Description
asdaesfc
A FINAL PROJECT REPORT
ON
“PMO: Linking Quality and
Business strategy t t!e
C"#any$s %e&el#"ent'
In t!e #artial (ul)l"ent ( t!e %egree (
Master ( Manage"ent *tudies under t!e +ni&ersity (
Mu",ai
By
Mayures! -a&ankar .Rll N: /01
+nder t!e -uidan2e (
Pr(3 *ini"le
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Certificate
This is to certify that the dissertation submitted in partial fulfillment for the award of
Masters In Management Studies of St Francis Institute of Management & Research,
is a result of the bonafide research work carried out by Mayuresh Gavankar under
my superision and guidance! "o part of this report has been submitted for award of
any other degree, diploma, fellowship or other similar titles or pri#es! The work has
also not been published in any $ournals%Maga#ines!
&ate'
Place'
Faculty guide '
Signature '
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Student’s Declaration
I hereby declare that this report, submitted in partial fulfillment of the re(uirement
for the award for the Masters in Management Studies, to St! Francis Institute of
Management & Research, is my original work and not used anywhere for award of
any degree or diploma or fellowship or for similar titles or pri#es!
I further certify that without any ob$ection or condition I grant the rights to St!
Francis Institute of Management & Research, to publish any part of the pro$ect if
they deem fit in $ournals%Maga#ines and newspapers etc without my permission!
Place ' Mumbai
&ate '
Signature'
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ACKN!"#DG#M#N$
First, I would like to thank the %N&'#(S&$&) * M%M+A& for giing me the opportunity to
make the pro$ect on sub$ect ),M- "inkin. /uality and +usiness strate.y to the
Co01any’s Develo10ent* and e+plore my knowledge!
I would like to thank my college St *rancis &nstitute of Mana.e0ent 2 (esearch for giing a
great opportunity to do work on this pro$ect!
I would like to thank ,rof3 Sini0ole for her aluable adice and support, in spite of her busy
schedule, she was always there to gie feedback and guidelines wheneer needed!
Thank you, Madam for mentoring and kind support for the accomplishment of the pro$ect!
-ereby, I want to take the opportunity to thank all sources, people, guides who helped me to get the
re(uired data!
I also e+press my gratitude to all those who hae not been mentioned in this report work but helped
me in completing this report!
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$A+"# * CN$#N$S
Sr "o .ontents Pg "o
/! 0bstract 1
2! 3b$ecties 4
5! Introduction 6
7! 8hat is PM3 9
:! The ideal PM3 model /;
1!
&ifference between program management and pro$ect management /2
4!
8hat a PM3 does< /5
6! Phases of PM3 /:
9! Full range of PM3 functions /1
/;! =inking Program Management to >usiness Strategy /6
//! PM3 in Intel .orporation /9
/2! S83T 0nalysis of PM3 implementation in Intel .orporation 25
/5! 3ptimi#ing the PM3 27
/7! PM3 measurement approach 21
/:! .hallenges to sustain PM3 24
/1! ?ey success factors 26
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/4! .onclusion 29
/6! >ibliography 5;
Abstract
The role of program management in the modern organization has grown significantly. The
effective management of project portfolios that include numerous short-term projects, large
multi-project programs or both has become a growing challenge for the industry. Many
organizations have identified a need to formalize the practice of program management and
develop centres of coordination and excellence for program management. Organizations have
therefore implemented an organizational entity, the rogram Management Office !MO" to help
to steer projects to completion, while ensuring the overall success. This research defines the
MO concept, describes its structures and functions. The research also discusses the major
processes that are essential to ma#e rogram Management Offices wor# and #ey success
factors to improve the performance of the MO. The research also discusses the measurement
approaches for getting value out of a MO and the challenges to sustain the MO.
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Objectives
• To study the difference between Program management and Project Management
• Study the functions, phases and structure of PMO
• To study how PMO links business strategy
• Considering the above objectives, study PMO in ntel Corporation
• !nderstand optimi"ation of PMO
• dentify measurement approach in PMO
• dentify challenges to sustain PMO
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Introduction
Many organi"ations have struggled to deliver projects on time and within budget# The success of
projects, primarily in the areas of scope, cost, and duration, becomes the focus of assessment of
the effectiveness of the project manager implementing the project, and the efficacy of the
organi"ation in supporting the project manager in pursuit of overall organi"ational objectives#
$hen dealing with such ventures, success can be achieved only through centrali"ed
management and careful coordination of all involved projects, with a specific focus on
communication and risk management# % model for establishing an organi"ation that is
responsible for managing projects has emerged# This organi"ation is known as the Project
Management Office &PMO'
Organi"ations today have recogni"ed the need for a PMO to achieve Program
management oversight, control, and support# The PMO(s role is to help both the project manager
and the organi"ation to not only understand and apply modern Program management practices,
but also to adapt and integrate business interests into the organi"ation(s Program management
efforts#
The PMO is not merely staff to provide support for project activities such as schedule
development, monitoring tasks, and for the use of Program management software# )ather, it is
an essential component for future organi"ational success# The PMO is the organi"ational entity
with full time personnel to provide a focal point for Program management# t provides services
and organi"ational focus in core and supporting areas of Program management by training,
consulting, and mentoring the project*related personnel, by augmenting project teams, and by
serving as a clearing house for best practices#
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What is a PMO?
