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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. 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

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  1. PC274 Fireside Chat on Best Practices for the PMO as a Service Model Konstantin Popov IT Program Manager Chevron Ken Prush Senior Consultant Pcubed

  2. 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

  3. 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

  4. 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

  5. Two Truths…

  6. Truth #1: (Plan – Governance) + Time = Variance We understand this when managing projects, but forget this when managing our project management!

  7. 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)!

  8. Truth #2: America may run on Dunkin’… …but Project Organizations run on Data (They both drink a lot of coffee, though!)

  9. 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!

  10. 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.

  11. 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

  12. 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

  13. Designing a PMO

  14. 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

  15. 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

  16. 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

  17. Lessons Learned, and Learning

  18. Question #1 What’s a typical approach to defining a PMO? How do I decide which functions my PMO needs?

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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

  24. 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

  25. Questions

  26. 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

  27. MyPCfill out evaluations & win prizes! Fill out session evaluations by logging into MyPC on your laptop or mobile device. Evaluation prizes daily! Claim your prize at the Registration Desk on Level 1. After the event, over 100 hours of resources; including all of the PPT decks and session videos will be available. www.msprojectconference.com

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