“PMO in a Box” - A description of the generic PMO

“PMO in a Box” - A description of the generic PMO

The purpose of this document It contains generic material which describes the benefits and purpose of the PMO function, together with a suggested diagnostic to assist with the design of future PMOs. These principles have been applied in the design of a number of PMO’s established in BTGS. And beyond and aligns with the PMO Governace Model associated with OGC (Managing Successful Programmes) Methodology The concept of a PMO is not clearly understood in many situations and is often perceived as a Programme support office, for the purpose of providing shared resource for administration functions. It is not recognised as a Critical Management function operating up to Programme Director Level and designed to provide the Governance and Strategy necessary to deliver and control large, complex and critical Programmes of work. 2

Outline • The PMO • Typical PMO components and cases • PMO diagnostic • Typical PMO roles & responsibilities • Common lessons learned 3

Benefits to Executive Management: Comprehensive and consolidated overview of all projects, their objectives, deliverables, activities and resources (staffing and budget) More accurate, timely, concise and consistent information on programme/ project progress. Frees up executive time whilst enhancing ability to make informed decisions. Standardised road-map and progress reporting for easy project tracking, cross-project comparisons and location impact analysis. Comprehensive overview of programme issues, their potential impact on projects, target resolution dates and resolutions. The PMOBenefits to the organisation & executive The PMO is about providing programmes and projects with supervision, guidance and monitoring. It provides a structure for decision making, the necessary controls and business management. Programme success is ultimately the responsibility and accountability of this governance body. Communication of PMO benefits is critical to acceptance of this function. These messages need to be tailored in order to focus on answering “what’s in it for me?” for each stakeholder group. Benefits to the Organisation as a Whole: • Improved project alignment with corporate strategy. • Increased awareness of all projects being planned or underway. • Better understanding of the linkages and dependencies between projects. • Improved communication within and between project teams. • Improved scheduling of projects, activities and resources. • Strengthening of project management skills within the organisation. • Better implementation of changes in the business. 4

Benefits to Project Team Members: Increased awareness of the structure, progress, successes and challenges of the whole programme portfolio – the Big Picture. A single source repository for all key programme information, methodology and specialised knowledge. Increased project management training and rigor. More effective resource allocation across the portfolio providing opportunity to diversify project experience and skills. Improved project management across the organisation. Greater chance of being associated with a successful project as overall success rate for change implementation increases. The PMOBenefits to Program/Project Managers & Team Members Benefits to Program/Project Managers: • Frequent and consistent communication of programme progress, issues, successes and learnings. • Improved communication among and between programmes, thereby improving scheduling of projects, activities and resources. • Increased project team and Steering Committee awareness of: • issues and their potential impact on a project(s). • linkages and dependencies between programmes with respect to: staffing, budget, timelines, milestones and deliverables. • Resource to facilitate issue resolution. • Support for programme/project management skill development and transfer. 5

The PMOPurpose The purpose of the programme Office is… • TO – Develop, deploy and proactively use Project, programme and Enterprise management tools and processes to provide direction, alignment and integration of the portfolio of initiatives. • IN SUCH A WAY THAT– The impact of, and interdependencies between different initiatives can be understood and interpreted, to make optimal use of scarce financial and human resources. • SO THAT – resources and projects can be planned, prioritised, and delivered to be fully supportive of the vision and corporate goals 6

The PMOWhat it is/is not The PMO is... • A small group of dedicated resources organised to provide consistent: • Alignment with strategic objectives • Approval of new initiatives • Performance reporting including benefit realisation, resource deployment, etc… • Responsible for monitoring / overview: • All linkages, dependencies, enablers • Risk identification and tracking • Resource utilisation • Communications • Coordination • Responsible for monitoring successful execution • On time • On budget • High quality predictable results • With business benefits realized • Ensure “ownership” of benefit realisation is identified The PMO is not... • A centralised project control structure which adds bureaucracy and impedes progress. • An approval process for non-strategic initiatives • A redundant project management effort focusing on day-to-day business activities • Overview only • Ultimately responsible for benefit realisation • Business Leaders must own the benefits 7