% Project Management Office is an organi"ation entity that is structured to apply project
management practices to the needs of a particular program# PMOs can help by providing the
structure needed to standardi"e project management practices and facilitate T project portfolio
management, as well as determine methodologies for repeatable processes# The top + reasons
for establishing a PMO are for improving project success rates and implementing standard
practice
The PMO successfully addresses many of the typical challenges inherent in managing
a series of interdependent projects,
- Project schedules not adhered to and implementation dates rarely met
- Senior management not having comprehensive insight into projects( progress and
performance
- Projects( customers not sufficiently involved in product planning, design, and acceptance
- .isparate and inconsistent communication patterns
- nade/uate control and understanding of actual costs
- 0ack of repeatable processes guided by best practices
- !nanticipated risk events and inade/uate or missing contingency plans
- !ne1plained changes in project scope, schedule or budget
- !nacceptable /uality of products and processes
- !nproductive or non*e1istent peer reviews
% PMO establishes an environment that prevents many of the aforementioned issues from
occurring# t also conducts monitoring and controlling activities that correct problem situations
by,
- mplementing consistent project management and product development methodologies
- 2stablishing governance processes and structure for managing changes to the program
- Conducting planning and control activities, including alignment with other strategic
initiatives, integration with the governance process, and integration with resource planning
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- Coordinating delivery of project information through consistent and standardi"ed data
gathering, analysis, and reporting
- Providing continuity and reinforcing commitment among business customers, project
teams, and support organi"ations
- nitiating audit review procedures that identify problem areas and provide processes to
closely monitor risks and issues
- ncreasing project success rates by obtaining e1ecutive buy*in and gaining enterprise*wide
support for program needs and objectives
The ideal PMO model
$T organizations tend to choose between the extremes of two MO models% one empahizing a
support role and one emphazing a supervisory role. $n fact, the two functions are not mutually
exclusive, and the ideal model combines the best of both
3# The Support model: The PMO in a consulting role
%ccording to this model, the PMO functions primarily in a support role instilling project
management skills into the organi"ation# PMO staff are cast in a mentor relationship vis a
vis e1isting project managers &PMs'# They might train PMs in the organi"ation in a
common methodology or process# %nother role for the PMO is to provide the tools,
templates 4 training PMs need to do their work# The PMO might develop software tools
for specific tasks, as well as standard documents such as project charter or project plan
that is uniform across the organi"ation# n addition, the PMO staff can be a backup
source for groups in need of help with project management, particularly in cases where
there is trouble in the PM ranks#
The PMO as a support group really plays a distributive role within the organi"ation and
has little or no control over which projects are funded, and no authority to ensure
projects align with business needs# PMO staff typically cannot compel project managers
to accept their guidance# They cannot force user groups to adopt a common
methodology5 they can only encourage them to do so#
+# The Centralized model: the PMO in a supervisory role
PMO staff are given a supervisory role, with budgetary authority to determine which
projects get funded and which do not# Project managers, instead of being attached to
operational divisions, may be directly on the staff of the PMO and lent out to working
groups on a project specific basis# The PMO may even control who gets assigned to
which projects# This centrali"ed PMO compensates for some of the problems inherent in
a strictly supportive role# The PMO can impose greater discipline on the choice of the
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projects and how they are carried out# !se of standard methodologies, processes,
templates, and tools can be enforced# The PMO can decide when to terminate a project
that isn(t delivering# n short, the PMO plays a strong role in project governance#
Such a strong role enables the PMO to ensure that projects are tied to business goals#
6owever the centrali"ed model only works within a highly structured environment, and
so superimpose it upon a decentrali"ed organi"ation is to invite trouble# Taking away
managers( authority and imposing decisions from above will produce culture clash and
provoke resistance#
7# The Facilitating model: The PMO in a consulting role
The best model is one in which the PMO takes a facilitating role, working to bring
business planners and T together for joint decisions governing project investments# The
PMO might also become a change agent, identifying opportunities for change within the
organi"ation, determining the best approaches, and introducing the changes to the
community# The PMO can communicate new ways of thinking, introduce new tools and
processes, refine evaluative metrics, and work to constantly establish a new baseline of
performance#
The PMO should also play a crucial role in knowledge management &8M', effectively
becoming the organi"ations( memory by keeping records of projects, i#e#, what works
and what doesn(t, the steps through which certain processes must pass, and so on# Too
often, different parts of the organi"ation are unaware of what has been done by others,
and new staff have no knowledge of what has gone before# 2ffective 8M enables that
valuable lessons are retained and passed on to others#
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Program Management versus
Project Management
Program and project management are related but distinct disciplines# t is important for everyone
within the organi"ation to fully understand the distinctions between the two, as well as the
differing roles and responsibilities of program and project managers# n general, the greatest
difference between program and project management is that program management focuses on
achieving business results to create a competitive advantage while project management focuses
on planning and e1ecuting the work re/uired to deliver the end product#n the program
management model, the program manager manages across the multiple functional projects,
while the project manager manages within a single functional project#
Other distinctions between program and project management a r e
Program Management Project Management
Strategically focused Tactically focused
9usiness and technical in nature Technical in nature
%ligned to strategic objectives of business %ligned to goals of the program
%ssures the work effort remains feasible
from a business standpoint
%ssures the work effort generates desired
deliverables on time, within budget and at
re/uired performance levels
Change managed from both a business
and
technical perspective
Change managed from a technical
perspective
)isk spread across the projects and
concerned with probability of business and
technical success
)isk contained within a single project and
concerned with probability of technical
success
Cross*functional at all times May be partially cross*functional
9road range of management and business
skills and e1perience re/uired
Project management and technical skills
re/uired
Program Management vs. Project Management
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What a PMO does?
.uring the life cycle of a project, a PMO can instill project management discipline and align it
with a company:s overall strategic goals
&enerate 'oncept
• Prioriti"e project in terms of an organi"ation:s overall governance, project portfolio
processes
• %ssist project leaders with business case development
• 2nsure the project links to a company:s strategic goals
lan (esources
• %dd project to the project management or portfolio system
• %ssign staff and resources to the project
• 0ay out governance standards, including repeatable project processes, training and
metrics
)aunch roject
• Provide coaching and mentoring to project managers
• 9egin to facilitate ongoing project planning sessions
• 2nsure proper tracking of project data and milestones
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rovide Ongoing roject Management
• 2nsure regular project status reports are available to decision*makers
• Coordinate communications across business units
• Conduct regular /uality assurance reviews
'omplete roject
• 0ead post*implementation reviews
• Capture and record lessons learned
• 2nsure that project data and project team evaluations are recorded and distributed to
decision makers
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Phases of PMO
*. $nitiation
The initiation phase of a project involves an overall description of the task and what it entails# The
project manager needs to first document the purpose of the project, including its objectives for
approval by the relevant body in the business or the stakeholders# ;or the start*up of the project,
the project manager needs to discuss with his superiors the prospective estimates on the budget,
the time period for the project, the re/uired staff and the resources#
+. lanning
The planning stage in a project*management model involves in*depth research to e1pound on the
available information on the project, such as the necessary e/uipment and resources for the
project, including the finances and where to obtain them# t is important for the project manager to
have a team in place to assist her in brainstorming the project and come up with new ideas to
improve on the task or point out unnecessary risks or activities# She then assigns the individual
duties for the project task force#
,. -xecution and 'oordination
