Pmo charter benefits

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  • 1. Creating a PMO CharterDr. Gary J. Evans, PMPCVR/IT Consulting LLCwww.cvr-it.com

2. Presented by CVR/IT Consulting LLC 2Why we are here today Through 2004, IT organizations that establishenterprise standards for project management,including a project office with suitablegovernance, will experience half the major projectcost overruns, delays, and cancellations of thosethat fail to do so. Gartner Research The Project Office: Teams, Processes, and Tools August 2000 3. 3Agenda What is a PMO? What is a PMO Charter? How is it useful? What is in it? How do I go about writing one? The Charter Template - Instructions The Charter Template - ExamplePresented by CVR/IT Consulting LLC 4. 4What is a PMO? The Project Management Office (PMO) is amechanism used to address common projectmanagement issues in an organization inorder to support and facilitate projectsuccess. This and following slides draw from material published by MarkE. Mullally (see Appendix)Presented by CVR/IT Consulting LLC 5. 5What is a PMO? A PMO is generally implemented as acentralized, coordinating bodyPresented by CVR/IT Consulting LLC 6. 6What is a PMO? A PMO can be setup for: Large, complex projects or a program ofprojects A department or business unit portfolio ofprojects An enterprise wide approach to selection andmanagement of projectsPresented by CVR/IT Consulting LLC 7. 7What is a PMO? The PMO may integrate any combination ofthe following: project knowledge project processes and procedures training and certification for project staff reusable standard templates project skills and resources project portfolio management project financial managementPresented by CVR/IT Consulting LLC 8. 8What does a PMO do? Depending on its charter, a PMO mayperform any of a number of functions. Integrate project management within theenterprise Provide Project Management tools, mentoringand training Oversee the entire project cycle, from projectapproval to project closurePresented by CVR/IT Consulting LLC 9. 9What does a PMO do? There are many reasons to establish a PMO: Create effective project oversight and control Minimize project thrash and promote greater projectsuccess Keep management better informed Improve integration of projects with the business Build project management expertise in the staff Help define and then achieve business objectivesPresented by CVR/IT Consulting LLC 10. 10Establishing a PMO Organizational politics aside, the greatestchallenge that most organizations face is todefine what the PMOs purpose should be,and why it is being created.Presented by CVR/IT Consulting LLC 11. 11Establishing a PMO The PMO requires a clear mission That mission must be based upon the needsof its customers From an understanding of customers cancome a definition of requirements Only at that point can the PMO trulycharacterize and implement its servicesPresented by CVR/IT Consulting LLC 12. 12Establishing a PMO There is no universal definition of a PMO It must be defined individually for eachorganization that creates one It is the role of the PMO Charter to providethat definitionPresented by CVR/IT Consulting LLC 13. 13Treat Establishing a PMO like a project Every project requires clearly defined goals,a mandate from management to proceed anda plan by which to execute itPresented by CVR/IT Consulting LLC 14. 14The high level goals of a PMOare its Mission The Mission is included in the PMOCharter, which is its mandate There should also be a Project Plan thatguides implementation of the PMOPresented by CVR/IT Consulting LLC 15. 15The PMO Charter is NOT theproject plan! The PMO Charter is, in effect, theorganizational mandate for the PMO toexistPresented by CVR/IT Consulting LLC 16. 16The PMO Charter defines itspurpose and functions It defines: Who the PMO sponsors are Who the customers are The services that it offers The staffing and support structures required todeliver those services.Presented by CVR/IT Consulting LLC 17. 17Establishing a PMO In fact, we need the following informationbefore we can begin development of thePMO Charter: PMO Mission (as voiced by management) Customers & Stakeholders Service Offerings PMO Structure PMO Success ProfilePresented by CVR/IT Consulting LLC 18. 18The Charter To recap, the PMO Charter establishes thepurpose for the PMOs existence, itsprimary functions, its Sponsors andCustomers, and its structure. This is a lot of information! It is best NOT constructed in a vacuumPresented by CVR/IT Consulting LLC 19. 