Leading Successful PMOs Handout

Leading Successful PMOs
1 www.thelazyprojectmanager.com

Peter Taylor

The purpose of the PMO
The Project Management Office (PMO) in a business or professional enterprise is the
department or group that defines and maintains the standards of process, generally
related to project management, within the organization.
The PMO strives to introduce economies of repetition in the execution of projects.
The PMO aims to reduce project risk through common practice and quality
assurance.
The PMO links business strategy to project based execution of that strategy.

In a recent survey The State of the PMO 2010
1
research showed that 84% of
companies now have a PMO (Project Management Office) in some form to support
their project based activity.
According to Gartner Industry Research, building a Project Management Office (PMO)
is a timely competitive tactic - Further, they believe that "organizations, who establish
standards for project management, including a PMO with suitable governance, will
experience half the major project cost overruns, delays, and cancellations of those that
fail to do so".

1
PM Solutions Research. (2010) The State of the PMO 2010. Research report. Glen Mills, PA: PM
Solutions www.pmsolutions.com


What is a PMO?
Project Management is all about doing something (a project) in the right way and the
right way is all about method and discipline and quality and control.
Program Management is all about doing those things (the projects) in the right
sequence or order.
Portfolio Management is about doing the right things.
Which leaves the PMO; and which you can think of as doing all the above but with the
right team (the right things, in the right way, in the right order).
Are all PMOs the same?
A PMO can typically be one of six types from an organizational perspective:
A Departmental PMO
A specialpurpose PMO
An Outreaching (Supplier) PMO
An External (Customer)PMO
And a model of an Enterprise PMO (internal or external)
There is one view that there are only three PMO types, enterprise, departmental and
special-purpose but I believe that what is often forgotten are the organisations that
reach outside with their PMOs to external customers to support project managers
working alongside and managing customer led projects. If you are a service based
company you will certainly recognise this flavour of the PMO. In addition there is the
work that such PMOs can get involved in through advising and supporting customer
centred PMOs offering governance, guidance and resources.
So I believe that there are in fact six types that need to be understood or at least
appreciated.
A way of looking at this is to consider Internal PMOs those PMOs that oversee
projects that are sanctioned within an organization for self-improvement or compliance
reasons - as one category.
Then External PMOs those PMOs that exist to ensure that an organisations customer
projects deliver the return on investment expected as a second category.
A third category can be the Special purpose PMOs created for specific situations or
needs.


Against these there is the scale of the PMO coverage from departmental or business
unit level through to enterprise level.
Internal PMOs
Lets begin with perhaps the most common type of PMO; the internal to an
organization PMO that is focused on projects primarily within that organization, for self-
improvement or compliance purposes.
And the most common variety will be the departmental PMO.
Departmental PMOs: Department based PMOs might be just a small group that
manages very specific projects within their own landscape and with their own
resources. Any projects that require resources outside this department may have
difficulties securing and maintaining such resources. Moving up to the
organizational level the bandwidth of resources and scope of projects is greater
but the limitations may still be encountered.
External PMOs
Now lets consider those PMOs that are not internal to an organization as such but that
focus on the outside customers of many service companies for example.



Here we can describe the outreaching PMO.
Outreaching (Supplier) PMO: Here the PMOs role is to oversee project
methodology and practice and standards for a community of project managers
dealing with projects inside customer organizations deploying solutions
developed by their own company as a supplier to these external customers.
External (Customer) PMO: As an extension of the service that outreaching PMOs
may offer then they may also offer guidance and governance to these external
customers on setting up and running their own PMOs.
Now it is quite possible that an external PMO can also undertake internal project
oversight and management, and equally that an internal PMO might undertake the
occasional external or customer focused project activity. The internal and external tags
indicate the primary focus of the project work.
Enterprise PMOs
For both the internal and the external PMOs there can be large benefits in scaling up to
an enterprise level.
Enterprise Internal PMO: The next step for a PMO is for it to move up to the
corporate level. This allows the PMO to gain a strategic position within the
organization and to ensure that projects proceed based on their strategic
alignment to the key business objectives of that organization. Such am
enterprise PMO based is far more likely to gain executive support.
Enterprise external PMO: The next step for an Outreaching PMO is for it to
move up to the corporate level. As in internal PMOs this allows the
Outreaching PMO to gain a strategic position within its own organization
and offers to external customers a consistent project delivery and service
model across the world.
Special Purpose PMOs
And there may be a need in some cases for special PMOs created for a specific and
discrete purpose.
Special- purpose PMO: What about the specialpurpose PMO which may have
been created for a single major project or set of projects, something that was
critical to the business as it underwent a step change in its technology platform
as one example. Here the special-purpose PMO may be departmental or
enterprise focused and may be IT and/or business focused. It will, however, be