The e1ecution phase involves the project manager orchestrating the activities of the actual project
by following the provisions reached at the planning phase# The project manager is in charge of
supervising the workforce, providing employees with the necessary resources and informing them
of the performance of the project during its e1ecution# .uring the course of the project, he reviews
the performance of the project at the current position as per the original plan and may need to
make adjustments in the initial planning for issues such as budget, insufficient resources or
unforeseen risks# The project manager needs to inform the relevant stakeholders and her team on
the necessary adjustments and their effect on the project#
.. /inalization
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This project is finali"ed after completion of all the activities of the project# The project manager
then calls a meeting with his team to review the performance of the project, including the
successes and the failures, and their implications on the final result# 6e should make a final report
for all the relevant stakeholders including his observations concerning the project and any
necessary recommendations for future purposes#
Full Range of PMO Functions
43 C""uni2atins Manage"ent
This function communicates program status, progress, and performance at multiple levels# t also
prepares briefing documents and program dashboards for senior management and other high*
level stakeholders, generates an information base that allows drill down capabilities, and
facilitates communications among project teams involved in the program# n addition, this
function builds general awareness about the projects and their impact on the business
/3 Finan2ial Manage"ent
This function maintains and reports financial performance through objective metrics, ensuring
no cost overruns for the program# t tracks variances against the program budget, ensures that
e1penditure targets
are met, and verifies performance against business objectives# This function collects metrics at
the project level and rolls them up to the program level# ;inally, this function is responsible for
forecasting future
budget re/uirements
53 Resur2e Manage"ent
Procuring, training, onboarding, and managing project staff is a major responsibility of a
PMO# Consolidating resource management at the program level enables program e1ecutives to
optimally deploy staff resources across all projects# The PMO is responsible for overall
capacity planning, including the comple1 logistics of ensuring that the right people are
available at the right time and place# This may include negotiating and managing relationships
with third*party vendors and subcontractors and deploying internal and e1ternal resources# This
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function is also responsible for properly training program staff in program processes, tools, and
applied methodologies#
63 Te2!nlgy Manage"ent
This function implements and maintains the physical, technical, and process infrastructures
used by the program# )esponsibilities include implementing consistent methodologies and
tools, managing facilities and e/uipment, performing capacity planning for the resources
re/uired by the program, managing licensing and other technology agreements, performing
disaster recovery planning, and procuring the necessary e/uipment#
73 Risk Manage"ent
This risk management function is responsible for evaluating the project plans, identifying
program risks, and developing risk management strategies# t works with business areas to
anticipate and understand the changing business environment and associated risks, modifying
project plans and risk response strategies as needed#
03 Quality Manage"ent
This function ensures that the projects within the program meet /uality objectives# These
objectives include adherence to program procedures and standards, as well as the
completeness and /uality of project deliverables# t audits project practices and captures project
/uality and performance metrics#
83 Prgra" Integratin
This core function oversees the integration of the projects that make up the program and
provide a comprehensive approach to issue, change, and acceptance management# This
function has a handle on all the project interconnections and dependencies# t monitors project
progress closely and addresses individual project delays before they affect other projects in the
program# $hen problems arise, this function adjusts and rebalances the project plan# n worst
case scenarios, it oversees the implementation of contingency and triage plans
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Lining Program Management to
!usiness "trateg#
Program management is a proven business model used by many organi"ations to achieve
their business objectives, and is designed to be used strategically by business
management# %lthough all projects and programs deliver the tactical and operational
deliverables, the real power of program management is the ability to link similarly aligned
projects into programs that are tied to the business strategy of the organi"ation#
;igure 3 illustrates the link between program management and business strategy# .uring
the strategic planning process, organi"ations create a set of strategic objectives to gain
competitive advantage and achieve business growth# Strategic objectives are the
results an organi"ation wants to achieve within a specified strategic hori"on# Programs are
then developed to create the means to achieve the objectives# ;or each program, a program
strategy is developed to define how the program will contribute to the achievement of the
strategic objective, and serves as the guiding vision to align the resulting project work# The
program strategy guides the behavior re/uired to achieve the business results#
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Strategic
Objectives
Program
Strategy
Project
Management
Program
Management
Figure 1: in!ing Program Management to Strategy
PMO in Intel $or%oration
ntel Corporation defined a strategic objective to develop and brand a line of
microprocessors specifically targeted toward the server and workstation market# % program was
established, and a program strategy was created to define and develop the new microprocessor
architecture, manufacture the microprocessor, and create a marketing campaign to launch
the microprocessor in the second /uarter of the target year# Projects were established to
develop the architecture, circuitry, software, and the data infrastructure, verify and validate
the design, integrate the elements, develop the manufacturing processes, and create the
marketing campaign# Program management was utili"ed to coordinate the activities,
interdependencies, and deliverables of the projects which resulted in the development
of the initial she represents#
"WOT Anal#sis of PMO
im%lementation in Intel
$or%oration
Strengths (internal factors) Weaknesses (internal factors)
Track record (similar successes) Gaps in knowledge and expertise
Resource availability Timescale and deadlines
Skill levels Budget and funding
Processes and systems ompeting pro!ects
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Strengths (internal factors) Weaknesses (internal factors)
Reputation Processes and systems
Opportunities (external factors) Threats (external factors)
Tec"nology and infrastructure development Political influences
"anging consumer be"aviour #nvironmental factors
#merging and developing markets ompetitor activity
$ew innovations (R%&) #conomy
'arket demand Seasonal effects
O%timi&ing the PMO
$pply Change Management Principles
Change Management is the single most important contributor to PMO success# 2ssentially,
Project Managers implement change, and therefore must be adept at Change Management# n
addition, an appeal must be made to the human psyche to secure buy*in and participation
among affected stakeholders# Securing buy*in entails increasing awareness, understanding, and
motivating affected individuals to participate in a supportive and productive manner# %n inclusive
and engaging change program builds trust and participation, decreases resistance, and promotes
change sustainability# Change Management also decreases risks, and leads to the reali"ation of
timely, high /uality, and cost*effective results#
Secure Strong %&ecutive Sponsorship
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% strong e1ecutive sponsorship is needed to ensure a program(s success# The e1ecutive
sponsor(s primary role is to provide financial backing for the program# 9ut effective e1ecutive
sponsorship re/uires more than just financial support# The sponsor must serve as the program(s
ambassador and continuously communicate progress, and the importance of the initiative to
e1ecutive leadership# %dditionally, the e1ecutive sponsor should be present and actively
participate in major program meetings to demonstrate support to stakeholders at every
level#
'e(ine the )ision
Program ?isioning is a beneficial activity that the PMO should facilitate during the early stages
of the initiative# The high level vision and goals for the program must be defined by the
sponsor and senior program leadership# Once program resources are on board, the entire team
should take part in the further definition of the vision, and development of objectives for the
portfolio of projects to be undertaken# % set of success criteria should also be defined and agreed
to by e1ecutive leadership so that the team will know when it has successfully satisfied its
objectives#
Manage "is!s
%n important factor for success is for the PMO to proactively identify potential risks and take
steps to mitigate the likelihood of their development into issues# )isk Management activities
should be factored into the project budget with additional funds set aside to address risks
that develop into issues# )isk management reporting tools provide transparency into the
program for senior management, increase ownership and accountability, and encourage
proactive problem solving#
*se Status "eporting 'ash#oards
%n e1tremely helpful program management tool that is useful to nearly all stakeholders is the
