. Develop processes
4. Document constraints C. Training center
(PAL)
and assumptions
6. Select software tools D. Audit
2. Provide feedback for
7. Develop capabilities
Portfolio Management
based on functional
model 3. Integrate business
8. Establish budget and processes
cost/revenue model 4. Organizational
integration
(vertical/horizontal,
internal/external)
Typical timeline
Duration may vary based on specific conditions
3 months 6 months 12 months 6 months
Project Design
kick-off
Deployment
Assessment
and validation
Validate Approve PMO up and
analysis concept and running
Gap report, PMO detailed plans
Analysis Charter, High-
level Plan
Continuous
Improvement
Critical success factors
Executive’s involvement and commitment: continuous
Right (balanced) positioning within the organizational
hierarchy – sufficient authority
Choosing appropriate PMO type for the given business
model
Access to adequate competencies, skills and know-how
in building a PMO
Questions?
Backup
Two major types of PMO
Cost Control Model
Focused on reducing cost an delivering on-time
Limited or no impact on project alignment
Performs only on the project execution level
Limited or no visibility to executive management
Throughput Model – The Return of Investment (ROI)
engine
Focus on business value maximization
Business integrator (horizontal/vertical, internal/
external)
Benefits of the Throughput Model
More projects with the same resources (20%-50%)
Reduced completion time (up to 25%)
Increased business performance (depending on selected
KPIs)
Allows for more accurate measurement of the PMO value
across the organization (both top and bottom levels)
Increased forecasting capability
Agility –responsiveness to the changing environment