Typical PMO components & casePMOs vary widely with regards to their depth and breadth of activitiesThe following functions are generally contained within the PMO and are managed along a continuum Governance & organisational mgmt Work planning and scheduling Scope mgmt and change control Risk management Issue management Quality management Communications & mgmt reporting Cost and financial management Business results Typical components include: Decentralized Design Defined and Centralized Decentralized- Low Degree of Structure Centralized - High Degree of Structure Loosely Defined and Controlled High Degree of Control Proactive Reactive Defined Informal Standardized and Monitored Decentralized Informal and Infrequent Structured, planned, and monitored Decentralized Centralized Defined Case - High Degree of Tracking Informal Case - Minimal Tracking 9

The PMO Diagnostic • A programme wide review has been carried out using the DART tool, generated jointly by BT & Deloitte. This provides an overall programme health check. In addition, the following diagnostic can be used to focus on the remit of the PMO. • This diagnostic defines the activities typically owned by the PMO, and provides key questions that will help identify the needs of the organisation, and position them along the continuum. Each activity consists of the following: • Activity definition (sets the boundaries) • Key questions that will help identify client needs and position them along the continuum. • Questions take into account: • Process • Tools • Timing (Frequency) • Culture • Resources • Core criteria for each end of the continuum to quickly identify the critical dimensions • Defined typical traits for each of the 3 ranges of the continuum SAMPLE 11

Key Questions • Does the programme have a governance model with clearly defined roles and responsibilities, and decision making structure? • Is the PMO considered an administrative function or does it provide value-added services? • Will the organisation support compliance with PMO standards (e.g. processes and tools) • Does the governance structure include representatives from all functional organisations involved in the programme? • Are project teams cross-integrated? (e.g.Business, IT and/or vendor) Governance and Organisational Management (including Roles and Responsibilities) Governance and Organisational Management activities involves the design and execution of how the programme will be directed, coordinated, and monitored. This can include governance and PMO structure, oversight meetings and agenda definition, and role and responsibility development. Defined and Centralised Decentralised Design • programme structure mirrors existing organisational structure • programme Office lead is not included in key leadership meetings/ decision-making • programme Office viewed as administrative or has narrow scope • Teams are aligned along functional silos • Defined programme Office structure, but not operating at executive leadership level • programme Office considered primarily a reporting / tracking / coordinating function • Defined processes and tools for some typical programme management functions exist but compliance not required or enforced • Defined programme Organisation structure and decision-making hierarchy • programme Office lead considered a peer by other programme leaders and included in key leadership meetings • Content-rich programme Office, providing services to functional groups such as Integrated Work Planning, programme Scope, Issue and Risk Management • Cross-functional teams 12

Key Questions • Is there a standard WBS tool currently in use or planned for? • Do you currently employ any guidelines on typical WBS activities, deliverables and/or milestone definition, etc? Are they followed? • How much detail is typically included in plans (resources, linkages, etc)? • Who manages project plans? • Are plans typically updated regularly? • How are plans used? Work Planning and Scheduling Work Planning and Scheduling set the standards and details of how the programme will be executed. Includes the processes and tools required to operationalise and monitor the programme work content. It may include other planning deliverables such as Roadmaps (visual displays of how the programme is orchestrated). Decentralised Process — Low Degree of Structure — Centralized Process High Degree of Structure • WBS structure, process and tool are defined by PMO • Programme milestones are well defined and integrated into project plans for easy rollup and overall maintenance • Plan is reviewed and updated regularly • Plan is robust: includes resources, linkages, dependencies, etc • High degree of compliance with WBS structure, tool and maintenance processes • Programme WBS used to provide progress reports to leadership • programme plan is a direct consolidation of project plans • Plans are designed and built at project level • Plans are managed by project leads • Organisation does not value cross-functional work planning • High-level programme plan; some linkages between programme plan and project plans • Low degree of collaboration between programme Office and projects in developing and maintaining programme workplan • programme plan is updated infrequently as need arises • Less value placed on programme Plan; viewed as an administrative task 13

Key Questions • Has the scope been defined? Approved? • Who typically owns the scope? • How is scope managed? • How are changes made to baselined documents? • Does the culture support compliance with defined scope control guidelines? • How are changes to scope communicated across the programme? Scope Management and Change Control Scope Management includes the definition and management of what is and is not included in the programme work content. Scope should also be closely linked with Work and Resource Planning as both will be affected by any changes to work efforts. Change control is the process and rules by which changes to scope can be implemented. High Degree of Control Loosely Defined & Controlled • programme scope is defined in business case and/or a baselined document • Centralised, formal scope management process and tool • Tight linkages to resource planning and work planning • Baselined documents are updated regularly through change control • Dedicated programme scope management resources to manage administration, compliance and performance of process and tool • Widely accessible tool and trained end-users • Overall programme scope is loosely defined • Scope is not actively managed by the programme Office • Projects can change their scope without a formal programme Office process • Scope is defined at beginning of programme • Informal and decentralsed scope management process • programme Office reliant on projects for scope updates • Little or infrequent updating of baselined documents • Tool used primarily by programme Office 14