project status reporting dashboard# The purpose of the dashboard is to provide a high level
snapshot of how the work is progressing at the project level# .ashboards keep the PMO and
senior management up to date, and promote inter*project communication with other projects
within the program# They also hold project management accountable for thinking proactively
about tasks that must be accomplished in the short*term to keep the project progressing on
schedule
Standardize the $pproach+ Customize the Templates
The PMO must identify the aspects that are most critical to the program(s success and customi"e
tools and templates accordi ngl y# Some proj ect s are del i verabl e intensive and re/uire the
tracking of various documents to completion, while others contain multiple inter*related work
streams with critical paths that must be identified and managed# Once the PMO understands the
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nuances associated with the nature of the work, tools and templates can be tailored to meet
specific program or project needs#
PMO Measurement A%%roach
The main value and the main reason for the e1istence of a PMO are to cause project delivery to
accelerate throughout its sphere of influence within the enterprise and the primary business
unit it supports# n this respect, there are two key measurements for the PMO# The correct
approach is a combination of both factors
- Project @et Aoal units B f the PMO is successful, the volume of goal units should
increase from year to year# This should come from more projects being completed,
better management of resources, fewer overruns# Aoal units could be net profit, net
present value, shareholder value, or other tangible measurable units
- Project Cycle ti m e, in days B The shorter the combined cycle time of all projects,
the more projects the organi"ation can complete, the faster, the investment is returned
to the organi"ation# The current project cycle times are like an inventory of resources
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that is being invested in projects# f the same inventory of resources are being used to do
more projects, the return on investment increases#
The combination of the two factors is a ratio that is called Pro j ect ?alue .ay s # t is the total
project goal units from all projects e1pressed as a numeric value, divided by the total number of
days duration of project cycle time re/uired to generate that value#
$ith this kind of measurement proposed by the PMO advocates, the idea of implementing a
PMO should be accepted more /uickly by e1ecutives in search of meaningful ongoing
improvement in their organi"ations# t will also cause project teams to constantly look for
opportunities to accelerate projects and to avoid threats of delays#
The )O from PMO would be very important and critical for establishing and sustaining the set
up# This is also a very essential to get top management buy*in# some of the /uantifiable benefits
were discussed above# .efining and monitoring these numbers continuously will speak out the
value added by the PMO clearly to all the stakeholders# The returns can be /uantifiable primarily
by establishing the savings due to reduction in the rework and the savings due to increase in
productivity#
$hallenges to sustain the PMO
% PMO brings about a fundamental shift in how information flows and how decisions are made in
a project driven organi"ation# The PMO is supposed to help leaders align go>no go
decisions with the current strategy based on a clear picture of the current reality# %s the
strategy evolves, leaders have a handle on how to shift the focus of activities toward the new
direction# %n effective PMO fuels decision making with cross*functional transparency and up*to*
the minute accuracy from bottom up# The result is a focused, fle1ible, learning organi"ation that
delivers on its promises#
%ll too often, though, the PMO doesn(t become a clear asset# .ue to lack of organi"ational
commitment and insufficient tools, PMO team members spend the majority of their time hunting
27 | P a g e
down basic day*to*day information and trying to figure out where they fit in# They get lost in
the shuffle and confusion of the highly dynamic project organi"ation# n the worst case scenario,
the PMO becomes the choke point for information and a source of frustration for the delivery
teams#
One key reason the PMO struggles is that the core team does not truly support the PMO
initiative# The core team consists of the people who are responsible for forming and funding the
PMO# !nless the core team can fundamentally agree about the goals and objectives of the
PMO initiative, the PMO will struggle to gain power, and without power, it will struggle for
relevance#
%nother classic conflict brought about by the PMO is the fear that the PMO will inhibit the project
teams that are doing the daily work# The answer on how to balance control versus freedom in the
PMO will vary from organi"ation to organi"ation# Too much control can lead to micro*
management and too much freedom will lead to undirected chaos# 9ut what(s clear is that until
project driven organi"ations deploy some level of PMO control, reliability and successful
attainment of the company goals will elude the organi"ation#
'e# "uccess Factors
Organi"ations need to take a more strategic, holistic view of the PMO(s role in the organi"ation#
Some of the key success factors for an effective PMO are listed below
Strategy
- 6olistic approach to addressing portfolio, program, and project management
- %lignment of initiatives to the business objectives
- 9usiness results measurement of completed initiatives
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Process
- 2ffective demand management processes
- .isciplined project planning and estimation processes
- )igorous project tracking, issue, change, and risk management
- ndustry proven system development methodologies
Organi"ation
- Skilled and e1perienced program>project management resources
- Structured program governance and decision making
- Clear roles and responsibilities
- 2ffective communication and integration
Tools
- ntegration PM toolkit that support processes
- 2nterprise*level visibility into project status, issues, and risks
$onclusion
% properly planned and launched PMO will achieve the program(s overall business objectives,
and will also benefit the organi"ation(s people, process, and technology by establishing
improved e1ecutive communications, valuable progress reporting, effective tracking
mechanisms, and meaningful risk identification and mitigation
To that end, the PMO,
- 2nsures that project objectives are aligned with the business strategy
- Saves a considerable amount of senior e1ecutive time and effort by concentrating on all
aspects of program e1ecution, control, and reporting into a single organi"ation
29 | P a g e
- )eali"es great efficiencies in resource management by providing a mechanism for project
prioriti"ation and integration
- Manages enterprise risks and protects the projects( objectives with a balanced risk response
- Provides a fle1ible level of control necessary to ensure that a mission critical program
completes on time and within budget while achieving the business objectives
- %chieves significant productivity gains through efficiencies of scale, standardi"ed
processes, effective communications, and continuous improvement activities
n order for the PMO to succeed, the organi"ation must commit to its success#
Organi"ations must understand the business conte1t of running a PMO, and they must commit
resources and authority to the PMO to make it effective# More importantly, if the organi"ation
commits to the PMO, the advantages can be tremendous, stakeholders will have visibility into
meaningful, aligned with goals5 and employees grow increasingly productive#
Program management is defined as the coordinated management of interdependent projects
over a finite period of time to achieve a set of business goals# % program is strategic in
nature, has both a business and technical focus, is typically managed in a cross*functional
matri1 structure, and is led by a program manager# The program manager manages across the
functional projects, whereas the project manager manages within a single function or domain#
Program management serves as an enabler for achieving business strategies because it
provides a systematic approach to organi"e, plan, implement and complete comple1 product
development endeavors within a company# The power of the program management model is
the ability to link similarly aligned projects that are tied to the business strategy of a firm#
!ibliogra%h#
Santosus, Megan, )8hy @ou "eed a Pro$ect Management 3ffice*, aailable at
h tt p '%%www!cio!c o m %arc h i e%; 4 ;/ ;5 %o ffice! h tml
Paust, Michael, )3ptimi#ing the Program Management 3ffice*, aailable at
h tt p '%%www!e b i# ( !n et%t op ics%s ta nd a rd s%features% 1 9/ 1 !h tml
3: | P a g e
Stephens, Ted, )The ideal PM3 model is a balancing act*, aailable at
h tt p '%%articles!tec h rep ub lic!co m !c o m %:/ ;;A/ ; 64 6 B/ / A: 7 17 2 / 4 !h tm l
?endall, Cerald, )-ow to Cet Dalue 3ut of a Pro$ect Management 3ffice EPM3F*, aailable at
h tt p'% %www!pr o $ec tconnect ions!c o m% pc %know h ow% m e m bers %p a persBf il e s %- o w toCe tDa luef ro m a P M 3!pdf
-ill, Cerrad, )Goling the Pro$ect Management 3ffice*, aailable at
h tt p '%%w h ite p a pers!techre p u b lic!c o m !c o m %w h ite p a p er!asp +
asdaesfc
A FINAL PROJECT REPORT
ON
“PMO: Linking Quality and
Business strategy t t!e
C"#any$s %e&el#"ent'
In t!e #artial (ul)l"ent ( t!e %egree (
Master ( Manage"ent *tudies under t!e +ni&ersity (
Mu",ai
By
Mayures! -a&ankar .Rll N: /01
+nder t!e -uidan2e (
Pr(3 *ini"le
1 | P a g e
Certificate
This is to certify that the dissertation submitted in partial fulfillment for the award of
Masters In Management Studies of St Francis Institute of Management & Research,
is a result of the bonafide research work carried out by Mayuresh Gavankar under
my superision and guidance! "o part of this report has been submitted for award of
any other degree, diploma, fellowship or other similar titles or pri#es! The work has
also not been published in any $ournals%Maga#ines!
