What colour is your PMO

1. What colour is your PMO? Danelle Jones First presented by Danelle Jones at AIPM National Conference (Adelaide) October, 2009.First presented by Danelle Jones at AIPM National Conference (Adelaide) October, 2009.

2. Overview Best practice models for measuring PMO performance Similarities / differences between models What colour is your PMO? Recommended strategies for your organisational context For over a decade, project managers and executives have debated whether and how to implement a �Project Management Office� or PMO, to improve the efficiency and prowess in project delivery within their organisations. As an organisational innovation [1], PMOs come in many shapes and sizes. There is a large amount of evidence to confirm that �one size does not fit all� [2,3] when it comes to choosing a model and a strategy to achieve desired outcomes. PMOs differ in size, shape and charter because the organisational imperatives for implementation differ greatly.For over a decade, project managers and executives have debated whether and how to implement a �Project Management Office� or PMO, to improve the efficiency and prowess in project delivery within their organisations. As an organisational innovation [1], PMOs come in many shapes and sizes. There is a large amount of evidence to confirm that �one size does not fit all� [2,3] when it comes to choosing a model and a strategy to achieve desired outcomes. PMOs differ in size, shape and charter because the organisational imperatives for implementation differ greatly.

3. PMO Maturity Models Gartner: PPM PMOs: One Size Does Not Fit All (Fitzgerald, 2008) PMI: OPM3 Organizational Project Management Maturity Model OGC: P3M3 Portfolio, Programme and Project Management Maturity Model To ensure that an organisation gets the most benefit out of an assessment, consider two factors: The type of PMO implemented (what was the initial charter / directive); and The type of assessment model used � to ensure the right goals or criteria are measured. Gartner PPM (Project Portfolio Management): The Gartner PPM (Project Portfolio Management) tool assesses key areas of: People, PPM Processes, Technology and Financial Management on a scale of 0-5 [2]. Gartner research also suggests that the target PMO maturity level should be matched to the organisational context [2]. PMI OPM3 (Organizational Project Management Maturity Model): The PMI OPM3 tool assesses PMO maturity based on the 9 PMBoK areas (Scope, Integration, Time, Cost, Quality, Human Resources, Communication, Risk, Procurement). The recently released version 2 includes business results and balanced scorecard as additional assessment areas [7]. OGC P3M3 (Office of Government Commerce; Portfolio, Programme and Project Management Maturity Model): The OGC P3M3 tool assesses structural processes of Controls, Benefits, Finance, Stakeholders, Governance, Risk and Resource Management on a scale of 1-5 [6]. The �P3� stands for the three constituents � project, program and portfolio � the model is intended to be flexible enough to assess each constituent.To ensure that an organisation gets the most benefit out of an assessment, consider two factors: The type of PMO implemented (what was the initial charter / directive); and The type of assessment model used � to ensure the right goals or criteria are measured. Gartner PPM (Project Portfolio Management): The Gartner PPM (Project Portfolio Management) tool assesses key areas of: People, PPM Processes, Technology and Financial Management on a scale of 0-5 [2]. Gartner research also suggests that the target PMO maturity level should be matched to the organisational context [2]. PMI OPM3 (Organizational Project Management Maturity Model): The PMI OPM3 tool assesses PMO maturity based on the 9 PMBoK areas (Scope, Integration, Time, Cost, Quality, Human Resources, Communication, Risk, Procurement). The recently released version 2 includes business results and balanced scorecard as additional assessment areas [7]. OGC P3M3 (Office of Government Commerce; Portfolio, Programme and Project Management Maturity Model): The OGC P3M3 tool assesses structural processes of Controls, Benefits, Finance, Stakeholders, Governance, Risk and Resource Management on a scale of 1-5 [6]. The �P3� stands for the three constituents � project, program and portfolio � the model is intended to be flexible enough to assess each constituent.