Key Questions • Is risk an element of the business case? • Is it a driver of the programme or a sub-project? • Does the culture support proactive risk identification? • How do you typically identify, manage and plan for risks? • Who is responsible for mitigating risks? • What is the level of executive sponsorship of this programme? Risk Management Risk Management is the process of identifying, analysing and responding to potential problems or events that may threaten the success of the programme. A risk is an unrealised event. Once realised, it becomes an issue. Proactive Reactive • No defined risk management processes or tools • Little effort on proactive risk identification and management • Risks are managed only when they are realized and become issues • Risk identification and management supported as time and resources permit • Standardized but not widely used process and tool • No defined accountability for identified risks • Proactive Risk Management is supported • Defined process and tool for risk identification and management • Risk mitigation plans are developed • Periodic and continuous risk review cycle 15

Issue Management Key Questions Issue Management ensures that programme issues are identified, evaluated, resolved and documented in an timely manner. The process should include thresholds and governance guidelines. Resolutions should be communicated across the programme, There is a close link to Scope Management, as a resolution could affectprogramme content. • How are issues typically handled now? • Do you have a defined process and/ or tool? • How are resolutions to issues typically generated? Approved? Communicated? • Is information typically shared across functional or organisational boundaries? If so, how? • Are issues and their resolutions documented? Who maintains them? How? • Are decisions frequently revisited in this organisation? Defined Informal • Informal issue management process; no standard process for all of programme components • Each issue is resolved by project team with project level approvals • Issues and resolutions are documented at project level • Resolutions are not communicated across organisational boundaries • Issue management process defined but not always followed • Several processes and tools exist throughout programme • programme Office reliant on projects for information on programme issues and resolutions • Little or infrequent updating of baselined documents • Tool used primarily by programme Office • Centralised, formal issue management process and tool • Issue resolutions are communicated across organisational boundaries • Tight linkages to work and resource planning, and scope management • Baselined documents are updated regularly upon issue resolutions • Dedicated programme issue management resources to manage administration, compliance and performance of process and tool • Widely accessible tool and trained end users 16

Key Questions • How is quality typically measured or monitored in the organisation? • Who is typically accountable for managing the quality programme? • Does the organisation typically support the development and execution of quality standards? Quality Management Quality Management consists of the development of standards which will be used to evaluate and monitor the programme performance. Standardised and Monitored Decentralised • Quality levels are established by the project leads • Quality is managed at the project level • Various quality standards exist across the programme • Limited quality review by others external to the programme • Quality standards and measures are defined by the programme Office • No formalised review cycle and compliance is not enforced • Varying degrees of deliverable structures and templates • Some external quality reviews • Quality standards and measures are defined by the programme Office • High degree of compliance with defined standards • programme deliverables, templates and documents ‘look and feel’ similar • Defined expectations for deliverables passing between projects • Quality evaluated by combination of internal and external reviewers 17

Key Questions • Are programme participants, sponsors, leadership and end users well informed of programme status and progress? • Are target audiences and communication vehicles clearly defined? • Are two-way communications supported? • Are management reporting requirements clearly defined? • Does management reporting enable efficient and effective decision making? Communications and Management Reporting (including Document Management) Communications and Management Reporting provide the timely and appropriate collection and dissemination of programme information, status, issues, etc. This includes internal and external constituents, as well as team level and executive level. Structured, planned, and monitored Informal & Infrequent • Formal programme communications are infrequent • Communication levels and content determined by each project • Two-way communication vehicles do not exist • Little standardised programme management reporting; projects provide information as needed • Varied levels of communications across the programme • Information sharing occurs informally across organization or functional boundaries • Two way communications are available but not widely used • Management reporting occurs in varying forms across the programme • programme participants, sponsors, leadership and end users are well informed of programme status, impact, timetable and recent decisions • Target audiences and vehicles are clearly defined • Two way communications are widely used • Management reporting requirements are clearly defined • Management reporting is critical input to decision making 18