&ate'
Place'
Faculty guide '
Signature '
2 | P a g e
Student’s Declaration
I hereby declare that this report, submitted in partial fulfillment of the re(uirement
for the award for the Masters in Management Studies, to St! Francis Institute of
Management & Research, is my original work and not used anywhere for award of
any degree or diploma or fellowship or for similar titles or pri#es!
I further certify that without any ob$ection or condition I grant the rights to St!
Francis Institute of Management & Research, to publish any part of the pro$ect if
they deem fit in $ournals%Maga#ines and newspapers etc without my permission!
Place ' Mumbai
&ate '
Signature'
3 | P a g e
ACKN!"#DG#M#N$
First, I would like to thank the %N&'#(S&$&) * M%M+A& for giing me the opportunity to
make the pro$ect on sub$ect ),M- "inkin. /uality and +usiness strate.y to the
Co01any’s Develo10ent* and e+plore my knowledge!
I would like to thank my college St *rancis &nstitute of Mana.e0ent 2 (esearch for giing a
great opportunity to do work on this pro$ect!
I would like to thank ,rof3 Sini0ole for her aluable adice and support, in spite of her busy
schedule, she was always there to gie feedback and guidelines wheneer needed!
Thank you, Madam for mentoring and kind support for the accomplishment of the pro$ect!
-ereby, I want to take the opportunity to thank all sources, people, guides who helped me to get the
re(uired data!
I also e+press my gratitude to all those who hae not been mentioned in this report work but helped
me in completing this report!
4 | P a g e
$A+"# * CN$#N$S
Sr "o .ontents Pg "o
/! 0bstract 1
2! 3b$ecties 4
5! Introduction 6
7! 8hat is PM3 9
:! The ideal PM3 model /;
1!
&ifference between program management and pro$ect management /2
4!
8hat a PM3 does< /5
6! Phases of PM3 /:
9! Full range of PM3 functions /1
/;! =inking Program Management to >usiness Strategy /6
//! PM3 in Intel .orporation /9
/2! S83T 0nalysis of PM3 implementation in Intel .orporation 25
/5! 3ptimi#ing the PM3 27
/7! PM3 measurement approach 21
/:! .hallenges to sustain PM3 24
/1! ?ey success factors 26
5 | P a g e
/4! .onclusion 29
/6! >ibliography 5;
Abstract
The role of program management in the modern organization has grown significantly. The
effective management of project portfolios that include numerous short-term projects, large
multi-project programs or both has become a growing challenge for the industry. Many
organizations have identified a need to formalize the practice of program management and
develop centres of coordination and excellence for program management. Organizations have
therefore implemented an organizational entity, the rogram Management Office !MO" to help
to steer projects to completion, while ensuring the overall success. This research defines the
MO concept, describes its structures and functions. The research also discusses the major
processes that are essential to ma#e rogram Management Offices wor# and #ey success
factors to improve the performance of the MO. The research also discusses the measurement
approaches for getting value out of a MO and the challenges to sustain the MO.
6 | P a g e
Objectives
• To study the difference between Program management and Project Management
• Study the functions, phases and structure of PMO
• To study how PMO links business strategy
• Considering the above objectives, study PMO in ntel Corporation
• !nderstand optimi"ation of PMO
• dentify measurement approach in PMO
• dentify challenges to sustain PMO
7 | P a g e
Introduction
Many organi"ations have struggled to deliver projects on time and within budget# The success of
projects, primarily in the areas of scope, cost, and duration, becomes the focus of assessment of
the effectiveness of the project manager implementing the project, and the efficacy of the
organi"ation in supporting the project manager in pursuit of overall organi"ational objectives#
$hen dealing with such ventures, success can be achieved only through centrali"ed
management and careful coordination of all involved projects, with a specific focus on
communication and risk management# % model for establishing an organi"ation that is
responsible for managing projects has emerged# This organi"ation is known as the Project
Management Office &PMO'
Organi"ations today have recogni"ed the need for a PMO to achieve Program
management oversight, control, and support# The PMO(s role is to help both the project manager
and the organi"ation to not only understand and apply modern Program management practices,
but also to adapt and integrate business interests into the organi"ation(s Program management
efforts#
The PMO is not merely staff to provide support for project activities such as schedule
development, monitoring tasks, and for the use of Program management software# )ather, it is
an essential component for future organi"ational success# The PMO is the organi"ational entity
with full time personnel to provide a focal point for Program management# t provides services
and organi"ational focus in core and supporting areas of Program management by training,
consulting, and mentoring the project*related personnel, by augmenting project teams, and by
serving as a clearing house for best practices#
8 | P a g e
What is a PMO?
