ImpIementing A

Project Management Office (PMO)

Prepared by: James Waln, PMP
October 2007
1
Overview
The What and Why of PMO's
Starting a PMO
Types of PMO's
PMO Roles and Responsibilities
Executive Buy-n
PMO Best Practices
Sources and Suggested Reading
Reference Material
2
The What and Why of PMO's

What Is a PMO ExactIy?

of respondents said PMO means

project management office; 12 said it
means program management office.
Study by Brian Hobbs PMP and Monique Aubry
of respondents said PMO means
project management office; 12 said it
means program management office.
Study by Brian Hobbs PMP and Monique Aubry
of respondents said PMO means
project management office; 12 said it
means program management office.
Study by Brian Hobbs PMP and Monique Aubry
"An organizational unit to centralize and
coordinate the management of projects under
its domain. A PMO oversees the management
of projects, programs or a combination of
both.
A Guide to the Project Management Body of Knowledge (PMBOK
guide), Third Edition 2004, p. 17
"An organizational unit to centralize and
coordinate the management of projects under
its domain. A PMO oversees the management
of projects, programs or a combination of
both.
A Guide to the Project Management Body of Knowledge (PMBOK
guide), Third Edition 2004, p. 17
"An organizational unit to centralize and
coordinate the management of projects under
its domain. A PMO oversees the management
of projects, programs or a combination of
both.
A Guide to the Project Management Body of Knowledge (PMBOK
guide), Third Edition 2004, p. 17
n each organization, the definition of a PMO
may vary in name and by function, but it
essentially centralizes, coordinates and
oversees the management of projects and
programs.
Article by Bud Baker, Ph.D. PMI Network, June 2007
n each organization, the definition of a PMO
may vary in name and by function, but it
essentially centralizes, coordinates and
oversees the management of projects and
programs.
Article by Bud Baker, Ph.D. PMI Network, June 2007
n each organization, the definition of a PMO
may vary in name and by function, but it
essentially centralizes, coordinates and
oversees the management of projects and
programs.
Article by Bud Baker, Ph.D. PMI Network, June 2007
The Project Management Office (PMO)
W Provides an opportunity for project managers to develop
professionally more quickly than most could ever hope, if
they were working isolated from one another.
W A PMO is a centralized organization dedicated to
improving the practice and results of project management.
W Some PMO initiatives are minimal, involving part-time staff.
W Other initiatives involve huge infrastructure, with rigid centralized
planning, control and methodology.
W An organizational entity created to assist project managers in
achieving project goals.
W A PMO is a group of people with a mission to support project
managers in the successful launch, implementation, and completion of
projects.

PMO ResponsibiIities

What Benefits Does a PMO Offer?

PMO's are/can.
Making available qualified
project managers
Provide support personnel
to assist project managers
Allow project managers to
pool their skills and
knowledge
Help project managers to
develop professionally
Recommended for
organizations with many
project managers
Provide consulting-type
services and products to its
constituency
If a PMO is not used.
With several projects under
way, project managers are
probably not learning from
one another
PMs are probably not
sharing best practices
PMs are not challenged to
continuously improve their
skills
Project managers can be
overtly influenced by line
managers
Project managers scattered
across an organization with
no common bond are
significantly handicapped
%he most important service of a PMO is to provide qualified
project managers to an organization.

$tarting a PMO

$tarting a PMO
FACT$
Executives must deIiver in two key areas - ongoing
operationaI resuIts and improvement efforts.
FunctionaI managers are continuousIy evaIuated by senior
management, peers, and subordinates for their abiIity to
make things happen quickIy.
Many projects invoIve muItipIe departments and functionaI
areas.
Each organizationaI unit has its own Ianguage, its own
standards, its own project management techniques or Iack
thereof.
No wonder so many centraI project management
coordination units have sprung up in the Iast few years.
Today, there is estimated to be over 50,000 such
organizations in the U.$. aIone.
FACT$
Executives must deIiver in two key areas - ongoing
operationaI resuIts and improvement efforts.
FunctionaI managers are continuousIy evaIuated by senior
management, peers, and subordinates for their abiIity to
make things happen quickIy.
Many projects invoIve muItipIe departments and functionaI
areas.
Each organizationaI unit has its own Ianguage, its own
standards, its own project management techniques or Iack
thereof.
No wonder so many centraI project management
coordination units have sprung up in the Iast few years.
Today, there is estimated to be over 50,000 such
organizations in the U.$. aIone.

