the pmo maturity model - westbrookstevens pmo maturity model • for pmos: –the trick is to define...
TRANSCRIPT
The PMO Maturity ModelOne Size Does Not Fit All
PMI PMO LIG
July 24, 2008
Facilitators
Anthony Boles
Intelligent Ventures Inc.
Managing Director
Thene Sheehy
TRC InfoTek
VP – IT Services & Solutions
Presentation Outline
• Key Takeaways
• Evolution of the PMO
• The PMO Maturity Model
• Considerations for a PMO and your Organization
• Wrap-up
Key Takeaways
• An overview of the evolution of Project, Program and
Portfolio Management concepts
• An understanding of the fundamental components of The
PMO Maturity Model
• Points to consider when trying to understand how a PMO
may fit into your organization
Evolution of the PMO
• 1980s – brought about the notion that everything was a
project.
• 1990s – organizations were becoming “projectized” – but
doing them with varied success
• Over the last decade, 2 dominant trends have emerged:– Project failure rates have declined, but they are still significant
– Many of the PMOs setup to improve project success have a very high rate of failure
themselves
The PMO Maturity Model
• For PMOs:
– The trick is to define a management structure that is truly aligned
with an organization’s capabilities and tolerance for process
– All program and portfolio management leaders must be focused on
360 degree leadership – meaning, a PMO leader needs to manage
downward, upward and sideways
– Both the leader and the office must be regarded as valuable across
the organization
• Convergence and Reconciliation
– The concepts of Project Portfolio Management and Program
Management Office are converging
– Previous models (Repository/Coach/Manager) vs. the Maturity
Model
The PMO Maturity Model
Level 0
Level 1
Level 2
Level 3
Level 4
Level 5
Source: Gartner (February 2008)
The PMO Maturity Model
Level 0 – Non-existent (Community of Practice)
• People– Staff assigned to projects on a first-available basis
– Activity limited to interests and actions of individual managers
• Process– No formal processes beyond high-level budgeting (except as provided by outside
vendors)
• Technology– Intermittent use of point tools on a “by project” basis
• Financial Mgmt– Project performed without formal cost, benefit or risk valuation
The PMO Maturity Model
Level 1 – Initial (Project Support Office)
• People– Priority projects get appropriate staffing – everything else is “first available”
– Nascent PPM leader role – primarily still an individual manager focus
• Process– All internal processes centered on management critical projects
– Vendors are often responsible for large initiatives
• Technology– Project scheduling tools and milestone reporting adopted
• Financial Mgmt– Projects have budgetary estimates – actual costs can be approximated and some
benefit statements are produced
The PMO Maturity Model
Level 2 – Developing
• People– PMO(s) established
– Programs increasingly managed in-
house
– Project staffing/resource capacity
issues begin to be addressed
• Process– Project processes in place
– PMO(s) organized
– Emerging understanding of
program and portfolio management
– Risks now reviewed
• Technology– Project collaboration and team
workspaces supported
• Financial Mgmt– Project cost and labor hours
captured
– Estimate of benefits made for each
project
(Project Management Office)
The PMO Maturity Model
Level 3 – Defined
• People– PPM leader role formalized
– Increasing specialization trend
beginning
– Shared resource pool formalizing
• Process– PPM function established
– Projects are approved on a portfolio
basis
– Enterprise architecture functions
involved
• Technology– Portfolio tool is in place
– Reporting dashboards
• Financial Mgmt– Costs are captured and forecast
– Benefits are identified and related
to the strategy of the portfolio
(Portfolio Office / CoEs /, BPCs)
The PMO Maturity Model
Level 4 – Managed
• People– Network of PPM leaders exist
company-wide in a federated model
– Centers of excellence improve
workload management
– Capacity planning enabled
• Process– Similar projects managed as
programs
– Portfolios are actively maintained
• Technology– Workflow added to toolset
– Business users adopt tools as useful
• Financial Mgmt– Portfolio is modeled and
appropriately optimized – factoring
in risk
– Benefit realization is tracked
(Federated PMO / Program Offices)
The PMO Maturity Model
Level 5 – Optimized
• People– PPM leaders exist in all areas of the
company
– Accepted specialization (portfolio,
program and strategy) supports
maximum performance
• Process– Portfolio extends beyond IT
– Comprehensive PMO
– Pipeline managed in real-time
• Technology– Single, integrated system supports
reporting, collaboration and
analysis
• Financial Mgmt– Programs have their own financial
resources
– Full life cycle costs and benefits are
available
(Enterprise Program Mgmt Office)
Considerations for a PMO and your
Organization
• The structure of the PMO needs to be aligned to the maturity of the
organization and to the volatility or stability of the market conditions
surrounding the organization.
• Begin with a Community of Practice (CoP)
• Consider adding a Project Support Organization (PSO) as soon as the
organization is ready for formal structure.
• Consider adding a separate Project Portfolio Office (PPO) in addition
to the PSO. Organizations that separate the “doing the right thing”
from “doing things right” tend to be more successful in the long term.
• Program and Portfolio Management (PPM) takes a different
personality and a different set of analytical skills than project
management – look to your business analysts as future project
portfolio managers.
Wrap-up
Questions / Comments / Thoughts....
Wrap-up
Next PMO LIG Meeting
• Presentation posted on www.westbrookstevens.com
• October 21st or 23rd
• Send topics or volunteer to present:
– Thene [email protected]
– Anthony [email protected]
Wrap-up
Thank you!!