% Project Management Office is an organi"ation entity that is structured to apply project
management practices to the needs of a particular program# PMOs can help by providing the
structure needed to standardi"e project management practices and facilitate T project portfolio
management, as well as determine methodologies for repeatable processes# The top + reasons
for establishing a PMO are for improving project success rates and implementing standard
practice
The PMO successfully addresses many of the typical challenges inherent in managing
a series of interdependent projects,
- Project schedules not adhered to and implementation dates rarely met
- Senior management not having comprehensive insight into projects( progress and
performance
- Projects( customers not sufficiently involved in product planning, design, and acceptance
- .isparate and inconsistent communication patterns
- nade/uate control and understanding of actual costs
- 0ack of repeatable processes guided by best practices
- !nanticipated risk events and inade/uate or missing contingency plans
- !ne1plained changes in project scope, schedule or budget
- !nacceptable /uality of products and processes
- !nproductive or non*e1istent peer reviews
% PMO establishes an environment that prevents many of the aforementioned issues from
occurring# t also conducts monitoring and controlling activities that correct problem situations
by,
- mplementing consistent project management and product development methodologies
- 2stablishing governance processes and structure for managing changes to the program
- Conducting planning and control activities, including alignment with other strategic
initiatives, integration with the governance process, and integration with resource planning
9 | P a g e
- Coordinating delivery of project information through consistent and standardi"ed data
gathering, analysis, and reporting
- Providing continuity and reinforcing commitment among business customers, project
teams, and support organi"ations
- nitiating audit review procedures that identify problem areas and provide processes to
closely monitor risks and issues
- ncreasing project success rates by obtaining e1ecutive buy*in and gaining enterprise*wide
support for program needs and objectives
The ideal PMO model
$T organizations tend to choose between the extremes of two MO models% one empahizing a
support role and one emphazing a supervisory role. $n fact, the two functions are not mutually
exclusive, and the ideal model combines the best of both
3# The Support model: The PMO in a consulting role
%ccording to this model, the PMO functions primarily in a support role instilling project
management skills into the organi"ation# PMO staff are cast in a mentor relationship vis a
vis e1isting project managers &PMs'# They might train PMs in the organi"ation in a
common methodology or process# %nother role for the PMO is to provide the tools,
templates 4 training PMs need to do their work# The PMO might develop software tools
for specific tasks, as well as standard documents such as project charter or project plan
that is uniform across the organi"ation# n addition, the PMO staff can be a backup
source for groups in need of help with project management, particularly in cases where
there is trouble in the PM ranks#
The PMO as a support group really plays a distributive role within the organi"ation and
has little or no control over which projects are funded, and no authority to ensure
projects align with business needs# PMO staff typically cannot compel project managers
to accept their guidance# They cannot force user groups to adopt a common
methodology5 they can only encourage them to do so#
+# The Centralized model: the PMO in a supervisory role
PMO staff are given a supervisory role, with budgetary authority to determine which
projects get funded and which do not# Project managers, instead of being attached to
operational divisions, may be directly on the staff of the PMO and lent out to working
groups on a project specific basis# The PMO may even control who gets assigned to
which projects# This centrali"ed PMO compensates for some of the problems inherent in
a strictly supportive role# The PMO can impose greater discipline on the choice of the
1: | P a g e
projects and how they are carried out# !se of standard methodologies, processes,
templates, and tools can be enforced# The PMO can decide when to terminate a project
that isn(t delivering# n short, the PMO plays a strong role in project governance#
Such a strong role enables the PMO to ensure that projects are tied to business goals#
6owever the centrali"ed model only works within a highly structured environment, and
so superimpose it upon a decentrali"ed organi"ation is to invite trouble# Taking away
managers( authority and imposing decisions from above will produce culture clash and
provoke resistance#
7# The Facilitating model: The PMO in a consulting role
The best model is one in which the PMO takes a facilitating role, working to bring
business planners and T together for joint decisions governing project investments# The
PMO might also become a change agent, identifying opportunities for change within the
organi"ation, determining the best approaches, and introducing the changes to the
community# The PMO can communicate new ways of thinking, introduce new tools and
processes, refine evaluative metrics, and work to constantly establish a new baseline of
performance#
The PMO should also play a crucial role in knowledge management &8M', effectively
becoming the organi"ations( memory by keeping records of projects, i#e#, what works
and what doesn(t, the steps through which certain processes must pass, and so on# Too
often, different parts of the organi"ation are unaware of what has been done by others,
and new staff have no knowledge of what has gone before# 2ffective 8M enables that
valuable lessons are retained and passed on to others#
11 | P a g e
Program Management versus
Project Management
Program and project management are related but distinct disciplines# t is important for everyone
within the organi"ation to fully understand the distinctions between the two, as well as the
differing roles and responsibilities of program and project managers# n general, the greatest
difference between program and project management is that program management focuses on
achieving business results to create a competitive advantage while project management focuses
on planning and e1ecuting the work re/uired to deliver the end product#n the program
management model, the program manager manages across the multiple functional projects,
while the project manager manages within a single functional project#
Other distinctions between program and project management a r e
Program Management Project Management
Strategically focused Tactically focused
9usiness and technical in nature Technical in nature
%ligned to strategic objectives of business %ligned to goals of the program
%ssures the work effort remains feasible
from a business standpoint
%ssures the work effort generates desired
deliverables on time, within budget and at
re/uired performance levels
Change managed from both a business
and
technical perspective
Change managed from a technical
perspective
)isk spread across the projects and
concerned with probability of business and
technical success
)isk contained within a single project and
concerned with probability of technical
success
Cross*functional at all times May be partially cross*functional
9road range of management and business
skills and e1perience re/uired
Project management and technical skills
re/uired
Program Management vs. Project Management
12 | P a g e
What a PMO does?
.uring the life cycle of a project, a PMO can instill project management discipline and align it
with a company:s overall strategic goals
&enerate 'oncept
• Prioriti"e project in terms of an organi"ation:s overall governance, project portfolio
processes
• %ssist project leaders with business case development
• 2nsure the project links to a company:s strategic goals
lan (esources
• %dd project to the project management or portfolio system
• %ssign staff and resources to the project
• 0ay out governance standards, including repeatable project processes, training and
metrics
)aunch roject
• Provide coaching and mentoring to project managers
• 9egin to facilitate ongoing project planning sessions
• 2nsure proper tracking of project data and milestones
13 | P a g e
rovide Ongoing roject Management
• 2nsure regular project status reports are available to decision*makers
• Coordinate communications across business units
• Conduct regular /uality assurance reviews
'omplete roject
• 0ead post*implementation reviews
• Capture and record lessons learned
• 2nsure that project data and project team evaluations are recorded and distributed to
decision makers
14 | P a g e
Phases of PMO
*. $nitiation
The initiation phase of a project involves an overall description of the task and what it entails# The
project manager needs to first document the purpose of the project, including its objectives for
approval by the relevant body in the business or the stakeholders# ;or the start*up of the project,
the project manager needs to discuss with his superiors the prospective estimates on the budget,
the time period for the project, the re/uired staff and the resources#
+. lanning
The planning stage in a project*management model involves in*depth research to e1pound on the
available information on the project, such as the necessary e/uipment and resources for the
project, including the finances and where to obtain them# t is important for the project manager to
have a team in place to assist her in brainstorming the project and come up with new ideas to
