Seven secrets of successful PMOs

Seven Secrets of
Successful PMOs
Brad Robbins – Solution Q Inc.
brobbins@solutionq.com

Agenda
• Different types of PMOs
• Why is the PMO approach so popular
• Services provided by a PMO
• Common causes for PMO failure
• Seven secrets of successful PMOs
• The rise of the virtual PMO
• How Eclipse supports a PMO

Different types of PMOs
• A PMO is…
• An organization entity responsible for oversight over a
portfolio of projects
• Variants on a theme
• Portfolio Management Office: Common in organizations
that have adopted PPM practices
• Project Management Office: Common in organizations
that have not yet begun to follow PPM practices – the
portfolio is at best, loosely formed
• Program Management Office: Common in organizations
that are interested in oversight for an interrelated set of
projects with a shared goal
• Generally the label “Project Management Office” is not a
good indicator of what the entity is or does

Why has the PMO approach been
so popular
• To improve project success rates
• To streamline & focus communications
• To improve consistency of project planning
& execution
• To support enterprise resource capacity
planning and project portfolio management
• To support a career path for PM-oriented
staff

Why is the PMO approach so
popular (less visible reasons)
• To centralize accountability (with little or no
authority)
• To create an organization entity that can be
blamed when things go wrong on projects
• To create a “watchdog” to keep an eye on
project sponsors & teams
• To provide a convenient place to dump
project managers without establishing a
clear professional growth path for them

Services provided by a PMO
• Centralized visibility into project status
• Staff resources to manage projects
• Ongoing support & control for project and
project portfolio management
methodologies
• Provide project management consulting
services to project teams
• Perform delivery assurance checks on
active projects
• Provide decision-support data for project
activities & resource utilization

PMO failure rates
• The PMO approach is a popular method of
tackling a variety of project planning &
delivery issues, however…
• A study of 750 organizations worldwide
conducted in 2004-05 * indicated that over
75% of organizations that set up a PMO
shut it down within three years because it
did not demonstrate any added value
• PMI did similar research which indicated
that only 17% of PMOs had been in
existence for more than five years
* Business Improvement Architects

Common causes for PMO failure
• Lack or loss of executive sponsorship
• Organization culture not supportive of PM
• Lack of effective change management during implementation
• Lack of involvement of key stakeholders
• Lack of clear mandate or scope
• Inadequate or ineffective staffing
• Unable to provide tangible evidence that the PMO improves
project success rates
• Increases bureaucracy or administrative overhead without
increasing value
• Creates power struggles within organization
• “Boiling the ocean”

Seven secrets of successful PMOs
1. An actively involved sponsor at the right level of
authority in the organization effectively supports
the PMO
• If the PMO supports a single department, the C-level
executive for that department should be the sponsor
• If the PMO supports the organization, the PMO should
ideally report to the COO or CEO
2. The PMO fits the organization’s culture and
structure
• Don’t have a “command-and-control” PMO when the
organization culture is consensus or collaboration driven

Seven secrets of successful PMOs
(contd.)
3. The PMO effectively communicates the business
value it has delivered
• The PMO should be created as the approved outcome of
a business case
• The PMO should log, quantify and communicate all
achievements and acknowledge costs & failures
• The competency of the personnel is a key issue in PMO
performance (PMI survey)
4. The scope, services and formal authority for the
PMO are documented & communicated
• This information should be developed as a key
deliverable of the PMO initiation project and should be
approved by the PMO’s sponsor

Seven secrets of successful PMOs
(contd.)
5. Changes are rolled out incrementally using proper
organization change management practices
• Work with HR to define the appropriate communication
messages & training for process and procedure changes
6. The PMO implementation is managed as a project
• Assign a PM, develop a charter, involve stakeholders, manage
risks, develop and track to a budget & schedule, etc.
7. The PMO is supported by technology that reduces
administration effort & increases the likelihood of process
compliance
• Technology without process will automate chaos, but process
without effective supporting technology creates administrative
overhead
• Most PMOs have a very small staff as these staff are often
regarded as overhead (PMI survey)

The rise of the virtual PMO
• Problem: Establishing a new organization
entity might be “too much change” for
some companies
• A popular solution: Virtual PMO
• Delivery of PM services is distributed across
different organizational units or staff
• Needs an actively involved sponsor at the right
level of authority
• Requires technology to facilitate consistency,
compliance & communications

How Eclipse supports a PMO:
Overall project status

How Eclipse supports a PMO:
Schedule status

How Eclipse supports a PMO:
Resource capacity planning

How Eclipse supports a PMO:
Consistency & Reuse

Questions
brobbins@solutionq.com