$tarting a PMO
PMO Requirements:
PMO vaIue must be measurabIe to become
sustainabIe.
If you cannot measure, you cannot controI
and if you cannot controI, you cannot manage.
The PMO must be aIigned with the interests
and goaIs of the organization to sustain itseIf.
PMO Requirements:
PMO vaIue must be measurabIe to become
sustainabIe.
If you cannot measure, you cannot controI
and if you cannot controI, you cannot manage.
The PMO must be aIigned with the interests
and goaIs of the organization to sustain itseIf.
10
W A PMO has responsibiIity for educating
the organization it serves about its benefits
it brings to projects
W A PMO must create and track metrics to
show the resuIts of its contributions
W A PMO shouId survey its customers
routineIy to verify it is adding vaIue
W A PMO has responsibiIity for educating
the organization it serves about its benefits
it brings to projects
W A PMO must create and track metrics to
show the resuIts of its contributions
W A PMO shouId survey its customers
routineIy to verify it is adding vaIue
W %he PMO should focus on portfolio
management of:
Project investments
Resources
Assets
Strategic objectives
Types of PMO's
11
Current PMO and Advanced ModeIs
TraditionaI PMO Next Generation PMO
Focus mostIy on tacticaI issues Focus on strategic and cuIturaI issues
$cience of project management Art and craft of project management
Views organization as a "compIex
machine"
Views organization as a "compIex ecoIogy"
Emphasis on monitoring and
controI
Emphasis on coIIaboration
Provides tooIs simiIar to a precise
"map" to foIIow
Provides tooIs simiIar to a "compass" that
show the direction
InternaI process focused
Focus on end products, customers and
outcomes
Process driven Business driven
$tandard (heavy) methods and
practices
AdaptabIe and fIexibIe (agiIe) methods and
practices
Based on ruIes; foIIow ruIes
Based on guiding principIes; foIIow ruIes
and improvise if needed
Defined, repeatabIe, managed and
optimized practices
Adaptive and innovative practices
Focus on efficiency Focus on effectiveness and innovation
Process Ieadership Thought Ieadership
Heavy management and
governance
BaIanced management, governance and
Ieadership
TabIe courtesy of J. DuggaI, Projectize Group, http://www.projectize.com.