4. General Themes Performance ranked on a 1-5 scale Performance measurement areas varied between models; common to all was Finance and People Peculiarities: Gartner suggests target maturity levels based on context PMI integrates �business results� as a key area OGC focus on process From Donna Fitzgerald on the Garnter blog network; 25 May 2009: Level 1 � doing something Level 2 � doing something more Level 3 � okay, now we mean it Level 4 � wow, we know what we�re doing Level 5 � are we having fun yet? (http://blogs.gartner.com/donna_fitzgerald/2009/05/25/a-new-perspective-on-maturity-models/) From Donna Fitzgerald on the Garnter blog network; 25 May 2009: Level 1 � doing something Level 2 � doing something more Level 3 � okay, now we mean it Level 4 � wow, we know what we�re doing Level 5 � are we having fun yet? (http://blogs.gartner.com/donna_fitzgerald/2009/05/25/a-new-perspective-on-maturity-models/)

5. The Black Hole The Black Hole ��a region of space in which the gravitational field is so powerful that nothing, including light, can escape its pull." Benefits? Sharing experiences Improving individual capabilities Does not impose practices or standards Level 1 � doing something (Fitzgerald, 2009) �A community of practice emphasizes two things � sharing experiences and improving individual capabilities. A community of practice never imposes practices or sets requirements � it enables individuals to discuss their issues on projects and jointly come to agreement on ways that some of the common problems can be solved.� (Fitzgerald, 2008) [2] Suggested assessment models: Gartner PPM model awards a rating from 0-5, where level 0 is a �community of practice� or �off org� chart organisation [2]. Research suggests that a community of practice can lay the foundation for PMOs to follow, by emphasising two things � sharing experiences and improving individual capabilities [2]. Level 1 � doing something (Fitzgerald, 2009) �A community of practice emphasizes two things � sharing experiences and improving individual capabilities. A community of practice never imposes practices or sets requirements � it enables individuals to discuss their issues on projects and jointly come to agreement on ways that some of the common problems can be solved.� (Fitzgerald, 2008) [2] Suggested assessment models: Gartner PPM model awards a rating from 0-5, where level 0 is a �community of practice� or �off org� chart organisation [2]. Research suggests that a community of practice can lay the foundation for PMOs to follow, by emphasising two things � sharing experiences and improving individual capabilities [2].

6. The Post Box The Post Box Collates reports from individual project managers without intelligent interpretation Benefits? Alignment of project, program and portfolio messages Repeatable processes Frame boundaries and tolerance for project baseline variations Level 2 � doing something more (Fitzgerald, 2009) At it�s best � aligning reporting at project, program and portfolio levels Suggested assessment models: OGC P3M3 model specifically addresses �controls� as a key area of assessment � and the P3M3 model can be used to measure effectiveness at the �project� �program� or �portfolio� level. Tailoring measures at each of the constituent levels could help to ensure a robust and clearly traceable reporting link between projects, programs and portfolios. Level 2 � doing something more (Fitzgerald, 2009) At it�s best � aligning reporting at project, program and portfolio levels Suggested assessment models: OGC P3M3 model specifically addresses �controls� as a key area of assessment � and the P3M3 model can be used to measure effectiveness at the �project� �program� or �portfolio� level. Tailoring measures at each of the constituent levels could help to ensure a robust and clearly traceable reporting link between projects, programs and portfolios.