improve on the task or point out unnecessary risks or activities# She then assigns the individual
duties for the project task force#
,. -xecution and 'oordination
The e1ecution phase involves the project manager orchestrating the activities of the actual project
by following the provisions reached at the planning phase# The project manager is in charge of
supervising the workforce, providing employees with the necessary resources and informing them
of the performance of the project during its e1ecution# .uring the course of the project, he reviews
the performance of the project at the current position as per the original plan and may need to
make adjustments in the initial planning for issues such as budget, insufficient resources or
unforeseen risks# The project manager needs to inform the relevant stakeholders and her team on
the necessary adjustments and their effect on the project#
.. /inalization
15 | P a g e
This project is finali"ed after completion of all the activities of the project# The project manager
then calls a meeting with his team to review the performance of the project, including the
successes and the failures, and their implications on the final result# 6e should make a final report
for all the relevant stakeholders including his observations concerning the project and any
necessary recommendations for future purposes#
Full Range of PMO Functions
43 C""uni2atins Manage"ent
This function communicates program status, progress, and performance at multiple levels# t also
prepares briefing documents and program dashboards for senior management and other high*
level stakeholders, generates an information base that allows drill down capabilities, and
facilitates communications among project teams involved in the program# n addition, this
function builds general awareness about the projects and their impact on the business
/3 Finan2ial Manage"ent
This function maintains and reports financial performance through objective metrics, ensuring
no cost overruns for the program# t tracks variances against the program budget, ensures that
e1penditure targets
are met, and verifies performance against business objectives# This function collects metrics at
the project level and rolls them up to the program level# ;inally, this function is responsible for
forecasting future
budget re/uirements
53 Resur2e Manage"ent
Procuring, training, onboarding, and managing project staff is a major responsibility of a
PMO# Consolidating resource management at the program level enables program e1ecutives to
optimally deploy staff resources across all projects# The PMO is responsible for overall
capacity planning, including the comple1 logistics of ensuring that the right people are
available at the right time and place# This may include negotiating and managing relationships
with third*party vendors and subcontractors and deploying internal and e1ternal resources# This
16 | P a g e
function is also responsible for properly training program staff in program processes, tools, and
applied methodologies#
63 Te2!nlgy Manage"ent
This function implements and maintains the physical, technical, and process infrastructures
used by the program# )esponsibilities include implementing consistent methodologies and
tools, managing facilities and e/uipment, performing capacity planning for the resources
re/uired by the program, managing licensing and other technology agreements, performing
disaster recovery planning, and procuring the necessary e/uipment#
73 Risk Manage"ent
This risk management function is responsible for evaluating the project plans, identifying
program risks, and developing risk management strategies# t works with business areas to
anticipate and understand the changing business environment and associated risks, modifying
project plans and risk response strategies as needed#
03 Quality Manage"ent
This function ensures that the projects within the program meet /uality objectives# These
objectives include adherence to program procedures and standards, as well as the
completeness and /uality of project deliverables# t audits project practices and captures project
/uality and performance metrics#
83 Prgra" Integratin
This core function oversees the integration of the projects that make up the program and
provide a comprehensive approach to issue, change, and acceptance management# This
function has a handle on all the project interconnections and dependencies# t monitors project
progress closely and addresses individual project delays before they affect other projects in the
program# $hen problems arise, this function adjusts and rebalances the project plan# n worst
case scenarios, it oversees the implementation of contingency and triage plans
17 | P a g e
Lining Program Management to
!usiness "trateg#
Program management is a proven business model used by many organi"ations to achieve
their business objectives, and is designed to be used strategically by business
management# %lthough all projects and programs deliver the tactical and operational
deliverables, the real power of program management is the ability to link similarly aligned
projects into programs that are tied to the business strategy of the organi"ation#
;igure 3 illustrates the link between program management and business strategy# .uring
the strategic planning process, organi"ations create a set of strategic objectives to gain
competitive advantage and achieve business growth# Strategic objectives are the
results an organi"ation wants to achieve within a specified strategic hori"on# Programs are
then developed to create the means to achieve the objectives# ;or each program, a program
strategy is developed to define how the program will contribute to the achievement of the
strategic objective, and serves as the guiding vision to align the resulting project work# The
program strategy guides the behavior re/uired to achieve the business results#
18 | P a g e
Strategic
Objectives
Program
Strategy
Project
Management
Program
Management
Figure 1: in!ing Program Management to Strategy
PMO in Intel $or%oration
ntel Corporation defined a strategic objective to develop and brand a line of
microprocessors specifically targeted toward the server and workstation market# % program was
established, and a program strategy was created to define and develop the new microprocessor
architecture, manufacture the microprocessor, and create a marketing campaign to launch
the microprocessor in the second /uarter of the target year# Projects were established to
develop the architecture, circuitry, software, and the data infrastructure, verify and validate
the design, integrate the elements, develop the manufacturing processes, and create the
marketing campaign# Program management was utili"ed to coordinate the activities,
interdependencies, and deliverables of the projects which resulted in the development
of the initial she represents#
"WOT Anal#sis of PMO
im%lementation in Intel
$or%oration
Strengths (internal factors) Weaknesses (internal factors)
Track record (similar successes) Gaps in knowledge and expertise
Resource availability Timescale and deadlines
Skill levels Budget and funding
Processes and systems ompeting pro!ects
23 | P a g e
Strengths (internal factors) Weaknesses (internal factors)
Reputation Processes and systems
Opportunities (external factors) Threats (external factors)
Tec"nology and infrastructure development Political influences
"anging consumer be"aviour #nvironmental factors
#merging and developing markets ompetitor activity
$ew innovations (R%&) #conomy
'arket demand Seasonal effects
O%timi&ing the PMO
$pply Change Management Principles
Change Management is the single most important contributor to PMO success# 2ssentially,
Project Managers implement change, and therefore must be adept at Change Management# n
addition, an appeal must be made to the human psyche to secure buy*in and participation
among affected stakeholders# Securing buy*in entails increasing awareness, understanding, and
motivating affected individuals to participate in a supportive and productive manner# %n inclusive
and engaging change program builds trust and participation, decreases resistance, and promotes
change sustainability# Change Management also decreases risks, and leads to the reali"ation of
timely, high /uality, and cost*effective results#
Secure Strong %&ecutive Sponsorship
24 | P a g e
% strong e1ecutive sponsorship is needed to ensure a program(s success# The e1ecutive
sponsor(s primary role is to provide financial backing for the program# 9ut effective e1ecutive
sponsorship re/uires more than just financial support# The sponsor must serve as the program(s
ambassador and continuously communicate progress, and the importance of the initiative to
e1ecutive leadership# %dditionally, the e1ecutive sponsor should be present and actively
participate in major program meetings to demonstrate support to stakeholders at every
level#
'e(ine the )ision
Program ?isioning is a beneficial activity that the PMO should facilitate during the early stages
of the initiative# The high level vision and goals for the program must be defined by the
sponsor and senior program leadership# Once program resources are on board, the entire team
should take part in the further definition of the vision, and development of objectives for the
portfolio of projects to be undertaken# % set of success criteria should also be defined and agreed
to by e1ecutive leadership so that the team will know when it has successfully satisfied its
objectives#
Manage "is!s
%n important factor for success is for the PMO to proactively identify potential risks and take
steps to mitigate the likelihood of their development into issues# )isk Management activities