12
What Does a PMO Look Like?
TypicaI starting point for a
PMO can be three project
managers, a team leader, and
five team members (also called
PMO support personnel).
TypicaI starting point for a
PMO can be three project
managers, a team leader, and
five team members (also called
PMO support personnel).
PMO Project $tarter $ervices.
W Provide well-trained and competent project managers to run
key projects.
W Provide project management consulting.
W Review contract proposals from vendors.
W Sponsor project management education.
W evelop, document, and maintain project management best
practices.
W onduct project culture training.
W Perform project reviews.
W Perform post-project reviews.
W Ensure that new projects apply lessons learned.
PMO Project $tarter $ervices.
W Provide well-trained and competent project managers to run
key projects.
W Provide project management consulting.
W Review contract proposals from vendors.
W Sponsor project management education.
W evelop, document, and maintain project management best
practices.
W onduct project culture training.
W Perform project reviews.
W Perform post-project reviews.
W Ensure that new projects apply lessons learned.
Reporting View of a $maII Project Management Office
1
PMO ModeIs
EarIy on in PMO history, the Gartner Group identified three
PMO modeIs as fIourishing:
W "Project Repository ModeI"
W "Project Coach ModeI"
W "Enterprise PMO ModeI"
%here is a fourth model, called the "Deliver
Value Now Model," that should not be
ignored.
1
PROJECT REPO$ITORY MODEL
PROJECT REPO$ITORY MODEL
BENEFIT$
PMO serves as a source of
information on project methodoIogy
and standards.
Assumes the enterprise has
embraced a cohesive set of tooIs for
project design, management, and
reporting.
Occurs most often in organizations
that empower distributed, business-
centric project ownership or with weak
centraI-governance.
Data gap identification
IncrementaI risk management controI
as projects initiate and mature in the
deveIopment cycIe
BottIeneck identification for aII projects
"Raising the bar" for deIivery
"goodness"
1
PROJECT COACHING MODEL
PROJECT COACHING MODEL
BENEFIT$
Assumes a wiIIingness to share some
project management practices across
functions and uses the PMO to
coordinate the communication.
Best practices are documented and
shared and project performance is
monitored activeIy.
ResuIts are used to raise enterprise
performance and train inefficient or
new project managers.
Acts as trainer
ConsuItant or mentor
$ource of information on project
processes
Often heIps in project setup and post-
project reviews
1
ENTERPRI$E PMO MODEL
ENTERPRI$E PMO MODEL BENEFIT$
The most permanent, consoIidated,
organizationaI modeI and concentrates
project management within the PMO.
The mission of the EPMO impIies
direct management or oversight of
projects.
AII project managers are staffed
within the shared service and
consigned to projects as needed.
The EPMO acts as a contracted
project manager, assessing scope,
aIIocating resources and verifying time,
budget, risk, and impact assumptions.
Many firms have since Iearned that a
consuItative approach aimed at
increasing project throughput and
reducing project durations requires
teamwork between the EPMO and the
project teams.
The idea of a PMO owning the project
managers has some significant potentiaI
negative effects.
The project management expertise and
standards may not fiIter through to
functionaI areas.
When significant portions of the
projects are part of one functionaI area,
that functionaI area may not feeI as
committed.
1
"DELIVER VALUE NOW" MODEL
"DELIVER VALUE NOW" MODEL BENEFIT$
Puts organization goaIs first.
Improvements in PM methodoIogy are
viewed as a means to an end, and not
the end in itseIf.
A hoIistic approach, embracing
methods, skiIIs and strategy that views
project management as one piece of a
bigger puzzIe.
EnabIes consistent motivation for the
entire organization to seek out
acceIerated project deIiveries.
A stronger, more baIanced project
portfoIio and better project
performance.
A strong, weII-baIanced project
portfoIio that identifies up-to-date project
workIoad, sponsorship, tacticaI
progress, heaIth status and current data
gaps.
A monthIy "pIan and forecast" that
identifies portfoIio opportunities and
threats, top issues and risks, projects
over/under budget summary.
A project prioritization modeI for aII
portfoIio projects based on abiIity to
form a Governance Board to direct
modeI creation.
Governance Board setup and/or
modification enabIes the force-ranking of
the portfoIio of projects.
Project management training,
coaching, and mentoring based on need.
1
DETERMINING THE PMO MODEL FOR
YOUR ORGANIZATION
Questions you shouId ask.
1. Who wiII initiaIIy be the main customers of the PMO?
2. What is the maturity IeveI of the project management
community?
3. How weII does the Executive Team work together for the good
of the enterprise?
4. Where is the greatest pain?
5. WiII the PMO be abIe to deaI with the intensity of missed
deIivery expectations from the executives and aII of its
impIications?
6. WiII the PMO be abIe to rescue troubIed projects criticaI to the
business? What if it cannot?
7. WiII the PMO be funded sufficientIy and supported by the
executives to meet the vaIue opportunities and threats?
1
PMO RoIes and ResponsibiIities
20
PMO RoIes and ResponsibiIities
PMO EXECUTIVE
21
PROJECT MANAGEMENT TOOL MENTOR
PROJECT PORTFOLIO MANAGER
HELP DE$ $PECIALI$T$
RE$OURCE PORTFOLIO MANAGER
METHODOLOGY $PECIALI$T
PROJECT MANAGEMENT TRAINER
DATA ADMINI$TRATOR
PROJECT MANAGEMENT MENTOR
PMO $ervices Overview
As a PMO begins to define its objectives, it needs to
consider what services it will provide to meet those
objectives.
t must also assess when in its implementation schedule
it will provide these services.
The services that are required dictate the various roles
and responsibilities.
Each service provided will require some level of staff
support.
22
PMO $ervices
PMO $ervices
PortfoIio
Management
ConsuIting &
PMO $ervices Training Admin./H.R. Archives
Project portfolio
information
Project rescues Methodology Project
accounting
nformation
repository
Asset, strategic
objectives and
resource
portfolios
Project
acceleration,
assessments,
threats and
opportunities,
auditing, risk
management
Tools Operations
planning and
forecasting
ata integrity and
security
Executive
reporting and
governance
Project
management
processes, tools,
methodologies
Project
management
basics
ata collection
and report
distribution
Project document
library/knowledge
management
Prioritization
techniques
Mentoring ertification Asset tracking Lessons learned
Staggering of
projects
Help esk Teamwork Materials and
supplies
losed contracts
Strategic
resource
management
Web
portal/information
management
Advanced
project
management
ontract and
change
management