19The Charter A PMO is expensive to create and put intooperation Usually there is some specific reason forthis investment There may be a problem with management ofprojects that the PMO is supposed to correct The PMO may be seen as a means of reducingthe risk in a major undertakingPresented by CVR/IT Consulting LLC 20. 20The Charter You must be fully aware of the reasons forinitiating a PMO before you begin itsdevelopment If this information is not readily available,initiate discussions with those managementfigures who can tell youPresented by CVR/IT Consulting LLC 21. 21The Charter Once you understand why the organizationis moving to create a PMO, it is much easierto define its role and primary functions The following slides explain how to obtainthe information needed for the PMOCharterPresented by CVR/IT Consulting LLC 22. 22The Charter - Mission Statement Identify the PMOs primary stakeholders Meet with them and learn their expectationsof the PMO Define the measures of success that thePMO will be judged by Develop and gain acceptance of a PMOMission StatementPresented by CVR/IT Consulting LLC 23. 23The Charter - Strategy Building on the Mission Statement, gainagreement on some High Level Objectivesthat will guide the work of the PMO These Objectives should be few in numberand directly support the Mission It is at this level that the nature of the PMOis defined (e.g. Agent of Change vsReporting Agency)Presented by CVR/IT Consulting LLC 24. 24The Charter - Functions Next, define the functions of the PMO It is while discussing the work of the PMOwith your customers that they will begin toget a true appreciation of what it will meanto have an established PMOPresented by CVR/IT Consulting LLC 25. 25The Charter - Critical SuccessFactors Identify those steps that your organizationcan take to ensure that the PMO issuccessful Also note the milestones that yourorganization should plan on reaching as thePMO is implemented and begins its workPresented by CVR/IT Consulting LLC 26. 26The Charter - Metrics The PMO is a major investment.Management has the right to know that theinvestment is paying off Identify those areas of greatest concern toyour organization and establish means ofmeasuring the impact of the PMO in thoseareasPresented by CVR/IT Consulting LLC 27. 27The Charter - Staffing andStructure Once you understand the work that thePMO is expected to do, you are in aposition to define the staff structure that willmake it all happen Be clear not only on the number of bodies,but also respective roles and reportingarrangements Provide Position Descriptions in theAppendixPresented by CVR/IT Consulting LLC 28. 28The Charter - Budget How much will it cost to establish thePMO? Provide at least a rough etimate of what thecosts will be in the first year (or otherperiod of time as management dictates) If you write a formal ROI, this informationwill be invaluablePresented by CVR/IT Consulting LLC 29. 29Charter - The tools Templates exist that can help you gatherand sort out all of this information You can find two of them here: www.cvr-it.com/PM_TemplatesPresented by CVR/IT Consulting LLC 30. 30Charter - The tools The first template is a step by stepinstruction guide on what information togather and in what sequence The second template is an actual example ofa PMO Charter, written in generic format sothat you can easily adapt it to your purposesPresented by CVR/IT Consulting LLC 31. 31Contact Dr. Gary J. Evans, PMP CVR/IT Consulting LLC www.cvr-it.comPresented by CVR/IT Consulting LLC 32. 32Appendix (1) The following articles are especially wortha read if you are considering establishing aPMO Defining and Ensuring a Mandate for the PMO,Mark E. Mullally www.gantthead.com/article/1,1380,130631,00.htmlPresented by CVR/IT Consulting LLC 33. 33Appendix (2) Developing a Charter for the PMO, Mark E.Mullally http://www.gantthead.com/article/1,1380,136027,00.html Defining the PMO Continuum: Walking theRazors Edge, Mark E. Mullally http://www.gantthead.com/article/1,1380,102869,00.htmlPresented by CVR/IT Consulting LLC 34. 34Appendix (3) The Four Archetypes of the PMO, Mark E.Mullally http://www.gantthead.com/article/1,1380,147616,00.html Facing the Challenge of Defining PMOSuccess, Mark E. Mullally http://www.gantthead.com/article/1,1380,157978,00.htmlPresented by CVR/IT Consulting LLC 35. 35Appendix (4) PMO Success Measures; a Proposed Model,Mark E. Mullally http://www.gantthead.com/article/1,1380,165076,00.html Defining the PMO; the Quest for Identity, MarkE. Mullally http://www.gantthead.com/article/1,1380,107962,00.htmlPresented by CVR/IT Consulting LLC