created only for a special purpose and will, most likely, cease to exist once that
purpose has been completed.
Operational Mode
So we have explored one dimension of the PMO; the internal or external focus of its
work. Now lets explore the second dimension if you will; that of operating method or
approach.
A PMO can operate in a number of ways:
Supportive
Controlling
Directive
Supportive
The Supportive PMO is all about helping out project managers by providing some level
of support in the form of project expertise, templates, guidelines, best practices (or at
least proven practices), knowledge and project expertise, typically based on personal
experience and/or a network of experienced people throughout the organisation.
It can be seen as a process of bringing together of a project community, where before
there has only been silos of project based activity and a lack of knowledge sharing.
Why use a supporting model?
The requirement is to merely aid the existing project activity to raise the levels
of project success
To share project management information across a wider group of project
managers
To empower the project managers and project teams to solve common
problems and be more successful
Controlling
The Controlling PMO is applicable where there is a desire to have a stronger discipline
on all project activities, methods, procedures, documentation etc.
Why use a controlling model?
To ensure that a standard and consistent methodology is used
To ensure that regulatory compliance is adhered to
Where there regular reviews that need to be passed
A project or projects are high or higher risk than normal


A project or projects are a high or higher profile than normal
A new business endeavour
Directive
This Directive PMO goes beyond control and actually takes over the project or projects
by providing the necessary project management experience and resources.
Project managers from the PMO itself are assigned to each new project and reporting
of project progress is direct to the PMO itself.
Why use a directive model?
To guarantee the highest level of consistency of project management
practice across all projects
To reduce costs by centralizing project services
To de-risk project delivery
Blended



There is in fact another way that PMOs can operate and that is a combination of the
three. A mixture of directive, supporting and controlling or perhaps better described as
a blended approach. And the blend can be of any two modes or a combination of
all three.
This is a quite common PMO mechanism being flexible depending upon the actual
and individual need.
All PMOs are not equal
So we have had the dimension of type of PMO and the dimension of operational
mode of PMO now lets add the dimension of maturity of PMO in to the ever
complexing PMO model.
All PMO leaders should try and move their PMO up the Maturity Scale to a level that is
appropriate and relevant to the organization funding and sponsoring that PMO:
Level 1: Ad-hoc Where the project discipline has few, if any, formal definitions and is
performed on an ad-hoc basis. The PMO will typically get involved as trouble shooters
and recovery agents.
Level 2: Defined Where the project discipline is defined, executed and repeatable.
Here the PMO will have set in place standards and methods and will measure adoption
and compliance accordingly.
Level 3: Controlled Where the project discipline targets are aligned with business goals
and defined with greater detail. Results are qualitatively predictable and the PMO will
operate a governance model against this through reporting and deviation correction.
Level 4: Measured - Quantitative goals are clearly set and measured. The PMO will lead
the measurement of project behaviour through KPIs and metrics dealing with
intervention by exception.
Level 5: Optimized - There is a focus on continually improving the discipline
performance. Here the PMO moves beyond the individual project focus and looks more
towards incremental and innovative changes/improvements. To this end the PMO may
well initiate projects for self-improvement.
At level one I would suggest that this is not really a PMO but rather some form of SWAT
team activity, a specialist group of senior, and therefore seen it and done it and lived
to tell the tale project managers who enter projects to solve issues.