Analysis Resource
recruiting
Scheduling
software
Metrics,
bonuses, career
path, rewards
and recognition

ustomer
interface
ustomer interface ustomer
interface
ustomer
interface
ustomer
interface

2
Executive Buy-In
2
Executive Buy-in of The PMO
A PMO must deIiver on its promise through four major processes:
Choosing the right project mix - a new way of strategic pIanning
Linking the executive team's strategies to current and pIanned projects
Managing the project portfoIio correctIy
Measuring the PMO to tangibIy improve project performance reIative to
the executives' strategic goaIs
Executives wiII embrace a PMO that dramaticaIIy increases the
probabiIity of meeting their goaIs.
Executives wiII embrace a PMO that dramaticaIIy increases the
probabiIity of meeting their goaIs.
A PMO must be able to help executives with execution of strategy, as
determined by the project mix and flow, or the PMO will not achieve
sufficient level of value to sustain itself.
2
Executives Embrace a PMO If.
CHARACTERI$TIC$ OF A PMO THAT EXECUTIVE$ WILL
EMBRACE:
Executives will perceive value if the PMO helps the
executives meet the goals on which they are measured
t must drive more projects through completion, without
correspondingly increasing resources
Projects must be completed in drastically shorter times
The impact of the PMO is clearly felt on both the top and
bottom lines of the organization (even in not-for-profit
organizations)
Executives and managers throughout the organization feel
that they are getting benefit out of the PMO
2
PMO Best Practices
2
EIements of An Effective PMO
%he Right People
%he Right %ools
%he Right Data
AVOIDS: %he Wrong Result
%he Right %ools
W PMOs may purchase
Enterprise Project
Management (EPM)
tooIs
W With Iow project
management maturity,
sophisticated tooIs
meet heavy resistance.
W PMOs without a
marketing pIan to gain
strong buy-in on tooI
usage are doomed.
W IncIude peopIe from
the suppIy side and
market side of the
organization.
W A PMO requires
skiIIs in marketing
and communications.
W The PMO shouId
cover muItipIe
discipIines.
%he Right People %he Right Data
W To improve, project
deIivery must be
measureabIe.
W This process is often
accompIished with
project status reports.
W The PMO must
diagnose system
probIems to heIp soIve
them.
2
THE "WRONG" RE$ULT - WHY PMO
IMPLEMENTATION$ FAIL.
The PMO did not define its value proposition.
The PMO is not perceived as impacting project delivery abilities.
The PMO is seen as a threat most often too authoritative.
The PMO does not have buy-in from the senior management.
The PMO is too low in the management reporting.
Project Management Overhead the bad PMO acronym.
The PMO is micromanaging trying to control every project directly.
2
$ome FinaI Thoughts on starting a PMO.
In today's economy, more vaIue is needed now.
EstabIishing a PMO that brings recognized vaIue in
the first six months of its existence is criticaI.
Recommend you go beyond the originaI modeIs.
As you pIan the PMO impIementation, seriousIy
consider estabIishing visibIe vaIue to senior
management from the get-go.
Go after the Iow-hanging fruit that heIps everyone win
and the PMO wiII be on its way.
Avoid being perceived as sitting in the "Ivory Tower
of Project Management ExceIIence".
BuiId a PMO that wiII "DeIiver VaIue Now."
0
$ources & Recommended
Reading
1
$ources and Recommended Reading
Advanced Project Portfolio Management and the PMO: Multiplying RO
at Warp Speed by Gerald . Kendall and Steven . Rollins, J. Ross
Publishing 200
The Enter Prize Organization: Organizing Software Projects for
Accountability and Success by Neal Whitten, Project Management
nstitute 2000
mproving Your Project Management Skills by Larry Richman,
AMAOM 200
Building Project Management enters of Excellence by ennis Bolles,
AMAOM 2002
ntroduction To Project Management by Kathy Schwalbe, Thomson
ourse Technology 200
"n ommon by Bud Baker, Ph.., PM Network magazine, September
200
"efinition mpossible by Bud Baker, Ph.., PM Network magazine,
June 200
2
Reference MateriaI