Key Questions • How are programme budgets typically managed? • Who is typically accountable for managing programme budget ? • Are there standardised processes and tools for programme financial management? • What are the expectations of programme leadership for: • reporting • requests for additional funds or transfer of funds • impact analysis based on changes to budget, scheduling, resources, etc. Cost & Financial Management Cost and Financial Management ensures that the programme is completed within the approved budget through cost estimating and cost control processes. There is also a tight linkage with planning processes given changes in schedule and resources will affect overall programme budget. Decentralised Centralised • Budget is determined and managed outside the programme Office • No input from programme Office to budget maintenance or updates • Impact analysis due to programme changes completed and reported at project level • programme office manages programme budget with varying processes and tools as received from projects • programme office supplies information to programme leadership on budgetary impacts including changes to scope, schedule, resources, etc. • programme office defines process and tool for managing programme budget including changes resulting from: • schedule or resource changes • business case change • change requests or scope changes • capital expenditures, etc. • programme office is responsible for monitoring programme budget and providing periodic reports to programme leadership 19

Key Questions • Is a business case required for all change initiatives? • Has a business case been developed for this programme? Approved? • Who typically managed the business case? How? • Who is responsible for benefits tracking? • Who is accountable for benefits realization? Business Results Business Results activities ensures that proposed programme benefits are identified, captured, and tracked throughout the programme lifecycle. This often includes the development and maintenance of the programme business case. Defined Business Value - High Degree of Tracking Informal Case - Minimal Tracking • Business case and scope are loosely defined OR not defined • Benefits are typically not tracked or are captured outside the programme office • Business case is loosely defined and may or may not be formally approved • Infrequent updating of business case and/or baselined documents • Limited benefits tracking • Business case has been developed and approved • Regular meetings to review and update business case as necessary • High value placed on realizing planned value/benefits defined in business case • programme office resources dedicated to business case development and management • programme leader is responsible for benefits realization 20

Typical PMO roles & responsibilities Programme Office Manager • Overall responsibility for developing programme portfolio structure and view • Day to day programme office management • Reports programme progress/issues to Executives • Proactive issue identification and resolution • Facilitates cross-project alignment and communication Planning Manager • Develop and maintain programme road-map and master deliverable schedule • Performs impact analysis of change requests in conjunction with subject matter experts • Facilitate identification of interdependencies and provides change impact analysis • Develops alternatives and recommended corrective actions • Serves as a consulting resource for projects Change Control Specialist • Maintain central record of scope of work by project • Develop & maintain change management processes • Manage & control change requests • Presents recommendations to Project Board for approval Risk Manager • Create and maintain risk identification & management processes and tools • Manage administration, compliance, and performance of processes and tools • Communicates issue status and resolution • Facilitates mitigation & resolution of risks/ issues escalated from initiatives • Performs regular risk reviews Quality Assurance Manager • Ensure QA tools and methodologies are established in the function • Assist project teams with the creation of Quality plans • Audit of Quality procedures • Manage ISO certification 22

Typical PMO roles & responsibilities Communications & Reporting Manager • Define communication plan • Define (where necessary) reporting structure & timetable • Produce regular reports to stakeholders (in conjunction with subject matter experts • Respond to ad hoc information requests as necessary Need to include document control and Config Management Financial Analyst • Develop (jointly with project sponsor) business cases for proposed projects • Ensure baseline assumptions are agreed and consistently applied across projects • Agree & track spend against budgets by project • Calculate benefits achieved by completed project, and reconcile to business case Resourcing Manager • Collate resource requests from projects • Own the programme resource plan • Liaison with the business to secure requested resources (including budgeting) • Track actual vs budgeted resource applied, • Ensure resource costs & expenses are tracked and input into relevant project costing models 23

Common lessons learned from PMO Implementations The following are key to the success of the project: • Common vision among Segment and Function teams concerning project goals • Senior executive leadership initiates change and participates through dispute resolution process • A sense of inevitability of change and accountability to a fixed deadline • Proactive project management which defines goals, milestones and timelines and identifies/resolves impediments to success • Interdependencies monitored between tasks and project teams • Common reporting among and between project teams, and between project teams and Senior Management • Structured and effective communications for all stakeholders 24

“PMO in a Box” - A description of the generic PMO