7. The Policeman Good cop, bad cop. A potentially heavy-handed attempt to implement structure Managing by control not context Benefits? Implement boundaries and tolerance for project baseline variations Standardised process for consistency and proactive management Level 3 � okay, now we mean it (Fitzgerald, 2009) At this stage, we can start to consider the �best in class� � we�re starting to talk more about different personalities that might be best for different organisational contexts: i.e. a �best in class� policeman certainly adds different value to a �worst in class� � the spectrum of competency can be measured, if we happen to decide that what this organisation really needs is a cop. Netflix: Managing by context vs. managing by control High performance team culture, where innovation and creativity is necessary to survive: Part of their plan is about increasing employee freedom (rather than trying to control employees as the company grows and complexity increases) Their strategy? Manage by context not control � �If you want to build a ship, don�t drum up the people to gather wood, divide the work, and give orderes. Instead, teach them to yearn for the vast and endless sea.� (Antoine De Saint-Exupery, Author of The Little Prince). �Managers: When one of your talented people does something dumb, don�t blame them. Instead, ask yourself what context you failed to set.� - Netflix (http://www.techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/) Suggested assessment models: OGC P3M3 model specifically addresses �controls� as a key area of assessment � and the P3M3 model can be used to measure effectiveness at the �project� �program� or �portfolio� level. Additionally, �benefits� is another key area which could be a useful area to investigate in justifying the need for rigorous process. Level 3 � okay, now we mean it (Fitzgerald, 2009) At this stage, we can start to consider the �best in class� � we�re starting to talk more about different personalities that might be best for different organisational contexts: i.e. a �best in class� policeman certainly adds different value to a �worst in class� � the spectrum of competency can be measured, if we happen to decide that what this organisation really needs is a cop. Netflix: Managing by context vs. managing by control High performance team culture, where innovation and creativity is necessary to survive: Part of their plan is about increasing employee freedom (rather than trying to control employees as the company grows and complexity increases) Their strategy? Manage by context not control � �If you want to build a ship, don�t drum up the people to gather wood, divide the work, and give orderes. Instead, teach them to yearn for the vast and endless sea.� (Antoine De Saint-Exupery, Author of The Little Prince). �Managers: When one of your talented people does something dumb, don�t blame them. Instead, ask yourself what context you failed to set.� - Netflix (http://www.techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/) Suggested assessment models: OGC P3M3 model specifically addresses �controls� as a key area of assessment � and the P3M3 model can be used to measure effectiveness at the �project� �program� or �portfolio� level. Additionally, �benefits� is another key area which could be a useful area to investigate in justifying the need for rigorous process.

8. The Mentor What is it? PMO is charged with implementing �best practice� standards or �training and mentoring� to lift capability What is it good for? Network of leaders Centre of excellence Capacity planning enabled Level 4 � wow, we know what we�re doing (Fitzgerald, 2009) L4 Taking the lead (internally managed) and the ability to lead without the help of external vendors / consulting firms: �Network of PPM leaders exist companywide in a federated model. Centers of excellence improve workload management. Capacity planning enabled.� (Fitzgerald, 2008) Gartner: PPM Model Network of leaders: Ownership of PM internally, without the reliance on external vendors / consultants; Centre of excellence: Best practice standards Capacity planning: People development, workload management, benefits realisation tracking, workflow as an added toolset Suggested assessment models: Gartner PPM model highlights �People� and �PPM Process� as 2 of the 4 key areas assessed. This division suggests there is room to at least clearly identify, or potentially tailor the PPM assessment to focus on a charter of improving project management capability and training / mentoring of project staff. Level 4 � wow, we know what we�re doing (Fitzgerald, 2009) L4 Taking the lead (internally managed) and the ability to lead without the help of external vendors / consulting firms: �Network of PPM leaders exist companywide in a federated model. Centers of excellence improve workload management. Capacity planning enabled.� (Fitzgerald, 2008) Gartner: PPM Model Network of leaders: Ownership of PM internally, without the reliance on external vendors / consultants; Centre of excellence: Best practice standards Capacity planning: People development, workload management, benefits realisation tracking, workflow as an added toolset Suggested assessment models: Gartner PPM model highlights �People� and �PPM Process� as 2 of the 4 key areas assessed. This division suggests there is room to at least clearly identify, or potentially tailor the PPM assessment to focus on a charter of improving project management capability and training / mentoring of project staff.