Next $teps Overview

I. Executive $ummary/ProposaI Letter with these sections:
I. Business Case
II. $cope
III. Approach
IV. Risk
V. Cost and Benefits
VI. TimeIine
II. To successfuIIy gain executive buy-in spend an hour with each
functionaI executive to assess the current environment
III. Executive Presentation (3 hour time sIot)
I. The probIems in managing projects
II. The cost of the probIems
III. The connections between the root probIem and the executive probIems
IV. $imuIate one of the probIems to show the executives the impact
V. The PMO $oIution
VI. Discussion
VII. ConcIusion
IV. This proposaI becomes the formaI written document for chartering
the impIementation of the PMO as a project.

PMO RoIes and ResponsibiIities

RoIe ResponsibiIities VaIue
Required
$kiIIs When
Leads the
development
of the PMO
value
proposition
Leads the
PMO
strategically
Key to
gaining
organization-
wide support.
PMO charter
development and
implementation
Ensuring all PMO
activities are driving
bottom line value
Buy-in and
involvement of
executives
PMO staffing
Approval of monthly
forecast and work
plan report
PMO staff retention
Approval authority
on project mgmt.
contracts
Measured by
how much
documented
value is
brought to the
organization
Executive
oriented
Project
management
professional
Has the ability
to work well with
all levels of the
organization
ross-
functional
experience with
project portfolio
management
onsulting
background
This is the
first person
hired into the
PMO.
PMO EXECUTIVE

PMO RoIes and ResponsibiIities

RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
Leads and
maintains the
development
of the project,
resource,
asset and
strategic
objective
portfolios
Reports to
the PMO
executive
Financial
and what-if
analysis.
Analyzes the project
portfolio and makes
recommendations to
decision makers
Balances the portfolio
Evaluates and helps
to implement processes
to improve project flow
Publishes the
monthly forecast and
work plan report
Manages the
development and
definition of the
prioritization model
an be backup to the
PMO executive
Same
measurement
as PMO
executive
improvement
in RO in
project
portfolio.
Ability to report
bad news
Ability to work
well with all
levels of the
business
Portfolio
management
experience for
project portfolios
> $2 million.
Part of
the first
group of
people
hired into
the PMO
PMO
Executive
PROJECT PORTFOLIO MANAGER

PMO RoIes and ResponsibiIities

RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
Supports
project
rescues
Works in
the field
assisting
project teams
Trains
project
managers
onducts
project
assessments
Reports to
the PMO
executive.
Provides coaching
and mentoring services
to the project
management
community on top
portfolio-related
components
Works with project
sponsors and project
managers to identify
project delivery
opportunities and
threats.
Same
measurement
as PMO
executive
Monetarily
identified in
overcoming
project team
threats and
opportunities
Ability to work
well with all
levels of
business
onsultative in
nature and
duties
ertified
Project
Management
Professional
(PMP)
omplete
grasp of PM
PMBOK
fundamentals
Ability to work
in high stress
situations
Part of
the first
group of
people
hired into
the PMO
PMO
Executive
Project
Portfolio
Manager
PROJECT MANAGEMENT MENTOR