should be factored into the project budget with additional funds set aside to address risks
that develop into issues# )isk management reporting tools provide transparency into the
program for senior management, increase ownership and accountability, and encourage
proactive problem solving#
*se Status "eporting 'ash#oards
%n e1tremely helpful program management tool that is useful to nearly all stakeholders is the
project status reporting dashboard# The purpose of the dashboard is to provide a high level
snapshot of how the work is progressing at the project level# .ashboards keep the PMO and
senior management up to date, and promote inter*project communication with other projects
within the program# They also hold project management accountable for thinking proactively
about tasks that must be accomplished in the short*term to keep the project progressing on
schedule
Standardize the $pproach+ Customize the Templates
The PMO must identify the aspects that are most critical to the program(s success and customi"e
tools and templates accordi ngl y# Some proj ect s are del i verabl e intensive and re/uire the
tracking of various documents to completion, while others contain multiple inter*related work
streams with critical paths that must be identified and managed# Once the PMO understands the
25 | P a g e
nuances associated with the nature of the work, tools and templates can be tailored to meet
specific program or project needs#
PMO Measurement A%%roach
The main value and the main reason for the e1istence of a PMO are to cause project delivery to
accelerate throughout its sphere of influence within the enterprise and the primary business
unit it supports# n this respect, there are two key measurements for the PMO# The correct
approach is a combination of both factors
- Project @et Aoal units B f the PMO is successful, the volume of goal units should
increase from year to year# This should come from more projects being completed,
better management of resources, fewer overruns# Aoal units could be net profit, net
present value, shareholder value, or other tangible measurable units
- Project Cycle ti m e, in days B The shorter the combined cycle time of all projects,
the more projects the organi"ation can complete, the faster, the investment is returned
to the organi"ation# The current project cycle times are like an inventory of resources
26 | P a g e
that is being invested in projects# f the same inventory of resources are being used to do
more projects, the return on investment increases#
The combination of the two factors is a ratio that is called Pro j ect ?alue .ay s # t is the total
project goal units from all projects e1pressed as a numeric value, divided by the total number of
days duration of project cycle time re/uired to generate that value#
$ith this kind of measurement proposed by the PMO advocates, the idea of implementing a
PMO should be accepted more /uickly by e1ecutives in search of meaningful ongoing
improvement in their organi"ations# t will also cause project teams to constantly look for
opportunities to accelerate projects and to avoid threats of delays#
The )O from PMO would be very important and critical for establishing and sustaining the set
up# This is also a very essential to get top management buy*in# some of the /uantifiable benefits
were discussed above# .efining and monitoring these numbers continuously will speak out the
value added by the PMO clearly to all the stakeholders# The returns can be /uantifiable primarily
by establishing the savings due to reduction in the rework and the savings due to increase in
productivity#
$hallenges to sustain the PMO
% PMO brings about a fundamental shift in how information flows and how decisions are made in
a project driven organi"ation# The PMO is supposed to help leaders align go>no go
decisions with the current strategy based on a clear picture of the current reality# %s the
strategy evolves, leaders have a handle on how to shift the focus of activities toward the new
direction# %n effective PMO fuels decision making with cross*functional transparency and up*to*
the minute accuracy from bottom up# The result is a focused, fle1ible, learning organi"ation that
delivers on its promises#
%ll too often, though, the PMO doesn(t become a clear asset# .ue to lack of organi"ational
commitment and insufficient tools, PMO team members spend the majority of their time hunting
27 | P a g e
down basic day*to*day information and trying to figure out where they fit in# They get lost in
the shuffle and confusion of the highly dynamic project organi"ation# n the worst case scenario,
the PMO becomes the choke point for information and a source of frustration for the delivery
teams#
One key reason the PMO struggles is that the core team does not truly support the PMO
initiative# The core team consists of the people who are responsible for forming and funding the
PMO# !nless the core team can fundamentally agree about the goals and objectives of the
PMO initiative, the PMO will struggle to gain power, and without power, it will struggle for
relevance#
%nother classic conflict brought about by the PMO is the fear that the PMO will inhibit the project
teams that are doing the daily work# The answer on how to balance control versus freedom in the
PMO will vary from organi"ation to organi"ation# Too much control can lead to micro*
management and too much freedom will lead to undirected chaos# 9ut what(s clear is that until
project driven organi"ations deploy some level of PMO control, reliability and successful
attainment of the company goals will elude the organi"ation#
'e# "uccess Factors
Organi"ations need to take a more strategic, holistic view of the PMO(s role in the organi"ation#
Some of the key success factors for an effective PMO are listed below
Strategy
- 6olistic approach to addressing portfolio, program, and project management
- %lignment of initiatives to the business objectives
- 9usiness results measurement of completed initiatives
28 | P a g e
Process
- 2ffective demand management processes
- .isciplined project planning and estimation processes
- )igorous project tracking, issue, change, and risk management
- ndustry proven system development methodologies
Organi"ation
- Skilled and e1perienced program>project management resources
- Structured program governance and decision making
- Clear roles and responsibilities
- 2ffective communication and integration
Tools
- ntegration PM toolkit that support processes
- 2nterprise*level visibility into project status, issues, and risks
$onclusion
% properly planned and launched PMO will achieve the program(s overall business objectives,
and will also benefit the organi"ation(s people, process, and technology by establishing
improved e1ecutive communications, valuable progress reporting, effective tracking
mechanisms, and meaningful risk identification and mitigation
To that end, the PMO,
- 2nsures that project objectives are aligned with the business strategy
- Saves a considerable amount of senior e1ecutive time and effort by concentrating on all
aspects of program e1ecution, control, and reporting into a single organi"ation
29 | P a g e
- )eali"es great efficiencies in resource management by providing a mechanism for project
prioriti"ation and integration
- Manages enterprise risks and protects the projects( objectives with a balanced risk response
- Provides a fle1ible level of control necessary to ensure that a mission critical program
completes on time and within budget while achieving the business objectives
- %chieves significant productivity gains through efficiencies of scale, standardi"ed
processes, effective communications, and continuous improvement activities
n order for the PMO to succeed, the organi"ation must commit to its success#
Organi"ations must understand the business conte1t of running a PMO, and they must commit
resources and authority to the PMO to make it effective# More importantly, if the organi"ation
commits to the PMO, the advantages can be tremendous, stakeholders will have visibility into
meaningful, aligned with goals5 and employees grow increasingly productive#
Program management is defined as the coordinated management of interdependent projects
over a finite period of time to achieve a set of business goals# % program is strategic in
nature, has both a business and technical focus, is typically managed in a cross*functional
matri1 structure, and is led by a program manager# The program manager manages across the
functional projects, whereas the project manager manages within a single function or domain#
Program management serves as an enabler for achieving business strategies because it
provides a systematic approach to organi"e, plan, implement and complete comple1 product
development endeavors within a company# The power of the program management model is
the ability to link similarly aligned projects that are tied to the business strategy of a firm#
!ibliogra%h#
Santosus, Megan, )8hy @ou "eed a Pro$ect Management 3ffice*, aailable at
h tt p '%%www!cio!c o m %arc h i e%; 4 ;/ ;5 %o ffice! h tml
Paust, Michael, )3ptimi#ing the Program Management 3ffice*, aailable at
h tt p '%%www!e b i# ( !n et%t op ics%s ta nd a rd s%features% 1 9/ 1 !h tml
3: | P a g e
Stephens, Ted, )The ideal PM3 model is a balancing act*, aailable at
h tt p '%%articles!tec h rep ub lic!co m !c o m %:/ ;;A/ ; 64 6 B/ / A: 7 17 2 / 4 !h tm l
?endall, Cerald, )-ow to Cet Dalue 3ut of a Pro$ect Management 3ffice EPM3F*, aailable at
h tt p'% %www!pr o $ec tconnect ions!c o m% pc %know h ow% m e m bers %p a persBf il e s %- o w toCe tDa luef ro m a P M 3!pdf
-ill, Cerrad, )Goling the Pro$ect Management 3ffice*, aailable at
h tt p '%%w h ite p a pers!techre p u b lic!c o m !c o m %w h ite p a p er!asp +