9. The Mastermind Strategy Comprehensive PMO aligned with corporate strategy, extended beyond �IT only� with leaders in all areas of the company At it�s best? Understand cause and effect: with the capability for optimisation Full life cycle costing Achieves business results Level 5 � are we having fun yet? (Fitzgerald, 2009) �Does the organization run continuous process improvement with proactive problem and technology management for the portfolio in order to depict performance over time and optimize process?� (P3M3 pdf) Achieving business results as distinct from project results Suggested assessment models: With the recent addition of �business results� and �balanced scorecard� to key areas within OPM3 v2, PMI�s model might attract more strategic implementations because it attempts to take a broader organisational view of alignment with strategy. Alternatively, the OGC focus on �governance� and �benefits� as key management areas could also attract those organisations with a strategic PMO charter. Level 5 � are we having fun yet? (Fitzgerald, 2009) �Does the organization run continuous process improvement with proactive problem and technology management for the portfolio in order to depict performance over time and optimize process?� (P3M3 pdf) Achieving business results as distinct from project results Suggested assessment models: With the recent addition of �business results� and �balanced scorecard� to key areas within OPM3 v2, PMI�s model might attract more strategic implementations because it attempts to take a broader organisational view of alignment with strategy. Alternatively, the OGC focus on �governance� and �benefits� as key management areas could also attract those organisations with a strategic PMO charter.

10. Conclusions Consider the type of PMO you have, as well as where you want to be Measure the right criteria to ensure you can assess �best in class� Gartner suggests target maturity levels based on context PMI integrates �business results� as a key area OGC focus on process optimisation In summary, PMOs are not one size fits all. Not all organisations need to implement the PMO as a �strategist�, although PMO maturity models generally consider this type of implementation to be �best in class� (and therefore attract high maturity scores if implemented successfully). Just as each PMO is quite unique, an individual assessment model should be chosen to ensure that the right criteria are measured and the assessment is meaningful for the organisation. Gartner�s PPM model measures both maturity level and also make suggestions as to what type of PMO might best suit the organisational context � not all organisations need or are ready for a �level 5�. PMI has recently introduced new changes to version 2 of the OPM3 model, aimed to consider broader strategic and business alignment for PMOs. P3M3 provides a model flexible enough to make assessments at project, program and portfolio levels.In summary, PMOs are not one size fits all. Not all organisations need to implement the PMO as a �strategist�, although PMO maturity models generally consider this type of implementation to be �best in class� (and therefore attract high maturity scores if implemented successfully). Just as each PMO is quite unique, an individual assessment model should be chosen to ensure that the right criteria are measured and the assessment is meaningful for the organisation. Gartner�s PPM model measures both maturity level and also make suggestions as to what type of PMO might best suit the organisational context � not all organisations need or are ready for a �level 5�. PMI has recently introduced new changes to version 2 of the OPM3 model, aimed to consider broader strategic and business alignment for PMOs. P3M3 provides a model flexible enough to make assessments at project, program and portfolio levels.