PMO RoIes and ResponsibiIities

RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
Provides
technical
leadership,
coaching and
mentoring on
all PMO tool
utilization
Reports to
the Project
Management
Mentors
Ensures the integrity
of all data captured
through the supported
PMO tools
Responsible for the
competence of all
project managers,
resource managers and
team members in PMO
tools and applications
Helps with project
rescues in rescheduling
work loads in the
scheduling tool.
Same
measurement
as PMO
executive
ata integrity
and
completeness
Expert in
scheduling tools
Quick learner
on software
packages
Ability to work
well with all
levels of the
business
omplete
grasp of PM
PMBOK
fundamentals
Ability to work
in high stress
situations
Part of
the first
group of
people
hired into
the PMO
Project
Management
Trainer
Project
Management
Mentor
PROJECT MANAGEMENT TOOL MENTOR

PMO RoIes and ResponsibiIities

RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
ustomer
service
Supports
the project
management
community
service
requests for
assistance
Answers and
tracks field requests
for assistance from
project management
community
Same
measurement as
PMO executive
Responsiveness
to customer help
desk calls.
Ability to work
well with all
levels of the
business
A complete
grasp of PM
PMBOK
fundamentals
Trained in all
PMO standard
tools and
methodologies
Excellent
communication
skills
Ability to
translate
technical jargon
into simple
concepts
Part of
the first
group of
people
hired into
the PMO
No later
than early
in second
six
months of
PMO
implemen
tation
schedule
Project
Management
tool Mentor
Trainer
Project
Management
Mentor
HELP DE$ $PECIALI$T$

PMO RoIes and ResponsibiIities

RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
Oversees
resource
portfolio,
including
strategic
resources
Works with
Project
Portfolio
Manager to
help balance
the portfolios
Seeks to
implement
resource
portability
Full and correct
utilization of the
organization's
strategic resources
Tracks resource
utilization trends in
alignment with
portfolio objectives
Assists project
management
community in
locating just-in-time
resources.
Same
measurement as
PMO executive
Utilization and
throughput per
week of the
organization's
strategic
resources
Primary PMO
executive
measurement: to
reduce delays
caused by
unavailable non-
strategic
resources.
Ability to work
in high stress
situations with
project team
partners
Strong
negotiation
skills.
Part of
the
second
group of
people
hired into
the PMO
Project
Portfolio
Manager
RE$OURCE PORTFOLIO MANAGER
0
PMO RoIes and ResponsibiIities
RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
Works with
project teams
in the
application of
the project
management
methodology
Assesses team's
methodology usage
for method
compliance and
associative risk
management for all
key projects
Works with Project
Management Mentor
to identify and
overcome obstacles
and resistance
Same
measurement as
PMO executive
Percentage of
project
management
community
claiming that
methodology is
worthwhile
Strong
background in
PM/PMBOK
concepts and
their application
Ability to
teach concepts
to work teams
ertified as a
Project
Management
Professional
(PMP)
Able to work
with business
sponsors and
their project
teams in project
startups.
Part of
the
second
group of
people
hired into
the PMO
Brought
in early if
the work
environm
ent has
very low
project
managem
ent
maturity
Project
Management
Mentor
Trainer
Resource
Portfolio
Manager
METHODOLOGY $PECIALI$T
1
PMO RoIes and ResponsibiIities
RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
Works with
project
teams,
functional
units and
other
organizations
to provide
and arrange
project
management
training
Teach project
management basic
and advanced
concepts
Same
measurement as
PMO executive
Agreed upon
financial impact of
the training,
signed off by
sponsors or
functional
executives.
Professional
training
experience
Part of
the second
group of
people
hired into
the PMO
Brought
in earlier if
the work
environme
nt has low
project
managem
ent
maturity
Methodology
Specialist
Project
Management
Mentor
PROJECT MANAGEMENT TRAINER
2
PMO RoIes and ResponsibiIities
RoIe ResponsibiIities VaIue
Required
$kiIIs When
PMO Career
Path
onstructs
the monthly
forecast and
work plan
report
ocument
librarian
Supports all
PMO role
players
Provides
primary
support for
the portfolio
manager
Ad hoc reporting;
PMO data repository
processing and
integrity
Review of portfolio
project status
reports and
schedules for data
completion
Same
measurement as
PMO executive
ustomer
satisfaction with
information (not
data) provided.
Ability to
work in high
stress
situations with
project team
partners
Should
be part of
the first
group of
people
hired into
the PMO
Help esk
Specialist
Methodology
Specialist
DATA ADMINI$TRATOR