The real PMO enters at maturity level 2 Defined.
And is it real?
Just when you thought that it couldnt perhaps get any more complicated I am afraid
to say that yes it definitely can. For example you might wish to consider the concept
of the virtual PMO.
It may be that an organization feels that it does not have the experience or resources
to run a successful PMO, or requires that its own dedicated staff have other priorities, or
it actually wants to benefit from the value of a PMO but in a very short time span that
doesnt fit in with developing and building one internally.
The virtual PMO could be the answer to this problem with a third party supplying the
necessary management and resources and skills and knowledge. The choice then a) is
this the ongoing model for the PMO or b) this is an initial model only for expediency and
as part of the PMOs remit there is an objective to manage the transition of all PMO
activity (and therefore skills and knowledge) inside the company at some point in the
future.
And what does a PMO do?
Finally, and just for completeness sake, lets take a very quick look at what a PMO does
(or could do).
The short answer is anything that the business wants it to do especially if that PMO is
in the period of proving value and the business in question has just made a significant
investment in setting the PMO up.
The longer answer could include:
Project Management community or practice ownership or lead
Methodology
Training and Certification
Resource Management
Project (Program Portfolio) Reporting
Coaching, mentoring, support
Business alignment
Quality Control
Financial follow up and support
Project selection and/or decision making
And many more besides these.


The point here is really that the PMOs range of responsibilities can be simple or
complex.
Add to that the many forms of PMOs that can exist then it could be said that there is no
one answer or solution to the project and business challenges that the PMO could be
the answer for.
The PMO Acid Test
How successful is your own PMO?
Take the 5 question PMO acid test:
Who
Call up your CEO and then count the number of seconds before he recognizes your
name...
If your PMO is really connected to the business, at the right level and with the right
profile, then your CEO will know you and your PMOs work.
You dont have to start with the CEO, you can try this out moving up the organisation
level by level who at two levels above you knows you and the PMOs work? For those
that do say thanks and for those that dont; well tell them about it.
What
What happens when you call up a project manager do you get straight through or do
they adopt an avoidance strategy...
A call from any member of the PMO should be a welcome event and not something to
hide from or fear.
Consider if there are certain individuals or teams or departments that are resistant to
what the PMO is trying to achieve. Ask yourself why this is and plan a charm offensive to
demonstrate that the PMO is their friend.
When
When was the last time that a project manager contacted your PMO asking for some
form of help? ...
If this has not happened in some time then perhaps your PMO is not as accessible and
open as you may wish it to be?


Run a survey or open session to gain some insight in to the reasons for non-contact with
the PMO. It may link to the what question above i.e. fear of the PMO, or it may be just
a lack of awareness. Go out of your way to help key people, regardless of if it isnt really
in your PMO remit by winning influential supporters the word will spread about the
PMO being a go to group.
Where
Do people ask many times over where they should go for project information or project
help...
The PMO should be the automatic first call for anything project related when project
managers or others need some guidance, make sure yours is easy to access and quick
to respond.
Market what the PMO does, create a menu of service items that the PMO can deliver
off the shelf and advertise this tirelessly.
Why
Do people ask why they should use the PMO and do they know what your PMO
does...
You should have marketed the value of your PMO throughout the organization and
people should easily access a service menu or what the PMO can do to help them.
Success stories really help here with proven benefits of PMO involvement, invest your
time in developing some and get people outside the PMO to write them or at least
validate them.
How
And finally question number six the how how can you improve the PMOs work and
profile, its performance, its acceptance and its role in your company?
How can you do this?
You need to think and plan and act.



Peter Tayl or or The Lazy Proj ect Manager can be persuaded to get out of hi s
real l y comfortabl e chai r i f you feel the need to hear the benefi t of hi s
wi sdom at your busi ness event.

Peter is a dynamic and commercially astute professional who has achieved notable
success in Project Management.
His background is in project management across three major business areas over the
last 26 years, MRP/ERP systems with various software houses and culminating in his
current role with Infor, Business Intelligence (BI) with Cognos, and product lifecycle
management (PLM) with Siemens. He has spent the last 7 years leading PMOs and
developing project managers.
He is also an accomplished communicator and leader and is a professional speaker as
well as the author of The Lazy Project Manager Infinite Ideas) and Leading Successful
PMOs (Gower).
More information can be found at www.thelazyprojectmanager.com and through his
free podcasts in iTunes.