11. Sources The project management office as an organisational innovation (Print) Brian Hobbs, Monique Aubry, and Denis Thuillier (2008) PMOs: One Size Does Not Fit All Donna Fitzgerald (2008) PMOs � Does One Size Fit All? Gary Yorke, C. Dwyer, and M. Greenwood. (2007) Why PMOs don�t work � learning from practical experiences in non-performing Program Management Offices P. Sexton (2007) About P3M3 OGC (2009) OPM3��Second Edition: Understanding the changes and opportunities PMI (2009) Implementing A Project Management Office (PMO) James Waln (2007) References: [1] Hobbs, Brian, Monique Aubry, and Denis Thuillier. "The project management office as an organisational innovation." International Journal of Project Management 26 (2008): 547-55. Print. [2] Fitzgerald, Donna. PMOs: One Size Does Not Fit All. Publication. Gartner, 29 Feb. 2008. Web. June 2009. <http://mediaproducts.gartner.com/reprints/computerassociates/143645.html>. [3] Yorke, Gary, C. Dwyer, and M. Greenwood. "PMOs � Does One Size Fit All?" Proc. of AIPM National Conference, Australia, Hobart. Print. [4] "Black hole." Wikipedia, the free encyclopedia. Web. June 2009. <http://en.wikipedia.org/wiki/Black_hole>. [5] Sexton, P. (2007) Why PMOs don�t work � learning from practical experiences in non-performing Program Management Offices. In: AIPM National Conference, Hobart, October 2007, Hobart, Australia. [6] "About P3M3." Best Management Practice. OGC. Web. June 2009. <http://www.best-management-practice.com/>. [7] OPM3��Second Edition: Understanding the changes and opportunities. Perf. Marvin Hargrove. Organizational Project Management Maturity Model. PMI, Apr. 2009. Web. June 2009 <http://www.pmi.org/Movies/OPM3-Whats_New_Webinar/OPM3_Second_Edition-Understanding_the_Changes_and_Opportunities_Atlanta.html>. Further Reading: Aubry, Monique, Brian Hobbs, and Denis Thuillier. "A new framework for understanding organisational project management through the PMO." International Journal of Project Management 25 (2007): 328-36. Print. Binder, Jean. "Types of PMOs (Models)." Ed. Karen Decker and Don Wilson. PMO SIG Accord 1 (2008): 44-47. Binder, Jean. Global project management: communication, collaboration and management across borders. Gower Ltd., 2007. Print. Bolles, Dennis L., and Darrel G. Hubbard. "Types of PMO Models." PMO SIG Accord 1 (2008): 97-113. Callahan, Kevin, Jeanette Bordelon, Stephen Sawle, Zehavah Mendelsohn, and Nancy Kasti. In: Proceedings of Project Management and Software Quality Professionals: Partners in Achieving Common Goals, Chicago May 2003, Chicago, U.S.A. Crawford, L. (2004) Patterns of Support for Corporate Delivery Capability. In: Proceedings of PMSA Conference, Johannesburg, May 2004, Johannesburg, South Africa: PMISA Fitzgerald, Donna. "A New Perspective On Maturity Models" Blog. Gartner blog network. Gartner, 2009. Web. Sep. 2009. <http://blogs.gartner.com/donna_fitzgerald/2009/05/25/a-new-perspective-on-maturity-models/> Gutches, William H. "The Scope of the PMO." Ed. Iamad Jomaa and Jane Holden. PMO SIG Accord 1 (2008): 78-80. Print. Netflix. "Reference Guide on our Freedom & Responsibility Culture." Address.�Tech Crunch. Aug. 2009. Web. Sept. 2009. <http://www.techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/>. United Kingdom. HM Treasury. Office of Government Commerce. P3O Online Repository. Nov. 2008. Web. June 2009. <http://www.best-management-practice.com/gempdf/P3O_Appendix_D_Version_1_2009.pdf >. Waln, James. "Implementing A Project Management Office (PMO)." Address. Implementing A Project Management Office (PMO).�PMI Tucson. Project Management Institute, 2007. Web. Aug. 2009. <http://www.pmi-tucson.org/Geeklog/public_html/filemgmt_data/files/PMO%20Presentation%20rev.