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PC274. Fireside Chat on Best Practices for the PMO as a Service Model. Konstantin Popov IT Program Manager Chevron. Ken Prush Senior Consultant Pcubed. Fastest Growing Global Program, Portfolio and Change Management Consultancy. Most Experienced Gold Partner (est. 1994).

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fireside chat on best practices for the pmo as a service model

PC274

Fireside Chat on Best Practices for the PMO as a Service Model

Konstantin Popov

IT Program Manager

Chevron

Ken Prush

Senior Consultant

Pcubed

slide3

Fastest Growing Global Program, Portfolio and Change Management Consultancy

Most Experienced Gold Partner (est. 1994)

Fastest Growing Global PPM Consultancy

+1200 Skilled Consultants

11 NA offices

30 Global Offices

Results with 50% of Fortune 100

+30% Reduced Time-to-Market

+20% Resource Optimization

Managing Business Transformation for

50% of Fortune 100

  • Beyond Technology Solutions
  • Pragmatic, holistic Approach
  • Fast, Embedded Results
konstantin popov
Konstantin Popov
  • Chevron
    • 12+ years’ experience with project management and PMO
    • PMP, MCTS, PMI-RMP
  • Chevron
    • One of worlds top 6 super majors, leading integrated energy company
    • Engaged in all aspects of Oil, Gas and Geothermal across 180 countries
    • 11th ranked in Global Fortune 500 list

Photo

ken prush
Ken Prush
  • Pcubed Consultant
    • 6+ years experience in project, portfolio and PMO consulting
    • Has led or supported PMO development projects for IT and business in the Energy, Health Care, Insurance, Financial, High Tech, Media, and Manufacturing industries
  • Pcubed – Management consultancy focused on program, portfolio and change management
    • 30+ offices globally
    • Serving half of the Fortune 100
    • Solutions that go beyond technology

Photo

truth 1
Truth #1:

(Plan – Governance) + Time = Variance

We understand this when managing projects, but forget this when managing our project management!

variance matters
Variance Matters?

Even something small – such as the calculation for Estimate at Completion – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.

EAC = BAC / CPI!

EAC = AC +

((BAC-EV) / CPI)!

truth 2
Truth #2:

America may run on Dunkin’…

…but Project Organizations run on Data

(They both drink a lot of coffee, though!)

getting good data can be a challenge
Getting good data can be a challenge…

Even something small – such as the calculation for Earned Value – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.

I love gathering data and reporting my project’s status!

getting good data can be a challenge1
Getting good data can be a challenge…

Even something small – such as the calculation for Earned Value – can drift within an organization. When this is aggregated to the portfolio level, you wind up with an inaccurate understanding of your organization’s data and project performance.

…said no Project Manager, ever.

challenges with traditional pmos
Challenges with Traditional PMOs

The broad range of possible roles for a PMO is a primary cause of failure

The lack of a clear purpose contributes to uncertainty over the types and level of skills required by the PMO

They are often seen as added bureaucracy, and not perceived as adding value

They are often in matrixed environments with reduced leverage over PMs

Poorly placed within organization related to functional role

Often reduced to a reporting role with no additional value or function

Organisation Portfolio Office (Permanent)

Hub Portfolio / Programme Office (Permanent)

Hub Portfolio / Programme Office (Permanent)

Programme Office for a specific initiative

(Temporary)

Project Office for a specific initiative

(Temporary)

Source: P3O, Fig 1.2

enter the pmo as a service
Enter the PMO-as-a-Service

Role is more easy to codify; “services for projects” is the defining mantra

PMO becomes part of the team, not a layer above it

Cost is partially (or completely) paid by projects, which can be offset by project savings provided by PMO services

Project teams invite PMO in, which encourages collaboration and inclusiveness

Becomes less shackled to organizational set up and location within organization

Critical aspect is mentality: “We’re not promoting bureaucracy – we’re providing value”

IT/Business

Partner

PM

PM

PM

PM

Controller

BU 1

Controller

BU 2

PMO as a Service

understanding the challenges
Understanding the Challenges

Good methodology model, inconsistently implemented

Inconsistent metrics for quality measurement

Lack of resource visibility

Lack of cross-

project dependency visibility

Geographically dispersed

Non-PMs acting as PMs

“Food Fight” for project initiation and resourcing

Competing tools & technology within different groups

Large, siloed organization

the approach we took
The Approach We Took

At Chevron, we took an initial two-prong approach. Because processes around project management were in place, it was decided that data quality and capacity management would be the top two challenges to address.

Project Controllers

Dedicated project schedulers who also provide resource and report management for project managers

Schedule Templates

Project .mpp files provide a framework for task information and project data standardization

Project Server 2013

A central platform to allow enterprise visibility over project status, cost reporting, and resource capacity

Project Pro 2013

A common tool to help align project schedules and resourcing across multiple business units and OpCos

why project server 2013 for chevron
Why Project Server 2013 for Chevron?