LINKS TO BUSINESS AUDIENCES

Sample presentation topics that Peter can deliver, or he can customize one for your
audience:
Abstract The Art of Productive Laziness
'Progress isn't made by early risers. It's made by lazy men trying to find easier ways
to do something.' Robert Heinlein
Learn about the art of productive laziness with The Lazy Project Manager;
understanding what is meant by the productive lazy approach to Projects (and
life) and learn how to apply these lessons to be twice as productive and still
leave the office early.
The session will cover the definition of productive laziness, the science behind the
theory (yes there really is some), and will share some personal learning
experiences that led to the creation of The Lazy Project Manager. In addition
the audience will be led through the three key project stages, one of which the
lazy project manager works very hard in and the second they should be in the
comfortable position of enjoying the comfy chair safe in the knowledge that
the project is well under control. A specific focus will be made on the third area,
project closure, which can be done so much better with very little effort but with
a significant value add for all would be lazy project managers.

Abstract Leading Successful PMOs

What makes a great PMO leader from the business point of view and also for the
project managers who work within the PMO.
Based on his new book and significant research find out how to how to build the
best PMO for your business and keep it relevant to your business.


Abstract Getting Project Management Out of the Box

How many people know what you do? Beyond your fellow project managers
and outside of your close family, who really understands what being a project
manager is all about? Possibly even your close family wave you goodbye each
day without really understanding what you actually do.
Taking project management out of the box will spread the word outside our
community about what a great bunch of people we are and how project
management is a valuable to skill to pretty much everybody.
We should appreciate how we are seen from outside our project world and
understand which of our many skills others would value.
I want to shout to the world about project management and tell all the great
work that I and my fellow project managers do, but is the world listening?
Customised Presentation

Peter is happy to develop a presentation specifically for your event, just contact
him to discuss your requirements. Presentations can be anything from 20 minutes
through 2 hours or indeed full day training courses are also available.



SPEAKING REFERENCES

Peter Taylor Author and Public Speaker at The Lazy Project Manager Ltd
Peter Taylor spoke at the NYC chapter of PMI Professional Development Day
September 24, 2010. His presentation was "The Lazy Project Manager". The meeting
room which held about 100 was "standing room only". His presentation was informative,
educational and entertaining. Peter is a self-effacing presenter poking fun at himself. All
of this is what makes his presentation so good. If you are looking for a terrific presenter
for your event, I highly recommend Peter.

Karen Fox, PMP President, PMI NYC September 25, 2010
Entertaining public speaker and world-famous author of The Lazy Project Manager
Peter has spoken at a number of PMI UK events and has always been very well
received. Highly recommend his book too! All this and a day job...read the book to find
out how!
Chris Field, President, PMI UK Chapter November 12, 2009
Mr. Taylor, an expert on his area of knowledge, kindly supported our IX PMI
International Seminar in Sao Paulo (2009) giving us the best of his experience as a
Project Manager. He wisely spoke for more than 300 people. November 4, 2009
Tnia Belmiro PMI Sao Paulo October 2009
I have had the pleasure to invite Peter as one of the keynote speaker to ProjectZone
2010, Budapest. He is a great motivational speaker with such an experience that many
of us strive to gain. I have rarely seen an audience of such kind so captivated by a
speaker before. Peter with his passionate speech was clearly one of the highlights of
the event and also met my personal objective reminding me what productive
laziness means.
Andrea Major, Conference Producer, Stamford Global May 3, 2010



CONTACT DETAILS

To find out more about Peter Taylor and The Lazy Project Manager or to discuss a
speaking opportunity then please:
Email to: peter.b.taylor@btinternet.com
Phone: +44 (0)2476 540324

And now eLearning is available at www.thelazyprojectmanager.net

Leading Successful PMOs Handout

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