%20102007.ppt#273,14,PMO>References: [1] Hobbs, Brian, Monique Aubry, and Denis Thuillier. "The project management office as an organisational innovation." International Journal of Project Management 26 (2008): 547-55. Print. [2] Fitzgerald, Donna. PMOs: One Size Does Not Fit All. Publication. Gartner, 29 Feb. 2008. Web. June 2009. <http://mediaproducts.gartner.com/reprints/computerassociates/143645.html>. [3] Yorke, Gary, C. Dwyer, and M. Greenwood. "PMOs � Does One Size Fit All?" Proc. of AIPM National Conference, Australia, Hobart. Print. [4] "Black hole." Wikipedia, the free encyclopedia. Web. June 2009. <http://en.wikipedia.org/wiki/Black_hole>. [5] Sexton, P. (2007) Why PMOs don�t work � learning from practical experiences in non-performing Program Management Offices. In: AIPM National Conference, Hobart, October 2007, Hobart, Australia. [6] "About P3M3." Best Management Practice. OGC. Web. June 2009. <http://www.best-management-practice.com/>. [7] OPM3��Second Edition: Understanding the changes and opportunities. Perf. Marvin Hargrove. Organizational Project Management Maturity Model. PMI, Apr. 2009. Web. June 2009 <http://www.pmi.org/Movies/OPM3-Whats_New_Webinar/OPM3_Second_Edition-Understanding_the_Changes_and_Opportunities_Atlanta.html>. Further Reading: Aubry, Monique, Brian Hobbs, and Denis Thuillier. "A new framework for understanding organisational project management through the PMO." International Journal of Project Management 25 (2007): 328-36. Print. Binder, Jean. "Types of PMOs (Models)." Ed. Karen Decker and Don Wilson. PMO SIG Accord 1 (2008): 44-47. Binder, Jean. Global project management: communication, collaboration and management across borders. Gower Ltd., 2007. Print. Bolles, Dennis L., and Darrel G. Hubbard. "Types of PMO Models." PMO SIG Accord 1 (2008): 97-113. Callahan, Kevin, Jeanette Bordelon, Stephen Sawle, Zehavah Mendelsohn, and Nancy Kasti. In: Proceedings of Project Management and Software Quality Professionals: Partners in Achieving Common Goals, Chicago May 2003, Chicago, U.S.A. Crawford, L. (2004) Patterns of Support for Corporate Delivery Capability. In: Proceedings of PMSA Conference, Johannesburg, May 2004, Johannesburg, South Africa: PMISA Fitzgerald, Donna. "A New Perspective On Maturity Models" Blog. Gartner blog network. Gartner, 2009. Web. Sep. 2009. <http://blogs.gartner.com/donna_fitzgerald/2009/05/25/a-new-perspective-on-maturity-models/> Gutches, William H. "The Scope of the PMO." Ed. Iamad Jomaa and Jane Holden. PMO SIG Accord 1 (2008): 78-80. Print. Netflix. "Reference Guide on our Freedom & Responsibility Culture." Address.�Tech Crunch. Aug. 2009. Web. Sept. 2009. <http://www.techcrunch.com/2009/08/05/other-companies-should-have-to-read-this-internal-netflix-presentation/>. United Kingdom. HM Treasury. Office of Government Commerce. P3O Online Repository. Nov. 2008. Web. June 2009. <http://www.best-management-practice.com/gempdf/P3O_Appendix_D_Version_1_2009.pdf >. Waln, James. "Implementing A Project Management Office (PMO)." Address. Implementing A Project Management Office (PMO).�PMI Tucson. Project Management Institute, 2007. Web. Aug. 2009. <http://www.pmi-tucson.org/Geeklog/public_html/filemgmt_data/files/PMO%20Presentation%20rev.%20102007.ppt#273,14,PMO>

12. Contact --�Danelle JonesCouncillor, Victorian Chapter, AIPM Initiative Lead, Women In Project Management (WiPM) danelle.a.jones@gmail.com danelle.id.au http://www.linkedin.com/in/danellej+61 400 119 204+61 3 9024 1484 2115 - 24 Jane Bell LaneMelbourne VIC 3000Australia --�Danelle JonesCouncillor, Victorian Chapter, AIPM Initiative Lead, Women In Project Management (WiPM) danelle.a.jones@gmail.com danelle.id.au http://www.linkedin.com/in/danellej+61 400 119 204+61 3 9024 1484 2115 - 24 Jane Bell LaneMelbourne VIC 3000Australia