Familiar platform– many of Chevron’s OpCos are already using a version of Project Professional and Project Server

Schedule, Cost, and Resource Management – Project Server provides flexibility and depth of functionality to enable key PMO service offerings

Portfolio Analysis – intended as future functionality to improve annual, monthly, and ad-hoc decision making around projects and portfolios

Scalability – Project Server can work natively across OpCos and portfolios

Reporting – the BI Center and SSRS offer a variety of ways to capture and report on key project data

question 1
Question #1

What’s a typical approach to defining a PMO? How do I decide which functions my PMO needs?

functions of a pmo
Functions of a PMO

Program & Project Governance

Portfolio Optimization

Process Management

Resource Management

Program & Project Controls

Administrative Support

Comms & Stakeholder Management

Professional Development

Program & Project Reporting

Risk & Issue Management

Mentoring & Coaching

Benefits Management

Program & Project Recovery

Portfolio Governance

Portfolio Reporting

Portfolio Analysis

Program & Project Assurance

Capacity Management

Project Initiation Support

Pipeline Management

PM Tool Management

Portfolio Controls

Project Management Training

Strategic Driver Prioritization

slide21

Models: CEB, the Four Archetypes

This model is presented by the Corporate Executive Board.

It uses the parameters of:

  • Involvement in Project Execution, and
  • Degree of Authority over Risk Management

to highlights the four ‘archetypes’ of:

  • Coach
  • Auditor
  • Player
  • Financial Advisor

The key question it poses for most organisations is the one on ‘involvement’, as a lack of consensus on this point is often a point of failure

Player

Financial Advisor

Involvement in Project Execution

Auditor

Coach

Degree of Authority over Risk Management

Source:Corporate Executive Board

slide22

Models: Cranfield, PMO Services

This model is presented by Cranfield University.

It uses the parameters of:

  • Operational vs Strategic, and
  • Supply vs Demand

to highlight the following four types of PMO:

  • the Project Office (PO) – focus on mainly supply side delivery
  • the Project Support Office (PSO) – focus on tactical support
  • the Enterprise Project Office (EPO) – supporting strategic demand side and supporting governance etc.
  • the Project Management Office (PMO) – demand side focus

Resource Mgmt Focus

Competency and capability development

Effective deployment of resources

Portfolio Mgmt Focus

Investment decisions and prioritisation

Maximise value from resource allocation

Inter-project communication

Strategic

Product Delivery Focus

Improve supply processes

Monitor and report progress

Manage risk of delivery failure

Project Benefit Focus

Conduct reviews and health checks

Report on value being delivered

Increase benefits actually realised

Operational

Supply

Demand

slide23

Models: Pcubed, Capacity and Influence

This Pcubed model was developed using the parameters of Influence and Capability and highlights the four key roles that a PMO can play:

  • Enabler – acts in an administrative role
  • Guardian – an office that makes sure everybody is doing things correctly
  • Coach – communicates upward to keep stakeholders informed on program status
  • Partner – can design processes and put in place and influence strategy

This model is often used to show how the maturity of the PMO can move through the roles.

  • Partner
    • Services: Proactive Executive Support;; Disciplined Delivery & Assurance
    • Benefits: Delivery Accelerator, Confidence in Success
  • Guardian
    • Services: Program & Project Assurance, Audits, Gateway Management, Tracking & Reporting
    • Benefits: Management by Facts, Early Warning

Influence

  • Enabler
    • Services: Best Practice Processes & Tools Repository, Information Hub, Project Administration
    • Benefits: One Stop Shop for Methodology & Data
  • Coach
    • Services: Capability Planning & Building, Training, Coaching & Mentoring
    • Benefits: Increased Capability, Skills Transfer, Embedded Best Practice.

Capability

slide24

Models: Sample Client Analysis

This model represents the output of client through the development process using the previous frameworks, as well as a discovery and workshop process with key stakeholders.

The client required a simple and distinctive model that showed the:

  • breadth (strategic and operational) and
  • depth (project and portfolio)

of the services that they intended to provide.

The quadrants highlight the beginnings of the ‘Service Catalogue’ and provided the basis for the PMO organisation’s structure

  • Appraise project (comparison)
  • Manage inter-dependencies between projects
  • Manage portfolio level risk
  • Manage portfolio Change Control
  • Ensure the portfolio is aligned to and supports the delivery of the corporate strategy

Portfolio

  • Appraise project (in isolation)
  • Manage Gateways
  • Lead project re-appraisals
  • Develop, Champion, and Monitor Standards
  • Develop competency standards and lead staff development

Project

Operational

Strategic

targeted pmo service offerings
Targeted PMO Service Offerings

Program & Project Governance

Process Management

Portfolio Optimization

Resource Management

Program & Project Controls

Administrative Support

Comms & Stakeholder Management

Program & Project Reporting

Risk & Issue Management

Professional Development

Mentoring & Coaching

Benefits Management

Program & Project Recovery

Portfolio Governance

Portfolio Analysis

Portfolio Reporting

Program & Project Assurance

Capacity Management

Project Initiation Support

Pipeline Management

Portfolio Controls

Project Management Training

PM Tool Management

Strategic Driver Prioritization

summary
Summary

The PMO-as-a-Service model offers organizations a value-driven approach to governance, schedule, and data management

The challenge is in trying not to do too much; focus on key value areas to best align your PMO team’s skills with their intended role

Technology is as important as good processes and good team members, so ensure all three are in place and aligned to support your PMO’s mandate

slide28

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